SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

Quarterly Report Under Section 13 or 15(d) of the Securities Exchange Act of
1934

FOR QUARTER ENDED JUNE 30, 1995

COMMISSION FILE NUMBER 2-84816

REAL ESTATE ASSOCIATES LIMITED VII

A CALIFORNIA LIMITED PARTNERSHIP

I.R.S. EMPLOYER IDENTIFICATION NO. 95-3290316

9090 Wilshire Blvd., Suite 201
Beverly Hills, Calif. 90211

Registrant's Telephone Number,
Including Area Code (310) 278-2191

Securities Registered Pursuant to
Section 12(b) or 12(g) of the Act

NONE

Indicate by check mark whether the registrant (1) has filed all reports
required to be filed with the Commission by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding twelve 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
----- -----
2

REAL ESTATE ASSOCIATES LIMITED VII
(A CALIFORNIA LIMITED PARTNERSHIP)

INDEX TO FORM 10-Q

FOR THE QUARTER ENDED JUNE 30, 1995

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

Balance Sheets, June 30, 1995 and December 31, 1994 . . . . . . . . . . . . . . . . . . . . . 1

Statements of Operations,
Six and Three Months Ended June 30, 1995 and 1994 . . . . . . . . . . . . . . . . . . 2

Statement of Partners' Deficiency,
Six Months Ended June 30, 1995 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Statements of Cash Flows,
Six Months Ended June 30, 1995 and 1994 . . . . . . . . . . . . . . . . . . . . . . . 4

Notes to Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Item 2. Management's Analysis and Discussion of Financial
Condition and Results of Operation . . . . . . . . . . . . . . . . . . . . . . . . . . 8

PART II. OTHER INFORMATION

Item 1. Legal Proceedings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

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

Signatures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

REAL ESTATE ASSOCIATES LIMITED VII
(A CALIFORNIA LIMITED PARTNERSHIP)

BALANCE SHEETS

JUNE 30, 1995 AND DECEMBER 31, 1994

ASSETS

1995 1994
(Unaudited) (Audited)
------------ ------------

INVESTMENTS IN AND ADVANCES TO LIMITED
PARTNERSHIPS $ 18,883,710 $ 19,757,594

CASH 482,198 498,954

SHORT-TERM INVESTMENTS 125,000 125,000

OTHER ASSETS 33,129 29,568
------------ ------------

TOTAL ASSETS $ 19,524,037 $ 20,411,116
============ ============

LIABILITIES AND PARTNERS' DEFICIENCY

LIABILITIES:

NOTES PAYABLE $ 24,869,501 $ 24,869,501

ACCRUED INTEREST PAYABLE 21,352,354 20,514,472

ACCRUED FEES DUE GENERAL PARTNER 2,378,394 2,041,574

ACCOUNTS PAYABLE AND OTHER LIABILITIES 11,950 17,101
------------ ------------

48,612,199 47,442,648

PARTNERS' DEFICIENCY (29,088,162) (27,031,532)
------------ ------------

TOTAL LIABILITIES AND PARTNERS' DEFICIENCY $ 19,524,037 $ 20,411,116
============ ============

The accompanying notes are an integral part of these financial statements.

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REAL ESTATE ASSOCIATES LIMITED VII
(A CALIFORNIA LIMITED PARTNERSHIP)

STATEMENTS OF OPERATIONS

SIX AND THREE MONTHS ENDED JUNE 30, 1995 AND 1994

(Unaudited)

Six months Three months Six months Three months
ended ended ended ended
June 30, 1995 June 30, 1995 June 30, 1994 June 30, 1994
------------- ------------- ------------- -------------

INTEREST INCOME $ 10,996 $ 5,906 $ 6,477 $ 3,834
----------- --------- ----------- ----------

OPERATING EXPENSES:
Interest expense 1,161,713 575,587 1,172,253 586,126
Management fees-general partner 371,820 185,910 371,820 185,910
General and administrative 51,375 28,966 55,675 31,969
Legal and accounting 56,215 7,375 49,174 5,702
----------- --------- ----------- ----------

Total operating expenses 1,641,123 797,838 1,648,922 809,707
----------- --------- ----------- ----------

LOSS FROM OPERATIONS (1,630,127) (791,932) (1,642,445) (805,873)

DISTRIBUTIONS RECOGNIZED
AS INCOME 23,497 23,497 164,526 164,526

EQUITY IN LOSS OF LIMITED
PARTNERSHIPS AND AMORTI-
ZATION OF ACQUISITION
COSTS (450,000) (225,000) (284,000) (142,000)
----------- --------- ----------- ---------

NET LOSS $(2,056,630) $(993,435) $(1,761,919) $(783,347)
=========== ========= =========== =========

The accompanying notes are an integral part of these financial statements.

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5

REAL ESTATE ASSOCIATES LIMITED VII
(A CALIFORNIA LIMITED PARTNERSHIP)

STATEMENT OF PARTNERS' DEFICIENCY

SIX MONTHS ENDED JUNE 30, 1995

(Unaudited)

General Limited
Partners Partners Total
----------- ------------ ------------

PARTNERSHIP INTERESTS
June 30, 1995 20,802
============

PARTNERS' DEFICIENCY,
at January 1, 1995 $(593,446) $(26,438,086) $(27,031,532)

Net loss for the six months
ended June 30, 1995 (20,566) (2,036,064) (2,056,630)
--------- ------------ ------------

PARTNERS' DEFICIENCY,
at June 30, 1995 $(614,012) $(28,474,150) $(29,088,162)
========= ============ ============

The accompanying notes are an integral part of these financial statements.

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REAL ESTATE ASSOCIATES LIMITED VII
(A CALIFORNIA LIMITED PARTNERSHIP)

STATEMENTS OF CASH FLOW

SIX MONTHS ENDED JUNE 30, 1995 AND 1994

(Unaudited)

1995 1994
----------- -----------

CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $(2,056,630) $(1,761,919)
Adjustments to reconcile net loss to net
cash used in operating activities:
Equity in loss of limited partnership 412,000 246,000
Amortization of acquisition costs 38,000 38,000
Increase in other assets (3,561) (27,346)
Increase (decrease) in -
Accrued interest payable 837,882 763,165
Accrued fees due general partner 336,820 371,820
Accounts payable (5,151) (3,472)
----------- -----------
Net cash used in operating activities (440,640) (373,752)
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Distributions from limited partnerships
recognized as a return of capital 495,884 670,560
Advances to limited partnership (72,000) -
----------- -----------
Net cash provided by investing activities 423,884 670,560
----------- -----------
NET (DECREASE) INCREASE IN CASH AND
CASH EQUIVALENTS (16,756) 296,808

CASH AND CASH EQUIVALENTS, beginning of period 498,954 609,263
----------- -----------
CASH AND CASH EQUIVALENTS, end of period $ 482,198 $ 906,071
=========== ===========

The accompanying notes are an integral part of these financial statements.

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7

REAL ESTATE ASSOCIATES LIMITED VII
(A CALIFORNIA LIMITED PARTNERSHIP)

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 1995

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

GENERAL

The information contained in the following notes to the financial
statements is condensed from that which would appear in the annual
financial statements; accordingly, the financial statements included
herein should be reviewed in conjunction with the financial statements
and related notes thereto contained in the Annual Report for the year
ended December 31, 1994 prepared by Real Estate Associates Limited VII
(the "Partnership."). National Partnership Investments Corp.
("NAPICO") is the corporate general partner of the Partnership.
Accounting measurements at interim dates inherently involve greater
reliance on estimates than at year end. The results of operations for
the interim periods presented are not necessarily indicative of the
results for the entire year.

In the opinion of the Partnership, the accompanying unaudited
financial statements contain all adjustments (consisting primarily of
normal recurring accruals), necessary to present fairly the financial
position of the Partnership at June 30, 1995, and the results of
operations and changes in cash flows for the six months then ended.

METHOD OF ACCOUNTING FOR INVESTMENT IN LIMITED PARTNERSHIPS

The investment in limited partnerships is accounted for on the equity
method. Acquisition, selection and other costs related to the
acquisition of the projects were capitalized as part of the investment
account.

CASH AND CASH EQUIVALENTS

Cash and cash equivalents consist of cash and bank certificates of
deposit.

SHORT TERM INVESTMENTS

Short term investments consist of bank certificates of deposit with
original maturities ranging from more than three months to twelve
months. The fair value of these securities, which have been
classified as held for sale, approximates their carrying value.

INCOME TAXES

No provision has been made for income taxes in the accompanying
financial statements since such taxes, if any, are the liability of
the individual partners.

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8

REAL ESTATE ASSOCIATES LIMITED VII
(A CALIFORNIA LIMITED PARTNERSHIP)

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 1995

NOTE 2 - INVESTMENT IN LIMITED PARTNERSHIPS

The Partnership holds limited partnership interests in 32 limited
partnerships. In addition, the Partnership holds a general partner
interest in REA IV, NAPICO is also the general partner in REA IV. REA
IV, in turn, holds limited partner interests in 16 additional limited
partnerships. In total, therefore, the Partnership holds interests,
either directly or indirectly through REA IV, in 48 partnerships all
of which own residential rental projects consisting of 4,731 apartment
units. The mortgage loans of these projects are insured by various
governmental agencies.

The Partnership, as a limited partner, is entitled to between 98
percent and 99 percent of the profits and losses in the limited
partnerships it has invested in directly. The Partnership is also
entitled to 99 percent of the profits and losses of REA IV. REA IV
holds a 99 percent interest in each of the limited partnerships in
which it has invested.

Equity in losses of limited partnerships is recognized in the
financial statements until the limited partnership investment account
is reduced to a zero balance. Losses incurred after the limited
partnership investment account is reduced to zero are not recognized.

Distributions from the limited partnerships are accounted for as a
return of capital until the investment balance is reduced to zero.
Subsequent distributions received are recognized as income.

The following is a summary of the investment in limited partnerships
as of June 30, 1995:

Balance, beginning of period $19,757,594
Cash distributions recognized as a return of capital (495,884)
Advances to limited partnerships 72,000
Amortization of acquisition costs (38,000)
Equity in loss of limited partnerships (412,000)
-----------
Balance, end of period $18,883,710
===========

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REAL ESTATE ASSOCIATES LIMITED VII
(A CALIFORNIA LIMITED PARTNERSHIP)

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 1995

NOTE 2 - INVESTMENT IN LIMITED PARTNERSHIPS

The following are unaudited combined estimated statements of operations
for the limited partnerships in which the Partnership has investments:

Six months Three months Six months Three months
ended ended ended ended
June 30, 1995 June 30, 1995 June 30, 1994 June 30, 1994
------------- ------------- ------------- -------------

Revenues:
Rental and other $13,254,000 $ 6,627,000 $13,122,000 $6,561,000
----------- ----------- ----------- ----------
Expenses:
Depreciation 2,934,000 1,467,000 2,676,000 1,338,000
Interest 1,936,000 968,000 2,150,000 1,075,000
Operating 9,734,000 4,867,000 9,316,000 4,658,000
----------- ----------- ----------- ----------

14,604,000 7,302,000 14,142,000 7,071,000
----------- ----------- ----------- ----------

Net loss $(1,350,000) $ (675,000) $(1,020,000) $ (510,000)
=========== =========== =========== ==========

NAPICO, or one of its affiliates, is the general partner and property
management agent for certain of the limited partnerships included
above.

NOTE 3 - NOTES PAYABLE

Certain of the Partnership's investments involved purchases of
partnership interests from partners who subsequently withdrew from the
operating partnership. The Partnership is obligated on non-recourse
notes payable, bearing interest at 9 1/2 percent, to the sellers of
the Partnership interests. The notes have principal maturity dates
ranging from December 1996 to December 2002 or upon sale or
refinancing of the underlying partnership properties. These
obligations are collateralized by the Partnership's investments in the
investee partnerships and are payable out of cash distributions from
the investee partnerships, as defined in the notes.

Unpaid interest, equal to $21,352,354 at June 30, 1995, is due at
maturity of the notes.

NOTE 4 - ACCRUED FEES AND EXPENSES DUE TO GENERAL PARTNER

Under the terms of the Restated Certificate and Agreement of Limited
Partnership, the Partnership is obligated to the general partners for
an annual management fee equal to .5 percent of the invested assets of
the partnerships. Invested assets is defined as the costs of
acquiring project interests, including the proportionate amount of the
mortgage loans related to the Partnership's interests in the capital
accounts of the respective partnerships. The fee was approximately
$372,000 for the six months ended June 30, 1995 and 1994.

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10

REAL ESTATE ASSOCIATES LIMITED VII
(A CALIFORNIA LIMITED PARTNERSHIP)

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 1995

NOTE 4 - ACCRUED FEES AND EXPENSES DUE TO GENERAL PARTNER (CONTINUED)

The Partnership reimburses NAPICO for certain expenses. In 1995, the
reimbursement to NAPICO of $13,300 was paid and included in the
Partnership's operating expenses.

NOTE 5 - CONTINGENCIES

The corporate general partner of the Partnership and the Partnership
are plaintiffs in various lawsuits and have also been named defendants
in other lawsuits arising from transactions in the ordinary course of
business. In the opinion of management, and the corporate general
partner, the claims will not result in any material liability to the
Partnership.

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REAL ESTATE ASSOCIATES LIMITED VII
(A CALIFORNIA LIMITED PARTNERSHIP)

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 1995

ITEM 2. MANAGEMENT'S ANALYSIS AND DISCUSSION OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS

LIQUIDITY AND CAPITAL RESOURCES

The Partnership's primary sources of funds include interest income
earned from investing available cash and distributions from limited
partnerships in which the Partnership has invested. It is not
expected that any of the local limited partnerships in which the
Partnership has invested will generate cash flow sufficient to provide
for distributions to limited partners in any material amount.

RESULTS OF OPERATIONS

Partnership revenues consist primarily of interest income earned on
certificates of deposit and other temporary investment of funds not
requred for investment in local partnerships.

Operating expenses consist primarily of recurring general and
administrative expenses and professional fees for services rendered to
the Partnership. In addition, an annual Partnership management fee in
an amount equal to .5 percent of invested assets is payable to the
corporate general partner.

The Partnership accounts for its investments in the local limited
partnerships on the equity method, thereby adjusting its investment
balance by its proportionate share of the income or loss of the local
limited partnerships. Losses incurred after the limited partnership
account is reduced to zero are not recognized.

Distributions received from limited partnerships are recognized as
return of capital until the investment balance has been reduced to
zero or to a negative amount equal to future capital contributions
required. Subsequent distributions received are recognized as income.

Except for certificates of deposit and money market funds, the
Partnership's investments are entirely interests in other limited and
general partnerships owning government assisted projects. Available
cash is invested in money market funds and certificates of deposit
which provide interest income as reflected in the statement of
operations. These temporary investments can be easily converted to
cash to meet obligations as they arise. The Partnership intends to
continue investing available funds in this manner.

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12

REAL ESTATE ASSOCIATES LIMITED VII
(A CALIFORNIA LIMITED PARTNERSHIP)

JUNE 30, 1995

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

As of June 30, 1995, the Partnership's Corporate General Partner was a
plaintiff or defendant in several suits, including the following related to
REAL VII:

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

(a) No exhibits are required per the provision of item 7 of regulation
S-K.

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REAL ESTATE ASSOCIATES LIMITED VII
(A CALIFORNIA LIMITED PARTNERSHIP)

JUNE 30, 1995

SIGNATURES

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.

REAL ESTATE ASSOCIATES LIMITED VII
(a California limited partnership)

By: National Partnership Investments Corp.,
General Partner

Date:
---------------------------------------

By:
----------------------------------------
Bruce Nelson
President

Date:
--------------------------------------

By:
--------------------------------------
Shawn Horwitz
Executive Vice President and
Chief Financial Officer