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 June 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)

                                  June 30, 2004

<TABLE>
<CAPTION>


Assets
<S>                                                                          <C>
   Cash and cash equivalents                                                 $ 44
   Receivables and deposits                                                      42
   Other assets                                                                 364
   Investment properties:
      Land                                                    $ 407
      Buildings and related personal property                  9,528
                                                               9,935
      Less accumulated depreciation                           (7,920)         2,015
                                                                            $ 2,465
Liabilities and Partners' Deficit
Liabilities
   Accounts payable                                                          $ 93
   Tenant security deposit liabilities                                           64
   Accrued property taxes                                                        88
   Other liabilities                                                            207
   Due to affiliates (Note B)                                                   191
   Mortgage notes payable                                                     7,261

Partners' Deficit
   General partners                                           $(1,886)
   Limited partners (158,582 units issued and
      outstanding)                                            (3,553)        (5,439)
                                                                            $ 2,465

            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              Six Months
                                              Ended June 30,           Ended June 30,
                                            2004         2003         2004        2003
                                                      (Restated)               (Restated)
Revenues:
<S>                                        <C>          <C>         <C>          <C>
  Rental income                            $ 536        $ 552       $ 1,071      $ 1,093
  Other income                                 51           62          109          105
      Total revenues                          587          614        1,180        1,198

Expenses:
  Operating                                   341          262          670          543
  General and administrative                   57           56          108          122
  Depreciation                                113          118          226          231
  Interest                                    146          149          291          298
  Property taxes                               44           47           88           94
      Total expenses                          701          632        1,383        1,288


Loss from continuing operations              (114)         (18)        (203)         (90)
Loss from discontinued operations              --          (63)          --          (86)
Net loss                                   $ (114)      $ (81)       $ (203)     $ (176)

Net loss allocated to general
  partners (4%)                             $ (5)        $ (3)        $ (8)       $ (7)
Net loss allocated to limited
  partners (96%)                             (109)         (78)        (195)        (169)

                                           $ (114)      $ (81)       $ (203)     $ (176)
Per limited partnership unit:
Loss from continuing operations           $ (0.69)     $ (0.11)     $ (1.23)     $ (0.54)

Loss from discontinued operations              --        (0.39)          --        (0.53)

Net loss                                  $ (0.69)     $ (0.50)     $ (1.23)     $ (1.07)


            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 six months
   ended June 30, 2004                     --             (8)        (195)        (203)

Partners' deficit
   at June 30, 2004                    158,582       $(1,886)   $  (3,553)    $ (5,439)


            See Accompanying Notes to Consolidated Financial Statements
</TABLE>



<PAGE>



                       CONSOLIDATED CAPITAL PROPERTIES III

                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)
                                 (in thousands)

<TABLE>
<CAPTION>

                                                                  Six Months Ended
                                                                      June 30,
                                                                  2004         2003
Cash flows from operating activities:
<S>                                                              <C>          <C>
  Net loss                                                       $ (203)      $ (176)
  Adjustments to reconcile net loss to net cash
   provided by operating activities:
   Depreciation                                                      226          322
   Amortization of loan costs                                         13           14
   Change in accounts:
      Receivables and deposits                                         7           22
      Other assets                                                   (33)         (79)
      Accounts payable                                               (56)           8
      Tenant security deposit liabilities                              3            6
      Due to affiliates                                               69           95
      Accrued property taxes                                          88          107
      Other liabilities                                               20           20

       Net cash provided by operating activities                     134          339

Cash flows used in investing activities:
  Property improvements and replacements                             (91)        (166)

Cash flows from financing activities:
  Payments on mortgage notes payable                                (102)        (110)
  Advances from affiliate                                             51           70
  Payments on advances from affiliate                                 --          (34)

       Net cash used in financing activities                         (51)         (74)

Net (decrease) increase in cash and cash equivalents                  (8)          99

Cash and cash equivalents at beginning of period                      52           88
Cash and cash equivalents at end of period                        $ 44         $ 187

Supplemental disclosure of cash flow information:
  Cash paid for interest                                          $ 276        $ 327

            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 six month periods ended June
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.

The  accompanying  statements of  operations  for the three and six months ended
June 30, 2003 have been restated as of January 1, 2003 to reflect the operations
of West Chase Apartments as loss from discontinued operations in accordance with
Statement of Financial  Accounting  Standards ("SFAS") No. 144,  "Accounting for
the Impairment or Disposal of Long-Lived Assets". West Chase Apartments was sold
to an unrelated third party on September 29, 2003.

Note B - Transactions with Affiliated Parties

The Partnership has no employees and is dependent 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 Registrant's  properties as compensation for providing  property
management  services.  The  Registrant  paid  to such  affiliates  approximately
$58,000  and  $80,000  for  the  six  months  ended  June  30,  2004  and  2003,
respectively,   which  are  included  in   operating   expenses  and  loss  from
discontinued operations.

Affiliates  of the General  Partner are  entitled  to receive  reimbursement  of
accountable  administrative  expenses  amounting  to  approximately  $78,000 and
$76,000 for the six months ended June 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  $2,000 for the six
months ended June 30, 2003.  No such fees were incurred for the six months ended
June 30, 2004. 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  June  30,  2004,
approximately  $139,000  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 six months  ended June 30,  2004 and 2003,  no
special  management  fees  were  paid as no  distributions  from  cash flow from
operations were made.

During the six months ended June 30, 2004,  an affiliate of the General  Partner
advanced the  Partnership  approximately  $51,000 to fund the payment of certain
2003  liabilities.  Interest is accrued at the prime rate plus 2% (6.00% at June
30, 2004).  Interest expense was  approximately  $1,000 for the six months ended
June 30, 2004.  During the six months  ended June 30, 2003,  an affiliate of the
General  Partner  advanced  the  Partnership   approximately   $70,000  to  fund
operations at Ventura Landing  Apartments.  During the six months ended June 30,
2003,  the  Partnership  made  payments on advances  of  approximately  $34,000.
Interest  was  accrued  at  the  prime  rate  plus  2%.  Interest   expense  was
approximately  $1,000 for the six months ended June 30, 2003.  At June 30, 2004,
the total amount of advances and accrued interest was approximately  $52,000 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 six months ended June 30, 2004 and 2003, the Partnership was
charged  by  AIMCO  and  its  affiliates   approximately  $19,000  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 an
unrelated 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.   The  property's   operations,   loss  of
approximately $63,000 and $86,000,  including revenues of approximately $173,000
and $339,000,  are included in loss from  discontinued  operations for the three
and six months ended June 30, 2003, respectively.

Note D - 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 (the "Heller  action") was filed against the same  defendants that are
named in the Nuanes action,  captioned Heller v. Insignia Financial Group. On or
about August 6, 2001,  plaintiffs  filed a first amended  complaint.  The Heller
action was brought as a purported  derivative  action,  and asserted claims for,
among other things,  breach of fiduciary duty, unfair  competition,  conversion,
unjust enrichment, and judicial dissolution.

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

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

On June 13, 2003, the Court granted final approval of the settlement and entered
judgment in both the Nuanes and Heller actions.  On August 12, 2003, an objector
("Objector")  filed an  appeal  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.

On January 28, 2004,  Objector filed his opening brief in his pending appeal. On
April 23, 2004, the General Partner and its affiliates filed a response brief in
support of the settlement and the judgment thereto. 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.  No hearing has been
scheduled in the matter.

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  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  taken as a whole.  Similarly,  the General
Partner does not believe that the ultimate  outcome will have a material adverse
effect on the Partnership's  financial  condition or results of operations taken
as a whole.

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 is conducting an  investigation  relating to
certain  matters.  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, and
capitalization of expenses and payroll.  AIMCO is cooperating  fully. AIMCO does
not believe that the ultimate outcome will have a material adverse effect on its
consolidated  financial  condition  or results of  operations  taken as a whole.
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 taken as a whole.

<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 six month periods ended June 30, 2004 and 2003:

                                                   Average Occupancy
      Property                                      2004       2003

      Ventura Landing Apartments                    93%        95%
        Orlando, Florida

      Village Green Apartments                      91%        96%
        Altamonte Springs, Florida

The General  Partner  attributes  the  decrease in  occupancy  at Village  Green
Apartments to increased competition in the Altamonte Springs area.

The  Partnership's  financial  results  are  dependent  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  which are outside the control of the  Partnership
such as the local  economic  climate  and weather can  adversely  or  positively
impact the Partnership's financial results.

Results of Operations

The  Partnership's net loss for the three and six months ended June 30, 2004 was
approximately  $114,000 and $203,000,  respectively,  as compared to net loss of
approximately $81,000 and $176,000,  respectively,  for the three and six months
ended June 30, 2003.  On September  29, 2003,  the  Partnership  sold West Chase
Apartments to an unrelated  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. The property's operations,  loss of
approximately $63,000 and $86,000,  including revenues of approximately $173,000
and $339,000,  are included in loss from  discontinued  operations for the three
and six months ended June 30, 2003, respectively.

The Partnership's  loss from continuing  operations for the three and six months
ended June 30, 2004 was approximately  $114,000 and $203,000,  respectively,  as
compared  to loss  from  continuing  operations  of  approximately  $18,000  and
$90,000,  respectively,  for the three and six months ended June 30,  2003.  The
increase in loss from  continuing  operations  for both the three and six months
ended June 30, 2004 is due to an increase  in total  expenses  and a decrease in
total revenues. The increase in total expenses for both the three and six months
ended June 30, 2004 is primarily due to an increase in operating  expenses.  The
increase in total  expenses for the six months ended June 30, 2004 was partially
offset by decreases in general and  administrative,  interest,  and property tax
expenses.  General  and  administrative,  interest  and  property  tax  expenses
remained  relatively  constant  for  the  three  months  ended  June  30,  2004.
Depreciation  expense  remained  relatively  constant for both the three and six
months  ended June 30, 2004.  The  increase in  operating  expenses for both the
three and six months  ended  June 30,  2004 is  primarily  due to  increases  in
advertising expense at Ventura Landing  Apartments,  payroll related expenses at
Village  Green  Apartments  and  contract  maintenance  expenses  at both of the
Partnership's  investment  properties.  The decrease in interest expense for the
six months ended June 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. The decrease in property tax expense
for the six months  ended June 30,  2004 is  primarily  due to a decrease in the
assessed value of Village Green Apartments.  General and administrative expenses
decreased for the six months ended June 30, 2004  primarily due to a decrease in
professional  expenses  associated with the  administration  of the Partnership.
Also  included  in general  and  administrative  expenses  for the three and six
months ended June 30, 2004 and 2003 are management reimbursements to the General
Partner as allowed under the Partnership  Agreement,  costs  associated with the
quarterly and annual  communications  with investors and regulatory agencies and
the annual audit required by the Partnership Agreement.

The  decrease in total  revenues for the three months ended June 30, 2004 is due
to decreases in both rental and other income. The decrease in total revenues for
the six months ended June 30, 2004 is due to a decrease in rental income.  Other
income remained  relatively constant for the six months ended June 30, 2004. The
decrease in rental  income for both the three and six months ended June 30, 2004
is due to  decreases  in  occupancy  at  both  of the  Partnership's  investment
properties  and the average rental rate at Village Green  Apartments,  partially
offset by an increase in the average rental rate at Venture Landing  Apartments.
The  decrease  in other  income  for the three  months  ended  June 30,  2004 is
primarily due to a decrease in laundry income at Ventura Landing Apartments.

Liquidity and Capital Resources

At June 30, 2004, the Partnership had cash and cash equivalents of approximately
$44,000,  compared to  approximately  $187,000 at June 30, 2003. The decrease in
cash and cash equivalents of approximately  $8,000 from December 31, 2003 is due
to approximately  $91,000 of cash used in investing activities and approximately
$51,000 of cash used in financing activities,  partially offset by approximately
$134,000  of cash  provided  by  operating  activities.  Cash used in  investing
activities  consisted of property  improvements and  replacements.  Cash used in
financing  activities  consisted of payments of principal  made on the mortgages
encumbering the  Partnership's  investment  properties,  partially  offset by an
advance  received  from an affiliate  of the General  Partner.  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,  including  increased  legal and audit  fees.  Capital  improvements
planned for each of the Partnership's properties are detailed below.

Village Green Apartments

During  the  six  months  ended  June  30,  2004,  the   Partnership   completed
approximately  $49,000 of capital  improvements  at  Village  Green  Apartments,
consisting primarily of structural improvements,  air conditioning unit upgrades
and floor covering replacement.  These improvements were funded from operations.
The Partnership  evaluates the capital  improvement needs of the property during
the year and  currently  expects to  complete an  additional  $47,000 in capital
improvements during the remainder of 2004.  Additional capital  improvements may
be considered and will depend on the physical  condition of the property as well
as the anticipated cash flow generated by the property.

Ventura Landing Apartments

During  the  six  months  ended  June  30,  2004,  the   Partnership   completed
approximately  $42,000 of capital  improvements at Ventura  Landing  Apartments,
consisting  primarily of major  landscaping,  parking area resurfacing and floor
covering  replacement.  These  improvements  were  funded from  operations.  The
Partnership  evaluates the capital  improvement needs of the property during the
year and  currently  expects  to  complete  an  additional  $67,000  in  capital
improvements during the remainder of 2004.  Additional capital  improvements may
be considered and will depend on the physical  condition of the property as well
as the anticipated cash flow generated by the property.

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  $7,261,000  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 six months ended
June 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 83,881.50 limited partnership units
(the "Units") in the Partnership representing 52.89% of the outstanding Units at
June 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 52.89% 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 (the "Heller  action") was filed against the same  defendants that are
named in the Nuanes action,  captioned Heller v. Insignia Financial Group. On or
about August 6, 2001,  plaintiffs  filed a first amended  complaint.  The Heller
action was brought as a purported  derivative  action,  and asserted claims for,
among other things,  breach of fiduciary duty, unfair  competition,  conversion,
unjust enrichment, and judicial dissolution.

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

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

On June 13, 2003, the Court granted final approval of the settlement and entered
judgment in both the Nuanes and Heller actions.  On August 12, 2003, an objector
("Objector")  filed an  appeal  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.

<PAGE>

On January 28, 2004,  Objector filed his opening brief in his pending appeal. On
April 23, 2004, the General Partner and its affiliates filed a response brief in
support of the settlement and the judgment thereto. 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.  No hearing has been
scheduled in the matter.

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  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  taken as a whole.  Similarly,  the General
Partner does not believe that the ultimate  outcome will have a material adverse
effect on the Partnership's  financial  condition or results of operations taken
as a whole.


<PAGE>



ITEM 6.     EXHIBITS AND REPORTS ON FORM 8-K

            (a)   Exhibits:

                  See Exhibit Index.

            (b) Reports on Form 8-K:

                  None filed during the quarter ended June 30, 2004.


<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: August 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.

      10.5        Bill of Sale and  Assignment  dated  October 23, 1990,  by and
                  between  CCEC and ConCap  Services  Company  (Incorporated  by
                  reference to the Quarterly Report on Form 10-Q for the quarter
                  ended September 30, 1990).

          10.12 Assignment and Assumption Agreement dated August 1, 1991, by and
          between R & B Arizona  Management  Company,  Inc.  and R & B Apartment
          Management  Company,  Inc.  (Incorporated  by  reference to the Annual
          Report on Form 10-K for the year ended December 31, 1991).

          10.13 Assignment and Assumption  Agreement dated September 1, 1991, by
          and between the  Partnership and CCP III  Associates,  Ltd.  (Property
          Agreement No. 305). (Incorporated by reference to the Annual Report on
          Form 10-K for the year ended December 31, 1991).

          10.14 Assignment and Assumption  Agreement dated September 1, 1991, by
          and between the  Partnership and CCP III  Associates,  Ltd.  (Property
          Agreement No. 104). (Incorporated by reference to the Annual Report on
          Form 10-K for the year ended December 31, 1991).

          10.15 Assignment and Assumption  Agreement dated September 1, 1991, by
          and between the  Partnership and CCP III  Associates,  Ltd.  (Property
          Agreement No. 204). (Incorporated by reference to the Annual Report on
          Form 10-K for the year ended December 31, 1991).

      10.16       Construction  Management  Cost  Reimbursement  Agreement dated
                  January  1,  1991,   by  and  between  the   Partnership   and
                  Horn-Barlow    Companies   (the   "Horn-Barlow    Construction
                  Management Agreement").

      10.17       Assignment and Assumption  Agreement  dated September 1, 1991,
                  by  and  between  CCP  III   Associates,   Ltd.   (Horn-Barlow
                  Construction Management Agreement). (Incorporated by reference
                  to the Annual Report on Form 10-K for the year ended  December
                  31, 1991).

      10.18       Construction  Management  Cost  Reimbursement  Agreement dated
                  January 1, 1991,  by and  between  the  Partnership  and Metro
                  ConCap, Inc. (the "Metro Construction  Management Agreement").
                  (Incorporated  by reference to the Annual  Report on Form 10-K
                  for the year ended December 31, 1991).

          10.19Assignment and Assumption  Agreement  dated September 1, 1991, by
               and between the Partnership  and CCP III Associates,  Ltd. (Metro
               Construction Management Agreement). (Incorporated by reference to
               the Annual  Report on Form 10-K for the year ended  December  31,
               1991).

      10.20       Construction  Management  Cost  Reimbursement  Agreement dated
                  January 1, 1991, by and between the Partnership and The Hayman
                  Company  (the  "Hayman  Construction  Management  Agreement").
                  (Incorporated  by reference to the Annual  Report on Form 10-K
                  for the year ended December 31, 1991).

          10.21Assignment and Assumption  Agreement  dated September 1, 1991, by
               and between the Partnership and CCP III Associates,  Ltd. (Hayman
               Construction Management Agreement). (Incorporated by reference to
               the Annual  Report on Form 10-K for the year ended  December  31,
               1991).

      10.22       Construction  Management  Cost  Reimbursement  Agreement dated
                  January 1, 1991,  by and  between  the  Partnership  and R & B
                  Apartment Management Company (Incorporated by reference to the
                  Annual  Report on Form 10-K for the year  ended  December  31,
                  1991).

      10.23       Investor  Services  Agreement  dated  October 23, 1990, by and
                  between the Partnership and CCEC (Incorporated by reference to
                  the  Quarterly  Report  on Form  10-Q  for the  quarter  ended
                  September 30, 1990).

      10.24       Assignment  and  Assumption   Agreement   (Investor   Services
                  Agreement)  dated  October 23,  1990,  by and between CCEC and
                  ConCap  Services  Company.  (Incorporated  by reference to the
                  Annual  Report on Form 10-K for the year  ended  December  31,
                  1990).

      10.25       Letter of Notice dated  December 20,  1991,  from  Partnership
                  Services, Inc. ("RSI") to the Partnership regarding the change
                  in  ownership  and  dissolution  of  ConCap  Services  Company
                  whereby   PSI  assumed  the   Investor   Services   Agreement.
                  (Incorporated  by reference to the Annual  Report on Form 10-K
                  for the year ended December 31, 1991).

      10.26       Financial  Services  Agreement  dated October 23, 1990, by and
                  between the Partnership and CCEC (Incorporated by reference to
                  the  Quarterly  Report  on Form  10-Q  for the  quarter  ended
                  September 30, 1990).

      10.27       Assignment  and  Assumption   Agreement   (Financial  Services
                  Agreement)  dated  October 23,  1990,  by and between CCEC and
                  ConCap  Capital  Company  (Incorporated  by  reference  to the
                  Quarterly  Report on Form 10-Q for the quarter ended September
                  30, 1990).

      10.28       Letter of Notice  dated  December  20,  1991,  from PSI to the
                  Partnership  regarding the change in ownership and dissolution
                  of ConCap  Capital  Company  whereby PSI assumed the Financial
                  Services  Agreement.  (Incorporated by reference to the Annual
                  Report on Form 10-K for the year ended December 31, 1991).

          10.45Stock and Asset Purchase  Agreement,  dated December 8, 1994 (the
               "Gordon  Agreement"),  among MAE-ICC,  Inc.  ("MAE-ICC"),  Gordon
               Realty Inc.  ("Gordon"),  GII Realty,  Inc. ("GII  Realty"),  and
               certain  other  parties.  (Incorporated  by reference to Form 8-K
               dated December 8, 1994).

      10.46       Exercise of the Option (as  defined in the Gordon  Agreement),
                  dated   December   8,  1994,   between   MAE-ICC  and  Gordon.
                  (Incorporated  by  reference  to Form 8-K  dated  December  8,
                  1994).

      10.50       Multifamily  Note dated  December  1, 1999  between CCP III, a
                  California limited  partnership,  and GMAC Commercial Mortgage
                  Corporation  (West Chase  Apartments note is filed with 10-KSB
                  dated December 31, 1999).

      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).

          10.52Multifamily  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).

      19.1        Modified  First  Amended  Plan of  Reorganization  for CCP/III
                  Associates,  Ltd.,  dated and filed  March  24,  1992,  in the
                  United States  Bankruptcy  Court for the Northern  District of
                  Texas,  Dallas  Division.  (Incorporated  by  reference to the
                  Annual  Report on Form 10-K for the year  ended  December  31,
                  1992).

      19.2        Modified First Amended  Disclosure  Statement for the Modified
                  First Amended Plan of Reorganization  for CCP/III  Associates,
                  Ltd.,  dated and filed March 24,  1992,  in the United  States
                  Bankruptcy  Court for the Northern  District of Texas,  Dallas
                  Division.  (Incorporated  by reference to the Annual Report on
                  Form 10-K for the year ended December 31, 1992).

      19.3        First   Modification   to  Modified   First  Amended  Plan  of
                  Reorganization for CCP/III  Associates,  Inc., dated and filed
                  April 22, 1992, in the United States  Bankruptcy Court for the
                  Northern District of Texas, Dallas Division.  (Incorporated by
                  reference to the Annual Report on Form 10-K for the year ended
                  December 31, 1992).

      19.4        Second   Modification   to  Modified  First  Amended  Plan  of
                  Reorganization for CCP/III  Associates,  Inc., dated and filed
                  April 29, 1992, in the United States  Bankruptcy Court for the
                  Northern District of Texas, Dallas Division.  (Incorporated by
                  reference to the Annual Report on Form 10-K for the year ended
                  December 31, 1992).

      19.5        Third   Modification   to  Modified   First  Amended  Plan  of
                  Reorganization for CCP/III  Associates,  Inc., dated and filed
                  April 29, 1992, in the United States  Bankruptcy Court for the
                  Northern District of Texas, Dallas Division.  (Incorporated by
                  reference to the Annual Report on Form 10-K for the year ended
                  December 31, 1992).

      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: August 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: August 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 June 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:  August 12, 2004


                                           /s/Stephen B. Waters
                                    Name:  Stephen B. Waters
                                    Date:  August 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.