FORM 10-QSB--QUARTERLY OR TRANSITIONAL REPORT UNDER SECTION 13 OR 15(D)
                     OF THE SECURITIES EXCHANGE ACT OF 1934
                        QUARTERLY OR TRANSITIONAL REPORT


                    U. S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                  FORM 10-QSB
(Mark One)
[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
     ACT OF 1934


                  For the quarterly period ended June 30, 1999

                                       or

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


                   For the transition period from          to

                         Commission file number 0-14369


                   SHELTER PROPERTIES VII LIMITED PARTNERSHIP
       (Exact name of small business issuer as specified in its charter)

         South Carolina                                         57-0784852
(State or other jurisdiction of                              (I.R.S. Employer
 incorporation or organization)                             Identification No.)

                        55 Beattie Place, P.O. 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
                         PART I - FINANCIAL INFORMATION

ITEM 1.   FINANCIAL STATEMENTS

a)
                   SHELTER PROPERTIES VII LIMITED PARTNERSHIP

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

                                 June 30, 1999



Assets

  Cash and cash equivalents                                  $ 1,045

  Receivables and deposits                                       183

  Restricted escrows                                              93

  Other assets                                                   117

  Investment properties:

    Land                                       $ 1,774

    Buildings and related personal property     20,360

                                                22,134

    Less accumulated depreciation              (11,177)
                                                              10,957

                                                             $12,395
Liabilities and Partners' Capital (Deficit)

Liabilities

  Accounts payable                                           $    19

  Tenant security deposit liabilities                             81

  Accrued property taxes                                         117

  Other liabilities                                              117

  Mortgage notes payable                                      10,831

Partners' Capital (Deficit)

  General partners                             $  (134)

  Limited partners (17,343 units

    issued and outstanding)                      1,364         1,230

                                                             $12,395


          See Accompanying Notes to Consolidated Financial Statements

b)
                   SHELTER PROPERTIES VII LIMITED PARTNERSHIP

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

                               Three Months Ended      Six Months Ended
                                    June 30,               June 30,

                                 1999        1998       1999       1998

Revenues:

  Rental income                 $  964    $  936      $1,897     $1,863

  Other income                      50        50          94        100

     Total revenues              1,014       986       1,991      1,963

Expenses:

  Operating                        316       360         638        674

  General and administrative        60        42         103         78

  Depreciation                     204       208         415        415

  Interest                         219       223         443        447

  Property taxes                    10        63          61        125

     Total expenses                809       896       1,660      1,739

  Net income                    $  205    $   90      $  331     $  224

Net income allocated

  to general partners (1%)      $    2    $    1      $    3     $    2

Net income allocated

  to limited partners (99%)        203        89         328        222

                                $  205    $   90      $  331     $  224

Net income per limited

  partnership unit              $11.70    $ 5.13      $18.91     $12.80

Distributions per limited

  partnership unit              $   --    $   --      $34.25     $   --


          See Accompanying Notes to Consolidated Financial Statements

c)
                   SHELTER PROPERTIES VII LIMITED PARTNERSHIP

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



                                 Limited

                               Partnership  General    Limited

                                  Units     Partners   Partners    Total


Original capital contributions   17,343     $     2    $17,343    $17,345


Partners' capital (deficit)

  at December 31, 1998           17,343     $  (131)   $ 1,630    $ 1,499


Distributions paid to partners       --          (6)      (594)      (600)


Net income for the six months

  ended June 30, 1999                --           3        328        331


Partners' capital (deficit)

  at June 30, 1999               17,343     $  (134)   $ 1,364    $ 1,230


          See Accompanying Notes to Consolidated Financial Statements
d)
                   SHELTER PROPERTIES VII LIMITED PARTNERSHIP

                     CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (in thousands)
                                  (Unaudited)



                                                        Six Months Ended

                                                            June 30,

                                                         1999        1998

Cash flows from operating activities:

  Net income                                          $  331        $  224

  Adjustments to reconcile net income to net

   cash provided by operating activities:

Depreciation                                             415           415

Amortization of discounts and loan costs                  25            22

Change in accounts:

      Receivables and deposits                            78           144

      Other assets                                        (2)            7

      Accounts payable                                    (8)           33

      Tenant security deposit liabilities                  4            (2)

      Accrued property taxes                            (124)          (59)

      Other liabilities                                    2             7

Net cash provided by operating activities                721           791

Cash flows from investing activities:

  Property improvements and replacements                (173)         (275)

  Net deposits to restricted escrows                      (2)           (2)

Net cash used in investing activities                   (175)         (277)

Cash flows from financing activities:

  Payments on mortgage notes payable                    (102)          (95)

  Distributions to partners                             (600)           --

         Net cash used in financing activities          (702)          (95)

Net (decrease) increase in cash and cash equivalents    (156)          419

Cash and cash equivalents at beginning of period       1,201           612

Cash and cash equivalents at end of period            $1,045        $1,031

Supplemental disclosure of cash flow information:

  Cash paid for interest                              $  418        $  425


          See Accompanying Notes to Consolidated Financial Statements
e)
                   SHELTER PROPERTIES VII LIMITED PARTNERSHIP

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  (Unaudited)

NOTE A - BASIS OF PRESENTATION

The accompanying unaudited consolidated financial statements of Shelter
Properties VII Limited Partnership (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 Article
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 Shelter Realty VII
Corporation (the "Corporate 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, 1999, are not necessarily indicative of the results that may be expected for
the fiscal year ending December 31, 1999.  For further information, refer to the
consolidated financial statements and footnotes thereto included in the
Partnership's annual report on Form 10-KSB for the year ended December 31, 1998.

Principles of Consolidation

The Registrant's financial statements include the accounts of the Registrant and
its 99.99% owned partnership.  The general partner of the consolidated
partnership is Shelter Realty VII Corporation.  Shelter Realty VII Corporation
may be removed by the Registrant; therefore, the consolidated partnership is
controlled and consolidated by the Registrant.  All significant interpartnership
transactions have been eliminated.

NOTE B - TRANSFER OF CONTROL

Pursuant to a series of transactions which closed on October 1, 1998 and
February 26, 1999, Insignia Financial Group, Inc. and Insignia Properties Trust
merged into Apartment Investment and Management Company, ("AIMCO") a publicly
traded real estate investment trust, with AIMCO being the surviving corporation
(the "Insignia Merger").  As a result, AIMCO ultimately acquired 100% ownership
of the Corporate General Partner. The Corporate General Partner does not believe
that this transaction will have a material effect on the affairs and operations
of the Partnership.

NOTE C - RECONCILIATION OF CASH FLOWS

The following is a reconciliation of the subtotal on the accompanying
consolidated statements of cash flows captioned "net cash provided by operating
activities" to "net cash used in operations," as defined in the Partnership
Agreement.  However, "net cash used in operations" should not be considered an
alternative to net income as an indicator of the Partnership's operating
performance or to cash flows as a measure of liquidity.


                                                        Six Months Ended

                                                            June 30,

                                                        1999          1998

                                                         (in thousands)


Net cash provided by operating activities                  $ 721   $ 791

  Payments on mortgage notes payable                       (102)     (95)

  Property improvements and replacements                   (173)    (275)

  Change in restricted escrows, net                          (2)      (2)

  Changes in reserves for net operating

   liabilities                                               50     (130)

  Additional reserves                                       (94)    (289)

      Net cash used in operations                         $ 400    $  --

The Corporate General Partner reserved an additional $94,000 and $289,000 at
June 30, 1999 and 1998, respectively, to fund capital improvements and repairs
at the Partnership's two investment properties.

NOTE D - TRANSACTIONS WITH AFFILIATED PARTIES

The Partnership has no employees and is dependent on the Corporate General
Partner and its affiliates for the management and administration of all
partnership activities.  The Partnership Agreement provides for certain payments
to affiliates for services and as reimbursement of certain expenses incurred by
affiliates on behalf of the Partnership. The following payments were paid or
accrued to the Corporate General Partner and its affiliates during the six
months ended June 30, 1999 and 1998:

                                                         1999        1998

                                                          (in thousands)

Property management fees (included in operating

 expenses)                                             $100         $ 97

Reimbursements for services of affiliates

 (included in general and administrative

  and operating expenses) (1)                           36            47


(1)  Included in "Reimbursements for services of affiliates" is approximately
     $3,000 in construction oversight costs for the six months ended June 30,
     1998.  There were no such costs incurred for the six months ended June 30,
     1999.

During the six months ended June 30, 1999 and 1998, affiliates of the Corporate
General Partner were entitled to receive 5% of gross receipts from both of the
Registrant's properties for providing property management services.  The
Registrant paid to such affiliates approximately $100,000 and $97,000 for the
six months ended June 30, 1999 and 1998, respectively.

An affiliate of the Corporate General Partner received reimbursement of
accountable administrative expenses amounting to approximately $36,000 and
$47,000 for the six months ended June 30, 1999 and 1998, respectively.

During December 1997, an affiliate of the Corporate General Partner (the
"Purchaser") commenced a tender offer for limited partnership interests in the
Partnership.  The Purchaser offered to purchase up to 7,000 of the outstanding
units of limited partnership interest in the Partnership at $350 per Unit, net
to the seller in cash. During February 1998, the tender offer was completed and
the Purchaser tendered 2,180 units of limited partnership interest at $350 per
Unit in the Partnership or approximately 12.57% of the total outstanding units.

On July 21, 1998, the Purchaser commenced an additional tender offer for limited
partnership interests in the Partnership.  The Purchaser offered to purchase up
to 6,000 of the outstanding units of limited partnership interest in the
Partnership, at $450 per Unit, net to the seller in cash.  During August 1998,
the tender offers were completed and the Purchaser tendered 1,450 units of
limited partnership interest at $450 per Unit in the Partnership or
approximately 8.37% of the total outstanding units.

On May 19, 1999, AIMCO Properties, L.P., an affiliate of the Managing General
Partner commenced a tender offer to purchase up to 5,968.89 (34.42%) of the
total outstanding units) units of limited partnership interest in the
Partnership for a purchase price of $469 per unit.  The offer expired on July
30, 1999.  Pursuant to the offer, AIMCO Properties, L.P. acquired 520.00 units.
As a result, AIMCO and its affiliates currently own 4,640 units of limited
partnership interest in the Partnership representing 26.75% of the total
outstanding units.  It is possible that AIMCO or its affiliate will make one or
more additional offers to acquire additional limited partnership interests in
the Partnership for cash or in exchange for units in the operating partnership
of AIMCO.

NOTE E - SEGMENT REPORTING

Description of the types of products and services from which the reportable
segment derives its revenues:

The Partnership has one reportable segment: residential properties.  The
Partnership's residential property segment consists of two apartment complexes,
located in Tennessee and Colorado.  The Partnership rents apartment units to
tenants for terms that are typically twelve months or less.

Measurement of segment profit or loss:

The Partnership evaluates performance based on net income.  The accounting
policies of the reportable segment are the same as those of the Partnership as
described in the Partnership's annual report on Form 10-KSB for the year ended
December 31, 1998.

Factors management used to identify the enterprise's reportable segment:

The Partnership's reportable segment consists of investment properties that
offer similar products and services.  Although each of the investment properties
is managed separately, they have been aggregated into one segment as they
provide services with similar types of products and customers.

Segment information for the six months ended June 30, 1999 and 1998 is shown in
the tables below.  The "Other" column includes partnership administration
related items and income and expense not allocated to the reportable segment.

                   1999                    Residential     Other        Totals
Rental income                              $ 1,897      $   --       $ 1,897
Other income                                    89           5            94
Interest expense                               443          --           443
Depreciation                                   415          --           415
General and administrative expense              --         103           103
Segment profit (loss)                          429         (98)          331
Total assets                                12,187         208        12,395
Capital expenditures for investment
  properties                                   173          --           173

                   1998
Rental income                              $ 1,863      $   --       $ 1,863
Other income                                    89          11           100
Interest expense                               447          --           447
Depreciation                                   415          --           415
General and administrative expense              --          78            78
Segment profit (loss)                          291         (67)          224
Total assets                                12,349         505        12,854
Capital expenditures for investment
  properties                                   275          --           275

NOTE F - 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. in the Superior Court of the State of California
for the County of San Mateo.  The plaintiffs named as defendants, among others,
the Partnership, the Corporate General Partner and several of their affiliated
partnerships and corporate entities. The complaint 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 the acquisition by Insignia Financial Group, Inc.
("Insignia") and entities which were, at one time, affiliates of Insignia
("Insignia Affiliates") of interests in certain general partner entities, past
tender offers by Insignia Affiliates to acquire limited partnership units, the
management of partnerships by Insignia Affiliates as well as a recently
announced agreement between Insignia and Apartment Investment and Management
Company ("AIMCO").  The complaint seeks monetary damages and equitable relief,
including judicial dissolution of the Partnership.  On June 25, 1998, the
Corporate General Partner filed a motion seeking dismissal of the action. In
lieu of responding to the motion, the plaintiffs have filed an amended
complaint.  The Corporate General Partner has filed demurrers to the amended
complaint which were heard during February 1999.  No ruling on such demurrers
has been received.  The Corporate General Partner does not anticipate that costs
associated with this case, if any, 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.

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 two apartment complexes.  The
following table sets forth the average occupancy of the properties for the six
months ended June 30, 1999 and 1998:


                                               Average Occupancy

Property                                         1999      1998

Hickory Ridge Apartments

 Memphis, Tennessee                               95%       95%

Governor's Park Apartments

 Ft. Collins, Colorado                            95%       96%

Results of Operations

The Registrant's net income for the three and six months ended June 30, 1999 was
approximately $205,000 and $331,000, respectively as compared to approximately
$90,000 and $224,000 for the three and six months ended June 30, 1998.  The
increase in net income is due to an increase in total revenue and a decrease in
total expenses.  Total revenue increased due to an increase in rental income.
Rental income increased primarily due to an increase in the average annual
rental rates at both of the Partnership's properties.  The increase in rental
income was partially offset for the six months ended June 30, 1999 due to a
slight decrease in other income.  Other income remained constant for the three
months ended June 30, 1999.

Total expenses decreased primarily due to reductions in property tax and
operating expense.  The decrease in property tax was primarily due to an
adjustment due to an overaccrual of property taxes during 1998 at Hickory Ridge
Apartments.  The decrease in operating expense is primarily due to a decrease in
insurance expense at both of the Partnership's properties due to a change in the
hazard insurance policy carrier. The decrease in operating expense was partially
offset by an increase in advertising costs incurred in an effort to increase
occupancy at Governor's Park Apartments.

The decrease in total expenses was partially offset by an increase in general
and administrative expense.  General and administrative expense increased as a
result of an increase in legal costs, which include the Partnership's portion of
settlement costs paid in March 1999 as disclosed in the Partnership's annual
report on Form 10-KSB for the year ended December 31, 1998.  Included in general
and administrative expense at both June 30, 1999 and 1998 are management
reimbursements to the Corporate General Partner allowed under the Partnership
Agreement. In addition costs associated with the quarterly and annual
communications with investors and regulatory agencies and the annual audit and
appraisals required by the Partnership Agreement are also included.

As part of the ongoing business plan of the Partnership, the Corporate 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 Corporate 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, 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 Corporate General Partner will be able to sustain
such a plan.

Liquidity and Capital Resources

At June 30, 1999, the Registrant had cash and cash equivalents of approximately
$1,045,000 compared to approximately $1,031,000 at June 30, 1998.  The decrease
in cash and cash equivalents of approximately $156,000 for the six months ended
June 30, 1999, from the Partnership's calendar year end is due to approximately
$702,000 of cash used in financing activities and approximately $175,000 of cash
used in investing activities which was partially offset by approximately
$721,000 of cash provided by operating activities.  Cash used in financing
activities consisted primarily of partner distributions and to a lesser extent
principal payments made on the mortgages encumbering the Registrant's
properties.  Cash used in investing activities consisted primarily of property
improvements and replacements and, to a lesser extent, deposits to escrow
accounts maintained by the mortgage lender.  The Registrant invests its working
capital reserves in a money market account.

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 both of the 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 planned for both of the Registrant's properties are detailed below.

Hickory Ridge

Based on a report received from an independent third party consultant analyzing
necessary exterior improvements and estimates made by the Corporate General
Partner on interior improvements, it is estimated that the property requires
approximately $328,000 of capital improvements over the next few years.  The
Partnership has budgeted, but is not limited to, capital improvements of
approximately $392,000 for 1999 at this property which includes certain of the
required improvements and consist of roof replacements, landscaping and
irrigation, drainage and pool repairs. During the six months ended June 30,
1999, the Partnership completed approximately $137,000 of capital improvements
at the property, consisting primarily of floor covering and appliance
replacements and landscaping enhancements to the property.

Governor's Park

Based on a report received from an independent third party consultant analyzing
necessary exterior improvements and estimates made by the Corporate General
Partner on interior improvements, it is estimated that the property requires
approximately $84,000 of capital improvements over the next few years.  The
Partnership has budgeted, but is not limited to, capital improvements of
approximately $116,000 for 1999 at this property which includes certain of the
required improvements and consist of stairwells, and parking lot repairs. During
the six months ended June 30, 1999, the Partnership completed approximately
$36,000 of capital improvements at the property, consisting primarily of
appliance and floor covering replacements.

The additional capital improvements planned for 1999 at the Partnership's
properties will be made only to the extent of cash available from operations or
from Partnership reserves.  To the extent that such budgeted capital
improvements are completed, the Registrant'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 $10,831,000, net of discount, is amortized over
varying periods with balloon payments due at maturity, March 1, 2001 and October
15, 2003. The Corporate General Partner will attempt to refinance such
indebtedness and/or sell the properties prior to such maturity date.  If the
properties cannot be refinanced or sold for a sufficient amount, the Registrant
may risk losing such properties through foreclosure.

In January 1999, the Partnership distributed approximately $594,000
(approximately $34.25 per limited partnership unit) to the limited partners and
$6,000 to the general partners.  Subsequent to the six months ended June 30,
1999, the Corporate General Partner approved a $400,000 distribution
(approximately $396,000 to the limited partners, $22.83 per limited partnership
unit).  No distributions were made during the corresponding period of 1998.
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. There can be no assurance,
however, that the Registrant will generate sufficient funds from operations
after required capital expenditures to permit further distributions to its
partners in subsequent periods. Distributions may also be restricted by the
requirement to deposit net operating income (as defined in the mortgage note)
into the reserve account until the reserve account is funded by an amount equal
to $400 per apartment unit at Governor's Park. The reserve account is currently
fully funded.

Tender Offer

On May 19, 1999, AIMCO Properties, L.P., an affiliate of the Managing General
Partner commenced a tender offer to purchase up to 5,968.89 (34.42%) of the
total outstanding units) units of limited partnership interest in the
Partnership for a purchase price of $469 per unit.  The offer expired on July
30, 1999.  Pursuant to the offer, AIMCO Properties, L.P. acquired 520.00 units.
As a result, AIMCO and its affiliates currently own 4,640 units of limited
partnership interest in the Partnership representing 26.75% of the total
outstanding units.  It is possible that AIMCO or its affiliate will make one or
more additional offers to acquire additional limited partnership interests in
the Partnership for cash or in exchange for units in the operating partnership
of AIMCO.

Year 2000 Compliance

General Description of the Year 2000 Issue and the Nature and Effects of the
Year 2000 on Information Technology (IT) and Non-IT Systems

The Year 2000 issue is the result of computer programs being written using two
digits rather than four digits to define the applicable year.  The Partnership
is dependent upon the Corporate General Partner and its affiliates for
management and administrative services ("Managing Agent").  Any of the computer
programs or hardware that have date-sensitive software or embedded chips may
recognize a date using "00" as the year 1900 rather than the year 2000.  This
could result in a system failure or miscalculations causing disruptions of
operations, including, among other things, a temporary inability to process
transactions, send invoices, or engage in similar normal business activities.

Over the past two years, the Managing Agent has determined that it will be
required to modify or replace significant portions of its software and certain
hardware so that those systems will properly utilize dates beyond December 31,
1999.  The Managing Agent presently believes that with modifications or
replacements of existing software and certain hardware, the Year 2000 issue can
be mitigated. However, if such modifications and replacements are not made, or
not completed in time, the Year 2000 issue could have a material impact on the
operations of the Partnership.

The Managing Agent's plan to resolve Year 2000 issues involves four phases:
assessment, remediation, testing, and implementation.  To date, the Managing
Agent has fully completed its assessment of all the information systems that
could be significantly affected by the Year 2000, and has begun the remediation,
testing and implementation phases on both hardware and software systems.
Assessments are continuing in regards to embedded systems.  The status of each
is detailed below.

Status of Progress in Becoming Year 2000 Compliant, Including Timetable for
Completion of Each Remaining Phase

Computer Hardware:

During 1997 and 1998, the Managing Agent identified all of the computer systems
at risk and formulated a plan to repair or replace each of the affected systems.
In August 1998, the main computer system used by the Managing Agent became fully
functional. In addition to the main computer system, PC-based network servers,
routers and desktop PCs were analyzed for compliance.  The Managing Agent has
begun to replace each of the non-compliant network connections and desktop PCs
and, as of June 30, 1999, had completed approximately 90% of this effort.

The total cost to the Managing Agent to replace the PC-based network servers,
routers and desktop PCs is expected to be approximately $1.5 million of which
$1.3 million has been incurred to date.  The remaining network connections and
desktop PCs are expected to be upgraded to Year 2000 compliant systems by
September 30, 1999.  The completion of this process is scheduled to coincide
with the release of a compliant version of the Managing Agent's operating
system.

Computer Software:

The Managing Agent utilizes a combination of off-the-shelf, commercially
available software programs as well as custom-written programs that are designed
to fit specific needs.  Both of these types of programs were studied, and
implementation plans written and executed with the intent of repairing or
replacing any non-compliant software programs.

In April, 1999 the Managing Agent embarked on a data center consolidation
project that unifies its core financial systems under its Year 2000 compliant
system.  The estimated completion date for this project is October, 1999.

During 1998, the Managing Agent began converting the existing property
management and rent collection systems to its management properties Year 2000
compliant systems. The estimated additional costs to convert such systems at all
properties, is $200,000, and the implementation and testing process was
completed in June, 1999.

The final software area is the office software and server operating systems.
The Managing Agent has upgraded all non-compliant office software systems on
each PC and has upgraded 90% of the server operating systems.  The remaining
server operating systems are planned to be upgraded to be Year 2000 compliant by
September, 1999.  The completion of this process is scheduled to coincide with
the release of a compliant version of the Managing Agent's operating system.

Operating Equipment:

The Managing Agent has operating equipment, primarily at the property sites,
which needed to be evaluated for Year 2000 compliance.  In September 1997, the
Managing Agent began taking a census and inventory of embedded systems
(including those devices that use time to control systems and machines at
specific properties, for example elevators, heating, ventilating, and air
conditioning systems, security and alarm systems, etc.).

The Managing Agent has chosen to focus its attention mainly upon security
systems, elevators, heating, ventilating and air conditioning systems, telephone
systems and switches, and sprinkler systems.  While this area is the most
difficult to fully research adequately, management has not yet found any major
non-compliance issues that put the Managing Agent at risk financially or
operationally.

A pre-assessment of the properties by the Managing Agent has indicated no Year
2000 issues.  A complete, formal assessment of all the properties by the
Managing Agent is in process and will be completed in September, 1999.  Any
operating equipment that is found non-compliant will be repaired or replaced.

The total cost incurred for all properties managed by the Managing Agent as of
June 30, 1999 to replace or repair the operating equipment was approximately
$75,000. The Managing Agent estimates the cost to replace or repair any
remaining operating equipment is approximately $125,000.

The Managing Agent continues to have "awareness campaigns" throughout the
organization designed to raise awareness and report any possible compliance
issues regarding operating equipment within its enterprise.

Nature and Level of Importance of Third Parties and Their Exposure to the Year
2000

The Managing Agent continues to conduct surveys of its banking and other vendor
relationships to assess risks regarding their Year 2000 readiness.  The Managing
Agent has banking relationships with three major financial institutions, all of
which have indicated their compliance efforts will be complete before July,
1999. The Managing Agent has updated data transmission standards with all of the
financial institutions.  The Managing Agent's contingency plan in this regard is
to move accounts from any institution that cannot be certified Year 2000
compliant by September 1, 1999.

The Partnership does not rely heavily on any single vendor for goods and
services, and does not have significant suppliers and subcontractors who share
information systems (external agent).  To date the Partnership is not aware of
any external agent with a Year 2000 compliance issue that would materially
impact the Partnership's results of operations, liquidity, or capital resources.
However, the Partnership has no means of ensuring that external agents will be
Year 2000 compliant.

The Managing Agent does not believe that the inability of external agents to
complete their Year 2000 remediation process in a timely manner will have a
material impact on the financial position or results of operations of the
Partnership. However, the effect of non-compliance by external agents is not
readily determinable.

Costs to Address Year 2000

The total cost of the Year 2000 project to the Managing Agent is estimated at
$3.5 million and is being funded from operating cash flows.  To date, the
Managing Agent has incurred approximately $2.9 million ($0.7 million expensed
and $2.2 million capitalized for new systems and equipment) related to all
phases of the Year 2000 project.  Of the total remaining project costs,
approximately $0.5 million is attributable to the purchase of new software and
operating equipment, which will be capitalized.  The remaining $0.2 million
relates to repair of hardware and software and will be expensed as incurred.
The Partnership's portion of these costs are not material.

Risks Associated with the Year 2000

The Managing Agent believes it has an effective program in place to resolve the
Year 2000 issue in a timely manner.  As noted above, the Managing Agent has not
yet completed all necessary phases of the Year 2000 program.  In the event that
the Managing Agent does not complete any additional phases, certain worst case
scenarios could occur.  The worst case scenarios could include elevators,
security and heating, ventilating and air conditioning systems that read
incorrect dates and operate with incorrect schedules (e.g., elevators will
operate on Monday as if it were Sunday).  Although such a change would be
annoying to residents, it is not business critical.

In addition, disruptions in the economy generally resulting from Year 2000
issues could also adversely affect the Partnership.  The Partnership could be
subject to litigation for, among other things, computer system failures,
equipment shutdowns or failure to properly date business records.  The amount of
potential liability and lost revenue cannot be reasonably estimated at this
time.

Contingency Plans Associated with the Year 2000

The Managing Agent has contingency plans for certain critical applications and
is working on such plans for others.  These contingency plans involve, among
other actions, manual workarounds and selecting new relationships for such
activities as banking relationships and elevator operating systems.

                          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. in the Superior Court of the State of California
for the County of San Mateo.  The plaintiffs named as defendants, among others,
the Partnership, the Corporate General Partner and several of their affiliated
partnerships and corporate entities. The complaint 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 the acquisition by Insignia Financial Group, Inc.
("Insignia") and entities which were, at one time, affiliates of Insignia
("Insignia Affiliates") of interests in certain general partner entities, past
tender offers by Insignia Affiliates to acquire limited partnership units, the
management of partnerships by Insignia Affiliates as well as a recently
announced agreement between Insignia and Apartment Investment and Management
Company ("AIMCO").  The complaint seeks monetary damages and equitable relief,
including judicial dissolution of the Partnership.  On June 25, 1998, the
Corporate General Partner filed a motion seeking dismissal of the action. In
lieu of responding to the motion, the plaintiffs have filed an amended
complaint.  The Corporate General Partner has filed demurrers to the amended
complaint which were heard during February 1999.  No ruling on such demurrers
has been received.  The Corporate General Partner does not anticipate that costs
associated with this case, if any, will be material to the Partnership's overall
operations.

ITEM 6.   EXHIBITS AND REPORTS ON FORM 8-K

       a) Exhibits:

          Exhibit 27, Financial Data Schedule, is filed as part of this report.

       b) Reports on Form 8-K:

          None filed during the quarter ended June 30, 1999.


                                   SIGNATURES


In accordance with Section 13 or 15(d) of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.


                              SHELTER PROPERTIES VII LIMITED PARTNERSHIP

                              By:  SHELTER REALTY VII CORPORATION
                                   Corporate General Partner


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

                              By:  /s/Carla R. Stoner
                                   Carla R. Stoner
                                   Senior Vice President
                                   Finance and Administration

                              Date: