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 September 30, 2001


[ ] 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___

                         PART I - FINANCIAL INFORMATION


ITEM 1.     FINANCIAL STATEMENTS

a)

                       CONSOLIDATED CAPITAL PROPERTIES III

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

                               September 30, 2001

<TABLE>
<CAPTION>


Assets
<S>                                                          <C>             <C>
   Cash and cash equivalents                                                 $  359
   Receivables and deposits                                                     203
   Restricted escrows                                                           178
   Other assets                                                                 466
   Investment properties:
      Land                                                    $  507
      Buildings and related personal property                 11,586
                                                              12,093
      Less accumulated depreciation                           (8,398)         3,695
                                                                            $ 4,901
Liabilities and Partners' Deficit
Liabilities
   Accounts payable                                                         $    79
   Tenant security deposit liabilities                                           93
   Accrued property taxes                                                       140
   Other liabilities                                                            250
   Mortgage notes payable                                                     8,884

Partners' Deficit
   General partners                                           $(1,874)
   Limited partners (158,582 units issued and
      outstanding)                                            (2,671)        (4,545)
                                                                            $ 4,901

            See Accompanying Notes to Consolidated Financial Statements
</TABLE>

<PAGE>




b)

                       CONSOLIDATED CAPITAL PROPERTIES III

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

<TABLE>
<CAPTION>

                                               Three Months              Nine Months
                                           Ended September 30,       Ended September 30,
                                            2001         2000         2001        2000
Revenues:
<S>                                        <C>          <C>         <C>          <C>
  Rental income                            $  755       $  742      $ 2,255      $ 2,204
  Other income                                 68           64          170          179
      Total revenues                          823          806        2,425        2,383

Expenses:
  Operating                                   452          373        1,192        1,086
  General and administrative                   69          111          272          284
  Depreciation                                146          140          441          417
  Interest                                    172          108          389          330
  Property taxes                               51           48          150          142
      Total expenses                          890          780        2,444        2,259

(Loss) income before extraordinary
  loss                                        (67)          26          (19)         124

Extraordinary loss on early
  extinguishment of debt                      (34)          --          (70)          --

Net (loss) income                          $ (101)       $  26        $ (89)       $ 124

Net (loss) income allocated to
  general partners (4%)                    $   (4)       $   1        $  (3)       $   5
Net (loss) income allocated to
  limited partners (96%)                      (97)          25          (86)         119

                                           $ (101)       $  26        $ (89)       $ 124
Per limited partnership unit:
  (Loss) income before extraordinary
    loss                                   $ (.41)      $ 0.16       $ (.12)       $0.75
  Extraordinary loss                         (.20)          --         (.42)          --
Net (loss) income                          $ (.61)      $ 0.16       $ (.54)       $0.75

Distributions per limited
  partnership unit                        $ 17.40       $   --       $20.33        $6.74


            See Accompanying Notes to Consolidated Financial Statements
</TABLE>

<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, 2000                158,582       $(1,838)    $    639     $ (1,199)

Distributions to partners                  --            (33)      (3,224)      (3,257)

Net loss for the nine months
   ended September 30, 2001                --             (3)         (86)         (89)

Partners' deficit
   at September 30, 2001               158,582       $(1,874)    $ (2,671)    $ (4,545)


            See Accompanying Notes to Consolidated Financial Statements
</TABLE>

<PAGE>


d)
                       CONSOLIDATED CAPITAL PROPERTIES III

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

<TABLE>
<CAPTION>

                                                                  Nine Months Ended
                                                                    September 30,
                                                                  2001         2000
Cash flows from operating activities:
<S>                                                              <C>           <C>
  Net (loss) income                                              $ (89)        $ 124
  Adjustments to reconcile net (loss) income to net cash
   provided by operating activities:
   Depreciation                                                      441          417
   Amortization of loan costs                                         23           24
   Extraordinary loss on early extinguishment of debt                 70           --
   Change in accounts:
      Receivables and deposits                                      (131)        (188)
      Other assets                                                   (21)          (2)
      Accounts payable                                                (4)         (90)
      Tenant security deposit liabilities                             (6)           2
      Accrued property taxes                                         140          132
      Other liabilities                                               78          (19)

       Net cash provided by operating activities                     501          400

Cash flows from investing activities:
  Property improvements and replacements                            (618)        (444)
  Net (deposits to) withdrawals from restricted escrows              (33)          10
       Net cash used in investing activities                        (651)        (434)

Cash flows from financing activities:
  Loan costs paid                                                   (338)         (10)
  Proceeds from refinancings                                       7,800           --
  Repayment of mortgage notes payable                             (4,200)          --
  Payments on mortgage notes payable                                 (41)         (18)
  Distributions to partners                                       (3,257)      (1,086)
  Advance from affiliate                                             150           --
  Payments on advance from affiliate                                (150)          --


       Net cash used in financing activities                         (36)      (1,114)

Net decrease in cash and cash equivalents                           (186)      (1,148)

Cash and cash equivalents at beginning of period                     545        1,460

Cash and cash equivalents at end of period                        $ 359        $ 312

Supplemental disclosure of cash flow information:
  Cash paid for interest                                          $ 343        $ 298

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
</TABLE>

<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 and nine month  periods  ended  September  30, 2001,  are not  necessarily
indicative  of the  results  that may be  expected  for the fiscal  year  ending
December 31, 2001. 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, 2000. The General  Partner is
an  affiliate  of Apartment  Investment  and  Management  Company  ("AIMCO"),  a
publicly traded real estate investment trust.

Principles of 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-partnership transactions have been eliminated.

Segment Reporting

Statement of Financial  Accounting Standards ("SFAS") No. 131, "Disclosure about
Segments of an Enterprise and Related Information" established standards for the
way that public business enterprises report information about operating segments
in annual  financial  statements  and  requires  that those  enterprises  report
selected  information about operating segments in interim financial reports.  It
also established  standards for related disclosures about products and services,
geographic  areas,  and  major  customers.  As  defined  in SFAS  No.  131,  the
Partnership  has only one  reportable  segment.  The  Managing  General  Partner
believes that  segment-based  disclosures  will not result in a more  meaningful
presentation than the financial statements as currently presented.

Note B - Transactions with Affiliated Parties

The Partnership has no employees and is dependent on the General Partner and its
affiliates for the management and administration of all Partnership  activities.
The  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.

The following  amounts were paid or accrued to the General Partner or affiliates
during the nine month periods ended September 30, 2001 and 2000, respectively:

                                                                  2001      2000
                                                                  (in thousands)

 Property management fees (included in operating expenses)        $122      $117
 Reimbursement for services of affiliates (included in
  investment properties and general and
  administrative expenses)                                         358       136
 Partnership management fees (included in general and
   administrative expenses)                                         46        41
 Refinance fee (included in other assets)                           78        --

Affiliates of the General  Partner are entitled to receive 5% of gross  receipts
from all of the Registrant's  properties as compensation for providing  property
management  services.  The  Registrant  paid  to such  affiliates  approximately
$122,000 and $117,000  for the nine months  ended  September  30, 2001 and 2000,
respectively.

An  affiliate  of the General  Partner  received  reimbursement  of  accountable
administrative expenses amounting to approximately $358,000 and $136,000 for the
nine months ended September 30, 2001 and 2000,  respectively.  Included in these
amounts are approximately  $215,000 and $1,000 of construction oversight charges
during the nine months ended September 30, 2001 and 2000, respectively.

The Partnership  Agreement  provides for a special management fee equal to 9% of
the  total  distributions  made to the  limited  partners  from  cash  flow from
operations to be paid to the General  Partner for  executive and  administrative
management  services.  During the nine months ended September 30, 2001 and 2000,
fees of  approximately  $46,000  and  $41,000,  respectively,  were  paid to the
General Partner.

During the nine months ended  September  30,  2001,  an affiliate of the General
Partner  advanced the Registrant  $150,000 to fund repairs  related to a fire at
West Chase  Apartments in January 2001.  This advance bore interest at the prime
rate plus 2%. The Partnership repaid this advance in July 2001 with a portion of
the refinancing proceeds from Ventura Landing Apartments.

Pursuant  to the  Partnership  Agreement,  the  General  Partner is  entitled to
receive a  commission  equal to 3% of the  aggregate  disposition  price of sold
properties. The Partnership paid a commission of $108,000 to the General Partner
related to the sale of Professional Plaza in 1999. This amount is subordinate to
the limited  partners  receiving  their original  capital  contributions  plus a
cumulative   preferred  return  of  6%  per  annum  of  their  adjusted  capital
investment,  as defined in the Partnership  Agreement.  If the limited  partners
have not received  these returns when the  Partnership  terminates,  the General
Partner will return this amount to the Partnership.

For  services  provided  in  connection  with  the  refinancing  of  two  of the
Partnership's investment properties,  the General Partner was paid approximately
$78,000  during the nine  months  ended  September  30,  2001.  These costs were
capitalized and are included in other assets on the consolidated balance sheet.

In addition to its indirect  ownership of the general  partner  interests in the
Partnership,  AIMCO and its affiliates  owned 78,548 limited  partnership  units
("Units") in the Partnership  representing  49.53% of the  outstanding  Units at
September  30,  2001. 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  which  would  include  voting on certain  amendments  to the
Partnership  Agreement and voting to remove the General Partner.  As a result of
its  ownership  of 49.53% of the  outstanding  Units,  AIMCO is in a position to
influence all such 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 its affiliation with
the General Partner.

Note C - Distributions

During the nine months ended  September 30, 2001,  the  Partnership  distributed
approximately  $3,257,000  (approximately  $3,224,000 to the limited partners or
$20.33  per  limited   partnership  unit),  of  which   approximately   $497,000
(approximately $464,000 to the limited partners or $2.93 per limited partnership
unit) was paid from  operations.  Approximately  $2,760,000  ($17.40 per limited
partnership unit) was paid to the limited partners from the refinancing proceeds
from Ventura Landing  Apartments and Village Green  Apartments.  During the nine
months ended  September  30, 2000,  the  Partnership  distributed  approximately
$1,086,000  (approximately  $1,069,000  to the  limited  partners  or $6.74  per
limited  partnership  unit),  of  which  approximately  $436,000  (approximately
$419,000 to the limited  partners  or $2.64 per  limited  partnership  unit) was
attributable  to cash flow from  operations.  Approximately  $650,000 ($4.10 per
limited  partnership  unit)  represented  1999 financing  proceeds on West Chase
Apartments which was distributed entirely to the limited partners.

Note D - Casualty

On January 31,  2001,  a fire  occurred at West Chase  Apartments.  Negotiations
concerning  this casualty are ongoing with the insurance  carrier.  No insurance
proceeds  have been  received as of September  30, 2001,  and thus the financial
statement impact cannot be practicably  determined at this time. The Partnership
does not expect to realize a loss from this event.

Note E - Refinancing and Extraordinary Loss

On June 28, 2001, the Partnership  refinanced the mortgage  encumbering  Ventura
Landing  Apartments.  The refinancing  replaced  indebtedness  of  approximately
$2,200,000  with a new  mortgage  in the  amount  of  $4,225,000.  Approximately
$60,000 of the proceeds were placed into a restricted escrow account  maintained
by the lender.  The new mortgage  carries a stated  interest rate of 7.54%.  The
interest rate on the old mortgage was 7.33%.  Principal and interest payments on
the  mortgage  loan of  approximately  $34,000  are due  monthly  until the loan
matures in July 2021 at which time the mortgage will be fully  amortized.  Total
capitalized loan costs were approximately  $180,000.  The Partnership recognized
an  extraordinary  loss on the  early  extinguishment  of debt of  approximately
$36,000 due to the write-off of unamortized loan costs.

On July 24, 2001, the Partnership  refinanced the mortgage  encumbering  Village
Green  Apartments.   The  refinancing  replaced  indebtedness  of  approximately
$2,000,000  with a new  mortgage  in the  amount  of  $3,575,000.  Approximately
$117,000 of the proceeds was placed into a restricted escrow account  maintained
by the lender.  The new mortgage  carries a stated  interest rate of 7.54%.  The
interest rate on the old mortgage was 7.33%.  Principal and interest payments on
the  mortgage  loan of  approximately  $29,000  are due  monthly  until the loan
matures in September  2021 at which time the mortgage  will be fully  amortized.
Total  capitalized  loan  costs were  approximately  $158,000.  The  Partnership
recognized  an  extraordinary  loss  on the  early  extinguishment  of  debt  of
approximately $34,000 due to the write-off of unamortized loan costs.

Note F - Legal Proceedings

In March 1998, several putative  unitholders of limited partnership units of the
Partnership  commenced an action  entitled  Rosalie  Nuanes,  et al. v. Insignia
Financial Group, Inc., et al. (the "Nuanes action") in the Superior Court of the
State of  California  for the  County  of San  Mateo.  The  plaintiffs  named as
defendants,  among others,  the Partnership,  its General Partner and several of
their  affiliated  partnerships and corporate  entities.  The action purports to
assert  claims on behalf of a class of  limited  partners  and  derivatively  on
behalf of a number of limited partnerships (including the Partnership) which are
named as nominal defendants, challenging, among other things, the acquisition of
interests in certain general partner entities by Insignia  Financial Group, Inc.
("Insignia") and entities which were, at one time, affiliates of Insignia;  past
tender offers by the Insignia  affiliates to acquire limited  partnership units;
management of the  partnerships  by the Insignia  affiliates;  and the series of
transactions  which  closed on October 1, 1998 and  February  26,  1999  whereby
Insignia and Insignia  Properties Trust,  respectively,  were merged into AIMCO.
The plaintiffs seek monetary damages and equitable  relief,  including  judicial
dissolution of the  Partnership.  On June 25, 1998, the General  Partner filed a
motion seeking dismissal of the action. In lieu of responding to the motion, the
plaintiffs  filed an amended  complaint.  The General Partner filed demurrers to
the amended complaint which were heard February 1999.

Pending the ruling on such  demurrers,  settlement  negotiations  commenced.  On
November 2, 1999,  the parties  executed and filed a Stipulation  of Settlement,
settling claims, subject to court approval, on behalf of the Partnership and all
limited partners who owned units as of November 3, 1999. Preliminary approval of
the  settlement  was obtained on November 3, 1999 from the Court,  at which time
the Court set a final  approval  hearing for  December  10,  1999.  Prior to the
December  10,  1999  hearing,  the  Court  received  various  objections  to the
settlement, including a challenge to the Court's preliminary approval based upon
the alleged lack of authority of prior lead counsel to enter the settlement.  On
December  14,  1999,  the General  Partner  and its  affiliates  terminated  the
proposed settlement.  In February 2000, counsel for some of the named plaintiffs
filed a motion to disqualify plaintiff's lead and liaison counsel who negotiated
the settlement.  On June 27, 2000, the Court entered an order disqualifying them
from the case and an appeal was taken  from the order on  October  5,  2000.  On
December 4, 2000, the Court  appointed the law firm of Lieff Cabraser  Heimann &
Bernstein  LLP as new  lead  counsel  for  plaintiffs  and the  putative  class.
Plaintiffs  filed a third  amended  complaint on January 19,  2001.  On March 2,
2001,  the  General  Partner  and its  affiliates  filed a demurrer to the third
amended  complaint.  On May 14, 2001,  the Court heard the demurrer to the third
amended  complaint.  On July 10,  2001,  the Court  issued  an order  sustaining
defendants'  demurrer on certain grounds.  On July 20, 2001,  plaintiffs filed a
motion for  reconsideration  of the Court's July 10, 2001 order granting in part
and denying in part defendants' demurrer. On September 7, 2001, plaintiffs filed
a fourth amended class and derivative action  complaint.  On September 12, 2001,
the Court denied plaintiffs' motion for reconsideration. On October 5, 2001, the
General Partner and affiliated defendants filed a demurrer to the fourth amended
complaint,  which,  together  with a  demurrer  filed  by other  defendants,  is
currently  scheduled  to be heard on November  15,  2001.  The Court has set the
matter for trial in January 2003.

During the third  quarter of 2001, a complaint  (the "Heller  action") was filed
against  the same  defendants  that are named in the  Nuanes  action,  captioned
Heller v. Insignia Financial Group. On or about August 6, 2001, plaintiffs filed
a first amended  complaint.  The first amended complaint in the Heller action is
brought as a purported  derivative  action,  and asserts  claims for among other
things  breach  of  fiduciary  duty;  unfair  competition;   conversion,  unjust
enrichment;  and judicial  dissolution.  Plaintiffs in the Nuanes action filed a
motion to  consolidate  the Heller action with the Nuanes action and stated that
the Heller action was filed in order to preserve the derivative claims that were
dismissed  without  leave to amend in the Nuanes action by the Court order dated
July 10, 2001. On October 5, 2001, the General Partner and affiliated defendants
moved to strike the first  amended  complaint in its entirety for  violating the
Court's  July 10, 2001 order  granting  in part and denying in part  defendants'
demurrer in the Nuanes action, or  alternatively,  to strike certain portions of
the  complaint  based on the statute of  limitations.  Other  defendants  in the
action demurred to the fourth amended complaint,  and,  alternatively,  moved to
strike  the  complaint.  The  matters  are  currently  scheduled  to be heard on
November 15, 2001.

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

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


<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 nine month periods ended September 30, 2001 and 2000:

                                                   Average Occupancy
      Property                                      2001       2000

      Ventura Landing Apartments                    94%        94%
        Orlando, Florida

      Village Green Apartments                      94%        94%
        Altamonte Springs, Florida

      West Chase Apartments                         90%        91%
        Lexington, Kentucky

Results of Operations

The  Partnership's  net loss for the nine months  ended  September  30, 2001 was
approximately  $89,000 compared to net income of approximately  $124,000 for the
nine months ended September 30, 2000. The  Partnership's  net loss for the three
months ended  September 30, 2001,  was  approximately  $101,000  compared to net
income of  approximately  $26,000 for the three months ended September 30, 2000.
The decrease in income for the three and nine month periods ended  September 30,
2001 is due to an increase in total expenses and the extraordinary loss on early
extinguishment  of debt recognized in connection with the refinancing of Ventura
Landing and Village  Green  Apartments  (see  Liquidity  and Capital  Resources)
slightly offset by an increase in total revenues.  Total expenses  increased for
the  three  and  nine  months  ended  September  30,  2001 due to  increases  in
operating, depreciation and interest expenses, partially offset by a decrease in
general and administrative expenses.  Operating expenses increased primarily due
to  increases  in  hazard   insurance  at  Ventura  Landing  and  Village  Green
Apartments.  Depreciation  expense increased at all three investment  properties
due to property  improvements  and  replacements  placed into service during the
past twelve months which are now being  depreciated.  Interest expense increased
due to the  refinancing  of the  mortgages at Ventura  Landing and Village Green
Apartments which resulted in larger debt balances.

General  and  administrative  expenses  decreased  for the three and nine months
ended  September 30, 2001 as a result of a decrease in legal fees,  offset by an
increase in the costs of services  included in the management  reimbursements to
the General  Partner  allowed under the  Partnership  Agreement.  In addition to
these   reimbursements,   costs   associated   with  the  quarterly  and  annual
communications  with  investors  and  regulatory  agencies  and the annual audit
required  by  the  Partnership  Agreement  are  also  included  in  general  and
administrative expenses.


<PAGE>






Total  revenues  increased  due to an increase in rental  income.  Rental income
increased  due to  increases  in average  rental  rates at all three  investment
properties, offset by a slight decrease in occupancy at West Chase Apartments.

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 September 30, 2001,  the  Partnership  held cash and cash  equivalents  of
approximately $359,000 compared to approximately $312,000 at September 30, 2000.
Cash and cash equivalents  decreased  approximately  $186,000 since December 31,
2000 due to  approximately  $651,000 and $36,000 of cash used in  investing  and
financing activities,  respectively,  partially offset by approximately $501,000
of cash  provided by operating  activities.  Cash used in  investing  activities
consisted of property improvements and replacements and, to a lesser extent, net
deposits to escrow  accounts  maintained by the mortgage  lenders.  Cash used in
financing  activities  consisted  of  repayment  of mortgage  notes  payables of
Ventura  Landing  Apartments  and Village  Green  Apartments,  distributions  to
partners,  principal  payments made on the mortgages  encumbering the investment
properties,  loan costs paid and payments on an advance from an affiliate offset
by proceeds  received from the  refinancing  of Ventura  Landing  Apartments and
Village  Green  Apartments  and an advance  from an  affiliate.  The  Registrant
invests its working capital reserves in interest bearing accounts.

The sufficiency of existing  liquid assets to meet future  liquidity and capital
expenditure   requirements   is  directly   related  to  the  level  of  capital
expenditures  required at the  properties  to  adequately  maintain the physical
assets and other  operating  needs of the Registrant and to comply with Federal,
state, and local legal and regulatory requirements. Capital improvements planned
for each of the Registrant's properties are detailed below.

Village Green

During the nine months ended  September  30,  2001,  the  Partnership  completed
approximately  $175,000  of  budgeted  capital  improvements  at  Village  Green
Apartments  consisting  primarily of floor covering and appliance  replacements,
air  conditioning  and  lighting  improvements,   plumbing   enhancements,   and
structural  improvements.  These  improvements were funded from cash provided by
operations and  replacement  reserves.  The Partnership  budgeted  approximately
$219,000 for the year ended  December 31,  2001,  consisting  primarily of floor
covering,  appliance and cabinet replacements and air conditioning improvements.
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 nine months ended  September  30,  2001,  the  Partnership  completed
approximately $276,000 of budgeted capital improvements at West Chase Apartments
consisting   primarily  of  floor  covering   replacement,   exterior  painting,
structural  improvements,  and  appliance  and  air  conditioning  replacements.
Approximately  $170,000 of these capital improvements relate to damage caused by
a fire in January  2001.  These  improvements  were funded from cash provided by
operations  and  advances  from  an  affiliate  of  the  General  Partner.   The
Partnership  budgeted  approximately  $117,000 for the year ending  December 31,
2001,  consisting  primarily  of  floor  covering  and  appliance  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 nine months ended  September  30,  2001,  the  Partnership  completed
approximately  $167,000  of budgeted  capital  improvements  at Ventura  Landing
Apartments  consisting  primarily of floor covering,  air conditioning  unit and
appliance  replacements and structural  improvements.  These  improvements  were
funded  from  cash  provided  by  operations  and  replacement   reserves.   The
Partnership  budgeted  approximately  $192,000 for the year ending  December 31,
2001, consisting primarily of air conditioning and carpet and vinyl replacements
and structural improvements.  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.

Additional capital  expenditures will be incurred only if cash is available from
operations  or from  Partnership  reserves.  To the  extent  that such  budgeted
capital improvements are required, the Registrant's  distributable cash flow, if
any, may be adversely affected at least in the short term.

On June 28, 2001, the Partnership  refinanced the mortgage  encumbering  Ventura
Landing  Apartments.  The refinancing  replaced  indebtedness  of  approximately
$2,200,000  with a new  mortgage  in the  amount  of  $4,225,000.  Approximately
$60,000 of the proceeds were placed into a restricted escrow account  maintained
by the lender.  The new mortgage  carries a stated  interest rate of 7.54%.  The
interest rate on the old mortgage was 7.33%.  Principal and interest payments on
the  mortgage  loan of  approximately  $34,000  are due  monthly  until the loan
matures in July 2021 at which time the mortgage will be fully  amortized.  Total
capitalized loan costs were approximately  $180,000.  The Partnership recognized
an  extraordinary  loss on the  early  extinguishment  of debt of  approximately
$36,000 due to the write-off of unamortized loan costs.

On July 24, 2001, the Partnership  refinanced the mortgage  encumbering  Village
Green  Apartments.   The  refinancing  replaced  indebtedness  of  approximately
$2,000,000  with a new  mortgage  in the  amount  of  $3,575,000.  Approximately
$117,000 of the proceeds was placed into a restricted escrow account  maintained
by the lender.  The new mortgage  carries a stated  interest rate of 7.54%.  The
interest rate on the old mortgage was 7.33%.  Principal and interest payments on
the  mortgage  loan of  approximately  $29,000  are due  monthly  until the loan
matures in September  2021 at which time the mortgage  will be fully  amortized.
Total  capitalized  loan  costs were  approximately  $158,000.  The  Partnership
recognized  an  extraordinary  loss  on the  early  extinguishment  of  debt  of
approximately $34,000 due to the write-off of unamortized loan costs.

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 of $8,884,000  requires  monthly payments of principal and interest
until the loans mature in December  2019,  July 2021 and September 2021 at which
time the loans will be fully amortized.

During the nine months ended  September 30, 2001,  the  Partnership  distributed
approximately  $3,257,000  (approximately  $3,224,000 to the limited partners or
$20.33  per  limited   partnership  unit),  of  which   approximately   $497,000
(approximately $464,000 to the limited partners or $2.93 per limited partnership
unit) was paid from  operations.  Approximately  $2,760,000  ($17.40 per limited
partnership unit) was paid to the limited partners from the refinancing proceeds
from Ventura Landing  Apartments and Village Green  Apartments.  During the nine
months ended  September  30, 2000,  the  Partnership  distributed  approximately
$1,086,000  (approximately  $1,069,000  to the  limited  partners  or $6.74  per
limited  partnership  unit),  of  which  approximately  $436,000  (approximately
$419,000 to the limited  partners  or $2.64 per  limited  partnership  unit) was
attributable  to cash flow from  operations.  Approximately  $650,000 ($4.10 per
limited  partnership  unit)  represented  1999 financing  proceeds on West Chase
Apartments which was distributed  entirely to the Limited Partners.  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 monthly basis.  There can be no assurance that the  Partnership  will generate
sufficient funds from operations  after required capital  expenditures to permit
any  additional  distributions  to its partners  during the remainder of 2001 or
subsequent periods.

In addition to its indirect  ownership of the general  partner  interests in the
Partnership,  AIMCO and its affiliates  owned 78,548 limited  partnership  units
("Units") in the Partnership  representing  49.53% of the  outstanding  Units at
September  30,  2001. 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  which  would  include  voting on certain  amendments  to the
Partnership  Agreement and voting to remove the General Partner.  As a result of
its  ownership  of 49.53% of the  outstanding  Units,  AIMCO is in a position to
influence all such 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 its affiliation with
the General Partner.


<PAGE>


                           PART II - OTHER INFORMATION


ITEM 1.     LEGAL PROCEEDINGS

In March 1998, several putative  unitholders of limited partnership units of the
Partnership  commenced an action  entitled  Rosalie  Nuanes,  et al. v. Insignia
Financial Group, Inc., et al. (the "Nuanes action") in the Superior Court of the
State of  California  for the  County  of San  Mateo.  The  plaintiffs  named as
defendants,  among others,  the Partnership,  its General Partner and several of
their  affiliated  partnerships and corporate  entities.  The action purports to
assert  claims on behalf of a class of  limited  partners  and  derivatively  on
behalf of a number of limited partnerships (including the Partnership) which are
named as nominal defendants, challenging, among other things, the acquisition of
interests in certain general partner entities by Insignia  Financial Group, Inc.
("Insignia") and entities which were, at one time, affiliates of Insignia;  past
tender offers by the Insignia  affiliates to acquire limited  partnership units;
management of the  partnerships  by the Insignia  affiliates;  and the series of
transactions  which  closed on October 1, 1998 and  February  26,  1999  whereby
Insignia and Insignia  Properties Trust,  respectively,  were merged into AIMCO.
The plaintiffs seek monetary damages and equitable  relief,  including  judicial
dissolution of the  Partnership.  On June 25, 1998, the General  Partner filed a
motion seeking dismissal of the action. In lieu of responding to the motion, the
plaintiffs  filed an amended  complaint.  The General Partner filed demurrers to
the amended complaint which were heard February 1999.

Pending the ruling on such  demurrers,  settlement  negotiations  commenced.  On
November 2, 1999,  the parties  executed and filed a Stipulation  of Settlement,
settling claims, subject to court approval, on behalf of the Partnership and all
limited partners who owned units as of November 3, 1999. Preliminary approval of
the  settlement  was obtained on November 3, 1999 from the Court,  at which time
the Court set a final  approval  hearing for  December  10,  1999.  Prior to the
December  10,  1999  hearing,  the  Court  received  various  objections  to the
settlement, including a challenge to the Court's preliminary approval based upon
the alleged lack of authority of prior lead counsel to enter the settlement.  On
December  14,  1999,  the General  Partner  and its  affiliates  terminated  the
proposed settlement.  In February 2000, counsel for some of the named plaintiffs
filed a motion to disqualify plaintiff's lead and liaison counsel who negotiated
the settlement.  On June 27, 2000, the Court entered an order disqualifying them
from the case and an appeal was taken  from the order on  October  5,  2000.  On
December 4, 2000, the Court  appointed the law firm of Lieff Cabraser  Heimann &
Bernstein  LLP as new  lead  counsel  for  plaintiffs  and the  putative  class.
Plaintiffs  filed a third  amended  complaint on January 19,  2001.  On March 2,
2001,  the  General  Partner  and its  affiliates  filed a demurrer to the third
amended  complaint.  On May 14, 2001,  the Court heard the demurrer to the third
amended  complaint.  On July 10,  2001,  the Court  issued  an order  sustaining
defendants'  demurrer on certain grounds.  On July 20, 2001,  plaintiffs filed a
motion for  reconsideration  of the Court's July 10, 2001 order granting in part
and denying in part defendants' demurrer. On September 7, 2001, plaintiffs filed
a fourth amended class and derivative action  complaint.  On September 12, 2001,
the Court denied plaintiffs' motion for reconsideration. On October 5, 2001, the
General Partner and affiliated defendants filed a demurrer to the fourth amended
complaint,  which,  together  with a  demurrer  filed  by other  defendants,  is
currently  scheduled  to be heard on November  15,  2001.  The Court has set the
matter for trial in January 2003.

During the third  quarter of 2001, a complaint  (the "Heller  action") was filed
against  the same  defendants  that are named in the  Nuanes  action,  captioned
Heller v. Insignia Financial Group. On or about August 6, 2001, plaintiffs filed
a first amended  complaint.  The first amended complaint in the Heller action is
brought as a purported  derivative  action,  and asserts  claims for among other
things  breach  of  fiduciary  duty;  unfair  competition;   conversion,  unjust
enrichment;  and judicial  dissolution.  Plaintiffs in the Nuanes action filed a
motion to  consolidate  the Heller action with the Nuanes action and stated that
the Heller action was filed in order to preserve the derivative claims that were
dismissed  without  leave to amend in the Nuanes action by the Court order dated
July 10, 2001. On October 5, 2001, the General Partner and affiliated defendants
moved to strike the first  amended  complaint in its entirety for  violating the
Court's  July 10, 2001 order  granting  in part and denying in part  defendants'
demurrer in the Nuanes action, or  alternatively,  to strike certain portions of
the  complaint  based on the statute of  limitations.  Other  defendants  in the
action demurred to the fourth amended complaint,  and,  alternatively,  moved to
strike  the  complaint.  The  matters  are  currently  scheduled  to be heard on
November 15, 2001.

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


<PAGE>



ITEM 6.     EXHIBITS AND REPORTS ON FORM 8-K

            a)    Exhibits:

                  None.

            b)    Reports on Form 8-K filed during the quarter  ended  September
                  30, 2001:

                  None.


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


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


                                    Date: November 13, 2001