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                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                  FORM 10-QSB/A


(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, 2007
                             -------------------------------------

                                                         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 .


Indicate by check mark whether the registrant is a shell company (as defined in
Rule 12 b-2 of the Exchange Act).
                                Yes No X .


<PAGE>


                                EXPLANATORY NOTE


This Amendment No. 1 to Form 10-QSB amends the Partnership's report on Form
10-QSB filed with the U.S. Securities and Exchange Commission for the period
ended June 30, 2007. The purpose of this Amendment No. 1 to Form 10-QSB is only
to amend the disclosure contained in Item 3. With the exception of this
revision, no other changes have been made to our Form 10-QSB for the period
ended June 30, 2007.


<PAGE>



                             CONTROLS AND PROCEDURES


(a) Evaluation of Disclosure Controls and Procedures.

We conducted an evaluation of the effectiveness of the design and operation of
our disclosure controls and procedures, as defined in Rules 13a-15(e) and
15d-15(e) under the Securities Exchange Act of 1934, as amended, or the Exchange
Act, as of June 30, 200, to ensure that information required to be disclosed by
us in the reports filed or submitted by us under the Exchange Act is recorded,
processed, summarized and reported, within the time periods specified in the
Securities Exchange Commission's rules and forms, including to ensure that
information required to be disclosed by us in the reports filed or submitted by
us under the Exchange Act is accumulated and communicated to management to allow
timely decisions regarding required disclosure. Based on that evaluation,
management has concluded that as of June 30, 2007, our disclosure controls and
procedures were not effective at the reasonable assurance level due to the
material weakness described below.


A material weakness is a control deficiency, or a combination of control
deficiencies, that results in more than a remote likelihood that a material
misstatement of annual or interim financial statements will not be prevented or
detected. Management identified the following weaknesses in the Partnership's
disclosure controls that existed as of June 30, 2007:

      o Controls over Monitoring of Contractual Agreements: The Partnership did
        not maintain effective monitoring controls over the contractual
        agreements that were entered into on its behalf by the General Partner.
        Specifically, during the period from December 2006 to early February
        2007, the Partnership's cash was invested in below market interest
        bearing accounts as part of a banking arrangement which resulted in
        financial benefits to affiliates of the General Partners. Management
        determined that this arrangement was inconsistent with the terms of the
        Partnership Agreement of the Partnership.

      o  Controls over Recording Equity in Income/Losses: The Partnership did
         not maintain effective controls over the calculation of the
         Partnership's equity in income/losses from investees. Specifically,
         certain non-recurring items were recorded in the wrong period due to an
         ineffective review of the investees' unaudited quarterly financial data
         and audited annual financial statements utilized to calculate equity in
         income/losses from investees. The control deficiency resulted in
         adjustments to the Partnership's interim and annual financial
         statements for the year ended March 31, 2007.

The Partnership considered these matters in connection with the closing and
preparation of the financial statements for the period ended June 30, 2007, and
determined that the financial statements for this period were not materially
affected by these control weaknesses.

(b) Changes in Internal Control over Financial Reporting.

During the first and second quarters of fiscal year 2008, the Partnership
completed implementation of the following control improvements to remediate the
material weaknesses existing as of March 31, 2007:

Controls over Monitoring of Contractual Agreements

    o As part of the remediation plan, management initiated changes in processes
      and controls including:

          o restricting authority to the corporate treasury department
            over the opening, closing, investment and movement of cash
            accounts in the quarter ended June 30, 2007;
          o the engagement of the corporate legal department to perform
            due diligence on new agreements to assure compliance with
            existing agreements in the quarter ended June 30, 2007;
          o the refund of lost interest in August, 2007; and
          o the development and implementation of a fiduciary and
            conflicts policy that provides guidance to personnel on
            conflict management in August, 2007.


<PAGE>
Controls over Recording Equity in Income/Losses

           o Beginning in the quarter ended September 30, 2007, management will
             perform a more detailed review and analysis of quarterly financial
             data and audited financial statements received from its investees
             to assure proper accounting in the appropriate period.
             Specifically, investee audited financial statements are reviewed
             for unusual events (such as a fire) to assure proper accounting in
             the appropriate period. Quarterly, where warranted, commencing in
             the quarter ended September 30, 2007, management will expand the
             scope of line items tested for reasonableness in comparison to
             prior year financial statements.

There were no other changes in the Partnership's internal control over financial
reporting identified in connection with the evaluation required by paragraph (d)
of the Securities and Exchange Act Rules 13a-15 or 15d-15 that occurred during
the quarter ended June 30, 2007 that affected, or were reasonably likely to
affect, the Partnership's internal control over financial reporting.




<PAGE>





PART II       OTHER INFORMATION

Item 6.       Exhibits.


           31.1 Certification of Principal Executive Officer and Principal
                Financial Officer pursuant to section 302 of the Sarbanes-Oxley
                Act of 2002.  *
           31.2 Certification of Principal Executive Officer and Principal
                Financial Officer pursuant to section 302 of the Sarbanes-Oxley
                Act of 2002.
           32.1 Certification of Principal Executive Officer and Principal
                Financial Officer pursuant to section 906 of the Sarbanes-Oxley
                Act of 2002.  *
           32.2 Certification of Principal Executive Officer and Principal
                Financial Officer pursuant to section 906 of the Sarbanes-Oxley
                Act of 2002.


* Previously filed with Form 10-QSB for the period ended June 30, 2007.



<PAGE>



                                    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 29, 2008                 BOSTON FINANCIAL QUALIFIED HOUSING TAX
                                         CREDITS L.P. III

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



                                            /s/Gary Mentesana
                                               Gary Mentesana
                                               President
                                               Arch Street III, Inc.


<PAGE>


                                  EXHIBIT 31.2



I, Gary Mentesana, certify that:

1.   I have reviewed this quarterly report on Form 10-QSB of Boston Financial
     Qualified Housing Tax Credits L.P. III;

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.   I am 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

4.   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 equivalents 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: February 29, 2008                     /s/Gary Mentesana
                                         ------------------------------------
                                                Gary Mentesana
                                                Principal Executive Officer and
                                                Principal Financial Officer
                                                Arch Street III, Inc., as
                                                Managing General Partner of
                                                Boston Financial Qualified
                                                Housing Tax Credits L.P. III


<PAGE>


                                  EXHIBIT 32.2

                CERTIFICATION 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 of Boston Financial Qualified Housing
Tax Credits L.P. III (the "Partnership") on Form 10-QSB for the period ended
June 30, 2007 as filed with the Securities and Exchange Commission on the date
hereof (the "Report"), the undersigned, the Principal Executive Officer and
Principal Financial Officer, hereby certifies pursuant to 18 U.S.C. Section
1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002,
that:

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/Gary Mentesana
                                       -----------------------------------
                                               Gary Mentesana
                                               Principal Executive Officer and
                                               Principal Financial Officer
                                               Arch Street III, Inc., as
                                               Managing General Partner of
                                               Boston Financial Qualified
                                               Housing Tax Credits L.P. III

                                                  Date:  February 29, 2008


A signed original of this written statement required by section 906 has been
provided to the Partnership and will be retained by the Partnership and
furnished to the Securities and Exchange Commission or its staff upon request.