UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q

(Mark One)



þ	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended ~~March~~June 3130, 2016



¨	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 0-53962

Resource Real Estate Investors 7, L.P.

(Exact name of registrant as specified in its charter)



Delaware		26-2726308
(State or other jurisdiction of		(I.R.S. Employer
incorporation or organization)		Identification No.)

One Crescent Drive, Suite 203, Navy Yard Corporate Center, Philadelphia, PA 19112

(Address of principal executive offices) (Zip code)

(215) 231-7050

(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 þ No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes þ No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.



Large accelerated filer	o		Accelerated filer	o
Non-accelerated filer	o	(Do not check if a smaller reporting company)	Smaller reporting company	þ

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No þ

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RESOURCE REAL ESTATE INVESTORS 7, L.P.

INDEX TO ANNUAL REPORT

ON FORM 10-Q

		PAGE
PART I	FINANCIAL INFORMATION
ITEM 1.	Financial Statements
	Consolidated Balance Sheets - March 31, 2016 (unaudited) and December 31, 2015	3
	Consolidated Balance Sheets - June 30, 2016 (unaudited) and December 31, 2015	3
	Consolidated Statements of Operations -Three Months Ended March 31, 2016 and 2015 (unaudited)	4
	Consolidated Statements of Operations -Three and Six Months Ended June 30, 2016 and 2015 (unaudited)	4
	Consolidated Statement of Changes in Partners’ CapitalThree Months Ended March 31, 2016 (unaudited)	5
	Consolidated Statement of Changes in Partners’ CapitalSix Months Ended June 30, 2016 (unaudited)	5
	Consolidated Statements of Cash Flows Three Months Ended March 31, 2016 and 2015 (unaudited)	6
	Consolidated Statements of Cash Flows Six Months Ended June 30, 2016 and 2015 (unaudited)	6
	Notes to Consolidated Financial Statements - March 31, 2016 (unaudited)	7
	Notes to Consolidated Financial Statements - June 30, 2016 (unaudited)	7
ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	1516
ITEM 3.	Quantitative and Qualitative Disclosures about Market Risk	2022
ITEM 4.	Controls and Procedures	2022
PART II	OTHER INFORMATION
ITEM 6.	Exhibits	2022
SIGNATURES		2224

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PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

RESOURCE REAL ESTATE INVESTORS 7, L.P.

CONSOLIDATED BALANCE SHEETS

(in thousands)

	March 31, 2016			December 31, 2015
	June 30, 2016			December 31, 2015
	(unaudited)
ASSETS
Rental properties, at cost:
Land	$	4,201		$	4,201
Buildings and improvements	32,~~020~~070			31,920
Personal property	1,~~588~~630			1,551
Identifiable intangible assets	1,497			1,497
Total rental properties, at cost	39,~~306~~398			39,169
Accumulated depreciation and amortization	(10,~~010~~382		)	(9,634		)
Total rental properties, net	29,~~296~~016			29,535
Cash	65,~~449~~862			6,702
Restricted cash	~~801~~1,024			1,600
Tenant receivables, net	1020			70
Accounts receivable due from related parties	86216			171
Prepaid expenses and other assets	46149			71
Total assets	$	36,688		$	38,149
Accounts Receivable - other	304			—
Total assets	$	36,591		$	38,149
LIABILITIES AND PARTNERS’ CAPITAL
Liabilities:
Mortgage notes payable, net	$	25,~~539~~450		$	25,630
Accounts payable and accrued expenses	~~524~~427			574
Real estate tax payable	~~307~~626			1,132
Accrued interest	~~115~~111			116
Payables to related parties	~~146~~212			138
Prepaid rent	~~114~~65			114
Security deposits	~~169~~172			170
Total liabilities	2627,~~914~~063			27,874
Partners’ capital	9,~~774~~528			10,275
Total liabilities and partners’ capital	$	36,~~688~~591		$	38,149

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

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RESOURCE REAL ESTATE INVESTORS 7, L.P.

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per unit data)

(unaudited)

	Three Months Ended						Six Months Ended
	March 31,
	June 30,						June 30,
	2016			2015			2016			2015
Revenues:
Rental income	$	2,~~039~~062		$	2,~~993~~463		$	4,101		$	5,456
Expenses:
Rental operating	1,~~217~~119			1,~~442~~249			2,336			2,690
Management fees – related parties	~~148~~145			~~228~~182			293			411
General and administrative	~~208~~81			~~200~~138			289			338
Depreciation and amortization	~~377~~376			~~498~~497			753			995
Total expenses	1,~~950~~721			2,~~368~~066			3,671			4,434
Income before other income (expense)	89341			~~625~~397			430			1,022
Other income (expense):
Interest expense, net	(~~359~~358		)	(~~651~~462		)	(716		)	(1,113		)
Gain on sale of rental property	10—			~~9,603~~—			10			9,603
Loss on disposal of fixed assets	(1—		)	—			(2		)	—
Total other income (expenses)	$	(~~350~~358	)	$	~~8,952~~(462	)	$	(708	)	$	8,490
Net (loss) income	$	(~~261~~17	)	$	~~9,577~~(65	)	$	(278	)	$	9,512
Weighted average number of limited partner units outstanding	3,270			3,270			3,270			3,270
Net (loss) income per weighted average limited partner unit, basic and diluted	$	(0.0801	)	$	2(0.9302	)	$	(0.09	)	$	2.91

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

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RESOURCE REAL ESTATE INVESTORS 7, L.P.

CONSOLIDATED STATEMENT OF CHANGES IN PARTNERS’ CAPITAL

FOR THE ~~THREE~~SIX MONTHS ENDED ~~MARCH~~JUNE 3130, 2016

(in thousands, except units)

(unaudited)

	General		Limited Partners
	Partner		Units	Amount			Total
Balance at January 1, 2016	$	1	3,269,655	$	10,274		$	10,275
Distributions	—		—	(~~240~~469		)	(~~240~~469		)
Net loss	—		—	(~~261~~278		)	(~~261~~278		)
Balance at March 31, 2016	$	1	3,269,655	$	9,773		$	9,774
Balance at June 30, 2016	$	1	3,269,655	$	9,527		$	9,528

The accompanying notes are an integral part of this consolidated financial statement.

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RESOURCE REAL ESTATE INVESTORS 7, L.P.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

	Three Months Ended
	Six Months Ended
	March 31,
	June 30,
	2016			2015
Cash flows from operating activities:
Net (loss) income	$	(~~261~~278	)	$9,512	~~9,577~~
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities:
Gain on sale of rental properties	(10		)	(9,603		)
Depreciation and amortization	~~377~~753			~~498~~995
Amortization of deferred financing costs	2142			4781
Loss on disposal of fixed assets	12			—
Changes in operating assets and liabilities:
Restricted cash	~~799~~626			~~603~~750
Tenant receivables, net	6050			2(8		)
Prepaid expense and other assets	25			21
Accounts receivable - other	(304		)	—
Accounts receivable due from related parties	85			34
Prepaid expense and other assets	(78		)	(50		)
Accounts payable and accrued expenses	(50		)	272
Accounts receivable due from related parties	(45		)	(80		)
Real estate tax payable	(825		)	(719		)
Accounts payable and accrued expenses	(147		)	189
Accrued interest	(1		)	(3		)
Real estate tax payable	(506		)	(451		)
Payables to related parties	8			(1,919		)
Accrued interest	(5		)	(28		)
Prepaid rent	—			(31		)
Payables to related parties	74			(1,853		)
Security deposits	(1		)	(4		)
Prepaid rent	(49		)	(8		)
Net cash provided by (used in) operating activities	228			(1,225		)
Security deposits	2			5
Net cash provided by (used in) operating activities	127			(549		)
Cash flows from investing activities:
Capital expenditures	(~~139~~236		)	(72182		)
Restricted cash	(50		)	258
Proceeds from sale of rental property	10			11,683
Net cash (used in) provided by investing activities	(~~129~~276		)	11,~~611~~759
Cash flows from financing activities:
Distributions to limited partners	(~~240~~469		)	(9,~~341~~722		)
Principal payments on mortgage notes payable	(~~112~~222		)	(~~190~~300		)
Net cash used in financing activities	(~~352~~691		)	(910,~~531~~022		)
Net (decrease) increase in cash	(~~253~~840		)	~~855~~1,188
Cash at beginning of period	6,702			4,483
Cash at end of period	$	65,~~449~~862		$	5,~~338~~671
Non-cash Investing and Financing Activities
Settlement of mortgage notes payable with proceeds from sale of rental property	$	—		$	(12,452	)

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

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RESOURCE REAL ESTATE INVESTORS 7, L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

~~MARCH 31~~JUNE 30, 2016

(unaudited)

NOTE 1 - NATURE OF BUSINESS AND OPERATIONS

Resource Real Estate Investors 7, L.P. (“R-7” or the “Partnership”) is a Delaware limited partnership which owns and operates multifamily residential rental properties located in Texas and South Carolina (the “Properties”). The Partnership also may invest in interests in real estate mortgages and other debt instruments that are secured, directly or indirectly, by multifamily residential rental properties, although the Partnership held no such investments as of ~~March~~June 3130, 2016 and December 31, 2015. The Partnership was formed on March 28, 2008 and commenced operations on June 16, 2008. The General Partner, Resource Capital Partners, Inc. (“RCP”, the “General Partner”, or the “GP”), is in the business of sponsoring and managing real estate investment limited partnerships and tenant in common programs. RCP contributed $1,000 in cash as its minimum capital contribution to the Partnership. In addition, RCP held a 5.62% limited partnership interest in the Partnership at ~~March~~June 3130, 2016 and December 31, 2015. RCP is an indirect wholly owned subsidiary of Resource America, Inc. (“RAI”), a publicly traded company (NASDAQ: REXI) operating in the real estate, financial fund management and commercial finance sectors.

In accordance with the First Amended and Restated Agreement of Limited Partnership (the “Agreement”), the GP has the right to extend the Partnership term for a maximum of two years in the aggregate following the initial termination date. In February 2016, the GP extended the Partnership term for one year until March 28, 2017. The Partnership has begun the process of dissolution through the strategic disposal of assets. On March 19, 2015, the Partnership sold its interest in Woodland Hills. On December 1, 2015, the Partnership sold its interest in Tamarlane. The remaining Properties are expected to be disposed of later in 2016.

The Agreement provides that income is allocated as follows: first, to the Limited Partners (“LPs”) and the GP (collectively, the “Partners”) in proportion to and to the extent of the deficit balances, if any, in their respective capital accounts; second, to the Partners in proportion to the allocations of Distributable Cash (as defined in the Agreement); and third, 100% to the LPs. All losses are allocated as follows: first, 100% to the LPs until the LPs have been allocated losses equal to the excess, if any, of their aggregate capital account balances over the aggregate Adjusted Capital Contributions (as defined in the Agreement); second, to the Partners in proportion to and to the extent of their respective remaining positive capital account balances, if any; and third, 100% to the LPs.

Distributable cash from operations, payable monthly, as determined by the GP, is first allocated 100% to the LPs until the LP’s have received their Preferred Return (as defined in the Agreement); and thereafter, 80% to the LPs and 20% to the GP.

Distributable cash from capital transactions, as determined by the GP, is first allocated 100% to the LPs until the LPs have received their Preferred Return; second, 100% to the LPs until their Adjusted Capital Contributions have been reduced to zero; and thereafter, 80% to the LPs and 20% to the GP.

The consolidated financial statements and the information and tables contained in the notes thereto as of ~~March~~June 3130, 2016 are unaudited. The consolidated balance sheet as of December 31, 2015 was derived from the audited consolidated financial statements as of and for the year ended December 31, 2015. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). However, in the opinion of management, these interim financial statements include all the necessary adjustments to fairly present the results of the interim periods presented. The unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the Partnership’s Annual Report on Form 10-K for the year ended December 31, 2015. The results of operations for the three and six months ended ~~March~~June 3130, 2016 may not necessarily be indicative of the results of operations for the full year ending December 31, 2016.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A summary of the significant accounting policies consistently applied in the preparation of the accompanying consolidated financial statements follows:

Principles of Consolidation

The consolidated financial statements include the accounts of the Partnership and its wholly-owned subsidiaries, as follows:

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RESOURCE REAL ESTATE INVESTORS 7, L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

~~MARCH~~JUNE 3130, 2016

(unaudited)

Subsidiaries	Number of Units	Location
RRE Tamarlane Holdings, LLC, or Tamarlane Apartments (“Tamarlane”) (2)	—	—
RRE Tamarlane Holdings, LLC, or Tamarlane Apartments (“Tamarlane”) (1)	—	—
RRE Bent Oaks Holdings, LLC, or Bent Oaks Apartments (“Bent Oaks”)	146	Austin, TX
RRE Cape Cod Holdings, LLC, or Cape Cod Apartments (“Cape Cod”)	212	San Antonio, TX
RRE Woodhollow Holdings, LLC, or Woodhollow Apartments (“Woodhollow”)	108	Austin, TX
RRE Woodland Hills Holdings, LLC (“Hills”) (1)	—	—
RRE Woodland Hills Holdings, LLC (“Hills”) (2)	—	—
RRE Woodland Village Holdings, LLC, or Woodland Village Apartments (“Village”)	308	Columbia, SC
	774

(1) ~~The Hills~~Tamarlane, a ~~228~~115 unit multifamily apartment complex in ~~Georgia~~Maine, was sold on ~~March~~December 191, 2015. ~~During the three months ended March 31, 2015, Revenues and Net income attributable to Hills were $601,000 and $143,000, respectively. The Partnership recognized a $9.6 million gain on sale.~~

(2) ~~Tamarlane~~The Hills, a ~~115~~228 unit multifamily apartment complex in ~~Maine~~Georgia, was sold on ~~December~~March 119, 2015. ~~During the three months ended March 31, 2015, Revenues and Net loss attributable to Tamarlane were $469,000 and $(4,000), respectively.~~

All intercompany transactions and balances have been eliminated in consolidation.

Assets Held for Sale

The Partnership presents the assets and liabilities of any rental properties which qualify as held for sale, separately in the consolidated balance sheets. The Partnership does not consider the sale as probable until the purchase and sale agreement has been signed by both parties. Real estate assets held for sale are measured at the lower of carrying amount or fair value less cost to sell. Both the real estate and the corresponding liabilities are presented separately in the Consolidated Balance Sheets. Subsequent to classification of an asset as held for sale, no further depreciation is recorded.

Geographic Concentration Risk

As of ~~March~~June 3130, 2016, the Partnership's net investments in real estate in Texas and South Carolina represented 66% and 34%, respectively, of the Partnership’s total assets. As a result, the geographic concentration of the Partnership’s portfolio makes it particularly susceptible to adverse economic developments in the Texas and South Carolina real estate markets. Any adverse economic or real estate developments in these markets could adversely affect the Partnership’s operating results.

Use of Estimates

The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The Partnership estimates the allowance for uncollectible receivables and loan losses and adjusts the balance quarterly. The Partnership also estimates the liability for real estate taxes on the properties and adjusts the balance quarterly if necessary. Actual results could differ from those estimates.

Supplemental Disclosure of Cash Flow Information

During the ~~three~~six months ended ~~March~~June 3130, 2016 and 2015, the Partnership paid $~~340~~702,000 and $~~641~~1.1 million,~~000,~~ respectively, in cash for interest.

Advertising

The Partnership expenses advertising costs as they are incurred. Advertising costs, which are included in rental operating expenses, totaled $2622,000 and $2248,000 for the three and six months ended ~~March~~June 3130, 2016 and $39,000 and $60,000 for the three and six months ended June 30, 2015, respectively.

Deferred Financing Costs

Costs incurred to obtain financing have been capitalized and are being amortized over the term of the related debt using the effective yield method. In accordance with adoption of Financial Accounting Standard Board ("FASB") Accounting Standards Update ("ASU") 2015-03 "Simplifying the Presentation of Debt Issuance Costs", the Partnership has ~~disclosed~~recorded deferred financing costs as a direct reduction of the related mortgage notes payable.

Sale of the Rental Property

The Partnership recognized the gains on sales of rental properties separately in the Consolidated Statement of Operations. In March 2015, the Partnership sold its interest in the Hills and recognized a gain of $9.6 million on the sale.

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RESOURCE REAL ESTATE INVESTORS 7, L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

~~MARCH~~JUNE 3130, 2016

(unaudited)

Sale of the Rental Property

Income Taxes

Income taxes or credits resulting from earnings or losses are payable by, or accrue to the benefit of, the partners; accordingly, no provision has been made for income taxes in these consolidated financial statements.

The Partnership evaluates the benefits of tax positions taken or expected to be taken in its tax returns under a two-step recognition and measurement process. Only the largest amount of benefits from the tax positions that will more likely than not be sustainable upon examination are recognized by the Partnership. The Partnership does not have any unrecognized tax benefits, nor interest and penalties, recorded in the Consolidated Balance Sheets or Consolidated Statements of Operations and does not anticipate significant adjustments to the total amount of unrecognized tax benefits within the next twelve months.

The Partnership is subject to examination by the U.S. Internal Revenue Service and by the taxing authorities in those states in which the Partnership has significant business operations. The Partnership is not currently undergoing any examinations by taxing authorities. The Partnership may be subject to U.S. federal income tax and state/local income tax examinations for years ~~2012~~2013 through 2015.

Revenue Recognition

Revenue is primarily derived from the rental of residential housing units with lease agreement terms of generally one year or less. The Partnership recognizes revenue in the period that rent is earned, which is on a monthly basis. The Partnership recognizes rent as income on a straight-line basis over the term of the related lease. Additionally, any incentives included in the lease are amortized on a straight-line basis over the term of the related lease.

Included within rental income are other income amounts such as utility reimbursements, late fees, parking fees, pet fees and lease application fees which are recognized when earned or received. ~~During~~For the three and six months ended ~~March~~June 3130, 2016 other income totaled $233,000 and $456,000, respectively. For the three and six months ended June 30, 2015 other income totaled $~~223~~206,000 and $~~202~~408,000, respectively.

The future minimum rental payments to be received from leases currently in place is approximately $34.73 million and $6656,000 for the twelve months ending ~~March~~June 3130, 2017 and 2018, respectively, and none thereafter.

Long-Lived Assets

The Partnership reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If it is determined that an asset’s estimated future cash flows will not be sufficient to recover its carrying amount, an impairment charge will be recorded to reduce the carrying amount for that asset to its estimated fair value. The Partnership has estimated that the future cash flows from its properties will be sufficient to recover their

carrying amounts and, as a result, the Partnership did not recognize any impairment losses with respect to its Properties for the

~~three~~six months ended ~~March~~June 3130, 2016 and 2015.

Rental Properties

Rental properties are carried at cost, net of accumulated depreciation. Buildings and improvements and personal property are depreciated for financial reporting purposes on the straight-line method over their estimated useful lives. The value of in-place leases is amortized over the average remaining term of the respective leases on a straight-line basis. Useful lives used for calculating depreciation for financial reporting purposes are as follows:



	Buildings and improvements	5 - 27.5 years
	Personal property	3 - 15 years

Tenant Receivables

Tenant receivables are stated at amounts due from tenants net of an allowance for uncollectible receivables. Payment terms vary and receivables outstanding longer than the payment terms are considered past due. The Partnership determines its allowance by considering a number of factors, including the length of time receivables are past due, security deposits held, the Partnership’s previous loss history, the tenants’ current ability to pay their obligations to the Partnership, the general condition of the economy and the condition of the industry as a whole. The Partnership writes off receivables when they become uncollectible. At March 31, 2016 and December 31, 2015, there were no allowances for uncollectible receivables.

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RESOURCE REAL ESTATE INVESTORS 7, L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

~~MARCH~~JUNE 3130, 2016

(unaudited)

Tenant receivables are stated at amounts due from tenants net of an allowance for uncollectible receivables. Payment terms vary and receivables outstanding longer than the payment terms are considered past due. The Partnership determines its allowance by considering a number of factors, including the length of time receivables are past due, security deposits held, the Partnership’s previous loss history, the tenants’ current ability to pay their obligations to the Partnership, the general condition of the economy and the condition of the industry as a whole. The Partnership writes off receivables when they become uncollectible. At June 30, 2016 and December 31, 2015, there were no allowances for uncollectible receivables.

Redemptions

The LPs may request redemption of their units at any time. The Partnership has no obligation to redeem any units and will do so only at the GP’s discretion. If the Partnership redeems units, the redemption price is generally the amount of the initial investment less all distributions from the Partnership to the LP, and less all organization and offering expenses charged to the LP.

Adoption of New Accounting Standards

In ~~April~~January ~~2014~~2015, ~~the~~FASB ~~Financial~~issued ~~Accounting~~ASU ~~Standards~~No. 2015-01, ~~Board (~~"~~FASB")~~Income ~~issued~~Statement ~~authoritative~~- ~~guidance~~Extraordinary toand ~~change~~Unusual ~~the~~Items ~~criteria~~(Subtopic ~~for~~225-20), ~~reporting~~Simplifying ~~discontinued~~Income ~~operations. Under~~Statement Presentation by Eliminating the ~~new~~Concept ~~guidance,~~of ~~only~~Extraordinary ~~disposals~~Items" ~~representing~~("ASU aNo. 2015-01"). ~~strategic~~The ~~shift~~amendments in aASU ~~company's~~No. 2015-01 ~~operations~~eliminate ~~and~~from ~~financial~~GAAP ~~results~~the ~~should~~concept beof ~~reported~~extraordinary asitems. Although ~~discontinued~~the ~~operations,~~amendment ~~with~~will ~~expanded~~eliminate ~~disclosures. In~~the ~~addition,~~requirements ~~disclosure~~for ofreporting ~~the~~entities ~~pre-tax~~to ~~income~~consider ~~attributable~~whether toan aunderlying ~~disposal~~event ofor atransaction ~~significant~~is ~~part~~extraordinary, ofthe anpresentation ~~organization~~and disclosure guidance for items that ~~does~~are ~~not~~unusual ~~qualify~~in asnature ~~discontinued~~or ~~operations~~occur isinfrequently ~~required. This~~will ~~guidance~~be isretained ~~effective~~and ~~for~~will ~~the~~be ~~Partnership~~expanded asto ofinclude ~~January~~items 1,that ~~2015.~~are ~~Disposal~~both ofunusual ~~the~~in ~~rental~~nature ~~property~~and ~~during~~infrequently ~~the~~occurring. ASU ~~the~~No. ~~three~~2015-01 ~~months~~is ~~ended~~effective ~~March 31,~~for ~~2016~~fiscal ~~was~~years, ~~concluded~~and byinterim ~~the~~periods ~~Partnership~~within ~~not~~those toyears, ~~represent~~beginning aafter ~~strategic~~December ~~shift~~15, in2015. ~~the~~On ~~business~~January ~~and~~1, ~~therefore~~2016, ~~discontinued~~the ~~operations~~Partnership isadopted ~~not~~ASU ~~presented~~2015-01 inand ~~accordance~~the ~~with~~adoption had no impact on the ~~revised~~Partnership's ~~accounting~~consolidated ~~standard~~financial statements.

In January 2015, FASB issued ASU No. 2015-01, "Income Statement - Extraordinary and Unusual Items (Subtopic 225-20), Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items. The amendments in ASU No. 2015-01 eliminate from GAAP the concept of extraordinary items. Although the amendment will eliminate the requirements for reporting entities to consider whether an underlying event or transaction is extraordinary, the presentation and disclosure guidance for items that are unusual in nature or occur infrequently will be retained and will be expanded to include items that are both unusual in nature and infrequently occurring. ASU No. 2015-01 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. On January 1, 2016, the Partnership adopted ASU 2015-01 and the adoption had no impact on the Partnership's consolidated financial statements.

In February 2015, FASB issued ASU 2015-02, "Consolidation (Topic 810): Amendments to the Consolidation Analysis" (“ASU 2015-02”), which makes certain changes to both the variable interest model and the voting model, including changes to (1) the identification of variable interests (fees paid to a decision maker or service provider), (2) the variable interest

entity characteristics for a limited partnership or similar entity and (3) the primary beneficiary determination. ASU 2015-02 is effective for the Partnership beginning January 1, 2016. On January 1, 2016, the Partnership adopted ASU 2015-02 and the adoption had no impact on the Partnership's consolidated financial statements.

In April 2015, ~~the~~ FASB issued ASU 2015-03, "Simplifying the Presentation of Debt Issuance Costs" ("ASU 2015-03"), which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected. Upon adoption, the Partnership ~~will~~applied ~~apply~~ the new guidance on a retrospective basis and ~~adjust~~adjusted the balance sheet of each individual period presented to reflect the period-specific effects of applying the new guidance. This guidance was effective and was adopted by the Partnership on January 1, 2016 and as result the Partnership has reclassified $261,000 of unamortized debt issuance costs at December 31, 2015 from deferred financing costs to liabilities as reduction of the related mortgage notes payable

In September 2015, FASB issued ASU 2015-16, "Simplifying the Accounting for Measurement-Period Adjustments" ("ASU 2015-16"), which eliminates the requirement to retroactively revise comparative financial information for prior periods presented in financial statements due to changes in provisional amounts recorded for acquisitions in subsequent periods. Upon adoption, disclosure of the amounts recorded in current-period earnings that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized at the acquisition date are required. ASU 2015-16 was effective and adopted by the Partnership on January 1, 2016 and the adoption had no impact on its consolidated financial statements.

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RESOURCE REAL ESTATE INVESTORS 7, L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

~~MARCH~~JUNE 3130, 2016

(unaudited)

Accounting Standards Issued But Not Yet Effective.

In May 2014, FASB issued ~~Accounting Standards Update (“~~ASU") No. 2014-09, “Revenue from Contracts with Customers” ("ASU No. 2014-09"), which will replace most existing revenue recognition guidance in GAAP. The core principle of ASU No. 2014-09 is that an entity should recognize revenue for the transfer of goods or services equal to the amount that it expects to be entitled to receive for those goods or services. ASU No. 2014-09 requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments. ASU No. 2014-09 will be effective for the Partnership beginning January 1, 2018, including interim periods in 2018, and allows for both retrospective and prospective methods of adoption. The Partnership is in the process of determining the method of adoption and assessing the impact of this guidance on the Partnership’s consolidated financial position, results of operations and cash flows.

In August 2014, FASB issued ASU No. 2014-15, "Presentation of Financial Statements-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern" ("ASU No. 2014-15"). Under the new guidance, an entity should evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. The guidance is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early adoption is permitted. The adoption of the new requirements is not expected to have a significant impact on the Partnership's consolidated financial statements.

In February 2016, FASB issued ASU No. 2016-02, "Leases" ("ASU No. 2016-02"). which is intended to improve financial reporting about leasing transactions and requires organizations that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. ASU No. 2016-02 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The ~~Company~~Partnership is continuing to evaluate this guidance; however, it does not expect the adoption of ASU No. 2016-02 to have a significant impact on its consolidated financial statements.

In June 2016, FASB issued ASU No. 2016-13 “Financial Instruments - Credit Losses” ("ASU No. 2016-13") which requires measurement and recognition of expected credit losses for financial assets held. The standard update is effective for the Company beginning January 1, 2019. The Company is continuing to evaluate this guidance; however, it does not expect the adoption of ASU No. 2016-13 to have a significant impact on its consolidated financial statements.

NOTE 3 - RESTRICTED CASH

Restricted cash represents escrow deposits with lenders to be used to pay real estate taxes, insurance, and capital improvements. A summary of the components of restricted cash follows (in thousands):

	March 31, 2016		December 31, 2015
	June 30, 2016		December 31, 2015
Real estate taxes	$	~~146~~510	$	1,034
Insurance	~~255~~77		180
Capital improvements	~~400~~437		386
Total	$	~~801~~1,024	$	1,600

NOTE 4 - MORTGAGE NOTES PAYABLE, NET

The following is a summary of mortgage notes payable, net (in thousands):

	March 31, 2016							December 31, 2015
	June 30, 2016							December 31, 2015
Property	Mortgage balance		Deferred Finance Costs, Net (1)			Carrying Value		Mortgage balance		Deferred Finance Costs, Net(1)			Carrying Value
Bent Oaks	$	5,~~708~~685	$	(4642	)	$	5,~~662~~643	$	5,731	~~(50~~$	(50	)	$	5,681
Cape Cod	5,~~927~~903		(4642		)	5,~~881~~861		5,951		(51		)	5,900
Woodhollow	4,~~897~~878		(4036		)	4,~~857~~842		4,916		(43		)	4,873
Village	9,~~247~~203		(~~108~~99		)	9,~~139~~104		9,293		(117		)	9,176
Total	$	25,~~779~~669	$	(~~240~~219	)	$	25,~~539~~450	$	25,891	$	(261	)	$	25,630

(1) Deferred financing costs include unamortized costs incurred to obtain financing which are being amortized over the term of the related debt.

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RESOURCE REAL ESTATE INVESTORS 7, L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

~~MARCH~~JUNE 3130, 2016

(unaudited)

(1) Deferred financing costs include unamortized costs incurred to obtain financing which are being amortized over the term of the related debt.

The following table includes additional information about the Partnership's mortgage notes payable, net (in thousands):



Property	Maturity Date		Annual Interest Rate	Monthly Debt Service
Bent Oaks	01/01/2019	⁽²⁾	5.99%	$	37	⁽¹⁾
Cape Cod	01/01/2019	⁽²⁾	5.91%	$	38	⁽¹⁾
Woodhollow	01/01/2019	⁽²⁾	6.14%	$	32	⁽¹⁾
Village	04/01/2019		3.76%	$	44	⁽¹⁾


(1)	Monthly payment includes principal and interest. Interest is at a fixed rate.


(2)	The Partnership has an option to extend the maturity date for an additional one year to January 1, 2020. During the extension

period, the interest rate would convert to the Federal Home Loan Mortgage Corporation Bill Index Rate plus 2.5%.

Annual contractual principal payments on the mortgage notes payable for the future years ending ~~March~~June 3130, are as follows (in thousands):

thousands):



2017	466
2018	491
2019	24,712
	$	25,669

2017	$	460
2018	485
2019	16,159
2020	8,675
	$	25,779

The mortgage notes payable are with recourse only to the Properties securing them subject to certain limited standard exceptions, as defined in the mortgage notes, which the GP has guaranteed with respect to each property. These exceptions are referred to as “carveouts”. In general, carveouts relate to damages suffered by the lender for a subsidiary’s failure to pay rents, insurance or condemnation proceeds to the lender, to pay water, sewer and other public assessments or charges, to pay environmental compliance costs or to deliver books and records, in each case as required in the loan documents. The exceptions also require the GP to guarantee payment of audit costs, lender’s enforcement of its rights under the loan documents and payment of the loan if the subsidiary voluntarily files for bankruptcy or seeks reorganization, or if a related party of the subsidiary does so with respect to the subsidiary.

Deferred financing costs include unamortized costs incurred to obtain financing which are being amortized over the term of the related debt. Accumulated amortization as of ~~March~~June 3130, 2016 and December 31, 2015 was $~~507~~528,000 and $486,000, respectively. Estimated amortization of existing deferred financing costs for the next ~~four~~three years ending ~~March~~June 3130, is as follows (in thousands):

2017	$	83
2018	81
2019	7355
2020	3
	$	219
	$	240

NOTE 5 - CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS

In the ordinary course of its business operations, the Partnership has ongoing relationships with several related entities.

(Back to Index)

RESOURCE REAL ESTATE INVESTORS 7, L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

~~MARCH~~JUNE 3130, 2016

(unaudited)

~~Substantially~~NOTE all of the receivables from related parties represents escrow funds held by RAI for self insurance. The Partnership's Properties participate in insurance pools with other properties directly and indirectly managed by RAI for both property insurance and general liability. RAI holds the escrow funds related to the insurance pool on its books. The insurance pool covers losses up to $2.5 ~~million~~- ~~for~~CERTAIN ~~property~~RELATIONSHIPS ~~losses~~AND ~~and~~RELATED ~~the~~PARTY ~~first~~TRANSACTIONS $25,000 of each general liability loss up to an annual maximum of $1.0 million. Catastrophic insurance would cover property losses in excess of the insurance pool up to $140 million. Therefore, unforeseen or catastrophic losses in excess of the Partnership's insured limits could have a material adverse effect on the Partnership financial condition and operating results.

~~RCP~~ In ~~is entitled to receive an annual investment management fee, payable monthly, equal to 1% of~~ the ~~gross~~ordinary ~~offering~~course ~~proceeds, net~~ of ~~any amounts otherwise attributable to LP interests owned by RCP. During the term of the Partnership, RCP must subordinate up to 100% of~~ its ~~annual~~business ~~investment management fee to the receipt by the LPs of their Preferred Return. As of March 31~~operations, ~~2016 and December 31, 2015,~~ the ~~amount of unpaid subordinated investment management fees totaled $62,000 and $15,000, respectively. During the three months ended March 31, 2016 and 2015 the~~ Partnership ~~paid~~has ~~investment~~ongoing ~~management~~relationships ~~fees~~with ~~totaling~~several $0related ~~and $1~~entities.9 ~~million, respectively.~~

ASubstantially ~~wholly-owned~~all ~~subsidiary~~ of ~~RCP,~~the ~~Resource~~receivables ~~Real~~from ~~Estate~~related ~~Management,~~parties ~~LLC~~represents ~~(“RREML”)~~escrow isfunds ~~entitled~~held toby ~~receive~~RAI ~~property~~for ~~and~~self ~~debt~~insurance. ~~management~~The ~~fees. RREML~~Partnership's ~~engaged~~properties ~~Resource~~participate ~~Real~~in ~~Estate~~insurance ~~Management,~~pools ~~Inc~~with ~~(“RREMI”),~~other anproperties ~~indirect~~directly ~~wholly~~and ~~owned~~indirectly ~~subsidiary~~managed ofby RAI, tofor ~~manage~~both property insurance and general liability. RAI holds the ~~Partnership’s~~escrow ~~Properties~~funds related to the insurance pools on its books. As ofThe ~~March 31,~~pool ~~2016~~for the property insurance covers losses up to $2.5 million and ~~December 31,~~the ~~2015,~~pool ~~property~~for ~~management~~the ~~fees~~general ~~due~~liability ~~totaled~~covers losses up to the first $50,000 ~~and~~per incident. Catastrophic insurance would cover property losses in excess of the insurance pool up to $~~62,000,~~140 ~~respectively~~million. ~~Because~~Therefore, unforeseen or catastrophic losses in excess of the Partnership's ~~has~~insured ~~not~~limits ~~acquired~~could ~~any~~have ~~real~~a ~~estate~~material ~~debt~~adverse ~~investments,~~effect ~~there~~on ~~were~~the noPartnership's ~~debt~~financial ~~management~~condition ~~fees~~and asoperating ofresults. In ~~March 31~~the three months ended June 30, 2016, ~~and~~the ~~December 31~~Partnership funded $136,523 ~~2015.~~into the insurance pools.

~~During~~On ~~the~~May ~~ordinary~~22, ~~course of business~~2016, ~~RCP~~RAI ~~and~~agreed ~~RREMI~~to ~~advance~~be ~~funds~~acquired ~~for~~by ~~ordinary~~C-III ~~operating~~Capital ~~expenses~~Partners onLLC ~~behalf~~("C-III"), ofa ~~the~~leading ~~Properties. As~~commercial ofreal ~~March 31,~~estate ~~2016~~services ~~and~~company ~~December 31,~~engaged ~~2015,~~in ~~advances~~a ~~due~~broad ~~totaled~~range ~~$34,000~~of ~~and~~activities. The ~~$61,000,~~proposed ~~respectively.~~merger ~~Total~~is ~~operating~~expected ~~expenses~~to ~~reimbursed~~close ~~during~~late in the ~~three~~third ~~months~~quarter ~~ended~~of ~~March 31,~~ 2016 and ~~March 31,~~is ~~2015~~subject ~~were~~to ~~$429,000~~approval ~~and~~by ~~$523,000,~~the ~~respectively.~~stockholders ~~Reimbursed~~RAI, ~~expenses~~regulatory ~~include~~approvals ~~payroll~~ and ~~miscellaneous~~other ~~operating~~customary ~~expenses~~closing conditions. ~~Reimbursed~~Upon ~~operating~~closing ~~expenses~~of ~~are~~the ~~included~~transaction, inC-III ~~property~~will ~~rental~~control ~~operating~~RCP ~~expenses~~and inall of the ~~consolidated~~partnership ~~statements~~units of ~~operations~~the Partnership currently owned by RCP.

RCP is entitled to receive an annual investment management fee, payable monthly, equal to 1% of the gross offering proceeds that have been deployed in real estate investments from the offering of partnership units, net of any amounts otherwise attributable to LP interests owned by RCP. During the term of the Partnership, RCP must subordinate up to 100% of its annual investment management fee to the receipt by the LPs of their Preferred Return. As of June 30, 2016 and December 31, 2015, the amount of unpaid subordinated investment management fees totaled $108,000 and $15,000, respectively. During the six months ended June 30, 2016 and 2015 the Partnership paid investment management fees totaling $0 and $1.9 million, respectively.

A wholly-owned subsidiary of RCP, Resource Real Estate Management, LLC (“RREML”) is entitled to receive property and debt management fees. RREML engaged Resource Real Estate Management, Inc (“RREMI”), an indirect wholly owned subsidiary of RAI, to manage the Partnership’s Properties. As of June 30, 2016 and December 31, 2015, property management fees due totaled $68,000 and $62,000, respectively. Because the Partnership has not acquired any real estate debt investments, there were no debt management fees as of June 30, 2016 and December 31, 2015.

During the ordinary course of business, RCP and RREMI advance funds for ordinary operating expenses on behalf of the Properties. As of June 30, 2016 and December 31, 2015, advances due totaled $36,000 and $61,000, respectively. Total reimbursable operating expenses incurred during the three months ended June 30, 2016 and June 30, 2015 were $427,000 and $573,000, respectively. Total reimbursable operating expenses incurred during the six months ended June 30, 2016 and June 30, 2015 were $822,000 and $1.1 million, respectively. Reimbursed expenses include payroll and miscellaneous operating expenses. Reimbursed operating expenses are included in property rental operating expenses in the consolidated statements of operations.

The Partnership pays investment management fees and property management fees to related parties. These expenses are summarized as follows (in thousands):

	Three Months Ended March 31,
	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
RCP:
Investment management fees (1)	$	46	$	7859	$	92	$	137
RREML:
Property management fees - 5% of gross cash receipts (2)	~~102~~99		~~155~~119		$	201	274
	$	~~148~~145	$	~~233~~178	$	293	$	411

(1) RCP is entitled to receive an annual investment management fee, payable monthly, equal to 1% of the gross proceeds that have been deployed in real estate investments from the offering of partnership units, net of any LP interest owned by RCP. During the term of the Partnership, RCP must subordinate up to 100% of its annual investment management fee to the receipt by the LPs of their Preferred Return.

(2) RREML is entitled to receive monthly property management fees equal to 5% of the gross operating revenues from the Partnership’s 100% owned Properties for managing or obtaining and supervising third party managers.

NOTE 6 - FAIR VALUE OF FINANCIAL INSTRUMENTS

In analyzing the fair value of its financial instruments disclosed or accounted for on a fair value basis, the Partnership follows the fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The Partnership determines fair value based on quoted prices when available or, if quoted prices are not available, through the use of alternative approaches, such as discounting the expected cash flows using market interest rates commensurate with the credit quality and duration of the financial instruments. The fair value of cash, tenant receivables and accounts payable approximate their carrying values due to their short term nature. The hierarchy followed defines three levels of inputs that may be used to measure fair value:

(Back to Index)

RESOURCE REAL ESTATE INVESTORS 7, L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

~~MARCH~~JUNE 3130, 2016

(unaudited)

NOTE 6 - FAIR VALUE OF FINANCIAL INSTRUMENTS

Level 1 - Quoted prices in active markets for identical assets that the reporting entity has the ability to access at the measurement date.

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or can be corroborated with observable market data for substantially the entire contractual term of the asset.

Level 3 - Unobservable inputs that reflect the entity’s own assumptions about the assumptions that market participants would use in the pricing of the asset and are consequently not based on market activity, but rather through particular valuation techniques.

The following methods and assumptions were used to estimate the fair value of the Partnership’s financial instruments:


•	Mortgage notes payable. Rates currently available to the Partnership for debt with similar terms and remaining maturities are used to estimate the fair value of existing debt.

The estimated fair value measurements of the mortgage notes payable are classified within level 3 of the fair value hierarchy.

The carrying amounts and estimated fair values of the Partnership’s financial instruments were as follows (in thousands):

March 31, 2016

December 31, 2015

June 30, 2016

December 31, 2015

Mortgage Balance

Estimated Fair Value

Mortgage Balance

Estimated Fair Value

Mortgage notes payable:

Bent Oaks

5,~~708~~685

6,~~162~~157

5,731

6,121

Cape Cod

5,~~927~~903

6,~~385~~380

5,951

6,343

Woodhollow

4,~~897~~878

5,~~269~~264

4,916

5,234

Village

9,~~247~~203

9,~~373~~365

9,293

9,305

Total mortgage notes payable

25,~~779~~669

27,~~189~~166

25,891

27,003

NOTE 7 - ~~SUBSEQUENT~~DISPOSITION ~~EVENTS~~OF PROPERTIES

The ~~Partnership~~following ~~has~~table ~~evaluated~~presents ~~subsequent~~details ~~events~~of ~~through~~ the ~~date~~Partnership's ~~these~~disposition ~~consolidated~~activity ~~financial~~during ~~statements~~the ~~were~~year ~~issued~~ended December 31, 2015 (in thousands):

and determined that no events have occurred which would require an adjustment to the consolidated financial statements.



Multifamily Community	Location	Sale Date	Contract Sales Price		Gain on Sale
2015 Dispositions:
RRE Woodland Hills Holdings, LLC (“Hills”)	Decatur, Georgia	3/19/2015	$	25,200	$	9,603
RRE Tamarlane Holdings, LLC, or Tamarlane Apartments (“Tamarlane”)	Portland, Maine	12/1/2015	18,300		8,042
					$	17,645

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RESOURCE REAL ESTATE INVESTORS 7, L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

JUNE 30, 2016

(unaudited)

The table below presents the revenues and net income (loss) attributable to properties sold for the three and six months ended June 30, 2015 (in thousands):



	Revenue Attributable to Properties Sold				Net Income Attributable to Properties Sold
Multifamily Community	Three months ended June 30, 2015		Six months ended June 30, 2015		Three months ended June 30, 2015		Six months ended June 30, 2015
2015 Dispositions:
RRE Woodland Hills Holdings, LLC (“Hills”)	$	1	$	602	$	8	$	151
RRE Tamarlane Holdings, LLC, or Tamarlane Apartments (“Tamarlane”)	495		964		62		58
	$	496	$	1,566	$	70	$	209

There were no dispositions for the three and six months ended June 30, 2016.

NOTE 8 - SUBSEQUENT EVENTS

On July 14, 2016, the Partnership signed a contract to sell Woodland Village Apartments for $20.7 million. On July 28, 2016, the Partnership signed a contract to sell Bent Oaks Apartments for $15.7 million and Woodhollow Apartments for $12.6 million. We expect to record gains on the sales during the three months ended September 30, 2016.

The Partnership has evaluated subsequent events through the date these consolidated financial statements were issued and determined that no events, other than those disclosed above, have occurred which would require an adjustment to the consolidated financial statements.

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ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (unaudited)

This report contains certain forward-looking statements. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by terms such as “anticipate,” “believe,” “could,” “estimate,” “expects,” “intend,” “may,” “plan,” “potential,” “project,” “should,” “will” and “would” or the negative of these terms or other comparable terminology. Such statements are subject to the risks and uncertainties inherent in partnerships that invest in real estate and real estate assets, including those referred to in our filings under the Securities Exchange Act of 1934. These risks and uncertainties could cause actual results to differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly revise or update these forward-looking statements to reflect events or circumstances after the date of this report, except as may be required under applicable law.

Overview

We are a Delaware limited partnership that was formed on March 28, 2008 and commenced operations on June 16, 2008. Through wholly owned subsidiaries, we own in fee, operate and invest in multifamily residential rental properties located in South Carolina and Texas, which we refer to as our Properties. We also may invest in interests in real estate mortgages and other debt instruments that are secured, directly or indirectly, by a multifamily residential rental property or an interest in an entity that directly owns such a property. As of ~~March~~June 3130, 2016, we did not own any real estate debt investments. If we were to acquire mortgages or other real estate debt investments in the future, these investments would be in an amount that would not cause us to become an investment company within the meaning of Section 3(a)(1) of the Investment Company Act of 1940.

~~The~~We ~~Partnership~~have ~~has~~ begun the process of dissolution through the strategic disposal of assets. As of June 30, 2016, we own four multifamily residential rental Properties through our 100% owned subsidiaries. On March 19, 2015, the Partnership sold its interest in Woodland Hills. On December 1, 2015, the Partnership sold its interest in Tamarlane. The remaining assets are expected to be disposed of later in 2016.

~~As of March 31, 2016, we own four multifamily residential rental Properties through our 100% owned subsidiaries. During the year ended December 31, 2015 we sold 2 multifamily properties.~~ The following table presents our multifamily residential rental properties:

Subsidiary / Property	Purchase Date	Leverage Ratio (1)	Number of Units	PropertyLocation
RRE Tamarlane Holdings, LLC, or Tamarlane (3)	07/31/2008	68%	—	—
RRE Tamarlane Holdings, LLC, or Tamarlane (2)	07/31/2008	—	—	—
RRE Bent Oaks Holdings, LLC, or Bent Oaks	12/10/2008	57%	146	Austin, TX
RRE Bent Oaks Holdings, LLC, or Bent Oaks (4)	12/10/2008	57%	146	Austin, TX
RRE Cape Cod Holdings, LLC, or Cape Cod	12/10/2008	57%	212	San Antonio, TX
RRE Woodhollow Holdings, LLC, or Woodhollow	12/12/2008	60%	108	Austin, TX
RRE Woodhollow Holdings, LLC, or Woodhollow (5)	12/12/2008	60%	108	Austin, TX
RRE Woodland Hills Holdings, LLC, or Hills (2)	12/19/2008	65%	—	—
RRE Woodland Hills Holdings, LLC, or Hills (3)	12/19/2008	—	—	—
RRE Woodland Village Holdings, LLC, or Village	03/07/2012	77%	308	Columbia, SC
RRE Woodland Village Holdings, LLC, or Village (6)	03/07/2012	77%	308	Columbia, SC
			774

(1) Original face value of mortgage divided by total property capitalization, including reserves, escrows, fees and closing costs.

(2) ~~The Hills~~Tamarlane, a ~~228~~115 unit multifamily apartment complex in ~~Georgia~~Maine, was sold on ~~March~~December 191, 2015.

(3) ~~Tamarlane~~The Hills, a ~~115~~228 unit multifamily apartment complex in ~~Maine~~Georgia, was sold on ~~December~~March 119, 2015.

(4) As of July 28, 2016, under contract of sale for a price of $15.7 million.

(5) As of July 28, 2016, under contract of sale for a price of $12.6 million.

(6) As of July 14, 2016, under contract of sale for a price of $20.7 million.

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1516

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The following table sets forth operating statistics about our multifamily residential rental properties. This table does not include information with respect to two properties, Woodland Hills and Tamarlane, which were sold during fiscal year 2015:

	AverageOccupancy Rate (1)				~~Average Effective Rentper Square Foot (2)~~		Average Effective Rentper Square Foot (2)						~~Ratio of OperatingExpense to Revenue (3)~~	Ratio of OperatingExpense to Revenue (3)
	Three Months Ended March 31,				Three Months Ended March 31,								Three Months Ended March 31,
	Three Months Ended June 30,						Three Months Ended June 30,							Three Months Ended June 30,
Property	2016		~~2015~~	2015	~~2016~~		2016		~~2015~~		2015		~~2016~~	~~2015~~2016		2015
Bent Oaks	9291.9%	%	~~91.6%~~	91.3	$%	~~1.25~~	$	1.25	$	~~1.20~~	$	1.21	~~64%~~	~~54%~~56	%	57	%
Cape Cod	9493.9%	%	~~90.8%~~	96.3	$%	~~1.05~~	$	1.05	$	~~0.95~~	$	1.01	~~60%~~	~~52%~~63	%	57	%
Woodhollow	9394.1%3	%	~~94.5%~~	93.1	$%	~~1.10~~	$	1.13	$	~~1.06~~	$	1.05	~~61%~~	~~57%~~59	%	63	%
Village	9493.4%0	%	~~93.8%~~	95.5	$%	~~0.56~~	$	0.57	$	~~0.54~~	$	0.55	~~61%~~	~~56%~~61	%	60	%



	Average Occupancy Rate ⁽¹⁾				Average Effective Rent per Square Foot ⁽²⁾				Ratio of Operating Expense to Revenue ⁽³⁾
	Six Months Ended June 30, 2016				Six Months Ended June 30, 2016				Six Months Ended June 30, 2016
Property	2016		2015		2016		2015		2016		2015
Bent Oaks	92.3	%	91.4	%	$	1.25	$	1.20	60	%	55	%
Cape Cod	94.3	%	93.5	%	$	1.05	$	0.98	62	%	55	%
Woodhollow	93.8	%	93.7	%	$	1.11	$	1.05	60	%	61	%
Village	93.6	%	94.6	%	$	0.56	$	0.55	61	%	58	%


(1)	Number of occupied units divided by total units adjusted for any unrentable units; average calculated on a weekly basis.


(2)	Average rental revenue divided by total rentable square footage. We calculate average rental revenue by dividing gross rental revenue by the number of months in the period.


(3)	Rental operating expenses, excluding certain one-time expenses funded from reserves for capital expenditures, and general and administrative expenses, excluding asset management fees and transaction expenses, as a percentage of rental income, excluding any adjustment for concessions.

Results of Operations

We generate our income from the net revenues we receive from our Properties. In addition to the rental revenues we also generate funds from the sales or refinancing of our Properties as seen with the sale of the Hills in the first quarter of 2015 and the sale of Tamarlane in the fourth quarter of 2015. Should economic conditions in the areas in which our remaining Properties are located deteriorate, we could experience lower occupancy, lower rental revenues and higher operating costs, all of which could harm our operations and financial condition, reduce the value of our Properties and limit our ability to make distributions to our limited partners.

Our operating results and cash flows from our Properties are affected by four principal factors:


•	occupancy and rental rates,


•	property operating expenses,


•	interest rates on the related financing,


•	capital expenditures, and


•	net proceeds from property dispositions.

The amount of rental revenues from our Properties depends upon their occupancy rates and concessions granted. We seek to maximize our rental revenues through aggressive property-level programs, including, in particular, our Lease Rent Optimizer, or LRO, program which includes rent concessions. Under our LRO program, we seek to price our rents for apartment units on a daily basis, based upon inventory in the marketplace and competitors’ pricing. Our Properties experienced an overall increase in the average occupancy rate during the ~~three~~six months ended ~~March~~June 3130, 2016 of approximately 10.12% with an average occupancy of 93.85% as compared to an average occupancy rate of 92 93.73% during the same period of 2015. Our Properties ~~experienced an overall increase in the average effective rent per square foot of $0.05 during the three months ended March 31, 2016 compared to the same period in 2015 for the same Properties.~~

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experienced an overall increase in the average effective rent per square foot of $0.04 during the six months ended June 30, 2016 compared to the same period in 2015 for the same Properties.

We seek to control operating expenses through our General Partner’s automated purchase order system that compares actual to budgeted expenses and requires management approval of variances, and through the use of third-party service providers to seek best available pricing.

Our existing financing is at fixed rates of interest and, accordingly, our interest cost has remained relatively stable during

the period of our ownership of the Properties. Based upon current economic conditions we expect that our financing costs will

remain relatively stable during fiscal year 2016.

~~(Back~~Three Months Ended June 30, 2016 Compared to ~~Index)~~Three Months Ended June 30, 2015

The following table sets forth the results of our operations for the periods indicated (in thousands, except per unit data):



	June 30,						Increase (Decrease)
	2016			2015			Amount			Percent
Revenues:
Rental income	$	2,062		$	2,463		(401		)	(16	)%

Expenses:
Rental operating	1,119			1,249			(130		)	(10	)%
Management fees – related parties	145			182			(37		)	(20	)%
General and administrative	81			138			(57		)	(41	)%
Depreciation and amortization	376			497			(121		)	(24	)%
Total expenses	1,721			2,066			(345		)	(17	)%

Income before other income (expense)	341			397			(56		)	(14	)%

Other income (expense):
Interest expense, net	(358		)	(462		)	104			23	%
Total other income (expenses)	$	(358	)	$	(462	)	$	104		23	%

Net (loss) income	$	(17	)	$	(65	)	$	48		74	%

Weighted average number of limited partner units outstanding	3,270			3,270

Net (loss) income per weighted average limited partner unit, basic and diluted	$	(0.01	)	$	(0.02	)

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Three Months Ended March 31, 2016 Compared to Three Months Ended March 31, 2015

	March 31,						Increase (Decrease)
	2016			2015			Amount			Percent
Revenues:
Rental income	$	2,039		$	2,993		$	(954	)	(32	)%
Expenses:
Rental operating	1,217			1,442			(225		)	(16	)%
Management fees – related parties	148			228			(80		)	(35	)%
General and administrative	208			200			8			4	%
Depreciation and amortization	377			498			(121		)	(24	)%
Total expenses	1,950			2,368			(418		)	(18	)%
Income before other income (expense)	89			625			(536		)	(86	)%
Other income (expense):
Interest expense, net	(359		)	(651		)	(292		)	(45	)%
Gain on sale of rental property	10			9,603			9,593			(100	)%
Loss on disposal of fixed assets	(1		)	—			1			100	%
Total other income (expenses)	$	(350	)	$	8,952		$	(9,302	)	(104	)%
Net (loss) income	$	(261	)	$	9,577
Weighted average number of limited partner units outstanding	3,270			3,270
Net (loss) income per weighted average limited partner unit, basic and diluted	$	(0.08	)	$	2.93

Revenues

We attribute the $~~954~~401,000 decrease in revenues principally to the sale of Tamarlane property in the ~~Hills~~fourth ~~and~~quarter ~~Tamarlane~~of ~~properties~~2015. inDuring the three months ended June 30, 2015, revenue attributable to Tamarlane was $495,000. Average effective rent per square foot and occupancy rates have varied within our expected range.

first and fourth quarter of 2015, respectively. Average effective rent per square foot and occupancy rates have varied within our

expected range.

Expenses

We attribute the $~~418~~345,000 decrease in expenses principally to:

• a $~~225~~130,000 decrease in rental operating expenses primarily due to:

▪ a $3596,000 ~~increase~~decrease in ~~property~~rental ~~and~~operating ~~general~~expenses ~~liability~~due ~~insurance~~to ~~claims~~sale ~~across~~of Tamarlane in the ~~RAI~~fourth ~~managed~~quarter ~~portfolio~~of 2015,

▪ a $~~193~~43,000 decrease in ~~rental~~property ~~operating~~and ~~expenses~~general ~~due~~liability toinsurance ~~sale~~claims ofacross the ~~Hills~~RAI ~~and~~managed ~~Tamarlane in the first and fourth quarter of 2015~~portfolio, ~~respectively,~~offset ~~and~~by

▪a $67,000 decrease in real estate taxes primarily attributable to the sale of the Hills in the first quarter of 2015.

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1718

▪a $10,000 increase in real estate taxes primarily attributable to annual increases of real estate taxes.


•	a $37,000 decrease in management fees corresponding to the decrease in revenues attributable to the sale of Tamarlane.


•	a $57,000 decrease in general and administrative expenses attributable to the sale of Tamarlane.


•	a $121,000 decrease in depreciation and amortization related to the sale of Tamarlane.

Other income (expense)


•	a $104,000 decrease in other income (expense) is principally due to reduction of interest expense related to both the amortization of principal balances on our mortgage notes and the payoff of the Tamarlane mortgage in conjunction with the sale of that Property.

Six Months Ended June 30, 2016 Compared to Six Months Ended June 30, 2015

The following table sets forth the results of our operations for the periods indicated (in thousands, except per unit data):



	June 30,						Increase (Decrease)
	2016			2015			Amount		Percent
Revenues:
Rental income	$	4,101		$	5,456		(1,355	)	(25	)%

Expenses:
Rental operating	2,336			2,690			(354	)	(13	)%
Management fees – related parties	293			411			(118	)	(29	)%
General and administrative	289			338			(49	)	(14	)%
Depreciation and amortization	753			995			(242	)	(24	)%
Total expenses	3,671			4,434			(763	)	(17	)%

Income before other income (expense)	430			1,022			(592	)	(58	)%

Other income (expense):
Interest expense, net	(716		)	(1,113		)	397		36	%
Gain on sale of rental property	10			9,603			(9,593	)	(100	)%
Loss on disposal of fixed assets	(2		)	—			(2	)	—	%
Total other income (expenses)	$	(708	)	$	8,490		(9,198	)	(108	)%

Net (loss) income	$	(278	)	$	9,512		(9,790	)	(103	)%

Weighted average number of limited partner units outstanding	3,270			3,270

Net (loss) income per weighted average limited partner unit, basic and diluted	$	(0.09	)	$	2.91

Revenues

We attribute the $1.4 million decrease in revenues principally to the sale of the Hills and Tamarlane properties in the

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~~• a $80,000 decrease in management fees corresponding to the decrease in revenues attributable to the sales of both the Hills and Tamarlane.~~19

•first aand ~~$121~~fourth quarters of 2015,~~000~~ ~~decrease~~respectively. inDuring ~~depreciation~~the six month ended June 30, 2015 revenue attributable the Hills and ~~amortization~~Tamarlane ofwere ~~which~~$602,000 and $~~120~~964,000, ~~related~~respectively. toAverage ~~the~~effective ~~sale~~rent ofper ~~Tamarlane~~square foot and occupancy rates have varied within our expected range.

Expenses

We attribute the $763,000 decrease in expenses principally to:


•	a $354,000 decrease in rental operating expenses primarily due to:


▪	a $8,000 decrease in property and general liability insurance claims across the RAI managed portfolio,


▪	a $289,000 decrease in rental operating expenses due to sale of the Hills and Tamarlane in the first and fourth quarters of 2015, respectively, and


▪	a $57,000 decrease in real estate taxes primarily attributable to the sale of the Hills and Tamarlane in the first and fourth quarters of 2015, respectively.


•	a $118,000 decrease in management fees corresponding to the decrease in revenues attributable to the sales of both the Hills and Tamarlane.


•	a $242,000 decrease in depreciation and amortization related to the sale of the Hills and Tamarlane.

Other income (expense)

• a $9.32 million decrease in other income (expense) is principally due to the gain on sale of rental properties of $9.6 million realized on the sale of the Hills in the first quarter of 2015.

• a $~~292~~397,000 decrease in interest expense is related to the amortization of principal balances on our mortgage notes

and the payoff of both the Hills and Tamarlane mortgages upon the sales of the Properties.

Liquidity and Capital Resources

The following table sets forth our sources and uses of cash (in thousands):

	Three Months Ended
	Six Months Ended
	March 31,
	June 30,
	2016			2015
Net cash provided by (used in) operating activities (1)	$	~~228~~127		$	(~~1,225~~549	)
Net cash (used in) provided by investing activities	(~~129~~276		)	11,~~611~~759
Net cash used in financing activities	(~~352~~691		)	(910,~~531~~022		)
Net (decrease) increase in cash	$	(~~253~~840	)	$	~~855~~1,188


(1)	Includes changes in operating assets and liabilities.

Our liquidity needs consist principally of funds used to pay the Properties’ debt service, operating expenses, capital

expenditures and monthly distributions to the limited partners. Our ability to meet our liquidity needs will be subject to our ability to generate cash from both operations and sales, and to control property operating expenses. The ability to generate cash from operations will depend on the occupancy rates, rates charged to tenants compared with competing properties in the area and the ability of tenants to pay rent. Occupancy rates can fluctuate based on changes in local market conditions where the Properties are located such as: excessive building resulting in an oversupply of similar properties, deterioration of surrounding areas, a decrease in market rates or local economic conditions including unemployment rates. The rental rates charged to tenants compared to competing properties can be impacted by a lack of perceived safety, convenience and attractiveness of a property. We have retained a portion of the proceeds from the sales of the Hills and Tamarlane to ensure adequate operating liquidity for the remaining term of the Partnership, pay off related debt and make ~~distribution~~distributions to investors. We also have retained a portion of the proceeds from the sales of the Hills and Tamarlane to ensure adequate funding for any future capital expenditures which we may determine to be necessary to position the remaining properties for eventual sale.

Under our capital improvements program, we could potentially spend approximately $273,000 during the remaining partnership term for property improvements intended to increase the Properties’ appeal to tenants and prospective purchasers. As we implement planned improvements to our Properties, we seek to maintain our occupancy rates and, potentially, to increase our rental rates and our cash flow from operating activities.

We are planning improvements to the Properties for the next two years based on the assumption that the General Partner will exercise its right to extend the term of the partnership through March of 2018. At this time, we expect that the General Partner will, in fact, do so in order to maximize the return to our investors.

The following table sets forth the capital expenditures incurred during the three months ended March 31, 2016 and estimated future capital expenditures, which are discretionary in nature (in thousands):

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1820

~~(Back~~The tofollowing ~~Index~~table sets forth the capital expenditures incurred during the six months ended June 30, 2016, which are discretionary in nature (in thousands):

Subsidiaries	Capital Expenditures		~~Future DiscretionaryCapital Expenditures~~
Bent Oaks	2225		62
Cape Cod	717		44
Woodhollow	56		74
Village	~~105~~188		93
Total	$	~~139~~236	$	~~273~~

~~Our capital expenditures were $139,000 during the three months ended March 31, 2016.~~ We have ~~planned~~begun athe ~~series~~process of ~~future~~dissolution ~~major~~through ~~capital~~the ~~projects~~strategic ~~for~~disposal ~~our~~of ~~Properties,~~assets. ~~including~~As ~~further~~of ~~landscaping~~June 30, ~~parking lot paving~~2016, ~~signage~~we ~~upgrades,~~own ~~upgrades~~four tomultifamily ~~exterior~~residential ~~structures,~~rental ~~replacing~~Properties ~~the~~through ~~HVAC~~our ~~condensing~~100% ~~units~~owned ~~and replacing water heaters~~subsidiaries. We ~~review~~Three ~~future~~of ~~expenditures~~the ~~periodically~~remaining ~~and~~four ~~adjust~~assets ~~them~~are under ~~based~~contract onto ~~both~~be ~~operating~~sold ~~results~~in ~~and~~third ~~local~~quarter ~~market~~of ~~conditions~~2016. If ~~market~~The ~~conditions~~remaining ~~improve and there is an acceptable return on the additional expenditures~~assets, weare ~~will~~expected ~~consider~~to ~~restoring~~be adisposed ~~previously~~of ~~contemplated interior upgrade program. We cannot assure you that we will complete projects currently planned or that we will not change our plans~~ in ~~response to changes in market conditions~~2016.

In connection with the acquisitions of our Properties, we have $25.87 million carrying value of total mortgage financing outstanding. For information regarding mortgage financing with respect to each Property, see Note 4 of the notes to our consolidated financial statements.

Our payables to related parties consist of primarily of investment management fees due to our General Partner, payable monthly, equal to 1% of the gross offering proceeds, net of any limited partnership interest owned by the General Partner. The General Partner must subordinate up to 100% of its annual investment management fee to the receipt by the limited partners of their Preferred Return. The limited partners partially received their Preferred Return during 2015 due to the sale of the Hills in the amount of $1.9 million. The investment management fee continues to accrue for the remaining rental properties.

The aggregate debt service requirement for all our loans on the four remaining assets for the twelve months ended ~~March~~June 3130, 2017 is $1.8 million, including principal payments of $~~460~~466,000. In addition to annual principal payments on the mortgage notes payable, total aggregate required escrow payments are $45.34 million through April 1, 2019.

Redemption of Units

We are permitted, in our General Partner’s sole discretion, to redeem units upon a unitholder’s request. However, we have no obligation to redeem units at any time, and we can decline to redeem units for any reason. Cumulatively through ~~March~~June 3130, 2016, a total of 5,000 units have been redeemed at an aggregate price of $46,710, although no units were redeemed in the ~~three~~six months then ended.

Legal Proceedings

We are a party to various routine legal proceedings arising out of the ordinary course of our business. Management believes that none of these actions, individually or in the aggregate, will have a material adverse effect on our financial condition or results of operations.

Critical Accounting Policies

The discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of our assets, liabilities, revenues and cost and expenses, and related disclosure of contingent assets and liabilities. On an on-going basis, we evaluate our estimates, including those related to certain accrued liabilities. We base our estimates on historical experience and on various other assumptions that we believe reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

For a discussion of our critical accounting policies and estimates, see the discussion in our Annual Report on Form 10-K for the year ended December 31, 2015.

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1921

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Off-Balance Sheet Arrangements

As of ~~March~~June 3130, 2016 and December 31, 2015, we did not have any off-balance sheet arrangements or obligations, including contingent obligations, other than guarantees by the General Partner of certain limited standard expectations to the non-recourse nature of the mortgage notes which are secured by the Properties.


ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKS

Omitted pursuant to Regulation S-K, Item 305(e).


ITEM 4.	CONTROLS AND PROCEDURES

Disclosure Controls

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our periodic reports under the Securities Exchange Act of 1934, as amended, or the Exchange Act, is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our General Partner, including its chief executive officer and its chief financial officer, as appropriate, to allow timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, our management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and our management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

Under the supervision of the chief executive officer and chief financial officer of our General Partner, we have carried out an evaluation of the effectiveness of our disclosure controls and procedures as of the end of the period covered by this report. Based upon that evaluation, our chief executive officer and chief financial officer concluded that our disclosure controls and procedures are effective at the reasonable assurance level.

Changes in Internal Control over Financial Reporting

There has been no change in our internal control over financial reporting that occurred during the quarter ended ~~March~~June 3130, 2016 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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RESOURCE REAL ESTATE INVESTORS 7, L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

JUNE 30, 2016

(unaudited)

PART II

OTHER INFORMATION

ITEM 6. EXHIBITS

Exhibit No.		Description
3.1		Amended and Restated Agreement of Limited Partnership. (1)
3.2		Certificate of Limited Partnership. (1)
4.1		Forms of letters sent to limited partners confirming their investment. (1)
10.1		Agreement of Purchase and Sale - Casco Bay Portfolio (Tamarlane) (incorporated by reference to the Partnership's Annual Report on Form 10-K filed March 29, 2016)
10.2		Agreement of Purchase and Sale - The Hills (incorporated by reference to the Partnership's Annual Report on Form 10-K filed March 29, 2016)
31.1		Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2		Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1		Certification of Chief Executive Officer pursuant to Section 1350 18 U.S.C., as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2		Certification of Chief Financial Officer pursuant to Section 1350 18 U.S.C., as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.1		The following information from the Partnership's Quarterly Report on Form 10-Q for the quarter ended ~~March~~June 3130, 2016, formatted in XBRL (eXtensible Business Reporting Language): (i) Consolidated Balance Sheets; (ii) Consolidated Statements of Operations; (iii) Consolidated Statement of Changes in Partners' Capital; and (iv) Consolidated Statements of Cash Flows.


(1)	Filed previously as an exhibit to the Partnership’s registration statement on Form 10 for the year ended December 31, 2008 and by this reference incorporated herein.

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2023

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RESOURCE REAL ESTATE INVESTORS 7, L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

JUNE 30, 2016

(unaudited)

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.

	RESOURCE REAL ESTATE INVESTORS 7, L.P.
	By: Resource Capital Partners, Inc., its general partner
May 16, 2016	By: /s/ Kevin M. Finkel
August 12, 2016	By: /s/ Kevin M. Finkel
	KEVIN M. FINKEL
	President
	(Principal Executive Officer)

May 16, 2016	By: /s/ Steven R. Saltzman
August 12, 2016	By: /s/ Steven R. Saltzman
	STEVEN R. SALTZMAN
	Vice President – Finance
	(Principal Financial and Accounting Officer)

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2224

Filing Compare · Resource Real Estate Investors 7, L.P.