February 12, 1997




Securities and Exchange Commission
Filer Support, Edgar
Operation Center, Stop 0-7
6432 General Green Way
Alexandria, VA  22312


Re:     Boston Financial Tax Credit Fund VII, A Limited Partnership
        Report on Form 10-Q Edgar for Quarter Ended December 31, 1996
        File No. 0-24584


Dear Sir/Madam:

Pursuant to the  requirements of Rule 901(d) of Regulation S-T,  enclosed is one
copy of subject report.


Very truly yours,





/s/Veronica J. Curioso
Veronica J. Curioso
Assistant Controller



TC7-10Q3.DOC



<PAGE>


                                  UNITED STATES
                       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

(Mark One)

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

For the quarterly period ended      December 31, 1996

                                       OR

[   ]     TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES   
          EXCHANGE ACT OF 1934


For the transition period from                  to


For Quarter Ended   December 31, 1996       Commission file number  0-24584
                  ----------------------------------    
          Boston Financial Tax Credit Fund VII, A Limited Partnership
             (Exact name of registrant as specified in its charter)


       Massachusetts                               04-3166203
(State or other jurisdiction of           (I.R.S. Employer Identification No.)
incorporation or organization)


101 Arch Street, Boston, Massachusetts                   02110-1106
(Address of principal executive offices)                  (Zip Code)


Registrant's telephone number, including area code    (617)439-3911

        Indicate by check mark whether the  registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934  during  the  preceding  12 months  (or for such  shorter  period  that the
registrant was required to file such reports),  and (2) has been subject to such
filing requirements for the past 90 days. Yes X No .


<PAGE>



          BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED PARTNERSHIP


                                TABLE OF CONTENTS




PART I - FINANCIAL INFORMATION                                        Page No.
------------------------------                                        --------

Item 1.   Financial Statements

          Balance Sheets - December 31, 1996 (Unaudited)
               and March 31, 1996                                            1

          Statements of Operations (Unaudited) - For the Three and
               Nine Months Ended December 31, 1996 and 1995                  2

          Statement of Changes in Partners' Equity (Deficiency)
               (Unaudited) - For the Nine Months Ended December 31, 1996     3

          Statements of Cash Flows (Unaudited) - For the Nine
               Months Ended December 31, 1996 and 1995                       4

          Notes to Financial Statements (Unaudited)                          5

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

PART II - OTHER INFORMATION

Items 1-6                                                                   10

SIGNATURE                                                                   11


<PAGE>

          BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED PARTNERSHIP

                                                         
                                 BALANCE SHEETS
<TABLE>
<CAPTION>

                                                                     December 31,             March 31,
                                                                         1996                   1996
                                                                      (Unaudited)
<S>                                                                   <C>                   <C>
Assets
Current assets:
     Cash and cash equivalents                                        $    359,948          $    334,845
     Other current assets                                                   23,742                29,943
                                                                      ------------          ------------
          Total current assets                                             383,690               364,788


Investments in Local Limited Partnerships (Note 2)                      32,819,776            34,328,400
Restricted cash                                                            235,491               227,320
Marketable securities, at fair value  (Note 1)                           3,187,839             3,855,342
Organization costs, net of accumulated
   amortization of $38,333 and
   $30,833, respectively                                                    11,667                19,167
                                                                      ------------          ------------
          Total Assets                                                $ 36,638,463          $ 38,795,017
                                                                      ============          ============


Liabilities and Partners' Equity
Current liabilities:
     Accounts payable to affiliates                                   $    272,642          $    212,975
     Accounts payable and accrued expenses                                  50,591                66,417
                                                                      ------------          ------------
          Total current liabilities                                        323,233               279,392
                                                                      ------------          ------------

Commitments (Note 3)

General, Initial and Investor Limited Partners' Equity                  36,337,624            38,536,506
Net unrealized losses on marketable securities                             (22,394)              (20,881)
                                                                      ------------          ------------
          Total Partners' Equity                                        36,315,230            38,515,625
                                                                      ------------          ------------
          Total Liabilities and Partners' Equity                      $ 36,638,463          $ 38,795,017
                                                                      ============          ============
</TABLE>

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


<PAGE>

          BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED PARTNERSHIP
                            STATEMENTS OF OPERATIONS
                                   (Unaudited)
                 For the Three and Nine Months Ended December 31, 1996 and 1995
<TABLE>
<CAPTION>

                                              Three Months Ended                         Nine Months Ended
                                       December 31,         December 31,          December 31,        December 31,
                                           1996                 1995                  1996                1995
                                     -----------------     ----------------     -----------------    ----------------
<S>                                 <C>                   <C>                   <C>                 <C>

Revenue:
   Investment                       $       43,057        $      77,738         $     146,175       $      163,489
   Other                                     4,856                1,110                71,689               45,099
                                    --------------        -------------         -------------       --------------
       Total Revenue                        47,913               78,848               217,864              208,588
                                    --------------        -------------         -------------       --------------

Expenses:
   Asset management fee,
    related party                           68,826               67,146               206,478              201,438
   General and administrative
    (includes reimbursements to
    an affiliate in the amounts of
    $80,646 and $80,028
    in 1996 and 1995, respectively)         41,132               56,081               160,991              176,182
   Amortization                             11,457               10,119                34,372               30,356
                                    --------------        -------------         -------------       --------------
       Total Expenses                      121,415              133,346               401,841              407,976
                                    --------------        -------------         -------------       --------------

Loss before equity in losses
    of Local Limited Partnerships          (73,502)             (54,498)             (183,977)            (199,388)

Equity in losses of
   Local Limited Partnerships             (775,322)            (637,626)           (2,014,905)          (1,895,061)
                                    --------------        -------------         -------------       --------------

Net Loss                            $     (848,824)       $    (692,124)        $  (2,198,882)      $   (2,094,449)
                                    ==============        =============         =============       ==============


Net Loss allocated:
   To General Partners              $       (8,488)       $      (6,921)        $     (21,989)      $      (20,945)
   To Limited Partners                    (840,336)            (685,203)           (2,176,893)          (2,073,504)
                                    --------------        -------------         -------------       --------------
                                    $     (848,824)       $    (692,124)        $  (2,198,882)      $   (2,094,449)
                                    ==============        =============         =============       ==============

Net Loss per Limited
   Partnership Unit
   (50,930 Units)                   $      (16.50)        $      (13.45)        $     (42.74)       $       (40.71)
                                    =============         =============         ============        ==============
</TABLE>

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

<PAGE>
          BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED PARTNERSHIP

              STATEMENT OF CHANGES IN PARTNERS' EQUITY (DEFICIENCY)
                                   (Unaudited)
                   For the Nine Months Ended December 31, 1996
<TABLE>
<CAPTION>

                                                   Initial         Investor             Net
                                   General         Limited          Limited         Unrealized
                                   Partners       Partners         Partners           Losses              Total
<S>                              <C>               <C>          <C>                 <C>                <C>   

Balance at March 31, 1996        $  (58,956)       $ 5,000      $ 38,590,462        $   (20,881)       $ 38,515,625

Net change in net unrealized
   losses on marketable securities
   available for sale                     -              -                 -             (1,513)             (1,513)

Net Loss                            (21,989)             -        (2,176,893)                 -          (2,198,882)
                                 ----------        -------      ------------        -----------        ------------

Balance at December 31, 1996     $  (80,945)       $ 5,000      $ 36,413,569        $   (22,394)       $ 36,315,230
                                 ==========        =======      ============        ===========        ============
</TABLE>

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

<PAGE>
          BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED PARTNERSHIP

                            STATEMENTS OF CASH FLOWS
                                   (Unaudited)
              For the Nine Months Ended December 31, 1996 and 1995
<TABLE>
<CAPTION>

                                                                                 1996                  1995
                                                                            -------------         ---------
<S>                                                                         <C>                   <C>  

Net cash used for operating activities                                      $   (178,710)         $   (390,839)
                                                                            -------------         ------------

Cash flows from investing activities:
    Purchases of marketable securities                                        (1,095,655)           (9,964,932)
    Proceeds from sales and maturities
       of marketable securities                                                1,843,809            11,679,461
    Investments in Local Limited Partnerships                                   (663,227)           (2,317,269)
    Cash distributions received from
       Local Limited Partnerships                                                127,057                73,148
    Payment of acquisition fees and expenses                                           -              (104,056)
    Restricted cash                                                               (8,171)                    -
                                                                            ------------          ------------
Net cash provided by (used for) investing activities                             203,813              (633,648)
                                                                            ------------          ------------

Cash flows from financing activities:
    Payment of issuance expenses                                                       -                (4,364)
                                                                            ------------          ------------
Net cash used for financing activities                                                 -                (4,364)
                                                                            ------------          ------------

Net increase (decrease) in cash and cash equivalents                              25,103            (1,028,851)

Cash and cash equivalents, beginning of period                                   334,845             1,768,604
                                                                            ------------          ------------

Cash and cash equivalents, end of period                                    $    359,948          $    739,753
                                                                            ============          ============
</TABLE>

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


<PAGE>
          BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED PARTNERSHIP


                          NOTES TO FINANCIAL STATEMENTS
                                   (Unaudited)

The  unaudited  financial  statements  presented  herein  have been  prepared in
accordance  with the  instructions  to Form 10-Q and do not  include  all of the
information  and note  disclosures  required by  generally  accepted  accounting
principles.  These  statements  should be read in conjunction with the financial
statements  and notes  thereto  included with the Fund's 10-K for the year ended
March 31, 1996. In the opinion of management, these financial statements include
all adjustments,  consisting only of normal recurring adjustments,  necessary to
present  fairly the Fund's  financial  position and results of  operations.  The
results of operations for the periods may not be indicative of the results to be
expected for the year.


1.   Marketable Securities

A summary of Marketable Securities is as follows:
<TABLE>
<CAPTION>

                                                                Gross           Gross
                                                              Unrealized     Unrealized
                                               Cost              Gains          Losses       Fair Value
<S>                                        <C>                 <C>            <C>            <C>  

Debt securities issued by
   the US Treasury and other
   US Government corporations
   and agencies                            $  2,026,562        $    867       $  (9,870)     $ 2,017,559

Mortgage backed securities                    1,183,671               -         (13,391)       1,170,280
                                           ------------        --------       ---------      -----------

Marketable securities at
   December 31, 1996                       $  3,210,233        $    867       $ (23,261)     $ 3,187,839
                                           ============        ========       =========      ===========

Debt securities issued by
   the US Treasury and other
   US government corporations
   and agencies                            $  2,563,670        $      -       $ (10,111)     $ 2,553,559

Mortgage backed securities                    1,312,553               -         (10,770)       1,301,783
                                           ------------        --------       ---------      -----------

Marketable securities at
   March 31, 1996                          $  3,876,223        $      -       $ (20,881)     $ 3,855,342
                                           ============        ========       =========      ===========
</TABLE>

The contractual maturities at December 31, 1996 are as follows:
<TABLE>
<CAPTION>
                                                                                 Cost        Fair Value
<S>                                                                         <C>             <C> 

Due in one year or less                                                     $    663,625    $    661,050
Due in one to five years                                                       1,362,937       1,356,509
Mortgage backed securities                                                     1,183,671       1,170,280
                                                                            ------------    ------------
                                                                            $  3,210,233    $  3,187,839
                                                                            ============    ============
</TABLE>

Actual maturities may differ from contractual  maturities because some borrowers
have the right to call or prepay obligations. Proceeds from sales and maturities
were approximately $1,844,000 and $11,679,000 for the nine months ended December
31, 1996 and 1995,  respectively.  Included in investment income are gross gains
of  $89,295  and  $43,174  and gross  losses of $7,131  and  $93,863  which were
realized on these sales during the nine months ended December 31, 1996 and 1995,
respectively.


<PAGE>
          BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED PARTNERSHIP

                    NOTES TO FINANCIAL STATEMENTS (continued)
                                   (Unaudited)

2.   Investments in Local Limited Partnerships

The Fund has acquired interests in nineteen Local Limited Partnerships which own
and operate  multi-family  housing  complexes.  The Fund,  as  Investor  Limited
Partner,  pursuant to the various  Local  Limited  Partnership  Agreements,  has
generally  acquired a 99% interest in the profits,  losses, tax credits and cash
flows from operations of each of the Local Limited Partnerships.  In the case of
Springwood,  the Fund owns a 19.80%  interest  and an  affiliate  of the General
Partner owns the remaining 79.2% Limited Partnership interest. Upon dissolution,
proceeds will be distributed according to each respective partnership agreement.

The  following is a summary of  Investments  in Local  Limited  Partnerships  at
December 31, 1996 (Unaudited):
<TABLE>
<CAPTION>
<S>                                                                                                <C>  

Capital Contributions paid to Local Limited Partnerships
   and purchase price paid to withdrawing partners of
   Local Limited Partnerships                                                                      $  39,189,961

Cumulative equity in losses of Local Limited Partnerships                                             (7,313,133)

Cash distributions received from Local Limited Partnerships                                             (227,205)
                                                                                                   -------------

Investments in Local Limited Partnerships before adjustments                                          31,649,623

Excess of investment cost over the underlying net assets acquired:

   Acquisition fees and expenses                                                                       1,252,338

   Accumulated amortization of acquisition fees and expenses                                             (82,185)
                                                                                                   -------------

Investments in Local Limited Partnerships                                                          $  32,819,776
                                                                                                   =============
</TABLE>
     

Summarized  financial  information from the combined financial statements of the
nineteen  Local  Limited  Partnerships  in which  the Fund  has  invested  is as
follows:

Summarized Balance Sheets - as of September 30, 1996 (Unaudited):
<TABLE>
<CAPTION>
<S>                                                                                                <C> 

Assets:
   Investment property, net                                                                        $ 100,743,255
   Current assets                                                                                      5,011,711
   Other assets                                                                                        3,770,339
                                                                                                   -------------
         Total Assets                                                                              $ 109,525,305
                                                                                                   =============

Liabilities and Partners' Equity:
   Long-term debt                                                                                  $  59,843,725
   Current liabilities (includes current portion of long term debt)                                    2,971,471
   Other debt                                                                                          4,513,399
                                                                                                   -------------
         Total Liabilities                                                                            67,328,595

Partners' Equity                                                                                      42,196,710
                                                                                                   -------------
         Total Liabilities and Partners' Equity                                                    $ 109,525,305
                                                                                                   =============
</TABLE>
                                               
<PAGE>
          BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED PARTNERSHIP

                    NOTES TO FINANCIAL STATEMENTS (continued)
                                   (Unaudited)

2.   Investments in Local Limited Partnership (continued)

Summarized Statements of Operations for the nine months ended September 30, 1996
(Unaudited):
<TABLE>
<CAPTION>
<S>                                                                                                 <C>

Rental and other revenue                                                                            $  9,088,424
                                                                                                    ------------

Expenses:
   Operating                                                                                           4,363,408
   Interest                                                                                            3,795,786
   Depreciation and amortization                                                                       3,051,195
                                                                                                    ------------
       Total Expenses                                                                                 11,210,389

Net Loss                                                                                            $ (2,121,965)
                                                                                                    ============

Fund's share of Net Loss                                                                            $ (2,014,905)
                                                                                                    ============
Other Partners' share of Net Loss                                                                   $   (107,060)
                                                                                                    ============                 
</TABLE>                                                   

3.   Commitments

At  December  31,  1996,   the  Fund  has  committed  to  make  future   capital
contributions  and pay future purchase price  installments on its investments in
Local  Limited  Partnerships.  These  future  payments are  contingent  upon the
achievement  of certain  criteria as set forth in the Local Limited  Partnership
Agreements and total approximately $752,000.


<PAGE>
          BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED PARTNERSHIP

                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Liquidity and Capital Resources

At December  31,  1996,  the Fund had cash and cash  equivalents  of $359,948 as
compared with $334,845 at March 31, 1996. The increase is primarily attributable
to proceeds  from sales and  maturities  of  marketable  securities in excess of
purchases of marketable  securities and cash  distributions  received from Local
Limited  Partnerships.  These  increases are partially  offset by investments in
Local Limited Partnerships and cash used for operating activities.

As of December 31, 1996,  approximately $2,483,000 of cash, cash equivalents and
marketable  securities has been  designated as Reserves by the Managing  General
Partner.  The Reserves were  established  to be used for working  capital of the
Fund and  contingencies  related to the ownership of Local  Limited  Partnership
interests.  Management  believes  that the interest  income  earned on reserves,
along with cash distributions  received from Local Limited Partnerships,  to the
extent  available,  will be  sufficient to fund the Fund's  ongoing  operations.
Reserves may be used to fund operating  deficits if the Managing General Partner
deems funding appropriate.

At  December  31,  1996,   the  Fund  has  committed  to  make  future   capital
contributions  and pay future purchase price  installments on its investments in
Local  Limited  Partnerships.  These  future  payments are  contingent  upon the
achievement  of certain  criteria as set forth in the Local Limited  Partnership
Agreements and total approximately $752,000.

Since the Fund invests as a limited partner, the Fund has no contractual duty to
provide  additional  funds to Local  Limited  Partnerships  beyond its specified
investment.  Thus, as of December 31, 1996, the Fund had no contractual or other
obligation to any Local Limited Partnership, which had not been paid or provided
for, except as described above.

In the event a Local Limited Partnership  encounters  operating  difficulties  
requiring additional funds, the Fund might deem it in its best  interest to 
provide  such funds,  voluntarily,  in order to protect its  investment.  No
such event has occurred to date.


Cash Distributions

No cash distributions were made during the nine months ended December 31, 1996.


Results of Operations

The Fund's  results of operations  for the three and nine months ended  December
31, 1996  resulted in net losses of $848,824 and  $2,198,882,  respectively,  as
compared to net losses of $692,124 and  $2,094,449 for the same periods in 1995.
The increase in net loss for the three and nine months  ended  December 31, 1996
as compared to the same period in 1995 is primarily  attributable to an increase
in equity in losses of Local Limited  Partnerships  and a decrease in investment
revenue.


The  equity in  losses of Local  Limited  Partnerships  increased  from the 1995
periods to the 1996 periods due to an increase in the number of properties which
have  completed  construction  and are in full  operation.  This has resulted in
increased  depreciation,  interest  and  operating  expenses  over total  income
earned.  The income  earned on  investments  has  decreased as a result of lower
investment balance from 1995 to 1996. As capital contributions are paid to Local
Limited  Partnerships,  the Fund has  less  cash to  invest  in  securities  and
therefore earns less revenue.


<PAGE>
          BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED PARTNERSHIP

                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Property Discussions

Los Claveles II, located in Trujillio Alto, Puerto Rico, continues to experience
operating  difficulties  due to  ongoing  capital  repair  needs and  management
issues. As previously reported,  most of these difficulties stem from widespread
water  infiltration  that  caused  subsidy  payments  to  be  suspended  pending
completion of required  property  repairs.  The suspension of Section 8 payments
caused large fluctuations in monthly revenue and a subsequent  mortgage default.
The  Partnership  cured the default by advancing  $208,000 from the  developer's
escrow.  Recently,  an affiliate of the Managing  General  Partner  successfully
negotiated with the Local General  Partners,  lender and local housing authority
to replace the management  agent. The new managing agent assumed  responsibility
for the  property  in  December  1996.  It appears  likely  that  resolving  the
property's   long-term   problems  might  require  advances  from  property  and
Partnership reserves. An affiliate of the Managing General Partner is continuing
to work closely with the management agent,  Local General Partners and lender to
devise a plan  which  preserves  the  Partnership's  long-term  interest  in the
property.



<PAGE>
          BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED PARTNERSHIP




PART II       OTHER INFORMATION

Items 1-5     Not applicable

Item 6        Exhibits and reports on Form 8-K

                (a)Exhibits - None

                (b)Reports  on Form 8-K - No  reports  on Form  8-K  were  filed
                   during the quarter ended December 31, 1996.



<PAGE>
          BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED PARTNERSHIP

                                    SIGNATURE


Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned, thereunto duly authorized.


DATED:  February 12, 1997         BOSTON FINANCIAL TAX CREDIT FUND VII,
                                  A LIMITED PARTNERSHIP


                                  By: Arch Street VII, Inc.,
                                      its Managing General Partner




                                      /s/Georgia Murray
                                      Georgia Murray
                                      A Managing Director, Treasurer and
                                      Chief Financial Officer




<PAGE>