February 13, 1998




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 for Quarter Ended December 31, 1997
        File No. 0-24584



Gentlemen:

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/George Fondulis
George Fondulis
Assistant Controller





TC7-Q3.DOC


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                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                    FORM 10-Q

 Quarterly Report Under Section 13 or 15(d) of the Securities Exchange 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 December 31, 1997

                                       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  December 31, 1997     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 .


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              BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED PARTNERSHIP

                                TABLE OF CONTENTS




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

Item 1.   Financial Statements

          Balance Sheets - December 31, 1997 (Unaudited)
               and March 31, 1997                                             1

          Statements of Operations (Unaudited) - For the Three
               and Nine Months Ended December 31, 1997 and 1996               2

          Statement of Changes in Partners' Equity (Deficiency)
               (Unaudited) - For the Nine Months Ended December 31, 1997      3

          Statements of Cash Flows (Unaudited) -
               For the Nine Months Ended December 31, 1997 and 1996           4

          Notes to Financial Statements (Unaudited)                           5

Item 2.   Management's Discussion and Analysis of
               Financial Condition and Results of Operations                  6

PART II - OTHER INFORMATION

Items 1-6                                                                     8

SIGNATURE                                                                     9



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



                                                        
                                 BALANCE SHEETS
 <TABLE>
 <CAPTION>

                                                                     December 31,             March 31,
                                                                         1997                   1997
                                                                      (Unaudited)
 <S>                                                                  <C>                   <C> 

Assets

Cash and cash equivalents                                             $    368,392          $    373,729
Marketable securities, at fair value                                     3,076,192             3,240,944
Restricted cash                                                            249,162               239,155
Investments in Local Limited Partnerships (Note 1)                      29,379,569            31,792,098
Organization costs, net of accumulated
   amortization of $48,333 and $40,833,
   respectively                                                              1,667                 9,167
Other assets                                                                42,115                39,556
                                                                      ------------          ------------
     Total Assets                                                     $ 33,117,097          $ 35,694,649
                                                                      ============          ============


Liabilities and Partners' Equity

Accounts payable to affiliates                                        $    225,031          $    304,382
Accounts payable and accrued expenses                                       45,974                34,940
                                                                      ------------          ------------
     Total Liabilities                                                     271,005               339,322
                                                                      ------------          ------------

Commitments (Note 2)

General, Initial and Investor Limited Partners' Equity                  32,843,247            35,405,419
Net unrealized gains (losses) on marketable securities                       2,845               (50,092)
                                                                      ------------          ------------
          Total Partners' Equity                                        32,846,092            35,355,327
                                                                      ------------          ------------
          Total Liabilities and Partners' Equity                      $ 33,117,097          $ 35,694,649
                                                                      ============          ============
 </TABLE>

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


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              BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED PARTNERSHIP


                            STATEMENTS OF OPERATIONS
           For the Three and Nine Months Ended December 31, 1997 and 1996
                                   (Unaudited)
 <TABLE>
 <CAPTION>

                                             Three Months Ended                          Nine Months Ended
                                      December 31,         December 31,           December 31,       December 31,
                                          1997                 1996                   1997               1996
                                      -------------        -------------         -------------     ----------
 <S>                                   <C>                  <C>                   <C>               <C>    

Revenue:
   Investment                          $    52,132          $    43,057           $    152,227      $    146,175
   Other                                    28,065                4,856                 52,555            71,689
                                       -----------          -----------           ------------      ------------
       Total Revenue                        80,197               47,913                204,782           217,864
                                       -----------          -----------           ------------      ------------

Expenses:
   Asset management fee,
    related party                           71,097               68,826                213,291           206,478
   General and administrative
    (includes reimbursements
    to an affiliate in the amounts
    of $79,105 and $80,646 in
    1997 and 1996, respectively)            58,386               41,132                169,857           160,991
   Amortization                             11,433               11,457                 34,300            34,372
                                       -----------          -----------           ------------      ------------
       Total Expenses                      140,916              121,415                417,448           401,841
                                       -----------          -----------           ------------      ------------

Loss before equity in losses
    of Local Limited Partnerships          (60,719)             (73,502)              (212,666)         (183,977)

Equity in losses of
   Local Limited Partnerships             (913,317)            (775,322)            (2,349,506)       (2,014,905)
                                       -----------          -----------           ------------      ------------

Net Loss                               $  (974,036)         $  (848,824)          $ (2,562,172)     $ (2,198,882)
                                       ===========          ===========           ============      ============


Net Loss allocated:
   To General Partners                 $    (9,741)         $    (8,488)          $    (25,622)     $    (21,989)
   To Limited Partners                    (964,295)            (840,336)            (2,536,550)       (2,176,893)
                                       -----------          -----------           ------------      ------------
                                       $  (974,036)         $  (848,824)          $ (2,562,172)     $ (2,198,882)
                                       ===========          ===========           ============      ============

Net Loss per Limited
   Partnership Unit
   (50,930 Units)                      $   (18.93)          $   (16.50)           $    (49.80)      $     (42.74)
                                       ==========           ==========            ===========       ============
 </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)
                                   (Unaudited)
                   For the Nine Months Ended December 31, 1997
 <TABLE>
 <CAPTION>

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

Balance at March 31, 1997          $ (90,267)      $ 5,000      $ 35,490,686          $ (50,092)    $   35,355,327

Net change in net unrealized
   losses on marketable securities
   available for sale                      -             -                 -             52,937             52,937

Net Loss                             (25,622)            -        (2,536,550)                 -         (2,562,172)
                                   ---------       -------      ------------          ---------     --------------

Balance at December 31, 1997       $(115,889)      $ 5,000      $ 32,954,136          $   2,845     $   32,846,092
                                   =========       =======      ============          =========     ==============
 </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
                                   (Unaudited)
              For the Nine Months Ended December 31, 1997 and 1996
 <TABLE>
 <CAPTION>


                                                                                 1997                  1996
                                                                            -------------         ---------
 <S>                                                                         <C>                    <C> 

 Net cash used for operating activities                                      $   (246,390)          $   (90,525)
                                                                            ------------           -----------

Cash flows from investing activities:
    Purchase of marketable securities                                         (1,446,141)           (1,095,655)
    Proceeds from sales and maturities of
       marketable securities                                                   1,660,978             1,755,624
    Cash distributions received from Local
       Limited Partnerships                                                      135,414               127,057
    Investments in Local Limited Partnerships                                    (99,191)             (663,227)
    Restricted cash                                                              (10,007)               (8,171)
                                                                            ------------           -----------
Net cash provided by investing activities                                        241,053               115,628
                                                                            ------------           -----------

Net increase (decrease) in cash and cash equivalents                              (5,337)               25,103

Cash and cash equivalents, beginning of period                                   373,729               334,845
                                                                            ------------           -----------

Cash and cash equivalents, end of period                                    $    368,392           $   359,948
                                                                            ============           =========== 
 </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  Partnership's  10-K for the year
ended March 31, 1997. In the opinion of management,  these financial  statements
include  all  adjustments,  consisting  only of  normal  recurring  adjustments,
necessary to present fairly the Partnership'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  year  financial  statements  to  conform  to the  current  year
classifications.

The  General  Partners  have  elected  to report  results  of the Local  Limited
Partnerships on a 90 day lag basis because the Local Limited Partnerships report
their results on a calendar year basis.  Accordingly,  the financial information
about  the Local  Limited  Partnerships  that is  included  in the  accompanying
financial statements is as of September 30, 1997 and 1996.

1.   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,  with the  exception of Springwood  which is
19.80%,  in the profits,  losses,  tax credits and cash flows from operations of
each of the Local  Limited  Partnerships.  Upon  dissolution,  proceeds  will be
distributed according to each respective partnership agreement.

The  following is a summary of  Investments  in Local  Limited  Partnerships  at
December 31, 1997:
 <TABLE>
 <S>                                                                                               <C>


Capital Contributions paid to Local Limited Partnerships
   and purchase price paid to withdrawing partners of
   Local Limited Partnerships                                                                      $  39,289,152

Cumulative equity in losses of Local Limited Partnerships                                            (10,615,560)

Cash distributions received from Local Limited Partnerships                                             (428,417)
                                                                                                   -------------

Investments in Local Limited Partnerships before adjustments                                          28,245,175

Excess of investment cost over the underlying net assets acquired:

   Acquisition fees and expenses                                                                       1,252,338

   Accumulated amortization of acquisition fees and expenses                                            (117,944)
                                                                                                   -------------

Investments in Local Limited Partnerships                                                          $  29,379,569
                                                                                                   =============
 </TABLE>

The Partnership's share of the net losses of the Local Limited  Partnerships for
the nine months ended December 31, 1997 is $2,349,506.

2.   Commitments

At  December  31,  1997,   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 $658,000. In addition, the Fund has set aside
$217,000 in 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

Liquidity and Capital Resources

At  December  31,  1997,  the Fund had cash and cash  equivalents  of  $368,392,
compared with $373,729 at March 31, 1997. The decrease is primarily attributable
to  investments  in  Local  Limited  Partnerships  and cash  used for  operating
activities.  These decreases to cash and cash equivalents are offset by proceeds
from sales and  maturities  of  marketable  securities in excess of purchases of
marketable  securities  and  cash  distributions  received  from  Local  Limited
Partnerships.

As of December 31, 1997,  approximately  $2,540,000 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  December  31,  1997,   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 $658,000. In addition, the Fund has set aside
$217,000 in future capital contributions to one Local Limited Partnership.

Since the Fund invests as a limited partner, the Fund has no contractual duty to
provide  additional  funds to Local  Limited  Partnerships  beyond its specified
investment.  Thus, as of December 31, 1997, the Fund had no contractual or other
obligation to any Local Limited Partnership, which had not been paid or provided
for, except as described above.

In the event  a Local  Limited Partnership  encounters  operating  difficulties
requiring  additional funds, the  Fund might deem it in  its best  interests to 
provide such funds, voluntarily, in order to protect its  investment.  No  such 
event has occurred to date.

Cash Distributions

No cash distributions were made during the nine months ended December 31, 1997.

Results of Operations

The Fund's  results of operations  for the three and nine months ended  December
31, 1997 resulted in a net loss of $974,036 and $2,562,172, as compared to a net
loss of $848,824 and $2,198,882 for the same period in 1996. The increase in net
loss is  primarily  attributable  to an  increase  in  equity in losses of Local
Limited  Partnerships  and a decrease in other revenue for the nine months ended
December 31, 1997. Equity in losses of Local Limited Partnerships  increased due
to an  increase  in general  operating  and  depreciation  expenses of the Local
Limited  Partnerships,  offset  by an  increase  in rental  revenues,  due to an
improvement in local rental  markets.  Other revenue  decreased  during the nine
months ended  December  31, 1997 as the result of a decrease in escrow  interest
earned by the  Partnership.  There is an increase in other revenue for the three
months ended December 31, 1997 due to guaranteed  distributions  paid during the
third  quarter,  which offsets the increase in equity in losses of Local Limited
Partnerships for those three months.


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


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

Property Discussions

The Fund is invested in 19 Local  Limited  Partnerships  which own 19 properties
located in 12 states and Puerto Rico.  Fifteen of the properties,  consisting of
1574 units, are new  construction and four of the properties,  consisting of 564
units,  were  rehabilitated.  All  properties  have  completed  construction  or
rehabilitation and initial lease-up.

 As previously  reported,  Los Claveles II,  located in Trujillio  Alto,  Puerto
Rico,  continues to experience  operating  difficulties  due to ongoing  capital
repair  needs and  management  issues.  Recently,  an  affiliate of the Managing
General  Partner  of the  Partnership  successfully  negotiated  with the  Local
General  Partners,  lender and local housing authority to replace the management
agent for Los Claveles II as well as its neighboring  property,  Los Claveles I.
By  consolidating  management,  the Managing  General  Partner feels that it can
achieve   greater   control  over  both  sites  and  attain  certain   operating
efficiencies that will benefit both properties. The new management agent assumed
responsibility  for the property in December 1996 and has successfully  obtained
Section 8 subsidy  increases.  The Local  General  Partners  agreed to step down
voluntarily and will be replaced by an unaffiliated  general  partner,  once the
workout plan is approved by the lender. In addition,  the Local General Partners
executed a delegation  agreement  which grants  authority to an affiliate of the
Managing General Partner to implement the capital  improvement plan and complete
negotiations  with the lender.  The lender continues to indicate its willingness
to work with the  Managing  General  Partner  and  management  agent to  improve
operations and cure defaults.  Although there appears to be sufficient resources
to turn the project  around,  no  agreement  has been reached with the lender to
date.





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





PART II       OTHER INFORMATION

Items 1-5     Not applicable

Item 6        Exhibits and reports on Form 8-K

                (a)Exhibits - None

                (b)Reports  on Form 8-K - No  reports  on Form  8-K  were  filed
                   during the quarter ended December 31, 1997.



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


                                    SIGNATURE


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


DATED: February 13, 1998                  BOSTON FINANCIAL TAX CREDIT FUND VII,
                                          A LIMITED PARTNERSHIP


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




                                          /s/William E. Haynsworth
                                          William E. Haynsworth
                                          Managing Director, Vice President and
                                          Chief Operating Officer





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