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 September 30, 2005


[ ]   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 ___

Indicate by check mark whether the  registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act) Yes __ No X_




<PAGE>



                         PART I - FINANCIAL INFORMATION


ITEM 1.     FINANCIAL STATEMENTS



                          NATIONAL PROPERTY INVESTORS 7

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

                               September 30, 2005

<TABLE>
<CAPTION>


Assets
<S>                                                                            <C>
   Cash and cash equivalents                                                   $ 122
   Receivables and deposits                                                       157
   Restricted escrows                                                              76
   Other assets                                                                   182
   Investment property:
       Land                                                    $ 1,094
       Buildings and related personal property                   10,558
                                                                          11,652
       Less accumulated depreciation                             (7,835)        3,817
                                                                              $ 4,354
Liabilities and Partners' Deficit
Liabilities
   Accounts payable                                                            $ 77
   Tenant security deposit liabilities                                             28
   Accrued property taxes                                                          37
   Other liabilities                                                              150
   Due to affiliates (Note B)                                                     405
   Mortgage note payable                                                        4,897

Partners' Deficit:
   General partner                                              $ (314)
   Limited partners (60,517 units
      issued and outstanding)                                      (926)       (1,240)
                                                                              $ 4,354
</TABLE>


                See Accompanying Notes to Financial Statements


<PAGE>




                          NATIONAL PROPERTY INVESTORS 7

                            STATEMENTS OF OPERATIONS
                                   (Unaudited)
                      (in thousands, except per unit data)
<TABLE>
<CAPTION>

                                                Three Months Ended      Nine Months Ended
                                                   September 30,          September 30,
                                                 2005        2004        2005       2004
Revenues:
<S>                                              <C>         <C>        <C>         <C>
  Rental income                                  $ 294       $ 302      $ 879       $ 877
  Other income                                       21          32         63          66
     Total revenues                                 315         334        942         943

Expenses:
  Operating                                         172         160        436         407
  General and administrative                         28          24         97         159
  Depreciation                                      102          93        302         281
  Interest                                           89         106        274         291
  Property taxes                                     12          12         37          36
     Total expenses                                 403         395      1,146       1,174

Loss from continuing operations                     (88)        (61)      (204)       (231)
Loss from discontinued operations (Note A)           --          --         --      (1,171)
Gain on sale of discontinued
  operations (Note C)                                --          17         --       6,645
Net (loss) income                                $ (88)      $ (44)     $ (204)    $ 5,243

Net (loss) income allocated to
  general partner (1%)                           $ (1)       $ (1)       $ (2)      $ 52
Net (loss) income allocated to
  limited partners (99%)                            (87)        (43)      (202)      5,191
                                                 $ (88)      $ (44)     $ (204)    $ 5,243
Net (loss) income per limited partnership unit:
    Loss from continuing operations             $ (1.44)    $ (0.99)   $ (3.34)    $ (3.78)
    Loss from discontinued operations                --          --         --      (19.15)
     Gain on sale of discontinued
      operations                                     --        0.28         --      108.71
                                                $ (1.44)    $ (0.71)   $ (3.34)    $ 85.78

Distributions per limited partnership unit       $ --        $ --        $ --      $113.84

</TABLE>

                See Accompanying Notes to Financial Statements


<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' deficit
   at December 31, 2004               60,517      $ (312)      $ (724)     $(1,036)

Net loss for the nine months
   ended September 30, 2005               --          (2)        (202)        (204)

Partners' deficit at
   September 30, 2005                 60,517      $ (314)      $ (926)     $(1,240)

</TABLE>

                See Accompanying Notes to Financial Statements


<PAGE>



                          NATIONAL PROPERTY INVESTORS 7

                            STATEMENTS OF CASH FLOWS
                                   (Unaudited)
                                 (in thousands)

<TABLE>
<CAPTION>

                                                                  Nine Months Ended
                                                                    September 30,
                                                                    2005      2004
Cash flows from operating activities:
<S>                                                               <C>        <C>
  Net (loss) income                                               $ (204)    $ 5,243
  Adjustments to reconcile net (loss) income to net cash
   provided by (used in) operating activities:
     Depreciation                                                    302         411
     Bad debt                                                         18          21
     Amortization of loan costs                                        7           9
     Loss on early extinguishment of debt                             --       1,119
     Gain on sale of discontinued operations                          --      (6,645)
     Change in accounts:
      Receivables and deposits                                       (93)        243
      Other assets                                                    --           7
      Accounts payable                                               (37)       (167)
      Tenant security deposit liabilities                              5         (14)
      Accrued property taxes                                          37          37
      Due to affiliates                                                9         (72)
      Other liabilities                                               17        (217)
        Net cash provided by (used in) operating activities           61         (25)

Cash flows from investing activities:
  Property improvements and replacements                            (270)       (182)
  Net receipts from restricted escrows                               106          87
  Net proceeds from sale of discontinued operations                   --       8,748
        Net cash (used in) provided by investing activities         (164)      8,653

Cash flows from financing activities:
  Repayment of mortgage note payable                                  --      (3,790)
  Advances from affiliates                                           122          --
  Repayment of advances from affiliates                              (27)         --
  Debt extinguishment cost                                            --      (1,027)
  Payments on mortgage notes payable                                (118)       (150)
  Distributions to partners                                           --      (6,958)
        Net cash used in financing activities                        (23)    (11,925)

Net decrease in cash and cash equivalents                           (126)     (3,297)
Cash and cash equivalents at beginning of period                     248       3,628

Cash and cash equivalents at end of period                        $ 122       $ 331

Supplemental disclosure of cash flow information:
  Cash paid for interest                                          $ 274       $ 371

Supplemental disclosure of non-cash activity:
  Property improvements and replacements in accounts payable       $ 70        $ --

</TABLE>

                See Accompanying Notes to Financial Statements


<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
nine month periods ended  September 30, 2005 are not  necessarily  indicative of
the results that may be expected  for the fiscal year ending  December 31, 2005.
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,  2004.  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  statements of operations  for the three and nine months ended
September 30, 2004 reflect the operations of The Pines of Roanoke  Apartments as
loss from discontinued operations due to its sale in April 2004 (see "Note C").

Certain  2004  balances  have  been   reclassified  to  conform  with  the  2005
presentation.

Note B - Transactions with Affiliated Parties

The Partnership has no employees and depends 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.

Affiliates of the Managing General Partner receive 5% of gross receipts from the
Partnership's  properties  as  compensation  for providing  property  management
services.  The  Partnership  paid to such affiliates  approximately  $45,000 and
$75,000 for the nine months  ended  September  30, 2005 and 2004,  respectively,
which is included in operating expenses and loss from discontinued operations.

Affiliates of the Managing General Partner received reimbursement of accountable
administrative  expenses amounting to approximately  $76,000 and $81,000 for the
nine months ended September 30, 2005 and 2004,  which is included in general and
administrative   expenses  and  investment   property.   The  portion  of  these
reimbursements  included  in  investment  property  for the  nine  months  ended
September 30, 2005 and 2004 are fees related to construction management services
provided  by an  affiliate  of the  Managing  General  Partner of  approximately
$31,000 and $6,000,  respectively.  The construction management service fees are
calculated  based on a percentage of additions to the  investment  property.  At
September  30,  2005,  approximately  $12,000 in  reimbursements  was due to the
Managing General Partner and is included in due to affiliates.

For services relating to the  administration of the Partnership and operation of
the Partnership's  property, 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. No such fees were earned or paid during the nine
months ended September 30, 2005 and 2004.

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 nine months ended September 30, 2005 or 2004.

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,  approximately 8.75% at September 30, 2005. 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.  The  Managing  General  Partner  advanced the
Partnership  approximately  $122,000 to pay outstanding accounts payable and for
property  improvements and replacements at Fairway View II Apartments during the
nine months ended September 30, 2005. During the nine months ended September 30,
2005,  the  Partnership  paid  approximately  $40,000 in principal  payments and
interest.  Interest  expense for the nine months  ended  September  30, 2005 was
approximately  $18,000.  There was no such interest  expense for the nine months
ended  September  30, 2004.  At September  30, 2005,  approximately  $393,000 in
principal and accrued interest was included in due to affiliates.  Subsequent to
September  30,  2005,  the Managing  General  Partner  advanced the  Partnership
approximately  $74,000 to fund property improvements and replacements at Fairway
View II Apartments.

The  Partnership  insures its  property 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,  general
liability and vehicle liability.  The Partnership insures its property above the
AIMCO  limits  through  insurance  policies  obtained  by  AIMCO  from  insurers
unaffiliated  with the Managing  General  Partner.  During the nine months ended
September  30,  2005 and 2004,  the  Partnership  was  charged  by AIMCO and its
affiliates  approximately  $21,000  and  $43,000,  respectively,  for  insurance
coverage and fees associated with policy claims administration.

Note C - Sale of Discontinued Operations

On April 30, 2004, the  Partnership  sold The Pines of Roanoke  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 $6,645,000 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  from  discontinued
operations.  In  accordance  with  SFAS  144,  the  accompanying  statements  of
operations  for the three and nine months ended  September  30, 2004 reflect the
operations of The Pines Apartments as discontinued operations.  Included in loss
from  discontinued  operations  for the nine months ended  September 30, 2004 is
approximately  $473,000,  of revenue  generated by the property.  The additional
gain of approximately $17,000 recognized during the three months ended September
30, 2004 was due to a change in the estimated costs associated with the sale.

Note D - 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  captioned Heller v.
Insignia  Financial  Group (the  "Heller  action")  was filed  against  the same
defendants  that are named in the  Nuanes  action.  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 28, 2002, the trial court granted  defendants
motion to strike the complaint. Plaintiffs took an appeal from this order.

On January 8, 2003,  the parties filed a  Stipulation  of Settlement in proposed
settlement of the Nuanes  action and the Heller  action.  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 (the "Appeal")  seeking to vacate and/or reverse the order  approving the
settlement and entering judgment  thereto.  On May 4, 2004, the Objector filed a
second appeal  challenging  the court's use of a referee and its order requiring
Objector to pay those fees.

On March 21, 2005, the Court of Appeals issued opinions in both pending appeals.
With regard to the settlement and judgment entered thereto, the Court of Appeals
vacated  the trial  court's  order and  remanded  to the trial court for further
findings  on the basis that the "state of the record is  insufficient  to permit
meaningful  appellate  review".  With regard to the second appeal,  the Court of
Appeals  reversed the order requiring the Objector to pay referee fees. On April
26, 2005,  the Court of Appeals  lifted the stay of a pending  appeal related to
the Heller action and the trial court's order striking the  complaint.  On April
28, 2005, the Objector  filed a Petition for Review with the California  Supreme
Court in connection with the opinion vacating the order approving settlement and
remanding for further findings.  On June 10, 2005, the California  Supreme Court
denied  Objector's  Petition for Review and the Court of Appeals sent the matter
back to the trial court on June 21,  2005.  The parties  intend to ask the trial
court to make further findings in connection with settlement consistent with the
Court of Appeal's  remand order.  With respect to the related Heller appeal,  on
July 28, 2005,  the Court of Appeals  reversed the trial court's order  striking
the first amended complaint.

On August 18, 2005,  Objector and his counsel filed a motion to  disqualify  the
trial court based on a peremptory challenge and filed a motion to disqualify for
cause on October 17, 2005. On or about October 13, 2005 Objector  filed a motion
to  intervene  and on or about  October  19,  2005  filed  both a motion to take
discovery  relating to the adequacy of plaintiffs as derivative  representatives
and a motion to dissolve the anti-suit injunction in connection with settlement.
On October 27, 2005, the Court denied Objector's peremptory challenge and struck
Objector's motion to disqualify for cause. No hearing has been set on Objector's
remaining motions. On November 3, 2005, Objector and his counsel filed a writ of
mandate to the Court of Appeals challenging the court's October 27, 2005 order.

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.

AIMCO  Properties  L.P.  and NHP  Management  Company,  both  affiliates  of the
Managing  General  Partner,  are  defendants  in a  lawsuit  alleging  that they
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.
The  complaint,  filed in the United States  District  Court for the District of
Columbia,  attempts  to bring 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.  and  NHP
Management Company failed to compensate  maintenance  workers for time that they
were  required  to be  "on-call".  Additionally,  the  complaint  alleges  AIMCO
Properties  L.P. and NHP  Management  Company  failed to comply with the FLSA in
compensating maintenance workers for time that they worked in excess of 40 hours
in a week. In June 2005 the Court conditionally  certified the collective action
on both the on-call and overtime issues,  which allows the plaintiffs to provide
notice of the  collective  action to all  non-exempt  maintenance  workers  from
August 7, 2000 through the present. Those employees will have the opportunity to
opt-in to the collective action,  and AIMCO Properties,  L.P. and NHP Management
Company will have the  opportunity to move to decertify the  collective  action.
Because the court denied  plaintiffs'  motion to certify  state  subclasses,  on
September  26,  2005,  the  plaintiffs  filed  a  class  action  with  the  same
allegations in the Superior Court of California (Contra Costa County).  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
consolidated  financial  condition  or results  of  operations.  Similarly,  the
Managing  General Partner does not believe that the ultimate outcome will have a
material adverse effect on the Partnership's consolidated financial condition or
results of operations.

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

Environmental

Various  Federal,  state and local laws subject  property owners or operators to
liability for management,  and the costs of removal or  remediation,  of certain
hazardous  substances  present on a property.  Such laws often impose  liability
without regard to whether the owner or operator knew of, or was responsible for,
the release or presence of the  hazardous  substances.  The  presence of, or the
failure to manage or remedy properly,  hazardous substances may adversely affect
occupancy at affected  apartment  communities and the ability to sell or finance
affected properties.  In addition to the costs associated with investigation and
remediation  actions  brought by government  agencies,  and  potential  fines or
penalties  imposed by such  agencies in  connection  therewith,  the presence of
hazardous  substances on a property could result in claims by private plaintiffs
for personal injury, disease, disability or other infirmities. Various laws also
impose  liability for the cost of removal,  remediation or disposal of hazardous
substances  through a  licensed  disposal  or  treatment  facility.  Anyone  who
arranges for the disposal or treatment of hazardous  substances  is  potentially
liable  under such laws.  These laws often impose  liability  whether or not the
person arranging for the disposal ever owned or operated the disposal  facility.
In connection with the ownership,  operation and management of its property, the
Partnership could  potentially be liable for environmental  liabilities or costs
associated with its property.

Mold

The Partnership is aware of lawsuits  against owners and managers of multifamily
properties asserting claims of personal injury and property damage caused by the
presence of mold, some of which have resulted in substantial  monetary judgments
or settlements. The Partnership has only limited insurance coverage for property
damage loss claims  arising from the  presence of mold and for  personal  injury
claims related to mold exposure. Affiliates of the Managing General Partner have
implemented a national  policy and  procedures to prevent or eliminate mold from
its properties  and the Managing  General  Partner  believes that these measures
will  minimize  the  effects  that mold could have on  residents.  To date,  the
Partnership  has not  incurred  any material  costs or  liabilities  relating to
claims of mold exposure or to abate mold  conditions.  Because the law regarding
mold is unsettled and subject to change the Managing General Partner can make no
assurance  that  liabilities  resulting from the presence of or exposure to mold
will not have a material adverse effect on the Partnership's financial condition
or results of operations.

SEC Investigation

The  Central  Regional  Office of the  United  States  Securities  and  Exchange
Commission (the "SEC")  continues its formal  investigation  relating to certain
matters.  Although  the staff of the SEC is not limited in the areas that it may
investigate,  AIMCO believes the areas of  investigation  have included  AIMCO's
miscalculated   monthly  net  rental  income  figures  in  third  quarter  2003,
forecasted  guidance,  accounts  payable,  rent  concessions,   vendor  rebates,
capitalization of payroll and certain other costs, tax credit transactions,  and
tender offers for limited  partnership  interests.  AIMCO is cooperating  fully.
AIMCO is not able to predict when the investigation will be resolved. AIMCO does
not believe that the ultimate outcome will have a material adverse effect on its
consolidated  financial  condition  or results  of  operations.  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.


<PAGE>



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
nine month periods ended September 30, 2005 and 2004:
<TABLE>
<CAPTION>

                                                   Average Occupancy
                                                    2005       2004

<S>                                                 <C>        <C>
      Fairway View II Apartments                    84%        83%
         Baton Rouge, Louisiana
</TABLE>

The  Partnership's  financial  results depend upon a number of factors including
the ability to attract and maintain tenants at the investment property, interest
rates on mortgage  loans,  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 that are outside the
control of the  Partnership  such as the local economic  climate and weather can
adversely or positively affect the Partnership's financial results.

Results of Operations

The  Partnership's  net loss for the three months ended  September  30, 2005 was
approximately  $88,000 compared to a net loss of  approximately  $44,000 for the
corresponding  period in 2004.  The  Partnership's  net loss for the nine months
ended September 30, 2005 was  approximately  $204,000  compared to net income of
approximately  $5,243,000 for the corresponding  period in 2004. The increase in
net loss for the three month period is due to a decrease in total  revenues,  an
increase in total  expenses  and a decrease in the gain on sale of  discontinued
operations.  The  decrease in net income for the nine month period is due to the
recognition of a gain on the sale of The Pines of Roanoke Apartments during 2004
partially  offset  by a  decrease  in  loss  from  discontinued  operations.  In
accordance with Statement of Financial  Accounting  Standards  ("SFAS") No. 144,
the statements of operations  for the three and nine months ended  September 30,
2004  reflect the  operations  of The Pines of Roanoke  Apartments  as loss from
discontinued operations due to its sale in April 2004.

On April 30, 2004, the  Partnership  sold The Pines of Roanoke  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 $6,645,000 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  from  discontinued
operations.  Included in loss from  discontinued  operations for the nine months
ended September 30, 2004 is approximately  $473,000, of revenue generated by the
property.  The additional gain of approximately  $17,000  recognized  during the
three  months  ended  September  30,  2004 was due to the write  off of  expense
reserves  established  at the time of the  sale,  which  were  determined  to be
unneeded.

Excluding  the  gain  on  sale  and  loss  from  discontinued  operations,   the
Partnership's  loss from  continuing  operations  for the three and nine  months
ended September 30, 2005 was  approximately  $88,000 and $204,000  respectively,
compared  to loss  from  continuing  operations  of  approximately  $61,000  and
$231,000  for the same  period in 2004.  The  increase  in loss from  continuing
operations for the three-month period is due to a decrease in total revenues and
an increase in total expenses.  The decrease in loss from continuing  operations
for the nine month period is due to a decrease in total expenses. Total revenues
remained  relatively  constant for the nine month period.  The decrease in total
revenues for the three-month period is due to a decrease in other income.  Other
income decreased due to a decrease in late charges at the investment property.

Total  expenses  increased  for the  three  month  period  due to  increases  in
operating and depreciation expenses,  partially offset by a decrease in interest
expense.  Total expenses decreased for the nine month period due to decreases in
general  and  administrative  and  interest  expenses,  partially  offset  by an
increase in operating and depreciation expenses. Operating expense increased for
the three month period due to an increase in administrative  expense,  partially
offset by a decrease in maintenance expense. Operating expense increased for the
nine  months  due  to an  increase  in  property  and  administrative  expenses,
partially  offset  by  a  decrease  in  maintenance  expense.  Property  expense
increased  for the nine month period due to increases in utilities  and referral
fees,   partially  offset  by  a  decrease  in  payroll  and  related  benefits.
Administrative  expense increased for both periods due to increases in temporary
agency help and  training and travel.  Maintenance  expense  decreased  for both
periods due to decreases in contract labor.  Depreciation  expense increased for
both periods due to property  improvements and replacements  placed into service
the past twelve months.  Interest expense  decreased for both periods due to the
payment of fees in 2004 on a  refinancing  that fell  through  on  Fairway  View
Apartments,  partially offset by an increase in interest on the advances from an
affiliate of the Managing General Partner.

General and  administrative  expense  decreased for the nine month period due to
reduced costs of services included in the management  reimbursements paid to the
Managing General Partner as allowed under the Partnership  Agreement and reduced
professional  fees  associated with managing the  Partnership.  Also included in
general  and  administrative  expenses  for the  three  and  nine  months  ended
September 30, 2005 and 2004 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  September  30,  2005,  the  Partnership  had cash and  cash  equivalents  of
approximately $122,000 compared to approximately $331,000 at September 30, 2004.
The decrease in cash and cash  equivalents  of  approximately  $126,000 from the
Partnership's year ended December 31, 2004 is due to approximately  $164,000 and
$23,000  of cash  used in  investing  and  financing  activities,  respectively,
partially  offset  by  approximately  $61,000  of  cash  provided  by  operating
activities. Cash used in investing activities consisted of property improvements
and replacements  partially  offset by net withdrawals from restricted  escrows.
Cash  used in  financing  activities  consisted  of  principal  payments  on the
mortgage  encumbering the  Partnership's  investment  property and repayments of
advances from an affiliate of the Managing  General Partner  partially offset by
advances  from an affiliate of the Managing  General  Partner.  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,  approximately 8.75% at September 30, 2005. 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.  The  Managing  General  Partner  advanced the
Partnership  approximately  $122,000 to pay outstanding accounts payable and for
property  improvements  and  replacements  at Fairway View II Apartments  during
2005.  During the nine months ended  September 30, 2005,  the  Partnership  paid
approximately  $40,000 in principal payments and interest.  Interest expense for
the nine months ended September 30, 2005 was approximately $18,000. There was no
such interest expense for the nine months ended September 30, 2004. At September
30, 2005,  approximately $393,000 in principal and accrued interest was included
in due to  affiliates.  Subsequent to September 30, 2005,  the Managing  General
Partner  advanced  the  partnership  approximately  $111,000  to  fund  property
improvements and replacements at Fairway View II Apartments.

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.  Capital  improvements  planned for the
Partnership's property are detailed below.

During the nine months ended  September  30,  2005,  the  Partnership  completed
approximately  $340,000 of capital  improvements at Fairway View II,  consisting
primarily  of  siding,  stairway  and  wood  replacements,   exterior  painting,
electrical  upgrades,  and air conditioning unit,  appliance,  gutter,  roof and
floor covering replacements.  These improvements were funded from operating cash
flow,  advances from affiliates of the Managing  General Partner and replacement
reserves.  The Partnership  regularly evaluates the capital improvement needs of
the property.  While the  Partnership  has no material  commitments for property
improvements  and  replacements,   certain  routine  capital   expenditures  are
anticipated  during 2005. Such capital  expenditures will depend on the physical
condition of the property as well as replacement  reserves and anticipated  cash
flow generated by the property.

Capital  expenditures will be incurred only if cash is available from operations
or from  Partnership  reserves.  To the extent  that  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  $4,897,000
matures  December  1,  2021 at  which  time the  loan is  scheduled  to be fully
amortized.



<PAGE>



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  property  or extend  the term of the
Partnership.

The Partnership  distributed the following  amounts during the nine months ended
September 30, 2005 and 2004 (in thousands, except per unit data):
<TABLE>
<CAPTION>

                        Nine Months       Per Limited       Nine Months       Per Limited
                           Ended          Partnership          Ended          Partnership
                     September 30, 2005       Unit       September 30, 2004      Unit

<S>           <C>           <C>               <C>              <C>              <C>
Sale proceeds (1)           $ --              $ --             $6,958           $113.84
</TABLE>

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

Future cash  distributions  will depend on the levels of net cash generated from
operations  and  the  timing  of  the  debt   maturity,   property  sale  and/or
refinancing.  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 planned capital  expenditures to
permit distributions to its partners in 2005 or subsequent periods.

Other

In addition to its indirect  ownership of the Managing  General Partner interest
in the Partnership, AIMCO and its affiliates owned 42,461.67 limited partnership
units (the "Units") in the  Partnership  representing  70.16% of the outstanding
Units at September 30, 2005. 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.  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 70.16% 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.



<PAGE>


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 the 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
asset.

Revenue Recognition

The Partnership generally leases apartment units for twelve-month terms or less.
The Partnership will offer rental concessions during particularly slow months or
in response  to heavy  competition  from other  similar  complexes  in the area.
Rental income attributable to leases, net of any concessions, is recognized on a
straight-line  basis over the term of the lease.  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.

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.



<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. (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  captioned Heller v.
Insignia  Financial  Group (the  "Heller  action")  was filed  against  the same
defendants  that are named in the  Nuanes  action.  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 28, 2002, the trial court granted  defendants
motion to strike the complaint. Plaintiffs took an appeal from this order.

On January 8, 2003,  the parties filed a  Stipulation  of Settlement in proposed
settlement of the Nuanes  action and the Heller  action.  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 (the "Appeal")  seeking to vacate and/or reverse the order  approving the
settlement and entering judgment  thereto.  On May 4, 2004, the Objector filed a
second appeal  challenging  the court's use of a referee and its order requiring
Objector to pay those fees.

On March 21, 2005, the Court of Appeals issued opinions in both pending appeals.
With regard to the settlement and judgment entered thereto, the Court of Appeals
vacated  the trial  court's  order and  remanded  to the trial court for further
findings  on the basis that the "state of the record is  insufficient  to permit
meaningful  appellate  review".  With regard to the second appeal,  the Court of
Appeals  reversed the order requiring the Objector to pay referee fees. On April
26, 2005,  the Court of Appeals  lifted the stay of a pending  appeal related to
the Heller action and the trial court's order striking the  complaint.  On April
28, 2005, the Objector  filed a Petition for Review with the California  Supreme
Court in connection with the opinion vacating the order approving settlement and
remanding for further findings.  On June 10, 2005, the California  Supreme Court
denied  Objector's  Petition for Review and the Court of Appeals sent the matter
back to the trial court on June 21,  2005.  The parties  intend to ask the trial
court to make further findings in connection with settlement consistent with the
Court of Appeal's  remand order.  With respect to the related Heller appeal,  on
July 28, 2005,  the Court of Appeals  reversed the trial court's order  striking
the first amended complaint.

On August 18, 2005,  Objector and his counsel filed a motion to  disqualify  the
trial court based on a peremptory challenge and filed a motion to disqualify for
cause on October 17, 2005. On or about October 13, 2005 Objector  filed a motion
to  intervene  and on or about  October  19,  2005  filed  both a motion to take
discovery  relating to the adequacy of plaintiffs as derivative  representatives
and a motion to dissolve the anti-suit injunction in connection with settlement.
On October 27, 2005, the Court denied Objector's peremptory challenge and struck
Objector's motion to disqualify for cause. No hearing has been set on Objector's
remaining motions. On November 3, 2005, Objector and his counsel filed a writ of
mandate to the Court of Appeals challenging the court's October 27, 2005 order.

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.

AIMCO  Properties  L.P.  and NHP  Management  Company,  both  affiliates  of the
Managing  General  Partner,  are  defendants  in a  lawsuit  alleging  that they
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.
The  complaint,  filed in the United States  District  Court for the District of
Columbia,  attempts  to bring 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.  and  NHP
Management Company failed to compensate  maintenance  workers for time that they
were  required  to be  "on-call".  Additionally,  the  complaint  alleges  AIMCO
Properties  L.P. and NHP  Management  Company  failed to comply with the FLSA in
compensating maintenance workers for time that they worked in excess of 40 hours
in a week. In June 2005 the Court conditionally  certified the collective action
on both the on-call and overtime issues,  which allows the plaintiffs to provide
notice of the  collective  action to all  non-exempt  maintenance  workers  from
August 7, 2000 through the present. Those employees will have the opportunity to
opt-in to the collective action,  and AIMCO Properties,  L.P. and NHP Management
Company will have the  opportunity to move to decertify the  collective  action.
Because the court denied  plaintiffs'  motion to certify  state  subclasses,  on
September  26,  2005,  the  plaintiffs  filed  a  class  action  with  the  same
allegations in the Superior Court of California (Contra Costa County).  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
consolidated  financial  condition  or results  of  operations.  Similarly,  the
Managing  General Partner does not believe that the ultimate outcome will have a
material adverse effect on the Partnership's consolidated financial condition or
results of operations.

ITEM 5.     OTHER INFORMATION

            None.

ITEM 6.     EXHIBITS

            See Exhibit Index.



<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: November 14, 2005



<PAGE>


                          NATIONAL PROPERTY INVESTORS 7
                                  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. (2)

                  (b) Amendments to the Agreement of Limited Partnership. (3)

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

                  (d) Amendments to the Agreements of Limited Partnership. (5)

(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.

(2)               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).

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

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

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

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).

10.25             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  of  the  equivalent  of the  Chief  Executive
                  Officer and Chief  Financial  Officer  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:  November 14, 2005

                                    /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:  November 14, 2005

                                    /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 September 30,
2005 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:  November 14, 2005


                                           /s/Stephen B. Waters
                                    Name:  Stephen B. Waters
                                    Date:  November 14, 2005


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.