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                June 30, 2008
                                       -------------------------- -----

                                                         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
  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___ .

Indicate by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer, or a smaller reporting company. See
the definitions of "large accelerated filer," "accelerated filer" and "smaller
reporting company" in Rule 12b-2 of the Exchange Act.

 Large accelerated filer ___                      Accelerated Filer  ___
 Non-accelerated filer   ___ (Do not check if a   Smaller reporting company _X_
                      smaller reporting company)


Indicate by check mark whether the registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act.)
                                                             .
                                  Yes____ No _X_.



<PAGE>


           BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED PARTNERSHIP
                                TABLE OF CONTENTS


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


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

Item 1.   Financial Statements

          Balance Sheet (Unaudited) - June 30, 2008                                         1

          Statements of Operations (Unaudited) -
               For the Three Months Ended June 30, 2008 and 2007                            2

          Statement of Changes in Partners' Equity
               (Unaudited) - For the Three Months Ended June 30, 2008                       3

          Statements of Cash Flows (Unaudited) -
               For the Three Months Ended June 30, 2008 and 2007                            4

          Notes to the Financial Statements (Unaudited)                                     5

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

Item 3.   Quantitative and Qualitative Disclosures About Market Risk                       14

Item 4.   Controls and Procedures                                                          14

PART II - OTHER INFORMATION

Items 1-6                                                                                  15

SIGNATURE                                                                                  16

CERTIFICATIONS                                                                             17
</TABLE>

<PAGE>


                      BOSTON FINANCIAL TAX CREDIT FUND VII,
                                A LIMITED PARTNERSHIP

                                  BALANCE SHEET
                                  June 30, 2008
                                   (Unaudited)


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


Assets

Cash and cash equivalents                                                                         $     1,959,793
Restricted cash                                                                                           280,164
Investments in Local Limited Partnerships (Note 1)                                                      1,722,439
Other Assets                                                                                                  561
                                                                                                  ---------------
     Total Assets                                                                                 $     3,962,957
                                                                                                  ===============

Liabilities and Partners' Equity

Due to affiliates                                                                                 $       530,284
Accrued expenses                                                                                           70,194
                                                                                                  ---------------
     Total Liabilities                                                                                    600,478
                                                                                                  ---------------

General, Initial and Investor Limited Partners' Equity                                                  3,362,479
                                                                                                  ---------------
     Total Liabilities and Partners' Equity                                                       $     3,962,957
                                                                                                  ===============


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

</TABLE>


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

                            STATEMENTS OF OPERATIONS
                For the Three Months Ended June 30, 2008 and 2007
                                   (Unaudited)

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


                                                                                 2008                     2007
                                                                           ----------------         ---------------
Revenue:
   Investment                                                              $          5,464        $            883
                                                                           ----------------        ----------------
     Total Revenue                                                                    5,464                     883
                                                                           ----------------        ----------------

Expense:
   Asset management fees, affiliate                                                  94,284                  90,570
   Provision for valuation allowance on advances to
     Local Limited Partnerships                                                      48,404                       -
   General and administrative (includes reimbursements to
     an affiliate in the amount of  $30,995 and  $37,581
     in 2008 and 2007, respectively)                                                 64,142                  72,604
   Amortization                                                                       3,711                   4,108
                                                                           ----------------        ----------------
     Total Expense                                                                  210,541                 167,282
                                                                           ----------------        ----------------

Loss before equity in losses of Local Limited Partnerships                         (205,077)               (166,399)

Equity in losses of Local Limited Partnerships (Note 1)                            (103,719)               (163,186)

Gain on disposal of investments in Local Limited Partnerships                     1,310,825                       -
                                                                           ----------------        ----------------

Net Income (Loss)                                                          $      1,002,029        $       (329,585)
                                                                           ================        ================

Net Income (Loss) allocated:
   General Partners                                                        $         10,020        $         (3,296)
   Limited Partners                                                                 992,009                (326,289)
                                                                           ----------------        ----------------
                                                                           $      1,002,029        $       (329,585)
                                                                           ================        ================
Net Income (Loss) per Limited Partner Unit
   (50,930 Units)                                                          $          19.48        $          (6.41)
                                                                           ================        ================
</TABLE>


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


<PAGE>

               BOSTON FINANCIAL TAX CREDIT FUND VII,
                       A LIMITED PARTNERSHIP

                STATEMENT OF CHANGES IN PARTNERS' EQUITY
              For the Three Months Ended June 30, 2008
                          (Unaudited)




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


                                                               Initial           Investor
                                              General          Limited           Limited
                                              Partners         Partner           Partner             Total

    Balance at March 31, 2008               $    23,604     $     5,000       $    2,331,846     $   2,360,450

    Net Income                                   10,020               -              992,009         1,002,029
                                            -----------     -----------       --------------      ------------

    Balance at June 30, 2008                $    33,624     $     5,000       $    3,323,855     $  3,362,479
                                            ===========     ===========       ==============     ============


</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 Three Months Ended June 30, 2008 and 2007
                            (Unaudited)



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


                                                                              2008                  2007
                                                                          -------------         -------------

Net cash provided by (used for) operating activities                      $    (128,415)         $     109,986

Net cash provided by investing activities                                     1,474,591                117,806
                                                                          -------------          -------------

Net increase in cash and cash equivalents                                     1,346,176                227,792

Cash and cash equivalents, beginning                                            613,617                557,329
                                                                          -------------          -------------

Cash and cash equivalents, ending                                         $   1,959,793          $     785,121
                                                                          =============          =============

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


</TABLE>

<PAGE>

                     BOSTON FINANCIAL TAX CREDIT FUND VII,
                       A LIMITED PARTNERSHIP

                    NOTES TO THE FINANCIAL STATEMENTS
                            (Unaudited)


The unaudited financial statements presented herein have been prepared in
accordance with the instructions to Form 10-Q and do not include all of the
information and note disclosures required by accounting principles generally
accepted in the United States of America. These statements should be read in
conjunction with the financial statements and notes thereto included with the
Fund's Form 10-KSB for the year ended March 31, 2008. In the opinion of the
Managing General Partner, these financial statements include all adjustments,
consisting only of normal recurring adjustments, necessary to present fairly the
Fund's financial position and results of operations. The results of operations
for the period may not be indicative of the results to be expected for the year.

The Managing General Partner of the Fund has elected to report results of the
Local Limited Partnerships in which the Fund has a limited partnership interest
on a 90 day lag basis because the Local Limited Partnerships report their
results on a calendar year basis. Accordingly, the financial information about
the Local Limited Partnerships that is included in the accompanying financial
statements is as of March 31, 2008 and 2007.

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

1.   Investments in Local Limited Partnerships

The Fund has limited partnership interests in fifteen Local Limited Partnerships
which were organized for the purpose of owning and operating multi-family
housing complexes, all of which are government-assisted. The Fund's ownership
interest in each Local Limited Partnership is 99%, with the exception of
Springwood Apartments which is 19.8%, Eden Park which is 67%, Fountain Lakes
which is 90%, and Twin Oaks Meadow which is 95.89%. The Fund may have negotiated
or may negotiate options with the Local General Partners to purchase or sell the
Fund's interests in the Local Limited Partnerships at the end of the Compliance
Period at nominal prices. In the event that Local Limited Partnerships are sold
to third parties, or upon dissolution of the Local Limited Partnerships,
proceeds will be distributed according to the terms of each Local Limited
Partnership agreement.
<TABLE>
<CAPTION>
<S>                                                                                                  <C>

The following is a summary of investments in Local Limited Partnerships at June
30, 2008:

Capital contributions and advances paid to Local Limited Partnerships and
purchase price paid to withdrawing partners of Local Limited Partnerships                           $    29,711,255

Cumulative equity in losses of Local Limited Partnerships (excluding cumulative
   unrecognized losses of $8,138,689)                                                                   (22,574,708)

Cumulative cash distributions received from Local Limited Partnerships                                   (2,185,438)
                                                                                                    ---------------

Investments in Local Limited Partnerships before adjustments                                              4,951,109

Excess investment costs over the underlying assets acquired:

   Acquisition fees and expenses                                                                            998,968

   Cumulative amortization of acquisition fees and expenses                                                (310,447)
                                                                                                    ---------------

Investments in Local Limited Partnerships before valuation allowance                                      5,639,630

Valuation allowance on investments in Local Limited Partnerships                                         (3,917,191)
                                                                                                    ---------------

Investments in Local Limited Partnerships                                                           $     1,722,439
                                                                                                    ===============

</TABLE>

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

                 NOTES TO THE FINANCIAL STATEMENTS (continued)
                           (Unaudited)


1. Investments in Local Limited Partnerships (continued)

The Fund's share of the net losses of the Local Limited Partnerships for the
three months ended June 30, 2008 is $462,243. For the three months ended June
30, 2008, the Fund has not recognized $358,524 of equity in losses relating to
certain Local Limited Partnerships in which cumulative equity in losses and
distributions exceeded its total investments in these Local Limited
Partnerships.

The Fund's interest in one of its investments in Local Limited Partnerships was
sold during the three months ended June 30, 2008, resulting in sale proceeds of
$1,508,167.

For the three months ended June 30, 2008, the Fund advanced $48,404 to one Local
Limited Partnership, all of which are reserved.

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

2.   New Accounting Principle

In September 2006, the Financial Accounting Standards Board ("FASB") issued SFAS
No. 157, "Fair Value Measurements" ("SFAS No. 157"), which provides enhanced
guidance for using fair value to measure assets and liabilities. SFAS No. 157
establishes a common definition of fair value, provides a framework for
measuring fair value under U.S. generally accepted accounting principles and
expands disclosure requirements about fair value measurements. SFAS No. 157 is
effective for financial statements issued in fiscal years beginning after
November 15, 2007, and interim periods within those fiscal years. In February
2008, the FASB issued FASB Staff Position 157-2, "Effective Date of FASB
Statement No. 157", which delays the effective date of SFAS No. 157 for all
nonfinancial assets and liabilities except those that are recognized or
disclosed at fair value in the financial statements on at least an annual basis
until November 15, 2008. The Fund adopted the provisions of SFAS No. 157 for
financial assets and liabilities recognized at fair value on a recurring basis
effective April 1, 2008. The partial adoption of SFAS No. 157 did not have a
material impact on the Fund's Financial Statements. The Fund does not expect the
adoption of the remaining provisions of SFAS No. 157 to have a material effect
on the Fund's financial position, operations or cash flow. This standard
requires that a Fund measure its financial assets and liabilities using inputs
from the three levels of the fair value hierarchy. A financial asset or
liability classification within the hierarchy is determined based on the lowest
level input that is significant to the fair value measurement. The three levels
are as follows:

     Level      1 - Inputs are unadjusted quoted prices in active markets for
                identical assets or liabilities that the Fund has the ability to
                access at the measurement date.

     Level      2 - Inputs include quoted prices for similar assets and
                liabilities in active markets, quoted prices for identical or
                similar assets or liabilities in markets that are not active,
                inputs other than quoted prices that are observable for the
                asset or liability and inputs that are derived principally from
                or corroborated by observable market data by correlation or
                other means (market corroborated inputs).

     Level      3 - Unobservable inputs reflect the Fund's judgments about the
                assumptions market participants would use in pricing the asset
                or liability since limited market data exists. The Fund develops
                these inputs based on the best information available, including
                the Fund's own data.

Financial assets accounted for at fair value on a recurring basis at June 30,
2008 include cash equivalents of $1,959,793 and restricted cash of $276,789.
<PAGE>

                  BOSTON FINANCIAL TAX CREDIT FUND VII,
                        A LIMITED PARTNERSHIP

                 NOTES TO THE FINANCIAL STATEMENTS (continued)
                           (Unaudited)



3.   Significant Subsidiaries

The following Local Limited Partnerships invested in by the Fund represent more
than 20% of the Fund's total assets or equity as of June 30, 2008 or 2007 or net
losses for the three months ended either June 30, 2008 or 2007. The following
financial information represents the performance of these Local Limited
Partnerships for the three months ended March 31, 2008 and 2007:
<TABLE>
<CAPTION>
<S>                                                                                <C>                     <C>

Fairhaven Manor                                                                    2008                     2007
---------------                                                               ---------------           --------------

Revenue                                                                           $ 85,900                 $ 85,356
Net Income (Loss)                                                                 $  5,800                 $ (2,293)



</TABLE>

<PAGE>

                BOSTON FINANCIAL TAX CREDIT FUND VII,
                     A LIMITED PARTNERSHIP

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


Certain matters discussed herein constitute forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995. The use of
words like "anticipate," "estimate," "intend," "project," "plan," "expect,"
"believe," "could" and similar expressions are intended to identify such
forward-looking statements. The Fund intends such forward-looking statements to
be covered by the safe harbor provisions for forward-looking statements and is
including this statement for purposes of complying with these safe harbor
provisions. Although the Fund believes the forward-looking statements are based
on reasonable assumptions, the Fund can give no assurance that its expectations
will be attained. Actual results and timing of certain events could differ
materially from those projected in or contemplated by the forward-looking
statements due to a number of factors, including, without limitation, general
economic and real estate conditions and interest rates.

Critical Accounting Policies

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

The Local Limited Partnerships in which the Fund invests are Variable Interest
Entities ("VIE"s). The Fund is involved with the VIEs as a non-controlling
limited partner equity holder. Because the Fund is not the primary beneficiary
of these VIEs, it accounts for its investments in the Local Limited Partnerships
using the equity method of accounting. As a result of its involvement with the
VIEs, the Fund's exposure to economic and financial statement losses is limited
to its investments in the VIEs ($1,722,439 at June 30, 2008). The Fund may be
subject to additional losses to the extent of any financial support that the
Fund voluntarily provides in the future. Under the equity method, the investment
is carried at cost, adjusted for the Fund's share of net income or loss and for
cash distributions from the Local Limited Partnerships; equity in income or loss
of the Local Limited Partnerships is included currently in the Fund's
operations. A liability is recorded for delayed equity capital contributions to
Local Limited Partnerships. Under the equity method, a Local Limited Partnership
investment will not be carried below zero. To the extent that equity in losses
are incurred when the Fund's carrying value of the respective Local Limited
Partnership has been reduced to a zero balance, the losses will be suspended and
offset against future income. Income from Local Limited Partnerships, where
cumulative equity in losses plus cumulative distributions have exceeded the
total investment in Local Limited Partnerships, will not be recorded until all
of the related unrecorded losses have been offset. To the extent that a Local
Limited Partnership with a carrying value of zero distributes cash to the Fund,
that distribution is recorded as income on the books of the Fund and is included
in "other revenue" in the accompanying financial statements.

The Fund has implemented policies and practices for assessing
other-than-temporary declines in values of its investments in Local Limited
Partnerships. Periodically, the carrying values of the investments are compared
to their respective fair values. If an other-than-temporary decline value
exists, a provision to reduce the asset to fair value, as calculated based
primarily on remaining tax benefits, will be recorded in the Fund's financial
statements. The tax benefits for each Local Limited Partnership consist of
future tax losses, tax credits and residual receipts at disposition. Included in
the residual receipts calculation is current net operating income capitalized at
the regional rate specific to each Local Limited Partnership. Generally, the
carrying values of most Local Limited partnerships will decline through losses
and distributions in amounts sufficient to prevent other-than-temporary
impairments. However, the Fund may record similar impairment losses in the
future if the expiration of tax credit outpaces losses and distributions from
any of the Local Limited Partnerships.


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

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


Liquidity and Capital Resources

At June 30, 2008, the Fund had cash and cash equivalents of $1,959,793 as
compared with $613,617 at March 31, 2008. This increase is primarily
attributable to cash distributions received from Local Limited Partnerships in
excess of cash used for operating activities, and proceeds received from the
sale of the Fund's interest in one Local Limited Partnership.

The Managing General Partner initially designated 5% of the Gross Proceeds as
Reserves, as defined in the Partnership Agreement. The Reserves were established
to be used for working capital of the Fund and contingencies related to the
ownership of Local Limited Partnership interests. The Managing General Partner
may increase or decrease such Reserves from time to time, as it deems
appropriate. At June 30, 2008, approximately $896,000 has been designated as
Reserves.

To date, professional fees relating to various Property issues totaling
approximately $125,000 have been paid from Reserves. In the event a Local
Limited Partnership encounters operating difficulties requiring additional
funds, the Fund's management might deem it in its best interest to voluntarily
provide such funds in order to protect its investment. As of June 30, 2008, the
Fund has advanced approximately $1,525,000 to Local Limited Partnerships to fund
operating deficits.

The Managing General Partner believes that the investment income earned on the
Reserves, along with cash distributions received from Local Limited
Partnerships, to the extent available, will be sufficient to fund the Fund's
ongoing operations. Reserves may be used to fund operating deficits, if the
Managing General Partner deems funding appropriate. If Reserves are not adequate
to cover the Fund's operations, the Fund will seek other financing sources
including, but not limited to, the deferral of Asset Management Fees paid to an
affiliate of the Managing General Partner or working with Local Limited
Partnerships to increase cash distributions.

Since the Fund invests as a limited partner, the Fund has no contractual duty to
provide additional funds to Local Limited Partnerships beyond its specified
investment. Thus, as of June 30, 2008, the Fund had no contractual or other
obligation to any Local Limited Partnership which had not been paid or provided
for except as disclosed above.

Cash Distributions

No cash distributions were made to Limited Partners during the three months
ended June 30, 2008.

Results of Operations

The Fund's results of operations for the three months ended June 30, 2008
resulted in a net income of $1,002,029 as compared to a net loss of $329,585 for
the same period in 2007. The decrease in net loss is primarily attributable to
an increase in gain on sale of investments, decrease in equity in losses,
a decrease in general and administrative expenses,and an increase in investment
income, offset by an increase in provision for valuation allowance on advances
to Local Limited Partnerships. The increase in gain on sale of investments in
Local  Limited Partnerships is due to the sale of one Local Limited Partnership
made during the current year. The increase in provision for valuation allowance
on advances to Local Limited Partnerships is the result of reserve for advances
made to one Local Limited Partnership in the current year.Equity in losses
decreased primarily due to an increase in unrecognized losses by the Fund of
Local Limited Partnerships with carrying values of zero. General and
administrative expenses decreased due to decreased legal expenses associated
with litigation from prior quarters. Investment income increased due to an
increase in returns on investments.


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

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


Portfolio Update

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

As of June 30, 2008, the Fund's investment portfolio consists of limited
partnership interests in fifteen Local Limited Partnerships, each of which owns
and operates a multi-family apartment complex and each of which has generated
Tax Credits. Since inception, the Fund has generated Tax Credits of
approximately $1,485 per Limited Partner Unit. In the aggregate, actual and
estimated Tax Credits enabled the Fund to meet the objective specified in the
Fund's prospectus.

Properties that receive low income housing Tax Credits must remain in compliance
with rent restriction and set-aside requirements for at least 15 calendar years
from the date the property is placed in service. Failure to do so would result
in the recapture of a portion of the property's Tax Credits. The Compliance
period for six of the fifteen Properties in which the Fund has an interest,
expired on December 31, 2007, while the remaining nine will expire between
December 31, 2008 and December 31, 2009. The Managing General Partner has
negotiated agreements that will ultimately dispose of the Fund's interest in
five Local Limited Partnerships. One of the Local Limited Partnerships in which
the Fund had an interest was disposed of during the three months ended June 30,
2008.

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

A majority of the Properties in which the Fund has an interest have stabilized
operations and operate above breakeven at March 31, 2008. Some Properties
generate cash flow deficits that the Local General Partners of those Properties
fund through project expense loans, subordinated loans or operating escrows.
However, some Properties have had persistent operating difficulties that could
either: (i) have an adverse impact on the Fund's liquidity; (ii) result in their
foreclosure; or (iii) result in the Managing General Partner deeming it
appropriate for the Fund to dispose of its interest in the Local Limited
Partnership prior to the expiration of the Compliance Period. Also, the Managing
General Partner, in the normal course of the Fund's business, may arrange for
the future disposition of its interest in certain Local Limited Partnerships.
The following Property discussions focus only on such Properties.


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

As previously reported, the Managing General Partner and Local General Partner
of St. Andrews Pointe, located in Columbia, South Carolina, were exploring an
exit strategy that would allow for the 2007 disposition of the Fund's interest
in the Local Limited Partnership that owns the Property. On May 31, 2007, the
Property was sold, effectively terminating the Fund's interest in the Local
Limited Partnership. The Fund did not receive any sales proceeds as the
outstanding debt on the property exceeded the sales price of the Property. The
Fund did receive $147,901 as a repayment of prior advances. This sale resulted
in a 2007 taxable loss of $41,056, or $0.81 per Unit. This sale occurred prior
to the expiration of the Property's compliance period, requiring the Fund to
post a surety bond to mitigate the potential risk of recapture. The buyer will
also be required to maintain the Property's tax credit compliance through
December 31, 2007, the expiration of the Property's compliance period. The Fund
no longer has an interest in this Local Limited Partnership.

As previously reported, the Managing General Partner estimated a late 2007
disposition of Oak Ridge, located in Macon, Georgia. On October 31, 2007, the
Fund disposed of its interest in the Local Limited Partnership that owned and
operated Oak Ridge. As previously indicated, the Fund did not receive any
proceeds from this transaction, as the outstanding debt on the property exceeded
the Property's sales price. This disposition resulted in a 2007 taxable loss of
$1,228,857, or $24.13 per Unit. The Fund no longer has an interest in this Local
Limited Partnership.

As previously reported, although operations at Palo Verde II, located in
Henderson, Nevada, remain strong, the former Local General Partner filed for
bankruptcy protection and refused to remit to the Fund its priority cash
distributions, representing a default under the terms of the Local Limited
Partnership Agreement. An affiliate of the Managing General Partner assumed the
Local General Partner interest in September 2001. Since the statute of
limitations on potential litigation involving one of the former Local General
Partners expired in 2005, the Managing General Partner expected a mid-2008
disposal of the Fund's interest, upon the sale of the underlying Property, in
this Local Limited Partnership. On May 29, 2008, the Fund's interest was
transferred, resulting in net sales proceeds to the Partnership of $1,437,970,
or $28.23 per Unit. The Managing General Partner estimates this sale will result
in 2008 taxable income projected to be approximately $875,000, or $17.18, per
Unit. A final accounting of security deposits and operating cash accounts is
expected to result in a nominal amount of additional proceeds to the
Partnership.

As previously reported, the Managing General Partner anticipated the Fund's
interest in the Local Limited Partnership that owns Spring Wood Apartments,
located in Tallahassee, Florida, would be terminated upon the sale of the
Property in the third quarter of 2008, a transaction that could have resulted in
net sales proceeds to the Fund of approximately $400,000, or $7.85 per Unit. In
July 2008, the potential buyer withdrew their interest to purchase this
Property. The Managing General Partner will continue to explore an exit strategy
for the Partnership's interest in the Local Limited Partnership that owns Spring
Wood.

As previously reported, the Managing General Partner entered into an agreement
that would require the Local General Partner to either purchase the Fund's
interest in Sunrise Terrace, located in Madera, California, after the end of the
compliance period on December 31, 2008 (previously incorrectly reported as
December 31, 2007), based on the appraised value of the Property, or to market
the Property for sale.


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

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


Property Discussions (continued)

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

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

As previously reported, for Des Moines Street Village, located in Des Moines,
Iowa, although average occupancy for the three month period ending December 31,
2007, was 75%, and below the Managing General Partner's acceptable benchmark of
85%, significant improvement was made, as occupancy rose to 93% at March 31,
2008. The Property operated at below breakeven throughout the three month period
ending March 31, 2008. In June 2008, the Fund advanced $48,404 to the Property
in order to pay real estate taxes originally due in September 2007. These past
due real estate taxes resulted in the Local General Partner defaulting on the
Partnership agreement, as well as in default of the mortgage loan. The Managing
General Partner is actively pursuing a replacement of the current Local General
Partner. The Property may require additional advances from the Fund in order to
alleviate additional real estate tax and first mortgage loan debt service
covenant requirements. While the Local General Partner had previously funded
deficits and the Property remains current on its debt obligations, the Managing
General Partner approved the Local General Partner request to a reduced rate
refinancing of the Property's first mortgage in April 2004. As part of this
transaction, the Managing General Partner, and the Local General Partner,
entered into a put agreement whereby the Fund can transfer its interest in the
Local Limited Partnership for a nominal amount, any time after the expiration of
the Compliance Period on December 31, 2009.

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

As previously reported, Grand Boulevard Renaissance, located in Chicago,
Illinois, continued to experience operating difficulties. The three month period
ending December 31, 2007 resulted in an occupancy level of 87%, slightly above
the Managing General Partner's acceptable benchmark, while working capital and
debt service coverage ratios remained below acceptable levels throughout the
twelve month period ending December 31, 2007. Occupancy rose to 90%, while
working capital and debt service coverage remained below acceptable levels, as
of


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

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

Property Discussions (continued)

March 31, 2008. A representative of the Managing General Partner conducted a
physical inspection as part of a December 2007 site visit. Despite improvements
since an October 2006 visit, the Property is still assigned an unfavorable
rating due to significant deferred maintenance issues. The Managing General
Partner's representative also considers property management to be weak and
limited in capacity to address the physical needs of the Property. Advances from
the Local General Partner and working capital have enabled the Property to
remain current on its loan obligations. In response to prior deficits, during
2001 the Local General Partner negotiated with the first mortgage lender to
reduce the interest rate on the current first mortgage. In addition, in an
effort to further reduce the Property's debt service burden, in July 2003 the
Local Limited Partnership and the Illinois Housing Development Authority closed
on a mortgage restructuring of the second mortgage that reduced monthly debt
service payments until June 1, 2005. As part of the transaction, the management
agent agreed to subordinate a percentage of its management fee to payment of the
second mortgage debt service.

As previously reported, in an effort to reduce the Fund's risk to chronic
operating difficulties at Wynmor, located in Brooklyn Park, Minnesota, the
Managing General Partner and Local General Partner, on October 1, 2003, entered
into an agreement to transfer a portion of the Fund's interest in the Property's
future Tax Credits (approximately $11 per Unit) and tax losses to the Local
General Partner. In return, the Local General Partner agreed to deposit $500,000
into an escrow to be used to fund current and future operating deficits and to
fund as much as an additional $500,000 to cover future operating deficits. The
Managing General Partner and Local General Partner also have an agreement that
allows for the Managing General Partner to put the Fund's interest to the Local
General Partner for $1 any time after October 1, 2003 and that the Local General
Partner could call the Fund's interest for fair market value any time after
January 2, 2009. Although occupancy improved to 88% at March 31, 2008, the
Property continued to operate at below breakeven for the three month period
ending March 31, 2008. The Compliance Period for the Property expires on
December 31, 2008.

As previously reported, the Local General Partner of Twin Oaks Meadows, located
in Lansing, Michigan, with the Fund's consent, obtained soft loan financing in
May 2004 to undertake much needed security improvements to the Property, reduce
payables and fund operating deficits. In return for its consent, the Fund
received a put option that allows the Fund to transfer its interest in the Local
Limited Partnership for a nominal price to the Local General Partner at any time
subsequent to the end of the Property's Compliance Period on December 31, 2009.
Working capital and debt service levels remain below acceptable levels at March
31, 2008. As a result of a rise in the rate of crime in the immediate area,
occupancy remained below an acceptable level, 67%, at March 31, 2008. In
response, a neighborhood watch program was implemented and many of the
residents' concerns regarding safety have been addressed. A new site manager was
brought in May 2007, implementing programs to involve residents, as well as the
community at large.


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

           QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Non Applicable

                     CONTROLS AND PROCEDURES



Disclosure Controls and Procedures

We conducted an evaluation of the effectiveness of the design and operation of
our disclosure controls and procedures, as defined in Rules 13a-15(e) and
15d-15(e) under the Securities Exchange Act of 1934, as amended, or the Exchange
Act, to ensure that information required to be disclosed by us in the reports
filed or submitted by us under the Exchange Act is recorded, processed,
summarized and reported, within the time periods specified in the Securities
Exchange Commission's rules and forms, including to ensure that information
required to be disclosed by us in the reports filed or submitted by us under the
Exchange Act is accumulated and communicated to management to allow timely
decisions regarding required disclosure. Based on that evaluation, management
has concluded that as of June 30, 2008, our disclosure controls and procedures
were effective.

Internal Control over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal
control over financial reporting, as such term is defined in Exchange Act Rules
13a-15(f) and 15d-15(f). Our management conducted an assessment of the
effectiveness of our internal control over financial reporting. This assessment
was based upon the criteria for effective internal control over financial
reporting established in Internal Control - Integrated Framework, issued by the
Committee of Sponsoring Organizations of the Treadway Commission.

The Fund's internal control over financial reporting involves a process designed
to provide reasonable assurance regarding the reliability of financial reporting
and the preparation of financial statements for external purposes in accordance
with generally accepted accounting principles. Internal control over financial
reporting includes the controls themselves, as well as monitoring of the
controls and internal auditing practices and actions to correct deficiencies
identified. Because of its inherent limitations, internal control over financial
reporting may not prevent or detect misstatements.

Management assessed the effectiveness of the Fund's internal control over
financial reporting as of March 31, 2008. Based on this assessment, management
concluded that, as of June 30, 2008, the Fund's internal control over financial
reporting was effective.



<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

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

(b) Reports on Form 8-K - No reports on Form 8-K were filed during
    the quarter ended June 30, 2008.



<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.


Date:  August 14, 2008             BOSTON FINANCIAL TAX CREDIT FUND VII,
                                   A LIMITED PARTNERSHIP


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

                                       /sGreg Judge
                                        _______________
                                         Greg Judge
                                         President
                                         Arch Street VIII, Inc.