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 March 31, 2005


[ ]   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)

                                 March 31, 2005


<TABLE>
<CAPTION>



Assets
<S>                                                                          <C>
   Cash and cash equivalents                                                 $ 58
   Receivables and deposits                                                      75
   Other assets                                                                 358
   Investment properties:
      Land                                                    $ 407
      Buildings and related personal property                 10,209
                                                              10,616
      Less accumulated depreciation                           (8,267)         2,349
                                                                            $ 2,840
Liabilities and Partners' Deficit
Liabilities
   Accounts payable                                                          $ 178
   Tenant security deposit liabilities                                           57
   Accrued property taxes                                                        45
   Other liabilities                                                            184
   Due to affiliates (Note B)                                                   964
   Mortgage notes payable                                                     7,091

Partners' Deficit
   General partners                                           $(1,896)
   Limited partners (158,582 units issued and
      outstanding)                                            (3,783)        (5,679)
                                                                            $ 2,840


         See Accompanying Notes to Consolidated Financial Statements
</TABLE>



<PAGE>





                       CONSOLIDATED CAPITAL PROPERTIES III

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

<TABLE>
<CAPTION>


                                                                   Three Months Ended
                                                                       March 31,
                                                                  2005           2004

Revenues:
<S>                                                              <C>             <C>
  Rental income                                                  $ 626           $ 535
  Other income                                                       46              58
     Total revenues                                                 672             593

Expenses:
  Operating                                                         310             329
  General and administrative                                         65              51
  Depreciation                                                      117             113
  Interest                                                          157             145
  Property taxes                                                     45              44
     Total expenses                                                 694             682

Net loss                                                         $ (22)          $ (89)

Net loss allocated to general partners (4%)                       $ (1)          $ (4)
Net loss allocated to limited partners (96%)                        (21)            (85)
                                                                 $ (22)          $ (89)

Net loss per limited partnership unit                           $ (0.13)        $ (0.54)


         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, 2004                158,582       $(1,895)   $  (3,762)    $ (5,657)

Net loss for the three months
   ended March 31, 2005                    --             (1)         (21)         (22)

Partners' deficit
   at March 31, 2005                   158,582       $(1,896)   $  (3,783)    $ (5,679)



         See Accompanying Notes to Consolidated Financial Statements
</TABLE>



<PAGE>



                       CONSOLIDATED CAPITAL PROPERTIES III

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

<TABLE>
<CAPTION>

                                                                 Three Months Ended
                                                                       March 31,
                                                                  2005         2004
Cash flows from operating activities:
<S>                                                             <C>           <C>
  Net loss                                                      $   (22)      $   (89)
  Adjustments to reconcile net loss to net cash
   provided by operating activities:
   Casualty loss                                                     (5)           --
   Depreciation                                                     117           113
   Amortization of loan costs                                         6             6
   Change in accounts:
      Receivables and deposits                                       28            13
      Other assets                                                  (44)          (60)
      Due to affiliates                                              61            27
      Accounts payable                                              (57)          (34)
      Tenant security deposit liabilities                            (8)           (1)
      Accrued property taxes                                         45            44
      Other liabilities                                             (50)           22

       Net cash provided by operating activities                     71            41

Cash flows used in investing activities:
  Property improvements and replacements                           (144)          (34)

Cash flows from financing activities:
  Payments on mortgage notes payable                                (64)          (50)
  Advances from affiliate                                           112            51

       Net cash provided by financing activities                     48             1

Net (decrease) increase in cash and cash equivalents                (25)            8

Cash and cash equivalents at beginning of period                     83            52

Cash and cash equivalents at end of period                      $    58       $    60

Supplemental disclosure of cash flow information:
  Cash paid for interest                                        $   159       $   139
Supplemental disclosure of non-cash activity:
  Property improvements and replacements included in
    accounts payable                                            $   141       $    --

         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 month period ended March 31, 2005
are not  necessarily  indicative  of the results  that may be  expected  for the
fiscal year ending  December 31,  2005.  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,  2004.  The General  Partner is  wholly-owned  by Apartment  Investment  and
Management Company ("AIMCO"), a publicly traded real estate investment trust.

Note B - Transactions with Affiliated Parties

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

Affiliates of the General  Partner receive 5% of gross receipts from both of the
Partnership's  properties  as  compensation  for providing  property  management
services.  The  Partnership  paid to such affiliates  approximately  $33,000 and
$29,000 for the three months ended March 31, 2005 and 2004, respectively,  which
are included in operating expenses.

Affiliates of the General Partner charged the Partnership for  reimbursement  of
accountable  administrative  expenses  amounting  to  approximately  $80,000 and
$39,000 for the three months ended March 31, 2005 and 2004, respectively.  These
amounts are  included  in general and  administrative  expenses  and  investment
properties.   The  portion  of  these  reimbursements   included  in  investment
properties  for the three  months  ended  March  31,  2005 are fees  related  to
construction management services provided by an affiliate of the General Partner
of approximately  $34,000. No such fees were incurred for the three months ended
March 31, 2004. The construction management service fees are calculated based on
a percentage of current additions to investment  properties.  At March 31, 2005,
approximately  $278,000  of such  fees were owed to  affiliates  of the  General
Partner 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 three months ended March 31, 2005 and 2004, no
special  management  fees  were  paid as no  distributions  from  cash flow from
operations were made.

During the three  months  ended March 31,  2005 and 2004,  an  affiliate  of the
General Partner advanced the Partnership  approximately  $112,000 and $51,000 to
fund  operations  and capital  improvements  at Ventura  Landing  Apartments and
certain audit related liabilities. Interest is accrued at the prime rate plus 2%
(7.75% at March 31, 2005).  Interest expense was  approximately  $11,000 for the
three months ended March 31, 2005. Interest expense was less than $1,000 for the
three  months  ended March 31,  2004.  At March 31,  2005,  the total  amount of
advances and accrued interest was approximately  $686,000 and is included in due
to affiliates. Subsequent to March 31, 2005, an affiliate of the General Partner
advanced the Partnership  approximately  $70,000 to fund capital improvements at
Ventura Landing Apartments.

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 three  months  ended March 31, 2005,  the  Partnership  was
charged by AIMCO and its affiliates  approximately  $21,000 for hazard insurance
coverage  and fees  associated  with policy  claims  administration.  Additional
charges  will be incurred  by the  Partnership  during  2005 as other  insurance
policies renew later in the year. The  Partnership  was charged by AIMCO and its
affiliates approximately $32,000 for insurance coverage and fees associated with
policy claims administration during the year ended December 31, 2004.

Note C - Casualty Events

In August 2004,  Ventura Landing  Apartments  experienced  damage from Hurricane
Charley. As of March 31, 2005, the Partnership estimates damage of approximately
$210,000.  The  Partnership  does not expect a casualty  loss to result from the
damage as the damaged assets were fully depreciated.

In September 2004, Ventura Landing Apartments  experienced damage from Hurricane
Frances. As of March 31, 2005, the Partnership estimates damage of approximately
$37,000.  The  Partnership  does not expect a casualty  loss to result  from the
damage as the damaged assets were fully depreciated.

In September 2004,  Village Green Apartments  experienced  damage from Hurricane
Frances.  During  the  three  months  ended  March  31,  2005,  the  Partnership
recognized  a  casualty  gain of  approximately  $5,000  due to a change  in the
estimated  building  damages at the  property,  which is  reflected in operating
expense.

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 captioned Heller v. Insignia Financial Group (the "Heller action") was
filed against the same  defendants  that are named in the Nuanes  action.  On or
about August 6, 2001, the plaintiffs filed a first amended complaint. The Heller
action was brought as a purported  derivative  action,  and asserted claims for,
among other things,  breach of fiduciary duty, unfair  competition,  conversion,
unjust  enrichment,  and judicial  dissolution.  On January 28, 2002,  the trial
court granted defendants motion to strike the complaint.

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

On June 13, 2003, the court granted final approval of the settlement and entered
judgment in both the Nuanes and Heller actions.  On August 12, 2003, an objector
("Objector") filed an appeal (the "Appeal") seeking to vacate and/or reverse the
order approving the settlement and entering  judgment  thereto.  On May 4, 2004,
the Objector filed a second appeal  challenging the court's use of a referee and
its order requiring Objector to pay those fees.

On March 21, 2005, the Court of Appeals issued opinions in both pending appeals.
With regard to the settlement and judgment entered thereto, the Court of Appeals
vacated  the trial  court's  order and  remanded  to the trial court for further
findings  on the basis that the "state of the record is  insufficient  to permit
meaningful  appellate  review".  With regard to the second appeal,  the Court of
Appeals  reversed the order requiring the Objector to pay referee fees. On April
26, 2005, the Court of Appeals  lifted the stay of a pending appeal  relating to
the Heller action and the trial court's order striking the  complaint.  On April
28, 2005, the Objector  filed a Petition for Review with the California  Supreme
Court in connection with the opinion vacating the order approving settlement and
remanding  for further  findings.  The General  Partner and its  affiliates  are
currently scheduled to file an answer to Objector's petition on May 18, 2005.

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.

AIMCO Properties L.P. and NHP Management Company, both affiliates of the General
Partner,  are defendants in a lawsuit alleging that they 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.  The  complaint  attempts  to
bring 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. and NHP Management Company failed
to  compensate  maintenance  workers  for time  that they  were  required  to be
"on-call."  Additionally,  the complaint  alleges AIMCO  Properties L.P. and NHP
Management  Company 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.  Oral  argument  relating to the  certification  of the  collective
action took place on May 12, 2005 and the parties await a ruling from the Court.
Although the outcome of any litigation is uncertain, AIMCO Properties, L.P. does
not believe that the ultimate outcome will have a material adverse effect on its
financial  condition or results of operations.  Similarly,  the General  Partner
does not believe that the ultimate  outcome will have a material  adverse effect
on the Partnership's consolidated financial condition or results of operations.

The  Partnership  is unaware  of any other  pending  or  outstanding  litigation
matters  involving  it or its  investment  properties  that are not of a routine
nature arising in the ordinary course of business.

Environmental

Various  Federal,  state and local laws subject  property owners or operators to
liability for management,  and the costs of removal or  remediation,  of certain
hazardous  substances  present on a property.  Such laws often impose  liability
without regard to whether the owner or operator knew of, or was responsible for,
the release or presence of the  hazardous  substances.  The  presence of, or the
failure to manage or remedy properly,  hazardous substances may adversely affect
occupancy at affected  apartment  communities and the ability to sell or finance
affected properties.  In addition to the costs associated with investigation and
remediation  actions brought by government  agencies,  the presence of hazardous
substances  on a  property  could  result in claims by  private  plaintiffs  for
personal injury,  disease,  disability or other  infirmities.  Various laws also
impose  liability for the cost of removal,  remediation or disposal of hazardous
substances  through a  licensed  disposal  or  treatment  facility.  Anyone  who
arranges for the disposal or treatment of hazardous  substances  is  potentially
liable  under such laws.  These laws often impose  liability  whether or not the
person arranging for the disposal ever owned or operated the disposal  facility.
In  connection  with  the  ownership  and  operation  of  its  properties,   the
Partnership could  potentially be liable for environmental  liabilities or costs
associated with its properties.

Mold

The Partnership is aware of lawsuits  against owners and managers of multifamily
properties asserting claims of personal injury and property damage caused by the
presence of mold, some of which have resulted in substantial  monetary judgments
or settlements. The Partnership has only limited insurance coverage for property
damage loss claims  arising from the  presence of mold and for  personal  injury
claims  related  to  mold  exposure.  Affiliates  of the  General  Partner  have
implemented a national  policy and  procedures to prevent or eliminate mold from
its  properties  and the  General  Partner  believes  that these  measures  will
eliminate,  or at least minimize, the effects that mold could have on residents.
To date,  the  Partnership  has not incurred any material  costs or  liabilities
relating to claims of mold exposure or to abate mold conditions. Because the law
regarding  mold is unsettled and subject to change the General  Partner can make
no assurance that liabilities resulting from the presence of or exposure to mold
will  not have a  material  adverse  effect  on the  Partnership's  consolidated
financial condition or results of operations.

SEC Investigation

The  Central  Regional  Office of the  United  States  Securities  and  Exchange
Commission (the "SEC") is conducting a formal investigation  relating to certain
matters.  Although  the staff of the SEC is not limited in the areas that it may
investigate,   AIMCO  believes  the  areas  of  investigation   include  AIMCO's
miscalculated   monthly  net  rental  income  figures  in  third  quarter  2003,
forecasted  guidance,  accounts  payable,  rent  concessions,   vendor  rebates,
capitalization of payroll and certain other costs, and tax credit  transactions.
At the end of the first quarter of 2005, the SEC added certain tender offers for
limited partnership interests as an area of investigation.  AIMCO is cooperating
fully.  AIMCO is not able to predict  when the  investigation  will be resolved.
AIMCO does not believe  that the ultimate  outcome will have a material  adverse
effect  on its  consolidated  financial  condition  or  results  of  operations.
Similarly,  the General Partner does not believe that the ultimate  outcome will
have a  material  adverse  effect on the  Partnership's  consolidated  financial
condition or results of operations.


<PAGE>




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

The matters discussed in this report contain certain forward-looking statements,
including, without limitation, statements regarding future financial performance
and the effect of government  regulations.  Actual results may differ materially
from those described in the forward-looking statements and will be affected by a
variety of risks and factors including,  without limitation:  national and local
economic  conditions;  the terms of  governmental  regulations  that  affect the
Registrant and interpretations of those regulations; the competitive environment
in which the Registrant operates;  financing risks, including the risk that cash
flows from operations may be insufficient to meet required payments of principal
and interest;  real estate risks, including variations of real estate values and
the general  economic  climate in local markets and  competition  for tenants in
such markets;  litigation,  including  costs  associated  with  prosecuting  and
defending  claims  and  any  adverse   outcomes,   and  possible   environmental
liabilities.   Readers  should  carefully  review  the  Registrant's   financial
statements and the notes thereto,  as well as the risk factors  described in the
documents  the  Registrant  files  from  time to time  with the  Securities  and
Exchange Commission.

The Partnership's  investment properties consist of two apartment complexes. The
following  table sets forth the average  occupancy of the properties for each of
the three month periods ended March 31, 2005 and 2004:

                                                   Average Occupancy
      Property                                      2005       2004

      Ventura Landing Apartments                    96%        94%
        Orlando, Florida

      Village Green Apartments                      96%        91%
        Altamonte Springs, Florida

The General  Partner  attributes  the  increase in  occupancy  at Village  Green
Apartments to market growth in the Altamonte Springs area.

The  Partnership's  financial  results depend upon a number of factors including
the  ability to attract  and  maintain  tenants  at the  investment  properties,
interest  rates on mortgage  loans,  costs  incurred  to operate the  investment
properties,  general  economic  conditions  and weather.  As part of the ongoing
business plan of the Partnership, the General Partner monitors the rental market
environment of its investment properties to assess the feasibility of increasing
rents, maintaining or increasing occupancy levels and protecting the Partnership
from increases in expenses.  As part of this plan, the General Partner  attempts
to protect the  Partnership  from the burden of  inflation-related  increases in
expenses by increasing  rents and  maintaining a high overall  occupancy  level.
However,  the  General  Partner  may use  rental  concessions  and  rental  rate
reductions  to offset  softening  market  conditions;  accordingly,  there is no
guarantee that the General Partner will be able to sustain such a plan. Further,
a number of factors that are outside the control of the Partnership  such as the
local  economic  climate and  weather can  adversely  or  positively  affect the
Partnership's financial results.

Results of Operations

The  Partnership's  net loss for the  three  months  ended  March  31,  2005 was
approximately  $22,000,  as compared to a net loss of approximately  $89,000 for
the three  months  ended March 31,  2004.  The decrease in net loss is due to an
increase in total revenues,  partially  offset by an increase in total expenses.
The increase in total revenues is due to an increase in rental income, partially
offset by a decrease in other income. The increase in rental income is primarily
due to  increases in  occupancy  and average  rental rates and a decrease in bad
debt expense at both of the Partnership's investment properties. The decrease in
other  income  is  primarily   due  to  decreases  in  late  charges  and  lease
cancellation fees at Ventura Landing Apartments.

The  increase  in  total  expenses  is due to  increases  in  both  general  and
administrative  and  interest  expenses,  partially  offset  by  a  decrease  in
operating  expenses.   Both  depreciation  and  property  tax  expense  remained
relatively constant for the comparable periods. The increase in interest expense
is primarily due to an increase in interest on advances from an affiliate of the
General  Partner.  The  decrease in  operating  expenses is  primarily  due to a
decrease in contract  maintenance  expense,  partially  offset by  increases  in
payroll  related  expenses  at Village  Green  Apartments,  utility  expenses at
Ventura  Landing  Apartments,  and  clean  up  costs  associated  with  the 2004
hurricane damage at Ventura Landing Apartments (as discussed below). General and
administrative  expenses  increased  primarily  due to an increase in management
reimbursements to the General Partner as allowed under the Partnership Agreement
and professional expenses associated with the administration of the Partnership.
Also included in general and administrative  expenses for the three months ended
March 31,  2005 and 2004 are costs  associated  with the  quarterly  and  annual
communications  with  investors  and  regulatory  agencies  and the annual audit
required by the Partnership Agreement.

In August 2004,  Ventura Landing  Apartments  experienced  damage from Hurricane
Charley. As of March 31, 2005, the Partnership estimates damage of approximately
$210,000.  The  Partnership  does not expect a casualty  loss to result from the
damage as the damaged assets were fully depreciated.

In September 2004, Ventura Landing Apartments  experienced damage from Hurricane
Frances. As of March 31, 2005, the Partnership estimates damage of approximately
$37,000.  The  Partnership  does not expect a casualty  loss to result  from the
damage as the damaged assets were fully depreciated.

In September 2004,  Village Green Apartments  experienced  damage from Hurricane
Frances.  During  the  three  months  ended  March  31,  2005,  the  Partnership
recognized  a  casualty  gain of  approximately  $5,000  due to a change  in the
estimated  building  damages at the  property,  which is  reflected in operating
expense.

Liquidity and Capital Resources

At  March  31,  2005,  the  Partnership   had  cash  and  cash   equivalents  of
approximately $58,000,  compared to approximately $60,000 at March 31, 2004. The
decrease in cash and cash  equivalents of approximately  $25,000,  from December
31, 2004, is due to approximately $144,000 of cash used in investing activities,
partially  offset  by  approximately  $71,000  of  cash  provided  by  operating
activities and approximately  $48,000 of cash provided by financing  activities.
Cash  used in  investing  activities  consisted  of  property  improvements  and
replacements.  Cash  provided  by  financing  activities  consisted  of advances
received from an affiliate of the General Partner,  partially offset by payments
of principal  made on the mortgages  encumbering  the  Partnership's  investment
properties.  The Partnership  invests its working  capital  reserves in interest
bearing accounts.

The sufficiency of existing  liquid assets to meet future  liquidity and capital
expenditure   requirements   is  directly   related  to  the  level  of  capital
expenditures  required at the  properties  to  adequately  maintain the physical
assets and other  operating needs of the Partnership and to comply with Federal,
state, and local legal and regulatory requirements. The General Partner monitors
developments in the area of legal and regulatory  compliance.  For example,  the
Sarbanes-Oxley Act of 2002 mandates or suggests  additional  compliance measures
with regard to governance,  disclosure, audit and other areas. In light of these
changes,  the Partnership  expects that it will incur higher expenses related to
compliance.   Capital   improvements  planned  for  each  of  the  Partnership's
properties are detailed below.

Village Green Apartments

During  the  three  months  ended  March 31,  2005,  the  Partnership  completed
approximately  $26,000 of capital  improvements  at  Village  Green  Apartments,
consisting  primarily of floor covering  replacement.  These  improvements  were
funded  from  operations.   The  Partnership  regularly  evaluates  the  capital
improvement  needs  of the  property.  While  the  Partnership  has no  material
commitments for property improvements and replacements,  certain routine capital
expenditures are anticipated during 2005. Such capital  expenditures will depend
on the  physical  condition  of the  property as well as  anticipated  cash flow
generated by the property.

Ventura Landing Apartments

During  the  three  months  ended  March 31,  2005,  the  Partnership  completed
approximately  $259,000 of capital  improvements at Ventura Landing  Apartments,
consisting  primarily of plumbing upgrades,  and floor covering  replacement and
construction  related to the  hurricane  damage,  as  discussed  in  "Results of
Operations". These improvements were funded from operations and advances from an
affiliate  of the General  Partner.  The  Partnership  regularly  evaluates  the
capital improvement needs of the property. While the Partnership has no material
commitments for property improvements and replacements,  certain routine capital
expenditures are anticipated during 2005. Such capital  expenditures will depend
on the  physical  condition  of the  property as well as  anticipated  cash flow
generated by the property.

Capital  expenditures will be incurred only if cash is available from operations
or from  Partnership  reserves.  To the extent  that  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  $7,091,000  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 three months ended
March 31, 2005 or 2004. Future cash  distributions  will depend on the levels of
net cash generated from  operations,  property  sales and/or  refinancings.  The
Partnership's cash available for distribution is reviewed on a monthly basis. In
light of the amounts accrued and payable to affiliates of the General Partner at
March 31, 2005,  there can be no assurance  that the  Partnership  will generate
sufficient  funds  from  operations  after  capital  expenditures  to permit any
distributions to its partners during 2005 or subsequent periods.

Other

In addition to its indirect  ownership of the general  partner  interests in the
Partnership,  AIMCO and its affiliates owned 83,947.50 limited partnership units
(the "Units") in the Partnership representing 52.94% of the outstanding Units at
March 31, 2005. 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 52.94% 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

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.
The Partnership will offer rental concessions during particularly slow months or
in response  to heavy  competition  from other  similar  complexes  in the area.
Rental income attributable to leases, net of any concessions, is recognized on a
straight-line  basis over the term of the lease.  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.

ITEM 3.     CONTROLS AND PROCEDURES

(a) Disclosure Controls and Procedures.  The Partnership's management,  with the
participation of the principal executive officer and principal financial officer
of the General Partner,  who are the equivalent of the  Partnership's  principal
executive officer and principal financial officer,  respectively,  has evaluated
the  effectiveness of the Partnership's  disclosure  controls and procedures (as
such term is defined  in Rules  13a-15(e)  and  15d-15(e)  under the  Securities
Exchange  Act of 1934,  as amended  (the  "Exchange  Act")) as of the end of the
period covered by this report. Based on such evaluation, the principal executive
officer and  principal  financial  officer of the General  Partner,  who are the
equivalent  of the  Partnership's  principal  executive  officer  and  principal
financial  officer,  respectively,  have  concluded  that, as of the end of such
period, the Partnership's disclosure controls and procedures are effective.

(b) Internal Control Over Financial  Reporting.  There have not been any changes
in the Partnership's  internal control over financial reporting (as such term is
defined in Rules  13a-15(f)  and  15d-15(f)  under the Exchange  Act) during the
fiscal quarter to which this report relates that have  materially  affected,  or
are reasonably likely to materially affect,  the Partnership's  internal control
over financial reporting.


<PAGE>


                           PART II - OTHER INFORMATION


ITEM 1.     LEGAL PROCEEDINGS

In March 1998, several putative unit holders of limited partnership units of the
Partnership  commenced an action  entitled  Rosalie  Nuanes,  et al. v. Insignia
Financial Group, Inc., et al. (the "Nuanes action") in the Superior Court of the
State of  California  for the  County  of San  Mateo.  The  plaintiffs  named as
defendants,  among others,  the Partnership,  its General Partner and several of
their affiliated  partnerships and corporate  entities.  The action purported to
assert  claims on behalf of a class of  limited  partners  and  derivatively  on
behalf of a number of limited partnerships  (including the Partnership) that are
named as nominal defendants, challenging, among other things, the acquisition of
interests in certain General Partner entities by Insignia  Financial Group, Inc.
("Insignia") and entities that were, at one time,  affiliates of Insignia;  past
tender offers by the Insignia  affiliates to acquire limited  partnership units;
management of the  partnerships  by the Insignia  affiliates;  and the series of
transactions  which  closed on October 1, 1998 and  February  26,  1999  whereby
Insignia and Insignia  Properties Trust,  respectively,  were merged into AIMCO.
The plaintiffs sought monetary damages and equitable relief,  including judicial
dissolution of the Partnership. In addition, during the third quarter of 2001, a
complaint captioned Heller v. Insignia Financial Group (the "Heller action") was
filed against the same  defendants  that are named in the Nuanes  action.  On or
about August 6, 2001, the plaintiffs filed a first amended complaint. The Heller
action was brought as a purported  derivative  action,  and asserted claims for,
among other things,  breach of fiduciary duty, unfair  competition,  conversion,
unjust  enrichment,  and judicial  dissolution.  On January 28, 2002,  the trial
court granted defendants motion to strike the complaint.

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

On June 13, 2003, the court granted final approval of the settlement and entered
judgment in both the Nuanes and Heller actions.  On August 12, 2003, an objector
("Objector") filed an appeal (the "Appeal") seeking to vacate and/or reverse the
order approving the settlement and entering  judgment  thereto.  On May 4, 2004,
the Objector filed a second appeal  challenging the court's use of a referee and
its order requiring Objector to pay those fees.

On March 21, 2005, the Court of Appeals issued opinions in both pending appeals.
With regard to the settlement and judgment entered thereto, the Court of Appeals
vacated  the trial  court's  order and  remanded  to the trial court for further
findings  on the basis that the "state of the record is  insufficient  to permit
meaningful  appellate  review".  With regard to the second appeal,  the Court of
Appeals  reversed the order requiring the Objector to pay referee fees. On April
26, 2005, the Court of Appeals  lifted the stay of a pending appeal  relating to
the Heller action and the trial court's order striking the  complaint.  On April
28, 2005, the Objector  filed a Petition for Review with the California  Supreme
Court in connection with the opinion vacating the order approving settlement and
remanding  for further  findings.  The General  Partner and its  affiliates  are
currently scheduled to file an answer to Objector's petition on May 18, 2005.

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.

AIMCO Properties L.P. and NHP Management Company, both affiliates of the General
Partner,  are defendants in a lawsuit alleging that they 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.  The  complaint  attempts  to
bring 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. and NHP Management Company failed
to  compensate  maintenance  workers  for time  that they  were  required  to be
"on-call."  Additionally,  the complaint  alleges AIMCO  Properties L.P. and NHP
Management  Company 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.  Oral  argument  relating to the  certification  of the  collective
action took place on May 12, 2005 and the parties await a ruling from the Court.
Although the outcome of any litigation is uncertain, AIMCO Properties, L.P. does
not believe that the ultimate outcome will have a material adverse effect on its
financial  condition or results of operations.  Similarly,  the General  Partner
does not believe that the ultimate  outcome will have a material  adverse effect
on the Partnership's consolidated financial condition or results of operations.

ITEM 5.     OTHER INFORMATION

            None.

ITEM 6.     EXHIBITS

            See Exhibit Index.



<PAGE>


                                   SIGNATURES



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


                                    CONSOLIDATED CAPITAL PROPERTIES III


                                    By:   CONCAP EQUITIES, INC.
                                          General Partner


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


                                    By:   /s/Stephen B. Waters
                                           Stephen B. Waters
                                           Vice President


                                    Date: May 16, 2005


<PAGE>


                        CONSOLIDATED CAPITAL PARTNERS III

                                  EXHIBIT INDEX

Exhibit Number


3.1         Certificate of Limited Partnership, as amended to date (Exhibit 3 to
            the  Registrant's  Annual  Report  on Form  10-K for the year  ended
            December 31, 1991, is incorporated herein by reference).

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

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

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

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  of the equivalent of the Chief Executive  Officer and
            Chief  Financial  Officer  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: May 16, 2005

                                    /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: May 16, 2005

                                    /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 March 31,
2005 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:  May 16, 2005


                                           /s/Stephen B. Waters
                                    Name:  Stephen B. Waters
                                    Date:  May 16, 2005

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.