November  14     , 2000





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 September 30, 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-Q2.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                   September 30, 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

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

Item 1.   Financial Statements

          Balance Sheets - September 30, 2000 (Unaudited)
              and March 31, 2000                                             1

          Statements of Operations (Unaudited) -
               For the Three and Six Months Ended
               September 30, 2000 and 1999                                   2

          Statement of Changes in Partners' Equity (Deficiency)
               (Unaudited) - For the Six Months Ended September 30, 2000     3

          Statements of Cash Flows (Unaudited) -
               For the Six Months Ended September 30, 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


<PAGE>


                       BOSTON FINANCIAL TAX CREDIT FUND VII

                             (A Limited Partnership)

                                 BALANCE SHEETS
<TABLE>
<CAPTION>

                                                                                September 30,         March 31,
                                                                                    2000                2000
                                                                                -------------      ---------
                                                                                  (Unaudited)
Assets

<S>                                                                             <C>                <C>
Cash and cash equivalents                                                       $     275,443      $     307,807
Marketable securities, at fair value                                                2,573,557          2,491,752
Restricted cash                                                                       288,971            280,053
Investments in Local Limited Partnerships, net (Note 1)                            21,383,047         22,640,861
Other assets                                                                           31,396             31,930
                                                                                -------------      -------------
     Total Assets                                                               $  24,552,414      $  25,752,403
                                                                                =============      =============

Liabilities and Partners' Equity

Accounts payable to affiliates                                                  $     244,014      $     170,084
Accounts payable and accrued expenses                                                  40,232             36,491
                                                                                -------------      -------------
     Total Liabilities                                                                284,246            206,575
                                                                                -------------      -------------

Commitments (Note 2)

General, Initial and Investor Limited Partners' Equity                             24,284,967         25,580,333
Net unrealized losses on marketable securities                                        (16,799)           (34,505)
                                                                                -------------      -------------
     Total Partners' Equity                                                        24,268,168         25,545,828
                                                                                -------------      -------------
     Total Liabilities and Partners' Equity                                     $  24,552,414      $  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 Six Months Ended September 30, 2000 and 1999
                                   (Unaudited)
<TABLE>
<CAPTION>

                                             Three Months Ended                        Six Months Ended
                                      September 30,        September 30,         September 30,    September 30,
                                          2000                 1999                  2000             1999
                                      -------------        -------------         -------------     ----------

Revenue:
<S>                                   <C>                  <C>                   <C>               <C>
   Investment                         $     40,171         $     42,222          $      80,530     $      86,217
   Other                                     8,896               14,047                 20,022            64,683
                                      ------------         ------------          -------------     -------------
       Total Revenue                        49,067               56,269                100,552           150,900
                                      ------------         ------------          -------------     -------------

Expenses:
   General and administrative
     (includes reimbursements
     to an affiliate in the amounts
     of $65,012 and $43,791 in 2000
     and 1999, respectively)                50,607               35,741                112,256            87,401
   Asset management fee,
     related party                          75,499               73,888                150,998           147,776
   Provision for valuation of
     investment in Local

     Limited Partnership                    35,551                    -                 35,551                 -
   Amortization                              8,045                8,046                 16,091            16,092
                                      ------------         ------------          -------------     -------------
       Total Expenses                      169,702              117,675                314,896           251,269
                                      ------------         ------------          -------------     -------------

Loss before equity in losses
    of Local Limited Partnerships         (120,635)             (61,406)              (214,344)         (100,369)

Equity in losses of
   Local Limited Partnerships

   (Note 1)                               (562,681)            (554,742)            (1,081,022)       (1,070,846)
                                      ------------         ------------          -------------     -------------

Net Loss                              $   (683,316)        $   (616,148)         $  (1,295,366)    $  (1,171,215)
                                      ============         ============          =============     =============

Net Loss allocated:
   To General Partners                $     (6,833)        $     (6,161)         $     (12,954)    $     (11,712)
   To Limited Partners                    (676,483)            (609,987)            (1,282,412)       (1,159,503)
                                      ------------         ------------          -------------     -------------
                                      $   (683,316)        $   (616,148)         $  (1,295,366)    $  (1,171,215)
                                      ============         ============          =============     =============
Net Loss per Limited
   Partnership Unit

   (50,930 Units)                     $     (13.28)        $     (11.98)         $      (25.18)    $     (22.77)
                                      ============         ============          =============     ============

</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 Six Months Ended September 30, 2000

                                   (Unaudited)

<TABLE>
<CAPTION>
                                                       Initial       Investor           Net
                                       General         Limited        Limited       Unrealized
                                       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                         -            -                 -         17,706           17,706
   Net Loss                               (12,954)           -        (1,282,412)             -       (1,295,366)
                                      -----------    ---------    --------------    -----------    -------------
Comprehensive Income (Loss)               (12,954)           -        (1,282,412)        17,706       (1,277,660)
                                      -----------    ---------    --------------    -----------    -------------

Balance at September 30, 2000         $  (201,472)   $   5,000    $   24,481,439    $   (16,799)   $  24,268,168
                                      ===========    =========    ==============    ===========    =============
</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 Six Months Ended September 30, 2000 and 1999

                                   (Unaudited)
<TABLE>
<CAPTION>

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

<S>                                                                               <C>              <C>
Net cash used for operating activities                                            $     (93,463)   $    (139,724)
                                                                                  -------------    -------------

Cash flows from investing activities:

   Purchases of marketable securities                                                  (223,286)        (399,725)
   Proceeds from sales and maturities of
     marketable securities                                                              159,235          659,720
   Advance to Local Limited Partnership                                                 (35,551)               -
   Investments in Local Limited Partnerships                                                  -          (25,000)

   Cash distributions received from Local

     Limited Partnerships                                                               160,701           87,378
                                                                                  -------------    -------------

Net cash provided by investing activities                                                61,099          322,373
                                                                                  -------------    -------------


Net increase (decrease) in cash and cash equivalents                                    (32,364)         182,649

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


Cash and cash equivalents, ending                                                 $     275,443    $     296,996
                                                                                  =============    =============

</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 June 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
September 30, 2000:

Capital  contributions  and  advances  paid to
   Local  Limited  Partnerships  and purchase price
   paid to withdrawing partners of Local Limited

   Partnerships                                                 $    39,574,703

Cumulative equity in losses of Local Limited
   Partnerships (excluding cumulative unrecognized losses
   of $1,712,345)                                                   (18,270,127)

Cash distributions received from Local Limited

   Partnerships                                                        (934,578)
                                                                ---------------

Investments in Local Limited Partnerships before

   adjustments                                                       20,369,998
Excess of investment costs over the underlying net
   assets acquired:

   Acquisition fees and expenses                                      1,252,338

   Accumulated amortization of acquisition fees and expenses           (203,738)
                                                                ---------------

Investments in Local Limited Partnerships before
   reserve for valuation                                             21,418,598

Reserve for valuation of investment in Local Limited Partnership        (35,551)
                                                                ---------------
Investments in Local Limited Partnerships                       $    21,383,047
                                                                ===============

The Fund's share of the net losses of the Local Limited Partnerships for the six
months ended  September  30, 2000 totaled  $1,332,964.  For the six months ended
September  30, 2000,  the Fund has not  recognized  $251,942 of equity in losses
relating to one Local  Limited  Partnership  where  cumulative  equity in losses
exceeded its total investment in the Local Limited Partnership.


<PAGE>

                      BOSTON FINANCIAL TAX CREDIT FUND VII
                             (A Limited Partnership)

                    NOTES TO FINANCIAL STATEMENTS (continued)

                                   (Unaudited)

2.    Commitments

At  September  30,  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  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  September  30,  2000,  the Fund had cash and cash  equivalents  of  $275,443
compared with  $307,807 at March 31, 2000.  This decrease is due to purchases of
marketable securities,  advances to Local Limited Partnerships and cash used for
operations.  These  decreases  are  partially  offset by proceeds from sales and
maturities of marketable  securities and cash distributions  received from Local
Limited Partnerships.

As of September 30, 2000,  approximately $2,221,000 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  September  30,  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 September 30, 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 six months ended September 30, 2000.

Results of Operations

The Fund's  results of operations  for the three and six months ended  September
30, 2000  resulted in a net loss of $683,316 and  $1,295,366,  respectively,  as
compared to a net loss of $616,148 and  $1,171,215 for the same periods in 1999.
The  increase  in net loss is primary  attributable  to  increases  in equity in
losses of Local Limited Partnerships,  general and administrative  expenses, and
provision  for  valuation of  investment  in Local  Limited  Partnerships  and a
decrease in other revenue.


<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

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 because the individual with whom the Local General Partner had
been negotiating resigned his position. The Managing General Partner performed a
site visit in April and found the  property  to be in good  physical  condition.
Occupancy  improved from 83% at June 30, 2000 to 93% at September 30, 2000.  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.  As of  September  30,  2000,
occupancy was 45%.  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  back on line 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.  The  Managing  General  Partner  will  continue to work  closely with the
management  agent and Local General Partner to monitor  property  operations and
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 September 30, 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:  November  14    , 2000         BOSTON FINANCIAL TAX CREDIT FUND VII,
                                       A LIMITED PARTNERSHIP

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




                                       /s/Randolph G. Hawthorne
                                       ----------------------------------------
                                       Randolph G. Hawthorne
                                       Managing Director, Vice President and
                                       Chief Operating Officer


<PAGE>