August 14  , 2001



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

Re:    Boston Financial Tax Credit Fund VII, A Limited Partnership
       Report on Form 10-QSB for the Quarter Ended June 30, 2001
       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





TC7-Q1.DOC


<PAGE>


                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                   FORM 10-QSB


(Mark One)

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

For the quarterly period ended                       June 30, 2001
                                       ----------------------------------------

                                                         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




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

Item 1.   Financial Statements

          Balance Sheet (Unaudited) - June 30, 2001                        1

          Statements of Operations (Unaudited) -
               For the Three Months Ended June 30, 2001 and 2000           2

          Statement of Changes in Partners' Equity (Deficiency)
               (Unaudited) - For the Three Months Ended June 30, 2001      3

          Statements of Cash Flows (Unaudited) -
               For the Three Months Ended June 30, 2001 and 2000           4

          Notes to the Financial Statements (Unaudited)                    5

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

PART II - OTHER INFORMATION

Items 1-6                                                                 10

SIGNATURE                                                                 11



<PAGE>





                      BOSTON FINANCIAL TAX CREDIT FUND VII
                             (A Limited Partnership)

                                  BALANCE SHEET
                                  June 30, 2001
                                   (Unaudited)


Assets

Cash and cash equivalents                                   $       810,510
Marketable securities, at fair value                              1,798,883
Restricted cash                                                     301,713
Investments in Local Limited Partnerships (Note 1)               19,750,370
Other assets                                                         30,589
                                                            ---------------
     Total Assets                                           $    22,692,065
                                                            ===============


Liabilities and Partners' Equity

Accounts payable to affiliates                              $       103,369
Accrued expenses                                                     42,236
                                                            ---------------
     Total Liabilities                                              145,605
                                                            ---------------
Commitments (Note 2)

General, Initial and Investor Limited Partners' Equity           22,523,727
Net unrealized gains on marketable securities                        22,733
                                                            ---------------
     Total Partners' Equity                                      22,546,460
                                                            ---------------
     Total Liabilities and Partners' Equity                 $    22,692,065
                                                            ===============

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, 2001 and 2000
                                   (Unaudited)

<TABLE>
<CAPTION>


                                                                                       2001             2000
                                                                                  -------------    -------------
Revenue:
<S>                                                                               <C>              <C>
   Investment                                                                     $      34,903    $      40,359
   Other                                                                                  2,673           11,126
                                                                                  -------------    -------------
     Total Revenue                                                                       37,576           51,485
                                                                                  -------------    -------------

Expenses:
   General and administrative expenses (includes reimbursements
     to an affiliate in the amounts of $26,914 and $32,506, respectively)                46,237           61,649
   Asset management fee, related party                                                   78,032           75,499
   Amortization                                                                           7,656            8,046
                                                                                  -------------    -------------
     Total Expenses                                                                     131,925          145,194
                                                                                  -------------    -------------

Loss before equity in losses of Local Limited Partnerships                              (94,349)         (93,709)

Equity in losses of Local Limited Partnerships (Note 1)                                (509,491)        (518,341)
                                                                                  -------------    -------------
Net Loss                                                                          $    (603,840)   $    (612,050)
                                                                                  =============    =============
Net Loss allocated:
   General Partners                                                               $      (6,038)   $      (6,121)
   Limited Partners                                                                    (597,802)        (605,929)
                                                                                  -------------    -------------
                                                                                  $    (603,840)   $    (612,050)
                                                                                  =============    =============
Net Loss per Limited Partnership Unit
   (50,930 Units)                                                                 $      (11.74)   $      (11.90)
                                                                                  =============    ==============
</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 Three Months Ended June 30, 2001
                                   (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, 2001             $  (213,046)   $   5,000    $   23,335,613    $    24,952    $  23,152,519
                                      -----------    ---------    --------------    -----------    -------------

Comprehensive Loss:
   Change in net unrealized gains
     on marketable securities
     available for sale                         -            -                 -         (2,219)          (2,219)
   Net Loss                                (6,038)           -          (597,802)             -         (603,840)
                                      -----------    ---------    --------------    -----------    -------------
Comprehensive Loss                         (6,038)           -          (597,802)        (2,219)        (606,059)
                                      -----------    ---------    --------------    -----------    -------------

Balance at June 30, 2001              $  (219,084)   $   5,000    $   22,737,811    $    22,733    $  22,546,460
                                      ===========    =========    ==============    ===========    =============
</TABLE>

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

                      BOSTON FINANCIAL TAX CREDIT FUND VII
                             (A Limited Partnership)

                            STATEMENTS OF CASH FLOWS
                For the Three Months Ended June 30, 2001 and 2000
                                   (Unaudited)

<TABLE>
<CAPTION>

                                                                                      2001               2000
                                                                                  -------------    -------------

<S>                                                                               <C>              <C>
Net cash used for operating activities                                            $    (217,302)   $    (129,118)

Net cash provided by (used for) investing activities                                    420,720           (2,733)
                                                                                  -------------    -------------

Net increase (decrease) in cash and cash equivalents                                    203,418         (131,851)

Cash and cash equivalents, beginning                                                    607,092          307,807
                                                                                  -------------    -------------

Cash and cash equivalents, ending                                                 $     810,510    $     175,956
                                                                                  =============    =============

</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. 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, 2001. In the opinion of management, these
financial statements include all adjustments, consisting only of normal
recurring adjustments, necessary to present fairly the Fund's financial position
and results of operations. The results of operations for the 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 of 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, 2001 and 2000.

1.   Investments in Local Limited Partnerships

The Fund uses the equity method to account for its limited partnership interests
in nineteen Local Limited Partnerships which own and operate multi-family
housing complexes. Upon dissolution of the Local Limited Partnerships, proceeds
will be distributed according to each respective partnership agreement.

The following is a summary of investments in Local Limited Partnerships at June
30, 2001:
<TABLE>
<CAPTION>

Capital contributions and advances paid to Local Limited
   Partnerships and purchase price paid to withdrawing
<S>                                                                                              <C>
   partners of Local Limited Partnerships                                                        $  39,592,092

Cumulative equity in losses of Local Limited
   Partnerships (excluding unrecognized losses
   of $5,251,329)                                                                                  (19,756,453)

Cumulative cash distributions received from Local Limited
   Partnerships                                                                                     (1,058,741)
                                                                                                 -------------

Investments in Local Limited Partnerships before
   adjustments                                                                                      18,776,898

Excess of investment costs over the underlying net assets acquired:

   Acquisition fees and expenses                                                                     1,252,338

   Accumulated amortization of acquisition fees and expenses                                          (225,926)
                                                                                                 -------------

Investments in Local Limited Partnerships prior to reserve for
    valuation                                                                                       19,803,310

Reserve for valuation of investments in Local Limited Partnerships                                     (52,940)
                                                                                                 -------------

Investments in Local Limited Partnerships                                                        $  19,750,370
                                                                                                 =============
</TABLE>

The Fund has provided a reserve for valuation for its investments in one Local
Limited Partnership because there is evidence of a non-temporary decline in the
recoverable amount of this 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
three months ended June 30, 2001 is $809,329. For the three months ended June
30, 2001, the Partnership has not recognized $299,838 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 June 30, 2001, 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 $408,000. In addition, the Fund has set aside $217,000 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.

Liquidity and Capital Resources

At June 30, 2001, the Fund had cash and cash equivalents of $810,510, compared
with $607,092 at March 31, 2001. This increase is primarily due to proceeds from
sales and maturities of marketable securities and cash distributions received
from Local Limited Partnerships. These increases are partially offset by cash
used for operations.

As of June 30, 2001, the Managing General Partner has designated approximately
$2,017,000 of cash, cash equivalents and marketable securities as Reserves. 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 believes that the interest income earned on
Reserves, along with cash distributions received from Local Limited
Partnerships, to the extent available, will be sufficient to fund the Fund's
ongoing operations. Reserves may be used to fund operating deficits if the
Managing General Partner deems such funding appropriate.

At June 30, 2001, 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 $408,000. In addition, the Fund has set aside $217,000 in
escrow for future capital contributions to one Local Limited Partnership.

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, 2001, the Fund had no contractual or other
obligation to any Local Limited Partnership which had not been paid or provided
for, except as described above.

In the event a Local Limited Partnership encounters operating difficulties
requiring additional funds, the Fund might deem it in its best interests to
provide such funds, voluntarily, in order to protect its investment. As of June
30, 2001, the Fund has advanced approximately $53,000 to Local Limited
Partnerships to fund operating deficits.

Cash Distributions

No cash distributions were made during the three months ended June 30, 2001.


<PAGE>

                      BOSTON FINANCIAL TAX CREDIT FUND VII
                             (A Limited Partnership)

                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
            FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)


Results of Operations

The Fund's results of operations for the three months ended June 30, 2001
resulted in a net loss of $603,840, as compared to a net loss of $612,050 for
the same period in 2000. The decrease in net loss is primary attributable to
decreases in equity in losses of Local Limited Partnerships and general and
administrative expense. These decreases are partially offset by a decrease in
other income.

Property Discussions

The Fund's investment portfolio consists of limited partnership interests in 19
Local Limited Partnerships, each of which own and operate a multi-family
apartment complex. A majority of the Properties have stabilized operations and
operate above break-even. However, some Properties have persistent operating
difficulties that could result in their foreclosure or in the Managing General
Partner deeming it appropriate for the Fund to dispose of its interest in the
Property. Also, the Managing General Partner, in the normal course of the Fund's
business, may desire to dispose certain Properties. The following Property
discussion focuses only on such Properties.

As previously reported, Grand Boulevard Renaissance, located in Chicago,
Illinois, has been experiencing operating difficulties and has difficulties in
achieving debt service coverage. As a result, the Local General Partner has been
negotiating with the lender to reduce the interest rate on the current mortgage.
During 2001, the Property successfully restructured its debt. This should allow
the Property to alleviate its financial difficulties. The Managing General
Partner will continue to work closely with the Local General Partner to monitor
property operations.

As previously reported, Los Claveles II, located in Trujillo Alto, Puerto Rico,
continues to perform poorly. The Property requires significant capital for
maintenance and repair, and faces crime and security issues. Also, occupancy is
extremely low. Effective December 30, 1999, the Property restructured its
existing mortgage loan balance, in the approximate amount of $9 million, into a
$4 million first mortgage with an interest rate of 6% amortized over a 30-year
term and a $5 million second mortgage with no interest and principal payable
from cash flow. No debt service payments were required until November 2000. The
reduction in debt service payments made cash available for use towards the
necessary maintenance and repairs required at the Property. However, due to
certain issues, the necessary repairs have not yet been completed and operations
have not improved. As a result, the Property was unable to make the November 1,
2000 debt service payment. Although the loan is technically in default, the
workout agreement contains a clause that obligates the lender to renegotiate the
terms of the workout agreement in the event that the terms of the agreement are
not met. As part of the loan restructuring, the Local General Partner was
replaced. Recently, the Lender agreed to provide funds for additional security
services. In addition, the Property submitted applications for two drug
elimination grants to HUD during the second quarter of 2001. The Managing
General Partner is concerned about the Property's long-term viability.

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 lack of public transportation near the site. The site manager is
diligently working to attract more tenants and decrease expenses. These efforts
positively impacted Property operations during the six months ended June 30,
2001 as net operating income increased significantly as compared to the same
period in 2000. However, the Property's net operating income is insufficient to
meet debt service payments. The Managing General Partner will continue to work
closely with the management agent and Local General Partner to monitor Property
operations and marketing efforts.


<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)
-------------------------------

Occupancy at Guardian Place, located in Richmond, Virginia, has fluctuated
primarily due to the difficulty in leasing its studio units. Occupancy is not
expected to stabilize in the near term as a competing property in close
proximity to Guardian Place will begin lease-up this year. The Managing General
Partner visited the Property in the fourth quarter of 2000 and found it in very
good condition. The Managing General Partner will continue to monitor local
market conditions and the impact they may have on the Property's operations.

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
carrying value is compared to the undiscounted future cash flows expected to be
derived from the asset. If a significant impairment in carrying value exists, a
provision to write down the asset to fair value will be recorded in the Fund's
financial statements.


<PAGE>



                      BOSTON FINANCIAL TAX CREDIT FUND VII
                             (A Limited Partnership)


PART II       OTHER INFORMATION

Items 1-5     Not applicable

Item 6        Exhibits and reports on Form 8-K

                (a) Exhibits - None

                (b) Reports on Form 8-K - No reports on Form 8-K were filed
                    during the quarter ended June 30, 2001.



<PAGE>

                      BOSTON FINANCIAL TAX CREDIT FUND VII
                             (A Limited Partnership)

                                    SIGNATURE


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


DATED:  August 14,  2001               BOSTON FINANCIAL TAX CREDIT FUND VII,
                                       A LIMITED PARTNERSHIP


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


                                             /s/Jenny Netzer
                                             ----------------------------------
                                             Jenny Netzer
                                             Principal, Head of Housing and
                                             Community Investment



<PAGE>