<PAGE>

                    U.S. SECURITIES AND EXCHANGE COMMISSION
                            Washington D.C.  20549

                                  FORM 10-QSB


(Mark One)
[X]   QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
      OF 1934


                 For the quarterly period ended March 31, 2000
                                                --------------


[_]   TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT



            For the transition period from __________ to __________


                      Commission file number   000-21722
                                              -----------


          WINDSOR PARK PROPERTIES 7, A CALIFORNIA LIMITED PARTNERSHIP
          -----------------------------------------------------------
       (Exact name of small business issuer as specified in its charter)


           California                                       33-0363181
---------------------------------              ---------------------------------
  (State or other jurisdiction                 (IRS Employer Identification No.)
of incorporation or organization)


           6160 So. Syracuse Way, Greenwood Village, Colorado  80111
           ---------------------------------------------------------
                   (Address of principal executive offices)



                                (303) 741-3707
                                --------------
                          (Issuer's telephone number)



Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 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  (   )
     -----         -----

Transitional small business disclosure format (check one): Yes [_]  No [X]

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                               TABLE OF CONTENTS

                                    PART I
                                    ------


                                                                            Page
                                                                            ----

Item 1.   Financial Statements                                                2

Item 2.   Management's Discussion and Analysis of Financial
          Condition and Results of Operations                                 7


                                    PART II
                                    -------

Item 6.   Exhibits and Reports on Form 8-K                                    9

          SIGNATURE                                                          10


<PAGE>

                                    PART I
                                    ------

Certain matters discussed under "Management's Discussion and Analysis of
Financial Condition and Results of Operations" and elsewhere in this Quarterly
Report on Form 10-QSB may constitute forward-looking statements and as such
involve known and unknown risks, uncertainties and other factors which may cause
the actual results, performance or achievements of Windsor Park Properties 7, A
California Limited Partnership, to be materially different from any future
results, performance or achievements expressed or implied by such forward-
looking statements.


                                       1
<PAGE>
Item 1.  Financial Statements


                           WINDSOR PARK PROPERTIES 7
                           -------------------------
                      (A California Limited Partnership)

                                 BALANCE SHEET
                                 -------------

<TABLE>
<CAPTION>

ASSETS                                                          March 31, 2000
------                                                          --------------
<S>                                                             <C>
Property held for investment, net                               $   10,259,100
Investments in joint ventures and limited partnerships               4,304,700
Cash and cash equivalents                                              260,000
Deferred financing costs, net                                          100,500
Other assets                                                           153,400
                                                                --------------
Total Assets                                                    $   15,077,700
                                                                ==============

LIABILITIES AND PARTNERS' EQUITY
--------------------------------
Liabilities:
   Mortgage notes payable                                       $    7,220,000
   Accrued expenses                                                    263,400
   Due to general partners and affiliates                              201,800
   Tenant deposits and other liabilities                                44,800
                                                                --------------
Total Liabilities                                                    7,730,000
                                                                --------------

Partners' Equity:
   Limited partners                                                  7,406,500
   General partners                                                    (58,800)
                                                                --------------
Total Partners' Equity                                               7,347,700
                                                                --------------
Total Liabilities and Partners' Equity                          $   15,077,700
                                                                ==============
</TABLE>


                See accompanying notes to financial statements.

                                       2
<PAGE>

                           WINDSOR PARK PROPERTIES 7
                           -------------------------
                      (A California Limited Partnership)

                           STATEMENTS OF OPERATIONS
                           ------------------------

<TABLE>
<CAPTION>
                                                                         Three Months Ended March 31,
                                                                         ----------------------------
                                                                            2000              1999
                                                                         ---------          ---------
<S>                                                                      <C>                <C>
REVENUES
--------
Rent and Utilities                                                       $ 711,200          $ 678,100
Equity in earnings of joint ventures and limited partnerships               54,200             67,400
Interest                                                                       500                400
Other                                                                        6,200              5,700
                                                                         ---------          ---------
                                                                           772,100            751,600
                                                                         ---------          ---------

COSTS AND EXPENSES
------------------
Property operating                                                         316,000            269,400
Interest                                                                   172,700            158,900
Depreciation                                                               150,700            153,500
General and administrative:
   Related parties                                                           7,000              8,900
   Other                                                                    34,400             13,500
                                                                         ---------          ---------
                                                                           680,800            604,200
                                                                         ---------          ---------
Net income                                                               $  91,300          $ 147,400
                                                                         =========          =========
Net income - general partners                                            $     900          $   1,500
                                                                         =========          =========
Net income - limited partners                                            $  90,400          $ 145,900
                                                                         =========          =========
Basic and diluted earnings per limited partnership unit                  $    0.59          $    0.94
                                                                         =========          =========
</TABLE>


                See accompanying notes to financial statements.


                                       3
<PAGE>

                           WINDSOR PARK PROPERTIES 7
                           -------------------------
                      (A California Limited Partnership)

                           STATEMENTS OF CASH FLOWS
                           ------------------------

<TABLE>
<CAPTION>
                                                                                          Three Months Ended March 31,
                                                                                      ------------------------------------
                                                                                        2000                       1999
                                                                                      ---------                  ---------
<S>                                                                                   <C>                        <C>
Cash flows from operating activities:
   Net income                                                                         $  91,300                  $ 147,400
   Adjustments to reconcile net income to net cash
   provided by operating activities:
      Depreciation                                                                      150,700                    153,500
      Equity in earnings of joint ventures and limited partnerships                     (54,200)                   (67,400)
      Joint ventures' and limited partnerships cash distributions                        54,200                     67,400
      Amortization of deferred financing costs                                           10,600                     10,600
   Changes in operating assets and liabilities:
      Increase in other assets                                                          (22,600)                   (28,400)
      Decrease in accounts payable                                                            -                     (1,600)
      Increase in due to general partners and affiliates                                 90,500                     44,100
      Increase in accued expenses                                                        36,600                     43,600
      Increase (decrease) in tenant deposits and other liabilities                         (300)                       100
                                                                                      ---------                  ---------
Net cash provided by operating activities                                               356,800                    369,300
                                                                                      ---------                  ---------
Cash flows from investing activities:
   Increase in property held for investment                                             (13,800)                   (22,600)
   Joint ventures' and limited partnerships' cash distributions                          42,600                     56,100
                                                                                      ---------                  ---------
   Net cash provided by investing activities                                             28,800                     33,500
                                                                                      ---------                  ---------
Cash flows from financing activities:
   Cash distributions to partners                                                      (291,100)                  (293,100)
   Repurchase of limited partnership units                                              (29,700)                    (4,400)
                                                                                      ---------                  ---------
Net cash used in financing activities                                                  (320,800)                  (297,500)
                                                                                      ---------                  ---------
Net decrease in cash and cash equivalents                                             $  64,800                  $ 105,300

Cash and cash equivalents at beginning of period                                        195,200                    183,600
                                                                                      ---------                  ---------
Cash and cash equivalents at end of period                                            $ 260,000                  $ 288,900
                                                                                      =========                  =========
</TABLE>

                See accompanying notes to financial statements.


                                       4
<PAGE>

                           WINDSOR PARK PROPERTIES 7
                           -------------------------
                      (A California Limited Partnership)

                         NOTES TO FINANCIAL STATEMENTS
                         -----------------------------

NOTE 1.  THE PARTNERSHIP
         ---------------

Windsor Park Properties 7, A California Limited Partnership (the "Partnership"),
was formed in June 1989 for the purpose of acquiring and holding existing
manufactured home communities for investment.  The General Partners of the
Partnership are The Windsor Corporation, a California corporation ("TWC"), and
John A. Coseo, Jr.  (together with TWC, the "General Partners").  In September
1998, Chateau Communities, Inc., a publicly held real estate investment trust
("Chateau"), purchased 100% of the outstanding shares of capital stock of TWC.

The Partnership was funded through a public offering of 250,000 limited
partnership units at $100 per unit, which commenced in March 1990 and terminated
in January 1992.  The Partnership term is set to expire on December 31, 2005;
however, the Partnership may either be dissolved earlier or extended under
certain circumstances.  The Partnership may be extended at the recommendation of
the General Partners with approval of a majority of the Limited Partners.

At March 31, 2000, the Partnership's portfolio was comprised of five wholly-
owned and five partially owned manufactured home communities located in four
states.

The General Partners are currently exploring possible strategic alternatives for
the Partnership with a view towards providing Limited Partners with the
opportunity to achieve liquidity in their investment.  There can, however, be no
assurances that any such strategic alternative will be consummated or that the
Partnership will not continue in its current form until the end of its stated
term.

NOTE 2.  BASIS OF PRESENTATION
         ---------------------

The balance sheet at March 31, 2000 and the related statements of operations for
the three months ended March 31, 2000 and 1999 and the statements of cash flows
for the three months ended March 31, 2000 and 1999 are unaudited.  However, in
the opinion of the General Partners, they contain all adjustments, of a normal
recurring nature, necessary for a fair presentation of such financial
statements.  Interim results are not necessarily indicative of results for a
full year.

The financial statements and notes are presented as permitted by Form 10-QSB and
do not contain certain information included in the Partnership's annual
financial statements and notes on Form 10-KSB for the year ended December 31,
1999.

                                       5
<PAGE>

NOTE 3.  INVESTMENTS IN JOINT VENTURES AND LIMITED PARTNERSHIPS
         ------------------------------------------------------

The Partnership's investments in joint ventures and limited partnerships consist
of interests in five manufactured home communities at March 31, 2000.  The
combined condensed results of operations of the joint venture and limited
partnership properties for the three months ended March 31, 2000 and 1999 are as
follows:

<TABLE>
<CAPTION>
                                                                2000                           1999
                                                       -----------------------        -----------------------
<S>                                                    <C>                            <C>
Property revenues                                      $             1,207,300        $             1,133,700
                                                       -----------------------        -----------------------


Expenses:
   Property operating                                                  624,400                        557,300
   Interest                                                            322,300                        297,100
   Depreciation                                                        195,400                        193,700
   General and Administrative                                            1,200                          2,100
                                                       -----------------------        -----------------------

                                                                     1,143,300                      1,050,200
                                                       -----------------------        -----------------------

Net income                                             $                64,000        $                83,500
                                                       =======================        =======================
</TABLE>


NOTE 4.  BASIC AND DILUTIVE EARNINGS PER LIMITED PARTNERSHIP UNIT
         --------------------------------------------------------

Basic and dilutive earnings per limited partnership unit is calculated based on
the weighted average number of limited partnership units outstanding during the
period and the net income allocated to the Limited Partners.  The weighted
average number of limited partnership units outstanding during the three months
ended March 31, 2000 and 1999 was 153,449 and 154,578, respectively.

NOTE 5.  DISTRIBUTIONS TO LIMITED PARTNERS
         ---------------------------------

Distributions to Limited Partners in excess of net income allocated to Limited
Partners are considered a return of capital.  A breakdown of cash distributions
to Limited Partners for the three months ended March 31, 2000 and 1999 follows:

<TABLE>
<CAPTION>
                                              2000                                   1999
                               ---------------------------------      ---------------------------------
                                    Amount            Per Unit             Amount            Per Unit
                               ----------------     ------------      ----------------     ------------
<S>                            <C>                  <C>               <C>                  <C>
Net income
  Limited Partners             $         90,400     $       0.59      $        145,900     $       0.94
Return of captial                       197,700             1.29               144,200             0.94
                               ----------------     ------------      ----------------     ------------
Total distributions            $        288,100     $       1.88      $        290,100     $       1.88
                               ================     ============      ================     ============
</TABLE>

                                       6
<PAGE>

Item 2.
-------

               Management's Discussion and Analysis of Financial
                      Condition and Results of Operations

Three months ended March 31, 2000 as compared to three months ended March 31,
-----------------------------------------------------------------------------
1999
----

The following discussion should be read in conjunction with the financial
statements and notes thereto included elsewhere in this Form 10-QSB.

Results of Operations
---------------------

The Partnership realized net income of $91,300 and $147,400 for the three months
ended March 31, 2000 and 1999, respectively.  Net income per limited partnership
unit was $0.59 in 2000 compared to $0.94 in 1999.

Rent and utilities revenues increased from $678,100 in 1999 to $711,200 in 2000
due to rental increases at the properties.

Equity in earnings of joint ventures and limited partnerships represents the
Partnership's share of the net income of five manufactured home communities held
by joint ventures and limited partnerships.  Equity in earnings of joint
ventures and limited partnerships decreased from $67,400 in 1999 to $54,200 in
2000, primarily due to increased bad debt expense at the Rancho Margate
community and increased utility expenses at the Carefree, Garden Walk, and Long
Lake communities.

Property operating expenses increased from $269,400 in 1999 to $316,000 in 2000
due mainly to increased payroll and utility expenses at the North Glen Village
and The Hills communities.

Interest expense increased from $158,900 in 1999 to $172,700 in 2000 due to
higher interest rates.

General and administrative expenses increased from $22,400 in 1999 to $41,400 in
2000 due mainly to increased legal and accounting fees.

Liquidity and Capital Resources
-------------------------------

The Partnership's principal sources of liquidity during the three months ended
March 31, 2000 and 1999 were its cash flow generated from the operation of its
communities and distributions from investments in joint ventures and limited
partnerships.  Net cash provided by operating activities was $356,800 and
$369,300 for the three months ended March 31, 2000 and 1999, respectively.  At
March 31, 2000, the Partnership's cash amounted to $260,000.

The Partnership's primary uses of its capital resources during the same periods
were for cash distributions to partners and debt service.  Cash distributions to
partners totaled $291,100 and $293,100 for the three months ended March 31, 2000
and 1999, respectively.

The Partnership's principal long-term liquidity requirement will be the
repayment of principal on its outstanding mortgage debt. At March 31, 2000, the
Partnership's total mortgage debt, including its proportionate share of joint
venture and limited partnership debt, was $14,829,700, consisting of $1,500,000
of fixed rate debt and $13,329,700 of variable rate debt.  The average rate of
interest on the fixed and variable rate debt was 8.82% and 9.02%, respectively,
at March 31, 2000.

The future sources of liquidity for the Partnership will be provided from
property operations, cash reserves and ultimately from the sale of its
communities and investments in joint ventures and limited partnerships. The
Partnership expects to meet its short-term liquidity requirements, including
capital expenditures,


                                       7
<PAGE>

administration expenses, debt service, and distributions to partners, from cash
flow provided from property operations and distributions from investments in
joint ventures and limited partnerships. The Partnership expects to meet its
long-term liquidity requirement through the sale of its communities and
investments in joint ventures and limited partnerships, and cash reserves.

Inflation
---------

All of the leases or terms of tenants' occupancies at the properties allow for
at least annual rental adjustments.  In addition, all of the leases are month-
to-month and enable the Partnership to seek market rentals upon reletting the
sites.  Such leases generally minimize the risk to the Partnership of any
adverse effect of inflation.

                                       8
<PAGE>

PART II
-------


Item 6.  EXHIBITS AND REPORTS ON FORM 8-K
         --------------------------------

     a)  Exhibits and Index of Exhibits

                (27)    Financial Data Schedule

     b)  Reports on Form 8-K

                None



                                       9
<PAGE>

                                   SIGNATURE

In accordance with the requirements of the Exchange Act the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.


                       WINDSOR PARK PROPERTIES 7,
                       A California Limited Partnership


                       By: The Windsor Corporation, its Managing General Partner



                       By  /s/ Steven G. Waite
                           ---------------------------------
                           STEVEN G. WAITE
                           President


Date: May 15, 2000

                                       10