United States
                       Securities and Exchange Commission
                             Washington, D.C. 20549

                                   Form 10-QSB

(Mark One)
[X]   QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
      ACT OF 1934

              For the quarterly period ended September 30, 2004


[ ]   TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT


             For the transition period from _________to _________

                         Commission file number 0-14187


                 CONSOLIDATED CAPITAL INSTITUTIONAL PROPERTIES/3
        (Exact name of small business issuer as specified in its charter)



              California                                        94-2940208
    (State or other jurisdiction of                          (I.R.S. Employer
     incorporation or organization)                         Identification
No.)

                          55 Beattie Place, PO Box 1089
                        Greenville, South Carolina 29602
                    (Address of principal executive offices)

                                 (864) 239-1000
                         (Registrant's telephone number)


Check  whether the issuer (i) filed all reports  required to be filed by Section
13 or 15(d) of the  Exchange  Act during the past 12 months (or for such shorter
period that the  registrant  was required to file such reports) and (2) has been
subject to such filing requirements for the past 90 days.
Yes  X   No ___

                         PART I - FINANCIAL INFORMATION


Item 1.     Financial Statements



               CONSOLIDATED CAPITAL INSTITUTIONAL PROPERTIES/3

                                  BALANCE SHEET
                                   (Unaudited)
                        (in thousands, except unit data)

                               September 30, 2004
<TABLE>
<CAPTION>


Assets
<S>                                                                        <C>
   Cash and cash equivalents                                               $ 410
   Receivables and deposits                                                   540
   Restricted escrows                                                         243
   Other assets                                                             1,402
   Investment properties:
      Land                                               $ 8,641
      Buildings and related personal property              52,860
                                                          61,501
      Less accumulated depreciation                       (30,871)         30,630
                                                                         $ 33,225
Liabilities and Partners' Deficit
Liabilities
   Accounts payable                                                        $ 478
   Tenant security deposit liabilities                                        284
   Due to affiliates (Note B)                                               1,546
   Accrued property taxes                                                     484
   Other liabilities                                                          566
   Mortgage notes payable                                                  44,845

Partners' Deficit
   General partner                                        $ (991)
   Limited partners (383,033 units outstanding)           (13,987)        (14,978)
                                                                         $ 33,225

                See Accompanying Notes to Financial Statements
</TABLE>



<PAGE>






               CONSOLIDATED CAPITAL INSTITUTIONAL PROPERTIES/3

                            STATEMENTS OF OPERATIONS
                                   (Unaudited)
                      (in thousands, except per unit data)

<TABLE>
<CAPTION>

                                              For the Three Months      For the Nine Months
                                              Ended September 30,       Ended September 30,
                                               2004         2003         2004        2003
Revenues:
<S>                                          <C>          <C>          <C>          <C>
  Rental income                              $ 2,579      $ 2,640      $ 7,709      $ 7,965
  Other income                                   387          367        1,066        1,046
  Casualty gain (Note C)                          92           --           92           --
      Total revenues                           3,058        3,007        8,867        9,011

Expenses:
  Operating                                    1,550        1,477        4,341        4,010
  General and administrative                     175          135          510          413
  Depreciation                                   763          739        2,301        2,262
  Interest                                       862          868        2,599        2,616
  Property taxes                                 214          229          659          678
      Total expenses                           3,564        3,448       10,410        9,979

Net loss                                      $ (506)      $ (441)     $(1,543)     $ (968)

Net loss allocated to general
  partner (1%)                                 $ (5)        $ (4)       $ (15)       $ (10)
Net loss allocated to limited
  partners (99%)                                (501)        (437)      (1,528)        (958)

                                              $ (506)      $ (441)     $(1,543)     $ (968)

Net loss per limited partnership unit        $ (1.31)     $ (1.14)     $ (3.99)     $ (2.50)

Distributions per limited
  partnership unit                             $ --         $ --         $ --       $ 0.66

                See Accompanying Notes to Financial Statements
</TABLE>



<PAGE>



               CONSOLIDATED CAPITAL INSTITUTIONAL PROPERTIES/3

                  STATEMENTS OF CHANGES IN PARTNERS' DEFICIT
                                   (Unaudited)
                        (in thousands, except unit data)

<TABLE>
<CAPTION>


                                     Limited
                                    Partnership     General     Limited
                                       Units        Partner     Partners      Total

<S>                                   <C>             <C>       <C>         <C>
Original capital contributions        383,033         $ 1       $ 95,758    $ 95,759

Partners' deficit at
   December 31, 2003                  383,033       $ (976)     $(12,459)   $(13,435)

Net loss for the nine months
   ended September 30, 2004                --           (15)      (1,528)     (1,543)

Partners' deficit at
   September 30, 2004                 383,033       $ (991)     $(13,987)   $(14,978)

                See Accompanying Notes to Financial Statements
</TABLE>



<PAGE>



               CONSOLIDATED CAPITAL INSTITUTIONAL PROPERTIES/3

                            STATEMENTS OF CASH FLOWS
                                   (Unaudited)
                                 (in thousands)

<TABLE>
<CAPTION>

                                                                   Nine Months Ended
                                                                     September 30,
                                                                     2004      2003
Cash flows from operating activities:
<S>                                                               <C>         <C>
  Net loss                                                        $(1,543)    $ (968)
  Adjustments to reconcile net loss to net cash
   provided by operating activities:
      Casualty gain                                                   (92)         --
      Depreciation                                                  2,301       2,262
      Amortization of loan costs                                       83          87
      Change in accounts:
        Receivables and deposits                                     (181)       (101)
        Other assets                                                 (266)       (206)
        Accounts payable                                               15         114
        Tenant security deposit liabilities                           (25)         13
        Accrued property taxes                                        296         285
        Due to affiliates                                             442          --
        Other liabilities                                             (43)        102
         Net cash provided by operating activities                    987       1,588

Cash flows from investing activities:
  Property improvements and replacements                           (1,101)       (756)
  Net (deposits to) receipts from restricted escrows                  (26)         18
  Insurance proceeds received                                          92          --
         Net cash used in investing activities                     (1,035)       (738)

Cash flows from financing activities:
  Payment of mortgage notes payable                                  (740)       (688)
  Distributions to partners                                            --        (255)
  Advances from affiliates                                            599          --
         Net cash used in financing activities                       (141)       (943)

Net decrease in cash and cash equivalents                            (189)        (93)

Cash and cash equivalents at beginning of period                      599         713

Cash and cash equivalents at end of period                         $ 410       $ 620

Supplemental disclosure of cash flow information:
  Cash paid for interest                                          $ 2,523     $ 2,570

Supplemental disclosure of non-cash activity:
  Property improvements and replacements in accounts payable       $ 259       $ 77

At December  31,  2003,  accounts  payable  included  approximately  $58,000 for
property   improvements  and  replacements,   which  are  included  in  property
improvements and replacements for the nine months ended September 30, 2004.

                See Accompanying Notes to Financial Statements
</TABLE>

<PAGE>

Note A - Basis of Presentation

The  accompanying   unaudited  financial   statements  of  Consolidated  Capital
Institutional   Properties/3  (the  "Partnership"  or  "Registrant")  have  been
prepared in accordance with generally accepted accounting principles for interim
financial  information and with the  instructions to Form 10-QSB and Item 310(b)
of Regulation S-B.  Accordingly,  they do not include all of the information and
footnotes  required by generally  accepted  accounting  principles  for complete
financial  statements.  In the opinion of ConCap  Equities,  Inc.  (the "General
Partner"),  which is wholly owned by Apartment Investment and Management Company
("AIMCO"),  a publicly  traded real estate  investment  trust,  all  adjustments
(consisting  of  normal  recurring  accruals)  considered  necessary  for a fair
presentation have been included.  Operating results for the three and nine month
periods ended September 30, 2004, are not necessarily  indicative of the results
that may be expected for the fiscal year ending  December 31, 2004.  For further
information, refer to the financial statements and footnotes thereto included in
the  Partnership's  Annual  Report on Form  10-KSB  for the  fiscal  year  ended
December 31, 2003.

Note B - Transactions with Affiliated Parties

The  Partnership  has no employees and depends on the General Partner and/or its
affiliates for the management and administration of all Partnership  activities.
The  limited  partnership  agreement  ("Partnership   Agreement")  provides  for
payments to affiliates for property management services based on a percentage of
revenue.  The  Partnership  Agreement  also  provides for  reimbursement  to the
General  Partner and its affiliates  for costs  incurred in connection  with the
administration of Partnership activities.

Affiliates of the General  Partner are entitled to receive 5% of gross  receipts
from all of the Partnership's  properties as compensation for providing property
management  services.  The  Partnership  paid to such  affiliates  approximately
$426,000 and $440,000  for the nine months  ended  September  30, 2004 and 2003,
respectively, which is included in operating expense.

Affiliates  of the General  Partner  charged the  Partnership  reimbursement  of
accountable  administrative  expenses  amounting to  approximately  $460,000 and
$341,000 for the nine months ended  September  30, 2004 and 2003,  respectively,
which  is  included  in  general  and  administrative  expenses  and  investment
properties.   Included  in  these  amounts  are  fees  related  to  construction
management  services  provided  by  an  affiliate  of  the  General  Partner  of
approximately  $38,000 and $42,000 for the nine months ended  September 30, 2004
and 2003, respectively. The construction management fees are calculated based on
a percentage of current year  additions to investment  properties.  At September
30, 2004,  approximately  $639,000 of these  expenses are payable to the General
Partner and are included in due to affiliates.

During the nine months ended  September 30, 2004, the General  Partner  advanced
the  Partnership  funds to cover  expenses  related to  operations at Cedar Rim,
Lamplighter Park, and Tamarac Village totaling approximately $599,000.  Interest
is charged at prime plus 2% (6.75% on September 30, 2004).  Interest  expense on
these advances was approximately $24,000 for the nine months ended September 30,
2004.  No such  advances  were made during the nine months ended  September  30,
2003.  Total  advances and accrued  interest of  approximately  $907,000  remain
unpaid at September 30, 2004 and are included in due to affiliates.

The  Partnership  insures its properties up to certain  limits through  coverage
provided by AIMCO which is  generally  self-insured  for a portion of losses and
liabilities  related to workers  compensation,  property  casualty  and  vehicle
liability. The Partnership insures its properties above the AIMCO limits through
insurance policies obtained by AIMCO from insurers unaffiliated with the General
Partner.  During  the  nine  months  ended  September  30,  2004 and  2003,  the
Partnership was charged by AIMCO and its affiliates  approximately  $160,000 and
$146,000,  respectively,  for insurance coverage and fees associated with claims
administration.

Note C - Casualty Events

In October 2001, a fire occurred at  Lamplighter  Park  Apartments  which caused
damage to thirty units of the complex.  During the year ended  December 31, 2002
insurance proceeds of approximately $482,000 were received of which $237,000 was
included  in  accounts  receivable  at  December  31,  2001.  Assets and related
accumulated  depreciation  with a net book value of approximately  $237,000 were
written  off  during the year  ended  December  31,  2001.  A  casualty  gain of
approximately  $245,000 was recognized  during the year ended December 31, 2002.
During the year  ended  December  31,  2003  additional  insurance  proceeds  of
approximately   $239,000  were  received  and  assets  and  related  accumulated
depreciation  with a net book value of  approximately  $54,000 were written off.
This resulted in an additional  casualty gain of  approximately  $185,000  being
recognized  during the year ended December 31, 2003. During the third quarter of
2004, additional insurance proceeds of approximately $92,000 were received.  The
damaged assets were written off in 2002 and 2003 so an additional  casualty gain
of approximately  $92,000 was recognized  during the nine months ended September
30, 2004.

Note D - Subsequent Event

Subsequent  to  September  30,  2004,  the  General  Partner   advanced  to  the
Partnership  approximately  $349,000 to cover expenses  related to operations at
Lamplighter  Park,  Cedar Rim and Tamarac Village  Apartments.  Interest will be
charged at prime plus 2% (6.75% at September 30, 2004).

Note E - Contingencies

In March 1998, several putative unit holders of limited partnership units of the
Partnership  commenced an action  entitled  Rosalie  Nuanes,  et al. v. Insignia
Financial Group, Inc., et al. (the "Nuanes action") in the Superior Court of the
State of  California  for the  County  of San  Mateo.  The  plaintiffs  named as
defendants,  among others,  the Partnership,  its General Partner and several of
their affiliated  partnerships and corporate  entities.  The action purported to
assert  claims on behalf of a class of  limited  partners  and  derivatively  on
behalf of a number of limited partnerships  (including the Partnership) that are
named as nominal defendants, challenging, among other things, the acquisition of
interests in certain General Partner entities by Insignia  Financial Group, Inc.
("Insignia") and entities that were, at one time,  affiliates of Insignia;  past
tender offers by the Insignia  affiliates to acquire limited  partnership units;
management of the  partnerships  by the Insignia  affiliates;  and the series of
transactions  which  closed on October 1, 1998 and  February  26,  1999  whereby
Insignia and Insignia  Properties Trust,  respectively,  were merged into AIMCO.
The plaintiffs sought monetary damages and equitable relief,  including judicial
dissolution of the Partnership. In addition, during the third quarter of 2001, a
complaint captioned Heller v. Insignia Financial Group (the "Heller action") was
filed against the same  defendants  that are named in the Nuanes  action.  On or
about August 6, 2001,  plaintiffs  filed a first amended  complaint.  The Heller
action was brought as a purported  derivative  action,  and asserted claims for,
among other things,  breach of fiduciary duty, unfair  competition,  conversion,
unjust enrichment, and judicial dissolution.

On January 8, 2003,  the parties filed a  Stipulation  of Settlement in proposed
settlement of the Nuanes action and the Heller action.

In general  terms,  the  proposed  settlement  provides  for  certification  for
settlement  purposes of a settlement class consisting of all limited partners in
this  Partnership and others (the  "Partnerships")  as of December 20, 2002, the
dismissal  with  prejudice  and  release  of claims  in the  Nuanes  and  Heller
litigation,  payment by AIMCO of $9.9  million  (which shall be  distributed  to
settlement  class  members  after  deduction of attorney fees and costs of class
counsel and certain costs of settlement) and up to $1 million toward the cost of
independent  appraisals of the  Partnerships'  properties  by a court  appointed
appraiser.  An affiliate of the General Partner has also agreed to make at least
one round of tender offers to purchase all of the  partnership  interests in the
Partnerships within one year of final approval, if it is granted, and to provide
partners  with the  independent  appraisals  at the time of these  tenders.  The
proposed  settlement  also provided for the  limitation  of the allowable  costs
which the General  Partner or its  affiliates  will charge the  Partnerships  in
connection with this litigation and imposes limits on the class counsel fees and
costs in this litigation.  On April 11, 2003,  notice was distributed to limited
partners providing the details of the proposed settlement.

On June 13, 2003, the court granted final approval of the settlement and entered
judgment in both the Nuanes and Heller actions.  On August 12, 2003, an objector
("Objector") filed an appeal (the "Appeal") seeking to vacate and/or reverse the
order approving the settlement and entering  judgment  thereto.  On November 24,
2003,  the Objector  filed an  application  requesting  the court order AIMCO to
withdraw settlement tender offers it had commenced,  refrain from making further
offers  pending  the appeal and auction  any units  tendered  to third  parties,
contending  that the offers did not  conform  with the terms of the  settlement.
Counsel  for the  Objector  (on behalf of another  investor)  had  alternatively
requested the court take certain action  purportedly to enforce the terms of the
settlement agreement. On December 18, 2003, the court heard oral argument on the
motions  and denied them both in their  entirety.  The  Objector  filed a second
appeal challenging the court's use of a referee and its order requiring Objector
to pay those fees.

On January 28, 2004,  the  Objector  filed his opening  brief in the Appeal.  On
April 23, 2004, the General Partner and its affiliates filed a response brief in
support of the settlement  and the judgment  thereto.  The plaintiffs  have also
filed a brief in support of the  settlement.  On June 4, 2004,  Objector filed a
reply to the briefs submitted by the General Partner and Plaintiffs. In addition
both the Objector and  plaintiffs  filed  briefs in  connection  with the second
appeal.  The Court of Appeals  heard oral  argument on both appeals on September
22, 2004 and took the matters under submission.

The  General  Partner  does not  anticipate  that any costs to the  Partnership,
whether legal or settlement costs,  associated with these cases will be material
to the Partnership's overall operations.

On August 8, 2003 AIMCO  Properties  L.P., an affiliate of the General  Partner,
was served with a complaint in the United  States  District  Court,  District of
Columbia alleging that AIMCO Properties L.P.  willfully  violated the Fair Labor
Standards Act ("FLSA") by failing to pay  maintenance  workers  overtime for all
hours worked in excess of forty per week. On March 5, 2004 the plaintiffs  filed
an amended  complaint  also  naming  NHP  Management  Company,  which is also an
affiliate of the General Partner. The complaint is styled as a Collective Action
under the FLSA and seeks to certify state  subclasses in  California,  Maryland,
and the District of Columbia.  Specifically,  the plaintiffs  contend that AIMCO
Properties L.P. failed to compensate maintenance workers for time that they were
required to be "on-call".  Additionally,  the complaint alleges AIMCO Properties
L.P. failed to comply with the FLSA in compensating maintenance workers for time
that they worked in responding to a call while  "on-call".  The defendants  have
filed an answer to the amended  complaint  denying the substantive  allegations.
Some discovery has taken place and settlement  negotiations  continue.  Although
the outcome of any  litigation is  uncertain,  AIMCO  Properties,  L.P. does not
believe that the ultimate  outcome  will have a material  adverse  effect on its
financial  condition or results of operations.  Similarly,  the General  Partner
does not believe that the ultimate  outcome will have a material  adverse effect
on the Partnership's financial condition or results of operations.

The  Partnership  is unaware  of any other  pending  or  outstanding  litigation
matters  involving  it or its  investment  properties  that are not of a routine
nature arising in the ordinary course of business.

As  previously  disclosed,  the  Central  Regional  Office of the United  States
Securities  and  Exchange   Commission   (the  "SEC")  is  conducting  a  formal
investigation relating to certain matters.  Although the staff of the SEC is not
limited  in the  areas  that it may  investigate,  AIMCO  believes  the areas of
investigation include AIMCO's miscalculated monthly net rental income figures in
third quarter 2003,  forecasted  guidance,  accounts payable,  rent concessions,
vendor  rebates,  capitalization  of payroll and certain  other  costs,  and tax
credit  transactions.  AIMCO is cooperating  fully. AIMCO is not able to predict
when the matter  will be  resolved.  AIMCO does not  believe  that the  ultimate
outcome  will  have a  material  adverse  effect on its  consolidated  financial
condition  or results of  operations.  Similarly,  the General  Partner does not
believe that the ultimate  outcome  will have a material  adverse  effect on the
Partnership's financial condition or results of operations.

<PAGE>

Item 2.     Management's Discussion and Analysis or Plan of Operation

The matters discussed in this report contain certain forward-looking statements,
including, without limitation, statements regarding future financial performance
and the effect of government  regulations.  Actual results may differ materially
from those described in the forward-looking statements and will be affected by a
variety of risks and factors including,  without limitation:  national and local
economic  conditions;  the terms of  governmental  regulations  that  affect the
Registrant and interpretations of those regulations; the competitive environment
in which the Registrant operates;  financing risks, including the risk that cash
flows from operations may be insufficient to meet required payments of principal
and interest;  real estate risks, including variations of real estate values and
the general  economic  climate in local markets and  competition  for tenants in
such markets;  litigation,  including  costs  associated  with  prosecuting  and
defending  claims  and  any  adverse   outcomes,   and  possible   environmental
liabilities.   Readers  should  carefully  review  the  Registrant's   financial
statements and the notes thereto,  as well as the risk factors  described in the
documents  the  Registrant  files  from  time to time  with the  Securities  and
Exchange Commission.

The Partnership's investment properties at September 30, 2004 consisted of seven
apartment complexes. The following table sets forth the average occupancy of the
properties for each of the nine month periods ended September 30, 2004 and 2003:

                                                   Average Occupancy
      Property                                      2004       2003

      Cedar Rim Apartments (1)                      88%        85%
        New Castle, Washington
      Hidden Cove by the Lake Apartments            93%        95%
        Belleville, Michigan
      Lamplighter Park Apartments                   91%        90%
        Bellevue, Washington
      Park Capital Apartments (1)                   97%        92%
        Salt Lake City, Utah
      Sandpiper I and II Apartments                 93%        93%
        St. Petersburg, Florida
      Tamarac Village Apartments (2)                81%        86%
        Denver, Colorado
      Williamsburg Manor Apartments                 94%        93%
        Cary, North Carolina

(1)   The General Partner  attributes the increase in occupancy at Cedar Rim and
      Park Capital  Apartments  to increased  marketing  efforts and an improved
      economy in the local market.

(2)   The  General  Partner  attributes  the  decrease in  occupancy  at Tamarac
      Village Apartments to stricter applicant acceptance standards.

The  Partnership's  financial  results depend upon a number of factors including
the  ability to attract  and  maintain  tenants  at the  investment  properties,
interest  rates on mortgage  loans,  costs  incurred  to operate the  investment
properties,  general  economic  conditions  and weather.  As part of the ongoing
business plan of the Partnership, the General Partner monitors the rental market
environment  of each of its investment  properties to assess the  feasibility of
increasing rents,  maintaining or increasing occupancy levels and protecting the
Partnership  from  increases  in  expenses.  As part of this plan,  the  General
Partner attempts to protect the Partnership from the burden of inflation-related
increases  in  expenses  by  increasing  rents and  maintaining  a high  overall
occupancy  level.  However,  the General Partner may use rental  concessions and
rental rate reductions to offset softening market conditions, accordingly, there
is no  guarantee  that the General  Partner will be able to sustain such a plan.
Further,  a number of factors  that are outside the control of the  Partnership,
such as the local  economic  climate and weather,  can  adversely or  positively
affect the Partnership's financial results.

Results of Operations

The Partnership realized a net loss of approximately $506,000 and $1,543,000 for
the three and nine months ended September 30, 2004, respectively,  compared to a
net loss of  approximately  $441,000  and $968,000 for the three and nine months
ended September 30, 2003,  respectively.  The increase in net loss for the three
months ended  September 30, 2004 is due to an increase in total expenses  offset
by a slight  increase in total  revenues.  The increase in net loss for the nine
months ended  September  30, 2004 is due to an increase in total  expenses and a
decrease in total revenues.

Total revenues increased for the three months ended September 30, 2004 due to an
increase in other income and a casualty gain  partially  offset by a decrease in
rental income.  Total revenues decreased for the nine months ended September 30,
2004 due to a decrease in rental income partially offset by an increase in other
income and a casualty gain (as discussed  below.) Rental income decreased due to
decreases  in  occupancy  at Tamarac  Village  and Hidden  Cove  Apartments  and
decreases in average rental rates at Williamsburg Manor,  Tamarac Village,  Park
Capital,  Lamplighter  Park,  and  Cedar  Rim  Apartments,  partially  offset by
increases in occupancy at  Williamsburg  Manor,  Park Capital,  Lamplighter  and
Cedar Rim  Apartments,  increases  in average  rental  rates at Hidden  Cove and
Sandpiper I and II Apartments, and a decrease in bad debt at Tamarac Village and
Cedar Rim  Apartments.  Other income  increased  primarily due to an increase in
utility reimbursements at Cedar Rim and Sandpiper I and II Apartments.

In October 2001, a fire occurred at  Lamplighter  Park  Apartments  which caused
damage to thirty units of the complex.  During the year ended  December 31, 2002
insurance proceeds of approximately $482,000 were received of which $237,000 was
included  in  accounts  receivable  at  December  31,  2001.  Assets and related
accumulated  depreciation  with a net book value of approximately  $237,000 were
written  off  during the year  ended  December  31,  2001.  A  casualty  gain of
approximately  $245,000 was recognized  during the year ended December 31, 2002.
During the year  ended  December  31,  2003  additional  insurance  proceeds  of
approximately   $239,000  were  received  and  assets  and  related  accumulated
depreciation  with a net book value of  approximately  $54,000 were written off.
This resulted in an additional  casualty gain of  approximately  $185,000  being
recognized  during the year ended December 31, 2003. During the third quarter of
2004, additional insurance proceeds of approximately $92,000 were received.  The
damaged assets were written off in 2002 and 2003 so an additional  casualty gain
of approximately  $92,000 was recognized  during the nine months ended September
30, 2004.

Total expenses  increased for the three and nine months ended September 30, 2004
due to increases in  operating,  general and  administrative,  and  depreciation
expenses.  Operating  expenses  increased  due  to  increases  in  property  and
maintenance  expenses,  partially  offset by a decrease in advertising  expense.
Property expenses  increased  primarily due to increases in salaries and related
benefits  at Cedar Rim,  Lamplighter  Park,  Sandpiper  I and II,  Hidden  Cove,
Tamarac Village, and Williamsburg Manor Apartments and increased utility expense
at Tamarac Village,  Williamsburg Manor and Lamplighter Apartments.  Maintenance
expenses increased due to increases in contract services at Lamplighter Park and
Tamarac Village Apartments and an increase in snow removal costs and maintenance
materials at Tamarac Village  Apartments,  partially  offset by reduced contract
services at Cedar Rim and  Sandpiper I and II  Apartments.  Advertising  expense
decreased  primarily  due to a decrease  in  referral  fees at  Tamarac  Village
Apartments,  partially offset by increased periodical and newspaper  advertising
at Lamplighter Park Apartments.  Depreciation  expense increased due to property
improvements and replacements  completed during the last twelve months primarily
at Cedar Rim and Lamplighter Park Apartments.
General and administrative  expenses increased  primarily due to increased costs
of  services  included  in the  management  reimbursements  paid to the  General
Partner as allowed under the Partnership Agreement. Also included in general and
administrative expenses at both September 30, 2004 and 2003 are costs associated
with the  quarterly and annual  communications  with  investors  and  regulatory
agencies and the annual audit required by the Partnership Agreement.

Liquidity and Capital Resources

At  September  30,  2004  the  Partnership  had cash  and  cash  equivalents  of
approximately $410,000 compared to approximately $620,000 at September 30, 2003.
Cash and cash equivalents  decreased  approximately  $189,000 since December 31,
2003 due to approximately  $1,035,000 and $141,000 of cash used in investing and
financing activities,  respectively,  partially offset by approximately $987,000
of cash  provided by operating  activities.  Cash used in  investing  activities
consisted  of  property  improvements  and  replacements  and  net  deposits  to
restricted  escrows  maintained by the mortgage lenders  partially offset by the
receipt of insurance proceeds.  Cash used in financing  activities  consisted of
principal  payments on the mortgages  encumbering the  Partnership's  properties
partially offset by advances received from affiliates.  The Partnership  invests
its working capital reserves in interest bearing accounts.

The sufficiency of existing  liquid assets to meet future  liquidity and capital
expenditure   requirements   is  directly   related  to  the  level  of  capital
expenditures  required at the  properties  to  adequately  maintain the physical
assets and other  operating needs of the Partnership and to comply with Federal,
state, and local legal and regulatory requirements. The General Partner monitors
developments in the area of legal and regulatory  compliance.  For example,  the
Sarbanes-Oxley Act of 2002 mandates or suggests  additional  compliance measures
with regard to governance,  disclosure, audit and other areas. In light of these
changes,  the Partnership  expects that it will incur higher expenses related to
compliance.   Capital   improvements  planned  for  each  of  the  Partnership's
properties are detailed below.

Cedar Rim Apartments

During the nine months ended  September  30,  2004,  the  Partnership  completed
approximately   $100,000  of  capital  improvements  at  Cedar  Rim  Apartments,
consisting primarily of floor covering and appliance replacements and structural
improvements.  These improvements were funded from the property's operating cash
flow. The Partnership  evaluates the capital  improvement  needs of the property
during  the year and  currently  expects to  complete  an  additional  $9,000 in
capital   improvements   during  the  remainder  of  2004.   Additional  capital
improvements may be considered and will depend on the physical  condition of the
property as well as the anticipated cash flow generated by the property.

Hidden Cove by the Lake Apartments

During the nine months ended  September  30,  2004,  the  Partnership  completed
approximately  $72,000  of  capital  improvements  at  Hidden  Cove by the  Lake
Apartments,  consisting  primarily of air  conditioning  unit,  water heater and
floor covering  replacements,  major  landscaping and exterior  painting.  These
improvements   were  funded  from  the  property's   operating  cash  flow.  The
Partnership  evaluates the capital  improvement needs of the property during the
year and  currently  expects  to  complete  an  additional  $27,000  in  capital
improvements during the remainder of 2004.  Additional capital  improvements may
be considered and will depend on the physical  condition of the property as well
as the anticipated cash flow generated by the property.

Lamplighter Park Apartments

During the nine months ended  September  30,  2004,  the  Partnership  completed
approximately  $141,000 of capital  improvements at Lamplighter Park Apartments,
consisting primarily of heating and swimming pool upgrades,  appliance and floor
covering replacements and building upgrades. These improvements were funded from
the  property's  operating  cash flow and insurance  proceeds.  The  Partnership
evaluates  the capital  improvement  needs of the  property  during the year and
currently  expects to complete an  additional  $219,000 in capital  improvements
during the remainder of 2004.  Additional capital improvements may be considered
and  will  depend  on the  physical  condition  of the  property  as well as the
anticipated cash flow generated by the property.

Park Capital Apartments

During the nine months ended  September  30,  2004,  the  Partnership  completed
approximately  $108,000  of capital  improvements  at Park  Capital  Apartments,
consisting   primarily  of  floor  covering,   fitness  and  security  equipment
replacements and swimming pool upgrades. These improvements were funded from the
property's   operating  cash  flow.  The   Partnership   evaluates  the  capital
improvement  needs of the  property  during  the year and  currently  expects to
complete an additional $12,000 in capital  improvements  during the remainder of
2004.  Additional capital  improvements may be considered and will depend on the
physical  condition  of the  property  as  well  as the  anticipated  cash  flow
generated by the property.

Tamarac Village Apartments

During the nine months ended  September  30,  2004,  the  Partnership  completed
approximately  $468,000 of capital  improvements at Tamarac Village  Apartments,
consisting  primarily of floor  covering and  appliance  replacements,  heating,
plumbing  fixture  and air  conditioning  unit  upgrades,  ground  lighting  and
swimming pool improvements, landscaping and other structural improvements. These
improvements   were  funded  from  the  property's   operating  cash  flow.  The
Partnership  evaluates the capital  improvement needs of the property during the
year and  currently  expects  to  complete  an  additional  $50,000  in  capital
improvements during the remainder of 2004.  Additional capital  improvements may
be considered and will depend on the physical  condition of the property as well
as the anticipated cash flow generated by the property.

Williamsburg Manor Apartments

During the nine months ended  September  30,  2004,  the  Partnership  completed
approximately $185,000 of capital improvements at Williamsburg Manor Apartments,
consisting  primarily of floor covering and roof  replacements and furniture and
fixtures. These improvements were funded from the property's operating cash flow
and  replacement  reserves.  The Partnership  evaluates the capital  improvement
needs of the  property  during the year and  currently  expects to  complete  an
additional  $22,000  in  capital  improvements  during  the  remainder  of 2004.
Additional  capital  improvements  may be  considered  and  will  depend  on the
physical  condition  of the  property as well as  replacement  reserves  and the
anticipated cash flow generated by the property.

Sandpiper I and II Apartments

During the nine months ended  September  30,  2004,  the  Partnership  completed
approximately $228,000 of capital improvements at Sandpiper I and II Apartments,
consisting  primarily  of  floor  covering  and  cabinet  replacements  and roof
replacement.  These improvements were funded from the property's  operating cash
flow. The Partnership  evaluates the capital  improvement  needs of the property
during the year and  currently  expects to  complete  an  additional  $75,000 in
capital   improvements   during  the  remainder  of  2004.   Additional  capital
improvements may be considered and will depend on the physical  condition of the
property as well as replacement reserves and the anticipated cash flow generated
by the property.

The additional  capital  expenditures will be incurred only if cash is available
from operations or from Partnership  reserves.  To the extent that such budgeted
capital improvements are required, the Partnership's distributable cash flow, if
any, may be adversely affected.

Due to short-term  operating cash shortfalls at Lamplighter  Park, Cedar Rim and
Tamarac Village Apartments,  the Partnership  obtained advances of approximately
$349,000  subsequent to September  30, 2004, as discussed in "Item 1.  Financial
Statements - Note D". The mortgage  indebtedness  encumbering the  Partnership's
properties of approximately $44,845,000 has maturity dates ranging from December
2005 to October 2021. The mortgage  indebtedness  encumbering  Tamarac  Village,
Hidden  Cove  by  the  Lake,  Lamplighter  Park  and  Cedar  Rim  Apartments  of
approximately  $34,020,000  requires  monthly  payments  until the loans  mature
between July 2021 and October  2021 at which time the loans are  scheduled to be
fully  amortized.  The mortgage  indebtedness  encumbering  Williamsburg  Manor,
Sandpiper I and II and Park  Capital  Apartments  of  approximately  $10,825,000
requires  interest  only  payments,  matures in  December  2005 and has  balloon
payments totaling approximately $10,825,000 due at maturity. The General Partner
will attempt to refinance such indebtedness  and/or sell the properties prior to
such maturity dates. If the investment  properties  cannot be refinanced or sold
for a sufficient amount, the Partnership may risk losing such properties through
foreclosure.

The Partnership  distributed the following  amounts during the nine months ended
September 30, 2004 and 2003 (in thousands, except per unit data):

<TABLE>
<CAPTION>

                   Nine Months Ended    Per Limited    Nine Months Ended  Per Limited
                     September 30,      Partnership      September 30,    Partnership
                          2004             Unit              2003             Unit

<S>                       <C>              <C>               <C>             <C>
Operations                $ --             $ --              $ 255           $ 0.66
</TABLE>

The  Partnership's  cash  available  for  distribution  is reviewed on a monthly
basis.  Future cash  distributions  will depend on the levels of cash  generated
from operations, timing of debt maturities, refinancings, and/or property sales,
and the availability of cash reserves. There can be no assurance,  however, that
the Partnership  will generate  sufficient  funds from operations after required
capital  expenditures  to permit any  distributions  to its partners  during the
remainder of 2004 or subsequent periods.

Other

In addition to its  indirect  ownership of the general  partner  interest in the
Partnership, AIMCO and its affiliates owned 215,034.30 limited partnership units
(the "Units") in the Partnership representing 56.14% of the outstanding Units at
September  30,  2004. A number of these Units were  acquired  pursuant to tender
offers  made by  AIMCO  or its  affiliates.  It is  possible  that  AIMCO or its
affiliates will acquire  additional  Units in exchange for cash or a combination
of cash and units in AIMCO Properties, L.P., the operating partnership of AIMCO,
either through private  purchases or tender offers.  Pursuant to the Partnership
Agreement,  unitholders  holding a majority  of the Units are  entitled  to take
action with  respect to a variety of matters that  include,  but are not limited
to,  voting on certain  amendments  to the  Partnership  Agreement and voting to
remove  the  General  Partner.  As a result  of its  ownership  of 56.14% of the
outstanding  Units,  AIMCO and its  affiliates  are in a position to control all
such voting  decisions  with  respect to the  Partnership.  Although the General
Partner owes fiduciary duties to the limited  partners of the  Partnership,  the
General Partner also owes fiduciary duties to AIMCO as its sole stockholder.  As
a  result,  the  duties of the  General  Partner,  as  general  partner,  to the
Partnership  and its limited  partners may come into conflict with the duties of
the General Partner to AIMCO as its sole stockholder.

Critical Accounting Policies and Estimates

The financial  statements are prepared in accordance with accounting  principles
generally  accepted in the United States,  which require the Partnership to make
estimates and  assumptions.  The  Partnership  believes that of its  significant
accounting  policies,  the following may involve a higher degree of judgment and
complexity.

Impairment of Long-Lived Assets

Investment  properties  are  recorded at cost,  less  accumulated  depreciation,
unless  considered  impaired.  If  events  or  circumstances  indicate  that the
carrying  amount of a property may be  impaired,  the  Partnership  will make an
assessment of its  recoverability  by estimating  the  undiscounted  future cash
flows,  excluding  interest  charges,  of the property.  If the carrying  amount
exceeds the aggregate  future cash flows,  the  Partnership  would  recognize an
impairment  loss to the extent the carrying amount exceeds the fair value of the
property.

Real  property  investments  are  subject  to varying  degrees of risk.  Several
factors  may  adversely  affect  the  economic  performance  and  value  of  the
Partnership's investment properties.  These factors include, but are not limited
to, changes in national,  regional and local economic climate; local conditions,
such  as  an  oversupply  of  multifamily  properties;  competition  from  other
available  multifamily  property owners and changes in market rental rates.  Any
adverse  changes in these  factors could cause  impairment of the  Partnership's
assets.

Revenue Recognition

The Partnership generally leases apartment units for twelve-month terms or less.
Rental income  attributable to leases is recognized monthly as it is earned. The
Partnership  evaluates all accounts receivable from residents and establishes an
allowance, after the application of security deposits, for accounts greater than
30 days past due on current tenants and all receivables due from former tenants.
The Partnership will offer rental concessions during particularly slow months or
in response to heavy  competition from other similar  complexes in the area. Any
concessions  given at the inception of the lease are amortized  over the life of
the lease.

Item 3.     Controls and Procedures

(a) Disclosure Controls and Procedures.  The Partnership's management,  with the
participation of the principal executive officer and principal financial officer
of the General Partner,  who are the equivalent of the  Partnership's  principal
executive officer and principal financial officer,  respectively,  has evaluated
the  effectiveness of the Partnership's  disclosure  controls and procedures (as
such term is defined  in Rules  13a-15(e)  and  15d-15(e)  under the  Securities
Exchange  Act of 1934,  as amended  (the  "Exchange  Act")) as of the end of the
period covered by this report. Based on such evaluation, the principal executive
officer and  principal  financial  officer of the General  Partner,  who are the
equivalent  of the  Partnership's  principal  executive  officer  and  principal
financial  officer,  respectively,  have  concluded  that, as of the end of such
period, the Partnership's disclosure controls and procedures are effective.

(b) Internal Control Over Financial  Reporting.  There have not been any changes
in the Partnership's  internal control over financial reporting (as such term is
defined in Rules  13a-15(f)  and  15d-15(f)  under the Exchange  Act) during the
fiscal quarter to which this report relates that have  materially  affected,  or
are reasonably likely to materially affect,  the Partnership's  internal control
over financial reporting.


<PAGE>


                           PART II - OTHER INFORMATION

Item 1.     Legal Proceedings

In March 1998, several putative unit holders of limited partnership units of the
Partnership  commenced an action  entitled  Rosalie  Nuanes,  et al. v. Insignia
Financial Group, Inc., et al. (the "Nuanes action") in the Superior Court of the
State of  California  for the  County  of San  Mateo.  The  plaintiffs  named as
defendants,  among others,  the Partnership,  its General Partner and several of
their affiliated  partnerships and corporate  entities.  The action purported to
assert  claims on behalf of a class of  limited  partners  and  derivatively  on
behalf of a number of limited partnerships  (including the Partnership) that are
named as nominal defendants, challenging, among other things, the acquisition of
interests in certain General Partner entities by Insignia  Financial Group, Inc.
("Insignia") and entities that were, at one time,  affiliates of Insignia;  past
tender offers by the Insignia  affiliates to acquire limited  partnership units;
management of the  partnerships  by the Insignia  affiliates;  and the series of
transactions  which  closed on October 1, 1998 and  February  26,  1999  whereby
Insignia and Insignia  Properties Trust,  respectively,  were merged into AIMCO.
The plaintiffs sought monetary damages and equitable relief,  including judicial
dissolution of the Partnership. In addition, during the third quarter of 2001, a
complaint captioned Heller v. Insignia Financial Group (the "Heller action") was
filed against the same  defendants  that are named in the Nuanes  action.  On or
about August 6, 2001,  plaintiffs  filed a first amended  complaint.  The Heller
action was brought as a purported  derivative  action,  and asserted claims for,
among other things,  breach of fiduciary duty, unfair  competition,  conversion,
unjust enrichment, and judicial dissolution.

On January 8, 2003,  the parties filed a  Stipulation  of Settlement in proposed
settlement of the Nuanes action and the Heller action.

In general  terms,  the  proposed  settlement  provides  for  certification  for
settlement  purposes of a settlement class consisting of all limited partners in
this  Partnership and others (the  "Partnerships")  as of December 20, 2002, the
dismissal  with  prejudice  and  release  of claims  in the  Nuanes  and  Heller
litigation,  payment by AIMCO of $9.9  million  (which shall be  distributed  to
settlement  class  members  after  deduction of attorney fees and costs of class
counsel and certain costs of settlement) and up to $1 million toward the cost of
independent  appraisals of the  Partnerships'  properties  by a court  appointed
appraiser.  An affiliate of the General Partner has also agreed to make at least
one round of tender offers to purchase all of the  partnership  interests in the
Partnerships within one year of final approval, if it is granted, and to provide
partners  with the  independent  appraisals  at the time of these  tenders.  The
proposed  settlement  also provided for the  limitation  of the allowable  costs
which the General  Partner or its  affiliates  will charge the  Partnerships  in
connection with this litigation and imposes limits on the class counsel fees and
costs in this litigation.  On April 11, 2003,  notice was distributed to limited
partners providing the details of the proposed settlement.

On June 13, 2003, the court granted final approval of the settlement and entered
judgment in both the Nuanes and Heller actions.  On August 12, 2003, an objector
("Objector") filed an appeal (the "Appeal") seeking to vacate and/or reverse the
order approving the settlement and entering  judgment  thereto.  On November 24,
2003,  the Objector  filed an  application  requesting  the court order AIMCO to
withdraw settlement tender offers it had commenced,  refrain from making further
offers  pending  the appeal and auction  any units  tendered  to third  parties,
contending  that the offers did not  conform  with the terms of the  settlement.
Counsel  for the  Objector  (on behalf of another  investor)  had  alternatively
requested the court take certain action  purportedly to enforce the terms of the
settlement agreement. On December 18, 2003, the court heard oral argument on the
motions  and denied them both in their  entirety.  The  Objector  filed a second
appeal challenging the court's use of a referee and its order requiring Objector
to pay those fees.


<PAGE>


On January 28, 2004,  the  Objector  filed his opening  brief in the Appeal.  On
April 23, 2004, the General Partner and its affiliates filed a response brief in
support of the settlement  and the judgment  thereto.  The plaintiffs  have also
filed a brief in support of the  settlement.  On June 4, 2004,  Objector filed a
reply to the briefs submitted by the General Partner and Plaintiffs. In addition
both the Objector and  plaintiffs  filed  briefs in  connection  with the second
appeal.  The Court of Appeals  heard oral  argument on both appeals on September
22, 2004 and took the matters under submission.

The  General  Partner  does not  anticipate  that any costs to the  Partnership,
whether legal or settlement costs,  associated with these cases will be material
to the Partnership's overall operations.

On August 8, 2003 AIMCO  Properties  L.P., an affiliate of the General  Partner,
was served with a complaint in the United  States  District  Court,  District of
Columbia alleging that AIMCO Properties L.P.  willfully  violated the Fair Labor
Standards Act ("FLSA") by failing to pay  maintenance  workers  overtime for all
hours worked in excess of forty per week. On March 5, 2004 the plaintiffs  filed
an amended  complaint  also  naming  NHP  Management  Company,  which is also an
affiliate of the General Partner. The complaint is styled as a Collective Action
under the FLSA and seeks to certify state  subclasses in  California,  Maryland,
and the District of Columbia.  Specifically,  the plaintiffs  contend that AIMCO
Properties L.P. failed to compensate maintenance workers for time that they were
required to be "on-call".  Additionally,  the complaint alleges AIMCO Properties
L.P. failed to comply with the FLSA in compensating maintenance workers for time
that they worked in responding to a call while  "on-call".  The defendants  have
filed an answer to the amended  complaint  denying the substantive  allegations.
Some discovery has taken place and settlement  negotiations  continue.  Although
the outcome of any  litigation is  uncertain,  AIMCO  Properties,  L.P. does not
believe that the ultimate  outcome  will have a material  adverse  effect on its
financial  condition or results of operations.  Similarly,  the General  Partner
does not believe that the ultimate  outcome will have a material  adverse effect
on the Partnership's financial condition or results of operations.

Item 6.     Exhibits

            See Exhibit Index attached.

<PAGE>

                                   SIGNATURES

Pursuant to the requirements of the Exchange Act, the registrant has duly caused
this  report to be  signed on its  behalf  by the  undersigned,  thereunto  duly
authorized.



                                    CONSOLIDATED CAPITAL INSTITUTIONAL
                                    PROPERTIES/3


                                    By:   CONCAP EQUITIES, INC.
                                          Its General Partner


                                    By:   /s/Martha L. Long
                                          Martha L. Long
                                          Senior Vice President


                                    By:   /s/Stephen B. Waters
                                          Stephen B. Waters
                                          Vice President


                                    Date: November 12, 2004



<PAGE>



               CONSOLIDATED CAPITAL INSTITUTIONAL PROPERTIES/3

                                  EXHIBIT INDEX


 Exhibit Number   Description of Exhibit

       3.1        Certificate  of  Limited  Partnership,   as  amended  to  date
                  (Exhibit 3 to the Registrant's  Annual Report on Form 10-K for
                  the year ended  December 31, 2002, is  incorporated  herein by
                  reference).

       3.2        Agreement of Limited Partnership,  incorporated by reference
                  to Exhibit 3 to the Partnership's  Registration Statement on
                  Amendment 1 on Form S-11 (Reg.  No.  2-97664)  filed on July
                  17, 1985.

      10.34       Multifamily  Note dated November 30, 1995 between CCIP/3,  a
                  California   limited   partnership,   and  Lehman   Brothers
                  Holdings  Inc.  d/b/a Lehman  Capital,  A Division of Lehman
                  Brothers Holdings Inc., related to Park Capital  Apartments.
                  (Incorporated  by  reference  to the  Annual  Report on Form
                  10-K for the year ended December 31, 1995).

      10.35       Multifamily  Note dated November 30, 1995 between CCIP/3,  a
                  California   limited   partnership,   and  Lehman   Brothers
                  Holdings  Inc.  d/b/a Lehman  Capital,  A Division of Lehman
                  Brothers  Holdings  Inc.,   related  to  Williamsburg  Manor
                  Apartments.  (Incorporated by reference to the Annual Report
                  on Form 10-K for the year ended December 31, 1995).

      10.36       Multifamily  Note dated November 30, 1995 between CCIP/3,  a
                  California   limited   partnership,   and  Lehman   Brothers
                  Holdings  Inc.  d/b/a Lehman  Capital,  A Division of Lehman
                  Brothers  Holdings  Inc.,   related  to  Sandpiper  I  &  II
                  Apartments.  (Incorporated by reference to the Annual Report
                  on Form 10-K for the year ended December 31, 1995).

      10.48       Multifamily   Note  dated  June  27,  2001,   by  and  between
                  Consolidated Capital Institutional Properties/3,  a California
                  limited partnership, and GMAC Commercial Mortgage Corporation,
                  related  to  Tamarac  Village  Apartments.   (Incorporated  by
                  reference  to the  Quarterly  Report  on Form  10-QSB  for the
                  quarter ended June 30, 2001.)

      10.49       Multifamily   Note  dated  June  29,  2001,   by  and  between
                  Consolidated Capital Institutional Properties/3,  a California
                  limited partnership, and GMAC Commercial Mortgage Corporation,
                  related  to  Lamplighter  Park  Apartments.  (Incorporated  by
                  reference  to the  Quarterly  Report  on Form  10-QSB  for the
                  quarter ended June 30, 2001.)

      10.50       Multifamily   Note  dated  July  23,  2001,   by  and  between
                  Consolidated Capital Institutional Properties/3,  a California
                  limited partnership, and GMAC Commercial Mortgage Corporation,
                  related to Cedar Rim Apartments. (Incorporated by reference to
                  the Quarterly Report on Form 10-QSB for the quarter ended June
                  30, 2001.)

      10.51       Multifamily  Note dated  September  19,  2001,  by and between
                  Consolidated Capital Institutional Properties/3,  a California
                  limited partnership, and GMAC Commercial Mortgage Corporation,
                  related to Hidden Cove Apartments.  (Incorporated by reference
                  to the  Quarterly  Report on Form 10-QSB for the quarter ended
                  September 30, 2001.)

      28.1        Fee Owner's General Partnership  Agreement  (Incorporated by
                  reference to  Registration  Statement of  Partnership  (File
                  No. 2-97664) filed July 23, 1985).

      28.2        Fee Owner's  Certificate  of  Partnership  (Incorporated  by
                  reference to  Registration  Statement of  Partnership  (File
                  No. 2-97664) filed July 23, 1985).

      31.1        Certification  of  equivalent  of  Chief  Executive  Officer
                  pursuant     to     Securities     Exchange     Act    Rules
                  13a-14(a)/15d-14(a),  as Adopted  Pursuant to Section 302 of
                  the Sarbanes-Oxley Act of 2002.

      31.2        Certification  of  equivalent  of  Chief  Financial  Officer
                  pursuant     to     Securities     Exchange     Act    Rules
                  13a-14(a)/15d-14(a),  as Adopted  Pursuant to Section 302 of
                  the Sarbanes-Oxley Act of 2002.

      32.1        Certification   Pursuant  to  18  U.S.C.  Section  1350,  as
                  Adopted  Pursuant to Section 906 of the  Sarbanes-Oxley  Act
                  of 2002.

<PAGE>

Exhibit 31.1


                                  CERTIFICATION


I, Martha L. Long, certify that:


1.    I have  reviewed  this  quarterly  report on Form  10-QSB of  Consolidated
      Capital Institutional Properties/3;

2.    Based on my knowledge,  this report does not contain any untrue  statement
      of a material fact or omit to state a material fact  necessary to make the
      statements made, in light of the circumstances under which such statements
      were made,  not  misleading  with  respect  to the period  covered by this
      report;

3.    Based on my  knowledge,  the  financial  statements,  and other  financial
      information  included  in this  report,  fairly  present  in all  material
      respects the financial condition,  results of operations and cash flows of
      the small  business  issuer as of, and for, the periods  presented in this
      report;

4.    The  small  business  issuer's  other  certifying  officer(s)  and  I  are
      responsible  for  establishing  and  maintaining  disclosure  controls and
      procedures (as defined in Exchange Act Rules  13a-15(e) and 15d-15(e)) for
      the small business issuer and have:

      (a)   Designed such  disclosure  controls and  procedures,  or caused such
            disclosure   controls  and  procedures  to  be  designed  under  our
            supervision,  to ensure that  material  information  relating to the
            small business issuer, including its consolidated  subsidiaries,  is
            made  known to us by  others  within  those  entities,  particularly
            during the period in which this report is being prepared;

      (b)   Evaluated  the   effectiveness   of  the  small  business   issuer's
            disclosure  controls and procedures and presented in this report our
            conclusions about the  effectiveness of the disclosure  controls and
            procedures, as of the end of the period covered by this report based
            on such evaluation; and

      (c)   Disclosed in this report any change in the small  business  issuer's
            internal  control over financial  reporting that occurred during the
            small  business  issuer's  most  recent  fiscal  quarter  (the small
            business  issuer's  fourth  fiscal  quarter in the case of an annual
            report) that has  materially  affected,  or is reasonably  likely to
            materially affect, the small business issuer's internal control over
            financial reporting; and

5.    The  small  business  issuer's  other  certifying  officer(s)  and I  have
      disclosed,  based on our most recent  evaluation of internal  control over
      financial reporting, to the small business issuer's auditors and the audit
      committee of the small  business  issuer's  board of directors (or persons
      performing the equivalent functions):

      (a)   All significant  deficiencies and material  weaknesses in the design
            or operation of internal control over financial  reporting which are
            reasonably  likely to adversely  affect the small business  issuer's
            ability  to  record,   process,   summarize  and  report   financial
            information; and

      (b)   Any fraud,  whether or not  material,  that  involves  management or
            other  employees who have a significant  role in the small  business
            issuer's internal control over financial reporting.

Date:  November 12, 2004

                                    /s/Martha L. Long
                                    Martha L. Long
                                    Senior Vice President of ConCap  Equities,
                                    Inc.,  equivalent  of the chief  executive
                                    officer of the Partnership


<PAGE>



Exhibit 31.2


                                  CERTIFICATION


I, Stephen B. Waters, certify that:


1.    I have  reviewed  this  quarterly  report on Form  10-QSB of  Consolidated
      Capital Institutional Properties/3;

2.    Based on my knowledge,  this report does not contain any untrue  statement
      of a material fact or omit to state a material fact  necessary to make the
      statements made, in light of the circumstances under which such statements
      were made,  not  misleading  with  respect  to the period  covered by this
      report;

3.    Based on my  knowledge,  the  financial  statements,  and other  financial
      information  included  in this  report,  fairly  present  in all  material
      respects the financial condition,  results of operations and cash flows of
      the small  business  issuer as of, and for, the periods  presented in this
      report;

4.    The  small  business  issuer's  other  certifying  officer(s)  and  I  are
      responsible  for  establishing  and  maintaining  disclosure  controls and
      procedures (as defined in Exchange Act Rules  13a-15(e) and 15d-15(e)) for
      the small business issuer and have:

      (a)   Designed such  disclosure  controls and  procedures,  or caused such
            disclosure   controls  and  procedures  to  be  designed  under  our
            supervision,  to ensure that  material  information  relating to the
            small business issuer, including its consolidated  subsidiaries,  is
            made  known to us by  others  within  those  entities,  particularly
            during the period in which this report is being prepared;

      (b)   Evaluated  the   effectiveness   of  the  small  business   issuer's
            disclosure  controls and procedures and presented in this report our
            conclusions about the  effectiveness of the disclosure  controls and
            procedures, as of the end of the period covered by this report based
            on such evaluation; and

      (c)   Disclosed in this report any change in the small  business  issuer's
            internal  control over financial  reporting that occurred during the
            small  business  issuer's  most  recent  fiscal  quarter  (the small
            business  issuer's  fourth  fiscal  quarter in the case of an annual
            report) that has  materially  affected,  or is reasonably  likely to
            materially affect, the small business issuer's internal control over
            financial reporting; and

5.    The  small  business  issuer's  other  certifying  officer(s)  and I  have
      disclosed,  based on our most recent  evaluation of internal  control over
      financial reporting, to the small business issuer's auditors and the audit
      committee of the small  business  issuer's  board of directors (or persons
      performing the equivalent functions):

      (a)   All significant  deficiencies and material  weaknesses in the design
            or operation of internal control over financial  reporting which are
            reasonably  likely to adversely  affect the small business  issuer's
            ability  to  record,   process,   summarize  and  report   financial
            information; and

      (b)   Any fraud,  whether or not  material,  that  involves  management or
            other  employees who have a significant  role in the small  business
            issuer's internal control over financial reporting.

Date:  November 12, 2004

                                    /s/Stephen B. Waters
                                    Stephen B. Waters
                                    Vice President of ConCap  Equities,  Inc.,
                                    equivalent of the chief financial  officer
                                    of the Partnership


<PAGE>


Exhibit 32.1


                          Certification of CEO and CFO
                       Pursuant to 18 U.S.C. Section 1350,
                             As Adopted Pursuant to
                Section 906 of the Sarbanes-Oxley Act of 2002



In connection with the Quarterly  Report on Form 10-QSB of Consolidated  Capital
Institutional  Properties/3 (the "Partnership"),  for the quarterly period ended
September 30, 2004 as filed with the Securities  and Exchange  Commission on the
date hereof  (the  "Report"),  Martha L. Long,  as the  equivalent  of the Chief
Executive  Officer of the Partnership,  and Stephen B. Waters, as the equivalent
of the Chief  Financial  Officer  of the  Partnership,  each  hereby  certifies,
pursuant to 18 U.S.C.  Section 1350,  as adopted  pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002, that, to the best of his knowledge:

      (1)   The Report fully complies with the  requirements of Section 13(a) or
            15(d) of the Securities Exchange Act of 1934; and

      (2)   The  information  contained in the Report  fairly  presents,  in all
            material respects, the financial condition and results of operations
            of the Partnership.


                                           /s/Martha L. Long
                                    Name:  Martha L. Long
                                    Date:  November 12, 2004


                                           /s/Stephen B. Waters
                                    Name:  Stephen B. Waters
                                    Date:  November 12, 2004


This  certification is furnished with this Report pursuant to Section 906 of the
Sarbanes-Oxley  Act of 2002 and shall not be deemed filed by the Partnership for
purposes of Section 18 of the Securities Exchange Act of 1934, as amended.