February 14, 2005




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 December 31, 2004
       File Number 0-24584


Dear Sir/Madam:

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


Very truly yours,


/s/Stephen Guilmette
Stephen Guilmette
Assistant Controller









<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                     December 31, 2004
                                    -------------------------------------------

                                                         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>



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

Item 1.   Financial Statements




<S>                                                                                       <C>
          Balance Sheet (Unaudited) - December 31, 2004                                   1

          Statements of Operations (Unaudited) - For the Three and Nine
               Months Ended December 31, 2004 and 2003                                    2

          Statement of Changes in Partners' Equity (Deficiency)
               (Unaudited) - For the Nine Months Ended December 31, 2004                  3

          Statements of Cash Flows (Unaudited) -
               For the Nine Months Ended December 31, 2004 and 2003                       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
</TABLE>


<PAGE>

          BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED PARTNERSHIP



                                  BALANCE SHEET
                                December 31, 2004
                                   (Unaudited)


Assets

<TABLE>
<CAPTION>
<S>                                                                                       <C>
Cash and cash equivalents                                                                 $    1,165,504
Restricted cash                                                                                  247,558
Marketable securities, at fair value                                                               7,221
Investments in Local Limited Partnerships (Note 1)                                             6,779,977
Other assets                                                                                         953
                                                                                          --------------
   Total Assets                                                                           $    8,201,213
                                                                                          ==============

Liabilities and Partners' Equity

Due to affiliates                                                                         $      125,028
Accrued expenses                                                                                  52,724
                                                                                          --------------
   Total Liabilities                                                                             177,752
                                                                                          --------------

Commitments (Note 2)

General, Initial and Investor Limited Partners' Equity                                         8,023,222
Net unrealized gains on marketable securities                                                        239
                                                                                          --------------
   Total Partners' Equity                                                                      8,023,461
                                                                                          --------------
   Total Liabilities and Partners' Equity                                                 $    8,201,213
                                                                                          ==============
</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 and Nine Months Ended December 31, 2004 and 2003
                                   (Unaudited)


<TABLE>
<CAPTION>

                                             Three Months Ended                          Nine Months Ended
                                      December 31,         December 31,          December 31,        December 31,
                                          2004                 2003                  2004                2003
                                      -------------        -------------         -------------     ---------------

Revenue:
<S>                                   <C>                  <C>                   <C>               <C>
   Investment                         $       5,887        $      10,129         $      14,875     $        32,252
   Other                                          -                    -                70,000              30,000
                                      -------------        -------------         -------------     ---------------
       Total Revenue                          5,887               10,129                84,875              62,252
                                      -------------        -------------         -------------     ---------------

Expenses:
   Asset management fee, affiliate           82,726               81,183               248,178             243,549
   Provision for valuation of
     investments in Local Limited
     Partnerships, net of recovery                -            2,395,000                     -           2,395,000
   Provision for valuation of advances
     to Local Limited Partnerships,
     net of recovery                              -                    -                13,141             139,494
   General and administrative
     (includes reimbursements
     to an affiliate in the amounts
     of $159,750 and $92,618 in 2004
     and 2003, respectively)                 50,965               58,929               225,283             158,153
   Amortization                               7,460                7,655                22,380              22,967
                                      -------------        -------------         -------------     ---------------
       Total Expenses                       141,151            2,542,768               508,982           2,959,163
                                      -------------        -------------         -------------     ---------------

Loss before equity in losses
   of Local Limited Partnerships           (135,264)          (2,532,639)             (424,107)         (2,896,911)

Equity in losses of Local Limited
   Partnerships (Note 1)                   (176,895)            (653,729)           (1,537,439)         (1,997,802)
                                      -------------        -------------         -------------     ---------------

Net Loss                              $    (312,159)       $  (3,186,368)        $  (1,961,546)    $    (4,894,713)
                                      =============        =============         =============     ===============

Net Loss allocated:
   General Partners                   $      (3,121)       $     (31,864)        $     (19,615)    $       (48,947)
   Limited Partners                        (309,038)          (3,154,504)           (1,941,931)         (4,845,766)
                                      -------------        --------------        -------------     ---------------
                                      $    (312,159)       $  (3,186,368)        $  (1,961,546)    $    (4,894,713)
                                      =============        =============         =============     ===============
Net Loss per Limited
Partner Unit (50,930 Units)           $       (6.07)       $      (61.94)        $      (38.13)    $        (95.15)
                                      =============        =============         =============     ===============

</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)
                   For the Nine Months Ended December 31, 2004
                                   (Unaudited)


<TABLE>
<CAPTION>

                                                       Initial       Investor           Net
                                       General         Limited        Limited       Unrealized
                                       Partners        Partner        Partners         Gains            Total
                                      -----------    -------------  -----------     ----------       ---------

<S>                                   <C>            <C>          <C>               <C>            <C>
Balance at March 31, 2004             $  (344,473)   $   5,000    $   10,324,241    $     2,607    $   9,987,375
                                      -----------    ---------    --------------    -----------    -------------

Comprehensive Loss:
   Change in net unrealized gains
     on marketable securities
     available for sale                         -            -                 -         (2,368)          (2,368)
   Net Loss                               (19,615)           -        (1,941,931)             -       (1,961,546)
                                      -----------    ---------    --------------    -----------    -------------
Comprehensive Loss                        (19,615)           -        (1,941,931)        (2,368)      (1,963,914)
                                      -----------    ---------    --------------    -----------    -------------

Balance at December 31, 2004          $  (364,088)   $   5,000    $    8,382,310    $       239    $   8,023,461
                                      ===========    =========    ==============    ===========    =============
</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 Nine Months Ended December 31, 2004 and 2003
                                   (Unaudited)

<TABLE>
<CAPTION>


                                                                                      2004              2003
                                                                                  -------------    -------------

<S>                                                                               <C>              <C>
Net cash used for operating activities                                            $    (417,800)   $    (457,776)

Net cash provided by investing activities                                               279,105           11,739
                                                                                  -------------    -------------

Net decrease in cash and cash equivalents                                              (138,695)        (446,037)

Cash and cash equivalents, beginning                                                  1,304,199        1,535,666
                                                                                  -------------    -------------

Cash and cash equivalents, ending                                                 $   1,165,504    $   1,089,629
                                                                                  =============    =============
</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, 2004. 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 September 30, 2004 and 2003.

1.   Investments in Local Limited Partnerships

The Fund has limited partnership interests in nineteen 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 86.85%, 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 Properties at the end of the Tax Credit Compliance Period at nominal
prices. In the event that Properties are sold to third parties, proceeds will be
distributed according to the terms of each Local Limited Partnership agreement.

The following is a summary of investments in Local Limited Partnerships at
December 31, 2004:
<TABLE>
<CAPTION>

Capital contributions and advances paid to Local Limited
   Partnerships and purchase price paid to withdrawing
<S>                                                                                              <C>
   partners of Local Limited Partnerships                                                        $  40,404,560

Cumulative equity in losses of Local Limited Partnerships
   (excluding cumulative unrecognized losses of $7,755,862)                                        (28,245,794)

Cumulative cash distributions received from Local Limited Partnerships                              (1,991,919)
                                                                                                 -------------

Investments in Local Limited Partnerships before adjustments                                        10,166,847

Excess investment costs over the underlying assets acquired:

   Acquisition fees and expenses                                                                     1,252,338

   Cumulative amortization of acquisition fees and expenses                                           (332,518)
                                                                                                 -------------

Investments in Local Limited Partnerships before impairment allowance                               11,086,667

Impairment allowance on investments in Local Limited Partnerships                                   (4,306,690)
                                                                                                 -------------

Investments in Local Limited Partnerships                                                        $   6,779,977
                                                                                                 =============

</TABLE>


For the nine months ended December 31, 2004, the Fund advanced $13,141 to one of
the Local Limited Partnerships, all of which was impaired.

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


<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
nine months ended December 31, 2004 is $2,177,088. For the nine months ended
December 31, 2004, the Fund has not recognized $639,649 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.

2.   Commitments

At December 31, 2004, 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 $206,000. Of this amount, the Fund has set
aside $148,281 in escrow for future capital contributions to one Local Limited
Partnership.



<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.

Accounting Policies

The Fund's accounting policies 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 Fund accounts for its investments in Local Limited Partnerships using the
equity method of accounting because the Fund does not have control over the
major operating and financial policies of the Local Limited Partnerships in
which it invests. 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 Fund's operations. Under the
equity method, a Local Limited Partnership 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 Fund investments 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 potential
impairment of its investments in Local Limited Partnerships. Real estate experts
analyze the investments to determine if impairment indicators exist. If so, the
investment is analyzed to consider the Fund's ability to recover its carrying
value. If an other than temporary impairment in carrying value exists, a
provision to write down the asset to fair value will be recorded in the Fund's
financial statements.

Liquidity and Capital Resources

At December 31, 2004, the Fund had cash and cash equivalents of $1,165,504,
compared with $1,304,199 at March 31, 2004. This decrease is primarily
attributable to cash used for operations and advances to Local Limited
Partnerships. These decreases are partially offset by proceeds from maturities
of marketable securities and cash distributions received from Local Limited
Partnerships.

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 December 31, 2004, approximately $1,115,000 of cash, cash
equivalents and marketable securities has been designated as Reserves.

To date, professional fees relating to various Property issues totaling
approximately $115,000 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 December 31, 2004,
the Fund has advanced approximately $447,000 to Local Limited Partnerships to
fund operating deficits.


<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)

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 $869,000 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 December 31, 2004, 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 approximately 58,000.

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, 2004, 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 nine months ended
December 31, 2004. Cash available for distribution was not significant during
the 2004 calendar year. Based on the results of prior year Property operations,
the Local Limited Partnerships are not expected to distribute significant
amounts of cash to the Fund because such amounts will be needed to fund Property
operating costs. In addition, some of the Properties benefit from some type of
federal or state subsidy and, as a consequence, are subject to restrictions on
cash distributions.

Results of Operations

Three Month Period

The Fund's results of operations for the three months ended December 31, 2004
resulted in a net loss of $312,159, as compared to a net loss of $3,186,368 for
the same period in 2003. The decrease in net loss is primarily attributable to a
decrease in provision for valuation of investments in Local Limited Partnerships
and a decrease in equity in losses of Local Limited Partnerships, partially
offset by a decrease in investment income. The decrease in equity in losses of
Local Limited Partnerships is primarily due to the Fund not recognizing losses
relating to Local Limited Partnerships where cumulative equity in losses and
cumulative distribution have exceeded its total investment.

Nine Month Period

The Fund's results of operations for the nine months ended December 31, 2004
resulted in a net loss of $1,961,546, as compared to a net loss of $4,894,713
for the same period in 2003. The decrease in net loss is primarily attributable
to a decrease in provision for valuation of investments in Local Limited
Partnerships and a decrease in provision for valuation of advances to Local
Limited Partnerships, partially offset by an increase in general and
administrative expenses. The decrease in provision for valuation of investments
in Local Limited Partnerships is due to the prior year recognition of
non-temporary declines in the carrying value of certain Local Limited
Partnerships. The decrease in provision for valuation of advances to Local
Limited Partnership is the result of a decrease in advances made to Local
Limited Partnerships during the period ended December 31, 2004. The increase in
general and administrative expense is primarily due to increased charges from an
affiliate of the General Partner for administrative expenses necessary for the
operation of the Fund.


<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's investment portfolio consists of limited partnership interests in
nineteen 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 $1,413 per
Limited Partner Unit. The Managing General Partner estimates that the Fund will
generate Tax Credits of approximately $62 and $10 per Unit during 2004 and 2005,
respectively, with an immaterial amount expected in 2006. In the aggregate,
actual and estimated Tax Credits will enable 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 years from the
date the Property is completed (the "Compliance Period"). Failure to do so would
result in the recapture of a portion of the Property's Tax Credits. Between 2006
and continuing through 2010, the Compliance Periods of the nineteen 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. It is unlikely that the disposition of any of
these Local Limited Partnership interests will generate any material cash
distributions to the Fund.

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.

On August 24, 2004, the Partnership and seven affiliates of the General Partners
(collectively, the "Partnerships"), and their general partners commenced
litigation against Everest Housing Investors 2, LLC and three other
Everest-related entities (collectively, the "Everest entries") in Massachusetts
state court, seeking a declaratory judgment that certain materials the Everest
entities sought to inspect are not "books and records" of the Partnerships and
that the Everest entities are in any case not entitled to inspect said
information under applicable partnership agreements, partnership law or
otherwise. On October 7, 2004, the Everest entities filed an answer and
counterclaimed against the Partnerships and their general partners, claiming
that they breached applicable partnership agreements, partnership law and their
fiduciary duties to the Everest entities by failing to make the purported "books
and records" available. The Partnerships maintain that the Everest entities is
not entitled to review the materials requested and/or use the materials in
secondary market transactions because, among other things, (i) the materials
requested are not "books and records" of the Partnerships, as that term is
defined in the relevant partnership agreements, (ii) the Everest entities does
not seek to review them for a proper purpose, and (iii) that selective
disclosure of the information to the Everest entries would give it an unfair
informational advantage in secondary market transactions and could potentially
violate federal and/or state securities laws. Because of the preliminary nature
of the Massachusetts litigation, including but not limited to the fact that no
discovery has taken place, no estimate of a potential outcome can be made at
this time.

On July 13, 2004, Park G.P., Inc. ("Park") commenced litigation against an
affiliate of the Managing General Partner and its purported general partners
(collectively, "Defendants") in Clay County, Missouri, claiming that Defendants
breached the relevant partnership agreement and their fiduciary duties owed to
Park by, among other things, failing to permit inspection of certain alleged
"books and records" of the affiliate of the Fund. On or about October 7, 2004,
Park sought leave of the court to amend its petition to include claims for
inspection of the alleged "books and records" against the Fund, five more
affiliates of the Managing General Partner and their purported general partners


<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)

(collectively, the "New Defendants"). The Court granted the amendment on
November 15, 2004, and all defendants subsequently moved to dismiss the Amended
Complaint in its entirety. That motion is currently pending. On or about October
8, 2004, Park moved the court for entry of a temporary restraining order
compelling the Defendants and the New Defendants to turn over the alleged "books
and records" in conjunction with a transaction Park was proposing entering into.
On October 12, 2004, the court denied Park's request.

Defendants maintain that Park is not entitled to review the materials requested
and/or use the materials in secondary market transactions because, among other
things, (i) they are not "books and records" of the partnerships, (ii) Park does
not seek to review them for a proper purpose, and (iii) that selective
disclosure of the information to Park would give it an unfair informational
advantage in secondary market transactions, and may violate federal and/or state
securities laws. Defendants accordingly intend on defending against the claims
vigorously. The Managing General Partner has not formed an opinion that an
unfavorable outcome is either probable or remote. Therefore, the Managing
General Partner refrains from expressing an opinion as to the likely outcome of
the case, or the range of any loss.

Property Discussions

A majority of the Properties in which the Fund has an interest have stabilized
operations and operate above break-even. A few 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, operations at Los Claveles II, located in Trujillio
Alto, Puerto Rico, have recently improved. The sister property to the Property
("Tower I"), which is not owned by the Fund, remained vacant for 18 months due
to subsidy issues, making it very difficult to repair and occupy units at Los
Claveles II. In March 2002, the subsidy issue was resolved after a long
negotiating period with the United States Department of Housing and Urban
Development. Since resolution of the subsidy issue at Tower I, occupancy at the
Property improved substantially, and stood at 95% as of August 31, 2004. Despite
these improvements, significant risks to the Fund remain. The Property continued
to be in default of its first mortgage, which was restructured as part of a
workout in 1999. Debt service payments were supposed to commence in February
2000 but were delayed until July 2003 because turnaround efforts at the Property
were stalled for almost two years due to the subsidy issues at Tower I. Although
the loan was technically in default, the workout agreement contained a clause
that obligated the lender to renegotiate the terms of the workout agreement in
the event that the terms of the agreement were not met. As a result, a second
workout of the Property in January 2004 cured existing defaults under the 1999
workout agreement. This second workout extended maturity dates on two loans by
roughly four years, and the interest rates on those two loans remained the same
at 6% and 0% respectively. Interest of $630,000, which had accrued on one of the
loans during the three years that the Property did not generate sufficient
income to make required debt service payments, was rolled into the second loan.
The workout also provided for partial pay down of accrued management fees due to
an affiliate of the Local General Partner. The transaction will generate roughly
$1.1 million in cancellation of indebtedness income to the Fund. Monthly debt
service was reduced by approximately $2,000 under this second workout. Current
net operating income is more than enough to pay this new debt service and to
fund required replacement reserve deposits. The Property has operated above
breakeven since the January 2004 debt restructuring.


<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)

In addition, a site visit conducted by a representative of the Managing General
Partner in August 2004 indicated the Property is in good 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, has experienced operating difficulties for a number of years, with low
occupancy and working capital and debt service coverage ratios below appropriate
levels. In response to this situation, 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 Partnership and the
Illinois Housing Development Authority closed on a mortgage restructuring of the
second mortgage that reduced monthly debt service payments. 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 a result of
advances from the Local General partner and from working capital, the Property
remains current on its loan obligations.

As previously reported, operations at Oak Ridge, located in Macon, Georgia,
continue to suffer primarily due to low occupancy and rental rates. The low
occupancy is generally attributable to a lack of public transportation near the
site and a struggling economy in the Macon area. Although net operating income
increased significantly during each of the past two years, the Property's net
operating income is insufficient to meet debt service payments. The Local
General Partner has advanced 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 as well as to explore a potential loan workout with the
lender.

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 send 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. The Managing General Partner
is seeking an acceptable replacement Local General Partner.

As previously reported, Eden Park, located in Brooklyn Park, Minnesota, has been
experiencing operating difficulties since mid-2002. While occupancy improved
during the third quarter of 2004, prior low occupancy due mainly from a weak
rental market has reduced revenues and resulted in significant operating
deficits which the Local General Partner expects to continue for the next two or
three years. In an effort to reduce the Fund's risk, on October 1, 2003, the
Managing General Partner and Local General Partner entered an agreement to
transfer a portion of the Fund's interest in Eden Park's future Tax Credits
(approximately $11 per Unit) and tax losses to the Local General Partner in
return for the Local General Partner agreeing 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. During the second
quarter of 2004, the Local General Partner successfully refinanced the
Property's first mortgage, which will save the Property approximately $200,000
in annual debt service payments. Finally, the Managing General Partner and Local
General Partner agreed that the Managing General Partner could 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. The Compliance Period ends for Eden Park
on December 31, 2008.

<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)

As previously reported, St. Andrews Pointe, located in Columbia, South Carolina,
continues to suffer primarily from its location in Columbia. The Property was
built in an area of town that was once thriving, but is now considered less
desirable. Occupancy has decreased in recent quarters, and debt service coverage
and working capital levels are below appropriate levels. In addition,
administrative and maintenance expenses exceed budgeted numbers. However, the
management agent is strong and works diligently to advertise and attract
qualified residents to the property. Advances from the Local General Partner
have enabled the Property to stay current on its loan obligations.

As previously reported, Twin Oaks Meadows, located in Lansing, Michigan, has
suffered with security issues and a soft rental market for the past several
quarters. As a result, occupancy and revenues have decreased and working capital
and debt service are below appropriate levels. Due to ongoing operating
deficits, the Property has been accumulating payables. To address both of these
issues, the Local General Partner had worked to obtain a new soft loan to
undertake much needed security improvements to the Property and another soft
loan to reduce payable and fund current operations. With the consent of the
Fund, these loans closed in early May 2004. 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, December 31, 2009.

As previously reported, Des Moines Street Village, located in Des Moines, Iowa,
had experienced operating difficulties for the past several years, including low
occupancy and debt service coverage and working capital levels that were below
appropriate amounts. 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
refinancing of the Property's first mortgage that reduced the interest rate and
will help eliminate operating deficits in the future. The refinanced loan closed
in April 2004. As part of this transaction, the Managing General Partner and the
Local Limited Partner entered into a put agreement whereby the Fund can transfer
its interest in the Property for a nominal amount at any time after the
expiration of the Compliance Period on December 31, 2009. Both occupancy and
working capital levels have improved in 2004 and the Property was operating
above breakeven as of December 31, 2004.

In early 2004, the Local General Partner of Sunrise Terrace, located in Madera,
California, requested the Managing General Partner to approve a refinancing and
consolidation of the Property's first and second mortgage loans into a single
loan. As part of this transaction, the Managing General Partner and the Local
General Partner entered into an agreement to require the LGP to either purchase
the Fund's interest 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.
The refinancing closed on September 3, 2004 and resulted in a distribution of
refinancing proceeds of $48,519 to the Fund. The Managing General Partner, in
accordance with and as permitted by the Fund's Partnership Agreement, retained
the entire amount of net proceeds in Reserves.


<PAGE>

          BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED PARTNERSHIP

                             CONTROLS AND PROCEDURES



Controls and Procedures

Based on the Fund's evaluation as of the end of the period covered by this
report, the Fund's executive vice president has concluded that the Fund's
disclosure controls and procedures are effective to ensure that information
required to be disclosed in the reports that the Fund files or submits under the
Securities Exchange Act of 1934 is recorded, processed, summarized and reported
within the time periods specified in the Securities and Exchange Commission's
rules and forms.

There have been no significant changes in the Fund's internal controls or in
other factors that could significantly affect those controls subsequent to the
date of their evaluation.


<PAGE>


          BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED PARTNERSHIP



PART II       OTHER INFORMATION

Item 1        Legal proceedings as discussed in Part I are incorporated herein
              by reference.


Items 2-5     Not applicable

Item 6        Exhibits and reports on Form 8-K

             (a) Exhibits

                    31.1   Certification of Jenny Netzer pursuant to section 302
                           of the Sarbanes-Oxley Act of 2002

                    32.1   Certification of Jenny Netzer 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 December 31, 2004.



<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 14, 2005                 BOSTON FINANCIAL TAX CREDIT FUND VII,
                                          A LIMITED PARTNERSHIP


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


                                                /s/Jenny Netzer
                                                Jenny Netzer
                                                Executive Vice President
                                                MMA Financial, LLC


<PAGE>