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 June 30, 2000


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


                For the transition period from _________to _________

                         Commission file number 0-10273

                        CONSOLIDATED CAPITAL PROPERTIES III
         (Exact name of small business issuer as specified in its charter)

         California                                              94-2653686
(State or other jurisdiction of                               (I.R.S. Employer
 incorporation or organization)                              Identification No.)

                          55 Beattie Place, PO Box 1089

                        Greenville, South Carolina 29602

                      (Address of principal executive offices)

                                 (864) 239-1000

                           (Issuer's telephone number)

Check  whether the issuer (1) filed all reports  required to be filed by Section
13 or 15(d) of the  Exchange  Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports),  and (2) has been
subject to such filing requirements for the past 90 days. Yes X No___

<PAGE>

                         PART I - FINANCIAL INFORMATION

ITEM 1.     FINANCIAL STATEMENTS

a)

                       CONSOLIDATED CAPITAL PROPERTIES III

                           CONSOLIDATED BALANCE SHEET

                                   (Unaudited)

                          (in thousands, except unit data)

                                  June 30, 2000
<TABLE>
<CAPTION>

Assets
<S>                                                                          <C>
   Cash and cash equivalents                                                 $  165
   Receivables and deposits                                                     320
   Restricted escrows                                                           172
   Other assets                                                                 204
   Investment properties:
      Land                                                    $  507
      Buildings and related personal property                 10,802
                                                              11,309
      Less accumulated depreciation                           (7,675)         3,634
                                                                            $ 4,495

Liabilities and Partners' (Deficit) Capital
Liabilities

   Accounts payable                                                          $   63
   Tenant security deposit liabilities                                           99
   Accrued property taxes                                                        84
   Other liabilities                                                            189
   Mortgage notes payable                                                     5,338

Partners' (Deficit) Capital

   General partners                                           $(1,841)
   Limited partners (158,582 units issued and
      outstanding)                                                 563       (1,278)
                                                                            $ 4,495
</TABLE>

            See Accompanying Notes to Consolidated Financial Statements

<PAGE>

b)

                       CONSOLIDATED CAPITAL PROPERTIES III

                      CONSOLIDATED STATEMENTS OF OPERATIONS

                                   (Unaudited)

                          (in thousands, except unit data)

<TABLE>
<CAPTION>

                                               Three Months              Six Months
                                              Ended June 30,           Ended June 30,
                                            2000         1999         2000        1999
Revenues:
<S>                                        <C>           <C>        <C>          <C>
  Rental income                            $  729        $ 727      $ 1,462      $ 1,421
  Other income                                 65           62          115          110
      Total revenues                          794          789        1,577        1,531

Expenses:
  Operating                                   343          358          713          734
  General and administrative                  108           57          173          144
  Depreciation                                140          118          277          223
  Interest                                    107           84          222          169
  Property taxes                               43           45           94           91
      Total expenses                          741          662        1,479        1,361

Income from continuing operations              53          127           98          170

Income from discontinued operations            --          113           --          221

Net income                                  $  53        $ 240         $ 98        $ 391

Net income allocated to general
  partner (4%)                              $   2         $ 10         $  4        $  16
Net income allocated to limited
  partners (96%)                               51          230           94          375

                                            $  53        $ 240         $ 98        $ 391
Per limited partnership unit:
  Income from continuing operations        $ 0.32       $ 0.77       $ 0.59      $  1.03
  Income from discontinued operations          --         0.68           --         1.33

Net income                                 $ 0.32       $ 1.45       $ 0.59      $  2.36

Distributions per limited
  partnership unit                         $ 2.64        $  --       $ 6.74      $ 12.48

</TABLE>

            See Accompanying Notes to Consolidated Financial Statements

<PAGE>

c)

                       CONSOLIDATED CAPITAL PROPERTIES III

          CONSOLIDATED STATEMENT OF CHANGES IN PARTNERS' (DEFICIT) CAPITAL
                                   (Unaudited)

                          (in thousands, except unit data)

<TABLE>
<CAPTION>

                                      Limited
                                     Partnership     General     Limited
                                        Units        Partners    Partners       Total

<S>                                    <C>           <C>          <C>          <C>
Original capital contributions         158,945       $     1      $ 79,473     $ 79,474

Partners' (deficit) capital
   at December 31, 1999                158,582       $(1,828)     $  1,538     $   (290)

Distributions to partners                  --            (17)      (1,069)       (1,086)

Net income for the six months
   ended June 30, 2000                     --              4           94            98

Partners' (deficit) capital
   at June 30, 2000                    158,582       $(1,841)     $   563      $ (1,278)
</TABLE>

            See Accompanying Notes to Consolidated Financial Statements

<PAGE>

d)
                       CONSOLIDATED CAPITAL PROPERTIES III

                      CONSOLIDATED STATEMENTS OF CASH FLOWS

                                   (Unaudited)

                                 (in thousands)
<TABLE>
<CAPTION>

                                                                  Six Months Ended
                                                                        June 30,
                                                                   2000         1999
Cash flows from operating activities:
<S>                                                               <C>           <C>
  Net income                                                      $   98        $ 391
  Adjustments to reconcile net income to net cash
   provided by operating activities:
   Depreciation                                                      277          223
   Amortization of lease commissions and loan costs                   16           15
   Change in accounts:
      Receivables and deposits                                      (138)         (78)
      Other assets                                                     6            3
      Accounts payable                                               (74)          (4)
      Tenant security deposit liabilities                              2            9
      Accrued property taxes                                          84           82
      Other liabilities                                              (70)         (10)

       Net cash provided by operating activities                     201          631

Cash flows from investing activities:

  Property improvements and replacements                            (349)        (151)
  Net deposits to restricted escrows                                 (39)         (14)
       Net cash used in investing activities                        (388)        (165)

Cash flows from financing activities:

  Payment of loan costs                                              (10)          --
  Payments on mortgage note payable                                  (12)          --
  Distributions to partners                                       (1,086)      (1,985)

       Net cash used in financing activities                      (1,108)      (1,985)

Net decrease in cash and cash equivalents                         (1,295)      (1,519)

Cash and cash equivalents at beginning of period                   1,460        2,758

Cash and cash equivalents at end of period                        $  165      $ 1,239

Supplemental disclosure of cash flow information:
  Cash paid for interest                                          $  199        $ 154

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

</TABLE>

            See Accompanying Notes to Consolidated Financial Statements

<PAGE>

e)

                       CONSOLIDATED CAPITAL PROPERTIES III

                     NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

Note A - Basis of Presentation

The accompanying  unaudited  consolidated  financial  statements of Consolidated
Capital Properties III (the "Partnership" or "Registrant") have been prepared in
accordance with generally accepted  accounting  principles for interim financial
information  and  with the  instructions  to Form  10-QSB  and  Item  310(b)  of
Regulation  S-B.  Accordingly,  they do not include all of the  information  and
footnotes  required by generally  accepted  accounting  principles  for complete
financial  statements.  In the opinion of ConCap  Equities,  Inc.  (the "General
Partner"),  all adjustments (consisting of normal recurring accruals) considered
necessary for a fair presentation have been included.  Operating results for the
three and six month periods ended June 30, 2000, are not necessarily  indicative
of the results  that may be expected  for the fiscal  year ending  December  31,
2000. For further  information,  refer to the consolidated  financial statements
and footnotes thereto included in the Partnership's Annual Report on Form 10-KSB
for the fiscal year ended December 31, 1999.

Consolidation

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

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

Note B - Transfer of Control

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

Note C - Discontinued Segment

On July 8, 1999,  Professional  Plaza, the only commercial property owned by the
Partnership,  was sold to an unaffiliated  third party.  Due to the sale of this
property,  the results of the commercial segment have been shown as "Income from
discontinued  operations"  for the three and six month  periods  ended  June 30,
1999. Professional Plaza had total revenues of approximately $447,000 and income
from discontinued  operations of approximately $221,000 for the six months ended
June 30, 1999.  Professional Plaza had total revenues of approximately  $218,000
and income from discontinued  operations of approximately $113,000 for the three
months ended June 30, 1999.

Note D - Transactions with Affiliated Parties

The Partnership has no employees and is dependent on the General Partner and its
affiliates for the management and administration of all Partnership  activities.
The  Limited  Partnership  Agreement  ("Partnership   Agreement")  provides  for
payments to affiliates of the General Partner for property  management  services
based on a percentage of revenue;  for a partnership  management fee equal to 9%
of the  total  distributions  made to  limited  partners  from  cash  flow  from
operations; and for reimbursements of certain expenses incurred by affiliates of
the General Partner on behalf of the Partnership.

The following  amounts were paid or accrued to the General Partner or affiliates
during each of the six month periods ended June 30, 2000 and 1999, respectively:

                                                                  2000      1999
                                                                  (in thousands)

 Property management fees (included in operating expenses)        $ 78      $ 76

 Reimbursement for services of affiliates (included in
   investment properties and general and
   administrative expenses)                                         60        61

 Partnership management fees (included in general and
   administrative expenses)                                         41        15

During the six months  ended June 30, 2000 and 1999,  affiliates  of the General
Partner  were  entitled  to  receive  5% of  gross  receipts  from  all  of  the
Registrant's  residential  properties as  compensation  for  providing  property
management  services.  The  Registrant  paid  to such  affiliates  approximately
$78,000  and  $76,000  for  the  six  months  ended  June  30,  2000  and  1999,
respectively.

An  affiliate  of the General  Partner  received  reimbursement  of  accountable
administrative  expenses amounting to approximately  $60,000 and $61,000 for the
six months ended June 30, 2000 and 1999, respectively.

The Limited  Partnership  Agreement  ("Partnership  Agreement")  provides  for a
special  management  fee  equal  to 9% of the  total  distributions  made to the
limited  partners  from  cash  flow from  operations  to be paid to the  General
Partner  for  executive  and  administrative  management  services.  Under  this
provision  of the  Partnership  Agreement,  fees of  approximately  $41,000  and
$15,000  were paid to the General  Partner  during the six months ended June 30,
2000 and 1999, respectively.

AIMCO and its affiliates currently own 72,386.5 limited partnership units in the
Partnership  representing  45.65% of the  outstanding  units.  A number of these
units were acquired  pursuant to tender offers made by AIMCO or its  affiliates.
It is possible  that AIMCO or its  affiliates  will make one or more  additional
offers to acquire  additional limited  partnership  interests in the Partnership
for cash or in exchange for units in the operating  partnership of AIMCO.  Under
the  Partnership  Agreement,  unitholders  holding a  majority  of the Units are
entitled to take action with respect to a variety of matters. As a result of its
ownership  of  45.65%  of the  outstanding  units,  AIMCO  is in a  position  to
significantly  influence all voting  decisions  with respect to the  Registrant.
When voting on matters, AIMCO would in all likelihood vote the Units it acquired
in a manner  favorable to the interest of the General  Partner  because of their
affiliation with the General Partner.

Note E - Distributions

During  the  six  months  ended  June  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.  During
the six months  ended  June 30,  1999,  a cash  distribution  was paid  totaling
approximately  $1,985,000  (approximately  $1,979,000 to the limited partners or
$12.48 per limited  partnership  unit) to the partners,  of which  approximately
$159,000  (approximately  $153,000 to the limited  partners or $0.96 per limited
partnership   unit)  was   attributable   to  cash  flow  from   operations  and
approximately  $1,826,000  ($11.52 per limited  partnership  unit) represented a
return of capital.

Note F - Financing of Investment Property

On December 1, 1999, the Partnership obtained financing on West Chase Apartments
in the amount of  $1,150,000.  The loan carries a stated  interest rate of 7.87%
and matures on December 1, 2019. The Partnership  received net proceeds from the
financing  in the amount of  approximately  $1,124,000.  The  Partnership  spent
approximately $29,000 on loan costs during the year ended December 31, 1999. The
Partnership spent approximately  $10,000 on additional loan costs during the six
months ended June 30, 2000. These loan costs are included in other assets on the
consolidated balance sheet.

Note G - Segment Information

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

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

Factors  management used to identify the enterprise's  reportable  segment:  The
Partnership's reportable segments are investment properties that offer different
products and  services.  The  reportable  segments  are each managed  separately
because they provide  distinct  services  with  different  types of products and
customers.

Segment  information for the three and six month periods ended June 30, 2000 and
1999, is shown in the tables below (in  thousands).  The "Other" column includes
Partnership administration related items and income and expense not allocated to
the reportable segment.

              Six months ended
               June 30, 2000                  Residential      Other     Totals

Rental income                                   $ 1,462       $   --    $ 1,462
Other income                                        103           12        115
Interest expense                                    222           --        222
Depreciation                                        277           --        277
General and administrative expenses                  --          173        173
Segment profit (loss)                               259         (161)        98
Total assets                                      4,408           87      4,495
Capital expenditures for investment
  Properties                                        182           --        182

<PAGE>

             Three months ended
               June 30, 2000                  Residential      Other     Totals

Rental income                                    $  729        $  --      $ 729
Other income                                         59            6         65
Interest expense                                    107           --        107
Depreciation                                        140           --        140
General and administrative expenses                  --          108        108
Segment profit (loss)                               155         (102)        53


      Six months ended
        June 30, 1999         Residential     Commercial       Other     Totals
                                            (discontinued)
Rental income                   $ 1,421          $  --         $  --   $ 1,421
Other income                         90             --            20       110
Interest expense                    169             --            --       169
Depreciation                        223             --            --       223
General and administrative
  expenses                           --             --           144       144
Income from discontinued
  operations                         --            221            --       221
Segment profit (loss)               294            221          (124)      391
Total assets                      4,332          1,394           650     6,376
Capital expenditures for
  investment properties             151             --            --       151


     Three months ended
        June 30, 1999         Residential     Commercial       Other     Totals
                                            (discontinued)
Rental income                    $  727           $ --         $  --     $ 727
Other income                         57             --             5        62
Interest expense                     84             --            --        84
Depreciation                        118             --            --       118
General and administrative
  expenses                           --             --            57        57
Income from discontinued
  operations                         --            113            --       113
Segment profit (loss)               179            113           (52)      240


Note H - Legal Proceedings

In March 1998, several putative unit holders of limited partnership units of the
Partnership  commenced an action  entitled  Rosalie  Nuanes,  et al. v. Insignia
Financial  Group,  Inc., et al. in the Superior Court of the State of California
for the County of San Mateo. The plaintiffs  named as defendants,  among others,
the   Partnership,   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 the acquisition of interests in certain general partner
entities by Insignia Financial Group, Inc. and entities which were, at one time,
affiliates of Insignia; past tender offers by the Insignia affiliates to acquire
limited  partnership  units;  the  management  of  partnerships  by the Insignia
affiliates;  and the Insignia  Merger.  The plaintiffs seek monetary damages and
equitable relief, including judicial dissolution of the Partnership. On June 25,
1998,  the General  Partner filed a motion seeking  dismissal of the action.  In
lieu  of  responding  to the  motion,  the  plaintiffs  have  filed  an  amended
complaint.  The General Partner filed  demurrers to the amended  complaint which
were heard February 1999.

Pending the ruling on such  demurrers,  settlement  negotiations  commenced.  On
November 2, 1999,  the parties  executed and filed a Stipulation  of Settlement,
settling claims,  subject to final court approval,  on behalf of the Partnership
and all limited  partners  who 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. The Court will entertain applications for lead counsel which must
be filed by August 4, 2000. The Court has scheduled a hearing on August 21, 2000
to address the issue of appointing  lead counsel.  The General  Partner does not
anticipate  that  costs  associated  with  this  case  will be  material  to the
Partnership's overall operations.

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

<PAGE>

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

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

The Partnership's  investment  properties consist of three apartment  complexes.
The following table sets forth the average  occupancy of the properties for each
of the six month periods ended June 30, 2000 and 1999:

                                                  Average Occupancy
      Property                                     2000       1999

      Ventura Landing Apartments                    93%        93%
        Orlando, Florida

      Village Green Apartments                      94%        94%
        Altamonte Springs, Florida

      West Chase Apartments                         92%        95%
        Lexington, Kentucky

The  General  Partner  attributes  the  decrease  in  occupancy  at  West  Chase
Apartments to increased competition in the apartment rental market in Lexington,
Kentucky.

Results of Operations

The  Partnership's  net  income  for the six  months  ended  June  30,  2000 was
approximately  $98,000 as compared to approximately  $391,000 for the six months
ended June 30,  1999.  The  Partnership's  net income for the three months ended
June  30,  2000,  was  approximately  $53,000  as  compared  to  net  income  of
approximately $240,000 for the three months ended June 30, 1999. The decrease in
net income for the three and six month  periods ended June 30, 2000 is primarily
attributable to income from the discontinued operations of Professional Plaza of
approximately  $113,000 and $221,000,  respectively,  included in net income for
the three and six months ended June 30, 1999.  Professional  Plaza was sold July
8, 1999, as discussed below.

Excluding the impact of the operations of Professional Plaza, the Registrant had
income from continuing  operations of approximately $98,000 and $170,000 for the
six months ending June 30, 2000 and 1999, respectively.  Excluding the impact of
the operations of Professional  Plaza, the Registrant had income from continuing
operations  of  approximately  $53,000 and $127,000 for the three months  ending
June 30, 2000 and 1999,  respectively.  The  decrease in income from  continuing
operations for the three and six months ended June 30, 2000 was due to increased
total expenses partially offset by increased total revenues.

Total  expenses  for the three and six  months  ended  June 30,  2000  increased
primarily  due  to an  increase  in  depreciation,  interest,  and  general  and
administrative  expenses,  which was partially offset by a decrease in operating
expenses.  Depreciation expense increased due to capital improvements  completed
during the past twelve months which are now being depreciated.  Interest expense
increased  due to the  financing  of West Chase  Apartments  in  December  1999.
General and  administrative  expenses  increased  due to  increased  partnership
management  fees paid  during the six months  ended  June 30,  2000,  related to
increased distributions of cash from operations and increased professional fees.
Included in general and administrative  expenses at both June 30, 2000 and 1999,
are  management   reimbursements  to  the  General  Partner  allowed  under  the
Partnership   Agreement.   Costs   associated  with  the  quarterly  and  annual
communications  with  investors  and  regulatory  agencies  and the annual audit
required by the  Partnership  Agreement are also  included.  Operating  expenses
decreased  primarily  due to decreased  contract  services  primarily at Ventura
Landing   Apartments   and  decreased   maintenance   expenses  at  all  of  the
Partnership's residential properties.

Total revenues increased for the three and six month periods ended June 30, 2000
primarily  due to an increase  in rental  income  and,  to a lesser  extent,  an
increase in other  income.  Rental income  increased  primarily due to increased
average  rental  rates  at  all  of the  Partnership's  residential  properties.
Occupancy at Village Green and Ventura  Landing  remained stable which more than
offset the decrease in occupancy at West Chase. In addition, concession expenses
decreased  at all of the  Partnership's  residential  properties.  Other  income
increased  primarily due to increased lease cancellation fees at Ventura Landing
Apartments.

On July 8, 1999,  Professional  Plaza, the only commercial property owned by the
Partnership,  was sold to an unaffiliated  third party.  Due to the sale of this
property,  the results of the commercial segment have been shown as "Income from
discontinued  operations"  for the three and six month  periods  ended  June 30,
1999. Professional Plaza had total revenues of approximately $447,000 and income
from discontinued  operations of approximately $221,000 for the six months ended
June 30, 1999.  Professional Plaza had total revenues of approximately  $218,000
and income from discontinued  operations of approximately $113,000 for the three
months ended June 30, 1999.

As part of the ongoing  business plan of the  Partnership,  the General  Partner
monitors the rental market  environment of each of its investment  properties to
assess the feasibility of increasing rents,  maintaining or increasing occupancy
levels and protecting  the  Partnership  from increases in expenses.  As part of
this plan,  the General  Partner  attempts to protect the  Partnership  from the
burden of  inflation-related  increases  in  expenses  by  increasing  rents and
maintaining a high overall  occupancy  level.  However,  due to changing  market
conditions,  which  can  result  in the use of  rental  concessions  and  rental
reductions to offset softening market conditions, there is no guarantee that the
General Partner will be able to sustain such a plan.

Liquidity and Capital Resources

As of June  30,  2000,  the  Partnership  held  cash  and  cash  equivalents  of
approximately  $165,000  compared to approximately  $1,239,000 at June 30, 1999.
The decrease in cash and cash equivalents of  approximately  $1,295,000 from the
Partnership's year ended December 31, 1999, is due to approximately  $388,000 of
cash used in investing  activities and approximately  $1,108,000 of cash used in
financing activities partially offset by approximately $201,000 of cash provided
by operating  activities.  Cash used in investing activities consisted primarily
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 distributions to the partners,  and, to a lesser extent,
loan costs and payments on the  mortgage  note  payable  encumbering  West Chase
Apartments.  The  Registrant  invests  its working  capital  reserves in a money
market account.

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

Village Green

During  the  six  months  ended  June  30,  2000,  the   Partnership   completed
approximately  $90,000  of capital  improvements  at  Village  Green  Apartments
consisting  primarily  of  parking  lot  improvements,  light  fixtures,  carpet
replacement,  exterior painting, and structural improvements. These improvements
were funded from cash provided by operations.  The Partnership has evaluated the
capital improvement needs of the property for the year 2000. The amount budgeted
is  approximately  $124,000,  consisting  primarily  of  air  conditioning  unit
replacement, plumbing upgrades, and carpet replacements. Additional improvements
may be considered  and will depend on the physical  condition of the property as
well  as  replacement  reserves  and  anticipated  cash  flow  generated  by the
property.

West Chase

During  the  six  months  ended  June  30,  2000,  the   Partnership   completed
approximately   $22,000  of  capital   improvements  at  West  Chase  Apartments
consisting  primarily of carpet and vinyl  replacement  and  plumbing  upgrades.
These improvements were funded from cash provided by operations. The Partnership
has evaluated the capital  improvement  needs of the property for the year 2000.
The amount budgeted is approximately $42,000, consisting primarily of appliances
and carpet and vinyl replacements. Additional improvements may be considered and
will depend on the physical  condition  of the  property as well as  replacement
reserves and anticipated cash flow generated by the property.

Ventura Landing

During  the  six  months  ended  June  30,  2000,  the   Partnership   completed
approximately  $70,000 of capital  improvements  at Ventura  Landing  Apartments
consisting   primarily   of  carpet  and  tile   replacement   and  parking  lot
improvements. The Partnership has evaluated the capital improvement needs of the
property  for the year 2000.  The amount  budgeted  is  approximately  $109,000,
consisting  primarily of air conditioning unit replacement,  plumbing  upgrades,
and carpet  replacements.  Additional  improvements  may be considered  and will
depend on the physical condition of the property as well as replacement reserves
and anticipated cash flow generated by the property.

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

The  Registrant's  current assets are thought to be sufficient for any near-term
needs  (exclusive  of capital  improvements)  of the  Registrant.  The  mortgage
indebtedness  at Village  Green and Ventura  Landing  Apartments  of  $4,200,000
requires interest only payments with the principal balance due in November 2003.
On December 1, 1999, the Partnership obtained financing on West Chase Apartments
in the  amount  of  $1,150,000  and the  current  balance  of this  mortgage  is
approximately $1,138,000.  Payments are due on the first day of each month until
the loan  matures on  December  1, 2019.  The General  Partner  will  attempt to
refinance such  indebtedness  and/or sell the properties  prior to such maturity
dates. If the properties  cannot be refinanced or sold for a sufficient  amount,
the Registrant may risk losing such properties through foreclosure.

During  the  six  months  ended  June  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.  During
the six months  ended  June 30,  1999,  a cash  distribution  was paid  totaling
approximately  $1,985,000  (approximately  $1,979,000 to the limited partners or
$12.48 per limited  partnership  unit) to the partners,  of which  approximately
$159,000  (approximately  $153,000 to the limited  partners or $0.96 per limited
partnership   unit)  was   attributable   to  cash  flow  from   operations  and
approximately  $1,826,000  ($11.52 per limited  partnership  unit) represented a
return of capital.  Future cash  distributions  will depend on the levels of net
cash generated  from  operations,  the  availability  of cash reserves,  and the
timing  of  debt   maturities,   property  sales,   and/or   refinancings.   The
Partnership's  distribution policy is reviewed on a semi-annual basis. There can
be no assurance,  however,  that the Partnership will generate  sufficient funds
from  operations  after required  capital  expenditures to permit any additional
distributions  to its  partners  during  the  remainder  of 2000  or  subsequent
periods.

<PAGE>

                           PART II - OTHER INFORMATION

ITEM 1.     LEGAL PROCEEDINGS

In March 1998, several putative unit holders of limited partnership units of the
Partnership  commenced an action  entitled  Rosalie  Nuanes,  et al. v. Insignia
Financial  Group,  Inc., et al. in the Superior Court of the State of California
for the County of San Mateo. The plaintiffs  named as defendants,  among others,
the   Partnership,   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 the acquisition of interests in certain general partner
entities by Insignia Financial Group, Inc. and entities which were, at one time,
affiliates of Insignia; past tender offers by the Insignia affiliates to acquire
limited  partnership  units;  the  management  of  partnerships  by the Insignia
affiliates;  and the Insignia  Merger.  The plaintiffs seek monetary damages and
equitable relief, including judicial dissolution of the Partnership. On June 25,
1998,  the General  Partner filed a motion seeking  dismissal of the action.  In
lieu  of  responding  to the  motion,  the  plaintiffs  have  filed  an  amended
complaint.  The General Partner filed  demurrers to the amended  complaint which
were heard February 1999.

Pending the ruling on such  demurrers,  settlement  negotiations  commenced.  On
November 2, 1999,  the parties  executed and filed a Stipulation  of Settlement,
settling claims,  subject to final court approval,  on behalf of the Partnership
and all limited  partners  who 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. The Court will entertain applications for lead counsel which must
be filed by August 4, 2000. The Court has scheduled a hearing on August 21, 2000
to address the issue of appointing  lead counsel.  The General  Partner does not
anticipate  that  costs  associated  with  this  case  will be  material  to the
Partnership's overall operations.

ITEM 6.     EXHIBITS AND REPORTS ON FORM 8-K

            a) Exhibits:

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

            b) Reports on Form 8-K filed during the quarter ended June 30, 2000:

               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.
                                          Its General Partner

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

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

                                    Date: