UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                    FORM 10-Q


(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, 2009
                               ----------------------------

                                           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
 incorporation or organization)                  Identification No.)



   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 .

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

Large accelerated filer  ___                  Accelerated Filer  ___
Non-accelerated filer    ___
(Do not check if a smaller reporting company) Smaller reporting company   X
                                                                      -------

Indicate by check mark whether the registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act.)

                              Yes     No X .
                                ____    ____





<PAGE>


           BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED PARTNERSHIP
                                TABLE OF CONTENTS


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


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

Item 1.   Financial Statements

          Balance Sheets - June 30, 2009 (Unaudited) and March 31, 2009 (Audited)           1

          Statements of Operations (Unaudited) -
               For the Three Months Ended June 30, 2009 and 2008                            2

          Statement of Changes in Partners' Equity
               (Unaudited) - For the Three Months Ended June 30, 2009                       3

          Statements of Cash Flows (Unaudited) -
               For the Three Months Ended June 30, 2009 and 2008                            4

          Notes to the Financial Statements (Unaudited)                                     5

Item 2.   Management's Discussion and Analysis of
               Financial Condition and Results of Operations                                9

Item 3.   Quantitative and Qualitative Disclosures About Market Risk                       16

Item 4.   Controls and Procedures                                                          16

PART II - OTHER INFORMATION

Items 1-6                                                                                  17

SIGNATURE                                                                                  18

CERTIFICATIONS                                                                             19

<PAGE>
</TABLE>


           BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED PARTNERSHIP


                                 BALANCE SHEETS
             June 30, 2009 (Unaudited) and March 31, 2009 (Audited)



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

Assets                                                                             June 30                March 31
--------                                                                     -----------------       ---------------

Cash and cash equivalents                                                     $      1,421,044        $     1,564,981
Restricted cash                                                                        284,788                284,447
Investments in Local Limited Partnerships (Note 1)                                   1,117,234              1,224,904
Other assets                                                                                70                    141
                                                                              ----------------        ---------------
     Total Assets                                                             $      2,823,136        $     3,074,473
                                                                              ================        ===============

Liabilities and Partners' Equity
--------------------------------
Due to affiliates                                                             $        264,624        $       297,110
Accrued expenses                                                                        80,710                 59,100
                                                                              ----------------        ---------------
     Total Liabilities                                                                 345,334                356,210


General, Initial and Investor Limited Partners' Equity                               2,477,802              2,718,263
                                                                              ----------------        ---------------
     Total Liabilities and Partners' Equity                                   $      2,823,136        $     3,074,473
                                                                              ================        ===============
</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, 2009 and 2008
                                   (Unaudited)


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

                                                                                 2009                     2008
                                                                           ----------------         ---------------
Revenue:
   Investment                                                              $          5,676        $          5,464
                                                                           ----------------        ----------------
     Total Revenue                                                                    5,676                   5,464
                                                                           ----------------        ----------------

Expense:
   Asset management fees, affiliate                                                  94,378                  94,284
   Provision for valuation allowance on advances to
     Local Limited Partnerships                                                           -                  48,404
    Impairment on investments in Local Limited Partnerships                           5,000                       -

   General and administrative (includes reimbursements to
     an affiliate in the amount of  $30,971 and  $30,995
     in 2009 and 2008, respectively)                                                 69,823                  64,142
   Amortization                                                                       2,177                   3,711
                                                                           ----------------        ----------------
     Total Expense                                                                  171,378                 210,541
                                                                           ----------------        ----------------

Loss before equity in losses of Local Limited Partnerships                         (165,702)               (205,077)

Equity in losses of Local Limited Partnerships (Note 1)                             (74,759)               (103,719)

Gain on disposal of investments in Local Limited Partnerships                             -               1,310,825
                                                                           -----------------        ----------------

Net Income (Loss)                                                          $       (240,461)       $      1,002,029
                                                                           =================       ================

Net Income (Loss) allocated:
   General Partners                                                        $         (2,405)       $         10,020
   Limited Partners                                                                (238,056)                992,009
                                                                           -----------------       ----------------
                                                                           $       (240,461)       $      1,002,029
                                                                           =================       ================
Net Income (Loss) per Limited Partner Unit
   (50,930 Units)                                                          $         (4.67)        $          19.48
                                                                           ================        ================

</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, 2009
                                   (Unaudited)





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

                                                               Initial           Investor
                                              General          Limited            Limited
                                             Partners          Partner           Partners            Total
                                            -----------       ----------       -------------     ------------
    Balance at March 31, 2009               $    27,182    $     5,000        $   2,686,081      $ 2,718,263

    Net Loss                                     (2,405)             -             (238,056)        (240,461)
                                            ------------    -----------       ---------------    --------------

    Balance at June 30, 2009                $    24,777     $    5,000        $   2,448,025     $  2,477,802
                                            ===========     ===========       ==============     ============


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

</TABLE>

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

                            STATEMENTS OF CASH FLOWS
                For the Three Months Ended June 30, 2009 and 2008
                                   (Unaudited)





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

                                                                              2009                    2008
                                                                          -------------         ---------------

Net cash used for operating activities                                    $    (169,671)         $    (128,415)

Net cash provided by investing activities                                        25,734              1,474,591
                                                                          -------------          -------------

Net increase (decrease) in cash and cash equivalents                           (143,937)             1,346,176

Cash and cash equivalents, beginning                                          1,564,981                613,617
                                                                          -------------          -------------

Cash and cash equivalents, ending                                         $   1,421,044          $   1,959,793
                                                                          =============          =============

</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-Q 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-K for the year ended March 31, 2009. 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, 2009 and 2008.

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 thirteen 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 Partnerships 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.

<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 following is a summary of investments in Local Limited Partnerships at June
30, 2009 and March 31, 2009:
<TABLE>
<CAPTION>
<S>                                                                                   <C>               <C>

                                                                                       June 30         March 31
Capital contributions and advances paid to Local Limited Partnerships            ----------------    --------------
and
    purchase price paid to withdrawing partners of Local Limited
   Partnerships                                                               $      27,305,481     $   27,305,481

Cumulative equity in losses of Local Limited Partnerships
(excluding cumulative unrecognized losses of $3,812,564 and $3,570,296 at June
 30 and March 31, 2009, respectively)                                               (20,820,189)       (20,745,430)

Cumulative cash distributions received from Local Limited Partnerships               (2,408,205)        (2,382,471)
                                                                                  ---------------     --------------

Investments in Local Limited Partnerships before adjustments                          4,077,087          4,177,580

Excess investment costs over the underlying assets acquired:

   Acquisition fees and expenses                                                        846,688            846,688

   Cumulative amortization of acquisition fees and expenses                            (300,754)          (298,577)
                                                                                  ----------------     --------------

Investments in Local Limited Partnerships before valuation allowance                  4,623,021          4,725,691

Valuation allowance on investments in Local Limited Partnerships                     (3,505,787)        (3,500,787)
                                                                                  ----------------     --------------

Investments in Local Limited Partnerships                                     $       1,117,234       $  1,224,904
                                                                                  ===============     ===============
</TABLE>


The Fund's share of the net losses of the Local Limited Partnerships for the
three months ended June 30, 2009 and 2008 is $317,027 and $462,243,
respectively. For the three months ended June 30, 2009 and 2008, the Fund has
not recognized $242,268 and $358,524, respectively, 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 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.   Fair Value Measurements
_____________________________
SFAS No. 157
______________
In September 2006, the Financial  Accounting  Standards Board ("FASB") issued
SFAS No. 157, "Fair Value Measurements" ("SFAS No. 157"), which provides
enhanced guidance for using fair value to measure assets and liabilities.
SFAS No.  157  establishes  a common definition of fair value,  provides a
framework for measuring fair value under U.S. generally accepted accounting
principles and expands disclosure requirements about fair value  measurements.
SFAS No. 157 is effective for financial  statements issued in fiscal years
beginning  after November 15, 2007, and interim  periods within those fiscal
years. In February 2008, the FASB issued FASB Staff Position 157-2,
"Effective Date of FASB Statement No. 157", which delays the effective date of
SFAS No. 157 for all nonfinancial

<PAGE>

              BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED PARTNERSHIP

                     NOTES TO THE FINANCIAL STATEMENTS (continued)
                                (Unaudited)

2. Fair Value Measurements (continued)
______________________________________
SFAS No. 157 (continued)
_________________________
assets and liabilities except those that are recognized or disclosed at fair
value in the financial statements on at least an annual basis until November 15,
2008. The Fund adopted the provisions of SFAS No. 157 for financial assets and
liabilities recognized at fair value on a recurring basis effective April 1,
2008. The partial adoption of SFAS No. 157 did not have a material impact on the
Fund's Financial Statements. The Fund does not expect the adoption of the
remaining provisions of SFAS No. 157 to have a material effect on the Fund's
financial position, operations or cash flow. This standard requires that a Fund
measure its financial assets and liabilities using inputs from the three levels
of the fair value hierarchy. A financial asset or liability classification
within the hierarchy is determined based on the lowest level input that is
significant to the fair value measurement. The three levels are as follows:

     Level      1 - Inputs are unadjusted quoted prices in active markets for
                identical assets or liabilities that the Fund has the ability to
                access at the measurement date.

     Level      2 - Inputs include quoted prices for similar assets and
                liabilities in active markets, quoted prices for identical or
                similar assets or liabilities in markets that are not active,
                inputs other than quoted prices that are observable for the
                asset or liability and inputs that are derived principally from
                or corroborated by observable market data by correlation or
                other means (market corroborated inputs).

     Level      3 - Unobservable inputs reflect the Fund's judgments about the
                assumptions market participants would use in pricing the asset
                or liability since limited market data exists. The Fund develops
                these inputs based on the best information available, including
                the Fund's own data.

Financial assets accounted for at fair value on a recurring basis at June 30,
2009 include cash equivalents of $1,421,044 and restricted cash of $281,414.

SFAS No. 159
_____________
In February 2007, the FASB issued Statement of Financial Accounting Standards
No. 159, "The Fair Value Option for Financial Assets and Financial Liabilities"
("SFAS No. 159"), which permits entities to choose to measure many financial
assets and financial liabilities at fair value. Unrealized gains and losses on
items for which the fair value option has been elected are reported in earnings.
SFAS No. 159 is effective for fiscal years beginning after November 15, 2007,
and interim periods within those fiscal years. The Fund has not elected to
measure any financial assets and financial liabilities at fair value under the
provisions of SFAS No. 159.

3.   New Accounting Principles
______________________________
FIN48-3
_______
In December 2008, the FASB issued Interpretation No. 48-3 "Effective Date of
FASB Interpretation No. 48 for Certain Nonpublic Enterprises" ("FIN48-3").
FIN48-3 deferred the effective date of FIN48 for certain nonpublic
organizations. The deferred effective date is intended to give the FASB
additional time to develop guidance on the application of FIN48 by pass-through
and not-for-profit entities. The General Partner may modify the Fund's
disclosures if the FASB's guidance regarding the application of FIN48 to
pass-through entities changes.

SFAS No. 168
____________
In June 2009, the FASB issued Statement of Financial Accounting Standards
("SFAS") No. 168, "The FASB Accounting Standards Codification and Hierarchy of
Generally Accepted Accounting Principles, a replacement of FASB Statement No.
162" ("SFAS 168"). SFAS 168 establishes the FASB Standards Accounting
Codification ("Codification") as the source of authoritative GAAP recognized by
the FASB to be applied to nongovernmental entities. The only other source of
authoritative GAAP is the rules and interpretive releases of the SEC which only

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

                  NOTES TO THE FINANCIAL STATEMENTS (continued)
                                   (Unaudited)

3. New Accounting Principles (continued)
________________________________________
SFAS No. 168 (continued)
________________________
apply to SEC registrants. The Codification will supersede all the existing
non-SEC accounting and reporting standards upon its effective date. Since the
issuance of the Codification is not intended to change or alter existing GAAP,
adoption of this statement will not have an impact on the Fund's financial
position or results of operations, but will change the way in which GAAP is
referenced in the Fund's financial statements. SFAS 168 is effective for interim
and annual reporting periods ending after September 15, 2009.

SFAS No. 165
____________
In May 2009, the FASB issued SFAS No. 165, "Subsequent Events" ("SFAS 165"),
which establishes general standards of accounting for and disclosure of events
that occur after the balance sheet date but before the financial statements are
issued or are available to be issued. The Fund adopted SFAS 165 effective April
1, 2009 and has evaluated subsequent events after the balance sheet date of June
30, 2009 through August 14, 2009, the date the financial statements were issued.
During this period, the Fund did not have any recognizable subsequent events.

FAS 107-1 and APB 28-1
______________________
In April 2009, the FASB issued FASB Staff Position ("FSP") FAS 107-1 and APB
28-1, "Interim disclosures about Fair Value Measurement", which amends FASB
Statement No. 107, "Disclosures about Fair Value of Financial Instruments", and
Accounting Principles Board ("APB") Opinion No. 28, "Interim Financial
Reporting", to require disclosures about the fair value of financial instruments
for interim reporting periods. This FSP also requires companies to disclose the
methods and significant assumptions used to estimate the fair value of financial
instruments in financial statements on an interim basis and to describe any
changes during the period. FSP FAS 107-1 and APB 28-1 are effective for interim
and annual reporting periods ending after June 15, 2009. The Fund adopted FSP
FAS 107-1 and APB 28-1 effective April 1, 2009 and the adoption did not have a
material impact on the Fund's financial position or results of operations.

4.   Significant Subsidiaries
_____________________________
The following Local Limited Partnership invested in by the Fund represents more
than 20% of the Fund's total assets or equity as of June 30, 2009 or 2008 or net
losses for the three months ended either June 30, 2009 or 2008. The following
financial information represents the performance of this Local Limited
Partnership for the three months ended March 31, 2009 and 2008:

Citrus Glen                           2009                     2008
-----------                     -------------           --------------

Revenue                      $    351,800                $ 372,300

Net Loss                     $    (63,700)               $ (56,500)


<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 use of
words like "anticipate," "estimate," "intend," "project," "plan," "expect,"
"believe," "could" and similar expressions are intended to identify such
forward-looking statements. 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. The investments in the Local Limited Partnerships
are made primarily to obtain tax credits on behalf of the Fund's investors. The
general partners of the Local Limited Partnerships, who are considered to be the
primary beneficiaries, control the day-to-day operations of the Local Limited
Partnerships. The general partners are also responsible for maintaining
compliance with the tax credit program and for providing subordinated financial
support in the event operations cannot support debt and property tax payments.
The Fund, through its ownership percentages, may participate in property
disposition proceeds. The timing and amounts of these proceeds are unknown but
can impact the Fund's financial position, results of operations or cash flows.
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 ($1,117,234 and $1,224,904 at June 30, 2009 and March 31, 2009,
respectively). 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 Fund's operations. A liability is recorded for delayed
equity capital contributions to Local Limited Partnerships. 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 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.

The Fund has implemented policies and practices for assessing
other-than-temporary declines in the values of its investments in Local Limited
Partnerships. Periodically, the carrying values of the investments are tested
for other-than-temporary impairment. If an other-than-temporary decline in
carrying value exists, a provision to reduce the investment to the sum of the
estimated remaining benefits will be recorded in the Fund's financial
statements. The estimated remaining benefits for each Local Limited Partnership
consist of estimated future tax losses and tax credits over the estimated life
of the investment and estimated residual proceeds at disposition. Included in
the estimated residual proceeds calculation is current net operating income
capitalized at a regional rate specific to each Local Limited Partnership less
the debt of the Local Limited Partnership. 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.

<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
_______________________________
At June 30, 2009, the Fund had cash and cash equivalents of $1,421,044 as
compared with $1,564,981 at March 31, 2009. This decrease is primarily
attributable to cash used for operations, partially offset by 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 June 30, 2009 and March 31, 2009, respectively, $1,454,947 and
$1,587,737 has been designated as Reserves.

To date, professional fees relating to various Property issues totaling
approximately $128,000 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, 2009, the
Fund has advanced approximately $1,525,000 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 $562,000 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.

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, 2009, the Fund had no contractual or other
obligation to any Local Limited Partnership which had not been paid or provided
for except as disclosed above.

Cash Distributions
__________________
No cash distributions were made to Limited Partners during the three months
ended June 30, 2009.

Results of Operations
_____________________
The Fund's results of operations for the three months ended June 30, 2009
resulted in a net loss of $240,461 as compared to a net income of $1,002,029 for
the same period in 2008. The increase in net loss is primarily attributable to
decrease in gain on sale of investments, an increase in general and
administrative expenses and an increase in impairment on investments in Local
Limited Partnerships, offset by a decrease in equity in losses and a decrease in
provision for valuation allowance on advances to Local Limited Partnerships. The
decrease in gain on sale of investments in Local Limited Partnerships is due to
the sale of one Local Limited Partnership made during the prior year. General
and administrative expenses increased due to the increased charges due to an
affiliate of the Managing General Partner for operations and administrative
expenses necessary for the operation of the Fund. The increase in impairment on
investments in Local Limited Partnerships increased due to the Fund recording an
impairment allowance for its investments in certain Local Limited Partnerships.
Equity in losses decreased primarily due to an increase in unrecognized losses
by the Fund of Local Limited Partnerships with carrying values of zero. The
decrease in provision for valuation allowance on advances to Local Limited
Partnerships is the result of reserves for advances made to one Local Limited
Partnership in the prior year.
<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 objectives 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. The fiscal year of the Fund ends on March 31.

Municipal Mortgage & Equity, LLC ("MuniMae") is in the process of selling
substantially all of the assets of its Low Income Housing Tax Credit business to
a venture consisting of JEN Partners, LLC or its affiliates ("JEN") and/or Real
Estate Capital Partners, LP or its affiliates ("RECP"). The first stage of this
sale closed on July 30, 2009 and a second closing is scheduled for on or about
August 31, 2009. The entire sale will be completed no later than December 31,
2009. Upon completion of the acquisition, the business will be owned by Boston
Financial Investment Management, LP, a Delaware limited partnership, which is
directly and indirectly owned by JEN and/or RECP ("Boston Financial"). The
general partner of Boston Financial will be BFIM Management, LLC, a JEN
affiliate. Effective as of July 30, 2009, MuniMae has engaged BFIM Asset
Management, LLC ("BFIM"), an affiliate of Boston Financial, to provide asset
management to the Fund. Most of the employees of MuniMae's LIHTC business have
joined Boston Financial and BFIM; the operations of the business are to remain
intact in the Boston office and the Fund will continue to be managed and
administered in the ordinary course.

Arch Street VIII, Inc. is the Managing General Partner of the Fund ("Arch
Street") and Arch Street VII Limited Partnership is the co-General Partner of
the Fund ("Arch Street LP"). The general partner of Arch Street LP is Arch
Street. In connection with the above-described transaction, the ownership
interests in Arch Street are being transferred from entities controlled by
MuniMae to one or more entities controlled by or associated with Boston
Financial. The transfer is expected to occur on or about August 31, 2009, and
will not change the organizational structure of the Fund. The principal office
and place of business of the Fund subsequent to the transfer will continue to be
101 Arch Street, 13th Floor, Boston, Massachusetts 02110.

As of June 30, 2009, the Partnership's investment portfolio consisted of a
limited partnership interest in thirteen Local Limited Partnerships which own
and operate a multi-family apartment complex that has generated Tax Credits.
Since inception, the Partnership 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. The Compliance
Period for eight of the thirteen Properties, which the Fund has an interest,
expired on or before December 31, 2008. The Compliance Period for four of the
remaining five Properties will expire December 31, 2009, while the remaining
Property will expire December 31, 2010. The Managing General Partner has
negotiated agreements that will ultimately dispose of the Fund's interest in
five additional Local Limited Partnerships in 2009. In addition, the Fund is in
negotiations with potential buyers to dispose of its interest in five Local
Limited Partnerships. None of the Local Limited Partnerships in which the Fund
had an interest were disposed of during the three months ended June 30, 2009.

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.

<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)
____________________________
The Fund is not a party to any pending legal or administrative 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 at March 31, 2009. 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, although operations at Palo Verde II, located in
Henderson, Nevada, remained 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 expected a mid-2008
disposal of the Fund's interest, upon the sale of the underlying Property, in
this Local Limited Partnership. On May 29, 2008, the Fund's interest was
transferred, resulting in net sales proceeds to the Partnership of $1,630,776,
or $32.02 per Unit. The Managing General Partner, in accordance with and as
permitted by the Partnership Agreement, retained the entire amount of sales
proceeds in Reserves. The sale resulted in 2008 taxable income of $1,030,956, or
$20.24, per Unit. The Fund no longer has an interest in this Local Limited
Partnership.

As previously reported, Los Claveles II, located in Trujillio Alto, Puerto Rico,
continued to operate below breakeven throughout the twelve-month period ending
December 31, 2008 due to a reduction in rental revenues associated with low
occupancy levels and an increase in utility expenses, while working capital
levels remained below acceptable levels. A site visit conducted by a
representative of the Managing General Partner in November 2007 indicated the
Property was in acceptable physical shape. The Managing General Partner 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.
Further, the Local General Partner had 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 provided
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. The Transfer Agreement stated above was amended on December 31, 2008 to
allow for a 100% put of the Fund's interest on January 1, 2009 for $0. The put
was exercised for $0 on January 28, 2009, to be effective January 1, 2009. The
Managing General Partner estimates that this transaction will result in 2009
taxable income projected to be approximately $4,500,000, or about $88.36, per
Unit. The Fund no longer has an interest in this Local Limited Partnership.

As previously reported, occupancy rose from 75% at December 31, 2007 to 97% at
September 30, 2008 for Des Moines Street Village, located in Des Moines, Iowa.
Property operations improved significantly during the twelve month period ending
December 31, 2008. Due to increased occupancy, 97% for the six month period
ending December 31, 2008, the Property operated above breakeven. In June 2008,
the Fund advanced $48,404 to the Property in order to pay real estate taxes
originally due in September 2007. These past due real estate taxes resulted in
the Local General Partner defaulting on the Partnership agreement, as well as
the mortgage loan. The Managing General Partner was actively pursuing a
replacement of the Local General Partner. While the Local General Partner

<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)
________________________________
had previously funded deficits and the Property remained current on its debt
obligations, the Managing General Partner approved the Local General Partner
request to a reduced rate refinancing of the Property's first mortgage 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, any time after
the expiration of the Compliance Period on December 31, 2009. On January 29,
2009, the Managing General Partner removed the Local General Partner and as a
result, the previous put agreement was no longer valid. The Managing General
Partner, concurrently with the removal of the Local General Partner, entered
into a new put agreement with the Local General Partner successor and sold its
interest for $1, to be effective January 30, 2009. The Managing General Partner
estimates that this transaction will result in 2009 taxable income projected to
be approximately $53,000, or about $1.04, per Unit. The Fund no longer has an
interest in this Local Limited Partnership.

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, 2008, based on the appraised value of the
Property, or to market the Property for sale. The Local General Partner opted to
market the property for sale and a Purchase and Sales Agreement was signed on
June 9, 2009 and amended on June 23, 2009. The sale of the property is expected
late August 2009. The Managing General Partner currently estimates $400,000, or
$7.85 per Unit, in sales proceeds.

As previously reported, the Managing General Partner anticipated the Fund's
interest in the Local Limited Partnership that owns SpringWood Apartments,
located in Tallahassee, Florida, would be terminated upon the sale of the
Property in the third quarter of 2008, a transaction that could have resulted in
net sales proceeds to the Fund of approximately $200,000, or $3.93 per Unit. In
July 2008, the potential buyer withdrew their interest to purchase this
Property. The Managing General Partner is currently exploring alternative exit
strategies for this Local Limited Partnership interest. The Managing General
Partner now anticipates the Fund's interest in the Local Limited Partnership
will terminate upon the sale of the Property in June 2010. Net sales proceeds to
the Fund are not known at this time.

As previously reported, with respect to the Fund, a Settlement Agreement
providing an option, subject to various conditions, to purchase the Fund's
interests in Affordable/Citrus Glen, Ltd., located in Orlando, FL, was not
exercised. The Managing General Partner is currently exploring alternative exit
strategies for this Local Limited Partnership interest. The Managing General
Partner anticipates the Fund's interest in the Local Limited Partnership will
terminate in December 2009, a transaction that could result in a net sales
proceeds to the Fund of approximately $1,500,000, or $29.45 per Unit.

As previously reported, with respect to the Fund, a Settlement Agreement
providing an option, subject to various conditions, to purchase the Fund's
interests in Woods Lane, L.P., located in Rogers, Arkansas, was not exercised.
The Managing General Partner is currently exploring alternative exit strategies
for this Local Limited Partnership interest. The Managing General Partner
anticipates the Fund's interest in the Local Limited Partnership will terminate
in October 2009, a transaction that could result in a net sales proceeds to the
Fund of approximately $374,000, or $7.34 per Unit.

As previously reported, with respect to the Fund, a Settlement Agreement
provided an option, subject to various conditions, to purchase the Fund's
interest in Fountain Lakes, L.P., located in Benton, Arkansas, was not
exercised. The Managing General Partner is currently exploring alternative exit
strategies for this Local Limited Partnership interest. The Managing General
Partner anticipates the Fund's interest in the Local Limited Partnership will
terminate in October 2009, a transaction that could result in a net sales
proceeds to the Fund of approximately $1,309,000, or $25.70 per Unit.


<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, Guardian Place, located in Richmond, Virginia,
refinanced 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, occupancy at Grand Boulevard Renaissance, located in
Chicago, Illinois averaged 93% for the year ending March 31, 2009. However,
working capital and debt service coverage remained below acceptable levels. The
Property continued to operate below breakeven due to increased maintenance and
natural gas heating expenses. A representative of the Managing General Partner
conducted a physical inspection as part of an October 2008 site visit. Despite
improvements since a December 2007 visit, the Property was still assigned an
unfavorable rating due to significant deferred maintenance and unaddressed
issues. A representative of the Managing General Partner will conduct a fall
2009 site visit. 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. Currently,
there are no plans to dissolve this property prior to the end of the tax credit
compliance period, which ends on December 31, 2009.

As previously reported, in an effort to reduce the Fund's risk to chronic
operating difficulties at Wynmor, also known as Eden Park, 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. The Managing General Partner expects the
put to be exercised in September 2009. Although occupancy averaged 93% for the
six months ending June 30, 2009, the Property operated slightly below breakeven
for the same time period. The Compliance Period for the Property expired on
December 31, 2008.

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 March
31, 2009. Although occupancy rose from 70% for the three months ending June 30,
2008 to 97% for the three months ending March 31, 2009, the crime rate in the
immediate area continues to impact Twin Oaks' ability to rent units and retain
tenants. In response, a neighborhood watch program was implemented and many of
the residents' concerns regarding safety have been addressed. A new site manager
was brought in May 2007, implementing programs to involve residents, as well as
the community at large. Further, a new management company was brought in July
2008, which the Managing General Partner believes has helped occupancy at the
property.

<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)
________________________________
The Local General Partner of Fairhaven Manor, located in Burlington, Washington,
is currently working on a permanent loan extension. The loan matured on June 1,
2009, at which time a balloon payment was due; however, the loan has not yet
been declared in default. The compliance period ended December 31, 2008,
therefore there is no recapture risk at the Property. The Managing General
Partner is currently negotiating an exit strategy with the Local General
Partner. The likely end result is that the Local General Partner and Managing
General Partner will agree on a price for the Local General Partner to purchase
the Fund's interest in the property.

The Managing General Partner anticipates transferring the Fund's interest in the
Local Limited Partnership that owns Crafton Place Apartments, located in
Fayetteville, Arkansas, in the third quarter fiscal year 2010. Net sales
proceeds are projected to be approximately $325,000, or $6.38 per Unit. The
Managing General Partner expects the sale of the Fund's interest to result in a
2009 estimated taxable gain of approximately $148,000, or about $2.91 per Unit.
The Compliance Period expired on December 31, 2007.

<PAGE>

        BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED PARTNERSHIP

          QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Non Applicable

                             CONTROLS AND PROCEDURES



Disclosure Controls and Procedures
__________________________________
We conducted an evaluation of the effectiveness of the design and operation of
our disclosure controls and procedures, as defined in Rules 13a-15(e) and
15d-15(e) under the Securities Exchange Act of 1934, as amended, or the Exchange
Act, to ensure that information required to be disclosed by us in the reports
filed or submitted by us under the Exchange Act is recorded, processed,
summarized and reported, within the time periods specified in the Securities
Exchange Commission's rules and forms, including to ensure that information
required to be disclosed by us in the reports filed or submitted by us under the
Exchange Act is accumulated and communicated to management to allow timely
decisions regarding required disclosure. Based on that evaluation, management
has concluded that as of June 30, 2009, our disclosure controls and procedures
were effective.

Internal Control over Financial Reporting
_________________________________________
Our management is responsible for establishing and maintaining adequate internal
control over financial reporting, as such term is defined in Exchange Act Rules
13a-15(f) and 15d-15(f). Our management conducted an assessment of the
effectiveness of our internal control over financial reporting. This assessment
was based upon the criteria for effective internal control over financial
reporting established in Internal Control - Integrated Framework, issued by the
Committee of Sponsoring Organizations of the Treadway Commission.

The Fund's internal control over financial reporting involves a process designed
to provide reasonable assurance regarding the reliability of financial reporting
and the preparation of financial statements for external purposes in accordance
with generally accepted accounting principles. Internal control over financial
reporting includes the controls themselves, as well as monitoring of the
controls and internal auditing practices and actions to correct deficiencies
identified. Because of its inherent limitations, internal control over financial
reporting may not prevent or detect misstatements.

Management assessed the Fund's internal control over financial reporting as of
June 30, 2009. Based on this assessment, management concluded that, as of June
30, 2009, the Fund's internal control over financial reporting were designed
effectively.



<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
              31.2 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.
              32.2 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, 2009.



<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.


Date:  August 14, 2009                   BOSTON FINANCIAL TAX CREDIT FUND VII,
                                         A LIMITED PARTNERSHIP


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

                                             /s/Greg Judge
                                            _____________
                                               Greg Judge
                                               President
                                               Arch Street VIII, Inc.



<PAGE>

<PAGE>