UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                    FORM 10-Q
(Mark  One)

        x     QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
              EXCHANGE ACT OF 1934

               For the quarterly period ended           June 30, 2000

                                       OR

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

               For the transition period from                 to

              Commission File number                       0-14377

                     Krupp Realty Limited Partnership - VII

         Massachusetts                                     04-2842924
(State or other jurisdiction of                (IRS employer identification no.)
incorporation or organization)

  One Beacon Street, Boston, Massachusetts                    02108
(Address of principal executive offices)                   (Zip code)

                                (617) 523-7722
             (Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 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




The total number of pages in this document is 9.



<PAGE>
                          PART I. FINANCIAL INFORMATION

Item 1.  FINANCIAL STATEMENTS

This form 10-Q contains forward-looking statements within the meaning of Section
27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act
of 1934.  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.

              KRUPP REALTY LIMITED PARTNERSHIP-VII AND SUBSIDIARIES

                           CONSOLIDATED BALANCE SHEETS

                                     ASSETS
<TABLE>
<CAPTION>

                                               (Unaudited)
                                                 June 30,         December 31,
                                                   2000                1999
                                               -------------       -------------

<S>                                            <C>                 <C>
Multi-family apartment
  complexes, net of accumulated depreciation
  of $14,953,516 and $14,265,488, respectively  $   8,302,694      $  8,809,883
Cash and cash equivalents                            334,961            120,525
Cash restricted for tenant security deposits          27,456             27,256
Replacement reserve escrow                            30,275             72,378
Prepaid expenses and other assets                    411,669            663,021
Deferred expenses, net of accumulated
  amortization of $190,721
  and $171,421, respectively                         124,931            144,234

                                               =============       ============
         Total assets                          $   9,231,986       $  9,837,297
                                               =============       ============

                        LIABILITIES AND PARTNERS' DEFICIT

Liabilities:
  Mortgage notes payable                       $  10,164,953       $ 10,220,052
  Accrued expenses and other liabilities             500,353            625,590
                                               -------------       ------------

         Total liabilities                        10,665,306         10,845,642

Partners' Deficit (Note 2):
  Investor Limited Partners
  (27,184 units understanding)                      (568,516)          (172,633)
  Original Limited Partner                          (547,849)          (525,767)
  General Partners                                  (316,955)          (309,945)
                                               -------------       ------------
         Total Partners' Deficit                  (1,433,320)        (1,008,345)

                                               =============       ============
         Total liabilities and Partners'       $   9,231,986       $  9,837,297
         deficit                               =============       ============


</TABLE>


                     The accompanying notes are an integral
                 part of the consolidated financial statements.



<PAGE>


             KRUPP REALTY LIMITED PARTNERSHIP- VII AND SUBSIDIARIES

                      CONSOLIDATED STATEMENTS OF OPERATIONS

                                   (Unaudited)
<TABLE>
<CAPTION>


                                     For the Three           For the Six
                                     Months Ended            Months Ended
                                       June 30,                June 30,
                                -----------------------  ----------------------
                                    2000        1999        2000        1999
                                -----------  ----------  ----------  ----------
<S>                             <C>          <C>         <C>         <C>
Revenue:
     Rental                     $ 1,039,290  $  962,083  $2,074,302  $1,932,653
     Interest income                  3,693      5,745        8,503      13,946
                                -----------  ----------  ----------  ----------

         Total revenue            1,042,983     967,828   2,082,805   1,946,599
                                -----------  ----------  ----------  ----------
Expenses:

     Operating (Note 3)             252,346     253,434     499,127     483,313
     Maintenance                    103,510     128,806     168,124     222,353
     Real estate taxes               93,494      93,767     204,251     229,967
     General and administrative
     (Note 3)                        66,208      53,785     101,089      78,121
     Management fees (Note 3)        60,587      37,151     115,509      80,143
     Depreciation and
      amortization                  352,793     372,872     707,327     742,815
     Interest                   $   217,868  $  220,150  $  436,324  $  440,840
                                -----------  ----------  ----------  ----------

         Total expenses           1,146,806   1,159,965   2,231,751   2,277,552
                                -----------  ----------  ----------  ----------
Net loss                        $  (103,823) $ (192,137) $ (148,946) $ (330,953)
                                ===========  ==========  ==========  ==========

Allocation of net loss:

     Investor Limited Partners
     (27,184 units outstanding):
         Net loss               $  (102,785)$  (190,216) $ (147,457) $ (327,643)
                                ===========  ==========  ==========  ==========

     Investor Limited Partners,
     Per Unit:
         Net loss               $     (3.78) $    (7.00) $    (5.42) $   (12.05)
                                ===========  ==========  ==========  ==========

     Original Limited Partner
         Net loss                      -           -           -           -
                                ===========  ==========  ==========  ==========

     General Partners:
         Net loss               $    (1,038) $   (1,921) $   (1,489) $   (3,310)
                                ===========  ==========  ==========  ==========
</TABLE>

                     The accompanying notes are an integral
                 part of the consolidated financial statements.



<PAGE>



              KRUPP REALTY LIMITED PARTNERSHIP-VII AND SUBSIDIARIES

                      CONSOLIDATED STATEMENTS OF CASH FLOWS

                                   (Unaudited)
<TABLE>
<CAPTION>

                                                   For the Six Months Ended
                                                            June 30,
                                               --------------------------------
                                                    2000               1999
                                               -------------       ------------
<S>                                            <C>                 <C>
Cash flows from operating activities:
  Net loss                                     $    (148,946)     $    (330,953)
  Adjustment to reconcile net loss to net
   cash provided by operating activities:
     Interest  earned  on  replacement
     reserve escrow                                     (219)              (460)
     Depreciation and amortization                   707,327            742,815
     Changes in assets and liabilities:
          Increase in restricted cash for
            tenant  security deposits                (27,704)              (322)
          Decrease (increase) in prepaid
            expenses and other assets                251,352            (86,186)
          Decrease in accrued expenses and
            other liabilities                        (95,529)          (107,577)
                                               -------------      -------------

            Net cash provided by
              operating activities                   686,281            217,317
                                               -------------      -------------
Cash flows from investing activities:
     Deposits to replacement reserve escrow          (25,200)           (25,200)
     Withdrawals from replacement
       reserve escrow                                 67,522                151
   Additions to fixed assets                        (180,835)          (194,873)
   Decrease in accrued expenses and other
     liabilities related to fixed assets
     additions                                        (2,204)            (3,500)
                                               -------------      -------------

Net cash provided by (used in)
  investing activities                              (140,717)          (223,422)
                                               -------------      -------------
Cash flows from financing activities:
  Principal payments on mortgage notes payable       (55,099)           (50,583)
     Distributions                                  (276,029)          (276,029)
                                               -------------      -------------

  Net cash used in financing activities             (331,128)          (326,612)
                                               -------------      -------------

Net increase (decrease) in cash and cash
  equivalents                                        214,436           (332,717)

   Cash and cash equivalents, beginning of           120,525            629,483
     period                                    -------------      -------------

Cash and cash equivalents, end of period       $     334,961      $     296,766
                                               =============      =============
</TABLE>

                     The accompanying notes are an integral
                 part of the consolidated financial statements.

<PAGE>
             KRUPP REALTY LIMITED PARTNERSHIP- VII AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



(1)      Accounting Policies

         Certain  information  and  footnote  disclosures  normally  included in
         financial statements  prepared  in  accordance  with generally accepted
         accounting principals have been condensed or omitted in this  report on
         form  10-Q pursuant to the Rules and  Regulations of the Securities and
         Exchange  Commission.  In the opinion of the General  Partners of Krupp
         Realty Limited Partnership-VII and Subsidiaries (the "Partnership"),the
         disclosures  contained  in  this  report  are  adequate  to  make   the
         information  presented  not  misleading.  See notes to the Consolidated
         Financial Statement  included  in  the  Partnership's annual  report on
         Form  10-K  for  the  year  ended  December  31,  1999  for  additional
         information  relevant  to significant  accounting policies followed by
         the Partnership.

         In  the  opinion  of  the  General  Partners  of  the  Partnership, the
         accompanying unaudited  consolidated  financial  statements reflect all
         adjustments (consisting of only normal recurring accruals) necessary to
         present fairly the Partnership's consolidated financial  position as of
         June 30, 2000, its results of  operation for the three  and  six months
         ended June  30,2000  and  1999, and its cash  flows for  the six months
         ended June 30, 2000 and 1999.

         The results of operations for the  three and six  months ended June 30,
         2000  are  not  necessarily  indicative  of the  results which  may be
         expected for the full year. See Management's Discussion and Analysis of
         Financial Condition and Results of  Operations included in this report.

(2)      Changes in Partners' Equity

         A summary of changes in Partners' deficit for six months ended June 30,
         2000 is as follows:
<TABLE>
<CAPTION>

                                  Investor    Original               Total
                                  Limited     Limited    General     Partners
                                  Partners    Partners   Partners    Deficit
                                  ---------  ----------  ---------  -----------
         <S>                      <C>        <C>         <C>        <C>
         Balance at
            December 31, 1999     $(172,633) $ (525,767) $(309,945) $(1,008,345)


         Distributions             (248,426)    (22,082)    (5,521)    (276,029)


         Net loss                  (147,457)      -         (1,489)    (148,946)

                                  ---------  ----------  ---------  -----------
         Balance at
           June 30, 2000          $(568,516) $ (547,849) $(316,955) $ 1,433,320)
                                  =========  ==========  =========  ===========
</TABLE>

<PAGE>

Related Party Transactions

         The Partnership  pays property  management fees to an affiliate  of the
         General Partners for management  services.  Pursuant to the  management
         agreements, management  fees are  payable  monthly  at a rate of 5%  of
         gross  receipts  from  residential  properties  under  management.  The
         Partnership  also  reimburse  affiliates of  the General  Partners  for
         certain  expenses  incurred in connection  with the  operation  of  the
         Partnership and its properties, including administrative expenses.

         Amounts  accrue  or  paid  to  the  General  Partners' affiliates  were
         as follows:
<TABLE>
<CAPTION>

                                       For the Three           For the Six
                                       Months Ended            Months Ended
                                         June 30,                June 30,
                                  -----------------------  ---------------------
                                      2000        1999       2000       1999
                                  -----------  ----------  ---------- ----------
         <S>                      <C>          <C>         <C>        <C>
         Property management fees $    60,587  $   37,151  $  115,509 $   80,143


         Expenses reimbursement        53,947      54,378      95,681     88,345

                                  -----------  ----------  ---------- ----------
         Charged to operations    $   114,534  $   91,529  $  211,190 $  168,488
                                  ===========  ==========  ========== ==========
</TABLE>


         Expense  reimbursements  due  from  affiliates of  $87,200 and $237,015
         were  included  in prepaid  expenses and  other assets at June 30, 2000
         and December 31, 1999, respectively.

<PAGE>

             KRUPP REALTY LIMITED PARTNERSHIP- VII AND SUBSIDIARIES

Item 2.  MANAGEMENT'S   DISCUSSION  AND  ANALYSIS  OF  FINANCIAL  CONDITION  AND
         RESULTS  OF  OPERATIONS

This Management's Discussion and Analysis of Financial  Condition and Results of
Operations   contains  forward-looking   statements including  those  concerning
Management's expectations regarding the future financial performance and  future
events.   These  forward  looking  statements  involve    significant  risk  and
uncertainties,  including  those  described  herein.  Actual  results may differ
materially from those anticipated by such forward-looking statements.

Liquidity and Capital Resources

The  Partnership's  ability  to  generate cash  adequate  to  meet  its needs is
dependent   primarily  upon  the  successful   operations  of  its  real  estate
investments. Such ability would  also be  impacted  by the  future  availability
of bank  borrowings and the  future refinancing  and  sale of the  Partnership's
remaining  real  estate  investments.  These   sources   of  liquidity  will  be
used  by  the  Partnership  for  payment  of  expenses  related  to  real estate
operations capital  improvements,  debt  service and  other expenses. Cash flow,
calculated  under  section 8.2 (a) of the  Partnership  Agreement,  will then be
if any, as  available  for  distribution  to the Partners.

The General  Partners,  on  an  ongoing  basis,   assess the current  and future
liquidity  needs  in  determining  the levels  of working  capital  reserves the
Partnership  should   maintain.  Adjustments  to  distributions  are  made  when
appropriate to  reflect  such  assessment.  The current annual distribution rate
is $18.28 per Unit, and is paid semiannually in February and August.

Operations

The following  discussion relates to  the operations of the  Partnership and its
properties  (Courtyards  Village and  Windsor Apartments)  for the three and six
months ended June 30, 2000 and 1999.

Net loss  decreased  during  the three  and six  months ended June 30, 2000 when
compared to the  three and six  months  ended  June 30, 1999, as  total revenues
increased   and  total  expenses   decreased.  The  increase  in  total  revenue
is  primarily  a result  of  rental  rate  increases  implemented  at all of the
Partnership's  properties  at the end  of the  first  quarter of 2000.  Interest
income decreased  due  to  lower  average  cash  and  cash  equivalent  balances
available for investment when compared to 1999.

Total  expenses  for  the  three  months  ended  June 30,  2000  decreased  when
compared  to the three  months ended June 30, 1999 with decreases in maintenance
and  depreciation  expenses  offset  by  an  increase in general  administrative
reduced  the need  for  repairs  and  maintenance  in some  areas.  Depreciation
expense expenses. Maintenance expense decreased  in 2000 as capital expenditures
decreased as fixed asset  additions purchased in the previous years become fully
depreciated.  General  and  administrative  expenses  increased  as  a result of
increased  investor  communication  costs  including  printing  and  mailing  of
quarterly and annual reports.

Total   expenses  for  the  six  months  ended  June  30,  2000  decreased  when
compared  to the six  months  ended June 30,  1999 due to  the reasons discussed
above as well as an increase in operating expenses. Operating expenses increased
as  a  result of  increases  in utilities, insurance, and  refuse removal costs.
<PAGE>
             KRUPP REALTY LIMITED PARTNERSHIP- VII AND SUBSIDIARIES

                           PART II - OTHER INFORMATION



Item 1.           Legal Proceedings
                  Response:  None

Item 2.           Changes in Securities
                  Response:  None

Item 3.           Defaults upon Senior Securities
                  Response:  None

Item 4.           Submission of Matters to a Vote of Security Holders
                  Response:  None

Item 5.           Other information
                  Response:  None

Item 6.           Exhibits and Reports on Form 8-K
                  Response:  None

<PAGE>

                                   SIGNATURE



Pursuant  to  the  requirements  of the  Securities  Exchange  Act of  1934, the
registrant  has  duly  caused  this  report  to  be signed on it's behalf by the
undersigned, thereunto duly authorized.
                                          Krupp Realty Limited Partnership - VII
                                          --------------------------------------
                                                      (Registrant)

                                         BY:  /s/ Wayne H Zarozny
                                         ---------------------------------------
                                         Wayne H. Zarozny
                                         Treasurer and Chief Accounting
                                         Officer of the Krupp Corporation,
                                         a General Partner.

DATE: August 14, 2000