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, 2002


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


             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)





<PAGE>



                         PART I - FINANCIAL INFORMATION


ITEM 1.     FINANCIAL STATEMENTS



                        NATIONAL PROPERTY INVESTORS 7

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

                                  June 30, 2002

<TABLE>
<CAPTION>


Assets
<S>                                                                          <C>
   Cash and cash equivalents                                                 $ 414
   Receivables and deposits                                                     355
   Restricted escrows                                                           572
   Other assets                                                                 702
   Investment properties:
       Land                                                  $ 3,738
       Buildings and related personal property                 45,455
                                                               49,193
       Less accumulated depreciation                          (32,614)       16,579
                                                                           $ 18,622
Liabilities and Partners' Deficit
Liabilities
   Accounts payable                                                          $ 129
   Tenant security deposit liabilities                                          127
   Accrued property taxes                                                       165
   Other liabilities                                                            317
   Mortgage notes payable                                                    23,840

Partners' Deficit:
   General partner                                            $ (362)
   Limited partners (60,517 units
      issued and outstanding)                                  (5,594)       (5,956)
                                                                           $ 18,622


                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,
                                      2002         2001          2002         2001
Revenues:
<S>                                 <C>           <C>          <C>           <C>
  Rental income                     $ 1,797       $ 1,822      $ 3,579       $ 3,650
  Other income                          138            95          266           180
     Total revenues                   1,935         1,917        3,845         3,830

Expenses:
  Operating                             689           674        1,424         1,451
  General and administrative            167           101          253           255
  Depreciation                          526           517        1,041         1,031
  Interest                              455           415          911           830
  Property taxes                        113           106          225           210
     Total expenses                   1,950         1,813        3,854         3,777

Net (loss) income                    $ (15)        $ 104         $ (9)        $ 53

Net (loss) income allocated to
  general partner (1%)                $ --          $ 1          $ --          $ 1
Net (loss) income allocated to
  limited partners (99%)                (15)          103           (9)           52

                                     $ (15)        $ 104         $ (9)        $ 53

Net (loss) income per limited
  partnership unit                  $ (0.25)      $ 1.70       $ (0.15)      $ 0.86

Distributions per limited
  partnership unit                  $ 20.72       $ 6.74       $ 20.72       $ 18.54

                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' deficit at
   December 31, 2001                  60,517      $ (349)     $(4,331)     $(4,680)

Distributions to partners                 --          (13)     (1,254)      (1,267)

Net loss for the six months
   Ended June 30, 2002                    --           --          (9)          (9)

Partners' deficit at
   June 30, 2002                      60,517      $ (362)     $(5,594)     $(5,956)

                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,
                                                                  2002        2001
Cash flows from operating activities:
<S>                                                               <C>         <C>
  Net (loss) income                                               $ (9)       $ 53
  Adjustments to reconcile net (loss) income to net cash
   provided by operating activities:
     Depreciation                                                 1,041        1,031
     Amortization of loan costs                                      38           50
     Change in accounts:
      Receivables and deposits                                       74         (113)
      Other assets                                                  (38)         (10)
      Accounts payable                                              (21)         (70)
      Tenant security deposit liabilities                            19            5
      Accrued property taxes                                        165          105
      Other liabilities                                              53          186
        Net cash provided by operating activities                 1,322        1,237

Cash flows from investing activities:
  Property improvements and replacements                           (312)        (209)
  Net deposits to restricted escrows                                (33)         (48)
        Net cash used in investing activities                      (345)        (257)

Cash flows from financing activities:
  Payments on mortgage notes payable                               (197)         (47)
  Loan costs paid                                                   (11)          (7)
  Distributions to partners                                      (1,267)      (1,133)
        Net cash used in financing activities                    (1,475)      (1,187)

Net decrease in cash and cash equivalents                          (498)        (207)

Cash and cash equivalents at beginning of period                    912          871

Cash and cash equivalents at end of period                       $ 414        $ 664

Supplemental disclosure of cash flow information:
  Cash paid for interest                                         $ 873        $ 780

Supplemental disclosure of non-cash activity:
  Property improvements and replacements in accounts
    payable                                                       $ 41        $ --

                See Accompanying Notes to Financial Statements

</TABLE>

<PAGE>

e)

                        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, 2002 are not  necessarily  indicative  of the
results that may be expected for the fiscal year ending  December 31, 2002.  For
further  information,  refer to the financial  statements and footnotes  thereto
included in the  Partnership's  Annual  Report on Form 10-KSB for the year ended
December 31, 2001.  The  Managing  General  Partner is an affiliate of Apartment
Investment  and  Management  Company  ("AIMCO"),  a publicly  traded real estate
investment trust.

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, 2002 and 2001,  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 Registrant  paid to such  affiliates  approximately  $188,000 and
$189,000 for the six months ended June 30, 2002 and 2001, respectively, which is
included in operating expenses.

An  affiliate  of  the  Managing  General  Partner  received   reimbursement  of
accountable  administrative  expenses  amounting to  approximately  $148,000 and
$124,000 for the six months ended June 30, 2002 and 2001, respectively, which is
included in general and  administrative  and operating  expenses and  investment
properties.  Included  in the total is  approximately  $19,000  in  construction
service  reimbursements  for the six months ended June 30,  2002.  There were no
such  reimbursements  for the six months ended June 30, 2001.  The  construction
management  service fees are  calculated  based on a percentage  of additions to
investment properties.

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  $91,000 in  reimbursements  for both the six month  periods ended
June 30,  2002 and  2001,  which  is  included  in  general  and  administrative
expenses.

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, 2002 or 2001.

The Managing General Partner has extended to the Partnership a line of credit of
up to $500,000. Loans under the line of credit will have a term of 365 days, are
unsecured  and bear  interest at the rate of 2% per annum in excess of the prime
rate announced from time to time by Chase Manhattan Bank, N.A. The maturity date
of such  borrowing  will be  accelerated in the event of: (i) the removal of the
Managing  General  Partner  (whether  or  not  For  Cause);  (ii)  the  sale  or
refinancing of a property by the  Partnership;  or (iii) the  liquidation of the
Partnership. At the present time, the Partnership has no outstanding amounts due
under this line of credit.

Beginning in 2001, the  Partnership  began insuring 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,  2002 and 2001,  the  Partnership  was  charged by AIMCO and its  affiliates
approximately $78,000 and $70,000, respectively, for insurance coverage and fees
associated with policy claims administration.

Note C - 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
purports  to  assert  claims  on  behalf  of a class  of  limited  partners  and
derivatively  on behalf  of a number  of  limited  partnerships  (including  the
Partnership)  which are named as nominal  defendants,  challenging,  among other
things,  the  acquisition  of  interests  in certain  Managing  General  Partner
entities by Insignia Financial Group, Inc. ("Insignia") and entities which 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  seek  monetary
damages and equitable relief, including judicial dissolution of the Partnership.
On June 25, 1998, the Managing General Partner filed a motion seeking  dismissal
of the action.  In lieu of responding  to the motion,  the  plaintiffs  filed an
amended  complaint.  The Managing General Partner filed demurrers to the amended
complaint which were heard February 1999.

Pending the ruling on such  demurrers,  settlement  negotiations  commenced.  On
November 2, 1999,  the parties  executed and filed a Stipulation  of Settlement,
settling claims, subject to court approval, on behalf of the Partnership and all
limited partners who owned units as of November 3, 1999. Preliminary approval of
the  settlement  was obtained on November 3, 1999 from the Court,  at which time
the Court set a final  approval  hearing for  December  10,  1999.  Prior to the
December  10,  1999  hearing,  the  Court  received  various  objections  to the
settlement, including a challenge to the Court's preliminary approval based upon
the alleged lack of authority of prior lead counsel to enter the settlement.  On
December 14, 1999, the Managing  General  Partner and its affiliates  terminated
the  proposed  settlement.  In  February  2000,  counsel  for some of the  named
plaintiffs filed a motion to disqualify plaintiff's lead and liaison counsel who
negotiated  the  settlement.  On June  27,  2000,  the  Court  entered  an order
disqualifying  them  from the case and an  appeal  was  taken  from the order on
October 5, 2000. On December 4, 2000, the Court  appointed the law firm of Lieff
Cabraser  Heimann & Bernstein  LLP as new lead  counsel for  plaintiffs  and the
putative class.  Plaintiffs filed a third amended complaint on January 19, 2001.
On March 2, 2001,  the  Managing  General  Partner  and its  affiliates  filed a
demurrer to the third amended  complaint.  On May 14, 2001,  the Court heard the
demurrer to the third amended  complaint.  On July 10, 2001, the Court issued an
order  sustaining  defendants'  demurrer on certain  grounds.  On July 20, 2001,
Plaintiffs filed a motion for reconsideration of the Court's July 10, 2001 order
granting in part and denying in part defendants' demurrer. On September 7, 2001,
Plaintiffs  filed a fourth amended class and  derivative  action  complaint.  On
September 12, 2001, the Court denied Plaintiffs' motion for reconsideration.  On
October 5, 2001, the Managing General Partner and affiliated  defendants filed a
demurrer to the fourth amended complaint,  which was heard on December 11, 2001.
On February 2, 2002,  the Court served its order  granting in part the demurrer.
The  Court has  dismissed  without  leave to amend  certain  of the  plaintiffs'
claims.  On February 11, 2002,  plaintiffs  filed a motion  seeking to certify a
putative  class  comprised of all  non-affiliated  persons who own or have owned
units  in  the  partnerships.   The  Managing  General  Partner  and  affiliated
defendants  oppose the motion.  On April 29,  2002,  the Court held a hearing on
plaintiffs' motion for class  certification and took the matter under submission
after further  briefing,  as ordered by the court, was submitted by the parties.
On July 10, 2002,  the Court entered an order vacating the current trial date of
January 13, 2003 (as well as the  pre-trial  and  discovery  cut-off  dates) and
stayed the case in its entirety through November 7, 2002 so that the parties can
have an opportunity to discuss settlement.

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 first amended complaint in the Heller action is
brought as a purported  derivative  action,  and asserts  claims for among other
things  breach  of  fiduciary  duty;  unfair  competition;   conversion,  unjust
enrichment;  and judicial  dissolution.  Plaintiffs in the Nuanes action filed a
motion to  consolidate  the Heller action with the Nuanes action and stated that
the Heller action was filed in order to preserve the derivative claims that were
dismissed  without  leave to amend in the Nuanes action by the Court order dated
July 10, 2001. On October 5, 2001, the Managing  General  Partner and affiliated
defendants  moved to strike the first  amended  complaint  in its  entirety  for
violating  the Court's July 10, 2001 order  granting in part and denying in part
defendants'  demurrer in the Nuanes action, or alternatively,  to strike certain
portions of the complaint based on the statute of limitations.  Other defendants
in the action  demurred to the fourth  amended  complaint,  and,  alternatively,
moved to strike the complaint. On December 11, 2001, the court heard argument on
the motions  and took the matters  under  submission.  On February 4, 2002,  the
Court  served  notice of its order  granting  defendants'  motion to strike  the
Heller complaint as a violation of its July 10, 2001 order in the Nuanes action.
On March 27, 2002,  the plaintiffs  filed a notice  appealing the order striking
the complaint. The parties are currently in the midst of briefing that appeal.

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

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

<PAGE>

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

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

The Partnership's investment properties consist of five apartment complexes. The
following  table sets forth the average  occupancy of the properties for each of
the six month periods ended June 30, 2002 and 2001:

                                                   Average Occupancy
                                                    2002       2001

      Fairway View II Apartments                    92%        91%
         Baton Rouge, Louisiana
      The Pines Apartments                          94%        96%
         Roanoke, Virginia
      Patchen Place Apartments                      83%        90%
         Lexington, Kentucky
      Northwoods I and II Apartments                96%        93%
         Pensacola, Florida
      South Point Apartments                        92%        94%
         Durham, North Carolina

The Managing  General  Partner  attributes  the decrease in occupancy at Patchen
Place Apartments to an increase in new apartment  communities  recently built in
the area.  Management is implementing  new marketing  strategies to make Patchen
Place  more  competitive   within  its  market.  The  Managing  General  Partner
attributes  the increase in occupancy at  Northwoods I and II  Apartments to the
completion of a road expansion  project which increased new prospect  traffic as
well as the property's curb appeal.

Results of Operations

The  Registrant's  net  loss  for  the  six  months  ended  June  30,  2002  was
approximately $9,000 compared to net income of approximately $53,000 for the six
months ended June 30, 2001. The Registrant's net loss for the three months ended
June  30,  2002  was  approximately   $15,000  as  compared  to  net  income  of
approximately $104,000 for the three months ended June 30, 2001. The decrease in
net  income  for the  three and six  months  ended  June 30,  2002 was due to an
increase in total  expenses  which was partially  offset by an increase in total
revenues.

Total expenses increased for the six months ended June 30, 2002 due to increases
in depreciation,  interest and property tax expenses which were partially offset
by a decrease in operating  expenses.  Total  expenses  increased  for the three
months ended June 30, 2002 due to increases in interest,  operating, and general
and administrative  expenses.  Depreciation expense increased for the six months
ended June 30,  2002 due to property  improvements  and  replacements  completed
during the last twelve months.  Interest expense increased for the three and six
months  ended  June 30,  2002 due to the  refinancings  of  Northwoods  I and II
Apartments  in August 2001 and Fairway View II Apartments in November 2001 which
increased the average debt balance at these two properties. Property tax expense
increased  for the six  months  ended  June 30,  2002 due to the  timing  of the
receipt of the tax bills at Fairway  View II and South  Point  Apartments  which
affected  the tax  accruals  recorded  for  the  respective  periods.  Operating
expenses  decreased  for the six months  ended June 30,  2002  primarily  due to
decreased  gas  bills at The  Pines  and  Patchen  Place  Apartments,  decreased
employee  salaries  at  Patchen  Place  Apartments,  and  decreased  maintenance
expenses at Northwoods I and II and South Point Apartments. These decreases were
partially  offset by  increased  insurance  expense at all of the  Partnership's
properties.  Operating  expenses  increased  for the three months ended June 30,
2002 primarily due to increased  insurance  expenses partially offset by reduced
property  expenses.  Insurance expense increased due to an increase in insurance
premiums at all of the Partnership's properties. Property expenses decreased due
to reduced utility charges  primarily at Patchen Place and The Pines  Apartments
and reduced payroll and related benefits  primarily at Patchen Place Apartments.
General and  administrative  expenses remained  relatively  constant for the six
months ended June 30, 2002 and 2001,  respectively.  General and  administrative
expenses increased for the three months ended June 30, 2002 due to the timing of
fees paid to the Managing General Partner in connection with  distributions made
from operations.  Included in general and administrative  expenses for the three
and six months ended June 30, 2002 and 2001 are management  reimbursement to the
Managing General Partner allowed under the Partnership  Agreement.  In addition,
costs associated with the quarterly communications with investors and regulatory
agencies and the annual audit  required by the  Partnership  Agreement  are also
included.

Total revenues increased for the three and six month periods ended June 30, 2002
due to an  increase  in other  income  partially  offset by a decrease in rental
income.  Other income  increased  for the three and six month periods ended June
30, 2002  primarily  due to increased  utility  reimbursements  at The Pines and
Northwoods I and II Apartments  and increased  late charges and increased  cable
television revenue at all of the Partnership's properties.  These increases were
partially  offset by reduced interest income as a result of lower interest rates
on interest  bearing  accounts.  Rental  income  decreased for the three and six
month periods ended June 30, 2002 primarily due to decreases in occupancy at The
Pines,  Patchen Place and South Point Apartments and decreases in average rental
rates at Patchen Place and South Point Apartments partially offset by a decrease
in concessions at Fairway View II, Patchen Place and South Point  Apartments and
an increase in average rental rates at Fairway View II Apartments.

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

Liquidity and Capital Resources

At June 30, 2002, the Partnership had cash and cash equivalents of approximately
$414,000 as compared to  approximately  $664,000 at June 30, 2001. Cash and cash
equivalents  decreased by  approximately  $498,000 from the  Partnership's  year
ended  December  31,  2001  due to  approximately  $1,475,000  of  cash  used in
financing  activities  and  approximately  $345,000  of cash  used in  investing
activities,  which more than offset approximately $1,322,000 of cash provided by
operating   activities.   Cash  used  in  financing   activities   consisted  of
distributions to partners and, to a lesser extent, payments of principal made on
the  mortgages  encumbering  Fairway View II, The Pines and  Northwoods I and II
Apartments  and loan  costs  paid  for  South  Point  Apartments.  Cash  used in
investing activities consisted of property improvements and replacements and net
deposits to escrow accounts  maintained by the mortgage lender.  The Partnership
invests its working capital reserves in interest bearing accounts.

The Managing  General Partner has extended to the Partnership a $500,000 line of
credit.  The  Partnership  has no  outstanding  amounts  due under  this line of
credit. Based on present plans, the Managing General Partner does not anticipate
the need to borrow  against  the line of credit in the near  future.  Other than
cash and cash equivalents,  the line of credit is the Partnership's  only unused
source of liquidity.

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 various  properties  to  adequately  maintain  the
physical  assets and other  operating needs of the Registrant and to comply with
Federal, state and local legal and regulatory requirements. Capital improvements
for each of the Registrant's properties are detailed below.

Fairway View II

During  the  six  months  ended  June  30,  2002,  the   Partnership   completed
approximately  $32,000 of capital  improvements  at Fairway View II,  consisting
primarily of floor covering  replacements,  air conditioning unit  replacements,
and building  improvements.  These  improvements were funded from operating cash
flow.  The  Partnership  has  evaluated  the  capital  improvement  needs of the
property for the current year and, as a result budgeted  approximately  $155,000
for  capital  improvements,   consisting  primarily  of  air  conditioning  unit
replacements,  appliances,  floor covering replacements,  and window treatments.
Additional  improvements  may be  considered  and will  depend  on the  physical
condition  of the  property as well as  anticipated  cash flow  generated by the
property.

The Pines

During  the  six  months  ended  June  30,  2002,  the   Partnership   completed
approximately $53,000 of capital improvements at The Pines, consisting primarily
of floor covering replacements,  appliances, air conditioning unit replacements,
and cabinet upgrades.  These  improvements were funded from operating cash flow.
The Partnership has evaluated the capital  improvement needs of the property for
the current  year and, as a result  budgeted  approximately  $79,000 for capital
improvements,  consisting primarily of floor covering  replacements.  Additional
improvements may be considered and will depend on the physical  condition of the
property as well as anticipated cash flow generated by the property.

Patchen Place

During  the  six  months  ended  June  30,  2002,  the   Partnership   completed
approximately  $84,000 of capital  improvements  at  Patchen  Place,  consisting
primarily of floor covering  replacements,  appliances,  air  conditioning  unit
replacements,  and parking lot  upgrades.  These  improvements  were funded from
operating cash flow and replacement reserves.  The Partnership has evaluated the
capital  improvement needs of the property for the current year and, as a result
budgeted approximately  $141,000 for capital improvements,  consisting primarily
of floor covering replacements,  appliances, air conditioning unit replacements,
and plumbing upgrades. Additional improvements may be considered and will depend
on the physical  condition of the property as well as  replacement  reserves and
anticipated cash flow generated by the property.

Northwoods I and II

During  the  six  months  ended  June  30,  2002,  the   Partnership   completed
approximately  $83,000 of capital  improvements at Northwoods I & II, consisting
primarily of floor covering  replacements,  appliances,  and fitness  equipment.
These  improvements  were funded from operating cash flow. The  Partnership  has
evaluated  the capital  improvement  needs of the  property for the current year
and, as a result  budgeted  approximately  $138,000  for  capital  improvements,
consisting  primarily of air conditioning unit replacements,  fitness equipment,
floor covering replacements, swimming pool improvements,  appliances, structural
improvements,  and plumbing upgrades.  Additional improvements may be considered
and will depend on the physical condition of the property as well as anticipated
cash flow generated by the property.

South Point

During  the  six  months  ended  June  30,  2002,  the   Partnership   completed
approximately  $101,000  of  capital  improvements  at South  Point,  consisting
primarily of floor covering replacements,  appliances, water submetering and air
conditioning unit  replacements.  These  improvements were funded from operating
cash flow and  replacement  reserves.  The Partnership has evaluated the capital
improvement needs of the property for the current year and, as a result budgeted
approximately   $118,000   consisting   primarily  of  air   conditioning   unit
replacements,   appliances,  fitness  equipment,  water  submetering  and  floor
covering replacements. Additional improvements may be considered and will depend
on the physical  condition of the property as well as  replacement  reserves and
anticipated cash flow generated by the property.

The 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  Registrant's  current assets are thought to be sufficient for any near-term
needs  (exclusive  of capital  improvements)  of the  Registrant.  The  mortgage
indebtedness  of  approximately  $23,840,000  has  maturity  dates  ranging from
November 1, 2003 to December 1, 2021. The mortgage indebtedness of approximately
$16,240,000  that was refinanced  during 2000 and 2001 requires monthly payments
until the loans mature between  January 2020 and December 2021 at which time the
loans are scheduled to be fully  amortized.  The  Partnership's  other  mortgage
indebtedness of $7,600,000 requires interest only payments with balloon payments
due  November 1, 2003.  The Managing  General  Partner will attempt to refinance
such  indebtedness  and/or sell the properties  prior to such maturity dates. If
the  properties  cannot  be  refinanced  or sold for a  sufficient  amount,  the
Registrant may risk losing such properties through foreclosure.

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, 2002 and 2001 (in thousands, except per unit data):
<TABLE>
<CAPTION>

                      Six Months      Per Limited       Six Months      Per Limited
                        Ended         Partnership         Ended         Partnership
                    June 30, 2002         Unit        June 30, 2001         Unit

<S>                     <C>              <C>              <C>              <C>
Operations              $1,267           $20.72           $1,133           $18.54
</TABLE>

Future cash  distributions  will depend on the levels of net cash generated from
operations, the availability of cash reserves and the timing of debt maturities,
refinancings  and/or  property  sales.  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 2002 or subsequent periods.

Other

In addition to its  indirect  ownership of the general  partner  interest in the
Partnership,  AIMCO and its affiliates owned 42,879.67 limited partnership units
in the  Partnership  representing  70.86% of the  outstanding  units at June 30,
2002. 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 of limited  partnership  interest in the Partnership in
exchange  for  cash  or a  combination  of  cash  and  units  in  the  operating
partnership of AIMCO either through private  purchases or tender offers. In this
regard, on June 25, 2002, a tender offer by AIMCO  Properties,  L.P., to acquire
any and all of the units not owned by affiliates  of AIMCO for a purchase  price
of $114.00 per unit expired.  Pursuant to this offer, AIMCO acquired 1,242 units
during  the  quarter  ended  June 30,  2002.  Under the  Partnership  Agreement,
unitholders  holding a majority  of the units are  entitled  to take action with
respect to a variety of matters which would include voting on certain amendments
to the Partnership  Agreement and voting to remove the Managing General Partner.
As a result of its ownership of 70.86% of the outstanding  units,  AIMCO is in a
position to  influence  all voting  decisions  with  respect to the  Registrant.
Although  the Managing  General  Partner  owes  fiduciary  duties to the limited
partners of the  Partnership,  the Managing  General Partner also owed fiduciary
duties to AIMCO as its sole stockholder. As a result, the duties of the Managing
General  Partner,  as managing  general  partner,  to the  Partnerships  and its
limited  partners may come into conflict with the duties of the Managing General
Partner to AIMCO, as its sole stockholder.  However,  DeForest Ventures II L.P.,
from whom AIMCO, through its merger with Insignia, acquired 25,399 Units (41.97%
of the units), had 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  affiliates;  and  (ii) on all  other  matters
submitted by it or its affiliates,  in proportion to the votes cast by all other
unit holders.  Except for the  foregoing,  no other  limitations  are imposed on
AIMCO's or its affiliates right to vote each unit acquired.

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  properties  are  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  properties.  These  factors  include  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 an impairment in 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 will offer rental concessions during  particularly slow months or in
response  to  heavy  competition  from  other  similar  complexes  in the  area.
Concessions are charged to income as incurred.



<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
purports  to  assert  claims  on  behalf  of a class  of  limited  partners  and
derivatively  on behalf  of a number  of  limited  partnerships  (including  the
Partnership)  which are named as nominal  defendants,  challenging,  among other
things,  the  acquisition  of  interests  in certain  Managing  General  Partner
entities by Insignia Financial Group, Inc. ("Insignia") and entities which 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  seek  monetary
damages and equitable relief, including judicial dissolution of the Partnership.
On June 25, 1998, the Managing General Partner filed a motion seeking  dismissal
of the action.  In lieu of responding  to the motion,  the  plaintiffs  filed an
amended  complaint.  The Managing General Partner filed demurrers to the amended
complaint which were heard February 1999.

Pending the ruling on such  demurrers,  settlement  negotiations  commenced.  On
November 2, 1999,  the parties  executed and filed a Stipulation  of Settlement,
settling claims, subject to court approval, on behalf of the Partnership and all
limited partners who owned units as of November 3, 1999. Preliminary approval of
the  settlement  was obtained on November 3, 1999 from the Court,  at which time
the Court set a final  approval  hearing for  December  10,  1999.  Prior to the
December  10,  1999  hearing,  the  Court  received  various  objections  to the
settlement, including a challenge to the Court's preliminary approval based upon
the alleged lack of authority of prior lead counsel to enter the settlement.  On
December 14, 1999, the Managing  General  Partner and its affiliates  terminated
the  proposed  settlement.  In  February  2000,  counsel  for some of the  named
plaintiffs filed a motion to disqualify plaintiff's lead and liaison counsel who
negotiated  the  settlement.  On June  27,  2000,  the  Court  entered  an order
disqualifying  them  from the case and an  appeal  was  taken  from the order on
October 5, 2000. On December 4, 2000, the Court  appointed the law firm of Lieff
Cabraser  Heimann & Bernstein  LLP as new lead  counsel for  plaintiffs  and the
putative class.  Plaintiffs filed a third amended complaint on January 19, 2001.
On March 2, 2001,  the  Managing  General  Partner  and its  affiliates  filed a
demurrer to the third amended  complaint.  On May 14, 2001,  the Court heard the
demurrer to the third amended  complaint.  On July 10, 2001, the Court issued an
order  sustaining  defendants'  demurrer on certain  grounds.  On July 20, 2001,
Plaintiffs filed a motion for reconsideration of the Court's July 10, 2001 order
granting in part and denying in part defendants' demurrer. On September 7, 2001,
Plaintiffs  filed a fourth amended class and  derivative  action  complaint.  On
September 12, 2001, the Court denied Plaintiffs' motion for reconsideration.  On
October 5, 2001, the Managing General Partner and affiliated  defendants filed a
demurrer to the fourth amended complaint,  which was heard on December 11, 2001.
On February 2, 2002,  the Court served its order  granting in part the demurrer.
The  Court has  dismissed  without  leave to amend  certain  of the  plaintiffs'
claims.  On February 11, 2002,  plaintiffs  filed a motion  seeking to certify a
putative  class  comprised of all  non-affiliated  persons who own or have owned
units  in  the  partnerships.   The  Managing  General  Partner  and  affiliated
defendants  oppose the motion.  On April 29,  2002,  the Court held a hearing on
plaintiffs' motion for class  certification and took the matter under submission
after further  briefing,  as ordered by the court, was submitted by the parties.
On July 10, 2002,  the Court entered an order vacating the current trial date of
January 13, 2003 (as well as the  pre-trial  and  discovery  cut-off  dates) and
stayed the case in its entirety through November 7, 2002 so that the parties can
have an opportunity to discuss settlement.

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 first amended complaint in the Heller action is
brought as a purported  derivative  action,  and asserts  claims for among other
things  breach  of  fiduciary  duty;  unfair  competition;   conversion,  unjust
enrichment;  and judicial  dissolution.  Plaintiffs in the Nuanes action filed a
motion to  consolidate  the Heller action with the Nuanes action and stated that
the Heller action was filed in order to preserve the derivative claims that were
dismissed  without  leave to amend in the Nuanes action by the Court order dated
July 10, 2001. On October 5, 2001, the Managing  General  Partner and affiliated
defendants  moved to strike the first  amended  complaint  in its  entirety  for
violating  the Court's July 10, 2001 order  granting in part and denying in part
defendants'  demurrer in the Nuanes action, or alternatively,  to strike certain
portions of the complaint based on the statute of limitations.  Other defendants
in the action  demurred to the fourth  amended  complaint,  and,  alternatively,
moved to strike the complaint. On December 11, 2001, the court heard argument on
the motions  and took the matters  under  submission.  On February 4, 2002,  the
Court  served  notice of its order  granting  defendants'  motion to strike  the
Heller complaint as a violation of its July 10, 2001 order in the Nuanes action.
On March 27, 2002,  the plaintiffs  filed a notice  appealing the order striking
the complaint. The parties are currently in the midst of briefing that appeal.

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

ITEM 6.     EXHIBITS AND REPORTS ON FORM 8-K

            a)    Exhibits:

                  Exhibit   3.4(a),    Agreement   of   Limited   Partnership,
                  incorporated  by reference to Exhibit A to the Prospectus of
                  the  Partnership  dated  July  5,  1978,   included  in  the
                  Partnership's  Registration Statement on Form S-11 (Reg. No.
                  2-599991).

                  Exhibit   3.4(b),   Amendments   to   Agreement   of   Limited
                  Partnership, incorporated by reference to the Definitive Proxy
                  Statement of the Partnership, dated July 2, 1981.

                  Exhibit   3.4(c),   Amendments   to   Agreement   of   Limited
                  Partnership, incorporated by reference to the Definitive Proxy
                  Statement of the Partnership, dated April 3, 1991.

                  Exhibit  3.4(d),   Amendments  to  the  Agreement  of  Limited
                  Partnership,   incorporated  by  reference  to  the  Statement
                  Furnished in Connection  with the  Solicitation of Consents of
                  the Partnership dated August 28, 1992.

                  Exhibit 99,  Certification  of Chief  Executive  Officer and
                  Chief Financial Officer.

            b)    Reports on Form 8-K filed  during the  quarter  ended June 30,
                  2002:

                  None.



<PAGE>



                                   SIGNATURES



In accordance with the  requirements of the Exchange Act, the Registrant  caused
this  report to be  signed on its  behalf  by the  undersigned,  thereunto  duly
authorized.



                                    NATIONAL PROPERTY INVESTORS 7


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


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


                                    By:   /s/Thomas C. Novosel
                                          Thomas C. Novosel
                                          Senior Vice President
                                          and Chief Accounting Officer


                                    Date: August 14, 2002


<PAGE>


Exhibit 99


                          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, 2002 as
filed with the  Securities  and  Exchange  Commission  on the date  hereof  (the
"Report"),  Patrick J. Foye, as the equivalent of the Chief Executive Officer of
the Partnership, and Paul J. McAuliffe, 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/  Patrick J. Foye
                                    Name:  Patrick J. Foye
                                    Date:  August 14, 2002


                                    /s/  Paul J. McAuliffe
                                    Name:  Paul J. McAuliffe
                                    Date:  August 14, 2002


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