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, 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
incorporation or organization                              identification no.)


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 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>

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)
                                         June 30,     December 31,
                                           2002           2001
                                       ------------   ------------

Cash and cash equivalents              $  1,334,793   $  8,968,487
Due from affiliates                          30,617         28,737
Prepaid expenses and
 other assets                                47,420         48,499
                                       ------------   ------------
         Total assets                  $  1,412,830   $  9,045,723
                                       ============   ============

                        LIABILITIES AND PARTNERS' EQUITY

Liabilities:
  Accrued expenses and other
   liabilities                         $     71,638   $    103,342
                                       ------------   ------------
         Total liabilities                   71,638        103,342

Partners' equity (Note 2):
     Investor Limited Partners
      (27,184 units outstanding)          1,327,780      8,852,957
     Original Limited Partner                     -              -
     General Partners                        13,412         89,424
                                       ------------   ------------
         Total partners' equity           1,341,192      8,942,381

                                       ------------   ------------
         Total liabilities and partners'
          equity                       $  1,412,830   $  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     For the Six Months Ended
                                 Ended June 30,                June 30,
                            ------------------------   ------------------------
                               2002          2001          2002         2001
                            -----------  -----------   -----------  -----------

Revenue:
     Rental                 $     1,486  $ 1,051,531   $     3,042  $ 2,109,834
     Interest income              5,986        2,225        43,989        5,594
                            -----------  -----------   -----------  -----------
         Total revenue            7,472    1,053,756        47,031    2,115,428

Expenses:
     Operating (Note 3)          (3,447)     287,630         3,846      587,155
     Maintenance                   (211)     102,575           985      190,022
     Real estate taxes                -      118,951             -      226,954
     General and
      administrative(Note 3)     22,829       58,759        23,134      158,578
     Management fees(Note 3)          -       45,189         7,794       92,301
     Depreciation and
      amortization                    -      344,409             -      684,810
     Interest                         -      218,010             -      459,119
                            -----------  -----------   -----------  -----------
         Total expenses          19,171    1,175,523        35,759    2,398,939
                            -----------  -----------   -----------  -----------
Net Income (loss)           $   (11,699) $  (121,767)  $    11,272  $  (283,511)
                            ===========  ===========   ===========  ===========

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

     Investor Limited Partners
      (27,184 units outstanding):
         Net Income (loss)  $   (11,582) $  (120,549)  $    11,159  $  (280,676)
                            ===========  ===========   ===========  ===========

     Investor Limited Partners,
     Per Unit:
         Net Income (loss)  $     (0.42) $     (4.43)  $      0.41  $    (10.33)
                            ===========  ===========   ===========  ===========

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

     General Partners:
         Net Income (loss)  $      (117) $    (1,218)  $       113  $    (2,835)
                            ===========  ===========   ===========  ===========


               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 Six Months Ended
                                                 June 30,
                                       ---------------------------
                                           2002           2001
                                       ------------   ------------

Cash flows from operating activities:
     Net income (loss)                 $     11,272   $   (283,511)
     Adjustment to reconcile net loss
      to net cash provided by
      operating activities:
        Depreciation and amortization             -        684,810
        Changes in assets and
         liabilities:
           Increase in restricted cash
            for tenant security deposits          -           (222)
           (Increase) decrease in prepaid
            expenses and other assets          (801)       134,660
           Decrease in accrued expenses
            and other liabilities           (31,704)       (98,749)
                                       ------------   ------------
             Net cash (used in)
              provided by operating
              activities                    (21,233)       436,988
                                       ------------   ------------

Cash flows from investing activities:
     Deposits to replacement reserve
      escrow                                      -        (21,000)
     Fixed asset additions                        -       (292,716)
     Increase in accrued expenses and
      other liabilities related to
      fixed assets additions                      -          2,346
                                       ------------   ------------
             Net cash used in
              investing activities                -       (311,370)
                                       ------------   ------------

Cash flows from financing activities:
     Principal payments on mortgage
      notes payable                               -        (59,896)
     Distributions                       (7,612,461)      (275,938)
                                       ------------   ------------
             Net cash used in financing
              activities                 (7,612,461)      (335,834)
                                       ------------   ------------

Net decrease in cash and cash
 equivalents                             (7,633,694)      (210,216)

Cash and cash equivalents, beginning
 of period                                8,968,487        456,851
                                       ------------   ------------

Cash and cash equivalents, end
 of period                             $  1,334,793   $    246,635
                                       ============   ============


               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
     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, 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 June 30, 2002, its
     results of  operation  for the three and six months ended June 30, 2002 and
     2001, and its cash flows for the six months ended June 30, 2002 and 2001.

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

     The results of operations  for the three and six months ended June 30, 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 six months ended June 30,
     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 Income              11,159            -           113       11,272

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

         Balance at
          June 30, 2002     $ 1,327,780  $         -   $    13,412  $ 1,341,192
                            ===========  ===========   ===========  ===========

                                       5
<PAGE>



             KRUPP REALTY LIMITED PARTNERSHIP - VII AND SUBSIDIARIES

     NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (In Liquidation), Continued

(3)  Related Party Transactions

     During 2001, the Partnership paid 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     For the Six Months Ended
                                 Ended June 30,                June 30,
                            ------------------------   ------------------------
                               2002          2001          2002         2001
                            -----------  -----------   -----------  -----------

     Property management
      fees                  $         -  $    45,189   $     7,794  $    92,301

     Expenses reimbursement           -       67,900           175      185,587
                            -----------  -----------   -----------  -----------
      Charged to operations $         -  $   113,089   $     7,969  $   277,888
                            ===========  ===========   ===========  ===========

     Expense  reimbursements  due from  affiliates  of $30,617 and $28,737  were
     included in due from  affiliates  at June 30, 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 June 30, 2002 and 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 and six
months ended June 30, 2002 and 2001.

Net income  increased  during the three and six months  ended June 30, 2002 when
compared to 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 six months ended June 30, 2002  decreased when compared to
the six months ended June 30, 2001 as a result of the sale of the  Partnerships'
properties.  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 June 30, 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 distributions and other cash requirements.

A detailed  analysis of quantitative  and qualitative  market risk exposures was
provided  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 June  30,  2002 and
December 31, 2001.




                                       7
<PAGE>



                           PART II - OTHER INFORMATION



Item 1.           Legal Proceedings
                     None

Item 2.           Changes in Securities
                     None

Item 3.           Defaults upon Senior Securities
                     None

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

Item 5.           Other information
                     None

Item 6.           Exhibits and Reports on Form 8-K
                     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 its  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:  August 14, 2002


























                                       9
<PAGE>



                            CERTIFICATION PURSUANT TO
                 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO
                  SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002


In connection with the Quarterly Report of Krupp Realty Limited  Partnership-VII
(the  "Partnership")  on Form 10-Q for the period  ended June 30,  2002 as filed
with the Securities and Exchange  Commission on the date hereof (the  "Report"),
I, David C.  Quade,  Principal  Financial  and  Accounting  Officer of The Krupp
Corporation,  a General Partner of the Partnership,  certify, pursuant to U.S.C.
ss. 1350 as adopted pursuant to ss. 906 of the Sarbanes-Oxley Act of 2002, that:

(1)  The Report fully complies with the  requirements  of Section 13(a) or 15(d)
     of the Securities Exchange Act of 1934; and

(2)  The information  contained in the Report fairly  presents,  in all material
     respects,  the financial  condition of the  Partnership as of June 30, 2002
     and the results of operations of the Partnership for the three month period
     then ended.



\s\ David C. Quade
------------------------------------------
David C. Quade
Principal Financial and Accounting Officer







                                       10