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                                 FINAL EXTENSION
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                                      AIMCO

                             AIMCO PROPERTIES, L.P.
                    c/o River Oaks Partnership Services, Inc.
                  P.O. Box 2065 S. Hackensack, N.J. 07606-2065
                                 (888) 349-2005

                                  June 10, 2002

Dear Limited Partner:

         You should have already received the tender offer documents we recently
mailed you, together with supplemental information regarding your units of
limited partnership interest in CONSOLIDATED CAPITAL INSTITUTIONAL PROPERTIES/3.
BY THIS LETTER, WE ARE NOTIFYING YOU THAT WE HAVE EXTENDED THE TENDER OFFER
UNTIL MIDNIGHT, NEW YORK TIME, ON JUNE 25, 2002. As of June 7, 2002, 1,694.40
units, or 0.44%, had been tendered to us in response to this offer.

         Our offer provides you with an opportunity to gain liquidity for your
investment, and to eliminate the cost and record keeping associated with limited
partnership tax reporting. If we purchase your tendered units, you will receive
cash, but you may recognize a gain or loss for federal income tax purposes.
However, you will not receive a K-1 in respect of your partnership income or
loss after the tax year in which your units are purchased. If you retain your
units, you will continue to be a limited partner. However, you may not be able
to liquidate your investment until the partnership terminates.

         WE DO NOT INTEND TO MAKE ANY FURTHER TENDER OFFERS FOR INTERESTS IN
YOUR PARTNERSHIP. As you know, the market for units in the partnership is
illiquid, and it may be difficult to sell your investment in the partnership in
the future.

         If you have any questions or need assistance in completing the enclosed
Acknowledgment and Agreement, please contact our information agent, River Oaks
Partnership Services, Inc., toll free, at (888) 349-2005.

         IF YOU HAVE ALREADY RESPONDED TO OUR OFFER, PLEASE DISREGARD THIS
LETTER.

                             AIMCO PROPERTIES, L.P.

                     THE INFORMATION AGENT FOR THE OFFER IS:

                      RIVER OAKS PARTNERSHIP SERVICES, INC.
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           By Mail:                        By Overnight Courier:                       By Hand:
         P.O. Box 2065                       111 Commerce Road                   111 Commerce Road
S. Hackensack, N.J. 07606-2065             Carlstadt, N.J. 07072                 Carlstadt, N.J. 07072
                                        Attn.: Reorganization Dept.           Attn.: Reorganization Dept.
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                          For information, please call:

TOLL FREE: (888) 349-2005                          Via Facsimile: (201) 460-2889