biohazard4 took place in autumn of 2004, six years after the events of Raccoon City (this was revealed in the final trailer for the game, the opening sequence and Leon's report on the game events).
That would place biohazard DEGENERATION sometime in late 2005 if they take the "7 years" literally.
I don't think the definite year the events of BIOHAZARD5 are supposed to occur in has been revealed yet. A translated Chinese Famitsu news report by xfactor told us "It's (RE5) more like a summary of the life for Chris in the last 10 years, rather than a closure". Soon after, everyone adopted that as "events take place 10 years after Raccoon City/the mansion incident", even IGN and 1Up - who both seem to have a weird infatuation for adopting translations on fansites and claiming them as their own.
That said, I still think it takes place in 2008. And I guess the game will be released sometime in 2009, mirroring the release of biohazard4.