UNITED ~~STATES~~ ~~SECURITIES AND EXCHANGE COMMISSION~~STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT ~~PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934~~

~~Date~~Pursuant to ofSection ~~Report~~13 or 15(~~Date~~d) of ~~earliest~~the ~~event reported):~~Securities ~~November~~Exchange 3,Act ~~2017~~of 1934

Date of Report (Date of earliest event reported): November 28, 2017

United Development Funding III, L.P.

(Exact Name of Registrant as Specified in Its Charter)

Delaware

000-53159

20-3269195

(State or other jurisdiction of incorporation or organization)

(Commission File Number)

(I.R.S. Employer

Identification No.)

1301 Municipal Way, Suite ~~100~~200, Grapevine, Texas ~~76051 (Address of principal executive offices) (Zip Code)~~

~~(214) 370-8960 (Registrant’s telephone number, including area code)~~76051

~~None~~ (~~Former~~Address ~~name~~of orprincipal ~~former~~executive ~~address, if changed since last report~~offices)

(Zip Code)

(214) 370-8960

(Registrant’s telephone number, including area code)

1301 Municipal Way, Suite 100, Grapevine, Texas

76051

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) ¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) ¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) ¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act . ¨

Item 7.01 Regulation FD Disclosure.

On November 328, 2017, United Development Funding, L.P., United Development Funding II, L.P., United Development Funding III, L.P., ~~issued~~United aDevelopment Funding ~~letter~~IV, toUnited ~~investors~~Development Funding Income Fund V, United Mortgage Trust, United Development Funding Land Opportunity Fund, L.P., and United Development Funding Land Opportunity Fund Investors, L.L.C. (collectively, the “Plaintiffs” or “UDF Funds”) filed a ~~copy~~lawsuit in the County Court of ~~which~~Dallas isCounty, ~~included~~Texas asagainst ~~Exhibit~~J. 99Kyle Bass (“Bass”) and Hayman Capital Management, L.1P., Hayman Offshore Management, Inc., Hayman Capital Master Fund, L.P., Hayman Capital Partners, L.P., Hayman Capital Offshore Partners, L.P., and Hayman Investments, LLC, all of which are hedge fund entities believed to ~~this~~be ~~Current~~under the control ~~Report~~of onBass ~~Form~~(collectively 8with Bass, the “Defendants” or the “Bass Entities”). A copy of the Plaintiffs’ complaint can be found at the County Court of Dallas County, Texas website (https://courtsportal.dallascounty.org/DALLASPROD), using the Case No. CC-K17-06253-B.

The ~~information~~lawsuit ~~furnished~~alleges ~~under~~claims ~~this~~against ~~Item~~Defendants ~~7.01~~for ofbusiness ~~this~~disparagement, ~~Current~~interference ~~Report~~with oncontract, ~~Form~~interference ~~8-K,~~with ~~including~~prospective ~~Exhibit~~economic 99advantage and civil conspiracy.1 In general, ~~shall~~the ~~not~~UDF beFunds ~~deemed~~allege tothat bethe ~~“filed”~~Bass Entities made false and disparaging statements – first ~~for~~anonymously on a third-party website and later in their own name on a proprietary website – about the ~~purposes~~business of ~~Section~~the 18UDF Funds ofin order to destroy the ~~Securities~~UDF ~~Exchange~~Funds’ ~~Act~~business. The UDF Funds further allege that the Bass Entities profited from the resulting damage to the business of ~~1934,~~the asUDF ~~amended,~~Funds orbecause ~~otherwise~~the ~~subject~~Bass Entities had, prior to the ~~liabilities~~publication of ~~that~~the false statements, ~~section~~established a large short position in the UDF Funds.

~~Item~~The 9UDF Funds allege that the false and disparaging statements include statements designed to convey that the UDF Funds were a Ponzi scheme, that the UDF Funds had no genuine ability to carry on their business, that the UDF Funds’ insolvency would render their shares virtually worthless, that the UDF Funds’ real estate developments were not genuine developments, that the UDF Funds’ largest borrower was not an arm’s-length borrower and was also insolvent, and that investor proceeds were being misappropriated.01 The ~~Financial~~UDF ~~Statements~~Funds allege that all of these assertions were false and ~~Exhibits~~that, in truth, the UDF Funds were a family of successful real estate investment funds engaged in genuine real estate development with arm’s-length borrowers with a long track record of real estate development.

~~(d)~~The ~~Exhibits~~lawsuit alleges that the UDF Funds suffered damage because the false statements of the Defendants caused, among other things, a sudden and severe loss of credit and reduction in capital that the UDF Funds relied on to carry on their business of lending to real estate developers for use in land acquisition and single-family home developments. The Plaintiffs seek damages for the loss of income that they suffered as a consequence, as well as damages for various other injuries and other costs caused by the false statements. However, no assurances can be given that the Plaintiffs will receive any damages as a result of the lawsuit, nor can any assurances be given regarding a timeframe for a resolution of the lawsuit.

~~99.1 United Development Funding III, L.P. letter to investors, dated November 3, 2017.~~SIGNATURE

~~SIGNATURE~~Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	United Development Funding III, L.P.

	By:	UMTH Land Development, L.P.
		Its General Partner

		By:	UMT Services, Inc.
			Its General Partner

Dated: November 29, 2017			By:	/s/ Hollis M. Greenlaw
				Hollis M. Greenlaw
				President and Chief Executive Officer

	United Development Funding III, L.P.
	By:	UMTH Land Development, L.P.
		Its General Partner
		By:	UMT Services, Inc.
			Its General Partner
Dated: November 3, 2017			By:	/s/ Hollis M. Greenlaw
				Hollis M. Greenlaw
				President and Chief Executive Officer

EXHIBIT INDEX

Exhibit No.		Description
99.1		United Development Funding III, L.P. letter to investors, dated November 3, 2017.

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