<PAGE>   1
                     U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-KSB


(Mark One)

[ X ]   ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
        OF 1934 [Fee Required]

For the fiscal year ended December 31, 1997

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

For the transition period from                 to
                               ---------------    --------------


Commission file number 000-21722

           WINDSOR PARK PROPERTIES 7, A CALIFORNIA LIMITED PARTNERSHIP
           -----------------------------------------------------------
              (Exact name of small business issuer in its charter)

          California                                     33-0363181
-------------------------------            ------------------------------------
(State or other jurisdiction of            (I.R.S. Employer Identification No.)
incorporation or organization)

                  6430 South Quebec Street, Englewood, CO 80111
               ---------------------------------------------------
               (Address of principal executive offices) (Zip Code)

Issuer's telephone number:   (303) 741-3707

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 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 disclosure of delinquent filers in response to Item 405 of
Regulation S-B is not 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: $2,704,510

                    DOCUMENTS INCORPORATED BY REFERENCE: None


                                       1
<PAGE>   2
                                TABLE OF CONTENTS

                                    PART I

<TABLE>
<CAPTION>
                                                                                     Page
                                                                                     ----
<S>        <C>                                                                       <C>
Item 1.    Description of Business                                                    3

Item 2.    Description of Properties                                                  5

Item 3.    Legal Proceedings                                                          7

Item 4.    Submission of Matters to a Vote of Security Holders                        7

                                   PART II

Item 5.    Market for the Partnership's Units and Related Security Holder Matters     7

Item 6.    Management's Discussion and Analysis                                       8

Item 7.    Financial Statements                                                      11

Item 8.    Changes in and Disagreements with Accountants on Accounting
           and Financial Disclosure                                                  25

                                   PART III

Item 9.    Directors, Executive Officers, Promoters and Control Persons;
           Compliance with Section 16(a) of The Exchange Act                         26

Item 10.   Executive Compensation                                                    27

Item 11.   Security Ownership of Certain Beneficial Owners and Management            27

Item 12.   Certain Relationships and Related Transactions                            28

Item 13.   Exhibits and Reports on Form 8-K                                          29

           SIGNATURES                                                                30
</TABLE>





                                       2
<PAGE>   3
                                     PART I

Item 1.  DESCRIPTION OF BUSINESS

Business Development

Windsor Park Properties 7, a California Limited Partnership (the Partnership),
was formed in June 1989 pursuant to the provisions of the California Uniform
Limited Partnership Act. The General Partners of the Partnership are The Windsor
Corporation, a California corporation ("The Windsor Corporation"), and John A.
Coseo, Jr. In September 1997, Chateau Communities, Inc. (Chateau), a publicly
held real estate investment trust, purchased all of the outstanding capital
stock of The Windsor Corporation for 101,239 common shares of Chateau, and
$750,000 in cash. Following the purchase of The Windsor Corporation Chateau
appointed a new Board of Directors and elected Steven G. Waite as the President
of The Windsor Corporation. The Partnership term is set to expire in December
2005; however, the Partnership may either be dissolved and liquidated earlier or
extended under certain circumstances. The Partnership may be extended at the
recommendation of the General Partners with approval of a majority of the
Limited Partners.

The Partnership was organized to acquire and hold existing manufactured home
communities for investment. Its principal investment objectives are to provide
to its Limited Partners: (i) distributions of cash from operations, (ii)
preservation, protection and eventual return of the Limited Partners'
investment, and (iii) realization of appreciation in the value of the properties
acquired.

The Partnership was funded through a public offering of 250,000 limited
partnership units (Units). A total of 159,332 Units were sold for gross proceeds
aggregating $15,933,200. The offering commenced in March 1990 and terminated in
January 1992. The net proceeds from the offering were originally expended for
the acquisition of undivided interests in four manufactured home communities
located in Florida, Washington and Indiana. The Partnership paid all cash for
the properties.

In February 1995, through a proxy vote of the limited partners, an amendment to
the Agreement of Limited Partnership was approved permitting the financing of
currently owned manufactured home communities and the reinvestment of financing
proceeds into newly acquired manufactured home communities to be purchased with
permanent mortgage financing. Overall Partnership mortgage financing will not
exceed 55% of the value of existing and newly acquired properties.

Subsequent to the approval of the financing and reinvestment proposal discussed
above, the Partnership obtained two loans collateralized by interests in
currently owned manufactured home communities. The proceeds from these loans
were used as partial consideration to purchase interests in six additional
manufactured home communities. The remaining consideration was obtained from
permanent mortgage financing.

In February 1997, the Partnership purchased a 26% interest in the Apache East
Estates and Denali Park Estates manufactured home communities located in
Phoenix, Arizona. The remaining interests in the communities were purchased by
affiliated entities. The Partnership's cost of its equity interest in the
communities was $570,400. In connection with the purchase, the joint venture
obtained a $3,040,000 loan, collateralized by the communities. The Partnership's
share of this loan is $790,400. In addition, the Partnership assumed a $500,000
note payable to the seller.




                                       3
<PAGE>   4
The Partnership owns interests in the following manufactured home communities at
December 31, 1997:

<TABLE>
<CAPTION>
                                             Date
Name of Property         Ownership %        Acquired              Location
----------------         -----------        --------              --------
<S>                      <C>                <C>                   <C>
Carefree Village              56%           July 1990             Tampa, Florida
North Glen                   100%           October 1991          Westfield, Indiana
Kings & Queens               100%           February 1992         Lakeland, Florida
The Hills                    100%           December 1992         Richland, Washington
Lucerne                      100%           June 1995             Winter Haven, Florida
Long Lake                     60%           June 1995             West Palm Beach, Florida
Garden Walk                   69%           August 1995           Palm Beach Gardens, Florida
Village Glen                 100%           October 1995          Melbourne, Florida
Apache East                   26%           February 1997         Phoenix, Arizona
Denali Park                   26%           February 1997         Phoenix, Arizona
</TABLE>

The above described ownership interests where the Partnership owns less than
100% of a property consist of ownership interests in joint ventures or limited
partnerships that own one or more manufactured home communities.

No further property financings or investment property acquisitions are planned
by the General Partners.

The overall occupancy of the ten communities owned by the Partnership at
December 31, 1997 was approximately 90%. The General Partners continue to
maintain the properties in good condition and promote them to improve occupancy.

Business of Issuer

The Partnership is currently in the business of managing, holding for
investment, and eventually selling the existing manufactured home communities.
Competitors of the Partnership include other public and private limited
partnerships, individuals, corporations, and other entities engaged in real
estate investment activities. Competition for such properties varies with
changes in the supply or demand for similar or competing properties in a given
area, changes in interest rates and the availability of mortgage funds, and
changes in tax, real estate, environmental, and zoning laws.

Partnership profitability depends in part on maximizing occupancy and rental
rates in its manufactured home communities. Rents and occupancy rates are
affected by both changes in general economic conditions and changes in local
conditions such as levels of employment, supply of other comparable units or
competitive housing alternatives, zoning laws and the availability and cost of
energy and transportation.

All of the properties are located in or near large urban areas. Accordingly,
they compete for rentals not only with the other manufactured home communities
but with apartments and any other form of low-cost housing that might exist.

The Partnership's profitability also depends on the minimization of both
property and partnership administration expenses. Expenses are affected by
changes in general economic trends and changes in local conditions such as
prevailing wages, utility rates, insurance costs, and real estate taxation
practices.

The Partnership has no employees. Partnership administrative services are
provided by The Windsor Corporation, which is reimbursed for costs incurred on
behalf of the Partnership. An independent property management company employs
all of the properties' on-site personnel and is reimbursed by the Partnership
for such costs.



                                       4
<PAGE>   5

Item 2.  DESCRIPTION OF PROPERTIES

The Partnership owns interests in ten properties at December 31, 1997. The
Partnership operates the properties as manufactured home communities, renting
space to manufactured home tenants on a month-to-month basis. The properties
compete for rentals with other manufactured home communities and apartments in
their local markets. All of the properties are encumbered. It is the General
Partners' opinion that the properties are in good condition and are adequately
insured.


<TABLE>
<CAPTION>
                              Carefree Village       North Glen        Kings & Queens          The Hills
                              ----------------       ----------        --------------          ---------
                                    Tampa,           Westfield,           Lakeland,             Richland,
Location                           Florida            Indiana             Florida              Washington
------------------------------------------------------------------------------------------------------------
<S>                            <C>                 <C>                 <C>                  <C>
 Percentage of Ownership                   56%                100%                100%                 100%
 Date Acquired                           7/90               10/91                2/92                12/92
 Acreage                                   58                  38                  19                   52
 Number of Spaces                         406                 289                 107                  223
 Monthly Rents (1)             $          263      $          215      $          205       $          210
 Occupancy Level:
   December 31, 1997                       86%                100%                 98%                  97%
 Real Estate Taxes             $      125,200      $       29,200      $       20,000       $       31,200
 Federal Tax Basis (3)         $    2,982,700      $    3,423,000      $    1,034,800       $    2,420,400
 Mortgage Information:
   Balance payable             $    3,479,800      $    4,620,000                  (2)                  (2)
   Interest rate                         8.97%               8.97%                 (2)                  (2)
   Amortization period                   --                  --                    (2)                  (2)
   Maturity date                         6/02                6/02                  (2)                  (2)
   Balance due at maturity     $    3,479,800      $    4,620,000                  (2)                  (2)
</TABLE>



                                       5
<PAGE>   6


Item 2.  DESCRIPTION OF PROPERTIES  (continued)

<TABLE>
<CAPTION>
                                                                          Long Lake
                                                     Garden Walk           Village
                                Village Glen         -----------           -------             Lucerne
                                ------------         Palm Beach           West Palm            -------
                                   Tampa,              Gardens,             Beach,           Winter Haven,
Location                          Florida              Florida             Florida             Florida
-----------------------------------------------------------------------------------------------------------
<S>                            <C>                 <C>                 <C>                 <C>
 Percentage of Ownership                  100%                 69%                 60%                100%
 Date Acquired                          10/95                8/95                6/95                6/95
 Acreage                                   27                  71                  19                  14
 Number of Spaces                         143                 484                 134                 140
 Monthly Rents (1)             $          248      $          351      $          356      $          212
 Occupancy Level:
   December 31, 1996                       97%                 90%                 81%                 98%
 Real Estate Taxes             $       53,400      $      255,100      $       67,100      $       26,000
 Federal Tax Basis (3)         $    2,258,100      $    6,018,400      $    1,858,600      $    1,811,200
 Mortgage Information:
   Balance payable             $    1,500,000      $    5,700,000      $    1,600,000      $    1,100,000
   Interest rate                         8.82%               8.97%               8.97%               8.97%
   Amortization period                   --                  --                  --                  --
   Maturity date                         8/02                8/02                6/02                6/02
   Balance due at maturity     $    1,500,000      $    5,700,000      $    1,600,000      $    1,100,000
</TABLE>

<TABLE>
<CAPTION>
                                                 Apache East       Denali Park
                                                 -----------       -----------
                                                   Phoenix,         Phoenix,
Location                                           Arizona          Arizona
-------------------------------------------------------------------------------
<S>                                               <C>              <C>
 Percentage of Ownership                                  26%              26%
 Date Acquired                                          2/97             2/97
 Acreage                                                  16               33
 Number of Spaces                                        123              162
 Monthly Rents (1)                                $      220       $      202
 Occupancy Level:
   December 31, 1996                                      81%              81%
 Real Estate Taxes                                $   17,400       $   23,600
 Federal Tax Basis (3)                            $  582,900       $  752,100
 Mortgage Information:
   Balance payable                                $3,040,000               (4)
   Interest rate                                        8.38%              (4)
   Amortization period                              24 years               (4)
   Maturity date                                        3/06               (4)
   Balance due at maturity                        $2,583,200               (4)
</TABLE>

(1)      Average rental rates in effect on December 31, 1997.

(2)      Same mortgage note payable as North Glen.

(3)      For income tax purposes, the properties and their components are
         depreciated using both straight-line and accelerated methods over
         useful lives ranging from 5 to 40 years.

(4)      Same mortgage note payable as Apache East.


                                       6
<PAGE>   7
Item 3. LEGAL PROCEEDINGS

There are no pending legal proceedings, other than ordinary routine litigation
incidental to the business, to which the Partnership is a party or of which any
of its properties is the subject.

Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

There were no matters submitted to security holders for a vote during the fourth
quarter of the fiscal year covered by this report.

                                     PART II

Item 5. MARKET FOR THE PARTNERSHIP'S UNITS AND RELATED SECURITY HOLDER
        MATTERS

A public market for the Partnership's units does not exist and is not likely to
develop. As of December 31, 1997, there were approximately 1,800 persons holding
an aggregate of 156,641 units.

Cash distributions to limited partners paid since December 31, 1995 are as
follows:

<TABLE>
<CAPTION>
                                                                  Per $1,000
Date Paid                             Amount (1)                Invested (2)
---------                             ----------                ------------
<S>                                   <C>                       <C>
December 1997                            $99,600                       $6.25
November 1997                            $99,600                       $6.25
October 1997                             $98,700                       $6.19
September 1997                           $98,700                       $6.19
August 1997                              $98,700                       $6.19
July 1997                                $98,700                       $6.19
June 1997                                $98,700                       $6.19
May 1997                                 $98,700                       $6.19
April 1997                               $98,700                       $6.19
March 1997                               $98,700                       $6.19
February 1997                            $98,700                       $6.19
January 1997                             $98,700                       $6.19
--------------------------------------------------------------------------------
December 1996                            $98,700                       $6.19
November 1996                            $98,700                       $6.19
October 1996                             $98,700                       $6.19
September 1996                           $98,700                       $6.19
August 1996                              $95,500                       $5.99
July 1996                                $95,500                       $5.99
June 1996                                $95,500                       $5.99
May 1996                                 $95,500                       $5.99
April 1996                               $95,500                       $5.99
March 1996                               $95,500                       $5.99
February 1996                            $95,500                       $5.99
January 1996                             $95,500                       $5.99
</TABLE>

(1)      Amounts exclude General Partner participation.
(2)      Computed based on $15,933,200 original investment.




                                       7
<PAGE>   8
Cash distributions paid to the General Partners since December 31, 1995 were
$23,600. The General Partners expect that the Partnership will make cash
distributions in the future.

Item 6.  MANAGEMENT'S DISCUSSION AND ANALYSIS

The following discussion should be read in conjunction with the financial
statements and Notes thereto included elsewhere in this Annual Report. Certain
statements in this discussion constitute "forward-looking statements" within the
meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Such
forward-looking statements involve known and unknown risks, uncertainties and
other factors which may cause the actual results, performance or achievements of
the partnership or industry to be materially different from any future results,
performance or achievements expressed or implied by such forward-looking
statements.

Liquidity and Capital Resources

The Partnership's primary sources of cash during the years ended December 31,
1997 and 1996 were from the operations of its investment properties and cash
distributions from joint ventures and limited partnerships. The Partnership's
primary uses of cash during the same period were for the purchases of interests
in investment properties, debt service and cash distributions to partners.

In February 1995, through a proxy vote of the limited partners, an amendment to
the Agreement of Limited Partnership was approved permitting the financing of
currently owned manufactured home communities and the reinvestment of financing
proceeds into newly acquired manufactured home communities to be purchased with
permanent mortgage financing. Overall Partnership mortgage financing will not
exceed 55% of the value of existing and newly acquired properties.

Subsequent to the approval of the financing and reinvestment proposal discussed
above, the Partnership obtained two loans collateralized by interests in
currently owned manufactured home communities. The proceeds from these loans
were used as partial consideration to purchase interests in six additional
manufactured home communities.
The remaining consideration was obtained from permanent mortgage financing.

All of the Partnership's loans, except the Village Glen loan, are payable in
monthly interest only installments bearing interest at 90 day LIBOR plus 2.95%
(8.97% at December 31, 1997) and are due in 2002. The Partnership and the
affiliated entities are contingently liable for the full amounts of the loans
obtained jointly. In March 1996, the Village Glen loan, which originally had the
same terms as the other Partnership loans, was converted to a fixed rate loan
bearing interest at 8.82%. All other terms remained the same.

In February 1997, the Partnership purchased a 26% interest in the Apache East
Estates and Denali Park Estates manufactured home communities located in
Phoenix, Arizona. The remaining interests in the communities were purchased by
affiliated entities. The Partnership's cost of its equity interest in the
communities was $570,400. In connection with the purchase, the joint venture
obtained a $3,040,000 loan, collateralized by the communities. The Partnership's
share of this loan is $790,400. In addition, the Partnership assumed a $500,000
note payable to the seller. The $3,040,000 loan initially bears interest at
8.375%. In March 2000 and March 2003, the interest rate adjusts to the yield on
the 3 year Treasury Note plus 2.2%. The loan is due in March 2006. The $500,000
loan bears interest at 8% and is due in February 1998.




                                       8
<PAGE>   9

At December 31, 1997, the Partnership's total mortgage debt, including its
proportionate share of joint venture debt, was $14,852,100, consisting of
$1,500,000 of fixed rate debt and $13,352,100 of variable rate debt. The average
rate of interest on the fixed and variable rate debt was 8.8% and 8.9%,
respectively, at December 31, 1997.

In February 1997, the Partnership received a $370,000 payment on the note
receivable from general partners. The proceed were used to paydown the $500,000
note payable to the seller of the Apache East and Denali Park communities.

The future sources of cash for the Partnership will be provided from property
operations, cash reserves, and ultimately from the sale of property. The future
uses of cash will be for Partnership administration, capital expenditures, cash
distributions to partners and debt service. The General Partners believe that
the future sources of cash are sufficient to meet the working capital
requirements of the Partnership for the foreseeable future.

Results of Operations

The Partnership realized net income of $197,800 and $353,400 for the years ended
December 31, 1997 and 1996, respectively. Net income per limited partnership
unit was $1.24 in 1997 compared to $2.21 in 1996.

The overall occupancy of the Partnership's five wholly owned properties was 98%
at December 31, 1997 comparable to 98% at December 31, 1996. Recent rent
increases implemented at wholly owned properties include $10 and $13 per month
at North Glen effective July 1997 and July 1996, respectively; $9 and $10 per
month at Kings and Queens and Village Glen, respectively, effective January
1997; and $12 per month at Lucerne effective March 1997.

Equity in earnings of joint ventures represents the Partnership's share of the
net income of the Carefree Village, the Long Lake Village and Garden Walk
communities and since there purchase, the Apache and Denali Park communities.
Equity in earnings of joint ventures decreased from $264,600 in 1996 to $156,300
in 1997. The overall occupancy of the Partnership's five joint venture
properties decreased from 89% at December 31, 1996 to 84% at December 31, 1997.
The overall decrease in occupancy is due primarily to Long Lake Village, where
occupancy decreased from 87% at December 31, 1996 to 81% at December 31, 1997.
The decrease is also attributable to the losses recorded at Apache East and
Denali Park in 1997.

Interest income decreased from $81,700 in 1996 to $40,400 in 1997 due mainly to
lower cash balances maintained by the Partnership.



                                       9
<PAGE>   10

Interest expense increased from $658,800 in 1996 to $693,700 in 1997 due to the
loan obtained by the partnership in February 1997, as discussed previously.

General and administrative expenses decreased slightly from $109,600 in 1996 to
$106,400 in 1997.

New Accounting Standards

In 1997, the Partnership adopted SFAS No. 128, "Earnings Per Share." This
accounting standard specifies new computation, presentation and disclosure
requirements for earnings per share to be applied retroactively. Among other
things, SFAS No. 128 requires presentation of basic and diluted earnings per
share on the face of the income statement. The adoption of SFAS 128 had no
effect on the per unit results reported.

Year 2000 Compliance

The Partnership is currently engaged in a review with its software vendors to
ensure all systems are modified for year 2000 compliance. Since all systems are
owned and maintained by third party vendors, the Partnership believes that the
additional cost for compliance will not be material to future results of
operations, financial condition or cash flows of the Partnership.




                                       10
<PAGE>   11


Item 7.           FINANCIAL STATEMENTS

The following financial statements are filed as a part of this report:

<TABLE>
<CAPTION>
                                                                                Page
                                                                                ----
<S>                                                                              <C>
Report of Independent Accountants                                                12

Balance Sheet as of December 31, 1997                                            14

Statements of Operations for the years ended
 December 31, 1997 and 1996                                                      15

Statements of Partners' Equity for the years
 ended December 31, 1997 and 1996                                                16

Statements of Cash Flows for the years ended
 December 31, 1997 and 1996                                                      17

Notes to Financial Statements                                                    18
</TABLE>






                                       11
<PAGE>   12

REPORT OF INDEPENDENT ACCOUNTANTS



To the Partners
Windsor Park Properties 7
(A California Limited Partnership)
Englewood, Colorado

We have audited the accompanying balance sheet of Windsor Park Properties 7, a
California Limited Partnership, (the Partnership) as of December 31, 1997 and
the related statements of operations, partners' equity and cash flows for the
year ended December 31, 1997. These financial statements are the responsibility
of the General Partners. Our responsibility is to express an opinion on these
financial statements based on our audit.

We conducted our audit in accordance with generally accepted auditing standards.
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
management, as well as evaluating the overall financial statement presentation.
We believe that our audit provides 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 Windsor Park Properties 7 as of
December 31, 1997 and the results of its operations and its cash flows for the
year ended December 31, 1997 in conformity with generally accepted accounting
principles.



Coopers & Lybrand L.L.P.

Denver, Colorado
March 30, 1998



                                       12
<PAGE>   13
REPORT OF INDEPENDENT ACCOUNTANTS



The Partners
Windsor Park Properties 7
(A California Limited Partnership)
Escondido, California




We have audited the accompanying statements of operations, partners' equity and
cash flows of Windsor Park Properties 7 (the Partnership) for the year ended
December 31, 1996. 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 audit.

We conducted our audit in accordance with generally accepted auditing standards.
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
management, as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.

In our opinion, such financial statements present fairly, in all material
respects, the results of operations of Windsor Park Properties 7 and its cash
flows for the year ended December 31, 1996 in conformity with generally accepted
accounting principles.


Deloitte & Touche LLP

Costa Mesa, California
February 28, 1997





                                       13
<PAGE>   14
                            WINDSOR PARK PROPERTIES 7
                       (A California Limited Partnership)
                                  BALANCE SHEET




<TABLE>
<CAPTION>
                                                                December 31, 1997
                                                                -----------------
<S>                                                              <C>
ASSETS

 Property held for investment, net                               $    11,259,400
 Investments in joint ventures and limited partnerships                5,203,800
 Cash and cash equivalents                                               478,700
 Note receivable from general partners
 Deferred financing costs, net                                           196,000
 Other assets                                                             59,200
                                                                 ---------------

 Total Assets                                                    $    17,197,100
                                                                 ===============

 LIABILITIES AND PARTNERS' EQUITY

 Liabilities:
   Mortgage notes payable                                        $     7,420,000
   Accounts payable                                                       24,700
   Accrued expenses                                                       60,000
   Due to General Partners and affiliates                                 98,700
   Tenant deposits and other liabilities                                 115,200
                                                                 ---------------

 Total Liabilities                                                     7,718,600
                                                                 ---------------

 Partners' equity:
   Limited partners                                                    9,518,700
   General partners                                                      (40,200)
                                                                 ---------------

                                                                       9,478,500
                                                                 ---------------

 Total Liabilities and Partners' Equity                          $    17,197,100
                                                                 ===============
</TABLE>


                See accompanying notes to financial statements.

                                       14
<PAGE>   15



                            WINDSOR PARK PROPERTIES 7
                       (A California Limited Partnership)
                            STATEMENTS OF OPERATIONS



<TABLE>
<CAPTION>
                                                                                    For The Year Ended December 31,
                                                                                    -------------------------------
                                                                                         1997              1996
                                                                                    -------------     -------------
<S>                                                                                 <C>               <C>
 REVENUES

 Rent and utilities                                                                 $   2,475,500     $   2,358,200
 Equity in earnings of joint ventures and limited partnerships                            156,300           264,400
 Interest                                                                                  40,400            81,700
 Other                                                                                     32,300            23,700
                                                                                    -------------     -------------

                                                                                        2,704,500         2,728,000
                                                                                    -------------     -------------


 COSTS AND EXPENSES

 Property operating                                                                     1,105,600         1,024,100
 Interest                                                                                 693,700           658,800
 Depreciation and amortization                                                            601,000           582,100
 General and administrative:
   Related parties                                                                         70,000            73,700
   Other                                                                                   36,400            35,900
                                                                                    -------------     -------------

                                                                                        2,506,700         2,374,600
                                                                                    -------------     -------------

 Net income                                                                         $     197,800     $     353,400
                                                                                    =============     =============

 Net income - general partners                                                      $       2,000     $       3,500
                                                                                    =============     =============

 Net income - limited partners                                                      $     195,800     $     349,900
                                                                                    =============     =============

 Basic and dilutive earnings per limited partnership unit                           $        1.24     $        2.21
                                                                                    =============     =============
</TABLE>


                See accompanying notes to financial statements.

                                       15
<PAGE>   16

                            WINDSOR PARK PROPERTIES 7
                       (A California Limited Partnership)
                         STATEMENTS OF PARTNERS' EQUITY
                 FOR THE YEARS ENDED DECEMBER 31, 1997 AND 1996



<TABLE>
<CAPTION>
                                       General Partners     Limited Partners          Total
                                       ----------------     ----------------     ---------------
<S>                                    <C>                  <C>                  <C>
 Balance at December 31, 1995          $       (22,100)     $    11,427,900      $    11,405,800

 Cash distributions                            (11,700)          (1,158,800)          (1,170,500)

 Net income                                      3,500              349,900              353,400

 Repurchase of limited partnership
   Units                                          --                (16,500)             (16,500)
                                       ---------------      ---------------      ---------------
 Balance at December 31, 1996                  (30,300)          10,602,500           10,572,200
                                       ---------------      ---------------      ---------------
 Cash distributions                            (11,900)          (1,186,200)          (1,198,100)

 Net income                                      2,000              195,800              197,800

 Repurchase of limited partnership
   Units                                          --                (93,400)             (93,400)
                                       ---------------      ---------------      ---------------

 Balance at December 31, 1996          $       (40,200)     $     9,518,700      $     9,478,500
                                       ===============      ===============      ===============
</TABLE>


                See accompanying notes to financial statements.

                                       16
<PAGE>   17

                            WINDSOR PARK PROPERTIES 7
                       (A California Limited Partnership)
                            STATEMENTS OF CASH FLOWS

<TABLE>
<CAPTION>
                                                                 For The Year Ended December 31,
                                                                ----------------------------------
                                                                      1997                1996
                                                                --------------      --------------
 <S>                                                             <C>                 <C>
 Cash flows from operating activities:
 Net income                                                    $      197,800      $      353,400
   Adjustments to reconcile net income to net cash
     Provided by operating activities:
        Depreciation and amortization                                  601,000             582,100
        Equity in earnings of joint ventures and
          limited partnerships                                        (156,300)           (264,400)
        Joint ventures' and limited partnerships
          cash distributions                                           156,300             264,400
        Loss (gain) on sale of property held for investment
          And other assets                                              (2,900)              5,600
        Amortization of deferred financing costs                        42,400              42,500

 Changes in operating assets and liabilities:
   Other assets                                                         17,200              37,200
   Accounts payable                                                     (1,500)             (6,800)
   Due to General Partners and affiliates                               98,700
   Accrued expenses                                                    (58,400)             15,200
   Tenant deposits and other liabilities                               (10,500)                900
                                                                --------------      --------------

 Net cash provided by operating activities                             883,800           1,030,100
                                                                --------------      --------------

 Cash flows from investing activities:
   Increase in property held for investment                           (172,700)           (329,000)
   Joint ventures' and limited partnerships
     cash distributions                                                283,400             173,300
   Proceeds from sale of property held for investment
     and other assets                                                   28,200              97,400
   Proceeds from Note receivable from general partners                 653,300              34,800
   Investments in joint ventures and limited partnerships             (116,900)

                                                                --------------      --------------

 Net cash Provided by (used in) investing activities                   675,300             (23,500)
                                                                --------------      --------------

 Cash flows from financing activities:
    Cash Distributions                                              (1,198,100)         (1,168,300)
    Repurchase of limited partnership units                            (93,400)            (16,500)
    Payment of deferred financing costs                                   --                  (500)
    Payment of mortgage note payable                                  (300,000)
                                                                --------------      --------------

 Net cash used in financing activities                              (1,591,500)         (1,185,300)
                                                                --------------      --------------

 Net decrease in cash and cash equivalents                             (32,400)           (178,700)

 Cash and cash equivalents at beginning of year                        511,100             689,800
                                                                --------------      --------------

 Cash and cash equivalents at end of year                       $      478,700      $      511,100
                                                                ==============      ==============
</TABLE>


                See accompanying notes to financial statements.


                                       17
<PAGE>   18

                            WINDSOR PARK PROPERTIES 7
                       (A California Limited Partnership)
                          NOTES TO FINANCIAL STATEMENTS


NOTE 1.  THE PARTNERSHIP AND A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The Partnership

Windsor Park Properties 7, A California Limited Partnership (the Partnership),
was formed in June 1989 for the purpose of acquiring and holding existing
manufactured home communities for investment. The General Partners of the
Partnership are The Windsor Corporation ("TWC"), a California corporation, and
John A. Coseo, Jr. In September 1997, Chateau Communities, Inc. (Chateau), a
publicly held real estate investment trust, purchased 100% of the shares of the
Windsor Corporation.

The Partnership was funded through a public offering of 250,000 limited
partnership units at $100 per unit, which commenced in March 1990 and terminated
in January 1992. The Partnership term is set to expire on December 31, 2005;
however, the Partnership may either be dissolved earlier or extended under
certain circumstances. The Partnership may be extended at the recommendation of
the General Partners with approval of a majority of the Limited Partners.

The following is a summary of the Partnership's significant accounting policies:

Property Held for Investment

Property held for investment is recorded at the lower of cost or net realizable
value and depreciated over various estimated useful lives (building and
improvements - 5 to 20 years; fixtures and equipment - 3 to 5 years) using the
straight-line method. When assets are sold or otherwise disposed of, the cost
and related accumulated depreciation are removed from the accounts, and any gain
or loss is included in net income. Repairs and maintenance are charged to
operations as incurred.

In 1996, the Partnership adopted Statement of Financial Accounting Standards No.
121 (SFAS 121), "Accounting for the Impairment of Long-Lived Assets and Assets
to be Disposed of." SFAS 121 requires that long-lived assets be reviewed for
impairment whenever events or changes in circumstances indicate that their
carrying value may not be recoverable. The adoption of SFAS 121 had no effect on
reported results in 1996.

For the years ended December 31, 1997 and 1996, permanent impairment conditions
did not exist at the Partnership's property.

Investments In Joint Ventures and Limited Partnerships

The investments in joint ventures are accounted for utilizing the equity method
as the properties are subject to joint control requiring approval or mutual
agreement of the investees. The investment in Limited Partnerships is also
accounted for utilizing the equity method as the Limited Partners have
significant rights.




                                       18
<PAGE>   19
Financing Costs

Financing costs are amortized to interest expense over the life of the note
utilizing a method, which approximates the effective interest method.

Income Taxes

Under provisions of the Internal Revenue Code and the California Revenue and
Taxation Code, partnerships are generally not subject to income taxes. The tax
effect of any income or loss accrues to the individual partners.

Basic and Dilutive Earnings per Limited Partnership Unit

Basic and dilutive earnings per limited partnership unit is calculated based on
the weighted average number of limited partnership units outstanding during the
year and the net income allocated, which is the same as income available, to the
limited partners. Basic and dilutive earnings per limited partnership unit are
the same, as the Partnership has no dilutive securities. The weighted average
number of limited partnership units outstanding during the years ended December
31, 1997 and 1996 was 157,469 and 158,026, respectively.

In 1997, the Partnership adopted Statement of Financial Accounting Standards No.
128 (SFAS 128), "Earnings Per Share." This accounting standard specifies new
computation, presentation, and disclosure requirements for earnings per share to
be applied retroactively. Among other things, SFAS 128 requires presentation of
basic and diluted earnings per share on the face of the income statement. The
adoption of SFAS 128 had no effect on the per unit results previously reported.

Statements of Cash Flows

For purposes of the statements of cash flows, the Partnership considers all
highly-liquid investments purchased with an original maturity of three months or
less to be cash equivalents.

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 reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.

Revenue Recognition

Rental income is recognized when earned and due from residents. The leases
entered into by residents for the rental of a site are generally for terms not
longer than one year and renewable upon the consent of both parties or, in some
instances, as provided by statute.




                                       19
<PAGE>   20

NOTE 2.  PARTNERSHIP AGREEMENT

In accordance with the Partnership Agreement, the maximum liability of the
Limited Partners is the amount of their capital contributions. The number of
limited partnership units outstanding at December 31, 1997 and 1996 was 156,641
and 157,865, respectively, which represented capital contributions of
$15,664,100 and $15,786,500, respectively. During the years ended December 31,
1997 and 1996, the Partnership repurchased 1,224 units and 275 units,
respectively, for $93,400 and $16,500, respectively. The General Partners owned
91 units at both December 31, 1997 and 1996.

The General Partners are entitled to receive from the Partnership various fees
and compensation which are summarized as follows:

Operational Stage

The profits, losses and cash distributions of the Partnership during the
operational stage are allocated 99% to the Limited Partners and 1% to the
General Partners. During the years ended December 31, 1997 and 1996, the General
Partners received cash distributions from operations of $11,900 and $11,700,
respectively.

TWC receives a management fee which is based on a percent of actual gross
receipts collected from the operations of the properties. TWC receives 2.5% each
for Lucerne and Village Glen communities. For the years ended December 31, 1997
and 1996, the amounts paid to TWC was $18,700 and $18,100, respectively.

The Partnership reimburses TWC for certain direct expenses, and employee,
executive and administrative time which are incurred on the Partnership's
behalf. The Partnership was charged $82,000 and $91,200 for such costs during
the years ended December 31, 1997 and 1996, respectively. These costs are
included in property operating and general and administrative expenses in the
accompanying statements of operations. As of December 31, 1997, the partnership
owed TWC $9,100.

Liquidation Stage

During the Partnership's liquidation stage, the total compensation paid to all
persons for the sale of Partnership properties is limited to competitive real
estate commissions, not to exceed 6% of the contract price for the sale of the
property. The General Partners may receive up to one-half of the competitive
real estate commission, not to exceed 3%, if they provide a substantial amount
of services in the sales effort. The General Partners' commission is
subordinated to the Limited Partners receiving a 6% cumulative, non-compounded,
annual return on their original invested capital.

The General Partners also receive 15% of profits, losses and cash distributions
from the sale or financing of Partnership properties after the Limited Partners
have received a 9% cumulative, non-compounded, annual return on their original
invested capital.




                                       20
<PAGE>   21

NOTE 3.  PROPERTY HELD FOR INVESTMENT

Property held for investment consists of five manufactured home communities
summarized as follows:

<TABLE>
<CAPTION>
Name of Property             Date Acquired                   Location
----------------             -------------                   --------
<S>                          <C>                             <C>
North Glen                   October 4, 1991                 Westfield, Indiana
Kings & Queens               February 4, 1992                Lakeland, Florida
The Hills                    December 24, 1992               Richland, Washington
Lucerne                      June 23, 1995                   Winter Haven, Florida
Village Glen                 October 3, 1995                 Melbourne, Florida
</TABLE>

<TABLE>
<CAPTION>
                                                                December 31, 1997
                                                                -----------------
<S>                                                              <C>
 Land                                                            $     2,734,100
 Buildings and improvements                                           10,847,800
 Fixtures and equipment                                                  187,800
                                                                 ---------------

                                                                      13,769,700
 Less accumulated depreciation                                        (2,510,300)
                                                                 ---------------

                                                                 $    11,259,400
                                                                 ===============
</TABLE>

NOTE 4.  INVESTMENTS IN JOINT VENTURES AND LIMITED PARTNERSHIPS

The Partnership's investments in joint ventures and limited partnerships consist
of interests in five manufactured home communities summarized as follows:

<TABLE>
<CAPTION>
                        Ownership
Name of Property        Percentage         Date Acquired            Location
----------------        ----------         -------------            --------
<S>                     <C>                <C>                      <C>
Carefree Village           56%             July 31, 1990            Tampa, Florida
Long Lake Village          60%             June 30, 1995            West Palm Beach, Florida
Garden Walk                69%             August 15, 1995          Palm Beach Gardens, Florida
Apache East                26%             February 18, 1997        Phoenix, Arizona
Denali Park                26%             February 18, 1997        Phoenix, Arizona
</TABLE>

The remaining interests in the communities are owned by affiliated entities.

In February 1997, the Partnership purchased a 26% interest in the Apache East
Estates and Denali Park Estates manufactured home communities located in
Phoenix, Arizona. The remaining interests in the communities were purchased by
affiliated entities. The Partnership's cost of its equity interest in the
communities was $570,400. In connection with the purchase, the limited
partnership obtained a $3,040,000 loan, collateralized by the communities. The
Partnership's share of this loan is $790,400. In addition, the Partnership
assumed a $500,000 note payable to the seller.



                                       21
<PAGE>   22
The combined condensed financial position and results of operations of the joint
ventures and limited partnerships (including Apache East and Denali Park since
their purchase) are as follows:

<TABLE>
<CAPTION>
                                                                  December 31, 1997
                                                                  -----------------
<S>                                                                <C>
 Financial Position

 Property held for investment, net                                 $    22,717,900
 Cash                                                                      188,700
 Other assets                                                              664,000
                                                                   ---------------

     Total assets                                                  $    23,570,600
                                                                   ===============


 Mortgage notes payable                                            $    13,819,800
 Accounts payable                                                           66,500
 Other liabilities                                                         101,900
                                                                   ---------------

     Total liabilities                                                  13,988,200

 Partners' equity                                                        9,582,400
                                                                   ---------------

                                                                   $    23,570,600
                                                                   ===============
</TABLE>




                                       22
<PAGE>   23
<TABLE>
<CAPTION>
                                             For the Year Ended December 31
                                          -------------------------------------
                                               1997                   1996
                                          --------------         --------------
<S>                                       <C>                    <C>
 Results of Operations

 Property revenues                        $    4,163,400         $    3,675,900
                                          --------------         --------------

 Expenses:
   Property operating                          2,101,500              1,767,400
   Interest                                    1,200,700                970,700
   Depreciation                                  715,900                539,100
                                          --------------         --------------

                                               4,018,100              3,277,200
                                          --------------         --------------

 Net Income                               $      145,300         $      398,700
                                          ==============         ==============
</TABLE>

NOTE 5.  NOTE RECEIVABLE FROM GENERAL PARTNERS

Through September, 1997, the Partnership had a note receivable from General
Partners which represented excess organization and offering costs incurred by
the Partnership and bore interest at the current partnership distribution rate
(7.5% at December 31, 1997) or local bank money market rates, if higher. The
note was due on demand but in no event later than the termination of the
Partnership. The General Partners paid the note in September 1997. The note was
collateralized by an equitable lien on securities owned by TWC and all proceeds
from real estate commissions payable to the General Partners from the sale of
Partnership properties. The note was also personally guaranteed by John A.
Coseo, Jr., General Partner. During the years ended December 31, 1997 and 1996,
the Partnership earned interest of $18,700 and $49,300, respectively, from the
note.

NOTE 6.  MORTGAGE NOTES PAYABLE

Mortgage notes payable consist of the following at December 31, 1997:

<TABLE>
<S>                                                                                              <C>
 Notes payable, collateralized by property held for investment, payable in
 monthly interest only installments bearing interest at 90-day LIBOR plus 2.95%
 (8.97% at December 31, 1997),
 due in 2002                                                                                     $   5,720,000

 Note payable, collateralized by property held for investment, payable in monthly
 interest only installments bearing interest
 at a fixed rate of 8.82%, due in 2002                                                               1,500,000

 Note payable collateralized by property held for investment, principal and accrued interest
 (8% per annum) due and payable in February 1998                                                       200,000
                                                                                                 -------------

                                                                                                 $   7,420,000
                                                                                                 =============
</TABLE>

In March 1996, the $1,500,000 mortgage note payable was converted from a
variable rate loan bearing interest at 90-day LIBOR plus 2.95% to a fixed rate
note bearing interest at 8.82%.



                                       23
<PAGE>   24

NOTE 7.  DISTRIBUTIONS TO LIMITED PARTNERS

Distributions to limited partners in excess of net income allocated to limited
partners are considered a return of capital. A breakdown of cash distributions
to the Limited Partners for the years ended December 31, 1997 and 1996 follows:

<TABLE>
<CAPTION>
                                      1997                              1996
                         -----------------------------     -----------------------------
                                               Per                              Per
                            Amount            Unit            Amount            Unit
                         ------------     ------------     ------------     ------------
<S>                      <C>              <C>              <C>              <C>
 Net income
  - Limited Partners     $    195,800     $       1.24     $    349,900     $       2.21
 Return of capital            990,400             6.29          808,900             5.12
                         ------------     ------------     ------------     ------------

                         $  1,186,200     $       7.53     $  1,158,800     $       7.33
                         ============     ============     ============     ============
</TABLE>

NOTE 8.  FAIR VALUE OF FINANCIAL INSTRUMENTS

The carrying amounts of cash equivalents, accounts payable, accrued expenses and
other liabilities approximate fair value because of the short maturity of the
financial instruments. The General Partners believe the carrying value of the
mortgage notes payable approximates fair value based upon interest rates
available for the issuance of debt with similar terms and maturities. The note
receivable from general partners bears interest at the current Partnership
distribution rate.

NOTE 9.  CONTINGENCIES

The Partnership, as an owner of real estate, is subject to various environmental
laws. Compliance by the Partnership with existing laws has not had a material
effect on the results of operations, financial condition or cash flows of the
Partnership, nor does management believe it will have a material impact in the
future.

NOTE 10.  RELATED PARTY TRANSACTION

Chateau and/or its predecessor have been providing property management services
to the Partnership since 1992. For this service, Chateau is paid a property
management fee, which is based on a percentage of actual gross receipts of the
properties. The total management fees paid to Chateau were $111,300 and $100,100
for the years ended December 31, 1997 and 1996, respectively. In addition
certain direct expenses are paid by Chateau on behalf of the Partnership and
then reimbursed by the Partnership. These amounts were $263,900 and $242,300 for
the years ended December 31, 1997 and 1996, respectively.





                                       24
<PAGE>   25
NOTE 11.  SUPPLEMENTAL CASH FLOW INFORMATION

<TABLE>
<CAPTION>
                                                           1997             1996
                                                       ------------     ------------
<S>                                                    <C>              <C>
 Supplemental disclosure of cash flow information:
   Cash paid during the year for:
     Interest (none capitalized)                       $    653,200     $    621,600
                                                       ============     ============
</TABLE>

Item 8.  CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
         FINANCIAL DISCLOSURE

There were no disagreements over accounting or financial disclosure with the
independent accountants for the Partnership.



                                       25
<PAGE>   26

                                    PART III

Item 9.  DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS, AND CONTROL PERSONS;
         COMPLIANCE WITH SECTION 16(a) OF THE EXCHANGE ACT

The general partners of the Partnership are The Windsor Corporation, and John A.
Coseo, Jr.

In July 1994, The Windsor Corporation merged into Windsor Group, Inc., a
majority-owned subsidiary. In conjunction with the merger, Windsor Group, Inc.
changed its name to The Windsor Corporation, hereafter, ("The Windsor
Corporation").

These utilities were incorporated in 1977 and 1992, respectively, to engage in
the real estate syndication business. Historically, they have concentrated
solely on the acquisition, management, and sale of fully-developed manufactured
home communities through the investment programs which they sponsor.

The executive officers of The Windsor Corporation do not receive direct
compensation from the Partnership in these capacities and are only required to
spend such time on the Partnership's affairs as is deemed necessary. Substantial
amounts of these officers' time is spent on matters unrelated to the
Partnership.

The names, ages, and nature of the positions held by the directors and executive
officers of The Windsor Corporation follow:

<TABLE>
<CAPTION>
                Name                     Age            Office
         ------------------------      -------     -----------------------
<S>                                       <C>      <C>
         Steven G. Waite                  43       President and Director
         Gary P. McDaniel                 52       Director
         C.G. Kellogg                     54       Director
</TABLE>

A brief background of the general partners, directors and certain executive
officers of The Windsor Corporation follows.

Steven G. Waite (43) joined The Windsor Corporation in August 1997 as President.
Since 1991, until his involvement with Windsor, Mr. Waite served as Vice
President/General Manager of the Communities Division at Clayton Homes. He was
responsible for the original start up of this division, and subsequently built
it into a successful and profitable area of Clayton Homes, expanding from eight
communities to 67 communities. In addition, Mr. Waite has over eight years of
experience in the manufactured home community-lending arena. He earned a
Bachelor of Arts degree from the University of Colorado and a Master of Business
Administration from the University of Alabama. Mr. Waite is active in the
Manufactured Housing Institute.




                                       26
<PAGE>   27
Gary P. McDaniel (52), a director of The Windsor Corporation has been Chief
Executive Officer and a director of Chateau Communities, Inc. ("Chateau") since
February 1997. He served as the Chairman of the Board, President and Chief
Executive Officer for ROC Communities, Inc., which was merged with Chateau in
1997. Since 1993 he has been an executive and shareholder of ROC and its
predecessors since 1979, and has been active in the manufactured home industry
since 1972. Mr. McDaniel is also a Trustee of Windsor Real Estate Investment
Trust 8, which is advised by The Windsor Corporation. Mr. McDaniel has been
active in several state and national manufactured home associations, including
associations in Florida and Colorado. In 1996, he was named "Industry Person of
the Year" by the National Manufactured Housing Industry Association. Mr.
McDaniel is on the Board of Directors of the Manufactured Housing Institute. He
is a graduate of the University of Wyoming and served as a Captain in the United
States Air Force.

C.G. ("Jeff") Kellogg (54) has been President and a director of Chateau since
its inception and was Chief Executive Officer of Chateau from its inception to
February 1997. For the five years preceding the formation of Chateau, Mr.
Kellogg was President and Chief Operating Officer of Chateau Estates. He is
extremely active in local and national industry associations, often in
leadership positions. Mr. Kellogg is a past President of the Michigan
Manufactured Housing Association and served on the Manufactured Housing
Institute's Community Operations Committee. He is a graduate of Michigan
Technological University with a B.S. in Civil Engineering.

John A. Coseo, Jr. (58), the other general partner of the Partnership  was the
founder of The Windsor Corporation in 1977 and has been actively involved in all
facets of the manufactured housing business since that time. Mr. Coseo resigned
from his positions as a director and executive officer of the Windsor
Corporation in 1997. From 1979 to the present, Mr. Coseo has acted as general
partner or advisor in the acquisition and management of 56 manufactured home
communities throughout the United States. Mr. Coseo is a general partner of
seven limited partnerships which have registered their securities under the
Securities and Exchange Act of 1934.

Item 10.    EXECUTIVE COMPENSATION

The Partnership has not paid and does not propose to pay any remuneration or
retirement benefits to John A. Coseo, Jr. or the directors or executive officers
of The Windsor Corporation. Refer to Item 12 (Certain Relationships and Related
Transactions) for cash distributions and expense reimbursements paid to The
Windsor Corporation by the Partnership.


Item 11.    SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

(a)  Security Ownership of Certain Beneficial Owners

         No person is known by the Partnership to be the beneficial owner of
         more than 5% of the limited partnership units.

(b)  Security Ownership of Management





                                       27
<PAGE>   28
         The following table presents certain information regarding the number
         of Units owned, directly or indirectly, by (i) each General Partner and
         (ii) all General Partners as a group as of December 31, 1997:


<TABLE>
<CAPTION>
                                                            Amount and Nature of      Percent of Class
Title of Class              Beneficial Owner                Beneficial Ownership
--------------------------------------------------------------------------------------------------------
<S>                         <C>                              <C>                      <C>
Units of Limited            John A. Coseo, Jr.,
  Partnership Interest        a General Partner                      91                    .058%
                                                                   ----                   -----

Units of Limited            All General Partners as
  Partnership Interest        a group                                91                    .058%
                                                                   ====                   =====
</TABLE>

Item 12.          CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

The following table reflects all compensation accrued or paid to the General
Partners during the years ended December 31, 1997 and 1996.

<TABLE>
<CAPTION>
Form of Compensation and Entity Receiving                        1997                    1996
                                                           ------------------       ---------------
<S>                                                          <C>                    <C>
Expense reimbursement - The Windsor Corporation              $        82,000        $       91,200
Property management fee - The Windsor Corporation            $        18.700        $       18,100
Cash distributions - The Windsor Corporation                 $        11,900        $       11,700
</TABLE>



                                       28
<PAGE>   29



Item 13. EXHIBITS AND REPORTS ON FORM 8-K

         (a)      Exhibits and Index of Exhibits

                  (3) - Certificate and Agreement of Limited Partnership filed
                  as Exhibit A to Registration Statement No. 33-23183 and
                  incorporated herein by reference.

                  (27) - Financial Data Schedule

         (b)      Reports on Form 8-K

                  There were no reports on Form 8-K filed during the last
                  quarter of the period covered by this Form 10-KSB.



                                       29
<PAGE>   30
                                   SIGNATURES

         Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized on this 31st day of
March, 1998.


                                     WINDSOR PARK PROPERTIES 7
                                     A California Limited Partnership
                                     By: THE WINDSOR CORPORATION

                                     By:   /s/  Steven G. Waite
                                        -------------------------------------
                                         STEVEN G. WAITE
                                         President

         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 dates indicated.


<TABLE>
<CAPTION>
Signature                       Title                                       Date
---------                       -----                                       ----
<S>                             <C>                                         <C>
                                President of The Windsor Corporation, a     March 26, 1998
/s/ Steven G. Waite             general partner
------------------------
STEVEN G. WAITE


/s/Gary P. McDaniel             Director of The Windsor Corporation,        March 31, 1998
------------------------        a general partner
GARY P. MCDANIEL


/s/C.G. Kellogg                 Director of The Windsor Corporation,        March 31, 1998
------------------------        a general partner
C.G. KELLOGG


/s/John A. Coseo, Jr.           General Partner                             March 31, 1998
------------------------
JOHN A. COSEO, JR.
</TABLE>




                                       30
<PAGE>   31

                               INDEX TO EXHIBITS

<TABLE>
<CAPTION>
        EXHIBIT
         NUMBER   DESCRIPTION
<S>        <C>
           (3) -  Certificate and Agreement of Limited Partnership filed
                  as Exhibit A to Registration Statement No. 33-23183 and
                  incorporated herein by reference.

           (27) - Financial Data Schedule
</TABLE>