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, 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
incorporation or organization)                           identification no.)


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 10.



<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

<TABLE>
<CAPTION>

                                     ASSETS

                                               (Unaudited)
                                                March 31,           December 31,
                                                  2000                  1999
                                               -----------           -----------
<S>                                            <C>                   <C>
Multi-family apartment complexes, net of
 accumulated depreciation
 of $14,610,369
 and $14,265,488, respectively                 $ 8,551,113           $ 8,809,883
Cash and cash equivalents                          206,840               120,525
 Cash restricted for tenant
security deposits                                   27,404                27,256
Replacement reserve escrow                          17,635                72,378
Prepaid expenses and other assets                  428,603               663,021
Deferred expenses, net of accumulated
  amortization of $181,074 and $171,421,
  respectively                                     134,581               144,234
                                               -----------           -----------

          Total assets                         $ 9,366,176           $ 9,837,297
                                               ===========           ===========



                      LIABILITIES AND PARTNERS' DEFICIT

Liabilities:
  Mortgage notes payable                       $10,192,797           $10,220,052
  Accrued expenses and other liabilities           502,876               625,590
                                               -----------           -----------

          Total liabilities                     10,695,673            10,845,642
                                               -----------           -----------

Partners' deficit (Note 2):
     Investor Limited Partners (27,184
         Units outstanding)                       (465,731)             (172,633)
     Original Limited Partner                     (547,849)             (525,767)
     General Partners                             (315,917)             (309,945)
                                               -----------           -----------

          Total Partners' deficit               (1,329,497)           (1,008,345)
                                               -----------           -----------

          Total liabilities and
          Partners' deficit                    $ 9,366,176           $ 9,837,297
                                               ===========           ===========
</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 Months
                                                          Ended March 31,
                                                 ------------------------------
                                                     2000                1999
                                                 -----------          ---------
      <S>                                        <C>                <C>
      Revenue:
       Rental                                    $ 1,035,012        $   970,570
       Interest income                                 4,810              8,201
                                                 -----------        -----------

              Total revenue                        1,039,822            978,771
                                                 -----------        -----------

      Expenses:
         Operating (Note 3)                          246,781            229,879
         Maintenance                                  64,614             93,547
         Real estate taxes                           110,757            136,200
         General and administrative (Note 3)          34,881             24,336
         Management fees (Note 3)                     54,922             42,992
         Depreciation and amortization               354,534            369,943
         Interest                                    218,456            220,690
                                                 -----------        -----------

              Total expenses                       1,084,945          1,117,587
                                                 -----------        -----------

      Net loss                                   $   (45,123)         $(138,816)
                                                 ===========        ===========

      Allocation of net loss:

      Investor Limited Partners
         (27,184 Units outstanding):
         Net loss                                $   (44,672)       $  (137,428)
                                                 ===========        ===========

      Investor Limited Partners, Per Unit:
         Net loss                                $     (1.64)       $     (5.06)
                                                 ===========        ===========

      Original Limited Partners
         Net loss                                $      -           $     -
                                                 ===========        ===========

      General Partners:
         Net loss                                $      (451)       $    (1,388)
                                                 ===========        ===========


</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 Three Months
                                                       Ended March 31,
                                                 2000                 1999
                                               ---------          -----------
<S>                                            <C>                <C>
Cash flows from operating activities:
  Net loss                                     $ (45,123)         $ (138,816)
  Adjustments to reconcile
    net income (loss) to net
     cash provided by operating activities:
      Interest earned on
       replacement reserve escrow                   (179)               (145)
      Depreciation and amortization              354,534             369,943
      Changes in assets and liabilities:
       Increase in restricted cash for tenant
         security deposits                          (148)               (162)
       Decrease in prepaid expenses
         and other assets                        234,418             141,021
       Decrease in accrued expenses
         and other liabilities                  (120,510)           (120,507)
                                               ---------          ----------

         Net cash provided by operating
                    activities                   422,992             251,334
                                               ---------          ----------

Cash flows from investing activities:
  Deposits to replacement reserve escrow         (12,600)            (12,600)
  Withdrawals from replacement reserve escrow     67,522                 151
  Additions to fixed assets                      (86,111)            (73,402)
  Decrease in accrued expenses and other
   liabilities related to fixed asset
   additions                                      (2,204)             (3,046)
                                               ---------          ----------

                 Net cash used in investing
                      activities                 (33,393)            (88,897)
                                               ---------          ----------

Cash flows from financing activities:
  Principal payments on mortgage notes payable   (27,255)            (25,021)
  Distributions                                 (276,029)           (276,029)
                                               ---------          ----------

                 Net cash used in financing
                      activities                (303,284)           (301,050)
                                               ---------          ----------

Net increase (decrease) in
  cash and cash equivalents                       86,315            (138,613)

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

Cash and cash equivalents, end of period       $ 206,840             490,870
                                               =========          ==========

</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  principles  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, 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
       March 31,  2000,  its  results of  operations  and its cash flows for the
       three months ended March 31, 2000 and 1999.

       The results of  operations  for the three months ended March 31, 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 the three  months  ended
       March 31, 2000 is as follows:
<TABLE>
<CAPTION>

                             Investor      Original                    Total
                             Limited       Limited       General       Partners'
                             Partners      Partner       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              (44,672)          -           (451)        (45,123)
                          ----------    ----------   ----------    ------------

       Balance at
        March 31, 2000    $ (465,731)   $ (547,849)  $ (315,917)   $ (1,329,497)
                          ==========    ==========   ==========    ============
</TABLE>

    (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.








<PAGE>



              KRUPP REALTY LIMITED PARTNERSHIP-VII AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



    (3) Related Party Transactions, Continued

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

<TABLE>
<CAPTION>
                                                    For the Three Months
                                                        Ended March 31,
                                               --------------------------------
                                                 2000                   1999
                                               --------               ---------
           <S>                                 <C>                    <C>
           Property management fees            $ 54,922               $  42,992

           Expense reimbursements                41,734                  33,967
                                               --------               ---------

              Charged to operations            $ 96,656               $  76,959
                                               ========               =========
</TABLE>


       Expense  reimbursements due from affiliates of $131,577 and $237,012 were
       included  in  prepaid  expenses  and other  assets at March 31,  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,  if  any,  as  calculated  under  Section  8.2(a)  of the  Partnership
    Agreement, will then be 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  assessments.  The current  annual  distribution
    rate is $18.28 per Unit, and is paid semiannually in February and August.

    Year 2000

    The General  Partners of the Partnership have conducted an assessment of the
    Partnership's  core internal and external computer  information  systems and
    have taken the necessary  steps to  understand  the nature and extent of the
    work required to make its systems Year 2000 ready.  They have evaluated Year
    2000 compliance  issues with respect to its  non-financial  systems and have
    received  assurances from third-party  service providers  (including but not
    limited to its telecommunications  providers and banks) with regard to their
    Year 2000 readiness.

    The  General   Partners   completed  the  testing  and   conversion  of  the
    Partnerships  financial  accounting operating systems in February 1998. As a
    result,  the General  Partners have  generated  operating  efficiencies  and
    believe their financial  accounting  operating  systems are Year 2000 ready.
    The General Partners incurred hardware costs as well as consulting and other
    expenses related to the infrastructure and facilities enhancements necessary
    to complete  the  upgrade and prepare for the Year 2000.  There are no other
    significant  internal  systems or software that the  Partnership is using at
    the present time.

    To date, the  Partnership has not had, and does not expect to have, any Year
    2000 related problems.

    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, 2000 and 1999.









<PAGE>



              KRUPP REALTY LIMITED PARTNERSHIP-VII AND SUBSIDIARIES
                                     -----------


    Net loss  decreased  during  the three  months  ended  March  31,  2000 when
    compared  to the three  months  ended  March  31,  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 1999.  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 March 31, 2000  decreased  when
    compared  to the three  months  ended  March  31,  1999  with  decreases  in
    maintenance, real estate taxes and depreciation expense more than offsetting
    increases in operating and general and administrative expenses.  Maintenance
    expense  decreased in 2000 as payment of an insurance  deductible for damage
    resulting  from a December,  1998 fire at Windsor  Apartments was charged to
    maintenance  during the first quarter of 1999.  Real estate taxes  decreased
    due to  abatements  and  refunds  of prior year  taxes  received  by Windsor
    Apartments.   Depreciation   expense  decreased  as  fixed  asset  additions
    purchased in the previous years became fully depreciated. Operating expenses
    increased as a result of increases in payroll,  insurance and refuse removal
    costs.  General  and  administrative  expenses  increased  as  a  result  of
    increased  investor  communication  costs including  printing and mailing of
    quarterly and annual reports.






<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 its 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: May 15, 2000