United States
                       Securities and Exchange Commission
                             Washington, D.C. 20549

                                   Form 10-QSB

(Mark One)
[X]   QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
      ACT OF 1934

                For the quarterly period ended June 30, 2004


[ ]   TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT


            For the transition period from _________to _________

                         Commission file number 0-13454


                          NATIONAL PROPERTY INVESTORS 7
        (Exact name of small business issuer as specified in its charter)



         California                                         13-3230613
(State or other jurisdiction of                          (I.R.S. Employer
 incorporation or organization)                         Identification No.)

                   55 Beattie Place, Post Office 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



                          NATIONAL PROPERTY INVESTORS 7

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

                                  June 30, 2004

<TABLE>
<CAPTION>

Assets
<S>                                                                          <C>
   Cash and cash equivalents                                                 $ 299
   Receivables and deposits                                                     143
   Restricted escrows                                                           181
   Other assets                                                                 219
   Investment property:
       Land                                                  $ 1,094
       Buildings and related personal property                  9,978
                                                               11,072
       Less accumulated depreciation                           (7,343)        3,729
                                                                            $ 4,571
Liabilities and Partners' Deficit
Liabilities
   Accounts payable                                                          $ 78
   Tenant security deposit liabilities                                           17
   Accrued property taxes                                                        25
   Other liabilities                                                            143
   Mortgage note payable                                                      5,090

Partners' Deficit:
   General partner                                            $ (309)
   Limited partners (60,517 units
      issued and outstanding)                                    (473)         (782)
                                                                            $ 4,571


               See Accompanying Notes to Financial Statements

</TABLE>

<PAGE>
                          NATIONAL PROPERTY INVESTORS 7

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

<TABLE>
<CAPTION>

                                                Three Months Ended         Six Months Ended
                                                     June 30,                  June 30,
                                                2004          2003         2004         2003
                                                           (Restated)                (Restated)
Revenues:
<S>                                             <C>          <C>          <C>          <C>
  Rental income                                 $ 279        $ 330        $ 575        $ 663
  Other income                                      17           14           34           30
     Total revenues                                296          344          609          693

Expenses:
  Operating                                        150          128          247          224
  General and administrative                        86           94          135          206
  Depreciation                                      94           92          188          186
  Interest                                          92           95          185          190
  Property taxes                                    12           12           24           24
     Total expenses                                434          421          779          830

Loss from continuing operations                   (138)         (77)        (170)        (137)
(Loss) income from discontinued
  operations (Note A)                           (1,185)          17       (1,171)           5
Gain on sale of discontinued operations
  (Note C)                                       6,628           --        6,628           --

Net income (loss)                              $ 5,305       $ (60)      $ 5,287       $ (132)

Net income (loss) allocated to general
  partner (1%)                                  $ 53          $ (1)        $ 53         $ (1)
Net income (loss) allocated to limited
  partners (99%)                                 5,252          (59)       5,234         (131)

                                               $ 5,305       $ (60)      $ 5,287       $ (132)
(Loss) income per limited partnership unit:
    Loss from continuing operations              (2.26)       (1.25)       (2.78)       (2.24)
    (Loss) income from discontinued
      operations                                (19.38)        0.28       (19.16)        0.08
    Income from sale of discontinued
      operations                                108.43           --       108.43           --

                                               $ 86.79      $ (0.97)     $ 86.49      $ (2.16)
Distributions per limited partnership
  unit                                         $ 70.91      $ 21.45      $113.84      $ 26.82


               See Accompanying Notes to Financial Statements

</TABLE>

<PAGE>
                          NATIONAL PROPERTY INVESTORS 7

                    STATEMENT OF CHANGES IN PARTNERS' DEFICIT
                                   (Unaudited)
                        (in thousands, except unit data)

<TABLE>
<CAPTION>
                                     Limited
                                   Partnership    General     Limited
                                      Units       Partner     Partners      Total

<S>                                   <C>           <C>       <C>          <C>
Original capital contributions        60,517        $ 1       $30,259      $30,260

Partners' (deficiency) capital
   at December 31, 2003               60,517      $ (293)     $ 1,182       $ 889

Distributions to partners                 --          (69)     (6,889)      (6,958)

Net income for the six months
   ended June 30, 2004                    --           53       5,234        5,287

Partners' deficit at
   June 30, 2004                      60,517      $ (309)      $ (473)     $ (782)


               See Accompanying Notes to Financial Statements

</TABLE>

<PAGE>

                          NATIONAL PROPERTY INVESTORS 7

                            STATEMENTS OF CASH FLOWS
                                   (Unaudited)
                                 (in thousands)
<TABLE>
<CAPTION>

                                                                     Six Months Ended
                                                                         June 30,
                                                                     2004         2003
Cash flows from operating activities:
<S>                                                                 <C>          <C>
  Net income (loss)                                                 $ 5,287      $ (132)
  Adjustments to reconcile net income (loss) to net cash
   (used in ) provided by operating activities:
     Depreciation                                                       317        1,064
     Amortization of loan costs                                           6           37
     Loss on early extinguishment of debt                             1,119           14
     Gain on sale of investment property                             (6,628)          --
     Change in accounts:
      Receivables and deposits                                          230         (148)
      Other assets                                                        3         (116)
      Accounts payable                                                 (196)          28
      Tenant security deposit liabilities                               (18)          (4)
      Accrued property taxes                                             25          185
      Due to affiliates                                                 (72)          --
      Other liabilities                                                (229)        (131)
        Net cash (used in) provided by operating activities            (156)         797

Cash flows from investing activities:
  Property improvements and replacements                               (106)        (233)
  Net receipts from restricted escrows                                   88          147
  Net proceeds from sale of discontinued operations                   8,748           --
        Net cash provided by (used in) investing activities           8,730          (86)

Cash flows from financing activities:
  Repayment of mortgage notes payable                                (3,790)      (7,600)
  Debt extinguishment costs                                          (1,027)          --
  Proceeds from mortgage notes payable                                   --        9,290
  Payments on mortgage notes payable                                   (113)        (212)
  Loan cost additions                                                   (15)        (210)
  Distributions to partners                                          (6,958)      (1,639)
        Net cash used in financing activities                       (11,903)        (371)

Net (decrease) increase in cash and cash equivalents                 (3,329)         340

Cash and cash equivalents at beginning of period                      3,628          614

Cash and cash equivalents at end of period                           $ 299        $ 954

Supplemental disclosure of cash flow information:
  Cash paid for interest                                             $ 282        $ 890

Supplemental disclosure of non-cash activity:
  Replacement reserves in accounts receivable                        $ --         $ 93

               See Accompanying Notes to Financial Statements

</TABLE>

<PAGE>
                          NATIONAL PROPERTY INVESTORS 7

                          NOTES TO FINANCIAL STATEMENTS
                                   (Unaudited)


Note A - Basis of Presentation

The accompanying unaudited financial statements of National Property Investors 7
(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 NPI Equity Investments, Inc. (the "Managing 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, 2004 are not  necessarily  indicative  of the
results that may be expected for the fiscal year ending  December 31, 2004.  For
further  information,  refer to the financial  statements and footnotes  thereto
included in the  Partnership's  Annual Report on Form 10-KSB for the fiscal year
ended  December  31,  2003.  The  Managing  General  Partner is an  affiliate of
Apartment  Investment and Management Company  ("AIMCO"),  a publicly traded real
estate investment trust.

In accordance with Statement of Financial Accounting Standards ("SFAS") No. 144,
the accompanying statement of operations for the three and six months ended June
30,  2003  has been  restated  to  reflect  the  operations  of  Patchen  Place,
Northwoods I & II and South Point Apartments as (loss) income from  discontinued
operations  due to their sales in 2003.  Patchen  Place was sold in October 2003
and Northwoods I and II and South Point were sold in December 2003. In addition,
The Pines of Roanoke  Apartments is included in income (loss) from  discontinued
operations  for the six months  ended June 30,  2004 and 2003 due to its sale in
April 2004.

Note B - Transactions with Affiliated Parties

The  Partnership  has no employees  and is  dependent  on the  Managing  General
Partner  and  its  affiliates  for  the  management  and  administration  of all
Partnership  activities.  The  Partnership  Agreement  provides  for payments to
affiliates for services and as  reimbursement  of certain  expenses  incurred by
affiliates on behalf of the Partnership.

During the six months ended June 30, 2004 and 2003,  affiliates  of the Managing
General  Partner were  entitled to receive 5% of gross  receipts from all of the
Partnership's  properties  as  compensation  for providing  property  management
services.  The  Partnership  paid to such affiliates  approximately  $60,000 and
$181,000 for the six months ended June 30, 2004 and 2003, respectively, which is
included in operating expenses and (loss) income from discontinued operations.

An  affiliate  of  the  Managing  General  Partner  received   reimbursement  of
accountable  administrative  expenses  amounting  to  approximately  $64,000 and
$119,000 for the six months ended June 30, 2004 and 2003, respectively, which is
included in general and administrative expenses.

For services relating to the  administration of the Partnership and operation of
Partnership  properties,  the  Managing  General  Partner is entitled to receive
payment for  non-accountable  expenses up to a maximum of $150,000 per year from
distributions from operations,  based upon the number of Partnership units sold,
subject  to  certain   limitations.   The  Managing   General  Partner  received
approximately  $58,000 in reimbursements for the six month period ended June 30,
2003,  which is included in general and  administrative  expenses.  No such fees
were earned during the same period in 2004 as there were no  distributions  from
operations.

For managing the affairs of the Partnership, the Managing General Partner of the
Partnership  is entitled to receive a  partnership  management  fee.  The fee is
equal to 4% of the  Partnership's  adjusted cash from operations,  as defined in
the Partnership  Agreement,  in any year, provided that 50% of the fee shall not
be paid until the Partnership has distributed to the limited  partners  adjusted
cash from operations in such year which is equal to 5% of the limited  partners'
adjusted invested capital, as defined,  on a non-cumulative  basis. In addition,
50% of the fee shall not be paid until the  Partnership  has  distributed to the
limited partners adjusted cash from operations in such year which is equal to 8%
of the limited partners'  adjusted  invested capital on a non-cumulative  basis.
The fee shall be paid when adjusted cash from  operations is  distributed to the
limited partners.  The Managing General Partner was not entitled to receive this
fee during the six months ended June 30, 2004 or 2003.

NPI Equity,  on behalf of the Partnership and certain  affiliated  partnerships,
has established a revolving credit facility (the  "Partnership  Revolver") to be
used to fund deferred  maintenance  and working capital needs of the Partnership
and certain other  affiliated  partnerships in the National  Property  Investors
Partnership  Series.  The maximum draw  available to the  Partnership  under the
Partnership Revolver is $500,000. Loans under the Partnership Revolver will have
a term of 365 days, be unsecured and bear interest at the prime rate plus 2% per
annum. The maturity date of any such borrowing  accelerates in the event of: (i)
the removal of NPI Equity as the managing  general  partner  (whether or not for
cause);  (ii) the sale or refinancing of a property by the Partnership  (whether
or not a borrowing under the Partnership  Revolver was made with respect to such
property);  or (iii) the liquidation of the  Partnership.  At June 30, 2004, the
Partnership had no outstanding amounts due under this Partnership Revolver.

In addition to  reimbursement  for services of  affiliates,  an affiliate of the
Managing  General Partner earned  approximately  $93,000 for services related to
the  refinancing  of Patchen  Place and South  Point  Apartments  during the six
months ended June 30, 2003. No such  reimbursements  were earned during the same
period in 2004.

The  Partnership  insures its properties up to certain  limits through  coverage
provided by AIMCO which is  generally  self-insured  for a portion of losses and
liabilities  related to workers  compensation,  property  casualty  and  vehicle
liability. The Partnership insures its properties above the AIMCO limits through
insurance  policies  obtained  by  AIMCO  from  insurers  unaffiliated  with the
Managing  General  Partner.  During the six months ended June 30, 2004 and 2003,
the  Partnership was charged by AIMCO and its affiliates  approximately  $13,000
and $92,000  respectively,  for the insurance  coverage and fees associated with
policy claims administration.

Note C- Sale of Investment Properties

On April 30, 2004,  the  Partnership  sold The Pines  Apartments to an unrelated
third  party for net  proceeds  of  approximately  $8,748,000  after  payment of
closing costs. The Partnership realized a gain of approximately  $6,628,000 as a
result of the sale. The  Partnership  used  approximately  $3,790,000 of the net
proceeds to repay the  mortgage  encumbering  the  property.  In  addition,  the
Partnership  recorded a loss on early  extinguishment  of debt of  approximately
$1,119,000  as a result  of  unamortized  loan  costs  being  written  off and a
prepayment  penalty.  This amount is included in (loss) income from discontinued
operations.  In  accordance  with  SFAS  144,  the  accompanying  statements  of
operations  for the three and six months ended June 30, 2003 have been  restated
to reflect the operations of The Pines  Apartments as  discontinued  operations.
Included in (loss) income from discontinued  operations for the six months ended
June 30, 2004 and 2003 is approximately $473,000 and $738,000  respectively,  of
revenue generated by the property.

Note D - Refinancing of Mortgage Notes Payable

On May 16, 2003, the  Partnership  refinanced the mortgage  encumbering  Patchen
Place Apartments.  The refinancing  replaced the existing mortgage of $3,000,000
with a new mortgage in the amount of $4,290,000.  Total  capitalized  loan costs
were  approximately  $98,000  during the six months  ended  June 30,  2003.  The
Partnership   recognized  a  loss  on  the  early   extinguishment  of  debt  of
approximately $7,000 during the six months ended June 30, 2003, due to the write
off of unamortized  loan costs and debt  discounts,  which is included in (loss)
income from discontinued operations.

On June 27, 2003,  the  Partnership  refinanced the mortgage  encumbering  South
Point Apartments.  The refinancing  replaced the existing mortgage of $4,600,000
with a new mortgage in the amount of $5,000,000.  Total  capitalized  loan costs
were  approximately  $112,000  during the six months  ended June 30,  2003.  The
Partnership   recognized  a  loss  on  the  early   extinguishment  of  debt  of
approximately $7,000 during the six months ended June 30, 2003, due to the write
off of unamortized  loan costs and debt  discounts,  which is included in (loss)
income from discontinued operations.

Initially the May 16, 2003  refinancing of Patchen Place Apartments and the June
27, 2003  refinancing  of South Point  Apartments  were under an interim  credit
facility  ("Interim Credit Facility") which also provided for the refinancing of
several other properties. The Interim Credit Facility created separate loans for
each property refinanced thereunder,  which loans were not  cross-collateralized
or  cross-defaulted  with each  other.  During  the term of the  Interim  Credit
Facility,  Patchen  Place and  South  Point  Apartments  were  required  to make
interest-only  payments.  The first  month's  interest  rate for  Patchen  Place
Apartments was 2.78% and for South Point Apartments was 2.60%.

As of July 1 and  August 1,  2003,  the loan on  Patchen  Place and South  Point
Apartments,  respectively,  were  assumed  by a  different  lender.  The  credit
facility  ("Permanent  Credit Facility") with the new lender had a maturity date
of  September  2007 with an option for the  Partnership  to elect one  five-year
extension.  This Permanent  Credit Facility also created separate loans for each
property  refinanced  thereunder,  which loans are not  cross-collateralized  or
cross-defaulted  with each other. Each note under this Permanent Credit Facility
was initially a variable rate loan,  and after three years the  Partnership  had
the option of converting the note to a fixed rate loan. The interest rate on the
variable  rate  loans  was 85  basis  points  over  the  Fannie  Mae  discounted
mortgage-backed  security  index (1.8% per annum at July 1, 2003),  and the rate
reset  monthly.  Each loan  automatically  renewed at the end of each month.  In
addition,   monthly  principal   payments  were  required  based  on  a  30-year
amortization schedule,  using the interest rate in effect during the first month
that the properties were on the Permanent  Credit  Facility.  The loans could be
prepaid  without  penalty.  The loans were repaid when Patchen Place  Apartments
sold in October 2003 and South Point Apartments sold in December 2003.

Note E - Contingencies

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

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

In general  terms,  the  proposed  settlement  provides  for  certification  for
settlement  purposes of a settlement class consisting of all limited partners in
this  Partnership and others (the  "Partnerships")  as of December 20, 2002, the
dismissal  with  prejudice  and  release  of claims  in the  Nuanes  and  Heller
litigation,  payment by AIMCO of $9.9  million  (which shall be  distributed  to
settlement  class  members  after  deduction of attorney fees and costs of class
counsel and certain costs of settlement) and up to $1 million toward the cost of
independent  appraisals of the  Partnerships'  properties  by a Court  appointed
appraiser.  An affiliate of the Managing General Partner has also agreed to make
at least one round of tender offers to purchase all of the partnership interests
in the Partnerships within one year of final approval,  if it is granted, and to
provide  partners with the independent  appraisals at the time of these tenders.
The proposed  settlement also provided for the limitation of the allowable costs
which  the  Managing   General   Partner  or  its  affiliates  will  charge  the
Partnerships  in connection with this litigation and imposes limits on the class
counsel  fees and  costs in this  litigation.  On April  11,  2003,  notice  was
distributed  to  limited   partners   providing  the  details  of  the  proposed
settlement.

On June 13, 2003, the Court granted final approval of the settlement and entered
judgment in both the Nuanes and Heller actions.  On August 12, 2003, an objector
("Objector")  filed an  appeal  seeking  to  vacate  and/or  reverse  the  order
approving the settlement and entering  judgment  thereto.  On November 24, 2003,
the Objector filed an  application  requesting the Court order AIMCO to withdraw
settlement  tender offers it had  commenced,  refrain from making further offers
pending the appeal and auction any units tendered to third  parties,  contending
that the offers did not conform  with the terms of the  Settlement.  Counsel for
the Objector (on behalf of another  investor)  had  alternatively  requested the
Court take certain  action  purportedly  to enforce the terms of the  settlement
agreement.  On December 18, 2003,  the Court heard oral  argument on the motions
and denied them both in their entirety.

On January 28, 2004,  Objector filed his opening brief in his pending appeal. On
April 23, 2004, the Managing General Partner and its affiliates filed a response
brief in support of the settlement  and the judgment  thereto.  Plaintiffs  have
also filed a brief in support of the settlement. On June 4, 2004, Objector filed
a reply to the briefs  submitted by the Managing General Partner and Plaintiffs.
No hearing has been scheduled in the matter.

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

On August 8, 2003 AIMCO  Properties  L.P., an affiliate of the Managing  General
Partner,  was served  with a  complaint  in the United  States  District  Court,
District of Columbia alleging that AIMCO Properties L.P.  willfully violated the
Fair Labor Standards Act ("FLSA") by failing to pay maintenance workers overtime
for all hours  worked in excess of forty per week.  On March 5, 2004  Plaintiffs
filed an amended complaint also naming NHP Management Company,  which is also an
affiliate  of the  Managing  General  Partner.  The  complaint  is  styled  as a
Collective  Action  under  the FLSA and seeks to  certify  state  subclasses  in
California, Maryland, and the District of Columbia. Specifically, the plaintiffs
contend that AIMCO Properties L.P. failed to compensate  maintenance workers for
time  that they were  required  to be  "on-call".  Additionally,  the  complaint
alleges AIMCO  Properties  L.P.  failed to comply with the FLSA in  compensating
maintenance  workers  for time that they  worked in  responding  to a call while
"on-call".  The defendants have filed an answer to the amended complaint denying
the  substantive  allegations.  Some  discovery  has taken place and  settlement
negotiations  continue.  Although the outcome of any  litigation  is  uncertain,
AIMCO  Properties,  L.P. does not believe that the ultimate  outcome will have a
material  adverse  effect on its  financial  condition or results of  operations
taken as a whole. Similarly,  the Managing General Partner does not believe that
the ultimate  outcome will have a material  adverse effect on the  Partnership's
financial condition or results of operations taken as a whole.

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

As  previously  disclosed,  the  Central  Regional  Office of the United  States
Securities and Exchange  Commission is conducting an  investigation  relating to
certain  matters.  AIMCO  believes the areas of  investigation  include  AIMCO's
miscalculated   monthly  net  rental  income  figures  in  third  quarter  2003,
forecasted  guidance,  accounts payable,  rent concessions,  vendor rebates, and
capitalization of expenses and payroll.  AIMCO is cooperating  fully. AIMCO does
not believe that the ultimate outcome will have a material adverse effect on its
consolidated  financial  condition  or results of  operations  taken as a whole.
Similarly,  the  Managing  General  Partner  does not believe  that the ultimate
outcome  will have a  material  adverse  effect on the  Partnership's  financial
condition or results of operations taken as a whole.

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

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

The Partnership's  investment  property consists of one apartment  complex.  The
following table sets forth the average occupancy of the property for each of the
six month periods ended June 30, 2004 and 2003:

                                                   Average Occupancy
                                                    2004       2003

      Fairway View II Apartments (1)                80%        92%
         Baton Rouge, Louisiana

(1)   The  Managing  General  Partner  attributes  the  decrease in occupancy at
      Fairway View II Apartments to strong  competition from new construction in
      the local market area.

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

Results of Operations

The  Partnership's  net income for the three and six months  ended June 30, 2004
was approximately $5,305,000 and $5,287,000,  respectively, compared to net loss
of approximately  $60,000 and $132,000 for the three and six month periods ended
June 30,  2003,  respectively.  The increase in net income for the three and six
months  period is primarily  due to the  recognition  of the gain on sale of The
Pines Apartments.

In accordance with Statement of Financial Accounting Standards ("SFAS") No. 144,
the accompanying statement of operations for the three and six months ended June
30,  2003  has been  restated  to  reflect  the  operations  of  Patchen  Place,
Northwoods I & II and South Point Apartments as (loss) income from  discontinued
operations  due to their sales in 2003.  Patchen  Place was sold in October 2003
and Northwoods I and II and South Point were sold in December 2003.

On April 30, 2004,  the  Partnership  sold The Pines  Apartments to an unrelated
third  party for net  proceeds  of  approximately  $8,748,000  after  payment of
closing costs. The Partnership realized a gain of approximately  $6,628,000 as a
result of the sale. The  Partnership  used  approximately  $3,790,000 of the net
proceeds to repay the  mortgage  encumbering  the  property.  In  addition,  the
Partnership  recorded a loss on early  extinguishment  of debt of  approximately
$1,119,000  as a result  of  unamortized  loan  costs  being  written  off and a
prepayment  penalty.  This amount is included in (loss) income from discontinued
operations.  In  accordance  with  SFAS  144,  the  accompanying  statements  of
operations  for the three and six months ended June 30, 2003 have been  restated
to  reflect  the  operations  of Pines of Roanoke  as  discontinued  operations.
Included in (loss) income from discontinued  operations for the six months ended
June 30, 2004 and 2003 is approximately $473,000 and $738,000  respectively,  of
revenue generated by the property.

Excluding the gain on sale and the discontinued  operations,  the  Partnership's
net loss from continuing  operations for the three and six months ended June 30,
2004  was   approximately   $138,000  and  $170,000  compared  to  net  loss  of
approximately  $77,000 and $137,000 for the  corresponding  period in 2003.  The
decrease  in income for the three  month  period is due to a  decrease  in total
revenue and an increase in total  expenses.  The  decrease in income for the six
month  period  is due to a  decrease  in total  revenue,  partially  offset by a
decrease in total expenses.  Total revenues  decreased for both periods due to a
decrease  in  rental  income.  Rental  income  decreased  due to a  decrease  in
occupancy  and an increase in bad debt  expenses at Fairway View II  Apartments,
partially offset by an increase in rental rates.

Total expenses  decreased for the six month period principally due to a decrease
in general  and  administrative  expenses  partially  offset by an  increase  in
operating  expenses.  Total  expenses  increased  for  the  three  month  period
principally  due to an  increase in  operating  expenses  partially  offset by a
decrease in general and  administrative  expenses.  Operating expenses increased
for both periods due to an increase in  administrative  expense.  Administrative
expense increased due to increases in training and travel expenses.

General and  administrative  expense decreased for both periods due to decreases
in the  management  reimbursements  paid to the  Managing  General  Partner,  as
allowed under the  Partnership  Agreement,  and in the fees paid to the Managing
General Partner in connection with distributions from operations.  Also included
in general and  administrative  expenses  for the six months ended June 30, 2004
and 2003 are costs associated with the quarterly and annual  communications with
investors  and  regulatory  agencies  and  the  annual  audit  required  by  the
Partnership Agreement.

Liquidity and Capital Resources

At June 30, 2004, the Partnership had cash and cash equivalents of approximately
$299,000 compared to approximately $954,000 at June 30, 2003. For the six months
ended  June 30,  2004,  cash and cash  equivalents  decreased  by  approximately
$3,329,000 due to approximately $11,903,000 of cash used in financing activities
and approximately $156,000 of cash used in operating activities partially offset
by approximately $8,730,000 of cash provided by investing activities.  Cash used
in financing  activities  consisted of the repayment of the mortgage encumbering
The Pines  Apartments,  principal  payments  on the  mortgages  encumbering  the
Partnership's  investment  properties,  debt  extinguishment  costs,  loan  cost
additions,  and  distributions  to the  partners.  Cash  provided  by  investing
activities  consisted of net sales  proceeds and net  receipts  from  restricted
escrows,  partially  offset  by  property  improvements  and  replacements.  The
Partnership invests its working capital in interest bearing accounts.

NPI Equity,  on behalf of the Partnership and certain  affiliated  partnerships,
has established a revolving credit facility (the  "Partnership  Revolver") to be
used to fund deferred  maintenance  and working capital needs of the Partnership
and certain other  affiliated  partnerships in the National  Property  Investors
Partnership  Series.  The maximum draw  available to the  Partnership  under the
Partnership Revolver is $500,000. Loans under the Partnership Revolver will have
a term of 365 days, be unsecured and bear interest at the prime rate plus 2% per
annum. The maturity date of any such borrowing  accelerates in the event of: (i)
the removal of NPI Equity as the managing  general  partner  (whether or not for
cause);  (ii) the sale or refinancing of a property by the Partnership  (whether
or not a borrowing under the Partnership  Revolver was made with respect to such
property);  or (iii) the liquidation of the  Partnership.  At June 30, 2004, the
Partnership had no outstanding amounts due under this Partnership Revolver.

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 property to adequately maintain the physical assets
and other operating needs of the Partnership and to comply with Federal,  state,
and local  legal and  regulatory  requirements.  The  Managing  General  Partner
monitors  developments  in the  area of legal  and  regulatory  compliance.  For
example,  the  Sarbanes-Oxley  Act  of  2002  mandates  or  suggests  additional
compliance  measures  with  regard to  governance,  disclosure,  audit and other
areas.  In light of these changes,  the  Partnership  expects that it will incur
higher expenses related to compliance, including increased legal and audit fees.
Capital improvements planned for the Partnership's property are detailed below.

Fairway View II

During  the  six  months  ended  June  30,  2004,  the   Partnership   completed
approximately  $71,000 of capital  improvements  at Fairway View II  Apartments,
consisting  primarily  of  roof  replacements,  structural  upgrades  and  floor
covering and air conditioning unit replacements.  These improvements were funded
from  operating  cash flow. The  Partnership  evaluates the capital  improvement
needs of the  property  during the year and  currently  expects to  complete  an
additional  $41,000  in  capital  improvements  during  the  remainder  of 2004.
Additional  capital  improvements  may be  considered  and  will  depend  on the
physical  condition  of the  property as well as  replacement  reserves  and the
anticipated cash flow generated by the property.

The Pines

During  the  six  months  ended  June  30,  2004,  the   Partnership   completed
approximately   $35,000  of  capital   improvements  at  The  Pines  Apartments,
consisting  primarily of floor covering and roof replacements and heating system
upgrades.  These  improvements  were funded from  operating cash flow. The Pines
Apartments were sold April 30, 2004.

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

The  Partnership's  assets are thought to be sufficient for any near-term  needs
(exclusive  of  capital   improvements)   of  the   Partnership.   The  mortgage
indebtedness  encumbering the investment  property of  approximately  $5,090,000
matures  December  1,  2021 at  which  time the  loan is  scheduled  to be fully
amortized.

Pursuant to the Partnership Agreement,  the term of the Partnership is scheduled
to expire on December 31, 2008. Accordingly,  prior to such date the Partnership
will need to either  sell its  investment  properties  or extend the term of the
Partnership.

The Partnership  distributed  the following  amounts during the six months ended
June 30, 2004 and 2003 (in thousands, except per unit data):
<TABLE>
<CAPTION>

                         Six Months       Per Limited        Six Months       Per Limited
                           Ended          Partnership          Ended          Partnership
                       June 30, 2004          Unit         June 30, 2003         Unit

<S>                         <C>               <C>              <C>              <C>
Operations                  $ --              $ --             $ 610            $ 9.98
Refinancing (2)                --                --             1,029            16.84
Sale (1)                    6,958            113.84                --               --
    Total                  $6,958           $113.84            $1,639           $26.82
</TABLE>

(1)   Proceeds  from the sales of South Point  Apartments  in December  2003
      and The Pines Apartments in April 2004.

(2)   Proceeds from the refinancing of Patchen Place Apartments during May 2003.

Future cash  distributions  will depend on the levels of net cash generated from
operations,  the  availability of cash reserves and the timing of debt maturity,
refinancing   and/or  property  sale.  The  Partnership's   cash  available  for
distribution is reviewed on a monthly basis. There can be no assurance, however,
that the  Partnership  will  generate  sufficient  funds from  operations  after
required capital  expenditures,  to permit further distributions to its partners
during the remainder of 2004 or subsequent periods.

Other

In addition to its indirect  ownership of the Managing  General Partner interest
in the Partnership, AIMCO and its affiliates owned 41,649.67 limited partnership
units (the "Units") in the  Partnership  representing  68.82% of the outstanding
Units at June 30, 2004. A number of these Units were acquired pursuant to tender
offers  made by  AIMCO  or its  affiliates.  It is  possible  that  AIMCO or its
affiliates will acquire  additional  Units in exchange for cash or a combination
of cash and units in AIMCO Properties, L.P., the operating partnership of AIMCO,
either through private  purchases or tender offers.  In this regard, on June 13,
2004,  AIMCO  Properties,  L.P.,  commenced  a  tender  offer to  acquire  up to
18,867.34 Units for a purchase price of $40.27 per Unit.  Subsequent to June 30,
2004, AIMCO Properties, L.P. extended the expiration date of the offer to August
13, 2004. Pursuant to the Partnership Agreement, unit holders holding a majority
of the Units are  entitled to take  action with  respect to a variety of matters
that  include,  but are not  limited  to,  voting on certain  amendments  to the
Partnership  Agreement and voting to remove the Managing General  Partner.  As a
result  of its  ownership  of  68.82% of the  outstanding  Units,  AIMCO and its
affiliates are in a position to influence all such voting decisions with respect
to the Partnership.  However,  DeForest  Ventures II L.P., from whom AIMCO IPLP,
L.P., an affiliate of the Managing General Partner and of AIMCO, acquired 25,399
Units  (41.97% of the  units),  agreed for the  benefit  of  non-tendering  unit
holders,  that it would vote its Units: (i) against any increase in compensation
payable to the Managing  General Partner or to its  affiliates;  and (ii) on all
other matters submitted by it or its affiliates, in proportion to the votes cast
by third party unit holders.  Except for the foregoing, no other limitations are
imposed on IPLP's, AIMCO's or any other affiliates right to vote each unit held.
Although  the Managing  General  Partner  owes  fiduciary  duties to the limited
partners of the  Partnership,  the Managing  General Partner also owes fiduciary
duties to AIMCO as its sole stockholder. As a result, the duties of the Managing
General Partner, as Managing General Partner, to the Partnership and its limited
partners may come into conflict with the duties of the Managing  General Partner
to AIMCO, as its sole stockholder.

Critical Accounting Policies and Estimates

The financial  statements are prepared in accordance with accounting  principles
generally  accepted in the United States which require the  Partnership  to make
estimates and  assumptions.  The  Partnership  believes that of its  significant
accounting  policies,  the following may involve a higher degree of judgment and
complexity.

Impairment of Long-Lived Assets

Investment property is recorded at cost, less accumulated  depreciation,  unless
considered  impaired.  If events or  circumstances  indicate  that the  carrying
amount of a property may be impaired, the Partnership will make an assessment of
its recoverability by estimating the undiscounted  future cash flows,  excluding
interest charges, of the property.  If the carrying amount exceeds the aggregate
future cash flows,  the  Partnership  would  recognize an impairment loss to the
extent the carrying amount exceeds the fair value of the property.

Real  property  investments  are  subject  to varying  degrees of risk.  Several
factors  may  adversely  affect  the  economic  performance  and  value  of  the
Partnership's  investment  property.  These factors include, but are not limited
to,  changes  in the  national,  regional  and  local  economic  climate;  local
conditions,  such as an oversupply of multifamily  properties;  competition from
other available  multifamily property owners and changes in market rental rates.
Any adverse changes in these factors could cause impairment of the Partnership's
assets.

Revenue Recognition

The Partnership generally leases apartment units for twelve-month terms or less.
Rental income  attributable to leases is recognized monthly as it is earned. The
Partnership  evaluates all accounts receivable from residents and establishes an
allowance, after the application of security deposits, for accounts greater than
30 days past due on current tenants and all receivables due from former tenants.
The Partnership will offer rental concessions during particularly slow months or
in response to heavy  competition from other similar  complexes in the area. Any
concessions  given at the inception of the lease are amortized  over the life of
the lease.

ITEM 3.     CONTROLS AND PROCEDURES

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

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

                           PART II - OTHER INFORMATION


ITEM 1.     LEGAL PROCEEDINGS

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

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

In general  terms,  the  proposed  settlement  provides  for  certification  for
settlement  purposes of a settlement class consisting of all limited partners in
this  Partnership and others (the  "Partnerships")  as of December 20, 2002, the
dismissal  with  prejudice  and  release  of claims  in the  Nuanes  and  Heller
litigation,  payment by AIMCO of $9.9  million  (which shall be  distributed  to
settlement  class  members  after  deduction of attorney fees and costs of class
counsel and certain costs of settlement) and up to $1 million toward the cost of
independent  appraisals of the  Partnerships'  properties  by a Court  appointed
appraiser.  An affiliate of the Managing General Partner has also agreed to make
at least one round of tender offers to purchase all of the partnership interests
in the Partnerships within one year of final approval,  if it is granted, and to
provide  partners with the independent  appraisals at the time of these tenders.
The proposed  settlement also provided for the limitation of the allowable costs
which  the  Managing   General   Partner  or  its  affiliates  will  charge  the
Partnerships  in connection with this litigation and imposes limits on the class
counsel  fees and  costs in this  litigation.  On April  11,  2003,  notice  was
distributed  to  limited   partners   providing  the  details  of  the  proposed
settlement.

On June 13, 2003, the Court granted final approval of the settlement and entered
judgment in both the Nuanes and Heller actions.  On August 12, 2003, an objector
("Objector")  filed an  appeal  seeking  to  vacate  and/or  reverse  the  order
approving the settlement and entering  judgment  thereto.  On November 24, 2003,
the Objector filed an  application  requesting the Court order AIMCO to withdraw
settlement  tender offers it had  commenced,  refrain from making further offers
pending the appeal and auction any units tendered to third  parties,  contending
that the offers did not conform  with the terms of the  Settlement.  Counsel for
the Objector (on behalf of another  investor)  had  alternatively  requested the
Court take certain  action  purportedly  to enforce the terms of the  settlement
agreement.  On December 18, 2003,  the Court heard oral  argument on the motions
and denied them both in their entirety.

On January 28, 2004,  Objector filed his opening brief in his pending appeal. On
April 23, 2004, the Managing General Partner and its affiliates filed a response
brief in support of the settlement  and the judgment  thereto.  Plaintiffs  have
also filed a brief in support of the settlement. On June 4, 2004, Objector filed
a reply to the briefs  submitted by the Managing General Partner and Plaintiffs.
No hearing has been scheduled in the matter.

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

On August 8, 2003 AIMCO  Properties  L.P., an affiliate of the Managing  General
Partner,  was served  with a  complaint  in the United  States  District  Court,
District of Columbia alleging that AIMCO Properties L.P.  willfully violated the
Fair Labor Standards Act ("FLSA") by failing to pay maintenance workers overtime
for all hours  worked in excess of forty per week.  On March 5, 2004  Plaintiffs
filed an amended complaint also naming NHP Management Company,  which is also an
affiliate  of the  Managing  General  Partner.  The  complaint  is  styled  as a
Collective  Action  under  the FLSA and seeks to  certify  state  subclasses  in
California, Maryland, and the District of Columbia. Specifically, the plaintiffs
contend that AIMCO Properties L.P. failed to compensate  maintenance workers for
time  that they were  required  to be  "on-call".  Additionally,  the  complaint
alleges AIMCO  Properties  L.P.  failed to comply with the FLSA in  compensating
maintenance  workers  for time that they  worked in  responding  to a call while
"on-call".  The defendants have filed an answer to the amended complaint denying
the  substantive  allegations.  Some  discovery  has taken place and  settlement
negotiations  continue.  Although the outcome of any  litigation  is  uncertain,
AIMCO  Properties,  L.P. does not believe that the ultimate  outcome will have a
material  adverse  effect on its  financial  condition or results of  operations
taken as a whole. Similarly,  the Managing General Partner does not believe that
the ultimate  outcome will have a material  adverse effect on the  Partnership's
financial condition or results of operations taken as a whole.

ITEM 6.     EXHIBITS AND REPORTS ON FORM 8-K

            a)    Exhibits:

                  See Exhibit Index attached.

            b)    Reports on Form 8-K:

                  None filed during the quarter ended June 30, 2004.


<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.



                                    NATIONAL PROPERTY INVESTORS 7


                                    By:   NPI EQUITY INVESTMENTS, INC.
                                          Its Managing General Partner


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


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


                                    Date: August 13, 2004



<PAGE>



                                  EXHIBIT INDEX

Exhibit Number    Description of Exhibit

 2.5              Master  Indemnity  Agreement  dated as of August 17, 1995.(1)

 3.4              (a)   Agreement of Limited Partnership. (3)

                  (b) Amendments to the Agreement of Limited Partnership. (4)

                  (c) Amendments to the Agreement of Limited Partnership. (5)

                  (d) Amendments to the Agreements of Limited Partnership. (6)

10.3              Property  Management  Agreement  dated June 21,  1991,  by and
                  between the  Registrant  and NPI  Management  incorporated  by
                  reference to Exhibit 10.4 to the Registrant's Annual Report on
                  Form 10-K for the year ended December 31, 1991.
                  (7)

10.10             Multifamily  Note dated  December 9, 1999,  by and between
                  National  Property   Investors  7,  a  California  limited
                  partnership and GMAC Commercial  Mortgage  Corporation,  a
                  California corporation. (10)

(1)               Incorporated  by  reference  to  Exhibit  2.5 to Form  8-K
                  filed  by  Insignia  with  the   Securities  and  Exchange
                  Commission on September 1, 1995.

(3)               Incorporated  by reference to Exhibit A to the  Prospectus  of
                  the   Registrant   dated  July  5,  1978,   contained  in  the
                  Registrant's  Registration  Statement  on Form S-11 (Reg.  No.
                  2-599991).

(4)               Incorporated   by  reference  to  the   Definitive   Proxy
                  Statement of the Partnership dated July 2, 1981.

(5)               Incorporated by reference to Definitive Proxy statement of the
                  Partnership dated April 3, 1991.

(6)               Incorporated  by  reference,  to the  Statement  Furnished  in
                  Connection With the Solicitation of Consents of the Registrant
                  dated August 28, 1992.

(7)               Incorporated by reference to the Registrant's Annual Report on
                  Form 10-K for the year  ended  December  31,  1991.  Identical
                  agreements have been entered into for each of the Registrant's
                  properties.  The only difference in the agreements is that the
                  applicable property name has been inserted into the agreement.

(10)              Incorporated  by  reference  to  the  Registrant's  Annual
                  Report on Form 10-KSB for the period  ended  December  31,
                  1999.

10.11             Multifamily  Note  dated  August  31,  2001,  by  and  between
                  National   Property   Investors   7,  a   California   Limited
                  Partnership,  and  GMAC  Commercial  Mortgage  Corporation,  a
                  California   Corporation  relating  to  Northwoods  I  and  II
                  Apartments.  (incorporated  by reference  to the  Registrant's
                  Quarterly   Report  on  Form  10-QSB  for  the  quarter  ended
                  September 30, 2001).

10.12             Multifamily  Note dated  November 30, 2001, by and between
                  National  Property   Investors  7,  a  California  Limited
                  Partnership and GMAC Commercial  Mortgage  Corporation,  a
                  California   corporation   relating  to  Fairway  View  II
                  Apartments  (incorporated by reference to the Registrant's
                  Annual  Report on Form 10-KSB for the year ended  December
                  31, 2002).

10.13             Multifamily  Note  dated May 16,  2003,  between  National
                  Property  Investors 7, a California  limited  partnership,
                  and GMAC  Commercial  Mortgage  Corporation,  a California
                  corporation,   related   to   Patchen   Place   Apartments
                  (incorporated by reference to the  Registrant's  Quarterly
                  Report  on Form  10-QSB  for the  quarter  ended  June 30,
                  2003).

10.14             Seventh  Reaffirmation  and Joinder  Agreement  dated June 16,
                  2003  between  AIMCO   Properties,   LP,  a  Delaware  limited
                  partnership,  National  Property  Investors  7,  a  California
                  limited partnership,  GMAC Commercial Mortgage Corporation,  a
                  California  corporation,  the  parties  who  are  the  current
                  borrowers  under the Loan  Agreement,  the parties who are the
                  Spring Hill  Guarantors  under the Loan  Agreement  and Fannie
                  Mae, a federally chartered and stockholder-owned  corporation,
                  related to Patchen Place Apartments (incorporated by reference
                  to the  Registrant's  Quarterly  Report on Form 10-QSB for the
                  quarter ended June 30, 2003).

10.15             Multifamily  Note dated June 27,  2003,  between  National
                  Property  Investors 7, a California  limited  partnership,
                  and  Stewart  Title  of  North  Carolina,  Inc.,  a  North
                  Carolina  corporation,  related to South Point  Apartments
                  (incorporated by reference to the  Registrant's  Quarterly
                  Report  on Form  10-QSB  for the  quarter  ended  June 30,
                  2003).

10.16             Eighth Reaffirmation and Joinder Agreement dated July 17, 2003
                  between AIMCO Properties,  LP, a Delaware limited partnership,
                  National   Property   Investors   7,  a   California   limited
                  partnership,   GMAC   Commercial   Mortgage   Corporation,   a
                  California  corporation,  the  parties  who  are  the  current
                  borrowers  under the Loan  Agreement,  the parties who are the
                  Spring Hill  Guarantors  under the Loan  Agreement  and Fannie
                  Mae, a federally chartered and stockholder-owned  corporation,
                  related to South Point  Apartments  (incorporated by reference
                  to the  Registrant's  Quarterly  Report on Form 10-QSB for the
                  quarter ended June 30, 2003).

10.17             Purchase and Sale  Contract  between  Registrant  and Vermeil,
                  LLC,  dated July 31, 2003  (incorporated  by  reference to the
                  Registrant's  Quarterly  Report on Form 10-QSB for the quarter
                  ended September 30, 2003).

10.18             Reinstatement  and  Amendment  of Purchase  and Sale  Contract
                  between  Registrant and Vermeil,  LLC, dated September 5, 2003
                  (incorporated  by  reference  to  the  Registrant's  Quarterly
                  Report on Form  10-QSB for the  quarter  ended  September  30,
                  2003).

10.19             Purchase and Sale Contract  between  Registrant and Watervliet
                  Shores  Associates,  dated September 11, 2003 (incorporated by
                  reference to the Registrant's Current Report on Form 8-K dated
                  December 9, 2003).

10.20             Purchase and Sale Contract  between  Registrant and The Dilweg
                  Companies,  LLC,  dated  October  20,  2003  (incorporated  by
                  reference to the Registrant's Current Report on Form 8-K dated
                  December 30, 2003).

10.21             Amendment to Purchase and Sale Contract between Registrant and
                  The  Dilweg   Companies,   LLC,   dated   October   27,   2003
                  (incorporated by reference to the Registrant's  Current Report
                  on Form 8-K dated December 30, 2003).

10.22             Reinstatement  and  Second  Amendment  to  Purchase  and  Sale
                  Contract  between  Registrant and The Dilweg  Companies,  LLC,
                  dated  November  6, 2003  (incorporated  by  reference  to the
                  Registrant's  Current  Report on Form 8-K dated  December  30,
                  2003).

10.23             Third   Amendment  to  Purchase  and  Sale  Contract   between
                  Registrant and The Dilweg  Companies,  LLC, dated December 17,
                  2003  (incorporated by reference to the  Registrant's  Current
                  Report on Form 8-K dated December 30, 2003).

10.24             Assignment  and  Assumption  of  Real  Estate  Sale  Agreement
                  between The Dilweg  Companies,  LLC and HD South  Point,  LLC,
                  dated  December  30, 2003  (incorporated  by  reference to the
                  Registrant's  Current  Report on Form 8-K dated  December  30,
                  2003).

10.25             Purchase and Sale Contract between  Registrant and Jackson
                  Square   Properties,   LLC,   dated   February   21,  2004
                  (incorporated by reference to the  Registrant's  Quarterly
                  Report on Form  10-QSB  for the  quarter  ended  March 31,
                  2004).

10.26             Amendment to Purchase and Sale Contract between Registrant and
                  Jackson   Square   Properties,   LLC  dated   March  23,  2004
                  (incorporated  by  reference  to  the  Registrant's  Quarterly
                  Report on Form 10-QSB for the quarter ended March 31, 2004).

31.1              Certification   of  equivalent  of  Chief  Executive   Officer
                  pursuant to Securities Exchange Act Rules 13a-14(a)/15d-14(a),
                  as Adopted Pursuant to Section 302 of the  Sarbanes-Oxley  Act
                  of 2002.

31.2              Certification   of  equivalent  of  Chief  Financial   Officer
                  pursuant to Securities Exchange Act Rules 13a-14(a)/15d-14(a),
                  as Adopted Pursuant to Section 302 of the  Sarbanes-Oxley  Act
                  of 2002.

32.1              Certification  Pursuant  to 18  U.S.C.  Section  1350,  as
                  Adopted Pursuant to Section 906 of the  Sarbanes-Oxley Act
                  of 2002.

<PAGE>
Exhibit 31.1


                                  CERTIFICATION


I, Martha L. Long, certify that:


1.    I have reviewed this quarterly report on Form 10-QSB of National  Property
      Investors 7;

2.    Based on my knowledge,  this report does not contain any untrue  statement
      of a material fact or omit to state a material fact  necessary to make the
      statements made, in light of the circumstances under which such statements
      were made,  not  misleading  with  respect  to the period  covered by this
      report;

3.    Based on my  knowledge,  the  financial  statements,  and other  financial
      information  included  in this  report,  fairly  present  in all  material
      respects the financial condition,  results of operations and cash flows of
      the small  business  issuer as of, and for, the periods  presented in this
      report;

4.    The  small  business  issuer's  other  certifying  officer(s)  and  I  are
      responsible  for  establishing  and  maintaining  disclosure  controls and
      procedures (as defined in Exchange Act Rules  13a-15(e) and 15d-15(e)) for
      the small business issuer and have:

      (a)   Designed such  disclosure  controls and  procedures,  or caused such
            disclosure   controls  and  procedures  to  be  designed  under  our
            supervision,  to ensure that  material  information  relating to the
            small business issuer, including its consolidated  subsidiaries,  is
            made  known to us by  others  within  those  entities,  particularly
            during the period in which this report is being prepared;

      (b)   Evaluated  the   effectiveness   of  the  small  business   issuer's
            disclosure  controls and procedures and presented in this report our
            conclusions about the  effectiveness of the disclosure  controls and
            procedures, as of the end of the period covered by this report based
            on such evaluation; and

      (c)   Disclosed in this report any change in the small  business  issuer's
            internal  control over financial  reporting that occurred during the
            small  business  issuer's  most  recent  fiscal  quarter  (the small
            business  issuer's  fourth  fiscal  quarter in the case of an annual
            report) that has  materially  affected,  or is reasonably  likely to
            materially affect, the small business issuer's internal control over
            financial reporting; and

5.    The  small  business  issuer's  other  certifying  officer(s)  and I  have
      disclosed,  based on our most recent  evaluation of internal  control over
      financial reporting, to the small business issuer's auditors and the audit
      committee of the small  business  issuer's  board of directors (or persons
      performing the equivalent functions):

      (a)   All significant  deficiencies and material  weaknesses in the design
            or operation of internal control over financial  reporting which are
            reasonably  likely to adversely  affect the small business  issuer's
            ability  to  record,   process,   summarize  and  report   financial
            information; and

      (b)   Any fraud,  whether or not  material,  that  involves  management or
            other  employees who have a significant  role in the small  business
            issuer's internal control over financial reporting.

Date:  August 13, 2004

                                    /s/Martha L. Long
                                    Martha L. Long
                                    Senior  Vice  President  of  NPI  Equity
                                    Investments,  Inc.,  equivalent  of  the
                                    chief    executive    officer   of   the
                                    Partnership


<PAGE>



Exhibit 31.2


                                  CERTIFICATION


I, Stephen B. Waters, certify that:


1.    I have reviewed this quarterly report on Form 10-QSB of National  Property
      Investors 7;

2.    Based on my knowledge,  this report does not contain any untrue  statement
      of a material fact or omit to state a material fact  necessary to make the
      statements made, in light of the circumstances under which such statements
      were made,  not  misleading  with  respect  to the period  covered by this
      report;

3.    Based on my  knowledge,  the  financial  statements,  and other  financial
      information  included  in this  report,  fairly  present  in all  material
      respects the financial condition,  results of operations and cash flows of
      the small  business  issuer as of, and for, the periods  presented in this
      report;

4.    The  small  business  issuer's  other  certifying  officer(s)  and  I  are
      responsible  for  establishing  and  maintaining  disclosure  controls and
      procedures (as defined in Exchange Act Rules  13a-15(e) and 15d-15(e)) for
      the small business issuer and have:

      (a)   Designed such  disclosure  controls and  procedures,  or caused such
            disclosure   controls  and  procedures  to  be  designed  under  our
            supervision,  to ensure that  material  information  relating to the
            small business issuer, including its consolidated  subsidiaries,  is
            made  known to us by  others  within  those  entities,  particularly
            during the period in which this report is being prepared;

      (b)   Evaluated  the   effectiveness   of  the  small  business   issuer's
            disclosure  controls and procedures and presented in this report our
            conclusions about the  effectiveness of the disclosure  controls and
            procedures, as of the end of the period covered by this report based
            on such evaluation; and

      (c)   Disclosed in this report any change in the small  business  issuer's
            internal  control over financial  reporting that occurred during the
            small  business  issuer's  most  recent  fiscal  quarter  (the small
            business  issuer's  fourth  fiscal  quarter in the case of an annual
            report) that has  materially  affected,  or is reasonably  likely to
            materially affect, the small business issuer's internal control over
            financial reporting; and

5.    The  small  business  issuer's  other  certifying  officer(s)  and I  have
      disclosed,  based on our most recent  evaluation of internal  control over
      financial reporting, to the small business issuer's auditors and the audit
      committee of the small  business  issuer's  board of directors (or persons
      performing the equivalent functions):

      (a)   All significant  deficiencies and material  weaknesses in the design
            or operation of internal control over financial  reporting which are
            reasonably  likely to adversely  affect the small business  issuer's
            ability  to  record,   process,   summarize  and  report   financial
            information; and

      (b)   Any fraud,  whether or not  material,  that  involves  management or
            other  employees who have a significant  role in the small  business
            issuer's internal control over financial reporting.

Date:  August 13, 2004

                                    /s/Stephen B. Waters
                                    Stephen B. Waters
                                    Vice    President    of    NPI    Equity
                                    Investments,  Inc.,  equivalent  of  the
                                    chief    financial    officer   of   the
                                    Partnership


<PAGE>


Exhibit 32.1


                          Certification of CEO and CFO
                       Pursuant to 18 U.S.C. Section 1350,
                           As Adopted Pursuant to
               Section 906 of the Sarbanes-Oxley Act of 2002



In  connection  with the  Quarterly  Report on Form 10-QSB of National  Property
Investors 7 (the "Partnership"), for the quarterly period ended June 30, 2004 as
filed with the  Securities  and  Exchange  Commission  on the date  hereof  (the
"Report"),  Martha L. Long, as the equivalent of the Chief Executive  Officer of
the Partnership, and Stephen B. Waters, as the equivalent of the Chief Financial
Officer of the Partnership, each hereby certifies, pursuant to 18 U.S.C. Section
1350,  as adopted  pursuant  to Section 906 of the  Sarbanes-Oxley  Act of 2002,
that, to the best of his knowledge:

      (1)   The Report fully complies with the  requirements of Section 13(a) or
            15(d) of the Securities Exchange Act of 1934; and

      (2)   The  information  contained in the Report  fairly  presents,  in all
            material respects, the financial condition and results of operations
            of the Partnership.


                                           /s/Martha L. Long
                                    Name:  Martha L. Long
                                    Date:  August 13, 2004


                                           /s/Stephen B. Waters
                                    Name:  Stephen B. Waters
                                    Date:  August 13, 2004


This  certification is furnished with this Report pursuant to Section 906 of the
Sarbanes-Oxley  Act of 2002 and shall not be deemed filed by the Partnership for
purposes of Section 18 of the Securities Exchange Act of 1934, as amended.