FORM 10-QSB--QUARTERLY OR TRANSITIONAL REPORT UNDER SECTION 13 OR 15(d) OF
                       THE SECURITIES EXCHANGE ACT OF 1934
                        Quarterly or Transitional Report

                     U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   Form 10-QSB

(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
    ACT OF 1934

                  For the quarterly period ended March 31, 2000


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


                For the transition period from _________to _________

                         Commission file number 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___

<PAGE>

                         PART I - FINANCIAL INFORMATION

ITEM 1.     FINANCIAL STATEMENTS

a)

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

                                 March 31, 2000
<TABLE>
<CAPTION>

Assets
<S>                                                                          <C>
   Cash and cash equivalents                                                 $  701
   Receivables and deposits                                                     169
   Restricted escrows                                                           152
   Other assets                                                                 221
   Investment properties:
      Land                                                    $  507
      Buildings and related personal property                 10,646
                                                              11,153
      Less accumulated depreciation                           (7,535)         3,618
                                                                            $ 4,861

Liabilities and Partners' (Deficit) Capital
Liabilities
   Accounts payable                                                          $   89
   Tenant security deposit liabilities                                           98
   Accrued property taxes                                                        41
   Other liabilities                                                            184
   Mortgage notes payable                                                     5,344

Partners' (Deficit) Capital
   General partners                                           $(1,826)
   Limited partners (158,582 units issued and
      outstanding)                                                931          (895)
                                                                            $ 4,861
</TABLE>

            See Accompanying Notes to Consolidated Financial Statements

<PAGE>

b)

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


                                                      Three Months Ended
                                                           March 31,
                                                       2000          1999
Revenues:
   Rental income                                      $  733        $ 694
   Other income                                           50           48
      Total revenues                                     783          742

Expenses:
   Operating                                             370          376
   General and administrative                             65           87
   Depreciation                                          137          105
   Interest                                              115           85
   Property taxes                                         51           46
      Total expenses                                     738          699

Income from continuing operations                         45           43
Income from discontinued operations                       --          108

Net income                                             $  45        $ 151

Net income allocated to general partners (4%)          $   2        $   6
Net income allocated to limited partners (96%)            43          145
                                                       $  45        $ 151

Per limited partnership unit:
Income from continuing operations                      $0.27        $0.26
Income from discontinued operations                       --         0.65

Net income                                             $0.27        $0.91

Distribution per limited partnership unit              $4.10        $12.48

            See Accompanying Notes to Consolidated Financial Statements

<PAGE>

c)

                       CONSOLIDATED CAPITAL PROPERTIES III
        CONSOLIDATED STATEMENT OF CHANGES IN PARTNERS' (DEFICIT) CAPITAL
                                   (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) capital
   at December 31, 1999                158,582       $(1,828)     $ 1,538      $   (290)

Distribution to limited partners           --             --         (650)         (650)

Net income for the three months
   ended March 31, 2000                    --              2           43            45

Partners' (deficit) capital
   at March 31, 2000                   158,582       $(1,826)      $  931       $  (895)
</TABLE>

            See Accompanying Notes to Consolidated Financial Statements

<PAGE>

d)

                       CONSOLIDATED CAPITAL PROPERTIES III
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)
                                 (in thousands)

<TABLE>
<CAPTION>

                                                                 Three Months Ended
                                                                       March 31,

                                                                   2000         1999
Cash flows from operating activities:
<S>                                                               <C>          <C>
  Net income                                                      $   45        $ 151
  Adjustments to reconcile net income to net cash
   provided by operating activities:
   Depreciation                                                      137          117
   Amortization of lease commissions and loan costs                    8           12
   Change in accounts:
      Receivables and deposits                                        13          (45)
      Other assets                                                    (3)         (22)
      Accounts payable                                               (48)          (8)
      Tenant security deposit liabilities                              1            2
      Accrued property taxes                                          41           52
      Other liabilities                                              (75)           2

       Net cash provided by operating activities                     119          261

Cash flows from investing activities:
  Property improvements and replacements                            (193)         (71)
  Net deposits to restricted escrows                                 (19)         (19)
       Net cash used in investing activities                        (212)         (90)

Cash flows from financing activities:
  Payment of loan costs                                              (10)          --
  Payments on mortgage note payable                                   (6)          --
  Distributions to limited partners                                 (650)      (1,985)

       Net cash used in financing activities                        (666)      (1,985)

Net decrease in cash and cash equivalents                           (759)      (1,814)

Cash and cash equivalents at beginning of period                   1,460        2,883

Cash and cash equivalents at end of period                       $   701      $ 1,069

Supplemental disclosure of cash flow information:
  Cash paid for interest                                         $    99      $    77
</TABLE>

At December  31,  1999,  property  improvements  and  replacements  and accounts
payable were adjusted by approximately $167,000 for non-cash activity.

            See Accompanying Notes to Consolidated Financial Statements

<PAGE>

e)

                       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 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 month period ended March 31, 2000, are not  necessarily  indicative of the
results that may be expected for the fiscal year ending  December 31, 2000.  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, 1999.

Consolidation

The Partnership's  financial  statements  include the accounts of ConCap Village
Green Associates,  Ltd. The Partnership owns a 99% interest in this partnership,
and it has the ability to control the major operating and financial  policies of
this partnership. All inter-entity transactions have been eliminated.

Certain  reclassifications  have been made to the 1999 information to conform to
the 2000 presentation.

Note B - Transfer of Control

Pursuant  to a series  of  transactions  which  closed  on  October  1, 1998 and
February 26, 1999,  Insignia Financial Group, Inc. and Insignia Properties Trust
merged into Apartment  Investment and Management Company  ("AIMCO"),  a publicly
traded real estate investment trust, with AIMCO being the surviving  corporation
(the "Insignia Merger").  As a result, AIMCO acquired 100% ownership interest in
the General Partner.  The General Partner does not believe that this transaction
has had or will have a material  effect on the  affairs  and  operations  of the
Partnership.

Note C - Discontinued Segment

On July 8, 1999,  Professional  Plaza, the only commercial property owned by the
Partnership,  was sold to an unaffiliated  third party.  Due to the sale of this
property,  the results of the commercial segment have been shown as "Income from
discontinued operations" for the three months ended March 31, 1999. Professional
Plaza had total revenues of approximately  $229,000 and income from discontinued
operations of approximately $108,000 for the three months ended March 31, 1999.

Note D - 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  Limited  Partnership  Agreement  ("Partnership   Agreement")  provides  for
payments to affiliates of the General Partner for property  management  services
based on a percentage of revenue;  for a partnership  management fee equal to 9%
of the  total  distributions  made to  limited  partners  from  cash  flow  from
operations; and for reimbursements of certain expenses incurred by affiliates of
the General Partner on behalf of the Partnership.

<PAGE>

The following  amounts were paid or accrued to the General Partner or affiliates
during  each  of the  three  month  periods  ended  March  31,  2000  and  1999,
respectively:

                                                                  2000      1999
                                                                  (in thousands)

 Property management fees (included in operating expenses)        $ 39      $ 37

 Reimbursement for services of affiliates (included in
  investment properties and general and
  administrative expenses)                                          29        35

 Partnership management fees (included in general and
   administrative expenses)                                         --        15

During the three months ended March 31, 2000 and 1999, affiliates of the General
Partner  were  entitled  to  receive  5% of  gross  receipts  from  all  of  the
Registrant's  residential  properties as  compensation  for  providing  property
management  services.  The  Registrant  paid  to such  affiliates  approximately
$39,000  and  $37,000  for the  three  months  ended  March  31,  2000 and 1999,
respectively.

An  affiliate  of the General  Partner  received  reimbursement  of  accountable
administrative  expenses amounting to approximately  $29,000 and $35,000 for the
three months ended March 31, 2000 and 1999, respectively.

The Limited  Partnership  Agreement  ("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.  Under  this
provision of the Partnership  Agreement, a fee of approximately $15,000 was paid
to the General  Partner during the three months ended March 31, 1999. No similar
management fee was paid to the General Partner during the  corresponding  period
in 2000.

AIMCO and its affiliates currently own 72,466.5 limited partnership units in the
Partnership  representing  45.697% of the  outstanding  units. 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 make one or more  additional
offers to acquire  additional limited  partnership  interests in the Partnership
for cash or in exchange for units in the operating  partnership of AIMCO.  Under
the  Partnership  Agreement,  unitholders  holding a  majority  of the Units are
entitled to take action with respect to a variety of matters. As a result of its
ownership  of  45.697%  of the  outstanding  units,  AIMCO is in a  position  to
significantly  influence all voting  decisions  with respect to the  Registrant.
When voting on matters, AIMCO would in all likelihood vote the Units it acquired
in a manner  favorable to the interest of the General  Partner  because of their
affiliation with the General Partner.

Note E - Distributions

During the three months ended March 31, 2000, a  distribution  of  approximately
$650,000 ($4.10 per limited  partnership  unit) was paid to the limited partners
from financing proceeds on West Chase Apartments.  During the three months ended
March  31,  1999,  a cash  distribution  was  paid of  approximately  $1,985,000
(approximately  $1,979,000  to  the  limited  partners  or  $12.48  per  limited
partnership unit) of which approximately $159,000 (approximately $153,000 to the
limited partners or $0.96 per limited partnership unit) was attributable to cash
flow  from  operations  and   approximately   $1,826,000   ($11.52  per  limited
partnership unit) represented a return of capital.

Note F - Financing of Investment Property

On December 1, 1999, the Partnership obtained financing on West Chase Apartments
in the amount of  $1,150,000.  The loan carries a stated  interest rate of 7.87%
and matures on December 1, 2019. The Partnership  received net proceeds from the
financing  in the amount of  approximately  $1,124,000.  The  Partnership  spent
approximately $29,000 on loan costs during the year ended December 31, 1999. The
Partnership  spent  approximately  $10,000 on  additional  loan costs during the
three months ended March 31, 2000. These loan costs are included in other assets
on the consolidated balance sheet.

Note G - Segment Information

The  Partnership  had  two  reportable  segments:   residential  properties  and
commercial properties.  The Partnership's  residential property segment consists
of three apartment complexes, one each in Orlando,  Florida;  Altamonte Springs,
Florida;  and Lexington,  Kentucky.  The  Partnership  rents  apartment units to
tenants for terms that are typically twelve months or less. On July 8, 1999, the
commercial  property was sold to an unrelated party.  Therefore,  the commercial
segment is reflected as  discontinued  operations for the 1999 period (see "Note
C" for further discussion regarding the sale).

The  Partnership  evaluates  performance  based on segment  profit (loss) before
depreciation.  The accounting policies of the reportable segment are the same as
those described in the Partnership's Annual Report on Form 10-KSB for the fiscal
year ended December 31, 1999.

The  Partnership's  reportable  segments are  investment  properties  that offer
different  products  and  services.  The  reportable  segments  are each managed
separately  because they  provide  distinct  services  with  different  types of
products and customers.

Segment information for the three months ended March 31, 2000 and 1999, is shown
in the tables below (in  thousands).  The "Other"  column  includes  Partnership
administration  related  items and  income  and  expense  not  allocated  to the
reportable segment.

2000                                          Residential      Other      Totals

Rental income                                    $  733       $   --      $ 733
Other income                                         44            6         50
Interest expense                                    115           --        115
Depreciation                                        137           --        137
General and administrative expenses                  --           65         65
Segment profit (loss)                               104          (59)        45
Total assets                                      4,395          466      4,861
Capital expenditures for investment
  properties                                         26           --         26

<PAGE>

1999                          Residential     Commercial       Other     Totals
                                            (discontinued)
Rental income                    $  694          $  --         $  --     $ 694
Other income                         33             --            15        48
Interest expense                     85             --            --        85
Depreciation                        105             --            --       105
General and administrative
  expenses                           --             --            87        87
Income from discontinued
  operations                         --            108            --       108
Segment profit (loss)               115            108           (72)      151
Total assets                      4,117          1,456           606     6,179
Capital expenditures for
  investment properties              48             23            --        71

Note H - 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. in the Superior Court of the State of California
for the County of San Mateo. The plaintiffs  named as defendants,  among others,
the   Partnership,   the  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  the  acquisition  by Insignia  Financial  Group,  Inc.
("Insignia")  and  entities  which  were,  at one time,  affiliates  of Insignia
("Insignia  Affiliates") of interests in certain general partner entities,  past
tender offers by Insignia  Affiliates to acquire limited  partnership units, the
management of partnerships  by Insignia  Affiliates and the Insignia Merger (see
"Note B - Transfer  of  Control").  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  have  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 final court approval, on
behalf of the Partnership and all limited  partners who own units as of November
3, 1999. Preliminary approval of the settlement was obtained on November 3, 1999
from the  Superior  Court of the State of  California,  County of San Mateo,  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 class  plaintiffs'  counsel  to  enter  the
settlement.  On  December  14,  1999,  the General  Partner  and its  affiliates
terminated the proposed  settlement.  Certain  plaintiffs have filed a motion to
disqualify  some of the plaintiffs'  counsel in the action.  The General Partner
does not anticipate that costs associated with this case 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.

<PAGE>

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 disclosure
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 discussions 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 operations. 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 three month periods ended March 31, 2000 and 1999:

                                                  Average Occupancy

      Property                                     2000       1999

      Ventura Landing Apartments                    93%        90%
        Orlando, Florida

      Village Green Apartments                      95%        93%
        Altamonte Springs, Florida

      West Chase Apartments                         92%        96%
        Lexington, Kentucky

The General  Partner  attributes  the increase in  occupancy at Ventura  Landing
Apartments to various  upgrades and  improvements to the property  combined with
increased  marketing  efforts.  The General  Partner  attributes the decrease in
occupancy  at West Chase  Apartments  to decreased  concessions  and a transient
clientele.

Results of Operations

The  Partnership's  net income for the three  months  ended  March 31,  2000 was
approximately $45,000 as compared to approximately $151,000 for the three months
ended March 31, 1999.  The decrease in net income is primarily  attributable  to
income from the discontinued  operations of Professional  Plaza of approximately
$108,000  included  in net income for the three  months  ended  March 31,  1999.
Professional Plaza was sold July 8, 1999, as discussed below.

Excluding the impact of the operations of Professional Plaza, the Registrant had
income of  approximately  $45,000 and $43,000 for the three months  ending March
31, 2000 and 1999,  respectively.  The slight increase in income from continuing
operations for the three months ended March 31, 2000 was due to increased  total
revenues partially offset by increased total expenses.  Total revenues increased
primarily due to an increase in rental income. Rental income increased primarily
due to increased  average rental rates at all of the  Partnership's  residential
properties  and improved  occupancy at Village  Green and Ventura  Landing which
more  than  offset  the  decrease  in  occupancy  at West  Chase.  In  addition,
concession   expenses   decreased  at  all  of  the  Partnership's   residential
properties.

Total  expenses  increased   primarily  due  to  an  increase  in  interest  and
depreciation expenses, which was partially offset by a decrease in operating and
general and  administrative  expenses.  Depreciation  expense  increased  due to
capital  improvements  completed  during  1999 which are now being  depreciated.
Interest  expense  increased  due to the  financing of West Chase  Apartments in
December 1999.  Operating expenses  decreased  primarily due to decreased salary
expenses  and  contract  services  at  all  of  the  Partnership's   residential
properties.  General and administrative  expenses decreased primarily due to the
fact that a special  asset  management  fee was not paid to the General  Partner
during the three  months  ended March 31,  2000 but was during the three  months
ended March 31, 1999 in association with the  distribution  from operations made
to the limited partners.  There were no such  distributions  made to the limited
partners during the three months ended March 31, 2000, so no special  management
fee was paid during this period. In addition, there was a decrease in management
reimbursements  to the  General  Partner for the period  ended  March 31,  2000.
Included in general and administrative expenses at both March 31, 2000 and 1999,
are  management   reimbursements  to  the  General  Partner  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 are also included.

On July 8, 1999,  Professional  Plaza, the only commercial property owned by the
Partnership,  was sold to an unaffiliated  third party.  Due to the sale of this
property,  the results of the commercial segment have been shown as "Income from
discontinued operations" for the three months ended March 31, 1999. Professional
Plaza had total revenues of approximately  $229,000 and income from discontinued
operations of approximately $108,000 for the three months ended March 31, 1999.

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

As of March  31,  2000,  the  Partnership  held  cash and  cash  equivalents  of
approximately  $701,000 compared to approximately  $1,069,000 at March 31, 1999.
The decrease in cash and cash  equivalents  of  approximately  $759,000 from the
Partnership's year ended December 31, 1999, is due to approximately  $212,000 of
cash used in investing  activities  and  approximately  $666,000 of cash used in
financing activities partially offset by approximately $119,000 of cash provided
by operating activities. Cash used in investing activities consisted of property
improvements and replacements and net deposits to escrow accounts  maintained by
the  mortgage  lenders.   Cash  used  in  financing   activities   consisted  of
distributions to the limited partners,  and, to a lesser extent, loan costs, and
payments on the mortgage note payable  encumbering  West Chase  Apartments.  The
Registrant invests its working capital reserves in a money market account.

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

During  the  three  months  ended  March 31,  2000,  the  Partnership  completed
approximately  $10,000  of capital  improvements  at  Village  Green  Apartments
consisting primarily of structural improvements.  These improvements were funded
from  cash  provided  by  operations.  The  Partnership  evaluated  the  capital
improvement  needs  of the  property  for  the  year.  The  amount  budgeted  is
approximately $52,000, consisting primarily of air conditioning unit replacement
and carpet  replacements.  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

During  the  three  months  ended  March 31,  2000,  the  Partnership  completed
approximately   $16,000  of  capital   improvements  at  West  Chase  Apartments
consisting  primarily of carpet and vinyl  replacement  and  plumbing  upgrades.
These improvements were funded from cash provided by operations. The Partnership
evaluated the capital improvement needs of the property for the year. The amount
budgeted is approximately $40,000, consisting primarily of appliances and carpet
and vinyl  replacements.  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.

Ventura Landing

During the three months ended March 31, 2000, the  Partnership  did not complete
any  capital  improvements  at  Ventura  Landing  Apartments.   The  Partnership
evaluated the capital improvement needs of the property for the year. The amount
budgeted is approximately $58,000, consisting primarily of air conditioning unit
replacement and carpet replacements.  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  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 required, 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.  The  mortgage
indebtedness  at Village  Green and Ventura  Landing  Apartments  of  $4,200,000
requires interest only payments with the principal balance due in November 2003.
On December 1, 1999, the Partnership obtained financing on West Chase Apartments
in the  amount  of  $1,150,000  and the  current  balance  of this  mortgage  is
approximately $1,144,000.  Payments are due on the first day of each month until
the loan  matures on  December  1, 2019.  The General  Partner  will  attempt to
refinance such  indebtedness  and/or sell the properties  prior to such maturity
dates. If the properties  cannot be refinanced or sold for a sufficient  amount,
the Registrant may risk losing such properties through foreclosure.

During the three months ended March 31, 2000, a  distribution  of  approximately
$650,000 ($4.10 per limited  partnership unit) was made  representing  financing
proceeds on West Chase Apartments all of which was paid to the limited partners.
During the three months ended March 31, 1999, the Registrant made a distribution
of approximately $1,985,000 (approximately $1,979,000 to the limited partners or
$12.48  per  limited   partnership   unit)  of  which   approximately   $159,000
(approximately $153,000 to the limited partners or $0.96 per limited partnership
unit) was from cash flow from operations and  approximately  $1,826,000  ($11.52
per limited  partnership  unit)  represented  a return of  capital.  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 distribution policy is reviewed on
a semi-annual  basis. There can be no assurance,  however,  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 2000 or subsequent periods.

<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. in the Superior Court of the State of California
for the County of San Mateo. The plaintiffs  named as defendants,  among others,
the   Partnership,   the  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  the  acquisition  by Insignia  Financial  Group,  Inc.
("Insignia")  and  entities  which  were,  at one time,  affiliates  of Insignia
("Insignia  Affiliates") of interests in certain general partner entities,  past
tender offers by Insignia  Affiliates to acquire limited  partnership units, the
management of partnerships  by Insignia  Affiliates and the Insignia Merger (see
"Part I - Financial Information, Item I. Financial Statements, Note B - Transfer
of  Control").  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 have 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 final court  approval,  on behalf of the Partnership and all
limited partners who own units as of November 3, 1999.  Preliminary  approval of
the  settlement  was obtained on November 3, 1999 from the Superior Court of the
State of  California,  County of San Mateo,  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
class  plaintiffs'  counsel to enter the  settlement.  On December 14, 1999, the
General Partner and its affiliates  terminated the proposed settlement.  Certain
plaintiffs have filed a motion to disqualify some of the plaintiffs'  counsel in
the action.  The General Partner does not anticipate that costs  associated with
this case will be material to the Partnership's overall operations.

ITEM 6.     EXHIBITS AND REPORTS ON FORM 8-K

            a)    Exhibits:

                  Exhibit 27, Financial Data Schedule, is filed as an exhibit to
                  this report.

            b)    Reports on Form 8-K:

                  None filed during the quarter ended March 31, 2000.


<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.
                                          Its General Partner

                                    By:   /s/Patrick J. Foye
                                          Patrick J. Foye
                                          Executive Vice President

                                    By:   /s/Martha L. Long
                                          Martha L. Long
                                          Senior Vice President
                                          and Controller

                                    Date: