August 14, 2000


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 June 30, 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-Q1.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                     June 30, 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



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

Item 1.  Financial Statements

         Balance Sheet - June 30, 2000 (Unaudited)                      1

         Statements of Operations (Unaudited) - For the Three
           Months Ended June 30, 2000 and 1999                          2

         Statement of Changes in Partners' Equity (Deficiency)
           (Unaudited) - For the Three Months Ended June 30, 2000       3

         Statements of Cash Flows (Unaudited) - For the
           Three Months Ended June 30, 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



<PAGE>


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

                                  BALANCE SHEET
                                  June 30, 2000
                                   (Unaudited)

<TABLE>
<CAPTION>

Assets

<S>                                                                                              <C>
Cash and cash equivalents                                                                        $     177,384
Marketable securities, at fair value                                                                   620,430
Investments in Local Limited Partnerships, net (Note 1)                                             12,868,583
Interest receivable                                                                                     10,286
Note receivable                                                                                      1,328,773
                                                                                                 -------------

   Total Assets                                                                                  $  15,005,456
                                                                                                 =============

Liabilities and Partners' Equity

Accounts payable to affiliates                                                                   $   2,535,968
Accounts payable and accrued expenses                                                                  302,681

Note payable, affiliate                                                                                514,968
   Total Liabilities                                                                                 3,353,617

General, Initial and Investor Limited Partners' Equity                                              11,651,773
Net unrealized gains on marketable securities                                                               66
   Total Partners' Equity                                                                           11,651,839
                                                                                                 -------------
   Total Liabilities and Partners' Equity                                                        $  15,005,456
                                                                                                 =============
</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 Months Ended June 30, 2000 and 1999
                                   (Unaudited)

<TABLE>
<CAPTION>


                                                                                                1999
                                                                            2000             (Restated)
Revenue:
<S>                                                                  <C>                    <C>
    Investment                                                       $      10,768          $     11,005
    Recovery of bad debt                                                    10,955                80,639
    Other                                                                   37,112                24,686
                                                                     -------------          ------------
      Total Revenue                                                         58,835               116,330
                                                                     -------------          ------------

Expenses:
    Asset management fees, related party                                    90,545                91,815
    General and administrative (includes
      reimbursements to affiliates of $74,325 and
      $36,662 in 2000 and 1999, respectively)                              117,742               103,442
    Interest                                                                 1,500                 1,500
    Amortization                                                            23,651                32,979
                                                                     -------------          ------------
      Total Expenses                                                       233,438               229,736
                                                                     -------------          ------------

Loss before equity in losses of Local Limited
    Partnerships and loss on liquidation of interest in
    Local Limited Partnership                                             (174,603)             (113,406)

Equity in losses of Local Limited Partnerships (Note 1)                   (405,138)             (702,995)

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

Net Loss                                                             $    (579,741)         $ (1,010,284)
                                                                     =============          ============

Net Loss allocated:
    To General Partners                                              $      (5,797)         $    (10,103)
    To Limited Partners                                                   (573,944)           (1,000,181)
                                                                     -------------          ------------
                                                                     $    (579,741)         $ (1,010,284)
                                                                     =============          ============
Net Loss per Limited Partnership Unit
    (100,000 Units)                                                  $      (5.74)          $     (10.00)
                                                                     ============           ============

</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 Three Months Ended June 30, 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                         -             -                  -         1,065           1,065
   Net Loss                                (5,797)            -           (573,944)            -        (579,741)
                                      -----------     ---------      -------------   -----------   -------------
Comprehensive Income (Loss)                (5,797)            -           (573,944)        1,065        (578,676)
                                      -----------     ---------      -------------   -----------   -------------

Balance at June 30, 2000              $  (759,326)    $   5,000      $  12,406,099   $        66   $  11,651,839
                                      ===========     =========      =============   ===========   =============
</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 Three Months Ended June 30, 2000 and 1999
                                   (Unaudited)

<TABLE>
<CAPTION>


                                                                                                   1999
                                                                          2000                  (Restated)

<S>                                                                   <C>                      <C>
Net cash used for operating activities                                $    (25,922)            $    (88,793)

Net cash provided by investing activities                                   30,513                  171,250
                                                                      ------------             ------------

Net increase in cash and cash equivalents                                    4,591                   82,457

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

Cash and cash equivalents, ending                                     $    177,384             $    421,450
                                                                      ============             ============

Supplemental Disclosure:
     Cash paid for interest                                           $      1,500             $      1,500
                                                                      ============             ============
</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 March 31, 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 June
30, 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                                                      $  68,111,077


Cumulative equity in losses of Local Limited Partnerships
   (excluding cumulative unrecognized losses of $53,434,646)                            (52,320,236)


Cumulative cash distributions received from
   Local Limited Partnerships                                                            (3,108,436)
                                                                                       ------------
Investments in Local Limited Partnerships before adjustment                              12,682,405


Excess of investment cost over the underlying net assets acquired:

   Acquisition fees and expenses                                                          6,220,170

   Accumulated amortization of acquisition fees and expenses                             (1,654,821)
                                                                                      -------------

Investments in Local Limited Partnerships                                                17,247,754


Reserve for valuation of investments in
   Local Limited Partnerships                                                            (4,379,171)
                                                                                      -------------
                                                                                      $  12,868,583
                                                                                      =============
</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 three months ended June 30, 2000 is  $1,762,008.  For the three months ended
June 30, 2000, the Partnership has not recognized $1,385,852 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  $28,982 of previously  unrecognized
losses in the three months ended June 30, 2000.

2.   Liquidation of Interests in Local Limited Partnerships

For  financial  reporting  purposes,  loss on  liquidation  of interest in Local
Limited Partnership of $193,883 was recognized in the period ended June 30, 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 an increase in cash and cash  equivalents of $4,591 for the
three months ended June 30, 2000. This increase is attributable to proceeds from
sales 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%.  Funds  approximating  $196,000  have been  withdrawn  from the
Reserves to pay legal and other costs. Additionally,  professional fees relating
to various property issues totaling approximately $1,802,000 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  $915,000  (net of
paydowns) to purchase the mortgage of a Local Limited Partnership.  To date, the
Partnership  has used  approximately  $2,243,000 of operating funds to replenish
Reserves. At June 30, 2000, approximately $646,000 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  $2,000,000 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 June 30, 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 three months ended June 30, 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 months ended June 30, 2000,  Partnership  operations resulted in a
net loss of $579,741 as compared to a net loss of $1,010,284 for the same period
in 1999.  The  decrease in net loss is primarily  attributable  to a decrease in
equity in losses. This decrease in equity in losses is primarily attributable to
a decrease in property operating  expenses,  interest and depreciation  expenses
due to the transfer of one of the Local Limited Partnerships in 1999.

Property Discussions

Boulevard Commons II and IIA, located in Chicago,  Illinois, which both have the
same Local General Partner have been experiencing  operating deficits.  Expenses
have increased due to increasing maintenance, capital needs, security issues and
high  turnover  at the  property.  The  Managing  General  Partner  has  been in
negotiations  with the  Local  General  Partner  to  develop  a plan  that  will
ultimately transfer ownership of the property to the Local General Partner.  The
plan includes provisions to minimize the risk of recapture.

Effective  January 1, 1999, the  Partnership  redeemed its interest in Boulevard
Commons II. The  redemption  of the  Partnership's  interest  avoided a possible
recapture  event.  However,  the redemption will cause investors to have minimal
taxable gain or loss for the 1999 tax year,  depending upon the tax basis of the
property.

Effective January 2, 1999, the Managing General Partner consummated the transfer
of 49.5% of the  Partnership's  capital and profits in Boulevard  Commons IIA to
the  Local  General  Partner.  The  Managing  General  Partner  has the right to
transfer  the  Partnership's  remaining  interest  in the  property to the Local
General Partner any time after one year has elapsed. The Partnership will retain
its full share of tax credits until such time as the  remaining  interest is put
to the Local General  Partner.  In addition,  the Local General  Partner has the
right to call the remaining interest after the tax credit period has expired.

Breckenridge  Creste,  located in Duluth,  Georgia,  is  experiencing  operating
deficits  as a result of higher  vacancies  during the  summer of 1998.  However
occupancy  for the last two quarters  have  increased to the mid 90% range.  The
Managing  General  Partner  is  working  with  property   management  to  review
completion of needed capital  improvements  and to review the revised  marketing
strategy. In addition,  the Managing General Partner is working closely with the
Local General Partner to develop a plan that will ultimately  transfer ownership
of the property.
The plan includes provisions to minimize the risk of recapture.

Columbia  Townhouses,   located  in  Burlington,  Iowa,  has  been  experiencing
operating  deficits due to consistent  increases in vacancy.  As of December 31,
1999,  occupancy  was 100%.  The Local  General  Partner,  the Managing  General
Partner and management agent have been working together to review the marketing,
security and  long-term  strategy  for this  property.  In  addition,  the Local
General  Partner is in  negotiations  with the lender about the  possibility  of
refinancing  the  mortgage.  Effective  September  1999,  the City of Burlington
acquired,  through  eminent  domain,  one of the buildings  comprising  Columbia
Townhomes.  The city acquired the building for the purpose of allowing access to
a  contemplated  Walgreens  development.  For tax  purposes,  the  taking of one
building  by  eminent   domain  will  result  in  both  Section  1231  Gain  and
cancellation  of  indebtedness  income.  In  addition,  there will be tax credit
recapture of  approximately  $1.40 per unit for the 1999 tax year.  The Managing
General  Partner  continues to work with the Local General Partner in monitoring
this property and the outcome of the refinancing.

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.  The
Partnership's  ability to retain its interest in the property will depend on the
ability of the Local General Partner and  Partnership  affiliates to negotiate a
satisfactory workout agreement


<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)

with the new lender.  However,  if the  negotiations  are not successful,  it is
possible  that the  Partnership  will not be able to retain its  interest in the
property  through 2000. A  foreclosure  would result in recapture of credits for
investors,  the  allocation  of taxable  income to the  Partnership  and loss of
future benefits associated with this property. Occupancy for this property as of
December 31, 1999 was 91%.

As previously reported, a refinancing  application was submitted for Kyle Hotel,
located in Temple,  Texas,  in December  1997.  The  potential  lender  needs to
approve  several issues before the  application  will be approved.  The Managing
General  Partner is still  monitoring the progress of the  application  approval
process.

Pleasant  Plaza,  located in Malden,  Massachusetts,  as well as 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 payments
were declared in default by MHFA. The Managing General Partner joined a group of
SHARP property  owners called the  responsible  SHARP Owners,  Inc. (RSO) and is
negotiating with MHFA and the Local General Partners of Pleasant Plaza and South
Holyoke 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,  it is likely that both
properties  will default on their mortgage  obligations  in the near future.  On
September 16, 1998, the Partnership 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.

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 will be 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.  At this  point,  deficits  continue  to be funded by the  Management
Agent.  The  viability of the  properties  depends upon funding  deficits  until
receipt of the grants. Both properties  currently carry cash flow mortgages with
New York State.  The Managing  General Partner is working closely with the Local
General Partner to develop a plan that will address these concerns.

Willow Lake,  located in Kansas, is experiencing  operating  difficulties due to
soft rental market  conditions.  As previously  reported,  the Managing  General
Partner negotiated a nine year extension to the original workout agreement.  The
nine-year  extension  will expire on May 31,  2001.  In  addition,  the Managing
General Partner is working with the Local General Partner to negotiate permanent
debt service relief, increase rents and monitor property expenses.

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 June 30, 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: August 14, 2000             BOSTON FINANCIAL QUALIFIED HOUSING TAX
                                   CREDITS L.P. III

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




                                          /s/Randolph G. Hawthorne
                                          Randolph G. Hawthorne
                                          Managing Director, Vice President and
                                          Chief Operating Officer



<PAGE>