PART I. FINANCIAL INFORMATION



                                  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           March 31, 2002
                                           ----------------------------------

                                       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                                     (Zip code)
offices)

                                 (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  preceeding 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>



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 (In Liquidation)

                                     ASSETS

                                            (Unaudited)
                                              March 31,        December 31,
                                                2002               2001
                                            ------------       ------------
Cash and cash equivalents                   $  1,363,043       $  8,968,487
Due from affiliates                               23,732             28,737
Prepaid expenses and other assets                 48,497             48,499

                                            ------------       ------------
         Total assets                       $  1,435,272       $  9,045,723
                                            ============       ============

                        LIABILITIES AND PARTNERS' EQUITY

Liabilities:
  Accrued expenses and other liabilities    $     82,381       $    103,342
                                            ------------       ------------
         Total liabilities                        82,381            103,342

Partners' equity (Note 2):
  Investor Limited Partners (27,184 units
   outstanding)                                1,339,362          8,852,957
  Original Limited Partner                             -                  -
  General Partners                                13,529             89,424
                                            ------------       ------------
    Total partners' equity                     1,352,891          8,942,381

                                            ------------       ------------
    Total liabilities and partners' equity  $  1,435,272       $  9,045,723
                                            ============       ============



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







                                       2
<PAGE>

             KRUPP REALTY LIMITED PARTNERSHIP - VII AND SUBSIDIARIES

             CONSOLIDATED STATEMENTS OF OPERATIONS (In Liquidation)

                                   (Unaudited)

                                               For the Three Months Ended
                                                       March 31,
                                            -------------------------------
                                                2002               2001
                                            ------------       ------------

Revenue:
     Rental                                 $      1,556      $   1,058,303
     Interest income                              38,003              3,369

                                            ------------       ------------
         Total revenue                            39,559          1,061,672

Expenses:
     Operating (Note 3)                            7,293            299,525
     Maintenance                                   1,196             87,447
     Real estate taxes                                 -            108,003
     General and administrative (Note 3)             305             99,819
     Management fees (Note 3)                      7,794             47,112
     Depreciation and amortization                     -            340,401
     Interest                                          -            241,109
                                            ------------       ------------
         Total expenses                           16,588          1,223,416

                                            ------------       ------------
Net loss                                    $     22,971       $   (161,744)
                                            ============       ============

Allocation of net income (loss) (Note 2):

     Investor Limited Partners (27,184 units
      outstanding):
         Net loss                           $     22,741       $   (160,127)
                                            ============       ============

     Investor Limited Partners,
       Per Unit:
         Net loss                           $       0.84       $      (5.89)
                                            ============       ============

     Original Limited Partner:
         Net loss                           $          -       $          -
                                            ============       ============

     General Partners:
         Net loss                           $        230       $     (1,617)
                                            ============       ============



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



                                       3
<PAGE>


             KRUPP REALTY LIMITED PARTNERSHIP - VII AND SUBSIDIARIES

             CONSOLIDATED STATEMENTS OF CASH FLOWS (In Liquidation)

                                   (Unaudited)

                                              For the Three Months Ended
                                                       March 31,
                                            -------------------------------
                                                2002               2001
                                            ------------       ------------

Cash flows from operating activities:
     Net loss                               $     22,971       $   (161,744)
     Adjustment to reconcile net loss to net
      cash provided by operating activities:
        Depreciation and amortization                  -            340,401
     Changes in assets and liabilities:
        Increase in restricted cash for
         tenant security deposits                      -               (193)
        Decrease in prepaid expenses and
         other assets                              5,007            156,386
        Decrease in accrued expenses and
         other liabilities                       (20,961)          (104,190)
                                            ------------       ------------
           Net cash (used in) provided by
            operating activities                   7,017            230,660
                                            ------------       ------------

Cash flows from investing activities:
     Deposits to replacement reserve escrow            -             (8,400)
     Additions to fixed assets                         -            (72,714)
                                            ------------       ------------
           Net cash used in investing
            activities                                 -            (81,114)
                                            ------------       ------------

Cash flows from financing activities:
     Principal payments on mortgage notes
      payable                                          -            (29,565)
     Distributions                            (7,612,461)          (275,938)
                                            ------------       ------------
               Net cash used in financing
                activities                    (7,612,461)          (305,503)
                                            ------------       ------------

Net decrease in cash and cash equivalents     (7,605,444)          (155,957)

Cash and cash equivalents,
 beginning of period                           8,968,487            456,851
                                            ------------       ------------
Cash and cash equivalents,
 end of period                              $  1,363,043       $    300,894
                                            ============       ============


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




                                       4
<PAGE>



             KRUPP REALTY LIMITED PARTNERSHIP - VII AND SUBSIDIARIES

           NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (In Liquidation)


(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 Statements included in
     the  Partnership's  Annual Report on Form 10-K for the year ended  December
     31, 2001 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 March 31, 2002 and
     its results of  operation  and cash flows for the three  months ended March
     31, 2002 and 2001.

     During 2001, the Partnership sold its remaining real estate investments and
     intends to liquidate the  Partnership's  remaining  assets,  distribute its
     remaining cash and dissolve the Partnership in 2002.

     The results of operations for the three months ended March 31, 2002 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'  equity for the three months ended March
     31, 2002 is as follows:

                         Investor     Original                  Total
                         Limited      Limited      General      Partners'
                         Partners     Partner      Partners     Equity
                         -----------  -----------  ----------  ------------

     Balance at
      December 31, 2001  $ 8,852,957  $         -  $    89,424  $ 8,942,381

     Net loss                 22,741            -          230       22,971

     Distributions        (7,536,336)           -      (76,125)  (7,612,461)

                         -----------  -----------  -----------  -----------
     Balance at
      March 31, 2002     $ 1,339,362  $         -  $    13,529  $ 1,352,891
                         ===========  ===========  ===========  ===========




                                   Continued


                                       5
<PAGE>


             KRUPP REALTY LIMITED PARTNERSHIP - VII AND SUBSIDIARIES

     NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (In Liquidation), Continued

(3)  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
     reimburses affiliates of the General Partners for certain expenses incurred
     in connection  with the operation of the  Partnership  and its  properties,
     including administrative expenses.

     Amounts  accrued  or  paid  to the  General  Partners'  affiliates  were as
     follows:

                                              For the Three Months Ended
                                                       March 31,
                                            -------------------------------
                                                2002               2001
                                            ------------       ------------

                  Property management fees  $      7,794       $     47,112

                  Expenses reimbursement             175            117,687

                                            ------------       ------------
                    Charged to operations   $      7,969       $    164,799
                                            ============       ============

     Expense  reimbursements  due from  affiliates  of $23,732  and 28,737  were
     included in due from  affiliates  at March 31, 2002 and  December 31, 2001,
     respectively.



                                       6
<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

On November 20,  2001,  the  Partnership  sold  Windsor  Apartments,  a 300-unit
multi-family apartment community to an unaffiliated third party. The Partnership
received  $12,235,336,  net of closing  costs of $80,518  and payoff of mortgage
payable and accrued interest of $4,971,598.

On August  29,  2001,  the  Partnership  sold  Courtyards  Village,  a  224-unit
multi-family  apartment complex to an unaffiliated  third party. The Partnership
received  $7,608,399  for the sale,  net of closing costs of $83,648 and debt of
$5,075,953  assumed by the  buyer,  and repaid the  mortgage  note  payable  and
accrued interest of $30,106.

As of December 31, 2001, the Partnership  has no investment in any  multi-family
apartment communities.

Operations

The following  discussion  relates to the operations of the  Partnership and its
properties  (Courtyards  Village and Windsor  Apartments)  for the three  months
ended March 31, 2002 and 2001.

Net income  increased during the three months ended March 31, 2002 when compared
to the same  period  in 2001  due to sale of the  Partnership's  remaining  real
estate assets in August and November of 2001.

Total revenue for the three months ended March 31, 2002  decreased when compared
to the three months ended March 31, 2001.  Rental  income  decreased  due to the
sale of the Partnership's  remaining real estate assets in 2001. Interest income
earned increased  substantially from the cash proceeds received from the sale of
the Partnership's real estate properties.

Total expenses for the quarter ended March 31, 2002 decreased significantly when
compared  to the same  period  in 2001  since  the  Partnership  no  longer  has
ownership in any real estate properties as of December 31, 2001.

Item 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The  Partnership's  future  earnings,  cash flows and fair  values  relevant  to
financial  instruments are dependent upon prevalent market rates. Market risk is
the risk of loss from adverse changes in market prices and interest  rates.  The
Partnership  manages its market risk by matching  projected  cash  inflows  from
operating  activities,   investing  activities  and  financing  activities  with
projected   cash  outflows  to  fund  debt   payments,   acquisitions,   capital
expenditures, distributions and other cash requirements.

A detailed  analysis of quantitative  and qualitative  market risk exposures was
provided  in the in the  Partnership's  Annual  Report on Form 10-K for the year
ended  December  31,  2001.  There have been no material  changes in market risk
subsequent to that date.

All of the Partnership's mortgage debt was repaid as of December 31, 2001.




                                       7
<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




                                       8
<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/ David C. Quade
                                          -------------------------------------
                                           David C. Quade
                                           Treasurer  (Principal  Financial  and
                                            Accounting Officer) of The Krupp
                                            Corporation, a General Partner


DATE:  May 15, 2002

























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