November 13, 1996




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


Re:     Boston Financial Tax Credit Fund VII, A Limited Partnership
        Report on Form 10-Q Edgar for Quarter Ended September 30, 1996
        File No. 0-24584


Dear Sir/Madam:

Pursuant to the  requirements of Rule 901(d) of Regulation S-T,  enclosed is one
copy of subject report.


Very truly yours,





/s/Marie D. Reynolds
Marie D. Reynolds
Assistant Controller



TC7-10Q2.DOC



<PAGE>


                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                    FORM 10-Q

Quarterly Report Under Section 13 or 15(d)of the SecuritiesExchange Act of 1934

(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, 1996

                                       OR

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


For the transition period from                          to

For Quarter Ended         September 30, 1996    Commission file number  0-24584
                  -----------------------------------         
           Boston Financial Tax Credit Fund VII, A Limited Partnership
             (Exact name of registrant as specified in its charter)


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


   101 Arch Street, Boston, Massachusetts                      02110-1106

  (Address of principal executive offices)                     (Zip Code)


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

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


<PAGE>



           BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED PARTNERSHIP


                                TABLE OF CONTENTS




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

Item 1.   Financial Statements

          Balance Sheets  - September 30, 1996 (Unaudited)
               and March 31, 1996                                         1

          Statements of Operations (Unaudited) - For the Three and
               Six Months Ended September 30, 1996 and 1995               2

          Statement of Changes in Partners' Equity (Deficiency)
               (Unaudited) - For the Six Months Ended September 30, 1996  3

          Statements of Cash Flows (Unaudited) - For the Six
               Months Ended September 30, 1996 and 1995                   4

          Notes to Financial Statements (Unaudited)                       5

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

PART II - OTHER INFORMATION

Items 1-6                                                               10

SIGNATURE                                                               11



<PAGE>





           BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED PARTNERSHIP

                                                         
                                 BALANCE SHEETS
<TABLE>
<CAPTION>

                                                                    September 30,             March 31,
                                                                         1996                   1996
                                                                      (Unaudited)
<S>                                                                   <C>                  <C>

Assets
Current assets:
     Cash and cash equivalents                                        $    753,739          $    334,845
     Other current assets                                                   25,791                29,943
                                                                      ------------          ------------
          Total current assets                                             779,530               364,788


Investments in Local Limited Partnerships (Note 2)                      33,466,652            34,328,400
Restricted cash                                                            232,951               227,320
Marketable securities, at fair value  (Note 1)                           2,905,474             3,855,342
Organization costs, net of accumulated
   amortization of $35,833 and
   $30,833, respectively                                                    14,167                19,167
                                                                      ------------          ------------
          Total Assets                                                $ 37,398,774          $ 38,795,017
                                                                      ============          ============


Liabilities and Partners' Equity
Current liabilities:
     Accounts payable to affiliates                                   $    210,753          $    212,975
     Accounts payable and accrued expenses                                  36,374                66,417
                                                                      ------------          ------------
          Total current liabilities                                        247,127               279,392
                                                                      ------------          ------------

Commitments (Note 3)

General, Initial and Investor Limited Partners' Equity                  37,186,448            38,536,506
Net unrealized losses on marketable securities                             (34,801)              (20,881)
                                                                      ------------          ------------
          Total Partners' Equity                                        37,151,647            38,515,625
                                                                      ------------          ------------
          Total Liabilities and Partners' Equity                      $ 37,398,774          $ 38,795,017
                                                                      ============          ============
</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, 1996 and 1995
                                   (Unaudited)
<TABLE>
<CAPTION>

                                              Three Months Ended                          Six Months Ended
                                      September 30,         September 30,        September 30,        September 30,
                                           1996                 1995                  1996                1995
                                     -----------------     ----------------     -----------------    ----------------
<S>                                  <C>                  <C>                   <C>                  <C>

Revenue:
   Investment                       $       61,366        $      75,473         $     103,118       $       85,751
   Other                                       250               17,664                66,833               43,989
                                    --------------        -------------         -------------       --------------
       Total Revenue                        61,616               93,137               169,951              129,740
                                    --------------        -------------         -------------       --------------

Expenses:
   Asset management fee,
    related party                           68,826               67,146               137,652              134,292
   General and administrative
    (includes reimbursements
    to an affiliate in the amounts
    of $61,782 and $43,332 in
    1996 and 1995, respectively)            53,981               60,362               119,859              120,101
   Amortization                             11,458               11,038                22,915               20,237
                                    --------------        -------------         -------------       --------------
       Total Expenses                      134,265              138,546               280,426              274,630
                                    --------------        -------------         -------------       --------------

Loss before equity in losses
    of Local Limited Partnerships          (72,649)             (45,409)             (110,475)            (144,890)

Equity in losses of
   Local Limited Partnerships             (644,393)            (588,370)           (1,239,583)          (1,257,435)
                                    --------------        -------------         -------------       --------------

Net Loss                            $     (717,042)       $    (633,779)        $  (1,350,058)      $   (1,402,325)
                                    ==============        =============         =============       ==============


Net Loss allocated:
   To General Partners              $       (7,171)       $      (6,338)        $     (13,501)      $      (14,023)
   To Limited Partners                    (709,871)            (627,441)           (1,336,557)          (1,388,302)
                                    --------------        -------------         -------------       --------------
                                    $     (717,042)       $    (633,779)        $  (1,350,058)      $   (1,402,325)
                                    ==============        =============         =============       ==============

Net Loss per Limited
   Partnership Unit
   (50,930 Units)                   $      (13.94)        $      (12.32)        $     (26.24)       $       (27.26)
                                    =============         =============         ============        ==============
The  accompanying  notes  are  an  integral part of these financial statements
</TABLE>

<PAGE>
          BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED PARTNERSHIP
              STATEMENT OF CHANGES IN PARTNERS' EQUITY (DEFICIENCY)
                                   (Unaudited)
                   For the Six Months Ended September 30, 1996
<TABLE>
<CAPTION>

                                                   Initial         Investor             Net
                                   General         Limited          Limited         Unrealized
                                   Partners       Partners         Partners           Losses              Total
<S>                              <C>               <C>          <C>                 <C>                <C>  

Balance at March 31, 1996        $  (58,956)       $ 5,000      $ 38,590,462        $   (20,881)       $ 38,515,625

Net change in net unrealized
   losses on marketable securities
   available for sale                     -              -                 -            (13,920)            (13,920)

Net Loss                            (13,501)             -        (1,336,557)                 -          (1,350,058)
                                 ----------        -------      ------------        -----------        ------------

Balance at September 30, 1996    $  (72,457)       $ 5,000      $ 37,253,905        $   (34,801)       $ 37,151,647
                                 ==========        =======      ============        ===========        ============
The  accompanying  notes  are  an  integral part of these financial statements

</TABLE>


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

                            STATEMENTS OF CASH FLOWS
                                   (Unaudited)
              For the Six Months Ended September 30, 1996 and 1995
<TABLE>
<CAPTION>

                                                                                 1996                  1995
                                                                            -------------         ---------
<S>                                                                         <C>    <C>

Net cash used for operating activities                                      $   (173,078)         $    (57,174)
                                                                            ------------          ------------

Cash flows from investing activities:
    Purchases of marketable securities                                          (498,336)           (9,234,778)
    Proceeds from sales and maturities
       of marketable securities                                                1,494,706             9,717,406
    Investments in Local Limited Partnerships                                   (525,824)           (2,194,019)
    Cash distributions received from
       Local Limited Partnerships                                                127,057                73,148
    Payment of acquisition fees and expenses                                           -               (47,407)
    Restricted cash                                                               (5,631)                    -
                                                                            ------------          ------------
Net cash provided by (used for) investing activities                             591,972            (1,685,650)
                                                                            ------------          ------------

Cash flows from financing activities:
    Payment of organizational and offering expenses                                    -                (2,389)
                                                                            ------------          ------------
Net cash used for financing activities                                                 -                (2,389)
                                                                            ------------          ------------

Net increase (decrease) in cash and cash equivalents                             418,894            (1,745,213)

Cash and cash equivalents, beginning of period                                   334,845             1,768,604
                                                                            ------------          ------------

Cash and cash equivalents, end of period                                    $    753,739          $     23,391
                                                                            ============          ============
The  accompanying  notes  are  an  integral part of these financial statements
</TABLE>





<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 10-K for the year ended
March 31, 1996. 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 periods may not be indicative of the results to be
expected for the year. Certain  reclassifications have been made to prior period
financial statements to conform to current period classification.

1.   Marketable Securities

A summary of Marketable Securities is as follows:
<TABLE>
<CAPTION>

                                                                 Gross           Gross
                                                              Unrealized     Unrealized
                                               Cost              Gains          Losses       Fair Value
<S>                                        <C>                <C>             <C>            <C>

Debt securities issued by
   the US Treasury                         $  1,729,758        $      -       $ (12,784)     $ 1,716,974

Mortgage backed securities                    1,210,517               -         (22,017)       1,188,500
                                           ------------        --------       ---------      -----------

Marketable securities at
   September 30, 1996                      $  2,940,275        $      -       $ (34,801)     $ 2,905,474
                                           ============        ========       =========      ===========

Debt securities issued by
   the US Treasury and other
   US government corporations
   and agencies                            $  2,563,670        $      -       $ (10,111)     $ 2,553,559

Mortgage backed securities                    1,312,553               -         (10,770)       1,301,783
                                           ------------        --------       ---------      -----------

Marketable securities at
   March 31, 1996                          $  3,876,223        $      -       $ (20,881)     $ 3,855,342
                                           ============        ========       =========      ===========
</TABLE>

The contractual maturities at September 30, 1996 are as follows:
<TABLE>
<CAPTION>


                                                                                 Cost        Fair Value
<S>                                                                         <C>             <C>

Due in one year or less                                                     $    614,789    $    611,678
Due in one to five years                                                       1,114,968       1,105,296
Mortgage backed securities                                                     1,210,517       1,188,500
                                                                            ------------    ------------
                                                                            $  2,940,274    $  2,905,474
                                                                            ============    ============
</TABLE>

Actual maturities may differ from contractual  maturities because some borrowers
have the right to call or prepay obligations. Proceeds from sales and maturities
were approximately  $1,495,000 and $9,717,000 for the six months ended September
30, 1996 and 1995,  respectively.  Included in investment income are gross gains
of  $66,706  and  $28,628  and gross  losses of $6,284  and  $93,792  which were
realized on these sales during the six months ended September 30, 1996 and 1995,
respectively.


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

                    NOTES TO FINANCIAL STATEMENTS (continued)
                                   (Unaudited)

2.   Investments in Local Limited Partnerships

The Fund has acquired interests in nineteen Local Limited Partnerships which own
and operate  multi-family  housing  complexes.  The Fund,  as  Investor  Limited
Partner,  pursuant to the various  Local  Limited  Partnership  Agreements,  has
generally  acquired a 99% interest in the profits,  losses, tax credits and cash
flows from operations of each of the Local Limited Partnerships.  In the case of
Springwood,  the Fund has a 19.80%  interest  and an  affiliate  of the  General
Partner owns the remaining 79.2% Limited Partnership interest. 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, 1996 (unaudited):

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

Capital Contributions paid to Local Limited Partnerships
   and purchase price paid to withdrawing partners of
   Local Limited Partnerships                                                                      $  39,052,558

Cumulative equity in losses of Local Limited Partnerships                                             (6,537,811)

Cash distributions received from Local Limited Partnerships                                             (227,205)
                                                                                                   -------------

Investments in Local Limited Partnerships before adjustments                                          32,287,542

Excess of investment cost over the underlying net assets acquired:

   Acquisition fees and expenses                                                                       1,252,338

   Accumulated amortization of acquisition fees and expenses                                             (73,228)
                                                                                                   -------------

Investments in Local Limited Partnerships                                                          $  33,466,652
                                                                                                   =============
</TABLE>

Summarized  financial  information from the combined financial statements of the
nineteen  Local  Limited  Partnerships  in which  the Fund  has  invested  is as
follows:

Summarized Balance Sheets - as of June 30, 1996 (Unaudited)
<TABLE>
<CAPTION>

<S>                                                                                                <C>

Assets:
   Investment property, net                                                                        $ 101,875,478
   Current assets                                                                                      4,983,325
   Other assets                                                                                        3,610,334
                                                                                                   -------------
         Total Assets                                                                              $ 110,469,137
                                                                                                   =============

Liabilities and Partners' Equity:
   Long-term debt                                                                                  $  58,558,706
   Current liabilities (includes current portion of long term debt)                                    4,708,293
   Other debt                                                                                          4,172,856
                                                                                                   -------------
         Total Liabilities                                                                            67,439,855

Partners' Equity                                                                                      43,029,282
                                                                                                   -------------
         Total Liabilities and Partners' Equity                                                    $ 110,469,137
                                                                                                   =============

</TABLE>

<PAGE>

          BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED PARTNERSHIP

                    NOTES TO FINANCIAL STATEMENTS (continued)
                                   (Unaudited)

2.   Investments in Local Limited Partnership (continued)

Summarized  Statements  of  Operations  for the six months  ended June 30,  1996
(unaudited):
<TABLE>
<CAPTION>
<S>                                                                                                 <C>   

Rental and other income                                                                             $  6,022,197
                                                                                                    ------------

Expenses:
   Operating                                                                                           2,826,328
   Interest                                                                                            2,448,520
   Depreciation and amortization                                                                       2,042,992
                                                                                                    ------------
       Total Expenses                                                                                  7,317,840

Net Loss                                                                                            $ (1,295,643)
                                                                                                    ============

Fund's share of Net Loss                                                                            $ (1,239,583)
                                                                                                    ============
Other Partners' share of Net Loss                                                                   $    (56,060)
                                                                                                    ============

</TABLE>

3.   Commitments

At  September  30,  1996,   the  Fund  has  committed  to  make  future  capital
contributions  and pay future purchase price  installments on its investments in
Local  Limited  Partnerships.  These  future  payments are  contingent  upon the
achievement  of certain  criteria as set forth in the Local Limited  Partnership
Agreements and total approximately $911,000.


4.   Transactions with Affiliates

Lansing Management Company ("LMC"), an affiliate of the Managing General Partner
is the management agent for Twin Oaks Meadows. The management fee charged to the
property is equal to 5% of the property's gross revenues.  Included in operating
expenses  of  the  summarized  income  statement  in  Note  2 to  the  financial
statements  is $11,184 of fees  earned by LMC for the six months  ended June 30,
1996.


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

                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Liquidity and Capital Resources

At September  30, 1996,  the Fund had cash and cash  equivalents  of $753,739 as
compared with $334,845 at March 31, 1996. The increase is primarily attributable
to proceeds  from sales and  maturities  of  marketable  securities in excess of
purchases of marketable  securities and cash  distributions  received from Local
Limited  Partnerships.  These  increases are partially  offset by investments in
Local Limited Partnerships and cash used for operating activities.

As of September 30, 1996 approximately  $2,509,000 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  September  30,  1996,   the  Fund  has  committed  to  make  future  capital
contributions  and pay future purchase price  installments on its investments in
Local  Limited  Partnerships.  These  future  payments are  contingent  upon the
achievement  of certain  criteria as set forth in the Local Limited  Partnership
Agreements and total approximately $911,000.

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, 1996, 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  interest 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, 1996.


Results of Operations

The Fund's  results of operations  for the three and six months ended  September
30, 1996  resulted in net losses of $717,042 and  $1,350,058  as compared to net
losses of $633,779 and  $1,402,325 for the same periods in 1995. The increase in
net loss for the three months ended  September  30, 1996 as compared to the same
period in 1995 is the result of a decrease in  revenue.  The  improved  net loss
position  for the six months  ended  September  30, 1996 as compared to the same
period in 1995 is primarily attributable to an increase in revenue.

The  decrease  in revenue  for the three  months  ended  September  30,  1996 as
compared  to the same  period in 1995 is a result of a decrease in the amount of
interest  earned on  securities,  because as capital  contributions  are paid to
Local Limited Partnerships the fund has less money to invest.

The increase in revenue for the six months ended  September 30, 1996 as compared
to the same period in 1995 is a result of  significantly  lower  capital  losses
realized on sales and maturities of marketable  securities during the six months
ended September 30, 1996.


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


                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Property Discussions

As previously reported,  one of the local limited partnerships in which the Fund
has invested,  Los Claveles,  experienced operating  difficulties as a result of
widespread water infiltration that caused subsidy payments to be suspended on 85
of the 180 units until the repairs were  completed.  The suspension of Section 8
payments has resulted in large  fluctuations  in monthly  revenue and caused the
property  to fall  substantially  behind in its debt  service and default on its
mortgage.  The  Partnership  cured the default by  advancing  $208,000  from the
developer's  escrow.  Nevertheless,  the property  continues to suffer from poor
management,  delayed subsidy payments and increasing  capital repair issues. The
Managing  General  Partner  continues  to  actively  negotiate  with the general
partners,  lender and local  housing  authority to replace  both the  management
agent and the Local General Partners. We have reached a tentative agreement with
the  lender  to  provide  debt  service  relief in order to  stabilize  property
operations.  Resolving the property's problems will likely require advances from
property and Partnership  reserves.  In the meantime,  the management  agent has
applied for a rent increase which is pending HUD approval.




<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, 1996.



<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 13, 1996                BOSTON FINANCIAL TAX CREDIT FUND VII,
                                         A LIMITED PARTNERSHIP


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




                                          /s/Georgia Murray
                                          Georgia Murray
                                          A Managing Director, Treasurer and
                                          Chief Financial Officer








<PAGE>