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, 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 14.





<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

                                     ASSETS

                                                   (Unaudited)
                                                   September 30,   December 31,
                                                      2002             2001
                                                   ------------    ------------

Cash and cash equivalents                          $  1,351,426    $  8,968,487
Due from affiliates                                           -          28,737
Prepaid expenses and other assets                             -          48,499
                                                   ------------    ------------

         Total assets                              $  1,351,426    $  9,045,723
                                                   ============    ============

                        LIABILITIES AND PARTNERS' EQUITY

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

         Total liabilities                                    -         103,342

Partners' equity (Note 2):
  Investor Limited Partners (27,184 units
   outstanding)                                       1,337,912       8,852,957
  Original Limited Partner                                    -               -
  General Partners                                       13,514          89,424
                                                   ------------    ------------

         Total partners' equity                       1,351,426       8,942,381
                                                   ------------    ------------

         Total liabilities and partners' equity    $  1,351,426    $  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

                                   (Unaudited)


                               For the Three Months      For the Nine Months
                                Ended September 30,       Ended September 30,
                             ------------------------  ------------------------
                                2002          2001         2002         2001
                             -----------  -----------  -----------  -----------

Revenue:
   Rental                    $    30,175  $   887,186  $    33,217  $ 2,997,020
   Interest income                 5,918       24,992       49,907       30,586
                             -----------  -----------  -----------  -----------

         Total revenue            36,093      912,178       83,124    3,027,606

Expenses:
   Operating (Note 3)             27,615      252,629       31,461      839,784
   Maintenance                     8,891       62,314        9,876      252,336
   Real estate taxes                   -       93,898            -      320,852
   General and administrative
       (Note 3)                  (10,647)      60,206       12,487      218,784
   Management fees (Note 3)            -       40,761        7,794      133,062
   Depreciation and
    amortization                       -      266,738            -      951,548
   Interest                            -      178,199            -      637,318
                             -----------  -----------  -----------  -----------

         Total expenses           25,859      954,745       61,618    3,353,684
                             -----------  -----------  -----------  -----------

Income (loss) before gain on
 sale of property                 10,234      (42,567)      21,506     (326,078)

Gain on sale of property
 (Note 1)                              -    9,190,484            -    9,190,484
                             -----------  -----------  -----------  -----------

Net income                   $    10,234  $ 9,147,917  $    21,506  $ 8,864,406
                             ===========  ===========  ===========  ===========


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

                                    Continued


                                       3
<PAGE>
              KRUPP REALTY LIMITED PARTNERSHIP-VII AND SUBSIDIARIES

                CONSOLIDATED STATEMENTS OF OPERATIONS, Continued

                                   (Unaudited)

                               For the Three Months      For the Nine Months
                                Ended September 30,       Ended September 30,
                             ------------------------  ------------------------
                                2002         2001          2002         2001
                             -----------  -----------  -----------  -----------
Allocation of  net income
 (Note 2):

Investor Limited Partners
 (27,184 units outstanding):
   Income (loss) before gain
    on sale of Property      $    10,132  $   (42,141)      21,291  $  (322,817)
   Gain on sale of property            -    9,098,579            -    9,098,579
                             -----------  -----------  -----------  -----------
   Net income                $    10,132  $ 9,056,438  $    21,291  $ 8,775,762
                             ===========  ===========  ===========  ===========

Investor Limited Partners
  Per Unit:
   Income (loss) before gain
    on sale of Property      $      0.37  $     (1.55)        0.78  $    (11.88)
   Gain on sale of property            -       334.70            -       334.70
                             -----------  -----------  -----------  -----------
   Net income                $      0.37  $    333.15  $      0.78  $    322.82
                             ===========  ===========  ===========  ===========

Original Limited Partner:
   Income (loss) before gain
    on sale of Property      $         -  $         -  $         -            -
   Gain on sale of property            -            -            -            -
                             -----------  -----------  -----------  -----------
   Net income                $         -   $        -  $         -  $         -
                             ===========  ===========  ===========  ===========

General Partners:
   Income (loss) before gain
    on sale of Property      $       102  $      (426) $       215  $    (3,261)
   Gain on sale of property            -       91,905            -       91,905
                             -----------  -----------  -----------  -----------
   Net income                $       102  $    91,479  $       215  $    88,644
                             ===========  ===========  ===========  ===========


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

                                       4
<PAGE>

              KRUPP REALTY LIMITED PARTNERSHIP-VII AND SUBSIDIARIES

                      CONSOLIDATED STATEMENTS OF CASH FLOWS

                                   (Unaudited)

                                                    For the Nine Months Ended
                                                           September 30,
                                                   ----------------------------
                                                       2002            2001
                                                   ------------    ------------

Cash flows from operating activities:
  Net income                                       $     21,506    $  8,864,406
  Adjustment to reconcile net loss to net cash
   provided by operating activities:
    Interest earned on replacement reserve escrow             -               -
    Depreciation and amortization                             -         951,548
    Gain on sale of property                                  -      (9,190,484)
    Changes in assets and liabilities:
      Increase in restricted cash for tenant
       security deposits                                      -            (111)
      Decrease in prepaid expenses and other assets      77,236         126,384
      Decrease in accrued expenses and other
       liabilities                                     (103,342)       (244,400)
                                                   ------------    ------------
       Net cash (used in) provided by operating
        activities                                       (4,600)        507,343
                                                   ------------    ------------

Cash flows from investing activities:
  Deposits to replacement reserve escrow                      -         (29,922)
  Withdrawals from replacement reserve escrow                 -          85,965
  Fixed asset additions                                       -        (334,400)
  Proceeds from sale of property                              -      12,707,450
                                                   ------------    ------------

       Net cash provided by investing activities              -      12,429,093
                                                   ------------    ------------

Cash flows from financing activities:
  Principal payments on mortgage notes payable                -         (80,911)
  Repayment of mortgage note payable                          -      (5,075,953)
  Distributions                                      (7,612,461)     (6,560,095)
                                                   ------------    ------------

       Net cash used in financing activities         (7,612,461)    (11,716,959)
                                                   ------------    ------------

Net (decrease) increase in cash and cash
 equivalents                                         (7,617,061)      1,219,477

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

                                                   ------------    ------------
Cash and cash equivalents, end of period           $  1,351,426    $  1,676,328
                                                   ============    ============


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




                                       5
<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, 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 September 30, 2002,
     its results of operation for the three and nine months ended  September 30,
     2002 and 2001,  and its cash flows for the nine months ended  September 30,
     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 and nine months ended September 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 nine  months  ended
     September 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               21,291            -          215       21,506

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

         Balance at
          September 30, 2002 $ 1,337,912  $         -  $    13,514  $ 1,351,426
                             ===========  ===========  ===========  ===========


                                    Continued


                                       6
<PAGE>
              KRUPP REALTY LIMITED PARTNERSHIP-VII AND SUBSIDIARIES

              NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued

(3)  Related Party Transactions

     During 2001, the  partnership  paid  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 Nine Months
                                Ended September 30,       Ended September 30,
                             ------------------------  ------------------------
                                2002         2001         2002          2001
                             -----------  -----------  -----------  -----------

     Property management fees$         -  $    40,761  $     7,794  $   133,062

     Expenses reimbursement           83       69,735          258      255,322
                             -----------  -----------  -----------  -----------
       Charged to operations $        83  $   110,496  $     8,052  $   388,384
                             ===========  ===========  ===========  ===========

     Expense  reimbursements  due from affiliates of $0 and $28,737 was included
     in due  from  affiliates  at  September  30,2002  and  December  31,  2001,
     respectively.






                                       7
<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 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.

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.

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 and nine
months ended September 30, 2002 and 2001.

Net income  decreased  during the three and nine months ended September 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 nine months  ended  September  30,  2002  decreased  when
compared to the nine months ended  September  30, 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 September 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.



                                       8
<PAGE>

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.   All  of  the
Partnership's  debt has a fixed interest rate, which minimizes the interest rate
risk.

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 December 31, 2001.




                                       9
<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






                                       10
<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:  November 14, 2002


                                       11
<PAGE>
Certifications

I, Douglas Krupp, certify that:

1.   I have reviewed this quarterly  report on Form 10-Q of Krupp Realty Limited
     Partnership - VII;

2.   Based on my knowledge,  this  quarterly  report does not contain any untrue
     statement of a material fact or omit to state a material fact  necessary to
     make the statements  made, in light of the  circumstances  under which such
     statements  were made, not misleading with respect to the period covered by
     this quarterly report;

3.   Based on my  knowledge,  the  financial  statements,  and  other  financial
     information  included  in this  quarterly  report,  fairly  present  in all
     material respects the financial  condition,  results of operations and cash
     flows of the  registrant  as of, and for,  the  periods  presented  in this
     quarterly report;

4.   The  registrant's  other  certifying  officers  and I are  responsible  for
     establishing and maintaining disclosure controls and procedures (as defined
     in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

     a)   designed  such  disclosure  controls  and  procedures  to ensure  that
          material  information  relating  to  the  registrant,   including  its
          consolidated subsidiaries,  is made known to us by others within those
          entities,  particularly  during  the  period in which  this  quarterly
          report is being prepared;

     b)   evaluated the  effectiveness of the registrant's  disclosure  controls
          and procedures as of a date within 90 days prior to the filing date of
          this quarterly report (the "Evaluation Date"); and

     c)   presented  in  this  quarterly   report  our  conclusions   about  the
          effectiveness  of the disclosure  controls and procedures based on our
          evaluation as of the Evaluation Date;

5.   The registrant's other certifying  officers and I have disclosed,  based on
     our most recent  evaluation,  to the  registrant's  auditors  and the audit
     committee of  registrant's  board of directors (or persons  performing  the
     equivalent function):

     a)   all  significant  deficiencies  in the design or operation of internal
          controls  which could  adversely  affect the  registrant's  ability to
          record,  process,   summarize  and  report  financial  data  and  have
          identified for the  registrant's  auditors any material  weaknesses in
          internal controls; and

     b)   any fraud, whether or not material,  that involves management or other
          employees who have a  significant  role in the  registrant's  internal
          controls; and

6.   The  registrant's  other  certifying  officers and I have indicated in this
     quarterly report whether or not there were significant  changes in internal
     controls  or in other  factors  that could  significantly  affect  internal
     controls  subsequent to the date of our most recent  evaluation,  including
     any corrective actions with regard to significant deficiencies and material
     weaknesses.

Date: November 14, 2002



                                /s/ Douglas Krupp
                           ---------------------------
                                  Douglas Krupp
                           Principal Executive Officer

                                       12
<PAGE>

Certifications

I, David C. Quade, certify that:

1.   I have reviewed this quarterly  report on Form 10-Q of Krupp Realty Limited
     Partnership - VII;

2.   Based on my knowledge,  this  quarterly  report does not contain any untrue
     statement of a material fact or omit to state a material fact  necessary to
     make the statements  made, in light of the  circumstances  under which such
     statements  were made, not misleading with respect to the period covered by
     this quarterly report;

2.   Based on my  knowledge,  the  financial  statements,  and  other  financial
     information  included  in this  quarterly  report,  fairly  present  in all
     material respects the financial  condition,  results of operations and cash
     flows of the  registrant  as of, and for,  the  periods  presented  in this
     quarterly report;

3.   The  registrant's  other  certifying  officers  and I are  responsible  for
     establishing and maintaining disclosure controls and procedures (as defined
     in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

     a)   designed  such  disclosure  controls  and  procedures  to ensure  that
          material  information  relating  to  the  registrant,   including  its
          consolidated subsidiaries,  is made known to us by others within those
          entities,  particularly  during  the  period in which  this  quarterly
          report is being prepared;

     b)   evaluated the  effectiveness of the registrant's  disclosure  controls
          and procedures as of a date within 90 days prior to the filing date of
          this quarterly report (the "Evaluation Date"); and

     c)   presented  in  this  quarterly   report  our  conclusions   about  the
          effectiveness  of the disclosure  controls and procedures based on our
          evaluation as of the Evaluation Date;

4.   The registrant's other certifying  officers and I have disclosed,  based on
     our most recent  evaluation,  to the  registrant's  auditors  and the audit
     committee of  registrant's  board of directors (or persons  performing  the
     equivalent function):

     a)   all  significant  deficiencies  in the design or operation of internal
          controls  which could  adversely  affect the  registrant's  ability to
          record,  process,   summarize  and  report  financial  data  and  have
          identified for the  registrant's  auditors any material  weaknesses in
          internal controls; and

     b)   any fraud, whether or not material,  that involves management or other
          employees who have a  significant  role in the  registrant's  internal
          controls; and

5.   The  registrant's  other  certifying  officers and I have indicated in this
     quarterly report whether or not there were significant  changes in internal
     controls  or in other  factors  that could  significantly  affect  internal
     controls  subsequent to the date of our most recent  evaluation,  including
     any corrective actions with regard to significant deficiencies and material
     weaknesses.

Date: November 14, 2002



                               /s/ David C. Quade
                            ------------------------
                                 David C. Quade
                            Principal Accounting Officer

                                       13
<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  September  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
          September 30, 2002 and the results of  operations  of the  Partnership
          for the three months period then ended.




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













                                       14