February 14, 2001




Securities and Exchange Commission
450 Fifth Street, NW

Washington, DC.  20549


Re:    Boston Financial Qualified Housing Tax Credits L.P. III
       Report on Form 10-QSB for Quarter Ended December 31, 2000
       File Number 01-18462


Dear Sir/Madam:

Pursuant to the requirements of Section 15(d) of the Securities  Exchange Act of
1934, filed herewith is one copy of subject report.

Very truly yours,




/s/Stephen Guilmette

Stephen Guilmette
Assistant Controller

QH3-Q3.DOC


<PAGE>


                                  UNITED STATES

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                   FORM 10-QSB

(Mark One)

[ X ]     QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
          EXCHANGE ACT OF 1934

For the quarterly period ended              December 31, 2000
                                 ---------------------------------------


                                                         OR

[   ]     TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
          EXCHANGE ACT OF 1934

For the transition period from                       to
                               -------------------       ----------------------


                         Commission file number 01-18462

              Boston Financial Qualified Housing Tax Credits L.P. III
------------------------------------------------------------------------------
                 (Exact name of registrant as specified in its charter)


                 Delaware                                04-3032106
-------------------------------------------------------------------------------
      (State or other jurisdiction of       (I.R.S. Employer Identification No.)
       incorporation or organization)


   101 Arch Street, Boston, Massachusetts                 02110-1106
--------------------------------------------   --------------------------------
  (Address of principal executive offices)                (Zip Code)


Registrant's telephone number, including area code            (617) 439-3911
                                                    ---------------------------

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 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 .


<PAGE>


             BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. III
                             (A Limited Partnership)

                                TABLE OF CONTENTS
<TABLE>
<CAPTION>

PART I - FINANCIAL INFORMATION                                                              Page No.
------------------------------                                                              --------

Item 1.  Financial Statements

<S>                                                                                           <C>
         Balance Sheet - December 31, 2000 (Unaudited)                                        1

         Statements of Operations (Unaudited) - For the Three and Nine
           Months Ended December 31, 2000 and 1999                                            2

         Statement of Changes in Partners' Equity (Deficiency)
           (Unaudited) - For the Nine Months Ended December 31, 2000                          3

         Statements of Cash Flows (Unaudited) - For the
           Nine Months Ended December 31, 2000 and 1999                                       4

         Notes to the Financial Statements (Unaudited)                                        5

Item 2.  Management's Discussion and Analysis of Financial
           Condition and Results of Operations                                                7

PART II - OTHER INFORMATION

Items 1-6                                                                                    10

SIGNATURE                                                                                    11
</TABLE>

<PAGE>


             BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. III
                             (A Limited Partnership)

                                  BALANCE SHEET
                                December 31, 2000
                                   (Unaudited)
<TABLE>
<CAPTION>

Assets

<S>                                                                                              <C>
Cash and cash equivalents                                                                        $     246,587
Marketable securities, at fair value                                                                   674,618
Interest receivable from affiliate                                                                       6,122
Investments in Local Limited Partnerships, net  (Note 1)                                            11,920,694
Interest receivable                                                                                      9,706
Note receivable                                                                                      1,316,973
                                                                                                 -------------
     Total Assets                                                                                $  14,174,700
                                                                                                 =============

Liabilities and Partners' Equity

Accounts payable to affiliate                                                                    $   3,085,711
Accounts payable and accrued expenses                                                                  318,466
Note payable, affiliate                                                                                514,968
                                                                                                 -------------
     Total Liabilities                                                                               3,919,145
                                                                                                 -------------

General, Initial and Investor Limited Partners' Equity                                              10,250,010
Net unrealized gains on marketable securities                                                            5,545
                                                                                                 -------------
     Total Partners' Equity                                                                         10,255,555
                                                                                                 -------------
     Total Liabilities and Partners' Equity                                                      $  14,174,700
                                                                                                 =============
</TABLE>

The  accompanying  notes are an  integral  part of these financial statements.

<PAGE>


             BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. III
                             (A Limited Partnership)

                               STATEMENTS OF OPERATIONS
         For the Three and Nine Months Ended December 31, 2000 and 1999
                                   (Unaudited)

<TABLE>
<CAPTION>

                                                        Three Months Ended                  Nine Months Ended
                                                                    December 31,                      December 31,
                                                  December 31,          1999          December 31,        1999
                                                      2000           (Restated)           2000         (Restated)
                                                 --------------   --------------   --------------   --------------
Revenue:
<S>                                               <C>              <C>                     <C>       <C>
   Investment                                     $     12,169     $       8,620           34,979    $       29,380
   Other                                                39,007           136,404           94,969           186,397
                                                  ------------     -------------     ------------    --------------
     Total Revenue                                      51,176           145,024          129,948           215,777
                                                  ------------     -------------     ------------    --------------

Expenses:
   Asset management fees, related party                 95,938            95,409          286,004           284,764
   General and administrative (includes
     reimbursements to affiliates of $428,609
     and $104,186 in 2000 and 1999, respectively)      413,252           116,196          633,163           286,622
   Provision for valuation of investment in Local
     Limited Partnership                                     -           138,000                -         1,633,040
   Interest                                              2,000             1,500            4,500             4,500
   Amortization                                         15,685            19,471           60,347            87,342
                                                  ------------     -------------     ------------    --------------
     Total Expenses                                    526,875           370,576          984,014         2,296,268
                                                  ------------     -------------     ------------    --------------

Loss before equity in losses of Local
   Limited Partnerships                               (475,699)         (225,552)        (854,066)       (2,080,491)

Equity in losses of Local Limited Partnerships
   (Note 1)                                           (179,468)         (867,964)      (1,127,438)       (2,227,622)

Loss on liquidation of interest in Local Limited
   Partnership (Note 2)                                      -                 -                -          (193,883)
                                                  ------------     -------------     ------------    --------------

Net Loss                                          $   (655,167)    $  (1,093,516)    $ (1,981,504)   $   (4,501,996)
                                                  ============     =============     ============    ==============

Net Loss allocated:
   To General Partners                            $     (6,552)    $     (10,935)    $    (19,815)   $      (45,020)
   To Limited Partners                                (648,615)       (1,082,581)      (1,961,689)       (4,456,976)
                                                  ------------     -------------     ------------    --------------
                                                  $   (655,167)    $  (1,093,516)    $ (1,981,504)   $   (4,501,996)
                                                  ============     =============     ============    ==============

Net Loss per Limited Partnership Unit
   (100,000 Units)                                $      (6.49)    $      (10.83)    $     (19.62)   $       (44.57)
                                                  ============     =============     ============    ==============

</TABLE>

The  accompanying  notes are an  integral  part of these financial statements.
<PAGE>
             BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. III
                             (A Limited Partnership)

              STATEMENT OF CHANGES IN PARTNERS' EQUITY (DEFICIENCY)
                   For the Nine Months Ended December 31, 2000
                                  (Unaudited)
<TABLE>
<CAPTION>

                                                                                         Net
                                                       Initial        Investor       Unrealized
                                        General         Limited         Limited        Gains
                                       Partners        Partners        Partners       (Losses)         Total

<S>                                   <C>             <C>            <C>             <C>           <C>
Balance at March 31, 2000             $  (753,529)    $   5,000      $  12,980,043   $      (999)  $  12,230,515
                                      -----------     ---------      -------------   -----------   -------------

Comprehensive Income (Loss):
   Change in net unrealized losses
     on marketable securities
     available for sale                         -             -                  -         6,544           6,544
   Net Loss                               (19,815)            -         (1,961,689)            -      (1,981,504)
                                      -----------     ---------      -------------   -----------   -------------
Comprehensive Income (Loss)               (19,815)            -         (1,961,689)        6,544      (1,974,960)
                                      -----------     ---------      -------------   -----------   -------------

Balance at December 31, 2000          $  (773,344)    $   5,000      $  11,018,354   $     5,545   $  10,255,555
                                      ===========     =========      =============   ===========   =============
</TABLE>

The  accompanying  notes are an  integral  part of these financial statements.
<PAGE>
             BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. III
                             (A Limited Partnership)

                            STATEMENTS OF CASH FLOWS
              For the Nine Months Ended December 31, 2000 and 1999
                                   (Unaudited)
<TABLE>
<CAPTION>

                                                                                                       1999
                                                                                   2000             (Restated)
                                                                             ---------------     -------------
<S>                                                                          <C>                 <C>
Net cash used for operating activities                                       $      (114,942)    $     (153,348)

Net cash provided by (used for) investing activities                                 188,736            (62,903)
                                                                             ---------------     --------------

Net increase (decrease) in cash and cash equivalents                                  73,794           (216,251)

Cash and cash equivalents, beginning                                                 172,793            338,993
                                                                             ---------------     --------------

Cash and cash equivalents, ending                                            $       246,587     $      122,742
                                                                             ===============     ==============

Supplemental Disclosure:
    Cash paid for interest                                                   $         4,500     $        4,500
                                                                             ===============     ==============
</TABLE>

The  accompanying  notes are an  integral  part of these financial statements.

<PAGE>


             BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. III
                             (A Limited Partnership)

                        Notes to the Financial Statements
                                   (Unaudited)

The  unaudited  financial  statements  presented  herein  have been  prepared in
accordance  with the  instructions  to Form 10-QSB and do not include all of the
information  and note  disclosures  required by  generally  accepted  accounting
principles.  These  statements  should be read in conjunction with the financial
statements and notes thereto included with the Partnership's Form 10-KSB for the
year ended  March 31,  2000.  In the  opinion  of  management,  these  financial
statements  include  all  adjustments,   consisting  only  of  normal  recurring
adjustments,  necessary to present fairly the Partnership's  financial  position
and results of  operations.  The results of operations for the period may not be
indicative of the results to be expected for the year.

The Managing  General Partner has elected to report results of the Local Limited
Partnerships  on a 90 day lag  basis,  because  the Local  Limited  Partnerships
report  their  results on a calendar  year  basis.  Accordingly,  the  financial
information  of  the  Local  Limited   Partnerships  that  is  included  in  the
accompanying financial statements is as of September 30, 2000 and 1999.

1.   Investments in Local Limited Partnerships

The  Partnership  uses the equity method to account for its limited  partnership
interests  in  fifty-two  Local  Limited  Partnerships  which  own  and  operate
multi-family  housing  complexes,  most of which  are  government-assisted.  The
Partnership,  as Investor  Limited Partner pursuant to the various Local Limited
Partnership   Agreements  which  contain  certain   operating  and  distribution
restrictions,  has acquired a 99% interest in the profits,  losses,  tax credits
and cash flows from operations of each of the Local Limited Partnerships, except
for Granite,  Colony  Apartments,  Harbour View,  Willow Lake and  Breckenridge,
where the  Partnership's  ownership  interest is 97%, 49%, 48.96%,  98% and 98%,
respectively.  Upon dissolution,  proceeds will be distributed according to each
respective partnership agreement.

The  following is a summary of  Investments  in Local  Limited  Partnerships  at
December 31, 2000:
<TABLE>
<CAPTION>

Capital  contributions  and  advances  paid to Local  Limited  Partnerships  and
   purchase price paid to withdrawing partners
<S>                                                                                            <C>
   of Local Limited Partnerships                                                               $  68,105,358

Cumulative equity in losses of Local Limited Partnerships
   (excluding cumulative unrecognized losses of $55,876,748)                                     (53,042,536)

Cumulative cash distributions received from
   Local Limited Partnerships                                                                     (3,297,329)
                                                                                               -------------
Investments in Local Limited Partnerships before adjustment                                       11,765,493

Excess of investment cost over the underlying net assets acquired:
   Acquisition fees and expenses                                                                   6,220,170

   Accumulated amortization of acquisition fees and expenses                                      (1,691,517)
                                                                                               -------------
Investments in Local Limited Partnerships before reserve for valuation                            16,294,146

Reserve for valuation of investments in
   Local Limited Partnerships                                                                     (4,373,452)
                                                                                               -------------
Investments in Local Limited Partnerships                                                      $  11,920,694
                                                                                               =============

</TABLE>

<PAGE>
             BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. III
                             (A Limited Partnership)

                  Notes to the Financial Statements (continued)
                                   (Unaudited)

1.   Investments in Local Limited Partnerships (continued)
     ----------------------------------------------------

The Partnership's share of the net losses of the Local Limited  Partnerships for
the nine months ended December 31, 2000 is $4,926,410. For the nine months ended
December 31, 2000, the  Partnership  has not recognized  $3,801,429 of equity in
losses relating to certain Local Limited Partnerships in which cumulative equity
in losses  and  distributions  exceeded  its total  investments  in these  Local
Limited   Partnerships.   The  Partnership   recognized   $2,457  of  previously
unrecognized losses in the nine months ended December 31, 2000.

2.   Liquidation of Interest in Local Limited Partnership

For  financial  reporting  purposes,  loss on  liquidation  of interest in Local
Limited  Partnership of $193,883 was recognized in the period ended December 31,
1999 as a result of the redemption of Boulevard Commons II.


<PAGE>

             BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. III
                             (A Limited Partnership)

                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Certain matters  discussed herein constitute  forward-looking  statements within
the  meaning  of the  Private  Securities  Litigation  Reform  Act of 1995.  The
Partnership  intends such  forward-looking  statements to be covered by the safe
harbor provisions for forward-looking statements and is including this statement
for  purposes of  complying  with these safe  harbor  provisions.  Although  the
Partnership  believes the  forward-looking  statements  are based on  reasonable
assumptions,  the Partnership can give no assurance that their expectations will
be attained. Actual results and timing of certain events could differ materially
from those projected in or contemplated by the forward-looking statements due to
a number of factors,  including,  without limitation,  general economic and real
estate conditions and interest rates.

Liquidity and Capital Resources

The Partnership  had a increase in cash and cash  equivalents of $73,794 for the
nine months ended December 31, 2000. This increase is primarily  attributable to
sales and maturities of marketable securities,  cash distributions received from
Local Limited  Partnerships  and repayment of notes  receivable  from affiliate.
These increases are partially  offset by purchases of marketable  securities and
cash used for operations.

The Managing  General Partner  initially  designated 3% of the Gross Proceeds as
Reserves.  The Reserves were  established to be used for working  capital of the
Partnership  and  contingencies  related  to  the  ownership  of  Local  Limited
Partnership  interests.  The Managing  General  Partner may increase or decrease
such Reserves from time to time, as it deems appropriate.  During the year ended
March 31, 1993,  the Managing  General  Partner  decided to increase the Reserve
level to 3.75%.  Professional  fees relating to various property issues totaling
approximately $2,078,000 have been paid from Reserves. To date, Reserve funds in
the  amount of  approximately  $434,000  have also been used to make  additional
capital contributions to three Local Limited  Partnerships,  and the Partnership
has paid approximately  $875,000 (net of paydowns) to purchase the mortgage of a
Local Limited  Partnership.  To date,  the  Partnership  has used  approximately
$2,071,000  of  operating  funds to  replenish  Reserves.  At December 31, 2000,
approximately  $440,000 of cash, cash equivalents and marketable securities have
been designated as Reserves.  Reserves may be used to fund Partnership operating
deficits, if the Managing General Partner deems funding appropriate. If Reserves
are not adequate to cover the  Partnership's  operations,  the Partnership  will
seek other  financing  sources  including,  but not limited to, the  deferral of
Asset  Management  Fees paid to an affiliate of the Managing  General Partner or
working with Local Limited Partnerships to increase cash distributions.

In the  event a Local  Limited  Partnership  encounters  operating  difficulties
requiring  additional funds, the Partnership might deem it in its best interests
to provide  such funds,  voluntarily,  in order to protect its  investment.  The
Partnership has advanced approximately  $1,994,000 to Local Limited Partnerships
to fund operating deficits.

Since the  Partnership  invests as a limited  partner,  the  Partnership  has no
contractual  duty to  provide  additional  funds to Local  Limited  Partnerships
beyond its specified investment. Thus, at December 31, 2000, the Partnership had
no contractual or other  obligation to any Local Limited  Partnership  which had
not been paid or provided for.

Cash Distributions

No cash distributions were made during the nine months ended December 31, 2000.


<PAGE>

             BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. III
                             (A Limited Partnership)

                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
            FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)

Results of Operations

For the three and nine months ended  December 31, 2000,  Partnership  operations
resulted in net losses of $655,167 and  $1,981,504,  respectively as compared to
net losses of $1,093,516 and  $4,501,996,  respectively  for the same periods in
2000.  These decreases in net losses are primarily  attributable to decreases in
provisions  for  valuation of  investments  in Local  Limited  Partnerships  and
decreases in other  income.  Provisions  for valuation of  investments  in Local
Limited  Partnerships  was  incurred  during  the  three and nine  months  ended
December  31,  2000  due  to the  reserve  of  advances  to  the  Local  Limited
Partnerships.  The  decrease  in other  revenue is  primarily  due the timing of
distribution from properties.  The decrease in net losses for the three and nine
months ended December 31, 2000 is also  attributable  to a decrease in equity in
losses of Local Limited  Partnerships due to an increase in unrecognized losses.
The  decrease is partially  offset by an increase in general and  administrative
expenses. The increase in general and administrative expense is primarily due to
increased  charges from an affiliate of the General  Partner for operational and
administrative  expenses  necessary  for the operation of the  Partnership.  The
increased  charges  pertained to higher  levels of staffing and salary levels at
the  affiliate  in  addition  to  changes  in  the  affiliate's   allocation  of
operational and  administrative  expenses to more accurately  reflect the actual
cost of services provided to the Partnership.

Property Discussions

Boulevard  Commons IIA,  located in Chicago,  Illinois  continues to generate an
operating  deficit.  Expense  levels at the property are high due to  increasing
maintenance,  capital needs,  security  issues and high  turnover.  The Managing
General  Partner  developed  a plan with the Local  General  Partner to transfer
ownership  of the  property  to the Local  General  Partner.  The plan  includes
provisions to minimize the risk of recapture.  The Partnership redeemed 49.5% of
its interest in Boulevard  Commons IIA in both 1999 and 2000.  The redemption of
the  Partnership's  remaining 1% interest will occur in 2001.  The redemption of
the  Partnership's  interest avoided a possible  recapture event.  However,  the
redemption may cause investors to have minimal taxable gain or loss for the 2000
tax year, depending upon the tax basis of the property.

Although  operations  at  Breckenridge  Creste  (Duluth,  Georgia) have slightly
improved over the past year,  the property  operated  below  break-even  for the
period  ending   December  31,  2000  primarily  due  to   significant   capital
improvements made at the property during the year. As previously  reported,  the
Managing  General  Partner  continues  to work  closely  with the Local  General
Partner and the lender to develop a plan that will ultimately transfer ownership
of the property. The plan includes provisions to minimize the risk of recapture.

As previously  reported,  Harbour View,  located in Staten Island, New York, had
defaulted on its HUD-insured loan. Subsequently, the lender assigned the loan to
HUD. In  December  1996,  the  mortgage  was sold at auction to an  unaffiliated
institutional  buyer.  The Managing  General  Partner and Local General  Partner
continue to participate in workout discussions with the new lender.  However, we
expect  that the  Partnership  will not be able to retain  its  interest  in the
property  and that a  foreclosure  will occur in the first  quarter  of 2001.  A
foreclosure will result in recapture of credits for investors, the allocation of
taxable income to the Partnership  and loss of future  benefits  associated with
this property.

As previously reported,  Pleasant Plaza, located in Malden,  Massachusetts,  and
South Holyoke,  located in Holyoke,  Massachusetts,  receive a subsidy under the
State Housing  Assistance Rental Program (SHARP),  which is an important part of
their annual income. As originally conceived, the SHARP subsidy was scheduled to
decline over time to match increases in net operating income. However, increases
in net  operating  income  failed  to keep pace  with the  decline  in the SHARP
subsidy.  Many of the  SHARP  properties  (including  Pleasant  Plaza  and South
Holyoke) structured  workouts that included additional  subsidies in the form of
Operating  Deficit Loans (ODL's).  Effective  October 1, 1997, the Massachusetts
Housing  Finance Agency (MHFA),  which  provided the SHARP  subsidies,  withdrew
funding of the  Operating  Deficit  Loans.  Properties  unable to make full debt
service payment.

<PAGE>
          BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. III
                             (A Limited Partnership)

                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
            FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)

Property Discussions (continued)
-------------------------------

were declared in default by MHFA. The Managing  General  Partner,  separate from
its responsibilities to Pleasant Plaza or South Holyoke, joined a group of SHARP
property  owners  called  the  Responsible  SHARP  Owners,  Inc.  (RSO)  and  is
negotiating  with MHFA to find a solution to the problems  that will result from
the withdrawn subsidies. Given existing operating deficits and the dependence on
these  subsidies by Pleasant Plaza and South Holyoke House,  both properties are
in default on their mortgage obligations. On September 16, 1998, the Partnership
also joined with the RSO and about 20 other SHARP property owners and filed suit
against the MHFA (Mass. Sup. Court Civil Action  #98-4720).  Among other things,
the suit seeks to enforce the MHFA's previous financial commitments to the SHARP
properties.  The lawsuit is complex and in its early stages,  so no predications
can be made at  this  time as to the  ultimate  outcome.  In the  meantime,  the
Managing General Partner intends to continue to participate in the RSO's efforts
to negotiate a resolution of this matter with MHFA.  Pleasant Plaza was included
in a "Dilution Pool" composed of  approximately  20 of the 77 SHARP  properties.
MHFA made an offering to Wall Street that  consisted  primarily  of an effort to
sell the tax losses  generated  by the 20  partnerships,  assuming  restructured
mortgages.  As a result, a new limited partner was admitted to the local limited
partnership that owns Pleasant Plaza and the Fund's interest in the property was
diluted  to 4%.  The Fund may  receive a pro-rata  share of the  property's  tax
credits during 2000, the final year in which the property generates tax credits.
The Fund has the right to put the Fund's  remaining  interest in the property to
the Local General Partner in November 2001,  one-year from the effective date of
admitting the new investor limited partner.

Waterfront and Shoreline,  both located in Buffalo,  New York,  continue to have
operating deficits as a result of a soft rental market, deferred maintenance and
security  issues.  Shoreline  was approved  for the 1998 New Approach  Anti-Drug
Grant.  The  Grant was  issued  in  February  1999 and is used to  support  drug
prevention,  educational  programs and increased  security on the property.  The
Management Agent has applied for consideration for a Project Improvement Program
(PIP)  and  applied  for a Safe  Neighborhood  Grant  for  both  Waterfront  and
Shoreline.  Currently, the Management Agent is not funding deficits and payables
have increased.  The Managing  General Partner is working closely with the Local
General Partner to develop a plan that will address these issues.

The Partnership has implemented  policies and practices for assessing  potential
impairment of its investments in Local Limited Partnerships. The investments are
analyzed by real estate experts to determine if impairment  indicators exist. If
so,  the  carrying  value is  compared  to the  undiscounted  future  cash flows
expected to be derived from the asset.  If there is a significant  impairment in
carrying  value,  a  provision  to write  down the asset to fair  value  will be
recorded in the Partnership's financial statements.


<PAGE>
             BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. III
                             (A Limited Partnership)


PART II       OTHER INFORMATION

Items 1-5     Not applicable

Item 6        Exhibits and reports on Form 8-K

                (a)Exhibits - None

                (b)Reports  on Form 8-K - No  reports  on Form  8-K  were  filed
                   during the quarter ended December 31, 2000.


<PAGE>
             BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. III
                             (A Limited Partnership)

                                    SIGNATURE

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned, thereunto duly authorized.

DATED:    February 14, 2001               BOSTON FINANCIAL QUALIFIED HOUSING TAX
                                          CREDITS L.P. III

                                          By:  Arch Street III, Inc.,
                                          its Managing General Partner

                                          /s/Jenny Netzer
                                          -------------------------------------
                                          Jenny Netzer
                                          Managing Director and President


<PAGE>