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 0-10273


                       CONSOLIDATED CAPITAL PROPERTIES III
        (Exact Name of Small Business Issuer as Specified in Its Charter)



         California                                              94-2653686
(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
                           (Issuer's telephone number)

Check  whether the issuer (1) 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 PROPERTIES III

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

                               September 30, 2004

<TABLE>
<CAPTION>

Assets
<S>                                                                          <C>
   Cash and cash equivalents                                                 $ 84
   Receivables and deposits                                                      54
   Other assets                                                                 351
   Investment properties:
      Land                                                    $ 407
      Buildings and related personal property                  9,670
                                                              10,077
      Less accumulated depreciation                           (7,932)         2,145
                                                                            $ 2,634
Liabilities and Partners' Deficit
Liabilities
   Accounts payable                                                          $ 115
   Tenant security deposit liabilities                                           66
   Accrued property taxes                                                       132
   Other liabilities                                                            201
   Due to affiliates (Note B)                                                   485
   Mortgage notes payable                                                     7,209

Partners' Deficit
   General partners                                           $(1,892)
   Limited partners (158,582 units issued and
      outstanding)                                            (3,682)        (5,574)
                                                                            $ 2,634

         See Accompanying Notes to Consolidated Financial Statements
</TABLE>



<PAGE>






                       CONSOLIDATED CAPITAL PROPERTIES III

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

<TABLE>
<CAPTION>

                                                Three Months Ended     Nine Months Ended
                                                  September 30,          September 30,
                                                 2004       2003        2004       2003
Revenues:
<S>                                             <C>         <C>       <C>         <C>
  Rental income                                 $ 572       $ 582     $ 1,643     $ 1,675
  Other income                                      51          54        160         160
     Total revenues                                623         636      1,803       1,835

Expenses:
  Operating                                        393         360      1,063         903
  General and administrative                        64          50        172         172
  Depreciation                                     112         111        338         342
  Interest                                         145         147        436         446
  Property taxes                                    44          38        132         132
     Total expenses                                758         706      2,141       1,995

Loss from continuing operations                   (135)        (70)      (338)       (160)
Loss from discontinued operations                   --        (402)        --        (488)
Gain from sale of discontinued operations           --         988         --         988
Net (loss) income                               $ (135)     $ 516      $ (338)     $ 340

Net (loss) income allocated to general
  partners (4%)                                  $ (5)      $ 21       $ (14)      $ 14
Net (loss) income allocated to limited
  partners (96%)                                  (130)        495       (324)        326

                                                $ (135)     $ 516      $ (338)     $ 340
Per limited partnership unit:
Loss from continuing operations                $ (0.82)    $ (0.42)   $ (2.04)    $ (0.97)
Loss from discontinued operations                   --       (2.44)        --       (2.95)
Gain from sale of discontinued operations           --        5.98         --        5.98
Net (loss) income                              $ (0.82)    $ 3.12     $ (2.04)    $ 2.06

         See Accompanying Notes to Consolidated Financial Statements
</TABLE>



<PAGE>


                       CONSOLIDATED CAPITAL PROPERTIES III

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

<TABLE>
<CAPTION>


                                       Limited
                                     Partnership     General      Limited
                                        Units        Partners    Partners      Total

<S>                                    <C>             <C>      <C>           <C>
Original capital contributions         158,945         $ 1      $  79,473     $ 79,474

Partners' deficit
   at December 31, 2003                158,582       $(1,878)   $  (3,358)    $ (5,236)

Net loss for the nine months
   ended September 30, 2004                --            (14)        (324)        (338)

Partners' deficit
   at September 30, 2004               158,582       $(1,892)   $  (3,682)    $ (5,574)


         See Accompanying Notes to Consolidated Financial Statements
</TABLE>



<PAGE>




                       CONSOLIDATED CAPITAL PROPERTIES III

                      CONSOLIDATED 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) income                                              $ (338)       $ 340
  Adjustments to reconcile net (loss) income to net cash
   provided by operating activities:
   Gain from sale of discontinued operations                          --         (988)
   Depreciation                                                      338          478
   Loss on early extinguishment of debt                               --          332
   Amortization of loan costs                                         19           21
   Bad debt expense                                                   63          115
   Change in accounts:
      Due to affiliates                                              115           99
      Receivables and deposits                                       (68)         (67)
      Other assets                                                   (26)         (49)
      Accounts payable                                               (34)         (65)
      Tenant security deposit liabilities                              5           (8)
      Accrued property taxes                                         132          132
      Other liabilities                                               14           25

       Net cash provided by operating activities                     220          365

Cash flows from investing activities:
  Proceeds from sale of discontinued operations                       --        1,651
  Property improvements and replacements                            (333)        (245)

       Net cash (used in) provided by investing activities          (333)       1,406

Cash flows from financing activities:
  Repayment of mortgage note payable                                  --       (1,047)
  Payments on mortgage notes payable                                (154)        (166)
  Advances from affiliate                                            299           70
  Payments on advances from affiliate                                 --          (58)

       Net cash provided by (used in) financing activities           145       (1,201)

Net increase in cash and cash equivalents                             32          570

Cash and cash equivalents at beginning of period                      52           88
Cash and cash equivalents at end of period                        $ 84         $ 658

Supplemental disclosure of cash flow information:
  Cash paid for interest                                          $ 434        $ 496

At September 30, 2003,  proceeds from the sale of  discontinued  operations  has
been adjusted by approximately  $299,000 in connection with prepayment penalties
paid by the buyer of West Chase Apartments.

         See Accompanying Notes to Consolidated Financial Statements
</TABLE>



<PAGE>

                       CONSOLIDATED CAPITAL PROPERTIES III

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)


Note A - Basis of Presentation

The accompanying  unaudited  consolidated  financial  statements of Consolidated
Capital Properties III (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 the general partner of the Partnership,
ConCap Equities,  Inc. (the "General Partner"),  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 consolidated financial statements and footnotes thereto included in
the  Partnership's  Annual  Report on Form  10-KSB  for the  fiscal  year  ended
December 31, 2003. The General Partner is  wholly-owned by Apartment  Investment
and  Management  Company  ("AIMCO"),  a publicly  traded real estate  investment
trust.

Note B - Transactions with Affiliated Parties

The  Partnership  has no  employees  and depends on the General  Partner and its
affiliates for the management and administration of all Partnership  activities.
The partnership  agreement  ("Partnership  Agreement")  provides for payments to
affiliates  for  services  and  reimbursement  of certain  expenses  incurred by
affiliates of the General Partner on behalf of the Partnership.

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
$89,000 and  $118,000  for the nine months  ended  September  30, 2004 and 2003,
respectively,   which  are  included  in   operating   expenses  and  loss  from
discontinued operations.

Affiliates of the General Partner charged the Partnership for  reimbursement  of
accountable  administrative  expenses  amounting to  approximately  $131,000 and
$129,000 for the nine months ended  September  30, 2004 and 2003,  respectively.
Included in these amounts are fees related to construction  management  services
provided by an  affiliate  of the General  Partner of  approximately  $9,000 and
$18,000 for the nine months ended September 30, 2004 and 2003, respectively. The
construction  management  service fees are  calculated  based on a percentage of
current additions to investment properties.  These reimbursements of accountable
administrative  expenses are included in general and administrative expenses and
investment  properties.  At September 30, 2004,  approximately  $184,000 of such
fees were owed and are included in due to affiliates.

The Partnership  Agreement  provides for a special management fee equal to 9% of
the  total  distributions  made to the  limited  partners  from  cash  flow from
operations to be paid to the General  Partner for  executive and  administrative
management  services.  During the nine months ended September 30, 2004 and 2003,
no special  management  fees were paid as no  distributions  from cash flow from
operations were made.

During the nine months ended  September  30,  2004,  an affiliate of the General
Partner advanced the Partnership  approximately  $299,000 to fund operations and
capital  improvements  at  both  of  the  Partnership's  investment  properties.
Interest  is accrued at the prime rate plus 2% (6.75% at  September  30,  2004).
Interest  expense was  approximately  $2,000 for the nine months ended September
30, 2004.  During the nine months ended  September 30, 2003, an affiliate of the
General  Partner  advanced  the  Partnership   approximately   $70,000  to  fund
operations at Ventura Landing Apartments. During the nine months ended September
30, 2003, the Partnership  made payments on advances of  approximately  $58,000.
Interest expense for the nine months ended September 30, 2003 was  approximately
$3,000. At September 30, 2004, the total amount of advances and accrued interest
was approximately $301,000 and is 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  $34,000 and
$29,000,  respectively,  for insurance  coverage and fees associated with policy
claims administration.

Note C - Disposition of Investment Property

On September 29, 2003,  the  Partnership  sold West Chase  Apartments to a third
party for a gross  sale  price of  approximately  $2,124,000.  The net  proceeds
realized by the  Partnership  were  approximately  $1,651,000  after  payment of
closing   costs  of   approximately   $174,000  and  a  prepayment   penalty  of
approximately  $299,000  owed by the  Partnership  and  paid by the  buyer.  The
Partnership  used  approximately  $1,047,000  of the net  proceeds  to repay the
mortgage  encumbering  the property.  As a result of the sale,  the  Partnership
realized a gain of  approximately  $988,000  for the three and nine months ended
September  30,  2003,  and  this  amount  is  included  in  gain  from  sale  of
discontinued   operations  on  the  accompanying   consolidated   statements  of
operations.  The  property's  operations,  loss of  approximately  $402,000  and
$488,000 for the three and nine months ended  September 30, 2003,  respectively,
are  shown  as  loss  from  discontinued  operations.   Included  in  loss  from
discontinued operations are revenues of approximately $139,000 and $477,000, for
the three and nine months ended September 30, 2003,  respectively.  In addition,
the Partnership recorded a loss on early extinguishment of debt of approximately
$332,000 for the three and nine months ended September 30, 2003 due to the write
off of unamortized loan costs and a prepayment  penalty,  which is also included
in loss from discontinued operations on the accompanying consolidated statements
of operations.

Note D - Casualty Event

In August 2004,  Ventura Landing  Apartments  experienced  damage from Hurricane
Charley. As of September 30, 2004, the Partnership  estimates damage and cleanup
costs of approximately $225,000. The Partnership does not expect a casualty loss
to result from the damage as the damaged assets were fully depreciated.

In September 2004, Ventura Landing Apartments  experienced damage from Hurricane
Frances.  As of  September  30, 2004 the  Partnership  estimates  the damage and
cleanup costs to be  approximately  $140,000.  The Partnership does not expect a
casualty  loss to  result  from the  damage as the  damaged  assets  were  fully
depreciated.

In September 2004,  Village Green Apartments  experienced  damage from Hurricane
Frances.  As of September  30, 2004 the  Partnership  estimates the damage to be
approximately  $45,000.  The General Partner anticipates a loss of approximately
$5,000 to result from this event.

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, the 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 consolidated 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 consolidated 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 consist of two 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

      Ventura Landing Apartments                    94%        95%
        Orlando, Florida

      Village Green Apartments                      93%        95%
        Altamonte Springs, Florida

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 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's  net loss for the three and nine months ended  September  30,
2004 was approximately $135,000 and $338,000,  respectively,  as compared to net
income of approximately $516,000 and $340,000,  respectively,  for the three and
nine months ended  September 30, 2003. On September  29, 2003,  the  Partnership
sold  West  Chase  Apartments  to a  third  party  for a  gross  sale  price  of
approximately  $2,124,000.  The net proceeds  realized by the  Partnership  were
approximately  $1,651,000  after  payment  of  closing  costs  of  approximately
$174,000  and a  prepayment  penalty  of  approximately  $299,000  owed  by  the
Partnership and paid by the buyer. The Partnership used approximately $1,047,000
of the net proceeds to repay the mortgage encumbering the property.  As a result
of the sale, the Partnership  realized a gain of approximately  $988,000 for the
three and nine months ended  September 30, 2003,  which is included in gain from
sale of discontinued  operations on the accompanying  consolidated statements of
operations.  The  property's  operations,  loss of  approximately  $402,000  and
$488,000,  respectively, for the three and nine months ended September 30, 2003,
are  shown  as  loss  from  discontinued  operations.   Included  in  loss  from
discontinued  operations  are revenues of  approximately  $139,000 and $477,000,
respectively,  for the  three and nine  months  ended  September  30,  2003.  In
addition,  the Partnership  recorded a loss on early  extinguishment  of debt of
approximately  $332,000 for the three and nine months ended  September  30, 2003
due to the write off of unamortized loan costs and a prepayment  penalty,  which
is also  included  in loss  from  discontinued  operations  on the  accompanying
consolidated statements of operations.

The Partnership's loss from continuing  operations for the three and nine months
ended September 30, 2004 was approximately $135,000 and $338,000,  respectively,
as compared to loss from  continuing  operations  of  approximately  $70,000 and
$160,000 for the three and nine months ended  September 30, 2003,  respectively.
The  increase  in loss from  continuing  operations  for both the three and nine
months ended  September  30, 2004 is due to an increase in total  expenses and a
decrease in total revenues.  The increase in total expenses for the three months
ended  September 30, 2004 is due to increases in both  operating and general and
administrative  expenses.  Depreciation,  property  tax  and  interest  expenses
remained  relatively constant for the three months ended September 30, 2004. The
increase in total  expenses for the nine months ended  September 30, 2004 is due
to an increase in operating expenses, partially offset by a decrease in interest
expense.  Depreciation,  property tax, and general and  administrative  expenses
remained  relatively  constant for the nine months ended September 30, 2004. The
increase in operating expenses for both periods is primarily due to increases in
advertising,  contract maintenance,  and payroll related expenses at both of the
Partnerships  investment  properties,  and cleanup  expenses at Ventura  Landing
Apartments  related to damage  sustained  from  Hurricane  Charley (as discussed
below). The decrease in interest expense for the nine months ended September 30,
2004  is a  result  of  scheduled  principal  payments  made  on  the  mortgages
encumbering the Partnership's investment properties,  which reduced the carrying
balance of the loans.  General and  administrative  expenses  increased  for the
three months ended  September 30, 2004 primarily due to an increase in the costs
of services included in the management  reimbursements to the General Partner as
allowed under the Partnership Agreement. In addition,  costs associated with the
quarterly and annual  communications  with investors and regulatory agencies and
the annual audit  required by the  Partnership  Agreement  are also  included in
general  and  administrative  expenses  for the  three  and  nine  months  ended
September 30, 2004 and 2003.

The decrease in total revenues for the three and nine months ended September 30,
2004 is due to a decrease in rental  income.  Other income  remained  relatively
constant for the comparable periods. The decrease in rental income for the three
and nine months ended  September 30, 2004 is due to decreases in both  occupancy
and the average rental rate at both of the Partnership's investment properties.

In August 2004,  Ventura Landing  Apartments  experienced  damage from Hurricane
Charley. As of September 30, 2004, the Partnership  estimates damage and cleanup
costs of approximately $225,000. The Partnership does not expect a casualty loss
to result from the damage as the damaged assets were fully depreciated.

In September 2004, Ventura Landing Apartments  experienced damage from Hurricane
Frances.  As of  September  30, 2004 the  Partnership  estimates  the damage and
cleanup costs to be  approximately  $140,000.  The Partnership does not expect a
casualty  loss to  result  from the  damage as the  damaged  assets  were  fully
depreciated.

In September 2004,  Village Green Apartments  experienced  damage from Hurricane
Frances.  As of September  30, 2004 the  Partnership  estimates the damage to be
approximately  $45,000.  The General Partner anticipates a loss of approximately
$5,000 to result from this event.


<PAGE>



Liquidity and Capital Resources

At  September  30,  2004,  the  Partnership  had cash and  cash  equivalents  of
approximately $84,000, compared to approximately $658,000 at September 30, 2003.
The  increase  in cash and  cash  equivalents  of  approximately  $32,000,  from
December  31,  2003,  is due to  approximately  $220,000  of  cash  provided  by
operating  activities and  approximately  $145,000 of cash provided by financing
activities, partially offset by approximately $333,000 of cash used in investing
activities. Cash provided by financing activities consisted of advances received
from an  affiliate  of the  General  Partner,  partially  offset by  payments of
principal  made  on  the  mortgages  encumbering  the  Partnership's  investment
properties. Cash used in investing activities consisted of property improvements
and  replacements.  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.

Village Green Apartments

During the nine months ended  September  30,  2004,  the  Partnership  completed
approximately  $112,000 of capital  improvements  at Village  Green  Apartments,
consisting  primarily of structural  improvements,  parking area  upgrades,  air
conditioning unit upgrades and floor covering  replacement.  These  improvements
were funded from  operations  and an advance  from an  affiliate  of the General
Partner. The Partnership evaluates the capital improvement needs of the property
during the year and currently  expects that only necessary  improvements will be
made  during  the  remainder  of 2004 in  order  to  maintain  occupancy  at the
property.  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.

Ventura Landing Apartments

During the nine months ended  September  30,  2004,  the  Partnership  completed
approximately  $221,000 of capital  improvements at Ventura Landing  Apartments,
consisting  primarily of major landscaping,  parking area resurfacing,  exterior
painting,  structural  improvements,   and  floor  covering  replacement.  These
improvements were funded from operations and an advance from an affiliate of the
General Partner. The Partnership  evaluates the capital improvement needs of the
property during the year and currently expects that only necessary  improvements
will be made during the remainder of 2004 in order to maintain  occupancy at the
property.  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.

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 completed,  the Partnership's  distributable cash flow,
if any, may be adversely affected at least in the short term.

The  Partnership's  assets are thought to be sufficient for any near-term  needs
(exclusive  of  capital   improvements)   of  the   Partnership.   The  mortgage
indebtedness    encumbering   the   Partnership's   investment   properties   of
approximately  $7,209,000  requires  monthly  payments of principal and interest
until the loans mature between July and August 2021, at which time the loans are
scheduled to be fully amortized.

There were no  distributions  made to the partners  during the nine months ended
September 30, 2004 and 2003. Future cash distributions will depend on the levels
of net cash generated from operations,  the  availability of cash reserves,  and
the  timing of  property  sales  and/or  refinancings.  The  Partnership's  cash
available  for  distribution  is  reviewed on a monthly  basis.  There can be no
assurance 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  interests in the
Partnership,  AIMCO and its affiliates owned 83,938.50 limited partnership units
(the "Units") in the Partnership representing 52.93% 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 52.93% of the
outstanding  Units,  AIMCO is in a position to control all 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 consolidated 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

The Partnership's  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 the  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, the 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 consolidated financial condition or results of operations.

ITEM 6.     EXHIBITS

            See Exhibit Index.



<PAGE>


                                   SIGNATURES



In accordance with the  requirements of the Exchange Act, the Registrant  caused
this  report to be  signed on its  behalf  by the  undersigned,  thereunto  duly
authorized.


                                    CONSOLIDATED CAPITAL PROPERTIES III


                                    By:   CONCAP EQUITIES, INC.
                                          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>


                                  EXHIBIT INDEX

Exhibit Number

      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, 1991, is  incorporated  herein by
                  reference).

      3.2         Partnership  Agreement  dated May 22, 1980 is  incorporated by
                  reference to Exhibit A to the  Prospectus of the  Registration
                  dated August 17, 1981 as filed with the Commission pursuant to
                  Rule 424(b) under the Act.

      10.51       Multifamily  Note dated  June 27,  2001  between  Consolidated
                  Capital Properties III, a California limited partnership,  and
                  GMAC  Commercial   Mortgage   Corporation.   (Incorporated  by
                  reference  to the  Quarterly  Report  on Form  10-QSB  for the
                  quarter ended June 30, 2001).

      10.52       Multifamily  Note dated July 23, 2001 between  ConCap  Village
                  Green Associates,  Ltd., a Texas limited partnership, and GMAC
                  Commercial Mortgage Corporation. (Incorporated by reference to
                  the Quarterly Report on Form 10-QSB for the quarter ended June
                  30, 2001).

      10.53       Purchase  and  Sale  Contract  between   Consolidated  Capital
                  Properties  III and West Chase  Apartments,  LLC, dated August
                  13, 2003  (incorporated  by reference to the Current Report on
                  Form 8-K dated September 29, 2003).

      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 Properties 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.    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 Properties 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.    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
Properties III (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.