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, 2002


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


                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)


                         PART I - FINANCIAL INFORMATION


ITEM 1.     FINANCIAL STATEMENTS


                       CONSOLIDATED CAPITAL PROPERTIES III

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

                                  June 30, 2002

<TABLE>
<CAPTION>


Assets
<S>                                                                          <C>
   Cash and cash equivalents                                                 $ 303
   Receivables and deposits                                                     114
   Restricted escrows                                                           118
   Other assets                                                                 460
   Investment properties:
      Land                                                    $ 507
      Buildings and related personal property                 11,749
                                                              12,256
      Less accumulated depreciation                           (8,767)         3,489
                                                                            $ 4,484
Liabilities and Partners' Deficit
Liabilities
   Accounts payable                                                          $ 20
   Tenant security deposit liabilities                                           79
   Accrued property taxes                                                        88
   Other liabilities                                                            280
   Mortgage notes payable                                                     8,732

Partners' Deficit
   General partners                                           $(1,869)
   Limited partners (158,582 units issued and
      outstanding)                                            (2,846)        (4,715)
                                                                            $ 4,484

            See Accompanying Notes to Consolidated Financial Statements
</TABLE>

                       CONSOLIDATED CAPITAL PROPERTIES III

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

<TABLE>
<CAPTION>

                                               Three Months              Six Months
                                              Ended June 30,           Ended June 30,
                                            2002         2001         2002        2001
                                                      (Restated)               (Restated)
Revenues:
<S>                                        <C>          <C>         <C>          <C>
  Rental income                            $ 709        $ 761       $ 1,435      $ 1,500
  Other income                                 74           49          141          102
      Total revenues                          783          810        1,576        1,602

Expenses:
  Operating                                   350          382          696          740
  General and administrative                   65           90          133          203
  Depreciation                                157          150          313          295
  Interest                                    169          146          342          253
  Property taxes                               49           51           98           99
      Total expenses                          790          819        1,582        1,590

Net (loss) income                           $ (7)        $ (9)        $ (6)       $ 12

Net income allocated to general
  partners (4%)                             $ --         $ --         $ --         $ 1
Net (loss) income allocated to
  limited partners (96%)                       (7)          (9)          (6)          11

                                            $ (7)        $ (9)        $ (6)       $ 12
Net (loss) income per limited
  partnership unit
                                          $ (0.05)     $ (0.06)     $ (0.04)     $ 0.07
Distributions per limited
  partnership unit                         $ 1.91       $ 0.92       $ 1.91      $ 2.93
            See Accompanying Notes to Consolidated Financial Statements
</TABLE>

                       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, 2001                158,582       $(1,869)    $ (2,537)    $ (4,406)

Distributions to partners                  --             --         (303)        (303)

Net loss for the six months
   ended June 30, 2002                     --             --           (6)          (6)

Partners' deficit
   at June 30, 2002                    158,582       $(1,869)    $ (2,846)    $ (4,715)

            See Accompanying Notes to Consolidated Financial Statements
</TABLE>

                       CONSOLIDATED CAPITAL PROPERTIES III

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

<TABLE>
<CAPTION>

                                                                  Six Months Ended
                                                                        June 30,
                                                                  2002         2001
Cash flows from operating activities:
<S>                                                               <C>          <C>
  Net (loss) income                                               $ (6)        $ 12
  Adjustments to reconcile net (loss) income to net cash
   provided by operating activities:
   Depreciation                                                      313          295
   Loss on early extinguishment of debt                               --           36
   Amortization of loan costs                                         12           16
   Change in accounts:
      Receivables and deposits                                       (52)        (267)
      Other assets                                                   (44)          (6)
      Accounts payable                                               (87)         (21)
      Tenant security deposit liabilities                             (1)          (2)
      Accrued property taxes                                          88           89
      Other liabilities                                               64           69

       Net cash provided by operating activities                     287          221

Cash flows from investing activities:
  Property improvements and replacements                            (148)        (345)
  Insurance proceeds received                                        173           --
  Net withdrawals from restricted escrows                             60           30
       Net cash provided by (used in) investing activities            85         (315)

Cash flows from financing activities:
  Loan costs paid                                                     --         (172)
  Proceeds from mortgage note payable                                 --        4,225
  Repayment of mortgage note payable                                  --       (2,200)
  Payments on mortgage notes payable                                (102)         (13)
  Distributions to partners                                         (303)        (484)
  Advance from affiliate                                              --          150

       Net cash (used in) provided by financing activities          (405)       1,506

Net (decrease) increase in cash and cash equivalents                 (33)       1,412

Cash and cash equivalents at beginning of period                     336          545
Cash and cash equivalents at end of period                        $ 303       $ 1,957
Supplemental disclosure of cash flow information:
  Cash paid for interest                                          $ 333        $ 214

At December 31,  2001,  receivables  and  deposits and cash flow from  investing
activities were adjusted by approximately $173,000 for non-cash activity related
to  insurance  proceeds  received  which were held on deposit  with the mortgage
lender and received during the six months ended June 30, 2002.

            See Accompanying Notes to Consolidated Financial Statements
</TABLE>

                       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, 2002 are not necessarily  indicative of the results that may be expected for
the fiscal year ending December 31, 2002. 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,  2001.  The General  Partner is  wholly-owned  by Apartment  Investment  and
Management Company ("AIMCO"), a publicly traded real estate investment trust.

Effective  April  1,  2002,  the  Partnership  adopted  Statement  of  Financial
Accounting  Standards ("SFAS") No. 145, "Rescission of FASB Statements No. 4, 44
and 64". SFAS No. 4 "Reporting  Gains and Losses from  Extinguishment  of Debt,"
required  that all gains and losses from  extinguishment  of debt be  aggregated
and, if material,  classified as an  extraordinary  item.  SFAS No. 145 rescinds
SFAS No. 4, and accordingly, gains and losses from extinguishment of debt should
only be  classified  as  extraordinary  if they are  unusual in nature and occur
infrequently. Neither of these criteria applies to the Partnership. As a result,
the  accompanying  consolidated  statements of operations  for the three and six
months  ended June 30,  2001 have been  restated  to  reflect  the loss on early
extinguishment  of debt at Ventura  Landing  Apartments (see Note D) as interest
expense.

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 (i) payments to
affiliates for services and (ii)  reimbursements 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
$79,000  and  $81,000  for  the  six  months  ended  June  30,  2002  and  2001,
respectively, which are included in operating expenses.

Affiliates  of  the  General  Partner  received   reimbursement  of  accountable
administrative  expenses amounting to approximately $88,000 and $149,000 for the
six months ended June 30, 2002 and 2001, respectively. Included in these amounts
are fees related to construction management services provided by an affiliate of
the General Partner of  approximately  $51,000 for the six months ended June 30,
2001.  No such fees were  incurred for the six months  ended June 30, 2002.  The
construction  management  service  fees are  calculated  based on  additions  to
investment  properties.   These  reimbursements  of  accountable  administrative
expenses are included in investment  properties  and general and  administrative
expenses.

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,  2001,  fees of
approximately  $46,000 were paid to the General  Partner,  which are included in
general and administrative expenses.  During the six months ended June 30, 2002,
no  special  management  fee was paid as no  distributions  from  cash flow from
operations were made.

During the six months ended June 30, 2001,  an affiliate of the General  Partner
advanced the Registrant $150,000 to pay for repairs related to a fire in January
2001 (see "Note C"). This advance accrued interest at the prime rate plus 2%. At
June 30,  2001,  the  Partnership  owed such  affiliate  approximately  $150,000
including  accrued  interest.  During the third quarter of 2001, the Partnership
repaid  this  advance  with  the  refinancing   proceeds  from  Ventura  Landing
Apartments. There were no advances from affiliates of the General Partner to the
Registrant during the six months ended June 30, 2002.

Beginning in 2001, the  Partnership  began insuring 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, 2002
and 2001, the Partnership was charged by AIMCO and its affiliates  approximately
$37,000 and $63,000,  respectively,  for insurance  coverage and fees associated
with policy claims administration.

Note C - Casualty Event

In January 2001, a fire  occurred at West Chase  Apartments,  which  resulted in
damage to twelve apartment units. The property incurred damages of approximately
$178,000.  Insurance proceeds of approximately $173,000 were received in 2001 to
cover these  damages.  These  proceeds  were held on deposit  with the  mortgage
lender at December 31, 2001 and were  released  during the six months ended June
30, 2002 upon completion of repairs at the property.

Note D - Refinancing and Loss on Early Extinguishment of Debt

On June 28, 2001, the Partnership  refinanced the mortgage  encumbering  Ventura
Landing  Apartments.  The refinancing  replaced  indebtedness  of  approximately
$2,200,000  with a new  mortgage  in the  amount  of  $4,225,000.  Approximately
$60,000 of the proceeds were placed into a restricted escrow account  maintained
by the  lender.  The new  mortgage  carries  a stated  interest  rate of  7.54%.
Interest on the old mortgage was 7.33%.  Principal and interest  payments on the
mortgage loan of approximately $34,000 are due monthly until the loan matures in
July 2021 at which time the loan will be fully amortized. Total capitalized loan
costs were approximately $172,000 during the six months ended June 30, 2001. The
Partnership   recognized  a  loss  on  the  early   extinguishment  of  debt  of
approximately  $36,000 due to the write-off of unamortized loan costs,  which is
included in interest expense.

Note E - 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 purports to
assert  claims on behalf of a class of  limited  partners  and  derivatively  on
behalf of a number of limited partnerships (including the Partnership) which 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 which 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 seek monetary damages and equitable  relief,  including  judicial
dissolution of the  Partnership.  On June 25, 1998, the General  Partner filed a
motion seeking dismissal of the action. In lieu of responding to the motion, the
plaintiffs  filed an amended  complaint.  The General Partner filed demurrers to
the amended complaint which were heard February 1999.

Pending the ruling on such  demurrers,  settlement  negotiations  commenced.  On
November 2, 1999,  the parties  executed and filed a Stipulation  of Settlement,
settling claims, subject to court approval, on behalf of the Partnership and all
limited partners who owned units as of November 3, 1999. Preliminary approval of
the  settlement  was obtained on November 3, 1999 from the Court,  at which time
the Court set a final  approval  hearing for  December  10,  1999.  Prior to the
December  10,  1999  hearing,  the  Court  received  various  objections  to the
settlement, including a challenge to the Court's preliminary approval based upon
the alleged lack of authority of prior lead counsel to enter the settlement.  On
December  14,  1999,  the General  Partner  and its  affiliates  terminated  the
proposed settlement.  In February 2000, counsel for some of the named plaintiffs
filed a motion to disqualify plaintiff's lead and liaison counsel who negotiated
the settlement.  On June 27, 2000, the Court entered an order disqualifying them
from the case and an appeal was taken  from the order on  October  5,  2000.  On
December 4, 2000, the Court  appointed the law firm of Lieff Cabraser  Heimann &
Bernstein  LLP as new  lead  counsel  for  plaintiffs  and the  putative  class.
Plaintiffs  filed a third  amended  complaint on January 19,  2001.  On March 2,
2001,  the  General  Partner  and its  affiliates  filed a demurrer to the third
amended  complaint.  On May 14, 2001,  the Court heard the demurrer to the third
amended  complaint.  On July 10,  2001,  the Court  issued  an order  sustaining
defendants'  demurrer on certain grounds.  On July 20, 2001,  Plaintiffs filed a
motion for  reconsideration  of the Court's July 10, 2001 order granting in part
and denying in part defendants' demurrer. On September 7, 2001, Plaintiffs filed
a fourth amended class and derivative action  complaint.  On September 12, 2001,
the Court denied Plaintiffs' motion for reconsideration. On October 5, 2001, the
General Partner and affiliated defendants filed a demurrer to the fourth amended
complaint,  which was heard on December 11, 2001. On February 2, 2002, the Court
served its order granting in part the demurrer.  The Court has dismissed without
leave  to amend  certain  of the  plaintiffs'  claims.  On  February  11,  2002,
plaintiffs  filed a motion seeking to certify a putative class  comprised of all
non-affiliated  persons  who own or have owned  units in the  partnerships.  The
General Partner and affiliated  defendants oppose the motion. On April 29, 2002,
the Court held a hearing on plaintiffs' motion for class  certification and took
the matter under submission after further briefing, as ordered by the court, was
submitted by the parties.  On July 10, 2002, the Court entered an order vacating
the  current  trial  date of  January  13,  2003 (as well as the  pre-trial  and
discovery cut-off dates) and stayed the case in its entirety through November 7,
2002 so that the parties can have an opportunity to discuss settlement.

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 first amended complaint in the Heller action is
brought as a purported  derivative  action,  and asserts  claims for among other
things  breach  of  fiduciary  duty;  unfair  competition;   conversion,  unjust
enrichment;  and judicial  dissolution.  Plaintiffs in the Nuanes action filed a
motion to  consolidate  the Heller action with the Nuanes action and stated that
the Heller action was filed in order to preserve the derivative claims that were
dismissed  without  leave to amend in the Nuanes action by the Court order dated
July 10, 2001. On October 5, 2001, the General Partner and affiliated defendants
moved to strike the first  amended  complaint in its entirety for  violating the
Court's  July 10, 2001 order  granting  in part and denying in part  defendants'
demurrer in the Nuanes action, or  alternatively,  to strike certain portions of
the  complaint  based on the statute of  limitations.  Other  defendants  in the
action demurred to the fourth amended complaint,  and,  alternatively,  moved to
strike the  complaint.  On December  11, 2001,  the court heard  argument on the
motions and took the matters under  submission.  On February 4, 2002,  the Court
served  notice of its order  granting  defendants'  motion to strike  the Heller
complaint  as a violation  of its July 10, 2001 order in the Nuanes  action.  On
March 27, 2002, the plaintiffs  filed a notice  appealing the order striking the
complaint. The parties are currently in the midst of briefing that appeal.

The  General  Partner  does not  anticipate  that any  costs,  whether  legal or
settlement  costs,   associated  with  these  cases  will  be  material  to  the
Partnership's overall operations.

The  Partnership is unaware of any other pending or outstanding  litigation that
is not of a routine nature arising in the ordinary course of business.

ITEM 2.     MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

The  matters  discussed  in this Form  10-QSB  contain  certain  forward-looking
statements  and  involve  risks and  uncertainties  (including  changing  market
conditions,   competitive  and  regulatory   matters,   etc.)  detailed  in  the
disclosures  contained  in this  Form  10-QSB  and the  other  filings  with the
Securities and Exchange Commission made by the Registrant from time to time. The
discussion of the  Registrant's  business and results of  operations,  including
forward-looking  statements  pertaining  to such  matters,  does not  take  into
account the effects of any changes to the  Registrant's  business and results of
operation.  Accordingly,  actual  results  could  differ  materially  from those
projected in the forward-looking  statements as a result of a number of factors,
including those identified herein.

The Partnership's  investment  properties consist of three apartment  complexes.
The following table sets forth the average  occupancy of the properties for each
of the six month periods ended June 30, 2002 and 2001:

                                                   Average Occupancy
      Property                                      2002       2001

      Ventura Landing Apartments                    92%        94%
        Orlando, Florida

      Village Green Apartments                      92%        94%
        Altamonte Springs, Florida

      West Chase Apartments                         93%        90%
        Lexington, Kentucky

The  General  Partner  attributes  the  increase  in  occupancy  at  West  Chase
Apartments to increased  marketing  efforts and competitive  pricing relative to
other apartment complexes in the Lexington area.

Results of Operations

The  Partnership's  net  loss  for  the six  months  ended  June  30,  2002  was
approximately $6,000 as compared to net income of approximately  $12,000 for the
six months ended June 30, 2001. The  Partnership's net loss for the three months
ended  June 30,  2002 was  approximately  $7,000  as  compared  to a net loss of
approximately  $9,000 for the three months ended June 30, 2001.  The increase in
net loss for the six months  ended June 30,  2002 is due to a decrease  in total
revenues,  partially  offset by a decrease in total expenses.  Net loss remained
relatively  constant for the three months ended June 30, 2002,  as a decrease in
total  revenues  was  offset by a decrease  in total  expenses.  Total  revenues
decreased due to a decrease in rental income, partially offset by an increase in
other  income.  Other  income  increased  primarily  due to  increases  in lease
cancellation  fees at Ventura Landing  Apartments and West Chase  Apartments and
late  charges  at Village  Green  Apartments  and  Ventura  Landing  Apartments,
partially offset by a decrease in interest income,  as a result of lower average
cash balances in interest bearing  accounts.  Rental income decreased  primarily
due to the  decreases  in occupancy at Ventura  Landing  Apartments  and Village
Green  Apartments  and an  increase  in bad  debt  expense  at both  properties,
partially  offset  by an  increase  in the  average  rental  rate  at all  three
investment properties and the increase in occupancy at West Chase Apartments.

Total  expenses  decreased for both the three and six months ended June 30, 2002
due to  decreases in both  operating  and general and  administrative  expenses,
partially  offset  by  increases  in both  interest  and  depreciation  expense.
Operating expense decreased primarily due to decreases in maintenance expense at
Ventura  Landing  Apartments  and West  Chase  Apartments  and  payroll  related
expenses at all three  properties,  partially offset by an increase in insurance
expense as a result of  increased  premiums  at  Village  Green  Apartments  and
Ventura  Landing  Apartments.  General  and  administrative  expenses  decreased
primarily due to the special partnership  management fees charged during the six
months ended June 30, 2001, as a result of the  distributions  from  operations,
and, to a lesser extent, a decrease in management  reimbursements to the General
Partner  allowed under the Partnership  Agreement.  Also included in general and
administrative  expenses  for the six months  ended  June 30,  2002 and 2001 are
costs associated with the quarterly and annual communications with investors and
regulatory agencies and the annual audit required by the Partnership  Agreement.
Depreciation  expense  increased  at  all  three  investment  properties  due to
property  improvements  and  replacements  placed into  service  during the past
twelve  months.  Interest  expense  increased  due  to  the  refinancing  of the
mortgages at Ventura  Landing  Apartments  and Village Green  Apartments in 2001
which resulted in larger loan balances,  partially offset by the loss recognized
on the early  extinguishment of debt at Ventura Landing Apartments (as discussed
below).  Property tax expense  remained  relatively  constant for the comparable
periods.

As part of the ongoing  business plan of the  Partnership,  the General  Partner
monitors the rental market  environment of each 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,  due to changing  market
conditions,  which  can  result  in the use of  rental  concessions  and  rental
reductions to offset softening market conditions, there is no guarantee that the
General Partner will be able to sustain such a plan.

Liquidity and Capital Resources

At June 30, 2002, the Partnership had cash and cash equivalents of approximately
$303,000,  compared to approximately  $1,957,000 at June 30, 2001. Cash and cash
equivalents  decreased  approximately  $33,000 from the Partnership's year ended
December  31,  2001,  due to  approximately  $405,000 of cash used in  financing
activities,  partially  offset by  approximately  $287,000  of cash  provided by
operating  activities  and  approximately  $85,000 of cash provided by investing
activities.  Cash provided by investing  activities  consisted of the release of
insurance proceeds related to the 2001 casualty at West Chase Apartments and net
receipts  from escrow  accounts  maintained  by the mortgage  lender,  partially
offset  by  property  improvements  and  replacements.  Cash  used in  financing
activities  consisted of payments of principal on the mortgages  encumbering the
Partnership's  properties and distributions to partners. 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 Registrant and to comply with Federal,
state, and local legal and regulatory requirements. Capital improvements planned
for each of the Registrant's properties are detailed below.

Village Green Apartments

For 2002, the  Partnership  has budgeted,  but is not limited to,  approximately
$76,000 for capital  improvements,  consisting  primarily of gutter replacement,
structural   improvements   and  air   conditioning   unit  and  floor  covering
replacements.  The Partnership  completed  approximately $71,000 of budgeted and
non-budgeted  capital  improvements  at Village Green  Apartments as of June 30,
2002,  consisting  primarily of gutter replacement,  air conditioning  upgrades,
structural improvements, and floor covering replacement. These improvements were
funded from  operations.  Additional  improvements  may be  considered  and will
depend on the physical condition of the property as well as replacement reserves
and anticipated cash flow generated by the property.

West Chase Apartments

For 2002, the  Partnership  has budgeted,  but is not limited to,  approximately
$45,000 for capital improvements, consisting primarily of parking area upgrades,
fencing improvements and floor covering  replacement.  The Partnership completed
approximately  $35,000 of capital  improvements  at West Chase  Apartments as of
June 30, 2002, consisting primarily of construction related to the damage caused
by a January 2001 fire (as discussed in "Note C" to the  financial  statements),
office computers and floor covering replacement.  These improvements were funded
from  operations  and  insurance  proceeds.   Additional   improvements  may  be
considered and will depend on the physical  condition of the property as well as
anticipated cash flow generated by the property.

Ventura Landing Apartments

For 2002, the  Partnership  has budgeted,  but is not limited to,  approximately
$67,000 for capital improvements  consisting primarily of parking area upgrades,
structural   improvements,   and  air  conditioning   unit  and  floor  covering
replacements.   The  Partnership  completed  approximately  $42,000  of  capital
improvements  at Ventura  Landing  Apartments  as of June 30,  2002,  consisting
primarily  of  parking  area  upgrades,  office  computers,  and floor  covering
replacement.  These  improvements  were funded from  operations and  replacement
reserves.  Additional  improvements  may be  considered  and will  depend on the
physical  condition  of  the  property  as  well  as  replacement  reserves  and
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 Registrant's distributable cash flow, if
any, may be adversely affected at least in the short term.

The  Registrant's  current assets are thought to be sufficient for any near-term
needs (exclusive of capital  improvements) of the Registrant.  On June 28, 2001,
the Partnership  refinanced the mortgage encumbering Ventura Landing Apartments.
The refinancing  replaced  indebtedness of  approximately  $2,200,000 with a new
mortgage in the amount of $4,225,000. Approximately $60,000 of the proceeds were
placed into a  restricted  escrow  account  maintained  by the  lender.  The new
mortgage  carries a stated interest rate of 7.54%.  The interest rate on the old
mortgage  was 7.33%.  Principal  and interest  payments on the mortgage  loan of
approximately  $34,000  are due monthly  until the loan  matures in July 2021 at
which time the mortgage will be fully  amortized.  The Partnership  recognized a
loss on the early  extinguishment  of debt of  approximately  $36,000 due to the
write-off of unamortized loan costs.

On July 24, 2001, the Partnership  refinanced the mortgage  encumbering  Village
Green  Apartments.   The  refinancing  replaced  indebtedness  of  approximately
$2,000,000  with a new  mortgage  in the  amount  of  $3,575,000.  Approximately
$117,000 of the proceeds was placed into a restricted escrow account  maintained
by the lender.  The new mortgage  carries a stated  interest rate of 7.54%.  The
interest rate on the old mortgage was 7.33%.  Principal and interest payments on
the  mortgage  loan of  approximately  $29,000  are due  monthly  until the loan
matures in August 2021 at which time the mortgage will be fully amortized.

The mortgage  indebtedness on West Chase Apartments of approximately  $1,084,000
requires  monthly  payments of principal and interest  until the loan matures in
December 2019, at which time the loan will be fully amortized.

Pursuant to the Partnership Agreement,  the term of the Partnership is scheduled
to expire on December 31, 2010. Accordingly,  prior to such date the Partnership
will need to either  sell its  investment  properties  or extend the term of the
Partnership.

The Partnership  distributed  the following  amounts during the six months ended
June 30, 2002 and 2001 (in thousands, except per unit data):

<TABLE>
<CAPTION>

                      Six Months      Per Limited       Six Months      Per Limited
                        Ended         Partnership         Ended         Partnership
                    June 30, 2002         Unit        June 30, 2001         Unit
<S>                    <C>              <C>              <C>               <C>
Operations             $   --           $   --           $  484            $ 2.93
Refinancing
  Proceeds (1)            303             1.91               --                --
                       $  303           $ 1.91           $  484            $ 2.93

(1)   From previously  undistributed  proceeds from the 2001  refinancing of Village
      Green Apartments.
</TABLE>

Future cash  distributions  will depend on the levels of net cash generated from
operations,   the  availability  of  cash  reserves,  and  the  timing  of  debt
maturities,   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 additional  distributions to
its partners during the remainder of 2002 or subsequent periods.

Other

In addition to its indirect  ownership of the general  partner  interests in the
Partnership,  AIMCO and its affiliates owned 81,419.50 limited partnership units
(the "Units") in the Partnership representing 51.34% of the outstanding Units at
June 30, 2002. 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 of limited partnership interest in the Partnership
in  exchange  for  cash or a  combination  of cash and  units  in the  operating
partnership of AIMCO either through private  purchases or tender offers. In this
regard, on June 25, 2002, a tender offer by AIMCO  Properties,  L.P., to acquire
any and all of the units not owned by affiliates  of AIMCO for a purchase  price
of $9.00 per unit expired. Pursuant to this offer, AIMCO acquired 2,678.50 units
during  the  quarter  ended  June 30,  2002.  Under the  Partnership  Agreement,
unitholders  holding a majority  of the Units are  entitled  to take action with
respect to a variety of matters which would include voting on certain amendments
to the  Partnership  Agreement  and voting to remove the General  Partner.  As a
result  of its  ownership  of  51.34% of the  outstanding  Units,  AIMCO is in a
position  to  control  all voting  decisions  with  respect  to the  Registrant.
Although the General  Partner owes fiduciary  duties to the limited  partners of
the Partnership,  the General Partner also owed 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

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  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 an impairment in 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 will offer rental concessions during  particularly slow months or in
response  to  heavy  competition  from  other  similar  complexes  in the  area.
Concessions are charged to income as incurred.

                           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 purports to
assert  claims on behalf of a class of  limited  partners  and  derivatively  on
behalf of a number of limited partnerships (including the Partnership) which 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 which 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 seek monetary damages and equitable  relief,  including  judicial
dissolution of the  Partnership.  On June 25, 1998, the General  Partner filed a
motion seeking dismissal of the action. In lieu of responding to the motion, the
plaintiffs  filed an amended  complaint.  The General Partner filed demurrers to
the amended complaint which were heard February 1999.

Pending the ruling on such  demurrers,  settlement  negotiations  commenced.  On
November 2, 1999,  the parties  executed and filed a Stipulation  of Settlement,
settling claims, subject to court approval, on behalf of the Partnership and all
limited partners who owned units as of November 3, 1999. Preliminary approval of
the  settlement  was obtained on November 3, 1999 from the Court,  at which time
the Court set a final  approval  hearing for  December  10,  1999.  Prior to the
December  10,  1999  hearing,  the  Court  received  various  objections  to the
settlement, including a challenge to the Court's preliminary approval based upon
the alleged lack of authority of prior lead counsel to enter the settlement.  On
December 14, 1999, the Managing  General  Partner and its affiliates  terminated
the  proposed  settlement.  In  February  2000,  counsel  for some of the  named
plaintiffs filed a motion to disqualify plaintiff's lead and liaison counsel who
negotiated  the  settlement.  On June  27,  2000,  the  Court  entered  an order
disqualifying  them  from the case and an  appeal  was  taken  from the order on
October 5, 2000. On December 4, 2000, the Court  appointed the law firm of Lieff
Cabraser  Heimann & Bernstein  LLP as new lead  counsel for  plaintiffs  and the
putative class.  Plaintiffs filed a third amended complaint on January 19, 2001.
On March 2, 2001,  the  Managing  General  Partner  and its  affiliates  filed a
demurrer to the third amended  complaint.  On May 14, 2001,  the Court heard the
demurrer to the third amended  complaint.  On July 10, 2001, the Court issued an
order  sustaining  defendants'  demurrer on certain  grounds.  On July 20, 2001,
Plaintiffs filed a motion for reconsideration of the Court's July 10, 2001 order
granting in part and denying in part defendants' demurrer. On September 7, 2001,
Plaintiffs  filed a fourth amended class and  derivative  action  complaint.  On
September 12, 2001, the Court denied Plaintiffs' motion for reconsideration.  On
October 5, 2001, the Managing General Partner and affiliated  defendants filed a
demurrer to the fourth amended complaint,  which was heard on December 11, 2001.
On February 2, 2002,  the Court served its order  granting in part the demurrer.
The  Court has  dismissed  without  leave to amend  certain  of the  plaintiffs'
claims.  On February 11, 2002,  plaintiffs  filed a motion  seeking to certify a
putative  class  comprised of all  non-affiliated  persons who own or have owned
units  in  the  partnerships.   The  Managing  General  Partner  and  affiliated
defendants  oppose the motion.  On April 29,  2002,  the Court held a hearing on
plaintiffs' motion for class  certification and took the matter under submission
after further  briefing,  as ordered by the court, was submitted by the parties.
On July 10, 2002,  the Court entered an order vacating the current trial date of
January 13, 2003 (as well as the  pre-trial  and  discovery  cut-off  dates) and
stayed the case in its entirety through November 7, 2002 so that the parties can
have an opportunity to discuss settlement.

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 first amended complaint in the Heller action is
brought as a purported  derivative  action,  and asserts  claims for among other
things  breach  of  fiduciary  duty;  unfair  competition;   conversion,  unjust
enrichment;  and judicial  dissolution.  Plaintiffs in the Nuanes action filed a
motion to  consolidate  the Heller action with the Nuanes action and stated that
the Heller action was filed in order to preserve the derivative claims that were
dismissed  without  leave to amend in the Nuanes action by the Court order dated
July 10, 2001. On October 5, 2001, the Managing  General  Partner and affiliated
defendants  moved to strike the first  amended  complaint  in its  entirety  for
violating  the Court's July 10, 2001 order  granting in part and denying in part
defendants'  demurrer in the Nuanes action, or alternatively,  to strike certain
portions of the complaint based on the statute of limitations.  Other defendants
in the action  demurred to the fourth  amended  complaint,  and,  alternatively,
moved to strike the complaint. On December 11, 2001, the court heard argument on
the motions  and took the matters  under  submission.  On February 4, 2002,  the
Court  served  notice of its order  granting  defendants'  motion to strike  the
Heller complaint as a violation of its July 10, 2001 order in the Nuanes action.
On March 27, 2002,  the plaintiffs  filed a notice  appealing the order striking
the complaint. The parties are currently in the midst of briefing that appeal.

The  General  Partner  does not  anticipate  that any  costs,  whether  legal or
settlement  costs,   associated  with  these  cases  will  be  material  to  the
Partnership's overall operations.

ITEM 6.     EXHIBITS AND REPORTS ON FORM 8-K

            a)    Exhibits:

                  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.

                  99    Certification of Chief  Executive   Officer   and  Chief
                        Financial Officer

b)    Reports on Form 8-K:

                  None filed during the quarter ended June 30, 2002.

                                   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/Patrick J. Foye
                                          Patrick J. Foye
                                          Executive Vice President


                                    By:   /s/ Thomas C. Novosel
                                          Thomas C. Novosel
                                          Senior Vice President
                                          and Chief Accounting Officer


                                    Date: August 14, 2002

Exhibit 99


                          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, 2002
as filed with the  Securities  and Exchange  Commission  on the date hereof (the
"Report"),  Patrick J. Foye, as the equivalent of the Chief Executive Officer of
the Partnership, and Paul J. McAuliffe, 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/Patrick J. Foye
                                    Name:  Patrick J. Foye
                                    Date:  August 14, 2002


                                           /s/Paul J. McAuliffe
                                    Name:  Paul J. McAuliffe
                                    Date:  August 14, 2002


This  certification  accompanies  the  Report  pursuant  to  Section  906 of the
Sarbanes-Oxley  Act of 2002 and shall not,  except to the extent required by the
Sarbanes-Oxley  Act of 2002, be deemed filed by the  Partnership for purposes of
Section 18 of the Securities Exchange Act of 1934, as amended.