February 14, 2006




Securities and Exchange Commission
450 Fifth Street, NW
Washington, DC  20549

Re:    Boston Financial Tax Credit Fund VII, A Limited Partnership
       Report on Form 10-QSB for the Quarter Ended December 31, 2005
       File Number 0-24584


Dear Sir/Madam:

Pursuant to the requirements of Section 15(d) of the Securities Exchange Act of
1934, filed herewith one copy of subject report.


Very truly yours,


/s/Stephen Guilmette
Stephen Guilmette
Assistant Controller





TC7-Q3.DOC


<PAGE>


                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                   FORM 10-QSB


(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, 2005
                                       -----------------------------------

                                                         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 .


<PAGE>


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

<TABLE>
<CAPTION>



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

Item 1.  Financial Statements

<S>                                                                                       <C>
         Balance Sheet (Unaudited) - December 31, 2005                                    1

         Statements of Operations (Unaudited) -
           For the Three and Nine Months Ended December 31, 2005 and 2004                 2

         Statement of Changes in Partners' Equity (Deficiency)
           (Unaudited) - For the Nine Months Ended December 31, 2005                      3

         Statements of Cash Flows (Unaudited) -
           For the Nine Months Ended December 31, 2005 and 2004                           4

         Notes to the Financial Statements (Unaudited)                                    5

Item 2.  Management's Discussion and Analysis of
           Financial Condition and Results of Operations                                  7

PART II - OTHER INFORMATION

Items 1-6                                                                                15

SIGNATURE                                                                                16

CERTIFICATIONS                                                                           17
</TABLE>

<PAGE>


                        BOSTON FINANCIAL TAX CREDIT FUND VII, A
                              LIMITED PARTNERSHIP

                                        4
                                  BALANCE SHEET
                                December 31, 2005
                                   (Unaudited)

<TABLE>
<CAPTION>



Assets

<S>                                                                                               <C>
Cash and cash equivalents                                                                         $       447,226
Restricted cash                                                                                            55,391
Investment securities (Note 1)                                                                            449,667
Restricted investment securities (Note 1)                                                                 196,400
Investments in Local Limited Partnerships (Note 2)                                                      4,876,081
Other assets                                                                                                7,191
                                                                                                  ---------------
     Total Assets                                                                                 $     6,031,956
                                                                                                  ===============

Liabilities and Partners' Equity

Due to affiliates                                                                                 $       193,225
Accrued expenses                                                                                           53,850
                                                                                                  ---------------
     Total Liabilities                                                                                    247,075
                                                                                                  ---------------

Commitments (Note 3)

General, Initial and Investor Limited Partners' Equity                                                  5,786,861
Net unrealized losses on investment securities                                                             (1,980)
                                                                                                  ---------------
     Total Partners' Equity                                                                             5,784,881
                                                                                                  ---------------
     Total Liabilities and Partners' Equity                                                       $     6,031,956
                                                                                                  ===============

</TABLE>


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


<PAGE>

                        BOSTON FINANCIAL TAX CREDIT FUND VII, A
                              LIMITED PARTNERSHIP


                            STATEMENTS OF OPERATIONS
         For the Three and Nine Months Ended December 31, 2005 and 2004
                                   (Unaudited)


<TABLE>
<CAPTION>

                                                         Three Months Ended                          Nine Months Ended
                                                  December 31,          December 31,         December 31,          December 31,
                                                      2005                  2004                 2005                  2004
                                                ----------------      ----------------     ----------------     -----------
Revenue
<S>                                             <C>                   <C>                  <C>                  <C>
   Investment                                   $          9,763      $          5,887     $         27,351     $         14,875
   Other                                                       -                     -               30,000               70,000
                                                ----------------      ----------------     ----------------     ----------------
     Total Revenue                                         9,763                 5,887               57,351               84,875
                                                ----------------      ----------------     ----------------     ----------------

Expenses:
   Asset Management Fees, affiliate                       85,456                82,726              256,368              248,178
   Provision for valuation of advances to
     Local Limited Partnerships                               60                     -              200,276               13,141
   Provision for valuation
     of investments in Local Limited
     Partnerships                                              -                     -              133,000                    -
   General and administrative
     (includes reimbursement to affiliate
     in the amounts of $87,965 and
     $159,750 for the nine months ended
     December 31, 2005 and 2004,
     respectively)                                        57,559                50,965              210,973              225,283
   Amortization                                            4,947                 7,460               15,725               22,380
                                                ----------------      ----------------     ----------------     ----------------
     Total Expense                                       148,022               141,151              816,342              508,982
                                                ----------------      ----------------     ----------------     ----------------

Loss before equity in losses of
   Local Limited Partnerships                           (138,259)             (135,264)            (758,991)            (424,107)

Equity in losses of Local Limited
   Partnerships (Note 2)                                (260,210)             (176,895)            (758,102)          (1,537,439)
                                                ----------------      ----------------     ----------------     ----------------

Net Loss                                        $       (398,469)     $       (312,159)    $     (1,517,093)    $     (1,961,546)
                                                ================      ================     ================     ================

Net Loss allocated:
   General Partners                             $         (3,985)     $         (3,121)    $        (15,171)    $        (19,615)
   Limited Partners                                     (394,484)             (309,038)          (1,501,922)          (1,941,931)
                                                ----------------      ----------------     ----------------     ----------------
                                                $       (398,469)     $       (312,159)    $     (1,517,093)    $     (1,961,546)
                                                ================      ================     ================     ================

Net Loss Per Limited Partner
   Unit (50,930) Units                          $          (7.75)     $          (6.07)    $        (29.49)     $         (38.13)
                                                ================      ================     ===============      ================

</TABLE>

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


<PAGE>

                        BOSTON FINANCIAL TAX CREDIT FUND VII, A
                              LIMITED PARTNERSHIP


              STATEMENT OF CHANGES IN PARTNERS' EQUITY (DEFICIENCY)
                   For the Nine Months Ended December 31, 2005
                                   (Unaudited)

<TABLE>
<CAPTION>





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

<S>                                      <C>             <C>               <C>               <C>             <C>
Balance at March 31, 2005                $  (371,281)    $     5,000       $    7,670,235    $         153   $    7,304,107
                                         -----------     -----------       --------------    -------------   --------------

Comprehensive Loss:
  Change in net unrealized
     gains on investment
     securities available for sale                 -               -                    -          (2,133)           (2,133)
  Net Loss                                   (15,171)              -           (1,501,922)              -        (1,517,093)
                                         -----------     -----------       --------------    ------------    --------------
Comprehensive Loss                           (15,171)              -           (1,501,922)         (2,133)       (1,519,226)
                                         -----------     -----------       --------------    ------------    --------------

Balance at December 31, 2005             $  (386,452)    $     5,000       $    6,168,313    $     (1,980)   $    5,784,881
                                         ===========     ===========       ==============    ============    ==============

</TABLE>



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

<PAGE>

                        BOSTON FINANCIAL TAX CREDIT FUND VII, A
                              LIMITED PARTNERSHIP


                            STATEMENTS OF CASH FLOWS
              For the Nine Months Ended December 31, 2005 and 2004
                                   (Unaudited)

<TABLE>
<CAPTION>





                                                                              2005                  2004
                                                                          -------------         --------

<S>                                                                       <C>                   <C>
Net cash used for operating activities                                    $    (190,341)        $    (417,800)

Net cash provided by (used for) investing activities                           (397,596)              279,105
                                                                          -------------         -------------

Net decrease in cash and cash equivalents                                      (587,937)             (138,695)

Cash and cash equivalents, beginning                                          1,035,163             1,304,199
                                                                          -------------         -------------

Cash and cash equivalents, ending                                         $     447,226         $   1,165,504
                                                                          =============         =============

</TABLE>


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


<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-QSB 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, 2005. 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 September 30, 2005 and 2004.

1.   Investment Securities

The Fund's investment securities are classified as "Available for Sale" and are
carried at fair value as reported by the brokerage firms at which they are held,
with unrealized gains or losses excluded from earnings and reported as a
separate component of partner's equity.

2.   Investments in Local Limited Partnerships

The Fund has limited partnership interests in nineteen 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 Partnership's at the end of the Compliance
Period at nominal prices. In the event that Local Limited Partnerships are sold
to a third party, or upon dissolution of the Local Limited Partnerships,
proceeds will be distributed according to the terms of each Local Limited
Partnership agreement.

The following is a summary of investments in Local Limited Partnerships at
December 31, 2005:
<TABLE>
<CAPTION>

Capital contributions and advances paid to Local Limited Partnerships
<S>                                                                                                 <C>
   and purchase price paid to withdrawing partners of Local Limited Partnerships                    $    40,605,570

Cumulative equity in losses of Local Limited Partnerships (excluding cumulative
   unrecognized losses of $10,090,777)                                                                  (29,549,716)

Cumulative cash distributions received from Local Limited Partnerships                                   (2,440,566)
                                                                                                    ---------------

Investments in Local Limited Partnerships before adjustments                                              8,615,288

Excess investment costs over the underlying assets acquired:

   Acquisition fees and expenses                                                                          1,252,338

   Cumulative amortization of acquisition fees and expenses                                                (350,845)
                                                                                                    ---------------

Investments in Local Limited Partnerships before impairment allowance                                     9,516,781

Impairment allowance on investments in Local Limited Partnerships                                        (4,640,700)
                                                                                                    ---------------

Investments in Local Limited Partnerships                                                           $     4,876,081
                                                                                                    ===============
</TABLE>


<PAGE>


                        BOSTON FINANCIAL TAX CREDIT FUND VII, A
                              LIMITED PARTNERSHIP

                                        8
                  NOTES TO THE FINANCIAL STATEMENTS (continued)
                                   (Unaudited)



2. Investments in Local Limited Partnerships (continued)

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

The Fund's share of the net losses of the Local Limited Partnerships for the
nine months ended December 31, 2005 is $2,086,123. For the nine months ended
December 31, 2005, the Fund has not recognized $1,328,021 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.

3.   Commitments

At December 31, 2005, 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 $206,000. Of this amount, the Fund has set
aside $148,281 in escrow for future capital contributions to one Local Limited
Partnership.

4.   Significant Equity Investee

The following Local Limited Partnerships invested in by the Fund represent more
than 20% of the Fund's total assets or equity as of either December 31, 2005 or
2004 or net losses for the three months ended either December 31, 2005 or 2004.
The following financial information represents the performance of the Local
Limited Partnerships for the three months ended December 31, 2005 and/or 2004:
<TABLE>
<CAPTION>

         Santa Fe Oaks Phase II, A Limited Partnership.                    2005              2004
         ----------------------------------------------                -------------    -------------
<S>                                                                    <C>              <C>
         Revenue                                                       $     266,605    $     259,527
         Net Loss                                                      $     (88,464)   $     (39,207)

         Fountain Lakes, A Limited Partnership.
         --------------------------------------                        -------------    -------------
         Revenue                                                       $         N/A    $     179,481
         Net Loss                                                      $         N/A    $     (64,195)

         Grand Boulevard Renaissance I Limited Partnership.
         --------------------------------------------------            -------------    -------------
         Revenue                                                       $      72,563    $      75,176
         Net Loss                                                      $     (38,880)   $     (24,260)

         Affordable Citrus Glen Limited Partnership.
         --------------------------------------------------            -------------    -------------
         Revenue                                                       $     371,686     $    330,345
         Net Loss                                                      $     (10,676)    $   (36,143)







</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 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 Fund accounts for its investments in Local Limited Partnerships using the
equity method of accounting. 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.
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 Fund investments 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 potential
 impairment of its investments in Local Limited Partnerships. The investments
 are reviewed for impairment whenever events or changes in circumstances
 indicate that the Fund may not be able to
recover its carrying value. If an other than temporary impairment in carrying
value exists, a provision to reduce the asset to fair value will be recorded in
the Fund's financial statements.

In January 2003, the FASB issued Interpretation No. 46 ("Interpretation"),
"Consolidation of Variable Interest Entities", which provides new criteria for
determining whether or not consolidation accounting is required. The
Interpretation, which was modified in December 2003 in order to address certain
technical and implementation issues, requires the Fund to consider consolidation
or provide additional disclosures of financial information for Local Limited
Partnerships meeting the definition of a Variable Interest Entity ("VIE"). The
Fund was required to apply the Interpretation to the Local Limited Partnerships
meeting the definition of a VIE as of March 31, 2005.

This Interpretation requires consolidation by the Fund of the Local Limited
Partnerships' assets and liabilities and results of operations if the Fund
determined that the Local Limited Partnerships were VIEs and that the Fund was
the "Primary Beneficiary". Minority interests may be recorded for the Local
Limited Partnerships' ownership share attributable to other investors. Where
consolidation of Local Limited Partnerships is not required, additional
financial information disclosures of Local Limited Partnerships may be required.
The Fund has assessed the Interpretation and concluded that it is not the
Primary Beneficiary of any of the Local Limited Partnerships that meet the
definition of a VIE. The Fund is involved with those VIEs as a non-controlling
limited partner equity holder. The Fund is required to disclose its maximum
exposure to economic and financial statement losses as a result of its
involvement with the VIEs. The Fund's exposure to economic and financial
statement losses from the VIEs is limited to its investment, including amounts
committed but not yet funded, in the VIEs ($5,081,988 at December 31, 2005). The
Fund may be subject to additional losses to the extent of any financial support
that the Fund voluntarily provides in the future.


<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 December 31, 2005, the Fund had cash and cash equivalents of $447,226,
compared with $1,035,163 at March 31, 2005. This decrease is primarily
attributable to purchases of investment securities, advances paid to a Local
Limited Partnership and cash used for operations. These decreases are partially
offset by cash distributions received from Local Limited Partnerships and
proceeds from investments securities. Cash used for operations includes $341,824
paid to the Managing General Partner for accrued asset management fees.

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 December 31, 2005, approximately $839,000 of cash, cash
equivalents and investment securities 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 December 31, 2005,
the Fund has advanced approximately $648,000 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. To date, the Fund has used
approximately $935,000 of Reserves to fund operations. 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.


At December 31, 2005, the Fund has committed to make future capital
contributions and to 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 $58,000.

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 December 31, 2005, 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.

Cash Distributions

No cash distributions were made to Limited Partners during the nine months ended
December 31, 2005. It is not expected that cash available for distribution, if
any, will be significant during the 2006 calendar year. Based on the results of
Property operations, most of the Local Limited Partnerships are not expected to
distribute significant amounts of cash to the Fund as such amounts may be needed
to fund Property operating costs. In addition, some of the Properties benefit
from some type of federal or state subsidy and, as a consequence, are subject to
restrictions on cash distributions.



<PAGE>

                        BOSTON FINANCIAL TAX CREDIT FUND VII, A
                              LIMITED PARTNERSHIP


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


Results of Operations

Three Month Period

The Fund's results of operations for the three months ended December 31, 2005
resulted in a net loss of $398,469 as compared to a net loss of $312,159 for the
same period in 2004. The increase in net loss is attributable to an increase in
equity in losses of Local Limited Partnerships. This increase in primarily
attributable to an increase in operating expenses at the property level for the
three months ended December 31, 2005 as compared to the same period in 2004.

Nine Month Period

The Fund's results of operations for the nine months ended December 31, 2005
resulted in a net loss of $1,517,093 as compared to a net loss of $1,961,546 for
the same period in 2004. The decrease in net loss is primarily attributable to a
decrease in equity in losses of Local Limited Partnerships. This decrease is
partially offset by an increase in provision for valuation of advances to Local
Limited Partnerships, an increase in provision for valuation of investments in
Local Limited Partnerships and a decrease in other income. The decrease in
equity in losses of Local Limited Partnerships is primarily due to the
Partnership not recognizing losses relating to Local Limited Partnerships where
cumulative equity in losses and cumulative distributions have exceeded its total
investment. The increase in provision for valuation of advances to Local Limited
Partnerships is the result of a reserve for advances made to one Local Limited
Partnership. Provision for valuation of investments increased due to the
Partnership recording an impairment allowance for its investments in one of the
Local Limited Partnerships. The decrease in other income is primarily due to a
decrease in distributions from Local Limited Partnerships with carrying values
of zero.

Portfolio Update


The Fund's investment portfolio consists of limited partnership interests in
nineteen 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 $1,476 per
Limited Partner Unit. The Managing General Partner estimates that the Fund will
generate Tax Credits of approximately $10 per Unit during 2005, with an
immaterial amount expected in 2006, the expected final year of Tax Credits. In
the aggregate, actual and estimated Tax Credits will enable 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 years from the
date the property is completed. Failure to do so would result in the recapture
of a portion of the property's Tax Credits. Between 2006 and continuing through
2010, the Compliance Periods of the nineteen Properties in which the Fund has an
interest will expire. The Managing General Partner has negotiated agreements
that will ultimately dispose of the Fund's interest in five Local Limited
Partnerships. It is unlikely that the disposition of any of these Local Limited
Partnership interests will generate any material cash distributions to the Fund.

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.


<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 (continued)


On or about July 13, 2004, Park G.P., Inc. ("Park") commenced litigation against
Boston Financial Qualified Housing Tax Credits L.P. IV ("QH IV") and its
purported general partners (collectively, the "Defendants") in Clay County,
Missouri (the "Missouri Action"), claiming that the Defendants breached the
relevant partnership agreement and their fiduciary duties owed to Park by, among
other things, failing to permit inspection of certain alleged "books and
records" of the Fund. On or about October 7, 2004, Park sought leave of the
court to amend its petition to include claims for inspection of the alleged
"books and records" against the Fund, Boston Financial Qualified Housing Tax
Credits L.P., Boston Financial Qualified Housing Tax Credits L.P. II, Boston
Financial Qualified Housing Tax Credits L.P. III, Boston Financial Qualified
Housing Tax Credits L.P. V, Boston Financial Tax Credit Fund VII, A Limited
Partnership, and their purported general partners (collectively, the "New
Defendants"). On November 15, 2004, the court granted the requested amendment to
the petition. On or about October 8, 2004, Park moved the court for entry of a
temporary restraining order (a "TRO") compelling the Defendants and the New
Defendants to turn over the alleged "books and records" in conjunction with a
transaction Park was proposing entering into. On October 12, 2004, the court
denied Park's request for a TRO.

In October 2005, Park again sought leave of the court in the Missouri Action to
amend its petition, claiming that the Defendants were in violation of the
Partnership Agreement by disposing of interests in Local Limited Partnerships
following expiration of the Local Limited Partnerships' applicable Compliance
Period(s) without first obtaining limited partner consent. On or about October
11, 2005, Park moved the court for entry of a TRO prohibiting the Defendants
from entering into any agreement to sell, transfer or otherwise convey any
interest in Local Limited Partnerships. On October 14, 2005, the court denied
Park's request for a TRO. In December 2005, the court granted Park's request to
amend its petition, and the case remains in discovery.

The Defendants and New Defendants maintain that Park is not entitled to review
the alleged "books and records" requested and/or use the materials in secondary
market transactions because, among other things: (i) they are not "books and
records" of the relevant partnerships; (ii) Park does not seek to review them
for a proper purpose; and (iii) selective disclosure of the information to Park
would give it an unfair informational advantage in secondary market transactions
and may violate federal and/or state securities laws. Likewise, the Defendants
maintain that the Partnership may continue to periodically dispose of its
interests in Local Limited Partnerships because, among other things, said
dispositions do not constitute the sale "at one time" of "all or substantially
all of the assets of the partnership" pursuant to Section 5.4.2 of the
Partnership Agreement. The Defendants and New Defendants accordingly intend on
defending against all of the aforementioned claims vigorously. These entities
have not, however, formed an opinion that an unfavorable outcome is either
probable or remote. Therefore, their counsel refrains from expressing an opinion
as to the likely outcome of the case or the range of any loss.

On August 24, 2004, the Fund, Boston Financial Qualified Housing Tax Credits
L.P., Boston Financial Qualified Housing Tax Credits L.P. II, Boston Financial
Qualified Housing Tax Credits L.P. III, Boston Financial Qualified Housing Tax
Credits L.P. IV, Boston Financial Qualified Housing Tax Credits L.P. V, Boston
Financial Tax Credit Fund Plus, A Limited Partnership and Boston Financial Tax
Credit Fund VIII, A Limited Partnership (collectively, the "Partnerships"), and
their general partners commenced litigation against Everest Housing Investors 2,
LLC ("Everest 2") and several other Everest-related entities (collectively, the
"Everest Entities") in Massachusetts state court, seeking a declaratory judgment
that certain materials the Everest Entities sought to inspect are not "books and
records" of the Partnerships and that the Everest Entities are in any case not
entitled to inspect said information under applicable partnership agreements,
partnership law or otherwise. On October 7, 2004, the Everest Entities filed an
answer and counterclaim against the Partnerships and their purported general
partners, claiming that they breached applicable partnership agreements,
partnership law and their fiduciary duties to the Everest Entities by failing to
make the purported "books and records" available. On January 12, 2005, the
Partnerships served a motion to amend their complaint to, among other things,
add a claim based on Everest 2's breach of a November 24, 2003



<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 (continued)

letter agreement, which compelled Everest 2 to keep confidential certain
information contemporaneously disseminated by four of the Partnerships to
Everest 2. Having received no opposition within the specified time, the
Partnerships filed the motion to amend with the proposed first amended complaint
on January 31, 2005. The Court has granted this Motion, and the discovery
process is continuing.


The Partnerships maintain that the Everest Entities are not entitled to review
the materials requested and/or use the materials in secondary market
transactions because, among other things: (i) they are not "books and records"
of the Partnerships; (ii) the Everest Entities do not seek to review them for a
proper purpose; and (iii) selective disclosure of the information to the Everest
Entities would give them an unfair informational advantage in secondary market
transactions and may violate federal and/or state securities laws. The
Partnerships have not formed an opinion that an unfavorable outcome is either
probable or remote. Therefore, the Partnerships' counsel refrains from
expressing an opinion as to the likely outcome of the case or the range of any
loss.


Property Discussions

Most of the Properties in which the Fund has an interest have stabilized
operations and operate above breakeven. 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.


As previously reported, operations at Los Claveles II, located in Trujillio
Alto, Puerto Rico, continue to improve. The sister property to the Property
("Tower I"), which is not owned by the Fund, remained vacant for 18 months due
to subsidy issues, making it very difficult to repair and occupy units at Los
Claveles II. In March 2002, the subsidy issue was resolved after a long
negotiating period with the United States Department of Housing and Urban
Development. Since resolution of the subsidy issue at Tower I, occupancy at the
Property improved substantially, and stood at 93% as of September 30, 2005.
Despite these improvements, significant risks to the Fund remain. The Property
continued to be in default of its first mortgage, which was restructured as part
of a workout in 1999. Debt service payments were scheduled to commence in
February 2000 but were delayed until July 2003 because turnaround efforts at the
Property were stalled for almost two years due to the subsidy issues at Tower I.
Although the loan was technically in default, the workout agreement contained a
clause that obligated the lender to renegotiate the terms of the workout
agreement in the event that the terms of the agreement were not met. As a
result, a second workout of the Property in January 2004 cured existing defaults
under the 1999 workout agreement. This second workout extended maturity dates on
two loans by roughly four years, and the interest rates on those two loans
remained the same at 6% and 0% respectively. Interest of $630,000, which had
accrued on one of the loans during the three years that the Property did not
generate sufficient income to make required debt service payments was rolled
into the second loan. The workout also provided for partial pay down of accrued
management fees due to an affiliate of the Local General Partner. The
transaction generated roughly $1.1 million in cancellation of indebtedness
taxable income to the Fund. Monthly debt service was reduced by approximately
$2,000 under this second workout. Although the Property operated at above
breakeven from the January 2004 debt restructuring through June 2005, higher
maintenance expenses have caused the Property to operate at below breakeven as
of September 30, 2005. 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 August 2004 indicated the Property is in fair
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



<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)

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, Grand Boulevard Renaissance, located in Chicago,
Illinois, continues to experience operating difficulties. Lower revenues, as a
result of the lowering of some unit rents in order to comply with HOME loan
funding requirements, along with higher administrative expenses contributed to
the Property's below breakeven operating performance at September 30, 2005.
Originally, 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. 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. Although
acceptable occupancy levels have been achieved throughout the six month period
ended September 30, 2005, working capital and debt service coverage ratios
remain below appropriate levels. In addition, there is significant deferred
maintenance and property management is weak. Advances from the Local General
Partner and from working capital have enabled the Property to remain current on
its loan obligations.

As previously reported, operations at Oak Ridge, located in Macon, Georgia,
continue to suffer primarily due to very low occupancy levels and low rental
rates as of September 30, 2005. The low occupancy levels are generally
attributable to a lack of public transportation near the site and a struggling
economy in the Macon area. The Property's net operating income remains
insufficient to meet debt service payments, therefore the Local General Partner
continues to advance the funds necessary for the Property to stay current on its
loan obligations. The Managing General Partner will continue to work closely
with the management agent and Local General Partner to monitor Property
operations. The Managing General Partner and Local Limited Partner continue to
explore an exit strategy that would allow for a 2006 disposal of the Fund's
interest in the 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. The Managing General Partner
continues to seek an acceptable replacement Local General Partner. These efforts
are being negatively impacted by the remote possibility of litigation involving
one of the former Local General Partners, who remains in bankruptcy at this
time. Since the statute of limitations on potential litigation has expired, an
aggressive disposition activity will be pursued.

As previously reported, Wynmor, located in Brooklyn Park, Minnesota, has been
experiencing operating difficulties since mid 2002. Low occupancy due mainly
from a weak rental market has reduced revenues and resulted in significant
operating deficits that the Local General Partner had initially expected to
continue for some time. As a result of improved occupancy levels and a
refinancing of the Property's first mortgage, discussed below, the Property was
able to operate at above breakeven for the six month period ended September 30,
2005. In an effort to reduce the Fund's risk, on October 1, 2003 the Managing
General Partner and Local General Partner entered an agreement to transfer a
portion of the Fund's interest in the Property's future Tax Credits
(approximately $11 per Unit) and tax



<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)

losses to the Local General Partner in return for the Local General Partner
agreeing 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. During the second quarter of 2004, the Local General
Partner successfully refinanced the Property's first mortgage, which will save
the Property approximately $200,000 in annual debt service payments. Finally,
the Managing General Partner and Local General Partner agreed that the Managing
General Partner could 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. The
Compliance Period ends for the Property on December 31, 2008.


As previously reported, St. Andrews Pointe, located in Columbia, South Carolina,
continues to suffer primarily from its location in Columbia; the Property was
built in an area of town that was once thriving but is now considered less
desirable. Although the Property displayed signs of improvement in occupancy and
debt service coverage during the three-month period ended June 30, 2005, they
were only temporary. Resulting from Property Management's decision to adopt
stricter income guidelines in an effort to reduce the rate of evictions and
delinquent tenants, occupancy and debt service coverage declined further during
the three month period ended September 30, 2005. However, the management agent
is strong and is working diligently to advertise and attract qualified residents
to the Property. Advances from the Local General Partner have enabled the
Property to stay current on its loan obligations.

As previously reported, Twin Oaks Meadows, located in Lansing, Michigan, has
suffered from security issues and a soft rental market for the past several
quarters. As a result, occupancy and revenues decreased and working capital and
debt service were below appropriate levels. To address both of these issues, the
Local General Partner had worked to obtain a new soft loan to undertake much
needed security improvements to the Property and another soft loan to reduce
payables and fund current operations. With the consent of the Fund, these loans
closed in early May 2004. 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.
Although working capital and debt service levels have not deteriorated further,
both remain below acceptable levels, while occupancy rose to 94% as of September
30, 2005.

As previously reported, Des Moines Street Village, located in Des Moines, Iowa,
continues to operate at below breakeven with debt service coverage and working
capital levels that are below appropriate levels as of September 30, 2005,
despite very acceptable occupancy levels throughout the same six month period
ended September 30, 2005. While the Local General Partner had previously funded
deficits and the Property has remained current on its debt obligations, the
Local General Partner requested and the Managing General Partner approved a
reduced rate refinancing of the Property's first mortgage that occurred 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 at any time after
the expiration of the Compliance Period on December 31, 2009.


As previously reported, in early 2004, the Local General Partner of Sunrise
Terrace, located in Madera, California, requested the Managing General Partner
to approve a refinancing and consolidation of the Property's first and second
mortgage loans into a single loan. As part of this transaction, the Managing
General Partner and the Local General Partner entered into an agreement to
require the Local General Partner to either purchase the Fund's interest after
the end of the compliance period on December 31, 2007 based on the appraised
value of the Property or to market the Property for sale. The refinancing closed
on September 3, 2004 and resulted in a distribution of refinancing proceeds of
$48,519 to the Fund. The Managing General Partner, in accordance with and as
permitted by the Fund's Partnership Agreement, retained the entire amount of net
proceeds in Reserves.


<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, Santa Fe Oaks II, located in Gainesville, Florida
continues to display the effects of the addition of three new properties in the
remote area that hinder this aging property's ability to compete. While improved
demand has increased occupancy for six consecutive months ending September 30,
2005, working capital and debt service coverage remain at unacceptable levels.
The Managing General Partner and Local Limited Partner continue to explore an
exit strategy that would allow for a 2006 disposal of the Fund's interest in the
Local Limited Partnership.

As previously reported, Guardian Place, located in Richmond, Virginia, closed on
a refinancing of 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.


The Fund has policies and practices for assessing potential impairment of its
investments in Local Limited Partnerships. The Fund analyzes these investments
to determine if impairment indicators exist and if an other than temporary
impairment adjustment is necessary. If impairment indicators are present, the
investment is further analyzed to consider the Fund's ability to recover the
investment's carrying value. If an other than temporary impairment in carrying
value exists, an impairment loss is recorded to write down the investment to its
fair value. Fair value is primarily established from the current market value
estimate of the remaining unused Tax Credits associated with the Properties
owned by the Local Limited Partnerships. During the nine months ended December
31, 2005, the Fund concluded that one of the Local Limited Partnerships, Des
Moines Street Associates Limited Partnership, had experienced other than
temporary declines in its carrying value, and impairment losses of approximately
$133,000 were recorded. Generally, the carrying value of most Local Limited
Partnerships will decline through losses and distributions in amounts sufficient
to prevent other then temporary impairments. However, the Fund may record
similar impairment losses in the future if the expiration of Tax Credits
outpaces losses and distributions from any of the Local Limited Partnerships.




<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
                  32.1   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 December 31, 2005.



<PAGE>


                        BOSTON FINANCIAL TAX CREDIT FUND VII, A
                              LIMITED PARTNERSHIP

                                    SIGNATURE


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


DATED:  February 14, 2006            BOSTON FINANCIAL TAX CREDIT FUND VII,
                                     A LIMITED PARTNERSHIP


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


                                     /s/Jenny Netzer
                                     Jenny Netzer
                                     Executive Vice President
                                     MMA Financial, LLC