UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                   FORM 10-QSB


(Mark One)

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

For the quarterly period ended                   December 31, 2007
                                       ----------------------------------------

                                OR

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

For the transition period from                to
                               -------------      ------------------


             Commission file number 0-24584

       Boston Financial Tax Credit Fund VII, A Limited Partnership
             (Exact name of registrant as specified in its charter)


                   Massachusetts                                 04-3166203
---------------------------------------------------------- -------------------
      (State or other jurisdiction of                      (I.R.S. Employer
                                                            Identification No.)
       incorporation or organization)


   101 Arch Street, Boston, Massachusetts                    02110-1106
---------------------------------------------           ----------------------
  (Address of principal executive offices)                   (Zip Code)


Registrant's telephone number, including area code           (617) 439-3911
                                                           -------------------

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
                                   Yes X No .

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




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

Item 1.   Financial Statements

          Balance Sheet (Unaudited) - December 31, 2007                     1

          Statements of Operations (Unaudited) -
           For the Three and Nine Months Ended December 31, 2007 and 2006   2

            Statement of Changes in Partners' Equity
              (Unaudited) - For the Nine Months Ended December 31, 2007     3

            Statements of Cash Flows (Unaudited) -
              For the Nine Months Ended December 31, 2007 and 2006          4

            Notes to the Financial Statements (Unaudited)                   5

Item 2.     Management's Discussion and Analysis of
             Financial Condition and Results of Operations                  8

Item 3A(T). Controls and Procedures                                        14

PART II - OTHER INFORMATION

Items 1-6                                                                  15

SIGNATURE                                                                  16

CERTIFICATIONS                                                             17

<PAGE>


            BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED PARTNERSHIP



                                  BALANCE SHEET
                                December 31, 2007
                                   (Unaudited)


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


Assets

Cash and cash equivalents                                                                         $       858,918
Restricted cash                                                                                           275,310
Investments in Local Limited Partnerships (Note 1)                                                      2,671,142
Other Assets                                                                                                1,087
                                                                                                  ---------------
     Total Assets                                                                                 $     3,806,457
                                                                                                  ===============

Liabilities and Partners' Equity

Due to affiliates                                                                                 $       526,644
Accrued expenses                                                                                           58,026
Other liabilities                                                                                          56,225
                                                                                                  ---------------
     Total Liabilities                                                                                    640,895
                                                                                                  ---------------

Commitments (Note 2)

General, Initial and Investor Limited Partners' Equity                                                  3,165,562
                                                                                                  ---------------
     Total Liabilities and Partners' Equity                                                       $     3,806,457
                                                                                                  ===============
</TABLE>


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


<PAGE>

              BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED PARTNERSHIP

                              STATEMENTS OF OPERATIONS
         For the Three and Nine Months Ended December 31, 2007 and 2006
                                   (Unaudited)


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


                                                         Three Months Ended                          Nine Months Ended
                                                  December 31,          December 31,         December 31,          December 31,
                                                      2007                  2006                 2007                  2006
                                                ----------------      ----------------     ----------------         -----------
Revenue
   Investment                                   $          6,504      $          9,594     $         33,120     $         32,560
   Other                                                       -                     -               22,000               56,942
                                                ----------------      ----------------     ----------------     ----------------
     Total Revenue                                         6,504                 9,594               55,120               89,502
                                                ----------------      ----------------     ----------------     ----------------

Expenses:
   Asset Management Fees, affiliate                       90,570                91,265              271,710              267,988
   Provision for valuation (recovery) of
     advances to Local Limited
     Partnerships                                              -              (250,000)                   -              979,092
   General and administrative
     (includes reimbursement to affiliate
     in the amounts of $95,327 and
     $92,515 for the nine months ended
     December 31, 2007 and 2006,
     respectively)                                        57,658                66,262              214,272              264,079
   Amortization                                            4,022                 4,108               12,068               12,691
                                                ----------------      ----------------     ----------------     ----------------
     Total Expenses                                      152,250               (88,365)             498,050            1,523,850
                                                ----------------      ----------------     ----------------     ----------------

Income (Loss) before equity in losses of
   Local Limited Partnerships                           (145,746)               97,959             (442,930)          (1,434,348)

Equity in losses of Local Limited
   Partnerships (Note 1)                                 (82,846)              (64,351)            (306,443)            (588,298)

Gain on sale of investment in Local
   Limited Partnership                                         -                     -                    -            1,220,353
                                                ----------------      ----------------     ----------------     ----------------

Net Income (Loss)                               $       (228,592)     $         33,608     $       (749,373)    $       (802,293)
                                                ================      ================     ================      ================

Net Income (Loss) allocated:
   General Partners                             $         (2,286)     $        444,655     $         (7,494)    $        436,296
   Limited Partners                                     (226,306)             (411,047)            (741,879)          (1,238,589)
                                                ----------------      ----------------     ----------------      ----------------
                                                $       (228,592)     $         33,608     $       (749,373)    $       (802,293)
                                                ================      ================     ================      ================

Net Loss Per Limited Partner
   Unit (50,930) Units                          $          (4.44)     $          (8.07)    $         (14.57)    $         (24.32)
                                                ================      ================     ================      ================


</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 Nine Months Ended December 31, 2007
                                   (Unaudited)




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


                                                               Initial           Investor
                                              General          Limited            Limited
                                             Partners          Partner            Partner            Total

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

    Net Loss                                     (7,494)              -             (741,879)        (749,373)
                                            -----------     -----------       --------------      ------------

    Balance at December 31, 2007            $    31,655     $     5,000       $    3,128,907     $  3,165,562
                                            ===========     ===========       ==============      ============
</TABLE>


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


<PAGE>

             BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED PARTNERSHIP

                            STATEMENTS OF CASH FLOWS
              For the Nine Months Ended December 31, 2007 and 2006
                                   (Unaudited)




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


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

Net cash provided by (used for) operating activities                      $      96,865          $    (496,434)

Net cash provided by investing activities                                       204,724                476,880
                                                                          -------------           -------------

Net increase (decrease) in cash and cash equivalents                            301,589                (19,554)

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

Cash and cash equivalents, ending                                         $     858,918          $     527,252
                                                                          =============           =============

</TABLE>

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


<PAGE>


           BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED PARTNERSHIP

                        NOTES TO THE FINANCIAL STATEMENTS
                                   (Unaudited)


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

The Managing General Partner of the Fund has elected to report results of the
Local Limited Partnerships in which the Fund has a limited partnership interest
on a 90 day lag basis because the Local Limited Partnerships report their
results on a calendar year basis. Accordingly, the financial information about
the Local Limited Partnerships that is included in the accompanying financial
statements is as of September 30, 2007 and 2006.

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

1.   Investments in Local Limited Partnerships

The Fund has limited partnership interests in sixteen 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.

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

The following is a summary of investments in Local Limited Partnerships at
December 31, 2007:

Capital contributions and advances paid to Local Limited Partnerships and
purchase price paid to withdrawing partners of Local Limited Partnerships                          $    30,987,652

Cumulative equity in losses of Local Limited Partnerships (excluding cumulative
   unrecognized losses of $7,167,879)                                                                   (22,737,796)

Cumulative cash distributions received from Local Limited Partnerships                                   (2,429,023)
                                                                                                     ---------------

Investments in Local Limited Partnerships before adjustments                                              5,820,833

Excess investment costs over the underlying assets acquired:

   Acquisition fees and expenses                                                                          1,081,467

   Cumulative amortization of acquisition fees and expenses                                                (338,859)
                                                                                                     ---------------

Investments in Local Limited Partnerships before valuation allowance                                      6,563,441

Valuation allowance on investments in Local Limited Partnerships                                         (3,892,299)
                                                                                                    - --------------

Investments in Local Limited Partnerships                                                           $     2,671,142
                                                                                                     ===============
</TABLE>


<PAGE>


           BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED PARTNERSHIP

                   NOTES TO THE FINANCIAL STATEMENTS (continued)
                                   (Unaudited)


1. Investments in Local Limited Partnerships (continued)

The Fund's share of the net losses of the Local Limited Partnerships for the
nine months ended December 31, 2007 is $1,540,425. For the nine months ended
December 31, 2007, the Fund has not recognized $1,233,982 of equity in losses
relating to certain Local Limited Partnerships in which cumulative equity in
losses and distributions exceeded its total investments in these Local Limited
Partnerships.

The Fund's interests in two of its investments in Local Limited Partnerships
were sold during the nine months ended December 31, 2007. The Fund did not
receive any sales proceeds due to the Local Limited Partnerships' outstanding
debts exceeding the sales prices of the Local Limited Partnerships. However, the
Fund did receive $147,901 for one Local Limited Partnership which was used to
repay prior advances to the Local Limited Partnership.

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

2.   Commitments

EITF 94-1, "Accounting for Tax Benefits Resulting from Investments in Affordable
Housing Projects" ("EITF 94-1") requires recognition of a liability for delayed
equity capital contributions to Local Limited Partnerships that are contingent
upon a future event when that contingent event becomes probable. As of December
31, 2007, the Fund has concluded that delayed equity capital contributions in
the amount of $207,281 are not probable and therefore has not recognized this
amount as a liability. Of this amount, the Fund has set aside $148,281 in escrow
for future capital contributions to one Local Limited Partnership.

3.   Significant Subsidiaries

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

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

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

Revenue                                                                       $       375,328           $     384,671
Net Income (Loss)                                                             $        52,690           $     (40,464)

Fairhaven Manor

Revenue                                                                       $        85,013           $      93,494
Net Income                                                                    $         4,927           $       9,914

Woods Lane

Revenue                                                                       $       163,348           $     183,079
Net Loss                                                                      $       (57,253)          $     (27,974)

Palo Verde II

Revenue                                                                       $        93,385           $      93,584
Net Income                                                                    $        12,779           $      19,655

</TABLE>

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

                  NOTES TO THE FINANCIAL STATEMENTS (continued)
                                   (Unaudited)


3. Significant Subsidiaries (continued)

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

Guardian Place                                                                     2007                     2006
--------------                                                                ---------------           --------

Revenue                                                                       $       233,050           $     229,612
Net Loss                                                                      $        (3,727)          $     (24,486)

Sunrise Terrace

Revenue                                                                       $        96,185           $      96,602
Net Income (Loss)                                                             $       (10,138)          $      13,378

St. Andrew's Pointe

Revenue                                                                                   N/A           $     240,258
Net Loss                                                                                  N/A           $    (135,773)

Oakridge

Revenue                                                                                   N/A           $     176,189
Net Loss                                                                                  N/A           $    (178,648)

</TABLE>






<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 and current expectations, the Fund can give no
assurance that its expectations will be attained. Actual results and timing of
certain events could differ materially from those projected in or contemplated
by the forward-looking statements due to a number of factors, including, without
limitation, general economic and real estate conditions and interest rates.

Critical Accounting Policies

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

The Local Limited Partnerships in which the Fund invests are Variable Interest
Entities ("VIE"s). The Fund is involved with the VIEs as a non-controlling
limited partner equity holder. Because the Fund is not the primary beneficiary
of these VIEs, it accounts for its investments in the Local Limited Partnerships
using the equity method of accounting. As a result of its involvement with the
VIEs, the Fund's exposure to economic and financial statement losses is limited
to its investments in the VIEs ($2,878,425 at December 31, 2007). The Fund may
be subject to additional losses to the extent of any financial support that the
Fund voluntarily provides in the future. Under the equity method, the investment
is carried at cost, adjusted for the Fund's share of net income or loss and for
cash distributions from the Local Limited Partnerships; equity in income or loss
of the Local Limited Partnerships is included currently in the Partnership's
operations. Under the equity method, a Local Limited 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 and is included in
"other revenue" in the accompanying financial statements.

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

Liquidity and Capital Resources

At December 31, 2007, the Fund had cash and cash equivalents of $858,918,
compared with $557,329 at March 31, 2007. The increase is primarily attributable
to cash distributions received from Local Limited Partnerships in excess of cash
used for operating activities.

The Managing General Partner initially designated 5% of the Gross Proceeds as
Reserves, as defined in the Partnership Agreement. The Reserves were established
to be used for working capital of the Fund and contingencies related to the
ownership of Local Limited Partnership interests. The Managing General Partner
may increase or decrease such Reserves from time to time, as it deems
appropriate. At December 31, 2007, approximately $800,000 has been designated as
Reserves.


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

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


Liquidity and Capital Resources (continued)

To date, professional fees relating to various Property issues totaling
approximately $125,000 have been paid from Reserves. In the event a Local
Limited Partnership encounters operating difficulties requiring additional
funds, the Fund's management might deem it in its best interest to voluntarily
provide such funds in order to protect its investment. As of December 31, 2007,
the Fund has advanced approximately $1,477,000 to Local Limited Partnerships,
net of reimbursements, 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 $145,000 of Reserves to fund operations. If Reserves are not
adequate to cover the Fund's operations, the Fund will seek other financing
sources including, but not limited to, the deferral of Asset Management Fees
paid to an affiliate of the Managing General Partner or working with Local
Limited Partnerships to increase cash distributions.


At December 31, 2007, the Fund has committed to make future capital
contributions and to pay future purchase price installments on its investments
in Local Limited Partnerships. These future payments are contingent upon the
achievement of certain criteria as set forth in the Local Limited Partnership
Agreements and total $207,281. Of this amount, the Fund has set aside $148,281
in escrow.

Since the Fund invests as a limited partner, the Fund has no contractual duty to
provide additional funds to Local Limited Partnerships beyond its specified
investment. Thus, as of December 31, 2007, the Fund had no contractual or other
obligation to any Local Limited Partnership which had not been paid or provided
for, except as described above.

Cash Distributions

No cash distributions were made to Limited Partners during the nine months ended
December 31, 2007.

Results of Operations

Three Month Period

The Fund's results of operations for the three months ended December 31, 2007
resulted in net loss of $228,592 as compared to a net income of $33,608 for the
same period in 2006. The decrease in net income is primarily attributable to an
increase in equity in losses of Local Limited Partnerships and a decrease in
investment income offset by a decrease in general administrative expenses and
decrease in recovery of provision for valuation of investments in Local Limited
Partnerships. The increase in equity in losses of Local Limited Partnerships is
primarily due to a decrease in unrecognized losses by the Fund for Local Limited
Partnerships with carrying values of zero. The decrease in investment income is
due to a decrease in the average balance of funds held for investment. The
decrease in recovery of provision for valuation of advances to Local Limited
Partnerships is a result of a partial reimbursement of previously reserved for
advances made to one Local Limited Partnership in prior years. General and
administrative expenses decreased due to decreased legal expenses associated
with the Fund's litigation.







<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 (continued)

Nine Month Period

The Fund's results of operations for the nine months ended December 31, 2007
resulted in a net loss of $749,373 compared to a net loss of $802,293 for the
same period in 2006. The decrease in net loss is primarily attributable to a
decrease in equity in losses of Local Limited Partnerships and a decrease in
other income offset by a decrease in general and administrative expenses. In
addition, there was a gain on sale of investments in Local Limited Partnerships
offset by the provision for valuation of advances to Local Limited Partnerships
in the prior year. The decrease in equity in losses of Local Limited
Partnerships is primarily due to an increase in unrecognized losses of Local
Limited Partnerships with carrying values of zero. The decrease in other income
is due to a decrease in distributions from Local Limited Partnerships with
carrying values of zero. General and administrative expenses decreased due to
decreased legal expenses associated with litigation from prior quarters.

Portfolio Update

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

As of December 31, 2007, the Fund's investment portfolio consists of limited
partnership interests in sixteen Local Limited Partnerships, each of which owns
and operates a multi-family apartment complex and each of which has generated
Tax Credits. Since inception, the Fund has generated Tax Credits of
approximately $1,485 per Limited Partner Unit. In the aggregate, actual and
estimated Tax Credits enabled the Fund to meet the objective specified in the
Fund's prospectus.

Properties that receive low income housing Tax Credits must remain in compliance
with rent restriction and set-aside requirements for at least 15 calendar years
from the date the property is placed in service. Failure to do so would result
in the recapture of a portion of the property's Tax Credits. The Compliance
period for six of the sixteen Properties in which the Fund has an interest
expired on December 31, 2007, while the remaining ten will expire between
December 31, 2008 and December 31, 2009. The Managing General Partner has
negotiated agreements that will ultimately dispose of the Fund's interest in
five Local Limited Partnerships. Two of the Local Limited Partnerships in which
the Fund had an interest were disposed of during the nine months ended December
31, 2007.

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

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.


<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

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

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

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

As previously reported, Los Claveles II, located in Trujillio Alto, Puerto Rico,
operated at slightly below breakeven during the six month period ending June 30,
2007, due to a decline in rental revenue caused by a decline in occupancy
levels. Through the nine month period ending September 30, 2007, the Property
continued to operate at slightly below breakeven due to occupancy levels that
were acceptable, but below the Property's breakeven occupancy level. The
Property continues to be current on its loan obligations. In addition, a site
visit conducted by a representative of the Managing General Partner in November
2007 indicated the Property is in acceptable physical shape. The Managing
General Partner, concerned about the Property's long-term viability, signed an
agreement in December 2002 with the Local General Partner whereby the Fund would
pay its remaining capital commitment of $350,000 and release Fund Reserves of
approximately $50,000 in exchange for an exit option that would allow the Fund
to put its interest to the Local General Partner at any time for $10,000. In
addition, the Local General Partner has the right, subsequent to the expiration
of the Compliance Period on December 31, 2008, to call the Fund's interest for a
price of $10,000. As part of the agreement, the Local General Partner is
providing an operating guarantee in the form of a Local General Partner
indemnification of any loss or any recapture of Tax Credits through the end of
the Compliance Period.

As previously reported, Grand Boulevard Renaissance, located in Chicago,
Illinois, and continues to experience operating difficulties. Although
acceptable occupancy levels were achieved throughout the six-month period ending
June 30, 2007, the three month period ending September 30, 2007 resulted in an
unfavorable occupancy level, while


<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)

working capital and debt service coverage ratios remain below appropriate
levels. A representative of the Managing General Partner conducted a physical
inspection as part of a December 2007 site visit. Despite improvements since an
October 2006 visit, the Property is still assigned an unfavorable rating due to
significant deferred maintenance issues. The Managing General Partner's
representative also considers property management to be weak and limited in
capacity to address the physical needs of the Property. Advances from the Local
General Partner and working capital have enabled the Property to remain current
on its loan obligations. In response to prior deficits, during 2001 the Local
General Partner negotiated with the first mortgage lender to reduce the interest
rate on the current first mortgage. In addition, in an effort to further reduce
the Property's debt service burden, in July 2003 the Local Limited Partnership
and the Illinois Housing Development Authority closed on a mortgage
restructuring of the second mortgage that reduced monthly debt service payments
until June 1, 2005. As part of the transaction, the management agent agreed to
subordinate a percentage of its management fee to payment of the second mortgage
debt service.

As previously reported, in an effort to reduce the Fund's risk to chronic
operating difficulties at Wynmor, located in Brooklyn Park, Minnesota, the
Managing General Partner and Local General Partner, on October 1, 2003, entered
into an agreement to transfer a portion of the Fund's interest in the Property's
future Tax Credits (approximately $11 per Unit) and tax losses to the Local
General Partner. In return, the Local General Partner agreed to deposit $500,000
into an escrow to be used to fund current and future operating deficits and to
fund as much as an additional $500,000 to cover future operating deficits. The
Managing General Partner and Local General Partner also have an agreement that
allows for the Managing General Partner to put the Fund's interest to the Local
General Partner for $1 any time after October 1, 2003 and that the Local General
Partner could call the Fund's interest for fair market value any time after
January 2, 2009. The Property operated above breakeven throughout the six-month
period ending September 30, 2007, despite a decline in occupancy to 85% at
September 30, 2007. The Compliance Period ends for the Property 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
September 30, 2007. As a result of a rise in the rate of crime in the immediate
area, occupancy declined to 60%, from 65% at June 30, 2007. 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.

As previously reported, Des Moines Street Village, located in Des Moines, Iowa,
operated at below breakeven for the six month period ending June 30, 2007, due
to a decline in occupancy levels and an increase in bad debt expense associated
with evictions. Debt service coverage and working capital levels remain below
appropriate levels at September 30, 2007. Although the Local General Partners
have met their working capital obligations under the Partnership Agreement and
refused to advance additional funds to the property, $8,000 was advanced by the
Local General Partner during the six month period ending September 30, 2007. The
real estate taxes due in September have not been paid, placing the Local General
Partner in default of the Partnership Agreement, as well as in default of the
mortgage loan. The Managing General Partner anticipates that these taxes will be
paid, pending the replacement of the Local General Partner. The Property may
require advances from the Fund until a replacement Local General Partner is in
place, in order to alleviate real estate tax and first mortgage loan debt
service covenant requirements. While the Local General Partner had previously
funded deficits and the Property has remained current on its debt obligations,
the Local General Partner requested and the Managing General Partner approved a
reduced rate refinancing of the Property's first mortgage that occurred in April
2004. As part of this transaction, the Managing General Partner and the Local
General Partner entered into a put agreement whereby the Fund can transfer its
interest in the Local Limited Partnership for a nominal amount at any time after
the expiration of the Compliance Period on December 31, 2009.


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

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

As previously reported, the Managing General Partner estimated a late 2007
disposition of Oak Ridge, located in Macon, Georgia. On October 31, 2007, the
Fund disposed of its interest in the Local Limited Partnership that owned and
operated Oak Ridge. As previously indicated, the Fund did not receive any
proceeds from this transaction, as the outstanding debt on the property exceeded
the Property's sales price. This disposition is expected to result in a 2007
loss of approximately $1,350,000, or $26.50 per Unit. The Fund no longer has an
interest in this Local Limited Partnership.

As previously reported, although operations at Palo Verde II, located in
Henderson, Nevada, remain strong, the former Local General Partner filed for
bankruptcy protection and refused to remit to the Fund its priority cash
distributions, representing a default under the terms of the Local Limited
Partnership Agreement. An affiliate of the Managing General Partner assumed the
Local General Partner interest in September 2001. Since the statute of
limitations on potential litigation involving one of the former Local General
Partners expired in 2005, the Managing General Partner currently expects an
early 2008 disposal of the Fund's interest, upon the sale of the underlying
Property, in this Local Limited Partnership. This sale is projected to result in
net sales proceeds to the Partnership of approximately $1,400,000, or $27 per
Unit and 2007 taxable income of approximately $800,000, or $16 per Unit.

The Managing General Partner anticipates that the Fund's interest in the Local
Limited Partnership that owns Spring Wood Apartments, located in Tallahassee,
Florida, will be terminated upon the sale of the Property in mid 2008. Under the
current terms, this sale is expected to result in net proceeds to the Fund of
approximately $380,000, or $7.46 per Unit. This sale would result in 2008
taxable income projected to be approximately $360,000, or $7.06 per Unit.

As previously reported, with respect to the Fund, a Settlement Agreement
providing options, subject to various conditions, to purchase the Fund's
interests in Affordable/Citrus Glen, Ltd., located in Orlando, FL, Woods Lane,
L.P., located in Rogers, AR and Fountain Lakes, L.P., located in Benton, AR for
$3,705,000, were not exercised. The Managing General Partner will explore
alternative exit strategies for these Local Limited Partnership interests.



<PAGE>

              BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED PARTNERSHIP
                             CONTROLS AND PROCEDURES



Item 3A(T).  Controls and Procedures.

As of the end of the period covered by this report, with the participation of
the Fund's management, the Fund's principal executive officer and principal
financial officer conducted an evaluation of the Fund's disclosure controls and
procedures (as defined in Rule 13a-15(e) and Rule 15d-15(e) under the Exchange
Act). Based on this evaluation, our principal executive officer and principal
financial officer concluded that our disclosure controls and procedures were
effective as of December 31, 2007, to provide reasonable assurance that
information required to be disclosed in our reports filed or submitted under the
Exchange Act is recorded, processed, summarized and reported within the time
periods specified in the Securities and Exchange Commission's rules and forms.

Changes in Internal Control over Financial Reporting.

During the fiscal quarter ended December 31, 2007, there has been no change in
our internal control over financial reporting that has materially affected, or
is reasonably likely to materially affect, our internal control over financial
reporting.



<PAGE>

                BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED PARTNERSHIP


PART II       OTHER INFORMATION

Items 1-5     Not applicable

Item 6        Exhibits

              Exhibits

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


<PAGE>

            BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED PARTNERSHIP

                                   SIGNATURE


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


DATED:  February 14, 2008                BOSTON FINANCIAL TAX CREDIT FUND VII,
                                         A LIMITED PARTNERSHIP


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

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



<PAGE>



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