Form 10-KSB--Annual or Transitional Report Under
                               Section 13 or 15(d)
                                   Form 10-KSB
(Mark One)
[X]ANNUAL REPORT UNDER SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934
   [No Fee Required]

                    For the fiscal year ended December 31, 2000

[ ]TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
   1934
   [No Fee Required]

                  For the transition period _________to _________

                         Commission file number 0-13454

                           NATIONAL PROPERTY INVESTORS 7
                   (Name of small business issuer in its charter)

         California                                              13-3230613
(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

           Securities registered under Section 12(b) of the Exchange Act:

                                      None

           Securities registered under Section 12(g) of the Exchange Act:

                      Units of Limited Partnership Interest
                                (Title of class)

Check  whether the issuer (1) filed all reports  required to be filed by Section
13 or 15(d) of the  Exchange  Act of 1934 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___

Check if there is no disclosure of delinquent  filers in response to Item 405 of
Regulation S-B contained in this form, and no disclosure  will be contained,  to
the best of Registrant's knowledge in definitive proxy or information statements
incorporated  by reference  in Part III of this Form 10-KSB or any  amendment to
this Form 10-KSB. [X]

State issuer's revenues for its most recent fiscal year.  $7,523,000

State the aggregate  market value of the voting  partnership  interests  held by
non-affiliates  computed  by  reference  to the price at which  the  partnership
interests  were sold,  or the average bid and asked  prices of such  partnership
interests as of December 31, 2000. No market exists for the limited  partnership
interests of the Registrant,  and,  therefore,  no aggregate market value can be
determined.

                       DOCUMENTS INCORPORATED BY REFERENCE
                                      NONE

<PAGE>

                                     PART I

Item 1.     Description of Business

National  Property   Investors  7  (the  "Partnership"  or  "Registrant")  is  a
California  limited  partnership  formed in October  1983.  The  Partnership  is
engaged in the business of  operating  and holding  real estate  properties  for
investment.  NPI Equity  Investments,  Inc., a Florida  corporation,  became the
Registrant's  managing  general partner (the "Managing  General Partner" or "NPI
Equity") on December 20, 1991. The Managing  General Partner was a subsidiary of
National Property Investors, Inc. ("NPI") until December 31, 1996, at which time
Insignia  Properties Trust ("IPT") acquired the stock of NPI Equity.  On October
1, 1998, IPT merged into Apartment  Investment and Management  Company ("AIMCO")
(see "Transfer of Control" below).  The partnership  agreement provides that the
Partnership  is to terminate on December 31, 2008,  unless  terminated  prior to
such date.

From February 1984 through February 1985, the Partnership offered, pursuant to a
Registration  Statement  filed  with the  Securities  and  Exchange  Commission,
100,000  limited  partnership  units  at  $500  per  unit  for an  aggregate  of
$50,000,000 and sold 60,517 units  providing net proceeds of $30,259,000.  Since
its initial offering,  the Registrant has not received, nor are limited partners
required to make,  additional  capital  contributions.  The net proceeds of this
offering were used to purchase seven income  producing  residential  real estate
properties.  The Partnership's  original property  portfolio was  geographically
diversified  with properties  acquired in six states.  One property was sold and
another was foreclosed on in 1994.  The Registrant  continues to own and operate
the remaining five properties (see "Item 2. Description of Properties").

There have been, and it is possible there may be other, Federal, state and local
legislation  and  regulations   enacted   relating  to  the  protection  of  the
environment.  The Partnership is unable to predict the extent,  if any, to which
such new  legislation  or  regulations  might occur and the degree to which such
existing or new legislation or regulations might adversely affect the properties
owned by the Partnership.

The Partnership  monitors its properties for evidence of pollutants,  toxins and
other dangerous substances, including the presence of asbestos. In certain cases
environmental  testing has been performed which resulted in no material  adverse
conditions or liabilities. In no case has the Registrant received notice that it
is a potentially  responsible  party with respect to an  environmental  clean up
site.

Both  the  income  and  expenses  of  operating  the  properties  owned  by  the
Partnership are subject to factors outside of the Partnership's control, such as
changes in the supply and demand for similar  properties  resulting from various
market  conditions,  increases/decreases  in unemployment or population  shifts,
changes in the availability of permanent mortgage  financing,  changes in zoning
laws,  or changes in patterns or needs of users.  In  addition,  there are risks
inherent in owning and operating residential  properties because such properties
are  susceptible to the impact of economic and other  conditions  outside of the
control of the Partnership.

The  Partnership  has no full time  employees.  The Managing  General Partner is
vested with full authority as to the general  management and  supervision of the
business and affairs of the  Partnership.  The limited partners have no right to
participate  in the  management  or conduct of such  business  and  affairs.  An
affiliate  of  the  Managing  General  Partner  provides  day-to-day  management
services to the Partnership's investment properties.

The  real  estate  business  in which  the  Partnership  is  engaged  is  highly
competitive.  There are other  residential  properties within the market area of
the Registrant's  properties.  The number and quality of competitive properties,
including  those which may be managed by an affiliate  of the  Managing  General
Partner,  in such market area could have a material  effect on the rental market
for the  apartments  at the  Registrant's  properties  and the rents that may be
charged  for  such  apartments.  While  the  Managing  General  Partner  and its
affiliates  own and/or  control a significant  number of apartment  units in the
United  States,  such  units  represent  an  insignificant  percentage  of total
apartment  units in the United  States and  competition  for the  apartments  is
local.

A further description of the Partnership's business is included in "Management's
Discussion and Analysis or Plan of Operation"  included in "Item 6" of this Form
10-KSB.

Transfer of Control

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

Item 2.     Description of Properties

The following table sets forth the Partnership's investment in properties:
<TABLE>
<CAPTION>

                                   Date of
Property                           Purchase       Type of Ownership          Use

Fairway View II Apartments          11/84    Fee ownership subject to    Apartment
<S>                                                                      <C>
  Baton Rouge, Louisiana                     first mortgage              204 units

The Pines Apartments                04/85    Fee ownership subject to    Apartment
  Roanoke, Virginia                          first mortgage              216 units

Patchen Place Apartments            07/85    Fee ownership subject to    Apartment
  Lexington, Kentucky                        first mortgage              202 units

Northwoods I & II Apartments        07/85    Fee ownership subject to    Apartment
  Pensacola, Florida                         first mortgage              320 units

South Point Apartments              03/86    Fee ownership subject to    Apartment
  Durham, North Carolina                     first mortgage              180 units
</TABLE>

Schedule of Properties

Set forth below for each of the  Partnership's  properties is the gross carrying
value, accumulated depreciation,  depreciable life, method of depreciation,  and
Federal tax basis.
<TABLE>
<CAPTION>

                        Carrying     Accumulated                           Federal
Properties               Value      Depreciation      Rate     Method     Tax Basis
                            (in thousands)                              (in thousands)

<S>                     <C>           <C>          <C>                     <C>
Fairway View II         $10,729       $ 6,080      5-27.5 yrs    S/L       $ 1,914
The Pines                 8,354         5,424      5-27.5 yrs    S/L         1,571
Patchen Place             9,109         6,311      5-27.5 yrs    S/L         2,008
Northwoods I & II        10,277         6,113      5-27.5 yrs    S/L         2,140
South Point               9,527         5,646      5-27.5 yrs    S/L         2,390
        Total           $47,996       $29,574                              $10,023
</TABLE>

See  "Item  7.  Financial   Statements,   Note  A"  for  a  description  of  the
Partnership's depreciation policy.

Schedule of Properties Indebtedness

The  following  table  sets  forth  certain  information  relating  to the loans
encumbering the Registrant's properties.
<TABLE>
<CAPTION>

                         Principal                                        Principal
                        Balance At                                         Balance
                       December 31,    Interest    Period    Maturity       Due At
Property                   2000          Rate     Amortized    Date      Maturity (2)
                      (in thousands)                                    (in thousands)

<S>                       <C>           <C>          <C>     <C>   <C>     <C>
Fairway View II           $ 4,200       7.33%        (1)     11/01/03      $ 4,200
The Pines                   4,143       7.97%      20 yrs    01/01/20           --
Patchen Place               3,000       7.33%        (1)     11/01/03        3,000
Northwoods I & II           5,000       7.33%        (1)     11/01/03        5,000
South Point                 4,600       7.33%        (1)     11/01/03        4,600
        Total             $20,943                                          $16,800
</TABLE>

(1)   Loan requires payments of interest only.

(2)   See "Item 7. Financial  Statements - Note C" for information  with respect
      to the  Registrant's  ability  to prepay  these  loans and other  specific
      details about the loans.

On December 13, 1999, the  Partnership  refinanced the mortgage  encumbering The
Pines  Apartments.   The  refinancing  replaced  indebtedness  of  approximately
$3,406,000 with a new mortgage in the amount of $4,225,000. The interest rate on
the new  mortgage is 7.97% as compared to 8.56% on the  previous  debt.  The new
loan which  matures on January 1, 2020 requires  monthly  principal and interest
payments and is scheduled to be fully amortized at maturity.  Total  capitalized
loan costs were  approximately  $88,000 during the year ended December 31, 1999.
Additional loan costs of approximately  $16,000 were capitalized during the year
ended December 31, 2000.

Rental Rates and Occupancy

Average annual rental rates and occupancy for 2000 and 1999 for each property:
<TABLE>
<CAPTION>

                                     Average Annual                   Average
                                      Rental Rate                    Occupancy
                                       (per unit)
Property                          2000            1999           2000         1999

<S>                              <C>             <C>              <C>          <C>
Fairway View II                  $6,489          $6,730           93%          95%
The Pines                         7,165           6,936           97%          97%
Patchen Place                     6,918           6,811           93%          93%
Northwoods I & II                 6,357           6,279           93%          94%
South Point                       8,520           8,318           92%          92%
</TABLE>

As noted under "Item 1.  Description of Business",  the real estate  industry is
highly competitive.  All of the properties are subject to competition from other
residential  apartment  complexes  in the area.  The  Managing  General  Partner
believes that all of the properties are adequately insured.  Each property is an
apartment  complex  which leases  units for lease terms of one year or less.  No
residential  tenant leases 10% or more of the available rental space. All of the
properties are in good physical  condition,  subject to normal  depreciation and
deterioration as is typical for assets of this type and age.

Real Estate Taxes and Rates

Real estate taxes and rates in 2000 for each property were:

                                       2000            2000
                                      Billing          Rate
                                  (in thousands)

          Fairway View II              $ 52           11.68%
          The Pines                      72            1.13%
          Patchen Place                  49            0.97%
          Northwoods I & II             173            2.19%
          South Point                    97            1.62%

Capital Improvements

Fairway View II

During the year ended December 31, 2000, the Partnership completed approximately
$126,000 of capital improvements at Fairway View II, consisting primarily of air
conditioning replacement,  carpet and vinyl replacement,  clubhouse renovations,
and structural improvements.  These improvements were funded from operating cash
flow and  Partnership  reserves.  The  Partnership  is currently  evaluating the
capital  improvement  needs of the property for the upcoming  year.  The minimum
amount to be budgeted  is  expected  to be $275 per unit or $56,100.  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 Pines

During the year ended December 31, 2000, the Partnership completed approximately
$142,000 of capital  improvements at The Pines,  consisting  primarily of carpet
replacement,  swimming pool upgrades,  parking area improvements,  and cabinetry
upgrades.   These  improvements  were  funded  from  operating  cash  flow.  The
Partnership  is  currently  evaluating  the  capital  improvement  needs  of the
property for the upcoming year. The minimum amount to be budgeted is expected to
be $275 per unit or $59,400.  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.

Patchen Place

During the year ended December 31, 2000, the Partnership completed approximately
$244,000 of capital  improvements  at Patchen  Place,  consisting  primarily  of
carpet  and  vinyl   replacement,   plumbing   enhancements,   appliances,   air
conditioning replacement,  adding water meters to units in order to bill tenants
for water usage, and structural  improvements.  These  improvements  were funded
from operating cash flow and Partnership reserves.  The Partnership is currently
evaluating the capital  improvement needs of the property for the upcoming year.
The  minimum  amount to be  budgeted is expected to be $275 per unit or $55,550.
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 & II

During the year ended December 31, 2000, the Partnership completed approximately
$411,000 of capital  improvements at Northwoods I & II, consisting  primarily of
carpet  and  vinyl  replacements,  plumbing  upgrades,  exterior  painting,  air
conditioning unit  replacement,  appliances and structural  improvements.  These
improvements were funded from Partnership  reserves and operating cash flow. The
Partnership  is  currently  evaluating  the  capital  improvement  needs  of the
property for the upcoming year. The minimum amount to be budgeted is expected to
be $275 per unit or $88,000.  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.

South Point

During the year ended December 31, 2000, the Partnership completed approximately
$58,000 of capital  improvements at South Point,  consisting primarily of carpet
and vinyl replacement,  golf carts, appliances, and cabinet replacements.  These
improvements were funded from Partnership  reserves and operating cash flow. The
Partnership  is  currently  evaluating  the  capital  improvement  needs  of the
property for the upcoming year. The minimum amount to be budgeted is expected to
be $275 per unit or $49,500.  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.

Item 3.     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,  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 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 Insignia  Merger.  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
and  defendants  are  scheduled to respond to the complaint by March 2, 2001. On
March 2, 2001, the Managing  General Partner and its affiliates filed a demurrer
to the third amended complaint. The Managing General Partner does not anticipate
that  costs  associated  with this case 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 4.     Submission of Matters to a Vote of Security Holders

During the quarter ended  December 31, 2000, no matter was submitted to the vote
of the unit holders through the solicitation of proxies or otherwise.

                                     PART II

Item 5.     Market for the Partnership's Equity and Related Partner Matters

The  Partnership,  a publicly-held  limited  partnership,  offered up to 100,000
limited  partnership units and sold 60,517 limited partnership units aggregating
$30,259,000.  At December 31, 2000, the  Partnership had 1,180 holders of record
owning an aggregate of 60,517 units.  Affiliates of the Managing General Partner
owned  40,082.67  units or 66.23% at December 31, 2000. No public trading market
has developed for the Units,  and it is not anticipated  that such a market will
develop in the future.

The following table sets forth the distributions made by the Partnership for the
years ended December 31, 1999 and 2000 and subsequent to December 31, 2000:

                                                Distributions
                                                           Per Limited
                                        Aggregate        Partnership Unit
                                      (in thousands)
       01/01/99 - 12/31/99              $  300 (1)            $ 4.91
       01/01/00 - 12/31/00               3,179 (2)             52.00
      Subsequent to 12/31/00               721 (3)             11.80

(1)   Distribution  was made from  previously  undistributed  surplus funds from
      refinancing proceeds in prior years (see "Item 6" for further details).

(2)   Consists of $2,294,000 of cash from  operations  and $885,000 of cash from
      the refinance  proceeds of The Pines  Apartments (see "Item 6" for further
      details).

(3)   Distribution  was made from cash from operations (see "Item 6" for further
      details).

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 Registrant's  distribution  policy is
reviewed on a quarterly  basis.  There can be no  assurance,  however,  that the
Partnership  will generate  sufficient  funds from  operations,  after  required
capital expenditures,  to permit additional distributions to its partners in the
year 2001 or  subsequent  periods.  See "Item 2.  Description  of  Properties  -
Capital   Improvements"   for  information   relating  to  anticipated   capital
expenditures at the properties.

In addition to its  indirect  ownership of the general  partner  interest in the
Partnership,   AIMCO  and  its  affiliates   currently  own  40,082.67   limited
partnership  units in the  Partnership  representing  66.23% of the  outstanding
units.  A number of these units were acquired  pursuant to tender offers made by
affiliates of the Managing  General  Partner,  AIMCO, or its  affiliates.  It is
possible that AIMCO or its affiliates 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.  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 without
limitation, voting on certain amendments to the Partnership Agreement and voting
to remove the Managing General  Partner.  As a result of its ownership of 66.23%
of the  outstanding  units,  AIMCO is in a  position  to  influence  all  voting
decisions with respect to the Registrant. When voting on matters, AIMCO would in
all likelihood vote the Units it acquired in a manner  favorable to the interest
of the Managing  General Partner because of their  affiliation with the Managing
General Partner.  However,  DeForest Ventures II L.P., from whom AIMCO,  through
its merger with Insignia,  acquired  25,399 Units  (approximately  41.97%),  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.

Item 6.     Management's Discussion and Analysis or Plan of Operation

The  matters  discussed  in this Form  10-KSB  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-KSB  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.

This item should be read in conjunction with the financial  statements and other
items contained elsewhere in this report.

Results of Operations

The   Registrant's  net  income  for  the  year  ended  December  31,  2000  was
approximately  $119,000 compared to net income of approximately $514,000 for the
year ended  December 31, 1999 (see "Note D" of the  financial  statements  for a
reconciliation of these amounts to the Registrant's federal taxable income). The
decrease in net income for the year ended  December  31, 2000 as compared to the
comparable  period in 1999 was due to an  increase in total  expenses  which was
partially offset by an increase in total revenues and by the extraordinary  loss
on the  early  extinguishment  of the  debt  encumbering  The  Pines  Apartments
recognized during 1999 (see discussion below).

Total revenues increased for the year ended December 31, 2000 due to an increase
in other income which was partially  offset by a decrease in rental income.  The
increase in other income for the year ended  December 31, 2000 was primarily due
to an increase in interest income as a result of higher average cash balances in
interest  bearing  accounts  held by the  Partnership  during 2000 and increased
telephone  commissions  primarily at Fairway View II Apartments and Northwoods I
and II Apartments.  Rental income decreased primarily due to decreased occupancy
and average  annual rental rates at Fairway View II and  decreased  occupancy at
Northwoods I and II Apartments, as well as increased concessions at Fairway View
II, South Point,  and  Northwoods I and II  Apartments  and  increased  bad debt
expense at all of the Partnership's  properties.  These decreases were partially
offset by increased  average annual rental rates at Patchen Place,  South Point,
Northwoods I and II, and The Pines Apartments.

Total expenses increased due to increases in operating,  depreciation,  interest
and general and administrative expenses.  Operating expenses increased primarily
due to  increased  gas  bills at  Patchen  Place and The  Pines  Apartments  and
increased administrative salaries at Fairway View II, South Point, and The Pines
Apartments.  Depreciation  expense  increased due to property  improvements  and
replacements completed during the last twelve months. Interest expense increased
due to the  refinancing of The Pines  Apartments in December 1999 which replaced
the existing  debt with a loan having a greater  principal  amount.  General and
administrative  expenses  increased  primarily  due to fees paid to the Managing
General Partner in connection with the distributions from operations made during
the year ended  December 31,  2000.  For the year ended  December  31, 1999,  no
similar  fees were paid  because no  distributions  were paid during this period
from operations.  General and  administrative  expenses also increased due to an
increase in the cost of services  included in the management  reimbursements  to
the  Managing  General  Partner  as  allowed  under the  Partnership  Agreement.
Included in general and  administrative  expenses at both  December 31, 2000 and
1999, are management  reimbursements  to the Managing  General  Partner  allowed
under the Partnership Agreement.  Costs associated with the quarterly and annual
communications  with  investors  and  regulatory  agencies  and the annual audit
required by the Partnership Agreement are also included.

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  December  31,  2000,  the  Partnership  had  cash and  cash  equivalents  of
approximately  $871,000 as compared to approximately  $2,793,000 at December 31,
1999. Cash and cash equivalents  decreased by approximately  $1,922,000 from the
Partnership's  year ended December 31, 1999 due to  approximately  $3,277,000 of
cash used in financing  activities  and  approximately  $911,000 of cash used in
investing  activities,  which more than offset approximately  $2,266,000 of cash
provided by operating activities. Cash used in financing activities consisted of
partner  distributions  and, to a lesser  extent,  the payment of loan costs and
payments of principal  made on the mortgage  encumbering  The Pines  Apartments.
Cash  used in  investing  activities  consisted  of  property  improvements  and
replacements  which was partially  offset by  withdrawals  from escrow  accounts
maintained by the mortgage lender.  The Partnership  invests its working capital
reserves in money market 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.  The Partnership is
currently  evaluating  the capital  improvement  needs of the properties for the
upcoming  year.  The  minimum  amount  to be  budgeted  will be $275 per unit or
$308,550.  Additional  improvements  may be  considered  and will  depend on the
physical  condition  of the  properties  as well  as  replacement  reserves  and
anticipated  cash flow  generated  by the  properties.  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.

On December 13, 1999, the  Partnership  refinanced the mortgage  encumbering The
Pines  Apartments.   The  refinancing  replaced  indebtedness  of  approximately
$3,406,000 with a new mortgage in the amount of $4,225,000. The interest rate on
the new  mortgage is 7.97% as compared to 8.56% on the  previous  debt.  The new
loan, which matures on January 1, 2020,  requires monthly principal and interest
payments and is scheduled to be fully amortized at maturity.  Total  capitalized
loan costs were  approximately  $88,000 during the year ended December 31, 1999.
Additional loan costs of approximately  $16,000 were capitalized during the year
ended  December 31, 2000.  For financial  statement  purposes,  the  Partnership
recognized a loss on the early extinguishment of debt of approximately  $106,000
consisting of a prepayment penalty and the write-off of unamortized loan costs.

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 $4,143,000 encumbering The Pines is amortized over
20 years.  The mortgage  indebtedness  of $16,800,000  encumbering the remaining
properties is interest only with required 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.

During the year ended  December  31,  2000,  the  Partnership  declared and paid
distributions  of  approximately  $3,179,000  (approximately  $3,147,000  to the
limited  partners  or  $52.00  per  limited   partnership  unit)  consisting  of
approximately  $2,294,000  (approximately  $2,271,000 to the limited partners or
$37.53 per limited  partnership  unit) of cash from operations and approximately
$885,000  (approximately  $876,000 to the limited partners or $14.47 per limited
partnership  unit) of cash from the refinance  proceeds of The Pines  Apartments
and from refinancing  proceeds in prior years.  Subsequent to December 31, 2000,
the Partnership declared distributions of approximately $721,000  (approximately
$714,000  to the  limited  partners  or $11.80  per  limited  partnership  unit)
consisting of cash from  operations.  A distribution of  approximately  $300,000
(approximately $297,000 to the limited partners or $4.91 per limited partnership
unit) from  refinancing  proceeds  in prior years was paid during the year ended
December 31, 1999.  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 Registrant's
distribution policy is reviewed on a quarterly basis. There can be no assurance,
however,  that the Partnership  will generate  sufficient  funds from operations
after required  capital  expenditures to permit any additional  distributions to
its partners in the year 2001 or subsequent periods.

Tender Offer

In addition to its  indirect  ownership of the general  partner  interest in the
Partnership,   AIMCO  and  its  affiliates   currently  own  40,082.67   limited
partnership  units in the  Partnership  representing  66.23% of the  outstanding
units.  A number of these units were acquired  pursuant to tender offers made by
affiliates of the Managing  General  Partner,  AIMCO, or its  affiliates.  It is
possible that AIMCO or its affiliates 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.  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 without
limitation, voting on certain amendments to the Partnership Agreement and voting
to remove the Managing General  Partner.  As a result of its ownership of 66.23%
of the  outstanding  units,  AIMCO is in a  position  to  influence  all  voting
decisions with respect to the Registrant. When voting on matters, AIMCO would in
all likelihood vote the Units it acquired in a manner  favorable to the interest
of the Managing  General Partner because of their  affiliation with the Managing
General Partner.  However,  DeForest Ventures II L.P., from whom AIMCO,  through
its merger with Insignia,  acquired  25,399 Units  (approximately  41.97%),  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 units holders.  Except
for  the  foregoing,  no  other  limitations  are  imposed  on  AIMCO's  or  its
affiliates' right to vote each Unit acquired.


ITEM 7.     FINANCIAL STATEMENTS

NATIONAL PROPERTY INVESTORS 7

LIST OF FINANCIAL STATEMENTS


      Report of Ernst & Young LLP, Independent Auditors

      Balance Sheet - December 31, 2000

      Statements of Operations - Years ended December 31, 2000 and 1999

      Statements  of  Changes  in  Partners'  (Deficit)  Capital  - Years  ended
      December 31, 2000 and 1999

      Statements of Cash Flows - Years ended December 31, 2000 and 1999

      Notes to Financial Statements


                 Report of Ernst & Young LLP, Independent Auditors



The Partners
National Property Investors 7


We have audited the accompanying  balance sheet of National Property Investors 7
as of December 31, 2000, and the related  statements of  operations,  changes in
partners'  (deficit)  capital,  and cash  flows for each of the two years in the
period  ended   December  31,  2000.   These   financial   statements   are  the
responsibility of the Partnership's management. Our responsibility is to express
an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable  assurance about whether the financial  statements are free
of material misstatement. An audit includes examining, on a test basis, evidence
supporting  the amounts and  disclosures in the financial  statements.  An audit
also includes assessing the accounting principles used and significant estimates
made  by the  Partnership's  management,  as  well  as  evaluating  the  overall
financial  statement  presentation.   We  believe  that  our  audits  provide  a
reasonable basis for our opinion.

In our opinion,  the financial  statements  referred to above present fairly, in
all material  respects,  the financial position of National Property Investors 7
at December 31, 2000,  and the results of its  operations and its cash flows for
each of the two years in the period ended December 31, 2000, in conformity  with
accounting principles generally accepted in the United States.


                                                            /s/ERNST & YOUNG LLP


Greenville, South Carolina
March 2, 2001

<PAGE>




                           NATIONAL PROPERTY INVESTORS 7

                                  BALANCE SHEET
                        (in thousands, except per unit data)

                                December 31, 2000

<TABLE>
<CAPTION>


Assets
<S>                                                                          <C>
   Cash and cash equivalents                                                 $   871
   Receivables and deposits                                                      197
   Restricted escrows                                                            377
   Other assets                                                                  444
   Investment properties (Notes C and F):
      Land                                                    $ 3,738
      Buildings and related personal property                   44,258
                                                                47,996
      Less accumulated depreciation                            (29,574)       18,422

                                                                            $ 20,311
Liabilities and Partners' Deficit
Liabilities
   Accounts payable                                                         $    142
   Tenant security deposit liabilities                                           100
   Accrued property taxes                                                         52
   Other liabilities                                                             287
   Mortgage notes payable (Note C)                                            20,943

Partners' Deficit
   General partner                                             $  (315)
   Limited partners (60,517 units issued and
      outstanding)                                                (898)       (1,213)

                                                                            $ 20,311
</TABLE>

                 See Accompanying Notes to Financial Statements
<PAGE>


                           NATIONAL PROPERTY INVESTORS 7

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


<TABLE>
<CAPTION>

                                                               Years Ended December 31,
                                                                   2000         1999
Revenues:
<S>                                                               <C>          <C>
   Rental income                                                  $ 7,151      $ 7,180
   Other income                                                       372          306
      Total revenues                                                7,523        7,486

Expenses:
   Operating                                                        2,774        2,732
   General and administrative                                         541          295
   Depreciation                                                     1,989        1,789
   Interest                                                         1,666        1,626
   Property taxes                                                     434          424
      Total expenses                                                7,404        6,866

Income before extraordinary item                                      119          620

Extraordinary loss on early extinguishment of debt (Note C)            --         (106)

Net income (Note D)                                                $  119       $  514

Net income allocated to general partner (1%)                       $    1       $    5

Net income allocated to limited partners (99%)                        118          509

                                                                   $  119       $  514

Per limited partnership unit:
   Income before extraordinary item                                $ 1.95       $10.14
   Extraordinary loss on early extinguishment of debt                  --        (1.73)

   Net income                                                      $ 1.95       $ 8.41

Distributions per limited partnership unit                         $52.00       $ 4.91
</TABLE>

                 See Accompanying Notes to Financial Statements

<PAGE>
                           NATIONAL PROPERTY INVESTORS 7

                STATEMENTS OF CHANGES IN PARTNERS' (DEFICIT) CAPITAL
                        (in thousands, except per 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) capital at
  December 31, 1998                       60,517       $ (286)    $ 1,919    $ 1,633

Distribution to partners                      --           (3)       (297)      (300)

Net income for the year ended
  December 31, 1999                           --            5         509        514

Partners' (deficit) capital at
  December 31, 1999                       60,517         (284)      2,131      1,847

Distributions to partners                     --          (32)     (3,147)    (3,179)

Net income for the year ended
  December 31, 2000                           --            1         118        119

Partners' deficit at
  December 31, 2000                       60,517       $ (315)    $ (898)    $(1,213)
</TABLE>

                 See Accompanying Notes to Financial Statements

<PAGE>

                           NATIONAL PROPERTY INVESTORS 7

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

                                                             Years Ended December 31,
                                                                 2000         1999
Cash flows from operating activities:
<S>                                                              <C>          <C>
  Net income                                                     $  119       $  514
  Adjustments to reconcile net income to net
   cash provided by operating activities:
   Depreciation                                                   1,989        1,789
   Amortization of loan costs                                        98          110
   Extraordinary loss on early extinguishment of debt                --          106
   Change in accounts:
      Receivables and deposits                                      140          135
      Other assets                                                  (20)         (43)
      Accounts payable                                              (24)         109
      Tenant security deposit liabilities                            (7)         (22)
      Accrued property taxes                                        (15)        (113)
      Other liabilities                                             (14)          49

          Net cash provided by operating activities               2,266        2,634

Cash flows from investing activities:
  Property improvements and replacements                           (981)      (1,186)
  Net withdrawals from (deposits to) restricted escrows              70          (37)

          Net cash used in investing activities                    (911)      (1,223)

Cash flows from financing activities:
  Payments on mortgage note payable                                 (82)         (40)
  Payoff of mortgage note payable                                    --       (3,406)
  Proceeds from mortgage note payable                                --        4,225
  Prepayment penalty                                                 --          (83)
  Loan costs paid                                                   (16)         (88)
  Distributions to partners                                      (3,179)        (300)

          Net cash (used in) provided by financing
            activities                                           (3,277)         308

Net (decrease) increase in cash and cash equivalents             (1,922)       1,719

Cash and cash equivalents at beginning of year                    2,793        1,074

Cash and cash equivalents at end of year                        $   871      $ 2,793

Supplemental disclosure of cash flow information:
  Cash paid for interest                                        $ 1,537      $ 1,541
</TABLE>

                 See Accompanying Notes to Financial Statements

<PAGE>

                           NATIONAL PROPERTY INVESTORS 7

                          NOTES TO FINANCIAL STATEMENTS

                                December 31, 2000


Note A - Organization and Significant Accounting Policies

Organization:  National Property Investors 7 (the "Partnership" or "Registrant")
is a  California  limited  partnership  organized in October 1983 to acquire and
operate  residential  apartment  complexes.  The Partnership's  managing general
partner is NPI Equity  Investments,  Inc. ("NPI Equity" or the "Managing General
Partner"). NPI Equity was a wholly owned subsidiary of Insignia Properties Trust
("IPT").  On February 26, 1999,  IPT was merged into  Apartment  Investment  and
Management Company ("AIMCO") (see "Note B - Transfer of Control"). The directors
and officers of the Managing General Partner also serve as executive officers of
AIMCO. The Partnership Agreement provides that the Partnership will terminate on
December  31, 2008,  unless  terminated  prior to such date.  As of December 31,
2000, the Partnership  operates five  residential  apartment  complexes  located
throughout the southeastern United States.

Allocation of Profits,  Gains,  and Losses:  Profits,  gains,  and losses of the
Partnership are allocated between the general and limited partners in accordance
with the provisions of the Partnership Agreement.

Profits,  not including  gains from property  dispositions,  are allocated as if
they were distributions of net cash from operations.

Any gain from property  dispositions  attributable to the excess, if any, of the
indebtedness relating to a property immediately prior to the disposition of such
property  over  the  Partnership's  adjusted  basis  in the  property  shall  be
allocated to each partner  having a negative  capital  account  balance,  to the
extent of such negative  balance.  The balance of any gain shall be treated on a
cumulative basis as if it constituted an equivalent  amount of distributable net
proceeds and shall be  allocated  to the general  partner to the extent that the
general  partner  would have received  distributable  net proceeds in connection
therewith; the balance shall be allocated to the limited partners.  However, the
interest of the general partner will be equal to at least 1% of each gain at all
times during the existence of the Partnership.

All  losses,  including  losses  attributable  to  property  dispositions,   are
allocated 99% to the limited partners and 1% to the general partner.

Accordingly,  net income as shown in the statements of operations and changes in
partner's  (deficit) capital for 2000 and 1999 were allocated 99% to the limited
partners and 1% to the general partner.  Net income per limited partnership unit
for each such year was  computed  as 99% of net income  divided by 60,517  units
outstanding.

Cash and Cash  Equivalents:  Cash and cash equivalents  include cash on hand, in
banks and money market accounts.  At certain times, the amount of cash deposited
at a bank may  exceed  the limit on  insured  deposits.  Cash  balances  include
approximately  $720,000  at  December  31,  2000  that  are  maintained  by  the
affiliated   management  company  on  behalf  of  affiliated  entities  in  cash
concentration accounts.

Leases: The Partnership  generally leases apartment units for twelve-month terms
or less. The Partnership recognizes income as earned on its leases. In addition,
the Managing  General  Partner's  policy is to offer rental  concessions  during
periods of declining  occupancy or in response to heavy  competition  from other
similar complexes in the area.  Concessions are charged against rental income as
incurred.

Tenant  Security  Deposits:  The  Partnership  requires  security  deposits from
lessees  for the  duration  of the  lease  and such  deposits  are  included  in
receivables  and  deposits.  Deposits  are  refunded  when the  tenant  vacates,
provided  the  tenant  has not  damaged  its space and is  current on its rental
payments.

Restricted Escrows:

      Replacement  Reserve:  A replacement  reserve  account is  maintained  for
      Fairway  View  II  Apartments,   Patchen  Place   Apartments,   Southpoint
      Apartments, and Northwoods I & II Apartments. Each property has a required
      monthly   payment   into  its  account  to  cover  the  costs  of  capital
      improvements and  replacements.  The balance of these accounts at December
      31, 2000, is approximately $359,000 which includes interest.

Loan Costs: Loan costs of approximately $744,000, less accumulated  amortization
of approximately  $390,000, are included in other assets and are being amortized
on a straight-line basis over the lives of the related loans.

Investment Properties: Investment properties consist of five apartment complexes
and are  stated  at cost.  Acquisition  fees are  capitalized  as a cost of real
estate. In accordance with Statement of Financial  Accounting Standards ("SFAS")
No. 121,  "Accounting for the Impairment of Long-Lived Assets and for Long-Lived
Assets  to be  Disposed  Of",  the  Partnership  records  impairment  losses  on
long-lived assets used in operations when events and circumstances indicate that
the assets might be impaired  and the  undiscounted  cash flows  estimated to be
generated by those assets are less than the carrying amounts of those assets. No
adjustments  for  impairment of value were recorded in the years ended  December
31, 2000 or 1999.

Depreciation:  Depreciation  is  provided by the  straight-line  method over the
estimated lives of the apartment  properties and related personal property.  For
Federal income tax purposes,  the  accelerated  cost recovery method is used (1)
for real property over 15 years for additions  prior to March 16, 1984, 18 years
for  additions  after  March 15,  1984 and before May 9, 1985,  and 19 years for
additions  after May 8, 1985,  and before  January 1, 1987, and (2) for personal
property over 5 years for additions prior to January 1, 1987. As a result of the
Tax Reform Act of 1986,  for  additions  after  December 31, 1986,  the modified
accelerated  cost recovery method is used for  depreciation of (1) real property
over 27 1/2 years and (2) personal property additions over 5 years.

Fair Value of Financial Instruments: SFAS No. 107, "Disclosures about Fair Value
of  Financial  Instruments",  as amended  by SFAS No.  119,  "Disclosures  about
Derivative  Financial  Instruments  and Fair  Value of  Financial  Instruments",
requires  disclosure  of fair value  information  about  financial  instruments,
whether or not recognized in the balance  sheet,  for which it is practicable to
estimate  fair  value.  Fair value is defined in the SFAS as the amount at which
the  instruments  could be exchanged in a current  transaction  between  willing
parties,  other than in a forced or liquidation  sale. The Partnership  believes
that the  carrying  amount of its  financial  instruments  (except for long term
debt)  approximates  their fair value due to the short  term  maturity  of these
instruments.  The  fair  value  of  the  Partnership's  long  term  debt,  after
discounting the scheduled loan payments to maturity,  approximates  its carrying
balance.

Segment Reporting:  SFAS No. 131, Disclosure about Segments of an Enterprise and
Related  Information  established  standards  for the way that  public  business
enterprises  report  information  about operating  segments in annual  financial
statements and requires that those enterprises report selected information about
operating segments in interim financial reports.  It also establishes  standards
for related disclosures about products and services, geographic areas, and major
customers.  As defined in SFAS No. 131, the  Partnership has only one reportable
segment.  The Managing General Partner believes that  segment-based  disclosures
will not result in a more meaningful  presentation than the financial statements
as currently presented.

Use of Estimates:  The  preparation of financial  statements in conformity  with
generally accepted  accounting  principles requires management to make estimates
and assumptions that affect the amounts reported in the financial statements and
accompanying notes. Actual results could differ from those estimates.

Advertising:  The  Partnership  expenses the costs of  advertising  as incurred.
Advertising  costs of  approximately  $102,000  and  $91,000 for the years ended
December 31, 2000 and 1999,  respectively,  were charged to operating expense as
incurred.

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 IPT merged into AIMCO, a
publicly  traded real  estate  investment  trust with AIMCO being the  surviving
corporation (the "Insignia Merger").  As a result, AIMCO acquired 100% ownership
interest in the Managing General Partner.  The Managing General Partner does not
believe  that this  transaction  has had or will have a  material  effect on the
affairs and operations of the Partnership.

Note C - Mortgage Notes Payable

The principle terms of mortgage notes payable are as follows:
<TABLE>
<CAPTION>

                        Principal     Monthly                              Principal
                       Balance At     Payment      Stated                   Balance
                      December 31,   Including    Interest    Maturity      Due At
Property                  2000        Interest      Rate        Date       Maturity
                            (in thousands)                              (in thousands)

<S>                      <C>            <C>         <C>       <C>   <C>     <C>
Fairway View II          $ 4,200        $ 26        7.33%     11/01/03      $ 4,200
The Pines                  4,143          35        7.97%     01/01/20           --
Patchen Place              3,000          18        7.33%     11/01/03        3,000
Northwoods I & II          5,000          31        7.33%     11/01/03        5,000
South Point                4,600          28        7.33%     11/01/03        4,600
        Total            $20,943       $ 138                                $16,800
</TABLE>

The mortgage  notes  payable are  non-recourse  and are secured by pledge of the
respective  apartment  properties  and by pledge of revenues from the respective
apartment properties.  The notes require prepayment penalties if repaid prior to
maturity and prohibit resale of the properties subject to existing indebtedness.

The mortgages encumbering Fairway View II Apartments,  Patchen Place Apartments,
Northwoods I & II Apartments,  and South Point Apartments require  interest-only
payments.

On December 13, 1999, the  Partnership  refinanced the mortgage  encumbering The
Pines  Apartments.   The  refinancing  replaced  indebtedness  of  approximately
$3,406,000 with a new mortgage in the amount of $4,225,000. The interest rate on
the new  mortgage is 7.97% as compared to 8.56% on the  previous  debt.  The new
loan which  matures on January 1, 2020 requires  monthly  principal and interest
payments and is scheduled to be fully amortized at maturity.  Total  capitalized
loan costs were  approximately  $88,000 during the year ended December 31, 1999.
Additional loan costs of approximately  $16,000 were capitalized during the year
ended  December 31, 2000.  For financial  statement  purposes,  the  Partnership
recognized a loss on the early extinguishment of debt of approximately  $106,000
consisting of a prepayment penalty and the write-off of unamortized loan costs.

Scheduled  principal  payments  of the  mortgage  notes  payable  subsequent  to
December 31, 2000 are as follows (in thousands):

                               2001             $    97
                               2002                 104
                               2003              16,913
                               2004                 122
                               2005                 132
                            Thereafter            3,575

                               Total            $20,943

Note D - Income Taxes

The Partnership has received a ruling from the Internal  Revenue Service that it
will  be  classified  as  a  partnership   for  Federal   income  tax  purposes.
Accordingly,  no provision for income taxes is made in the financial  statements
of the Partnership. Taxable income or loss of the Partnership is reported in the
income tax returns of its partners.

The  following is a  reconciliation  of reported net income and Federal  taxable
(loss) income (in thousands, except unit data):


                                               2000         1999
Net income as reported                       $  119        $ 514
Add (deduct):
   Depreciation differences                     (92)          42
   Other                                        (89)          32

Federal taxable (loss) income                $  (62)       $ 588

Federal taxable (loss) income per
   limited partnership unit                  $(1.02)       $9.62


The following is a reconciliation between the Partnership's reported amounts and
Federal tax basis of net assets (in thousands):


                                                    2000
Net liabilities as reported                       $(1,213)
Land and buildings                                 (1,510)
Accumulated depreciation                           (6,892)
Syndication and distribution costs                  3,555
Prepaid rent                                           21
Other                                                 138

Net liabilities - Federal tax basis               $(5,901)

Note E - 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.

The  following  payments  were  made to the  Managing  General  Partner  and its
affiliates during the years ended December 31, 2000 and 1999:

                                                         2000       1999
                                                         (in thousands)
Property management fees (included in operating
  expenses)                                              $366       $380
Reimbursement for services of affiliates
  (included in investment properties and general
  and administrative expenses)                            256        180
Non-accountable reimbursement (included in general
  and administrative expenses)                             91         --
Partnership management fee (included in general
  and administrative expenses)                             93         --

During the years ended  December 31, 2000 and 1999,  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  $366,000 and
$380,000 for the years ended December 31, 2000 and 1999, respectively.

An  affiliate  of  the  Managing  General  Partner  received   reimbursement  of
accountable  administrative  expenses  amounting to  approximately  $256,000 and
$180,000 for the years ended December 31, 2000 and 1999, respectively.

In addition, in connection with the refinancing of the mortgage loan encumbering
The Pines Apartments the Partnership paid approximately $42,000 in loan costs to
an affiliate  during the year ended  December 31, 1999.  No such loan costs were
paid in 2000. These loan costs are included in other assets and are amortized as
interest expense over the term of the loan.

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 the year ended December 31, 2000.
The Managing General Partner was not entitled to receive a similar reimbursement
during the year ended December 31, 1999 because there were no distributions from
operations.

For managing the affairs of the Partnership, the Managing General Partner of the
Partnership  is entitled to receive a  partnership  management  fee.  The fee is
equal to 4% of the  Partnership's  adjusted cash from operations,  as defined in
the Partnership  Agreement,  in any year, provided that 50% of the fee shall not
be paid until the Partnership has distributed to the limited  partners  adjusted
cash from operations in such year which is equal to 5% of the limited  partners'
adjusted invested capital, as defined,  on a non-cumulative  basis. In addition,
50% of the fee shall not be paid until the  Partnership  has  distributed to the
limited partners adjusted cash from operations in such year which is equal to 8%
of the limited partners'  adjusted  invested capital on a non-cumulative  basis.
The fee shall be paid when adjusted cash from  operations is  distributed to the
limited partners.  The Managing General Partner was paid  approximately  $93,000
during the year ended  December  31, 2000 for such fees.  The  Managing  General
Partner  was not  entitled  to receive a similar  reimbursement  during the year
ended December 31, 1999 because there were no distributions from operations.

Upon the sale of the Partnership's properties, NPI Equity will be entitled to an
incentive  compensation  fee equal to a declining  percentage of the  difference
between the total amount distributed to limited partners and the appraised value
of their investment at February 1, 1992. The percentage amount to be realized by
NPI Equity,  if any,  will be  dependent  upon the year in which the property is
sold.  Payment of the incentive  compensation fee is subordinated to the receipt
by the limited partners, of: (a) distributions from capital transaction proceeds
of an amount equal to their appraised  investment in the Partnership at February
1, 1992; and (b) distributions from all sources (capital transactions as well as
cash  flow)  of an  amount  equal to six  percent  (6%)  per  annum  cumulative,
non-compounded,  on their present  appraised  investment in the  Partnership  at
February 1, 1992.

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, be
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.

In addition to its  indirect  ownership of the general  partner  interest in the
Partnership,   AIMCO  and  its  affiliates   currently  own  40,082.67   limited
partnership  units in the  Partnership  representing  66.23% of the  outstanding
units.  A number of these units were acquired  pursuant to tender offers made by
affiliates of the Managing  General  Partner,  AIMCO, or its  affiliates.  It is
possible that AIMCO or its affiliates 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.  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 without
limitation, voting on certain amendments to the Partnership Agreement and voting
to remove the Managing General  Partner.  As a result of its ownership of 66.23%
of the  outstanding  units,  AIMCO is in a  position  to  influence  all  voting
decisions with respect to the Registrant.

When voting on matters, AIMCO would in all likelihood vote the Units it acquired
in a manner favorable to the interest of the Managing General Partner because of
their affiliation with the Managing General Partner.  However, DeForest Ventures
II L.P.,  from whom AIMCO,  through its merger with  Insignia,  acquired  25,399
Units  (approximately  41.97%), 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.

Note F - Real Estate and Accumulated Depreciation

<TABLE>
<CAPTION>

                                              Initial Cost
                                             To Partnership
                                             (in thousands)

                                                      Buildings           Cost
                                                     and Related       Capitalized
                                                       Personal       Subsequent to
Description             Encumbrances       Land        Property        Acquisition
                       (in thousands)                                (in thousands)

<S>                       <C>            <C>           <C>               <C>
Fairway View II           $ 4,200        $ 1,086       $ 8,788           $   855
The Pines                   4,143            579         6,521             1,254
Patchen Place               3,000            706         6,409             1,994
Northwoods I & II           5,000            478         7,919             1,880
South Point                 4,600            859         7,686               982
Totals                    $20,943        $ 3,708       $37,323           $ 6,965
</TABLE>

<TABLE>
<CAPTION>

                      Gross Amount at Which
                             Carried
                      At December 31, 2000
                         (in thousands)

                            Buildings
                           And Related
                            Personal            Accumulated     Year of      Date    Depreciable
Description         Land    Property    Total   Depreciation  Construction Acquired  Life-Years
                                               (in thousands)
<S>                <C>       <C>       <C>        <C>             <C>        <C>       <C>
Fairway View II    $ 1,094   $ 9,635   $10,729    $ 6,080         1981       11/84     5-27.5
The Pines              584     7,770     8,354      5,424         1978       04/85     5-27.5
Patchen Place          714     8,395     9,109      6,311         1971       07/85     5-27.5
Northwoods I & II      483     9,794    10,277      6,113         1981       07/85     5-27.5
South Point            863     8,664     9,527      5,646         1980       03/86     5-27.5
Total              $ 3,738   $44,258   $47,996    $29,574
</TABLE>

Reconciliation of "Real Estate and Accumulated Depreciation":

                                               Years Ended December 31,
                                                   2000         1999
                                                    (in thousands)
Investment Properties
Balance at beginning of year                     $47,015      $45,829
   Property improvements                             981        1,186
Balance at end of year                           $47,996      $47,015

Accumulated Depreciation
Balance at beginning of year                     $27,585      $25,796
   Additions charged to expense                    1,989        1,789
Balance at end of year                           $29,574      $27,585

The  aggregate  cost of the real  estate  for  Federal  income tax  purposes  at
December  31,  2000 and 1999,  is  approximately  $46,490,000  and  $45,512,000,
respectively. The accumulated depreciation taken for Federal income tax purposes
at December 31, 2000 and 1999, is  approximately  $36,467,000  and  $34,385,000,
respectively.

Note G - Distributions

During the year ended  December  31,  2000,  the  Partnership  declared and paid
distributions  of  approximately  $3,179,000  (approximately  $3,147,000  to the
limited  partners  or  $52.00  per  limited   partnership  unit)  consisting  of
approximately  $2,294,000  (approximately  $2,271,000 to the limited partners or
$37.53 per limited  partnership  unit) of cash from operations and approximately
$885,000  (approximately  $876,000 to the limited partners or $14.47 per limited
partnership  unit) of cash from the refinance  proceeds of The Pines  Apartments
and from refinancing  proceeds in prior years.  Subsequent to December 31, 2000,
the Partnership declared distributions of approximately $721,000  (approximately
$714,000  to the  limited  partners  or $11.80  per  limited  partnership  unit)
consisting of cash from  operations.  A distribution of  approximately  $300,000
(approximately $297,000 to the limited partners or $4.91 per limited partnership
unit) from  refinancing  proceeds  in prior years was paid during the year ended
December 31, 1999.

Note H - 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,  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 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 Insignia  Merger.  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
and  defendants  are  scheduled to respond to the complaint by March 2, 2001. On
March 2, 2001, the Managing  General Partner and its affiliates filed a demurrer
to the third amended complaint. The Managing General Partner does not anticipate
that  costs  associated  with this case 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 8. Changes  in  and  Disagreements   with  Accountants  on  Accounting  and
        Financial Disclosure

        None.



                                    PART III

Item 9. Directors,   Executive   Officers,   Promoters   and  Control   Persons;
        Compliance with Section 16(a) of the Exchange Act

National  Property  Investors 7 (the  "Partnership" or the  "Registrant") has no
officers or directors.  The managing  general  partner of the Partnership is NPI
Equity Investments,  Inc. ("NPI Equity" or the "Managing General Partner").  The
present  executive  officers and directors of the Managing  General  Partner are
listed below:

         Name                 Age    Position

         Patrick J. Foye       43    Executive Vice President and Director

         Martha L. Long        41    Senior Vice President and Controller

Patrick J. Foye has been  Executive  Vice President and Director of the Managing
General  Partner  since October 1, 1998.  Mr. Foye has served as Executive  Vice
President  of AIMCO  since May 1998.  Prior to  joining  AIMCO,  Mr.  Foye was a
partner in the law firm of Skadden, Arps, Slate, Meagher & Flom LLP from 1989 to
1998 and was  Managing  Partner  of the  firm's  Brussels,  Budapest  and Moscow
offices from 1992  through  1994.  Mr. Foye is also Deputy  Chairman of the Long
Island  Power   Authority  and  serves  as  a  member  of  the  New  York  State
Privatization  Council.  He received a B.A. from Fordham College and a J.D. from
Fordham University Law School.

Martha L. Long has been Senior Vice  President  and  Controller  of the Managing
General  Partner since October 1998 as a result of the  acquisition  of Insignia
Financial  Group,  Inc. As of February 2001, Ms. Long was also appointed head of
the service  business for AIMCO.  From June 1994 until January 1997, she was the
Controller for Insignia, and was promoted to Senior Vice President - Finance and
Controller in January 1997,  retaining that title until October 1998.  From 1988
to June 1994,  Ms. Long was Senior Vice  President and  Controller for The First
Savings Bank, FSB in Greenville, South Carolina.

One or more of the above persons are also directors and/or officers of a general
partner (or general partner of a general partner) of limited  partnerships which
either have a class of  securities  registered  pursuant to Section 12(g) of the
Securities Exchange Act of 1934, or are subject to the reporting requirements of
Section  15(d) of such Act:  Further,  one or more of the above persons are also
directors and/or officers of Apartment Investment and Management Company and the
general  partner  of  AIMCO  Properties,  L.P.,  entities  that  have a class of
securities  registered  pursuant to Section 12(g) of the Securities Exchange Act
of 1934, or are subject to the reporting  requirements of Section 15 (d) of such
Act.

The executive  officers and director of the Managing General Partner fulfill the
obligations  of the Audit  Committee  and  oversee the  Partnership's  financial
reporting process on behalf of the Managing General Partner.  Management has the
primary  responsibility  for the financial  statements and the reporting process
including  the  systems  of  internal  controls.  In  fulfilling  its  oversight
responsibilities,  the executive  officers and director of the Managing  General
Partner reviewed the audited  financial  statements with management  including a
discussion  of the  quality,  not  just  the  acceptability,  of the  accounting
principles,  the  reasonableness  of significant  judgments,  and the clarity of
disclosures in the financial statements.

The executive  officers and director of the Managing  General  Partner  reviewed
with the independent auditors,  who are responsible for expressing an opinion on
the conformity of those audited  financial  statements  with generally  accepted
accounting  principles,  their  judgments  as  to  the  quality,  not  just  the
acceptability, of the Partnership's accounting principles and such other matters
as are required to be discussed with the Audit Committee or its equivalent under
generally  accepted  auditing  standards.   In  addition,  the  Partnership  has
discussed  with  the  independent  auditors  the  auditors'   independence  from
management and the Partnership  including the matters in the written disclosures
required by the Independence Standards Board and considered the compatibility of
non-audit services with the auditors' independence.

The executive  officers and director of the Managing  General Partner  discussed
with the  Partnership's  independent  auditors  the overall  scope and plans for
their audit. In reliance on the reviews and discussions  referred to above,  the
executive officers and director of the Managing General Partner has approved the
inclusion of the audited  financial  statements  in the Form 10-KSB for the year
ended December 31, 2000 for filing with the Securities and Exchange Commission.

The Managing  General Partner has  reappointed  Ernst & Young LLP as independent
auditors to audit the financial  statements of the  Partnership  for the current
fiscal  year.  Fees for the last  fiscal  year were  annual  audit  services  of
approximately  $51,000  and  non-audit  services  (principally  tax-related)  of
approximately $26,000.

Item 10.    Executive Compensation

Neither the director nor officers  received any  remuneration  from the Managing
General Partner during the year ended December 31, 2000.

Item 11.    Security Ownership of Certain Beneficial Owners and Management

Except as noted below,  no person or entity was known by the  Partnership  to be
the beneficial  owners of more than 5% of the Limited  Partnership  Units of the
Partnership, as of December 31, 2000.

                                       Amount and Nature
        Name of Beneficial Owner      of Beneficial Owner     % of Class

        Insignia Properties, LP            25,399.00            41.97%
          (an affiliate of AIMCO)
        AIMCO Properties LP                14,683.67            24.26%
          (an affiliate of AIMCO)

Insignia  Properties LP is indirectly  ultimately  owned by AIMCO.  Its business
address is 55 Beattie Place, Greenville, South Carolina 29602.

AIMCO Properties LP is indirectly  ultimately  controlled by AIMCO. Its business
address is 2000 South Colorado Boulevard, Denver, Colorado 80222.

No director or officer of the Managing General Partner owns any units.

Item 12.    Certain Relationships and Related Transactions

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.

The following  payments were made to the Managing General Partner and affiliates
during the years ended December 31, 2000 and 1999:

                                                         2000       1999
                                                         (in thousands)

Property management fees                                 $366       $380
Reimbursement for services of affiliates                  256        180
Non-accountable reimbursement                              91         --
Partnership management fee                                 93         --

During the years ended  December 31, 2000 and 1999,  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  $366,000 and
$380,000 for the years ended December 31, 2000 and 1999, respectively.

An  affiliate  of  the  Managing  General  Partner  received   reimbursement  of
accountable  administrative  expenses  amounting to  approximately  $256,000 and
$180,000 for the years ended December 31, 2000 and 1999, respectively.

In addition, in connection with the refinancing of the mortgage loan encumbering
The Pines Apartments the Partnership paid approximately $42,000 in loan costs to
an affiliate  during the year ended  December 31, 1999.  No such loan costs were
paid in 2000. These loan costs are included in other assets and are amortized as
interest expense over the term of the loan.

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 the year ended December 31, 2000.
The Managing General Partner was not entitled to receive a similar reimbursement
during the year ended December 31, 1999 because there were no distributions from
operations.

For managing the affairs of the Partnership, the Managing General Partner of the
Partnership  is entitled to receive a  partnership  management  fee.  The fee is
equal to 4% of the  Partnership's  adjusted cash from operations,  as defined in
the Partnership  Agreement,  in any year, provided that 50% of the fee shall not
be paid until the Partnership has distributed to the limited  partners  adjusted
cash from operations in such year which is equal to 5% of the limited  partners'
adjusted invested capital, as defined,  on a non-cumulative  basis. In addition,
50% of the fee shall not be paid until the  Partnership  has  distributed to the
limited partners adjusted cash from operations in such year which is equal to 8%
of the limited partners'  adjusted  invested capital on a non-cumulative  basis.
The fee shall be paid when adjusted cash from  operations is  distributed to the
limited partners.  The Managing General Partner was paid  approximately  $93,000
during the year ended  December  31, 2000 for such fees.  The  Managing  General
Partner  was not  entitled  to receive a similar  reimbursement  during the year
ended December 31, 1999 because there were no distributions from operations.

Upon the sale of the Partnership's properties, NPI Equity will be entitled to an
incentive  compensation  fee equal to a declining  percentage of the  difference
between the total amount distributed to limited partners and the appraised value
of their investment at February 1, 1992. The percentage amount to be realized by
NPI Equity,  if any,  will be  dependent  upon the year in which the property is
sold.  Payment of the incentive  compensation fee is subordinated to the receipt
by the limited partners, of: (a) distributions from capital transaction proceeds
of an amount equal to their appraised  investment in the Partnership at February
1, 1992; and (b) distributions from all sources (capital transactions as well as
cash  flow)  of an  amount  equal to six  percent  (6%)  per  annum  cumulative,
non-compounded,  on their present  appraised  investment in the  Partnership  at
February 1, 1992.

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, be
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.

In addition to its  indirect  ownership of the general  partner  interest in the
Partnership,   AIMCO  and  its  affiliates   currently  own  40,082.67   limited
partnership  units in the  Partnership  representing  66.23% of the  outstanding
units.  A number of these units were acquired  pursuant to tender offers made by
affiliates of the Managing  General  Partner,  AIMCO, or its  affiliates.  It is
possible that AIMCO or its affiliates 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.  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 without
limitation, voting on certain amendments to the Partnership Agreement and voting
to remove the Managing General  Partner.  As a result of its ownership of 66.23%
of the  outstanding  units,  AIMCO is in a  position  to  influence  all  voting
decisions with respect to the Registrant. When voting on matters, AIMCO would in
all likelihood vote the Units it acquired in a manner  favorable to the interest
of the Managing  General Partner because of their  affiliation with the Managing
General Partner.  However,  DeForest Ventures II L.P., from whom AIMCO,  through
its merger with Insignia,  acquired  25,399 Units  (approximately  41.97%),  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.

Item 13.    Exhibits and Reports on Form 8-K

      (a)   Exhibits:

            None.

      (b)   Reports on Form 8-K filed during the fourth quarter of calendar year
            2000:

            None.


<PAGE>


                                   SIGNATURES



Pursuant to the  requirements of Section 13 or 15(d) of the Securities  Exchange
Act of 1934, 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.
                                          Managing General Partner


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


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


                                    Date:


Pursuant to the requirements of the Securities Exchange Act of 1934, this Report
has been signed below by the following  persons on behalf of the  Registrant and
in the capacities and on the date indicated.


/s/Patrick J. Foye      Executive Vice President      Date:
Patrick J. Foye         and Director


/s/Martha L. Long       Senior Vice President         Date:
Martha L. Long          and Controller

<PAGE>

                                  EXHIBIT INDEX



Exhibit Number    Description of Exhibit

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

      2.6      Agreement and Plan of Merger, dated as of October 1, 1998, by and
               between AIMCO and IPT. (2)

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

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

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

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

     10.1      Purchase  Agreement dated as of November 20, 1990, by and between
               the  Managing  General  Partner  and the Prior  Managing  General
               Partner,  IRI Properties Capital Corp. and RPMC,  incorporated by
               reference to Exhibit 10(a) to the Registrant's  Current Report on
               Form 8-K dated November 20, 1990. (7)

     10.2      Amendments to Purchase  Agreement  dated as of November 20, 1990,
               by and  between  the  Managing  General  Partner  and  the  Prior
               Managing General Partner,  IRI Properties Capital Corp. and RPMC,
               incorporated  by reference to Exhibit  10(a) to the  Registrant's
               Current Report on Form 8-K dated June 21, 1991. (8)

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

     10.4      Multifamily Note and Addendum, dated January 4, 1994, made by the
               Registrant   for  the   benefit  of  Hanover   Capital   Mortgage
               Corporation, as it pertains to The Pines Apartments. (8)

     10.5      Multifamily  Deed of  Trust,  Assignment  of Rents  and  Security
               Agreement  and  Rider,   dated  January  4,  1994,   between  the
               Registrant  and  Hanover  Capital  Mortgage  Corporation,  as  it
               pertains to The Pines Apartments. (8)

     10.6      Multifamily  Note  secured by a Mortgage  or Deed of Trust  dated
               November  1, 1996,  between  National  Property  Investors  7 and
               Lehman Brothers Holdings,  Inc., d/b/a Lehman Capital, a Division
               of  Lehman  Brothers   Holdings  Inc.,   relating  to  Northwoods
               Apartments. (9)

     10.7      Multifamily  Note  secured by a Mortgage  or Deed of Trust  dated
               November  1, 1996,  between  National  Property  Investors  7 and
               Lehman Brothers Holdings,  Inc., d/b/a Lehman Capital, a Division
               of  Lehman  Brothers  Holdings  Inc.,  relating  to  South  Point
               Apartments. (9)

     10.8      Multifamily  Note  secured by a Mortgage  or Deed of Trust  dated
               November  1, 1996,  between  National  Property  Investors  7 and
               Lehman Brothers Holdings,  Inc., d/b/a Lehman Capital, a Division
               of Lehman  Brothers  Holdings  Inc.,  relating  to Patchen  Place
               Apartments. (9)

     10.9      Multifamily  Note  secured by a Mortgage  or Deed of Trust  dated
               November  1, 1996,  between  National  Property  Investors  7 and
               Lehman Brothers Holdings,  Inc., d/b/a Lehman Capital, a Division
               of Lehman  Brothers  Holdings  Inc.,  relating to Fairway View II
               Apartments. (9)

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

     16        Letter  dated  November 10, 1998,  from the  Registrant's  former
               independent   accountant   regarding  its  concurrence  with  the
               statements made by the  Registrant,  incorporated by reference to
               Exhibit 16 filed  with  Registrant's  Current  Report on Form 8-K
               dated November 10, 1998.



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

     (2)       Incorporated   by   reference  to  Exhibit  2.1  filed  with  the
               Registrant's Current Report on Form 8-K dated October 1, 1998.

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

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

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

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

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

     (8)       Incorporated  by reference to the  Registrant's  Annual Report on
               Form 10-K for the period ended December 31, 1993.

     (9)       Incorporated  by reference to the  Registrant's  Annual Report on
               Form 10-K for the period ended December 31, 1996.

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