February 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-Q for the Quarter Ended December 31, 2000
       File Number 0-24584


Dear Sir/Madam:

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/Stephen Guilmette

Stephen Guilmette
Assistant Controller

TC7-Q3.DOC


<PAGE>


                                  UNITED STATES

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                    FORM 10-Q

(Mark One)

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

For the quarterly period ended          December 31,  2000
                              -------------------------------


                                                         OR

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


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


                         Commission file number 0-24584

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


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


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


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

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days.

                                   Yes X No .


<PAGE>


                      BOSTON FINANCIAL TAX CREDIT FUND VII
                             (A Limited Partnership)

                                TABLE OF CONTENTS
<TABLE>
<CAPTION>

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

<S>                                                                                      <C>
Item 1.   Financial Statements

          Balance Sheets - December 31, 2000 (Unaudited)
               and March 31, 2000                                                         1

          Statements of Operations (Unaudited) -
               For the Three and Nine Months Ended December 31, 2000 and 1999             2

          Statement of Changes in Partners' Equity (Deficiency)
               (Unaudited) - For the Nine Months Ended December 31, 2000                  3

          Statements of Cash Flows (Unaudited) -
               For the Nine Months Ended December 31, 2000 and 1999                       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                                                                                 9

SIGNATURE                                                                                 10


</TABLE>

<PAGE>

                        BOSTON FINANCIAL TAX CREDIT FUND VII
                             (A Limited Partnership)

                                 BALANCE SHEETS
<TABLE>
<CAPTION>

                                                                                December 31,          March 31,
                                                                                    2000                2000
                                                                                -------------      ------------
                                                                                 (Unaudited)
Assets
<S>                                                                             <C>                <C>
Cash and cash equivalents                                                       $     480,843      $     307,807
Marketable securities, at fair value                                                2,281,030          2,491,752
Restricted cash                                                                       293,654            280,053
Investments in Local Limited Partnerships, net (Note 1)                            20,751,613         22,640,861
Other assets                                                                           34,206             31,930
                                                                                -------------      -------------
     Total Assets                                                               $  23,841,346      $  25,752,403
                                                                                =============      =============

Liabilities and Partners' Equity

Accounts payable to affiliates                                                  $     181,086      $     170,084
Accounts payable and accrued expenses                                                  54,791             36,491
                                                                                -------------      -------------
     Total Liabilities                                                                235,877            206,575
                                                                                -------------      -------------

Commitments (Note 2)

General, Initial and Investor Limited Partners' Equity                             23,599,758         25,580,333
Net unrealized gains (losses) on marketable securities                                  5,711            (34,505)
                                                                                -------------      -------------
     Total Partners' Equity                                                        23,605,469         25,545,828
                                                                                -------------      -------------
     Total Liabilities and Partners' Equity                                     $  23,841,346      $  25,752,403
                                                                                =============      =============
</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, 2000 and 1999
                                   (Unaudited)

<TABLE>
<CAPTION>



                                             Three Months Ended                          Nine Months Ended
                                      December 31,         December 31,           December 31,       December 31,
                                          2000                 1999                   2000               1999
                                      -------------        -------------         -------------     --------------
Revenue:
<S>                                   <C>                  <C>                   <C>               <C>
   Investment                         $      40,804        $      41,162         $     121,334     $       127,379
   Other                                     15,785                2,205                35,807              66,888
                                      -------------        -------------         -------------     ---------------
       Total Revenue                         56,589               43,367               157,141             194,267
                                      -------------        -------------         -------------     ---------------

Expenses:
   General and administrative
     (includes reimbursements
     to an affiliate in the amounts
     of $55,511 and $68,054 in
     2000 and 1999, respectively)            10,497               57,373               122,753             144,774
   Asset management fee,
     related party                           75,499               73,888               226,497             221,664
   Provision for valuation of
     investment in Local

     Limited Partnership                     17,389                   -                 52,940                 -
   Amortization                               6,876                8,046                22,967              24,138
                                      -------------        -------------         -------------     ---------------
       Total Expenses                       110,261              139,307               425,157             390,576
                                      -------------        -------------         -------------     ---------------

Loss before equity in losses
    of Local Limited Partnerships           (53,672)             (95,940)             (268,016)           (196,309)

Equity in losses of Local Limited

   Partnerships (Note 1)                   (631,537)          (1,021,743)           (1,712,559)         (2,092,589)
                                      -------------        -------------         -------------     ---------------

Net Loss                              $    (685,209)       $  (1,117,683)        $  (1,980,575)    $    (2,288,898)
                                      =============        =============         =============     ===============

Net Loss allocated:
   To General Partners                $      (6,852)       $     (11,177)        $     (19,806)    $       (22,889)
   To Limited Partners                     (678,357)          (1,106,506)           (1,960,769)         (2,266,009)
                                      -------------        -------------         -------------     ---------------
                                      $    (685,209)       $  (1,117,683)        $  (1,980,575)    $    (2,288,898)
                                      =============        =============         =============     ===============
Net Loss per Limited
   Partnership Unit

   (50,930 Units)                     $      (13.32)       $      (21.72)        $      (38.50)    $        (44.49)
                                      =============        =============         =============     ===============
</TABLE>

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

<PAGE>
                      BOSTON FINANCIAL TAX CREDIT FUND VII
                             (A Limited Partnership)

              STATEMENT OF CHANGES IN PARTNERS' EQUITY (DEFICIENCY)
                   For the Nine Months Ended December 31, 2000
                                   (Unaudited)

<TABLE>
<CAPTION>

                                                                                       Net
                                                       Initial       Investor       Unrealized
                                       General         Limited        Limited         Gains
                                       Partners        Partner       Partners        (Losses)          Total

<S>                                   <C>            <C>          <C>               <C>            <C>
Balance at March 31, 2000             $  (188,518)   $   5,000    $   25,763,851    $   (34,505)   $  25,545,828
                                      -----------    ---------    --------------    -----------    -------------

Comprehensive Income (Loss):
   Change in net unrealized losses
     on marketable securities
     available for sale                         -            -                 -         40,216           40,216
   Net Loss                               (19,806)           -        (1,960,769)             -       (1,980,575)
                                      -----------    ---------    --------------    -----------    -------------
Comprehensive Income (Loss)               (19,806)           -        (1,960,769)        40,216       (1,940,359)
                                      -----------    ---------    --------------    -----------    -------------

Balance at December 31, 2000          $  (208,324)   $   5,000    $   23,803,082    $     5,711    $  23,605,469
                                      ===========    =========    ==============    ===========    =============
</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, 2000 and 1999
                                   (Unaudited)
<TABLE>
<CAPTION>

                                                                                      2000              1999
                                                                                  -------------    -------------

<S>                                                                               <C>              <C>
Net cash used for operating activities                                            $    (193,637)   $    (200,514)
                                                                                  -------------    -------------

Cash flows from investing activities:

   Purchases of marketable securities                                                  (362,671)        (498,955)
   Proceeds from sales and maturities of
     marketable securities                                                              613,562          957,692
   Advances to Local Limited Partnership                                                (52,940)               -
Investments in Local Limited Partnerships                                                     -         (230,000)
   Cash distributions received from Local
     Limited Partnerships                                                               168,722           89,575
                                                                                  -------------    -------------
Net cash provided by investing activities                                               366,673          318,312
                                                                                  -------------    -------------

Net increase in cash and cash equivalents                                               173,036          117,798

Cash and cash equivalents, beginning                                                    307,807          114,347
                                                                                  -------------    -------------

Cash and cash equivalents, end                                                    $     480,843    $     232,145
                                                                                  =============    =============
</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 Fund's Form 10-K for the year
ended March 31, 2000. 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 has elected to report results of the Local Limited
Partnerships 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, 2000 and 1999.

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.  The Fund,  as  Investor  Limited  Partner,  pursuant to the
various Local Limited  Partnership  Agreements,  which contain certain operating
and distribution  restrictions,  has generally acquired a 99% interest, with the
exception of Springwood which is a 19.8% interest,  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
December 31, 2000:
<TABLE>
<CAPTION>

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

Cumulative equity in losses of Local Limited
   Partnerships (excluding cumulative unrecognized losses
   of $2,022,389)                                                                                (18,886,664)

Cash distributions received from Local Limited
   Partnerships                                                                                     (942,599)
                                                                                             ---------------

Investments in Local Limited Partnerships before
   adjustments                                                                                    19,762,829

Excess of investment costs over the underlying net
   assets acquired:

   Acquisition fees and expenses                                                                   1,252,338

   Accumulated amortization of acquisition fees and expenses                                        (210,614)
                                                                                             ---------------

Investments in Local Limited Partnerships before reserve for valuation                            20,804,553

Reserve for valuation of investment in Local Limited Partnership                                     (52,940)
                                                                                             ---------------
Investments in Local Limited Partnerships                                                    $    20,751,613
                                                                                             ===============
</TABLE>

The Fund's  share of the net losses of the Local  Limited  Partnerships  for the
nine months  ended  December 31, 2000  totaled  $2,259,545.  For the nine months
ended  December  31,  2000,  the Fund has not  recognized  $546,986 of equity in
losses relating to two Local Limited  Partnerships  where  cumulative  equity in
losses  and  distributions  exceeded  total  investment  in  the  Local  Limited
Partnerships.


<PAGE>
                      BOSTON FINANCIAL TAX CREDIT FUND VII
                             (A Limited Partnership)

                    NOTES TO FINANCIAL STATEMENTS (continued)
                                   (Unaudited)

2.    Commitments

At  December  31,  2000,   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
properties'  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 their  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  December  31,  2000,  the Fund had cash  and cash  equivalents  of  $480,843
compared with $307,807 at March 31, 2000.  This increase is due to proceeds from
sales and maturities of marketable  securities and cash  distributions  received
from  Local  Limited  Partnerships.  These  increases  are  partially  offset by
purchases of marketable securities and advances to Local Limited Partnership.

As of December 31, 2000,  approximately $2,153,000 of cash, cash equivalents and
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  December  31,  2000,   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
properties'  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.

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, 2000, 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 nine months ended December 31, 2000.


<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 and nine months ended  December
31, 2000  resulted in a net loss of $685,209 and  $1,980,575,  respectively,  as
compared to a net loss of  $1,117,683  and  $2,288,898  for the same  periods in
1999. The decrease in net loss is primary attributable to decreases in equity in
losses of Local Limited  Partnerships,  and general and administrative  expenses
and an increase in  provision  for  valuation  of  investment  in Local  Limited
Partnership.  Equity in losses of Local Limited Partnerships decreased primarily
due to an increase in unrecognized  losses for Local Limited  Partnerships whose
carrying  values  have been  reduced  to  zero.  The  decrease  in  general  and
administrative expense is due to a decrease in operational and administrative
expense due to a change in the method used to  allocate operational and
administrative expense and lower salary reimbursements paid to an  affiliate of
the  General Partner.  Provision for valuation of investment in Local Limited
Partnership was incurred during the three and nine months ended December 31,
2000 due to the reserve of advances to a Local Limited Partnership.

Property Discussions

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 of the operating difficulties,  the
Local  General  Partner  has been  negotiating  with the  lender to  reduce  the
interest rate on the current mortgage.  However,  the negotiations slowed during
the third quarter due to changes in the Lenders personnel.  The Managing General
Partner  performed  a site visit in April and found the  property  to be in good
physical  condition.  The Managing General Partner will continue to work closely
with the Local General Partner and new management agent to monitor operations.

As previously  reported,  Los Claveles II (Trujillo Alto, Puerto Rico) continues
to perform poorly. The property requires significant capital for maintenance and
repair and also faces crime and security  issues and 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  makes 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.
The Managing  General  Partner will continue to closely  monitor the  property's
operations.

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, site management turnover, as well
as a fire in one of the  buildings  during  the  fourth  quarter  of  1999.  The
building  that  experienced  the fire was ready for  occupancy as of March 2000.
Also during  March  2000,  a new  on-site  manager was hired to further  enhance
tenant  marketing  efforts,  which include  direct mailing and posting fliers on
cars,  as well as  enhanced  interaction  with the local  housing  authority  to
attract  more  tenants with Section 8  certificates.  These  efforts  positively
impacted  occupancy as the property was 84% occupied at September 30, 2000,  its
highest level since 1996. However,  during the fourth quarter occupancy declined
and was 73% at December 31, 2000. The Managing  General Partner will continue to
work  closely with the  management  agent and Local  General  Partner to monitor
property operations and continued marketing efforts.

The  Fund  has  implemented  policies  and  practices  for  assessing  potential
impairment of its investments in Local Limited Partnerships. The investments are
analyzed by real estate experts 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 there is a significant  impairment in
carrying  value,  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 December 31, 2000.


<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, 2001                BOSTON FINANCIAL TAX CREDIT FUND VII,
                                          A LIMITED PARTNERSHIP

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




                                          /s/Jenny Netzer
                                          -------------------------------------
                                          Jenny Netzer
                                          Managing Director and President


<PAGE>