August 14, 2007




Securities and Exchange Commission
450 Fifth Street, NW
Washington, DC  20549

Re:    Boston Financial Tax Credit Fund VII, A Limited Partnership
       Report on Form 10-QSB for the Quarter Ended June 30, 2007
       File Number 0-24584


Dear Sir/Madam:


Pursuant to the requirements of section 15(d) of the Securities Exchange Act of
1934, filed herewith a copy of subject report.


Very truly yours,


/s/Patricia Olsen-Goldberg
Patricia Olsen-Goldberg
Controller





TC7-Q1.DOC


<PAGE>


                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                   FORM 10-QSB


(Mark One)

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

For the quarterly period ended                            June 30, 2007
              ------------------------------------------------------------------

                                                         OR

[   ]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 0-24584

               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
<TABLE>
<CAPTION>



<S>     <C>                                                                          <C>

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

Item 1.   Financial Statements

          Balance Sheet (Unaudited) - June 30, 2007                                       1

          Statements of Operations (Unaudited) -
               For the Three Months Ended June 30, 2007 and 2006                          2

          Statement of Changes in Partners' Equity
               (Unaudited) - For the Three Months Ended June 30, 2007                     3

          Statements of Cash Flows (Unaudited) -
               For the Three Months Ended June 30, 2007 and 2006                          4

          Notes to the Financial Statements (Unaudited)                                   5

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

Item 3.  Controls and Procedures                                                         13
PART II - OTHER INFORMATION

Items 1-6                                                                                14

SIGNATURE                                                                                15


CERTIFICATIONS                                                                           16
</TABLE>

<PAGE>


            BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED PARTNERSHIP
                                  BALANCE SHEET
                                  June 30, 2007
                                   (Unaudited)


<TABLE>
<CAPTION>
<S>   <C>                                                                                       <C>


Assets

Cash and cash equivalents                                                                         $       785,121
Restricted cash                                                                                           265,067
Investments in Local Limited Partnerships (Note 1)                                                      2,902,277
                                                                                                  ---------------
     Total Assets                                                                                 $     3,952,465
                                                                                                  ===============

Liabilities and Partners' Equity

Due to affiliates                                                                                 $       301,426
Accrued expenses                                                                                           34,464
Other liabilities                                                                                          31,225
                                                                                                  ---------------
     Total Liabilities                                                                                    367,115
                                                                                                  ---------------

Commitments (Note 2)

General, Initial and Investor Limited Partners' Equity                                                  3,585,350
                                                                                                  ---------------
     Total Liabilities and Partners' Equity                                                       $     3,952,465
                                                                                                  ===============
</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
                For the Three Months Ended June 30, 2007 and 2006
                                   (Unaudited)
<TABLE>
<CAPTION>
<S>     <C>                                                                      <C>                   <C>



                                                                                 2007                       2006
                                                                           ----------------              ----------
Revenue:
   Investment                                                              $            883        $         11,883
   Other                                                                                  -                  15,000
                                                                           ----------------        ----------------
     Total Revenue                                                                      883                  26,883
                                                                           ----------------        ----------------

Expense:
   Asset management fees, affiliate                                                  90,570                  88,361
   Provision for valuation allowance on advances to
     Local Limited Partnerships                                                           -               1,228,154
   Provision for valuation allowance on investments in
     Local Limited Partnerships                                                           -                       -
   General and administrative (includes reimbursements to
     an affiliate in the amount of  $37,581 and  $34,723
     in 2007 and 2006, respectively)                                                 72,604                 133,742
   Amortization                                                                       4,108                   4,475
                                                                           ----------------        ----------------
     Total Expense                                                                  167,282               1,454,732
                                                                           ----------------        ----------------

Loss before equity in losses of Local Limited Partnerships                         (166,399)             (1,427,849)

Equity in losses of Local Limited Partnerships (Note 1)                            (163,186)               (318,181)

Gain on disposal of investments in Local Limited Partnerships                             -               1,220,353
                                                                           ----------------         ----------------

Net Loss                                                                   $       (329,585)       $       (525,677)
                                                                           ================         ================

Net Loss allocated:
   General Partners                                                        $         (3,296)       $         (5,257)
   Limited Partners                                                                (326,289)               (520,420)
                                                                           ----------------         ----------------
                                                                           $       (329,585)       $       (525,677)
                                                                           ================         ================
Net Loss per Limited Partner Unit
   (50,930 Units)                                                          $          (6.41)       $         (10.22)
                                                                           ================         ================
</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
                    For the Three Months Ended June 30, 2007
                                   (Unaudited)


<TABLE>
<CAPTION>



<S>     <C>                                  <C>               <C>               <C>                <C>

                                                               Initial           Investor
                                              General          Limited            Limited
                                             Partners          Partner            Partner            Total

    Balance at March 31, 2007               $    39,149     $     5,000       $    3,870,786     $  3,914,935
                                            -----------     -----------       --------------     ------------

    Net Loss                                     (3,296)              -             (326,289)        (329,585)
                                            -----------     -----------       --------------      ------------

    Balance at June 30, 2007                $    35,853     $     5,000       $    3,544,497     $  3,585,350
                                            ===========     ===========       ==============      ============
</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
                For the Three Months Ended June 30, 2007 and 2006
                                   (Unaudited)



<TABLE>
<CAPTION>


<S>     <C>                                                                 <C>                       <C>

                                                                              2007                     2006
                                                                          -------------               --------

Net cash provided by (used for) operating activities                      $     109,986          $     (11,464)

Net cash provided by investing activities                                       117,806                 20,716
                                                                          -------------          -------------

Net increase in cash and cash equivalents                                       227,792                  9,252

Cash and cash equivalents, beginning                                            557,329                546,806
                                                                          -------------          -------------

Cash and cash equivalents, ending                                         $     785,121          $     556,058
                                                                          =============          =============

</TABLE>



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


             BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED PARTNERSHIP
                        NOTES TO THE FINANCIAL STATEMENTS
                                   (Unaudited)


The unaudited financial statements presented herein have been prepared in
accordance with the instructions to Form 10-QSB and do not include all of the
information and note disclosures required by accounting principles generally
accepted in the United States of America. These statements should be read in
conjunction with the financial statements and notes thereto included with the
Fund's Form 10-KSB for the year ended March 31, 2007. In the opinion of the
Managing General Partner, 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 period may not be indicative of the results to be expected for the year.

The Managing General Partner of the Fund has elected to report results of the
Local Limited Partnerships in which the Fund has a limited partnership interest
on a 90 day lag basis because the Local Limited Partnerships report their
results on a calendar year basis. Accordingly, the financial information about
the Local Limited Partnerships that is included in the accompanying financial
statements is as of March 31, 2007 and 2006.

Generally, profits, losses, tax credits and cash flow from operations are
allocated 99% to the Limited Partners and 1% to the General Partners. Net
proceeds from a sale or refinancing will be allocated 95% to the Limited
Partners and 5% to the General Partners, after certain priority payments. The
General Partners may have an obligation to fund deficits in their capital
accounts, subject to limits set forth in the Partnership Agreement. However, to
the extent that the General Partners' capital accounts are in deficit positions,
certain items of net income may be allocated to the General Partners in
accordance with the Partnership Agreement.

1.   Investments in Local Limited Partnerships

The Fund has limited partnership interests in seventeen Local Limited
Partnerships which were organized for the purpose of owning and operating
multi-family housing complexes, all of which are government-assisted. The Fund's
ownership interest in each Local Limited Partnership is 99%, with the exception
of Springwood Apartments which is 19.8%, Eden Park which is 67%, Fountain Lakes
which is 90%, and Twin Oaks Meadow which is 95.89%. The Fund may have negotiated
or may negotiate options with the Local General Partners to purchase or sell the
Fund's interests in the Local Limited Partnership's at the end of the Compliance
Period at nominal prices. In the event that Local Limited Partnerships are sold
to third parties, or upon dissolution of the Local Limited Partnerships,
proceeds will be distributed according to the terms of each Local Limited
Partnership agreement.
<TABLE>
<CAPTION>
<S>                                                                                                <C>

The following is a summary of investments in Local Limited Partnerships at June
30, 2007:

Capital contributions and advances paid to Local Limited Partnerships and
purchase
   price paid to withdrawing partners of Local Limited Partnerships                                 $    35,127,600

Cumulative equity in losses of Local Limited Partnerships (excluding cumulative
   unrecognized losses of $11,602,971)                                                                  (25,508,405)

Cumulative cash distributions received from Local Limited Partnerships                                   (2,350,022)
                                                                                                     ---------------

Investments in Local Limited Partnerships before adjustments                                              7,269,173

Excess investment costs over the underlying assets acquired:

   Acquisition fees and expenses                                                                          1,136,062

   Cumulative amortization of acquisition fees and expenses                                                (340,956)
                                                                                                     ---------------

Investments in Local Limited Partnerships before valuation allowance                                      8,064,279

Valuation allowance on investments in Local Limited Partnerships                                         (5,162,002)
                                                                                                     ---------------

Investments in Local Limited Partnerships                                                           $     2,902,277
                                                                                                     ===============
</TABLE>


<PAGE>

            BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED PARTNERSHIP
                  NOTES TO THE FINANCIAL STATEMENTS (continued)
                                   (Unaudited)


1. Investments in Local Limited Partnerships (continued)

The Fund's share of the net losses of the Local Limited Partnerships for the
three months ended June 30, 2007 is $713,826. For the three months ended June
30, 2007, the Fund has not recognized $550,640 of equity in losses relating to
certain Local Limited Partnerships in which cumulative equity in losses and
distributions exceeded its total investments in these Local Limited
Partnerships.

The Fund's interest in one of its investments in Local Limited Partnerships was
sold during the three months ended June 30, 2007. The Fund did not receive any
sales proceeds due to the property's outstanding debt exceeding the sales price
of the property. However, the Fund did receive $147,901 which was utilized by
the General Partner as a repayment of prior advances.

The Fund has also recorded a valuation allowance for its investments in certain
Local Limited Partnerships in order to appropriately reflect the estimated net
realizable value of these investments.

2.   Commitments

EITF 94-1, "Accounting for Tax Benefits Resulting from Investments in Affordable
Housing Projects" ("EITF 94-1") requires recognition of a liability for delayed
equity capital contributions to Local Limited Partnerships that are contingent
upon a future event when that contingent event becomes probable. As of June 30,
2007, the Fund has concluded that delayed equity capital contributions in the
amount of $207,281 are not probable and therefore, has not recognized this
amount as a liability. Of this amount, the Fund has set aside $148,281 in escrow
for future capital contributions to one Local Limited Partnership.

3.   Significant Subsidiaries

The following Local Limited Partnerships invested in by the Fund represent more
than 20% of the Fund's total assets or equity as of June 30, 2007 or 2006 or net
losses for the three months ended either June 30, 2007 or 2006. The following
financial information represents the performance of these Local Limited
Partnerships for the three months ended March 31, 2007 and 2006:

Citrus Glen                                2007                     2006
-----------                           ---------------           --------

Revenue                                      N/A            $     373,885
Net Loss                                     N/A            $     (47,091)

Fairhaven Manor

Revenue                           $        85,356           $      74,969
Net Loss                          $        (2,293)          $     (2,570)




<PAGE>

                BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED PARTNERSHIP
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS


Certain matters discussed herein constitute forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995. The Fund
intends such forward-looking statements to be covered by the safe harbor
provisions for forward-looking statements and is including this statement for
purposes of complying with these safe harbor provisions. Although the Fund
believes the forward-looking statements are based on reasonable assumptions, the
Fund can give no assurance that its expectations will be attained. Actual
results and timing of certain events could differ materially from those
projected in or contemplated by the forward-looking statements due to a number
of factors, including, without limitation, general economic and real estate
conditions and interest rates.

Critical Accounting Policies

The Fund's accounting polices include those that relate to its recognition of
investments in Local Limited Partnerships using the equity method of accounting.
The Fund's policy is as follows:

The Local Limited Partnerships in which the Fund invests are Variable Interest
Entities ("VIE"s). The Fund is involved with the VIEs as a non-controlling
limited partner equity holder. Because the Fund is not the primary beneficiary
of these VIEs, it accounts for its investments in the Local Limited Partnerships
using the equity method of accounting. As a result of its involvement with the
VIEs, the Fund's exposure to economic and financial statement losses is limited
to its investments in the VIEs ($3,109,558 at June 30, 2007). The Fund may be
subject to additional losses to the extent of any financial support that the
Fund voluntarily provides in the future. Under the equity method, the investment
is carried at cost, adjusted for the Fund's share of net income or loss and for
cash distributions from the Local Limited Partnerships; equity in income or loss
of the Local Limited Partnerships is included currently in the Partnership's
operations. Under the equity method, a Local Limited Fund investment will not be
carried below zero. To the extent that equity in losses are incurred when the
Fund's carrying value of the respective Local Limited Partnership has been
reduced to a zero balance, the losses will be suspended and offset against
future income. Income from Local Limited Partnerships, where cumulative equity
in losses plus cumulative distributions have exceeded the total investment in
Local Limited Partnerships, will not be recorded until all of the related
unrecorded losses have been offset. To the extent that a Local Limited
Partnership with a carrying value of zero distributes cash to the Fund that
distribution is recorded as income on the books of the Fund and is included in
"other revenue" in the accompanying financial statements.

The Fund has implemented policies and practices for assessing
other-than-temporary declines in values of its investments in Local Limited
Partnerships. Periodically, the carrying values of the investments are compared
to their respective fair values. If an other-than-temporary decline in carrying
value exists, a provision to reduce the asset to fair value, as calculated based
primarily on remaining tax benefits, will be recorded in the Fund's financial
statements. Generally, the carrying values of most Local Limited Partnerships
will decline through losses and distributions in amounts sufficient to prevent
other-than-temporary impairments. However, the Fund may record similar
impairment losses in the future if the expiration of tax credits outpaces losses
and distributions from any of the Local Limited Partnerships.

Liquidity and Capital Resources

At June 30, 2007, the Fund had cash and cash equivalents of $785,121, compared
with $557,329 at March 31, 2007. The increase is primarily attributable to cash
distributions received from Local Limited Partnerships in excess of cash used
for operating activities.

The Managing General Partner initially designated 5% of the Gross Proceeds as
Reserves, as defined in the Partnership Agreement. The Reserves were established
to be used for working capital of the Fund and contingencies related to the
ownership of Local Limited Partnership interests. The Managing General Partner
may increase or decrease such Reserves from time to time, as it deems
appropriate. At June 30, 2007, approximately $726,000 has been designated as
Reserves.


<PAGE>


               BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED PARTNERSHIP
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
            FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)


Liquidity and Capital Resources (continued)


To date, professional fees relating to various Property issues totaling
approximately $125,000 have been paid from Reserves. In the event a Local
Limited Partnership encounters operating difficulties requiring additional
funds, the Fund's management might deem it in its best interest to voluntarily
provide such funds in order to protect its investment. As of June 30, 2007, the
Fund has advanced approximately $1,477,000 to Local Limited Partnerships to fund
operating deficits.

The Managing General Partner believes that the investment income earned on the
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. To date, the Fund has used
approximately $219,000 of Reserves to fund operations. If Reserves are not
adequate to cover the Fund's operations, the Fund will seek other financing
sources including, but not limited to, the deferral of Asset Management Fees
paid to an affiliate of the Managing General Partner or working with Local
Limited Partnerships to increase cash distributions.


At June 30, 2007, the Fund has committed to make future capital contributions
and to 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 $207,281. Of this amount, the Fund has set aside $148,281 in escrow.

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 June 30, 2007, 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.

Cash Distributions

No cash distributions were made to Limited Partners during the three months
ended June 30, 2007.

Results of Operations

The Fund's results of operations for the three months ended June 30, 2007
resulted in a net loss of $329,585 as compared to a net loss of $525,677 for the
same period in 2006. The decrease in net loss is primarily attributable to a
decrease in the provision for valuations of advances to Local Limited
Partnerships offset by a decrease in gain on disposal of investments in Local
Limited Partnerships, a decrease in equity in losses of Local Limited
Partnerships, and a decrease in general and administrative expenses. The
decrease in provision for valuation of advances to Local Limited Partnerships is
the result of a decrease in advances made to Local Limited Partnerships. The
decrease in equity in losses of Local Limited Partnerships is primarily due to
an increase in unrecognized losses by the Fund for Local Limited Partnerships
with carrying values of zero. General and administrative costs decreased
primarily due to decreased legal charges.




<PAGE>


           BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED PARTNERSHIP
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
            FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)


Portfolio Update

The Fund is a Massachusetts limited partnership organized to invest in Local
Limited Partnerships which own and operate apartment complexes that are eligible
for low income housing tax credits which may be applied against the federal
income tax liability of an investor. The Fund's objective are to: (i) provide
investors with annual tax credits which they may use to reduce their federal
income tax liability; ii) provide limited cash distributions from the operations
of apartment complexes and; iii) preserve and protect the Fund's capital. Arch
Street VIII, Inc., a Massachusetts corporation is the Managing General Partner
of the Fund. Arch Street VII Limited Partnership, a Massachusetts limited
partnership, whose general partner consists of Arch Street, Inc., is also a
General Partner. Both the Managing General Partner and Arch Street VII, L.P. are
affiliates of MMA. The fiscal year of the Fund ends on March 31.

As of June 30, 2007, the Fund's investment portfolio consists of limited
partnership interests in seventeen Local Limited Partnerships, each of which
owns and operates a multi-family apartment complex and each of which has
generated Tax Credits. Since inception, the Fund has generated Tax Credits of
approximately $1,485 per Limited Partner Unit. In the aggregate, actual and
estimated Tax Credits enabled the Fund to meet the objective specified in the
Fund's prospectus.

Properties that receive low income housing Tax Credits must remain in compliance
with rent restriction and set-aside requirements for at least 15 calendar years
from the date the property is placed in service. Failure to do so would result
in the recapture of a portion of the property's Tax Credits. Between 2007 and
continuing through 2009, the Compliance Periods of the seventeen Properties in
which the Fund has an interest will expire. The Managing General Partner has
negotiated agreements that will ultimately dispose of the Fund's interest in
five Local Limited Partnerships. One of the Local Limited Partnerships in which
the Fund had an interest was disposed of during the three months ended June 30,
2007.

The Managing General Partner will continue to closely monitor the operations of
the Properties during the Compliance Periods and will formulate disposition
strategies with respect to the Fund's remaining Local Limited Partnership
interests. It is unlikely that the Managing General Partner will be able to
dispose of the Fund's Local Limited Partnership interests concurrently with the
expiration of each Property's Compliance Period. The Fund shall dissolve and its
affairs shall be wound up upon the disposition of the final Local Limited
Partnership interest and other assets of the Fund. Investors will continue to be
Limited Partners, receiving K-1s and quarterly and annual reports, until the
Fund is dissolved.

As previously reported, for the past several years the following three
litigation proceedings had been pending between certain investors and various
affiliates of the General Partners, including the Fund, concerning, among other
things, those investors' requests to inspect certain alleged "books and records"
of the Fund and the affiliates: Park G.P., Inc. ("Park") brought a lawsuit
against the Fund and various affiliates of the General Partner and their
purported general partners (collectively, the "Fund Parties") in state court in
Missouri (the "Missouri Lawsuit"); the Fund Parties brought a declaratory
judgment lawsuit against Everest Housing Investors 2, LLC and several other
Everest-related entities (collectively, the "Everest Entities") in Massachusetts
state court (the "Everest Massachusetts Lawsuit"); and Boston Financial
Qualified Housing Tax Credits L.P. IV ("Partnership IV") and its general
partners brought a lawsuit against Park and its affiliate Bond Purchase, L.L.C.
("Bond") in Massachusetts state court (the "Park and Bond Massachusetts
Lawsuit").

As of April 21, 2007, the Fund Parties and Partnership IV reached an agreement
with Park, Bond and the Everest Entities to resolve these lawsuits (the
"Settlement Agreement"). Under the terms of the Settlement Agreement, the claims
and counterclaims asserted in the Everest Massachusetts Lawsuit have been
dismissed with prejudice and the claims in the Missouri Lawsuit and the Park and
Bond Massachusetts Lawsuit have been dismissed without prejudice, all in
exchange for options, subject to various conditions, to purchase certain Local
Limited Partnership interests held by Partnership IV, Boston Financial Qualified
Housing Tax Credits L.P. III, Boston Financial Qualified Housing Tax Credits
L.P. V and Boston Financial Tax Credit Fund VII, A Limited Partnership at
specified prices.
<PAGE>

               BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED PARTNERSHIP
                    MANAGEMENT'S DISCUSSION AND ANALYSIS OF
            FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)


Portfolio Update (continued)

With respect to the Fund, the Settlement Agreement provides options, subject to
various conditions, to purchase the Fund's interests in Affordable/Citrus Glen,
Ltd., located in Orlando, FL, Woods Lane, L.P., located in Rogers, AR, and
Fountain Lakes, L.P., located in Benton, AR, for specified prices aggregating to
$3,705,000.

Except as noted above, the Fund is not a party to any pending legal or
administrate proceeding, and to the best of its knowledge, no legal or
administrative proceeding is threatened or contemplated against it.

Property Discussions

A majority of the Properties in which the Fund has an interest have stabilized
operations and operate above breakeven. Some Properties generate cash flow
deficits that the Local General Partners of those Properties fund through
project expense loans, subordinated loans or operating escrows. However, some
Properties have had persistent operating difficulties that could either; (i)
have an adverse impact on the Fund's liquidity; (ii) result in their
foreclosure; or (iii) result in the Managing General Partner deeming it
appropriate for the Fund to dispose of its interest in the Local Limited
Partnership prior to the expiration of the Compliance Period. Also, the Managing
General Partner, in the normal course of the Fund's business, may arrange for
the future disposition of its interest in certain Local Limited Partnerships.
The following Property discussions focus only on such Properties.

As previously reported, Santa Fe Oaks II, located in Gainesville, Florida
continued to display the effects of the addition of three new properties in the
market area that hindered this aging Property's ability to compete. While
improved demand had increased occupancy to a level of 98% as of May 31, 2006,
working capital and debt service coverage remained at unacceptable levels. As a
result of a prior agreement, the Property was sold on June 30, 2006. In
accordance with the terms of the agreement, all but $250,000 of net sales
proceeds of $1,228,154, or $24.11 per Unit, have been retained by the Local
General Partner. This sale resulted in 2006 taxable income of $1,227,641, or
$24.10 per Unit. For financial reporting purposes, the Fund has recognized a
gain that includes the entire amount of proceeds, but has offset the majority of
this gain by fully reserving the proceeds advanced to and retained by the Local
General Partner, as the Fund has no expectation to recover this remaining cash.
The Fund no longer has an interest in this Local Limited Partnership.

As previously reported, Los Claveles II, located in Trujillio Alto, Puerto Rico,
operated at above breakeven during the three-month period ending December 31,
2006. As of March 31, 2007 above breakeven operations were also achieved as high
occupancy levels and the implementation of operating expense control measures
proved successful. The Property continues to be current on its loan obligations.
In addition, a site visit conducted by a representative of the Managing General
Partner in November 2006 indicated the Property is in acceptable physical shape.
The Managing General Partner, concerned about the Property's long-term
viability, signed an agreement in December 2002 with the Local General Partner
whereby the Fund would pay its remaining capital commitment of $350,000 and
release Fund Reserves of approximately $50,000 in exchange for an exit option
that would allow the Fund to put its interest to the Local General Partner at
any time for $10,000. In addition, the Local General Partner has the right,
subsequent to the expiration of the Compliance Period on December 31, 2008, to
call the Fund's interest for a price of $10,000. As part of the agreement, the
Local General Partner is providing an operating guarantee in the form of a Local
General Partner indemnification of any loss or any recapture of Tax Credits
through the end of the Compliance Period.

As previously reported, Grand Boulevard Renaissance, located in Chicago,
Illinois, and continues to experience operating difficulties. Although
acceptable occupancy levels have been achieved throughout the three-month period
ending March 31, 2007, working capital and debt service coverage ratios remain
below appropriate levels. A representative of the Managing General Partner
conducted a physical inspection as part of an October 2006 site visit


<PAGE>

            BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED PARTNERSHIP
                MANAGEMENT'S DISCUSSION AND ANALYSIS OF
            FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)


Property Discussions (continued)

and assigned an unfavorable rating as the Property has significant deferred
maintenance issues. The Managing General Partner's representative also considers
property management to be weak and limited in capacity to address the physical
needs of the Property. Advances from the Local General Partner and working
capital have enabled the Property to remain current on its loan obligations. In
response to prior deficits, during 2001 the Local General Partner negotiated
with the first mortgage lender to reduce the interest rate on the current first
mortgage. In addition, in an effort to further reduce the Property's debt
service burden, in July 2003 the Local Limited Partnership and the Illinois
Housing Development Authority closed on a mortgage restructuring of the second
mortgage that reduced monthly debt service payments until June 1, 2005. As part
of the transaction, the management agent agreed to subordinate a percentage of
its management fee to payment of the second mortgage debt service.

As previously reported, in an effort to reduce the Fund's risk to chronic
operating difficulties at Wynmor, located in Brooklyn Park, Minnesota, the
Managing General Partner and Local General Partner, on October 1, 2003, entered
into an agreement to transfer a portion of the Fund's interest in the Property's
future Tax Credits (approximately $11 per Unit) and tax losses to the Local
General Partner. In return, the Local General Partner agreed to deposit $500,000
into an escrow to be used to fund current and future operating deficits and to
fund as much as an additional $500,000 to cover future operating deficits. The
Managing General Partner and Local General Partner also have an agreement that
allows for the Managing General Partner to put the Fund's interest to the Local
General Partner for $1 any time after October 1, 2003 and that the Local General
Partner could call the Fund's interest for fair market value any time after
January 2, 2009. Although working capital levels remain below acceptable levels,
the Property operated above breakeven throughout the three-month period ending
March 31, 2007 and achieved acceptable occupancy levels throughout the same
period. The Compliance Period ends for the Property on December 31, 2008.

As previously reported the Managing General Partner and Local General Partner of
St. Andrews Pointe, located in Columbia, South Carolina, were exploring an exit
strategy that would allow for the 2007 disposition of the Fund's interest in the
Local Limited Partnership that owns the Property. On May 31, 2007, the Property
was sold, effectively terminating the Fund's interest in the Local Limited
Partnership. The Fund did not receive any sales proceeds as the outstanding debt
on the property exceeded the sales price of the Property. The Fund did receive
$147,901 as a repayment of prior advances. This sale is expected to result in a
2007 taxable loss projected to be approximately $116,000, or $2.28 per Unit.
This sale occurred prior to the expiration of the Property's compliance period,
requiring the Fund to post a surety bond to mitigate the potential risk of
recapture. The buyer will also be required to maintain the Property's tax credit
compliance through December 31, 2007, the expiration of the Property's
compliance period. The Fund no longer has an interest in this Local Limited
Partnership.

As previously reported, the Local General Partner of Twin Oaks Meadows, located
in Lansing, Michigan, with the Fund's consent, obtained soft loan financing in
May 2004 to undertake much needed security improvements to the Property, reduce
payables and fund operating deficits. In return for its consent, the Fund
received a put option that allows the Fund to transfer its interest in the Local
Limited Partnership for a nominal price to the Local General Partner at any time
subsequent to the end of the Property's Compliance Period on December 31, 2009.
Working capital and debt service levels remain below acceptable levels at
December 31, 2006. Occupancy declined to 73% as of December 31, 2006.

As previously reported, Des Moines Street Village, located in Des Moines, Iowa,
operated at below breakeven for the twelve month period ending December 31,
2006, due to the expiration of recent real estate tax abatement. For the three
month period ending March 31, 2007, the Property operated at above breakeven due
to an average occupancy level of 98% throughout the same period. Debt service
coverage and working capital levels remain below appropriate levels at March 31,
2007. The Local General Partners have met their working capital obligations
under the Partnership Agreement and refuse to advance additional funds to the
property. As a result, the property is in default under its loan agreements for
failure to fully pay the real estate taxes due on March 31, 2007. The property


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            BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED PARTNERSHIP
               MANAGEMENT'S DISCUSSION AND ANALYSIS OF
            FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)


Property Discussions (continued)

may require advances from the Fund in order to alleviate real estate tax and
first mortgage loan debt service covenant requirements. While the Local General
Partner had previously funded deficits and the Property has remained current on
its debt obligations, the Local General Partner requested and the Managing
General Partner approved a reduced rate refinancing of the Property's first
mortgage that occurred in April 2004. As part of this transaction, the Managing
General Partner and the Local General Partner entered into a put agreement
whereby the Fund can transfer its interest in the Local Limited Partnership for
a nominal amount at any time after the expiration of the Compliance Period on
December 31, 2009.

As previously reported, the Managing General Partner entered into an agreement
that would require the Local General Partner to either purchase the Fund's
interest in Sunrise Terrace, located in Madera, California, after the end of the
compliance period on December 31, 2007, based on the appraised value of the
Property, or to market the Property for sale.

As previously reported, Guardian Place, located in Richmond, Virginia, closed on
a refinancing of its existing debt on July 29, 2005. In addition to an annual
debt service reduction of approximately $49,000, additional loan proceeds were
utilized to retire a second mortgage and provide for a distribution of
refinancing proceeds of $212,461 to the Fund on August 1, 2005. The Managing
General Partner, in accordance with and as permitted by the Partnership
Agreement, retained the entire amount of refinancing proceeds in Reserves. As
part of this transaction, the Managing General Partner and the Local General
Partner entered into an agreement that would allow for a sale at the end of the
Compliance Period on December 31, 2009.

As previously reported, operations at Oak Ridge, located in Macon, Georgia,
continue to suffer primarily due to low occupancy levels and low rental rates.
Although occupancy improved to 85% at March 31, 2007, from 80% at December 31,
2006, occupancy continues to remain slightly below acceptable levels. The low
occupancy levels are generally attributable to a lack of public transportation
near the site and a sluggish economy in the Macon area. The Property's net
operating income remains insufficient to meet debt service payments. Therefore,
the Local General Partner continues to advance the funds necessary for the
Property to stay current on its loan obligations. The Managing General Partner
will continue to work closely with the management agent and Local General
Partner to monitor Property operations. The Managing General Partner and Local
General Partner continue to explore an exit strategy that would allow for a
disposal of the Fund's interest in the Local Limited Partnership.

As previously reported, although operations at Palo Verde II, located in
Henderson, Nevada, remain strong, the former Local General Partner filed for
bankruptcy protection and refused to remit to the Fund its priority cash
distributions, representing a default under the terms of the Local Limited
Partnership Agreement. An affiliate of the Managing General Partner assumed the
Local General Partner interest in September 2001. Since the statute of
limitations on potential litigation involving one of the former Local General
Partners expired in 2005, the Managing General Partner currently expects a 2007
disposal of the Fund's interest in this Local Limited Partnership. Net proceeds,
if any, are inestimable at this time.

The Managing General Partner anticipates that the Fund's interest in the Local
Limited Partnership that owns Spring Wood Apartments, located in Tallahassee,
Florida, will be terminated upon the sale of the Property in late 2007. Under
the current terms, this sale is expected to result in net proceeds to the Fund
of approximately $300,000, or $5.89 per Unit. This sale would result in 2007
taxable income projected to be approximately $280,000, or $5.50 per Unit.

In connection with the Settlement Agreement described in the "Legal Proceedings"
section above, the Partnership has granted options, subject to various
conditions, to sell its interests in Affordable/Citrus Glen, Ltd., located in
Orlando, FL, Woods Lane, L.P., located in Rogers, AR and Fountain Lakes, L.P.,
located in Benton, AR for $3,705,000.

                BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED PARTNERSHIP

                            Controls and Procedures



(a) Evaluation of Disclosure Controls and Procedures.

As of the end of the period covered by this report, with the participation of
the Fund's management, the Fund's principal executive officer and principal
financial officer conducted an evaluation of the Fund's disclosure controls and
procedures (as defined in Rule 13a-15(e) or Rule 15d-15(e) under the Exchange
Act). Based on this evaluation, our PEO and PFO concluded that our disclosure
controls and procedures were effective as of June 30, 2007, to provide
reasonable assurance that information required to be disclosed in our reports
filed or submitted under the Exchange Act is recorded, processed, summarized and
reported within the time periods specified in the Securities and Exchange
Commission's rules and forms.

(b) Changes in Internal Control over Financial Reporting.

There have been no significant changes in the Fund's internal control over
financial reporting identified in connection with the evaluation required by
paragraph (d) of Rule 13a-15 or Rule 15d-15 under the Exchange Act that occurred
during the Fund's last fiscal quarter that has materially affected, or is
reasonably likely to affect, the Fund's internal control over financial
reporting.


<PAGE>






<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

31.1     Certification of Principal  Executive Officer and Principal  Financial
         Officer pursuant to section 302 of the  Sarbanes-Oxley Act of 2002
32.1     Certification of Principal  Executive  Officer and Principal Financial
         Officer pursuant to section 906 of the Sarbanes-Oxley Act of 2002

(b)      Reports on Form 8-K - No reports on Form 8-K were filed during
         the quarter ended June 30, 2007.



<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:  August 14, 2007      BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED
                             PARTNERSHIP


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

                                      /s/Gary Mentesana
                                      Gary Mentesana
                                      President
                                      Arch Street VIII, Inc.



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