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              September 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                           (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 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

                                     ASSETS

<TABLE>
<CAPTION>
                                              (Unaudited)
                                             September 30,   December 31,
                                                 2000           1999
                                             ------------   -------------

<S>                                          <C>            <C>
Multi-family apartment complexes,
 net of accumulated depreciation of
 $15,295,488 and $14,265,488, respectively   $  8,054,215   $   8,809,883
Cash and cash equivalents                         185,957         120,525
Cash restricted for tenant security deposits       55,116          27,256
Replacement reserve escrow                         56,445          72,378
Prepaid expenses and other assets                 606,765         663,021
Deferred expenses, net of accumulated
 amortization of $200,370 and $171,421,
 respectively                                     115,285         144,234
                                             ------------   -------------
         Total assets                        $  9,073,783   $   9,837,297
                                             ============   =============

                        LIABILITIES AND PARTNERS' DEFICIT

Liabilities:
 Mortgage notes payable                      $ 10,136,507   $  10,220,052
 Accrued expenses and other liabilities           703,859         625,590
                                             ------------   -------------

         Total liabilities                     10,840,366      10,845,642
                                             ------------   -------------
Partners' deficit (Note 2):
 Investor Limited Partners
  (27,184 units outstanding)                     (873,603)       (172,633)
 Original Limited Partner                        (569,931)       (525,767)
 General Partners                                (323,049)       (309,945)
                                             ------------   -------------

         Total partners' deficit               (1,766,583)     (1,008,345)
                                             ------------   -------------
         Total liabilities and partners'
          deficit                            $  9,073,783   $   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            For the Nine
                                  Months Ended             Months Ended
                                  September 30,            September 30,
                            ------------------------  ------------------------
                            -----------  -----------  -----------  -----------
                                2000        1999          2000         1999
                            -----------  -----------  -----------  -----------
<S>                         <C>          <C>          <C>          <C>
Revenue:
  Rental                    $ 1,046,455  $ 1,006,136  $ 3,120,757  $ 2,938,789
  Interest income                 2,546        2,165       11,049       16,111
                            -----------  -----------  -----------  -----------

         Total revenue        1,049,001    1,008,301    3,131,806    2,954,900
                            -----------  -----------  -----------  -----------
Expenses:
  Operating (Note 3)            270,530      256,714      769,655      740,027
  Maintenance                    72,144       48,796      240,268      271,149
  Real estate taxes             108,937       97,617      313,188      327,584
  General and administrative
      (Note 3)                   50,861       50,221      151,950      128,342
  Management fees (Note 3)       34,878       35,135      150,387      115,278
  Depreciation and
   amortization                 351,620      400,725    1,058,949    1,143,540
  Interest                      217,265      219,597      653,589      660,437

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

         Total expenses       1,106,235    1,108,805    3,337,986    3,386,357
                            -----------  -----------  -----------  -----------
Net loss                    $   (57,234) $  (100,504) $  (206,180) $  (431,457)
                            ===========  ===========  ===========  ===========

Allocation of net loss:

 Investor Limited Partners
  (27,184 units outstanding):
     Net loss               $  (56,662)  $   (99,499) $  (204,118) $  (427,142)
                            ===========  ===========  ===========  ===========

 Investor Limited Partners,
 Per Unit:
     Net loss               $     (2.08) $     (3.66) $     (7.51) $    (15.71)
                            ===========  ===========  ===========  ===========

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

 General Partners
     Net loss               $      (572) $    (1,005) $    (2,062) $    (4,315)
                            ===========  ===========  ===========  ===========
</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 Nine Months Ended
                                                  September 30,
                                            -------------------------
                                                2000          1999
                                            -----------   -----------
<S>                                         <C>           <C>
Cash flows from operating activities:
  Net loss                                  $  (206,180)  $  (431,457)
  Adjustment to reconcile net loss to net
   cash provided by operating activities:
     Interest earned on replacement reserve
      escrow                                       (219)         (782)
     Depreciation and amortization            1,058,949     1,143,540
     Changes in assets and liabilities:
       Increase in restricted cash for
        tenant security deposits                (27,860)         (487)
       Decrease (increase) in prepaid
        expenses and other assets                56,256      (291,040)
       Increase in accrued expenses and
        other liabilities                        80,473       176,669
                                            -----------   -----------
            Net cash provided by operating
             activities                         961,419       596,443
                                            -----------   -----------

Cash flows from investing activities:

  Deposits to replacement reserve escrow        (51,370)      (37,800)
  Withdrawals from replacement reserve
   escrow                                        67,522           311
  Additions to fixed assets                    (274,332)     (522,755)
  Decrease in accrued expenses and other
   liabilities related to fixed asset
   additions                                     (2,204)       (3,500)
                                            -----------   -----------
            Net cash used in investing
             activities                        (260,384)     (563,744)
                                            -----------   -----------

Cash flows from financing activities:

   Principal payments on mortgage notes
    payable                                     (83,545)      (76,697)
   Distributions                               (552,058)     (552,060)
                                            -----------   -----------
            Net cash used in financing
             activities                        (635,603)     (628,757)
                                            -----------   -----------

Net increase (decrease) in cash and cash
 equivalents                                     65,432      (596,058)

Cash and cash equivalents, beginning of
 period                                         120,525       629,483
                                            -----------   -----------
Cash and cash equivalents, end of period    $   185,957   $    33,425
                                            ===========   ===========
</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  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  September  30,  2000,  its  results of
operation for the three and nine months ended  September 30, 2000 and 1999,  and
its cash flows for the nine months ended September 30, 2000 and 1999.

The results of operations for the three and nine months ended September 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' Deficit

A summary of changes in Partners'  deficit for nine months ended  September  30,
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               (496,852)      (44,164)      (11,042)      (552,058)

Net loss                    (204,118)         -           (2,062)      (206,180)
                         -----------   -----------   -----------   ------------
Balance at
  September 30, 2000     $  (873,603)  $  (569,931)  $  (323,049)  $ (1,766,583)
                         ===========   ===========   ===========   ============
</TABLE>






<PAGE>


              KRUPP REALTY LIMITED PARTNERSHIP-VII AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


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

                               For the Three              For the Nine
                               Months Ended               Months Ended
                               September 30,              September 30,
                         -------------------------   --------------------------
                         -----------   -----------   -----------   ------------
                             2000          1999          2000          1999
                         -----------   -----------   -----------   ------------

<S>                      <C>           <C>           <C>           <C>
Property management fees $    34,878   $    35,135   $   150,387   $    115,278

Expenses reimbursement        53,877        54,606       149,558        142,951
                         -----------   -----------   -----------   ------------
Charged to operations    $    88,755   $    89,741   $   299,945   $    258,229
                         ===========   ===========   ===========   ============

</TABLE>

Expense  reimbursements  due from  affiliates  of  $191,848  and  $237,015  were
included in prepaid expenses and other assets at September 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, if any, as
calculated  under  section 8.2 (a) of the  Partnership  Agreement,  will then be
available for distribution to the Partners.

Over the past several years real estate  markets in general have  improved,  and
the General  Partners feel this is an opportune  time to formulate a liquidation
strategy for the Partnership.  As such, the General Partners intend to begin the
process  of  more  thoroughly   assessing  the  property  sales  market  in  the
Partnership's  market areas and  developing a  disposition  strategy  which will
yield  the  highest  value  to  investors   through  an  efficient  and  orderly
liquidation  of the  Partnership.  In keeping  with this  strategy,  the General
Partners  intend to refinance  mortgage  loans which mature in the next 6 months
with financing that leaves flexibility for the property sales.

Assuming market  conditions do not change,  the assessment of the property sales
market is consistent with the General Partners' expectations,  and an acceptable
disposition  plan can be implemented the General Partners expect to complete the
liquidation process over the next 15 months.  However, there can be no assurance
that such a  liquidation  will  occur,  or what  amounts  may be realized by the
Partnership.

The  General  Partners,  on an  ongoing  basis,  assess the  current  and future
liquidity  needs in  determining  the  level 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 nine
months ended September 30, 2000 and 1999.

Net loss  decreased  during the three and nine months ended  September  30, 2000
when  compared to the three and nine months ended  September  30, 1999, as total
revenue 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 during the nine months ended September 30, 2000 due to a lower
average cash and cash equivalent balances available for investment when compared
to 1999.


<PAGE>

              KRUPP REALTY LIMITED PARTNERSHIP-VII AND SUBSIDIARIES

Operations, Continued

Total  expenses for the three months ended  September  30, 2000  decreased  when
compared to the three months ended  September  30,  1999.  Depreciation  expense
decreased as fixed asset additions  purchased in the previous years became fully
depreciated.  Operating  expenses increased as a result of increases in leasing,
utilities,  insurance,  and rubbish removal costs.  Maintenance expenses for the
third quarter in 1999 were significantly  lower than the same period in 2000 due
to a  reclassification  of expenses  resulting  from the  December  1998 fire at
Windsor Apartments to an insurance receivable.

Total  expenses  for the nine months ended  September  30, 2000  decreased  when
compared to the nine months ended  September  30, 1999 due to reasons  discussed
above  as well as a  decrease  in  maintenance  expenses.  Maintenance  expenses
decreased  in 2000 as capital  expenditures  reduced  the need for  repairs  and
maintenance in some areas.

<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:  November 14, 2000