August 14, 1997




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

Re:     Boston Financial Tax Credit Fund VII, A Limited Partnership
        Report on Form 10-Q for Quarter Ended June 30, 1997
        File No. 0-24584



Gentlemen:

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


Very truly yours,


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





TC7-Q1.DOC


<PAGE>


                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                    FORM 10-Q

Quarterly Report Under Section 13 or 15(d) of the Securities Exchange Actof1934

(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 30,1997

                                       OR

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


For the transition period from                 to


For Quarter Ended   June 30, 1997     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 .


<PAGE>



        BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED PARTNERSHIP


                                TABLE OF CONTENTS




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

Item 1.   Financial Statements

          Balance Sheets - June 30, 1997 (Unaudited)
               and March 31, 1997                                          1

          Statements of Operations (Unaudited) -
               For the Three Months Ended June 30, 1997 and 1996           2

          Statement of Changes in Partners' Equity (Deficiency)
               (Unaudited) - For the Three Months Ended June 30, 1997      3

          Statements of Cash Flows (Unaudited) -
               For the Three Months Ended June 30, 1997 and 1996           4

          Notes to Financial Statements (Unaudited)                        5

Item 2.   Management's Discussion and Analysis of
               Financial Condition and Results of Operations               6

PART II - OTHER INFORMATION

Items 1-6                                                                  8

SIGNATURE                                                                  9



<PAGE>

        BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED PARTNERSHIP

<TABLE>
                                                        
                                 BALANCE SHEETS
<CAPTION>

                                                                       June 30,               March 31,
                                                                         1997                   1997
                                                                      (Unaudited)
Assets

<S>                                                                   <C>                   <C>         
Cash and cash equivalents                                             $    396,242          $    373,729
Marketable securities, at fair value                                     3,133,738             3,240,944
Restricted cash                                                            242,021               239,155
Investments in Local Limited Partnerships (Note 1)                      31,088,805            31,792,098
Organization costs, net of accumulated
   amortization of $43,333 and $40,833,
   respectively                                                              6,667                 9,167
Other assets                                                                46,192                39,556
                                                                      ------------          ------------
     Total Assets                                                     $ 34,913,665          $ 35,694,649
                                                                      ============          ============


Liabilities and Partners' Equity

Accounts payable to affiliates                                        $    360,249          $    304,382
Accrued expenses                                                            34,936                34,940
                                                                      ------------          ------------
     Total Liabilities                                                     395,185               339,322
                                                                      ------------          ------------

Commitments (Note 2)

General, Initial and Investor Limited Partners' Equity                  34,539,093            35,405,419
Net unrealized losses on marketable securities                             (20,613)              (50,092)
                                                                      ------------          ------------
          Total Partners' Equity                                        34,518,480            35,355,327
                                                                      ------------          ------------
          Total Liabilities and Partners' Equity                      $ 34,913,665          $ 35,694,649
                                                                      ============          ============
</TABLE>

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


<PAGE>

        BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED PARTNERSHIP


<TABLE>
                            STATEMENTS OF OPERATIONS
                                   (Unaudited)
                For the Three Months Ended June 30, 1997 and 1996
<CAPTION>

                                                                                1997                  1996
                                                                           ------------          ---------
Revenue:
<S>                                                                         <C>                   <C>       
     Investment                                                             $   48,581            $   41,752
     Other                                                                      17,342                66,583
                                                                                ------              -------    
      Total Revenue                                                            65,923               108,335
                                                                            ----------            ----------

Expenses:
     Asset management fee, related party                                        71,097                68,826
     General and administrative (includes reimbursements
      to an affiliate in the amounts of $34,147 and $33,200, respectively)      65,117                65,878
     Amortization                                                               11,432                11,457
                                                                            ----------            ----------
       Total Expenses                                                          147,646               146,161
                                                                            ----------            ----------

Loss before equity in losses of
     Local Limited Partnerships                                                (81,723)              (37,826)

Equity in losses of Local Limited Partnerships                                (784,603)             (595,190)
                                                                            ----------            ----------

Net Loss                                                                    $ (866,326)           $ (633,016)
                                                                            ==========            ==========

Net Loss allocated:
     To General Partners                                                    $   (8,663)           $   (6,330)
     To Limited Partners                                                      (857,663)             (626,686)
                                                                            ----------            ----------
                                                                            $ (866,326)           $ (633,016)
                                                                            ==========            ==========

Net Loss per Limited Partnership Unit
(50,930 Units)                                                              $   (16.84)           $   (12.30)
                                                                            ==========            ==========
</TABLE>
                    The  accompanying  notes  are  an  integral  part  of  these
financial statements.


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

              STATEMENT OF CHANGES IN PARTNERS' EQUITY (DEFICIENCY)
                                   (Unaudited)
                    For the Three Months Ended June 30, 1997

<CAPTION>
                                                                                        Net
                                                   Initial         Investor         Unrealized
                                   General         Limited          Limited            Gains
                                   Partners       Partners         Partners          (Losses)             Total

<S>                                <C>             <C>          <C>                   <C>              <C>         
Balance at March 31, 1997          $(90,267)       $ 5,000      $ 35,490,686          $ (50,092)       $ 35,355,327

Net change in net unrealized
   losses on marketable securities
   available for sale                     -              -                 -             29,479              29,479

Net Loss                             (8,663)             -          (857,663)                 -            (866,326)
                                   --------        -------      ------------          ---------        ------------

Balance at June 30, 1997           $(98,930)       $ 5,000      $ 34,633,023          $ (20,613)       $ 34,518,480
                                   ========        =======      ============          =========        ============
</TABLE>

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


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

                            STATEMENTS OF CASH FLOWS
                                   (Unaudited)
                For the Three Months Ended June 30, 1997 and 1996
<CAPTION>

                                                                                 1997                  1996
                                                                            -------------         ---------

<S>                                                                         <C>                    <C>         
Net cash used for operating activities                                      $    (17,214)          $   (68,861)
                                                                            ------------           -----------

Cash flows from investing activities:
    Purchase of marketable securities                                           (397,672)                    -
    Proceeds from sales and maturities of
       marketable securities                                                     530,507               581,755
    Cash distributions received from Local
       Limited Partnerships                                                        3,758               122,750
    Investments in Local Limited Partnerships                                    (94,000)             (525,824)
    Restricted cash                                                               (2,866)               (2,885)
                                                                            ------------           -----------
Net cash provided by investing activities                                         39,727               175,796
                                                                            ------------           -----------

Net increase in cash and cash equivalents                                         22,513               106,935

Cash and cash equivalents, beginning of period                                   373,729               334,845
                                                                            ------------           -----------

Cash and cash equivalents, end of period                                    $    396,242           $   441,780
                                                                            ============           ===========
</TABLE>


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


<PAGE>

        BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED PARTNERSHIP

                                                        
                          NOTES TO FINANCIAL STATEMENTS
                                   (Unaudited)

The  unaudited  financial  statements  presented  herein  have been  prepared in
accordance  with the  instructions  to Form 10-Q and do not  include  all of the
information  and note  disclosures  required by  generally  accepted  accounting
principles.  These  statements  should be read in conjunction with the financial
statements and notes thereto included with the  Partnership's  10-K for the year
ended March 31, 1997. In the opinion of management,  these financial  statements
include  all  adjustments,  consisting  only of  normal  recurring  adjustments,
necessary to present fairly the Partnership'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.

1.   Investments in Local Limited Partnerships

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

The following is a summary of Investments in Local Limited  Partnerships at June
30, 1997:
<TABLE>
<CAPTION>


<S>                                                                                                <C>
Capital Contributions paid to Local Limited Partnerships
   and purchase price paid to withdrawing partners of
   Local Limited Partnerships                                                                      $  39,283,961

Cumulative equity in losses of Local Limited Partnerships                                             (9,050,657)

Cash distributions received from Local Limited Partnerships                                             (296,761)
                                                                                                   -------------

Investments in Local Limited Partnerships before adjustments                                          29,936,543

Excess of investment cost over the underlying net assets acquired:

   Acquisition fees and expenses                                                                       1,252,338

   Accumulated amortization of acquisition fees and expenses                                            (100,076)
                                                                                                   -------------

Investments in Local Limited Partnerships                                                          $  31,088,805
                                                                                                   =============
</TABLE>

The Partnership's share of the net losses of the Local Limited  Partnerships for
the three months ended June 30, 1997 is $784,603.

2.   Commitments

At June 30, 1997,  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  $658,000.  In addition,  the Fund has set aside $217,000 in
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

Liquidity and Capital Resources

At June 30, 1997, the Fund had cash and cash  equivalents of $396,242,  compared
with  $373,729 at March 31,  1997.  The increase is  primarily  attributable  to
proceeds  from  sales  and  maturities  of  marketable  securities  in excess of
purchases of marketable  securities and cash  distributions  received from Local
Limited Partnerships. These increases to cash and cash equivalents are partially
offset by investments in Local Limited  Partnerships and cash used for operating
activities.

As of June 30, 1997,  approximately $2,494,000 of marketable securities has been
designated  as Reserves by the  Managing  General  Partner.  The  Reserves  were
established to be used for working capital of the Fund and contingencies related
to the ownership of Local Limited  Partnership  interests.  Management  believes
that the  interest  income  earned on  Reserves,  along with cash  distributions
received  from Local  Limited  Partnerships,  to the extent  available,  will be
sufficient to fund the Fund's ongoing  operations.  Reserves may be used to fund
operating deficits if the Managing General Partner deems funding appropriate.

At June 30, 1997,  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  $658,000.  In addition,  the Fund has set aside $217,000 in
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, 1997,  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.  No such
event has occurred to date.

Cash Distributions

No cash distributions were made during the three months ended June 30, 1997.

Results of Operations

The Fund's  results  of  operations  for the three  months  ended June 30,  1997
resulted in a net loss of $866,326 as compared to a net loss of $633,016 for the
same period in 1996.  The increase in net loss is primarily  attributable  to an
increase  in equity in losses of Local  Limited  Partnerships  and a decrease in
other revenue.  Equity in losses of Local Limited Partnerships  increased during
the three months ended June 30,  1997,  as compared to June 30, 1996,  due to an
increase in general  operating  and  depreciation  expenses of the Local Limited
Partnerships.  Other  revenue  decreased  during the three months ended June 30,
1997 as the result of a decrease in escrow interest earned by the Partnership as
well as a decrease in distributions received from 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

Property Discussions

Los Claveles II, located in Trujillio Alto, Puerto Rico, continues to experience
operating  difficulties  due to  ongoing  capital  repair  needs and  management
issues. As previously reported,  most of these difficulties stem from widespread
water  infiltration  that  caused  subsidy  payments  to  be  suspended  pending
completion of required  property  repairs.  The suspension of Section 8 payments
caused large fluctuations in monthly revenue and a subsequent  mortgage default.
The  Partnership  temporarily  cured the default by advancing  $208,000 from the
developer's  escrow.  Recently,  an affiliate of the Managing General Partner of
the Partnership successfully negotiated with the Local General Partners,  lender
and local housing  authority to replace the management agent for Los Claveles II
as  well  as  its  neighboring  property,   Los  Claveles  I.  By  consolidating
management,  the  Managing  General  Partner  feels that it can achieve  greater
control  over both sites and attain  certain  operating  efficiencies  that will
benefit both properties. The new management agent assumed responsibility for the
property  in  December  1996 and has  successfully  obtained  Section  8 subsidy
increases.  The Local General  Partners agreed to step down voluntarily and will
be replaced by an affiliate of the Managing  General  Partner,  once the workout
plan is approved by the lender. In addition, the Local General Partners executed
a delegation  agreement  which grants  authority to an affiliate of the Managing
General  Partner  to  implement  the  capital   improvement  plan  and  complete
negotiations  with the lender.  The lender continues to indicate its willingness
to work with the  Managing  General  Partner  and  management  agent to  improve
operations and cure defaults.  Although there appears to be sufficient resources
to turn the project  around,  no  agreement  has been reached with the lender to
date.




<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, 1997.



<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, 1997                   BOSTON FINANCIAL TAX CREDIT FUND VII,
                                          A LIMITED PARTNERSHIP


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




                                       /s/Vincent J. Costantini
                                          Vincent J. Costantini
                                          Treasurer and Chief Financial Officer