June 27, 2003



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

       Boston Financial Tax Credit Fund VII, A Limited Partnership
       Annual Report on Form 10-KSB for the Year End March 31, 2003
       File Number 0-24584

Dear Sir/Madam:

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

Very truly yours,




/s/Stephen Guilmette
Stephen Guilmette
Assistant Controller


TC710KSB-K


<PAGE>



                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-KSB

(Mark One)

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

For the fiscal year end                   March 31, 2003
                        -------------------------------------------------------

                                                         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
                                                         --------------------

Securities registered pursuant to Section 12(b) of the Act:
                                                    Name of each exchange on
          Title of each class                          which registered
          -------------------                   -----------------------------
Securities registered pursuant to Section 12(g) of the Act:

                      UNITS OF LIMITED PARTNERSHIP INTEREST
                                (Title of Class)
                                     100,000

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 if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K (Subsection 229.405 of this chapter) is not contained herein,
and will not be contained, to the best of registrant's knowledge, in definitive
proxy or information statements incorporated by reference in Part III of this
Form 10-KSB or any amendment to this Form 10-KSB. [ X ]

State the aggregate sales price of partnership units held by non-affiliates of
the registrant.
                                           $45,581,000 as of March 31, 2003
                                      --------------------------------


<PAGE>





DOCUMENTS  INCORPORATED  BY REFERENCE:  LIST THE FOLLOWING  DOCUMENTS IF
INCORPORATED BY REFERENCE AND THE PART OF THE FORM 10-KSB INTO
WHICH THE DOCUMENT IS INCORPORATED:  (1) ANY ANNUAL REPORT TO SECURITY HOLDERS:
(2) ANY PROXY OR INFORMATION STATEMENT: AND (3) ANY PROSPECTUS FILED PURSUANT
TO RULE 424(b) OR (c) UNDER THE SECURITIES ACT OF 1933.
<TABLE>
<CAPTION>

                                                                        Part of Report on
                                                                        Form 10-KSB into
                                                                        Which the Document
Documents incorporated by reference                                     is Incorporated
-----------------------------------                                     -----------------------

<S>                                                                     <C>
Report on Form 8-K dated March 18, 1993                                 Part I, Item 1

Report on Form 8-K dated June 8, 1993                                   Part I, Item 1

Report on Form 8-K dated September 10, 1993                             Part I, Item 1

Report on Form 8-K dated January 14, 1994                               Part I, Item 1

Post-Effective Amendment No. 1-3 to the Form S-11
     Registration Statement, File # 33-52468                            Part I, Item 1

Post-Effective Amendment No. 4 to the Form S-11
     Registration Statement, File # 33-52468                            Part III, Item 11

Prospectus - Sections Entitled:

     "Investment Objectives and Policies -
      Principal Investment Objectives"                                  Part I, Item 1

     "Investment Risks"                                                 Part I, Item 1

     "Estimated Use of Proceeds"                                        Part III, Item 12

     "Management Compensation and Fees"                                 Part III, Item 12

     "Profits and Losses for Tax Purposes, Tax
        Credits and Cash Distributions"                                 Part III, Item 12




</TABLE>



<PAGE>


           BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED PARTNERSHIP

                          ANNUAL REPORT ON FORM 10-KSB
                         FOR THE YEAR END MARCH 31, 2003


                                TABLE OF CONTENTS
<TABLE>
<CAPTION>


                                                                           Page No.

PART I

     <S>          <C>                                                       <C>
     Item 1       Business                                                   K-3
     Item 2       Properties                                                 K-5
     Item 3       Legal Proceedings                                          K-10
     Item 4       Submission of Matters to a Vote of
                  Security Holders                                           K-10

PART II

     Item 5       Market for the Registrant's Units and
                  Related Security Holder Matters                            K-10
     Item 6       Management's Discussion and Analysis of
                  Financial Condition and Results of Operations              K-10
     Item 7       Financial Statements and Supplementary Data                K-14
     Item 8       Changes in and Disagreements with Accountants
                   on Accounting and Financial Disclosure                    K-14

PART III

     Item 9       Directors and Executive Officers
                  of the Registrant                                          K-14
     Item 10      Management Remuneration                                    K-15
     Item 11      Security Ownership of Certain Beneficial
                  Owners and Management                                      K-15
     Item 12      Certain Relationships and Related Transactions             K-16
     Item 13      Exhibits, Financial Statement Schedules and
                  Reports on Form 8-K                                        K-17

CONTROLS AND PROCEDURES                                                      K-18
-----------------------

SIGNATURES                                                                   K-19
----------

CERTIFICATIONS                                                               K-20
--------------
</TABLE>


<PAGE>


                                     PART I


Item 1.  Business

Boston Financial Tax Credit Fund VII, A Limited Partnership (the "Fund") is a
Massachusetts limited partnership formed on September 14, 1992 under the laws of
the Commonwealth of Massachusetts. The Fund's partnership agreement
("Partnership Agreement") authorizes the sale of up to 100,000 Units of limited
partnership interest at $1,000 per Unit. On November 30, 1993, the Fund held its
final investor closing. In total, the Fund received $50,930,000 ("Gross
Proceeds") of capital contributions for 50,930 Units. Such amounts exclude five
unregistered Units previously acquired for $5,000 by the Initial Limited
Partner, which is also one of the General Partners. The offering of Units
terminated on January 21, 1994. No further sale of Units is expected.

The Fund is engaged solely in the business of real estate investment.
Accordingly, a presentation of information about industry segments is not
applicable and would not be material to an understanding of the Fund's business
taken as a whole.

The Fund has invested as a limited partner in other limited partnerships ("Local
Limited Partnerships") which own and operate residential apartment complexes
("Properties"), some of which benefit from some form of federal, state or local
assistance programs and all of which qualify for low-income housing tax credits
("Tax Credits") added to the Internal Revenue Code (the "Code") by the Tax
Reform Act of 1986. The investment objectives of the Fund include the following:
(i) to provide investors with annual tax credits which they may use to reduce
their federal income taxes; (ii) to provide limited cash distributions from the
operations of apartment complexes; and (iii) to preserve and protect the Fund's
capital with the possibility of realizing a profit through the sale or
refinancing of apartment complexes. There cannot be any assurance that the Fund
will attain any or all of these investment objectives. A more detailed
discussion of these investment objectives, along with the risks in achieving
them, is contained in the sections of the Prospectus entitled "Investment
Objectives and Policies - Principal Investment Objectives" and "Investment
Risks", which are herein incorporated by this reference.

Table A on the following page lists the Properties originally acquired by the
Local Limited Partnerships in which the Fund has invested. Item 6 and Item 7 of
this Report contain other significant information with respect to such Local
Limited Partnerships. As required by applicable rules, the terms of the
acquisition of each Local Limited Partnership interest have been described in a
supplement to the Prospectus and collected in the post-effective amendment to
the Registration Statement; such descriptions are incorporated herein by this
reference.


<PAGE>
<TABLE>
<CAPTION>


                                     TABLE A

                             SELECTED LOCAL LIMITED
                                PARTNERSHIP DATA


    Properties owned by                                                                           Date
       Local Limited                                                                            Interest
        Partnerships                                        Location                            Acquired
-----------------------------                           ------------------                    --------------

<S>                                                   <C>                                       <C>
Oak Ridge                                             Macon, GA                                 12/31/92
Santa Fe Oaks II                                      Gainesville, FL                           12/31/92
Andrew's Pointe                                       Burnsville, MN                            04/13/92
Palo Verde II                                         Henderson, NV                             05/19/93
Woods Lane                                            Rogers, AR                                07/30/93
Crafton Place                                         Fayetteville, AR                          07/30/93
Guardian Place                                        Richmond, VA                              10/07/93
Twin Oaks Meadows                                     Lansing, MI                               10/29/93
Sunrise Terrace                                       Madera, CA                                11/24/93
Wynmor                                                Brooklyn Park, MN                         12/22/93
Citrus Glen                                           Orlando, FL                               12/30/93
St. Andrews Pointe                                    Columbia, SC                              01/05/94
Des Moines St. Village                                Des Moines, IA                            01/31/94
Fountain Lakes                                        Benton, AR                                02/02/94
Fairhaven Manor                                       Burlington, WA                            03/08/94
Grand Boulevard Renaissance                           Chicago, IL                               08/03/94
Los Claveles II                                       Trujillio Alto, PR                        08/31/94
Springwood                                            Tallahassee, FL                           12/15/94
Harford Commons                                       Baltimore, MD                             02/28/95
</TABLE>

Although the Fund's investments in Local Limited Partnerships are not subject to
seasonal fluctuations, the Fund's equity in losses of Local Limited
Partnerships, to the extent it reflects the operations of individual Properties,
may vary from quarter to quarter based upon changes in occupancy and operating
expenses as a result of seasonal factors.

Each Local Limited Partnership has as its general partners ("Local General
Partners") one or more individuals or entities not affiliated with the Fund or
its General Partners. In accordance with the partnership agreements under which
such entities are organized ("Local Limited Partnership Agreements"), the Fund
depends on the Local General Partners for the management of each Local Limited
Partnership. As of March 31, 2003, the following Local Limited Partnerships have
a common Local General Partner or affiliated group of Local General Partners
accounting for the specified percentage of the total capital contributions to
Local Limited Partnerships: (i) Oak Ridge Apartments, A Limited Partnership,
Santa Fe Oaks Phase II, A Limited Partnership, Springwood Apartments, A Limited
Partnership and St. Andrews Pointe Apartments, A Limited Partnership,
representing 23.92%, have Flournoy Development Company and John Flournoy as
Local General Partners; (ii) Woods Lane, A Limited Partnership, Crafton Place, A
Limited Partnership and Fountain Lakes, A Limited Partnership, representing
16.92%, have Lindsey Management Company as Local General Partner. The Local
General Partners of the remaining Local Limited Partnerships are identified in
the Acquisition Reports reported on Forms 8-K, which are herein incorporated by
reference.

The Properties owned by Local Limited Partnerships in which the Fund has
invested are, and will continue to be, subject to competition from existing and
future apartment complexes in the same areas. The success of the Fund will
depend on many outside factors, most of which are beyond the control of the Fund
and which cannot be predicted at this time. Such factors include general
economic and real estate market conditions, both on a national basis and in
those areas where the Properties are located, the availability and cost of
borrowed funds, real estate tax rates, operating expenses, energy costs and
governmental regulations. In addition, other risks inherent in real estate
investment may influence the ultimate success of the Fund, including: (i)
possible reduction in rental income due to an inability to maintain high
occupancy levels or adequate rental levels; (ii) possible adverse changes in
general economic conditions and adverse local conditions, such as competitive
over-building or a decrease in employment or adverse changes in real estate
laws, including building codes; and (iii) possible future adoption of rent
control legislation which would not permit increased costs to be passed on to
the tenants in the form of rent increases or which suppress the ability of the
Local Limited Partnerships to generate operating cash flow. Since some of the
Properties benefit from some form of governmental assistance, the Fund is
subject to the risks inherent in that area including decreased subsidies,
difficulties in finding suitable tenants and obtaining permission for rent
increases. In addition, any Tax Credits allocated to investors with respect to a
Property are subject to recapture to the extent that the Property or any portion
thereof ceases to qualify for the Tax Credits. Other future changes in federal
and state income tax laws affecting real estate ownership or limited
partnerships could have a material and adverse affect on the business of the
Fund.
<PAGE>
The Fund is managed by Arch Street VIII, Inc., the Managing General Partner of
the Fund. The other General Partner of the Fund is Arch Street VII Limited
Partnership. The Fund, which does not have any employees, reimburses Lend Lease
Real Estate Investments, Inc., ("Lend Lease") an affiliate of the General
Partners, for certain expenses and overhead costs. A complete discussion of the
management of the Fund is set forth in Item 9 of this Report.

Item 2.  Properties

The Fund owns limited partnership interests in nineteen Local Limited
Partnerships which own and operate Properties, some of which benefit from some
form of federal, state or local assistance programs and all of which qualify for
the Tax Credits added to the Code by the Tax Reform Act of 1986. The Fund's
ownership interest in each Local Limited Partnership is 99%, with the exception
of Springwood Apartments, which is 19.8%.

Each of the Local Limited Partnerships has received an allocation of Tax Credits
from the relevant state tax credit agency. In general, the Tax Credits run for
ten years from the date the Property is placed in service. The required holding
period (the "Compliance Period") of the Properties is fifteen years. During
these fifteen years, the Properties must satisfy rent restrictions, tenant
income limitations and other requirements, as promulgated by the Internal
Revenue Service, in order to maintain eligibility for the Tax Credit at all
times during the Compliance Period. Once a Local Limited Partnership has become
eligible for the Tax Credits, it may lose such eligibility and suffer an event
of recapture if its Property fails to remain in compliance with the
requirements. To date, none of the Local Limited Partnerships have suffered an
event of recapture of Tax Credits.

In addition, some of the Local Limited Partnerships have obtained one or a
combination of different types of loans such as: i) below market rate interest
loans; ii) loans provided by a redevelopment agency of the town or city in which
the Property is located at favorable terms; or iii) loans that have repayment
terms that are based on a percentage of cash flow.

The schedule on the following pages provides certain key information on the
Local Limited Partnership interests acquired by the Fund.


<PAGE>
<TABLE>
<CAPTION>






                                                Capital Contributions                  Mtge. loans                     Occupancy
Local Limited Partnership        Number       Total Committed      Paid Through        payable at                          at
Property Name                      of         at March 31,        March 31,            December 31,      Type of         March 31,
Property Location              Apt. Units         2003             2003                   2002          Subsidy*            2003
--------------------------------------     ------------------------------------ -   -----------------     -----------    -----------

Oak Ridge Apartments,
   A Limited Partnership
Oak Ridge
<S>                              <C>         <C>               <C>                       <C>                 <C>                <C>
Macon, GA                        152         $2,870,245        $2,870,245                $3,907,845          None               79 %

Santa Fe Oaks Phase II,
   A Limited Partnership
Santa Fe Oaks II
Gainesville, FL                  129          2,698,586         2,698,586                 3,534,793          None               88%

Andrew's Pointe Limited
   Partnership
Andrew's Pointe
Burnsville, MN                    57          1,333,800         1,333,800                 2,171,548          None              100%

Palo Verde II, A Nevada
   Limited Partnership
Palo Verde II
Henderson, NV                     60          1,324,801         1,324,801                 1,033,793          None               97%

Woods Lane, A Limited
   Partnership
Woods Lane
Rogers, AR                       156          2,574,180         2,574,180                 3,155,822          None              100%

Crafton Place, A Limited
   Partnership
Crafton Place
Fayetteville, AR                  84          1,365,120         1,365,120                 1,577,926          None               99%

</TABLE>

<PAGE>
<TABLE>
<CAPTION>



                                               Capital Contributions               Mtge. Loans                       Occupancy
Local Limited Partnership       Number      Total Committed     Paid Through        payable at                           at
Property Name                     of         at March 31,       March 31,         December 31,        Type of         March 31,
Property Location              Apt. Units        2003           2003                2002              Subsidy*          2003
-----------------------------------------    --------------     -------------------  ------------- --------------- --------------

Guardian Place
   Limited Partnership
Guardian Place
<S>                               <C>          <C>             <C>                      <C>                <C>                <C>
Richmond, VA                      120          2,174,390       2,174,390                2,885,796          None               99%

Twin Oaks Meadows Limited
   Dividend Housing Association
   Limited Partnership
Twin Oaks Meadows
Lansing, MI                        63          1,436,400       1,436,400                1,840,635          None               83%

Madera Sunrise Terrace
   Limited Partnership
Sunrise Terrace
Madera, CA                         52          1,523,196       1,523,196                  829,644          None               94%

Eden Park Limited
   Partnership
Wynmor
Brooklyn Park, MN                 324          5,527,758       5,527,758                 5,327,552          None               81%

Affordable Citrus Glen
   Limited Partnership
Citrus Glen
Orlando, FL                       176          4,581,360       4,581,360                 5,257,553          None               94%

St. Andrews Pointe Apartments,
A Limited Partnership
St. Andrews Pointe
Columbia, SC                      150          3,414,528       3,414,528                 4,434,807          None               95%

</TABLE>

<PAGE>
<TABLE>
<CAPTION>



                                         Capital Contributions                    Mtge. Loans                        Occupancy
Local Limited Partnership      Number   Total Committed   Paid Through             payable at                           At
Property Name                    of     at March 31,       March 31,               December 31,       Type of         March 31,
Property Location            Apt. Units     2003           2003                       2002           Subsidy*            2003
------------------     ----------------------------------------------------     -----------        -------------- ----------------

Des Moines Street Associates
   Limited Partnership
Des Moines St. Village
<S>                               <C>       <C>              <C>                       <C>              <C>                  <C>
Des Moines, IA                    42        1,083,996        1,083,996                 1,602,341        Section 8            93%

Fountain Lakes, A Limited
   Partnership
Fountain Lakes
Benton, AR                       180        2,854,593        2,854,593                 3,978,054          None               89%

Fairhaven Manor Limited
   Partnership
Fairhaven Manor
Burlington, WA                    40        1,232,020        1,232,020                   892,704          None               95%

Grand Boulevard Renaissance I
   Limited Partnership
Grand Boulevard Renaissance
Chicago, IL                       30        1,085,000          936,719                 1,831,423        Section 8            87%

Los Claveles, S.E. Limited
   Partnership
Los Claveles II
Trujilio Alto, PR                180        1,272,000        1,073,374                 9,512,354        Section 8            70%

Springwood Apartments,
   A Limited Partnership
Springwood
Tallahassee, FL                  113          624,805          624,805                 3,711,668          None               96%


</TABLE>
<PAGE>
<TABLE>
<CAPTION>

                                              Capital Contributions                Mtge. loans                          Occupancy
Local Limited Partnership       Number    Total Committed   Paid Through            payable at                              at
Property Name                    of       at March 31,       March 31,             December 31,           Type of         March 31,
Property Location              Apt. Units     2003             2003                     2002             Subsidy*            2003
----------------------------------------- -------------- -----------------       -----------------     -----------    -------------

BHP/Harford Commons
   Limited Partnership
Harford Commons
<S>                              <C>       <C>              <C>                      <C>                  <C>                <C>
Baltimore, MD                    30        1,187,000        1,128,000                1,736,092            None               90%
                               -----     ------------     ------------            -------------
                               2,138      $40,163,778      $39,757,871              $59,222,350
                               =====      ===========      ===========              ===========
</TABLE>

*              Section 8 This subsidy, which is authorized under Section 8 of
               Title II of the Housing and Community Development Act of 1974,
               allows qualified low-income tenants to pay 30% of their monthly
               income as rent with the balance paid by the federal government.





<PAGE>


                                      K-20
Two Local Limited Partnerships invested in by the Fund, Eden Park Limited
Partnership and Affordable Citrus Glen Limited Partnership represent more than
10% of the total capital contributions made to Local Limited Partnerships by the
Fund.

The Fund does not guarantee any of the mortgages or other debt of the Local
Limited Partnerships.

Duration of leases for occupancy in the Properties described above is generally
six to twelve months. The Managing General Partner believes the Properties
described herein are adequately covered by insurance.

Additional information required under this item, as it pertains to the Fund, is
contained in Items 1, 7 and 8 of this Report.

Item 3.  Legal Proceedings

The Fund is not a party to any pending legal or administrative proceeding, and
to the best of its knowledge, no legal or administrative proceeding is
threatened or contemplated against it.

Item 4.  Submission of Matters to a Vote of Security Holders
------------------------------------------------------------

None.
                                     PART II

Item 5.  Market for the Registrant's Units and Related Security Holder Matters

There is no public market for the Units, and it is not expected that a public
market will develop. If a Limited Partner desires to sell Units, the buyer of
those Units will be required to comply with the minimum purchase and retention
requirements and investor suitability standards imposed by applicable federal or
state securities laws and the minimum purchase and retention requirements
imposed by the Fund. The price to be paid for the Units, as well as the
commissions to be received by any participating broker-dealers, will be subject
to negotiation by the Limited Partner seeking to sell his Units. Units will not
be redeemed or repurchased by the Fund.

The Partnership Agreement does not impose on the Fund or its General Partners
any obligation to obtain periodic appraisals of assets or to provide Limited
Partners with any estimates of the current value of Units.

As of March 31, 2003, there were 2,421 record holders of Units of the Fund.

Cash distributions, when made, are paid annually. For the years ended March 31,
2003 and 2002, no cash distributions were made.

Item 6.  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 are including this statement for
purposes of complying with these safe harbor provisions. Although the Fund
believes the forward-looking statements are based on reasonable assumptions, the
Fund can give no assurance that their expectations will be attained. Actual
results and timing of certain events could differ materially from those
projected in or contemplated by the forward-looking statements due to a number
of factors, including, without limitation, general economic and real estate
conditions and interest rates.

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:
<PAGE>
The Fund accounts for its investments in Local Limited Partnerships using the
equity method of accounting because the Fund does not have control over the
major operating and financial policies of the Local Limited Partnerships in
which it invests. 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. Real estate experts
analyze the investments to determine if impairment indicators exist. If so, the
carrying value is compared to the undiscounted future cash flows expected to be
derived from the asset. If a significant impairment in carrying value exists, a
provision to write down the asset to fair value will be recorded in the Fund's
financial statements.

Newly Issued Accounting Standards

In January 2003, the FASB issued Interpretation No. 46 (FIN 46), "Consolidation
of Variable Interest Entities" an interpretation of ARB No. 51, which addresses
consolidation by business enterprises of variable interest entities ("VIEs").
VIEs are generally defined as entities that either: (1) do not have sufficient
equity investment at risk to permit the entity to finance its activities without
additional subordinated financial support, or (2) the equity investors lack an
essential characteristic of a controlling financial interest.

FIN 46 requires disclosure of VIEs in financial statements issued after January
31, 2003, if it is reasonably possible that as of the transition date: (1) the
Fund will be the primary beneficiary of an existing VIE that will require
consolidation or, (2) the Fund will hold a significant variable interest in, or
have significant involvement with, an existing VIE. Pursuant to the transitional
requirements of FIN 46, the guidance is effective as of the quarter beginning
July 1, 2003. Any VIEs created after January 31, 2003, are immediately subject
to the consolidation guidance in FIN 46.

The Managing General Partner is still assessing the impacts of this
interpretation. However, if a determination is made that the Local Limited
Partnerships met the definition of a VIE, it is reasonably possible that the
Fund will be considered the primary beneficiary of the Local Limited
Partnerships and therefore would need to consolidate these entities beginning on
July 1, 2003. The assets and liabilities of these entities at December 31, 2002
were approximately $80,686,000 and $66,612,000, respectively. While the Fund's
exposure to loss is limited to its equity investment in the local limited
partnerships, in the event that such entities are required to be consolidated by
the Fund effective July 1, 2003, it is likely that cumulative unrecognized
losses would need to be recorded by the Fund as of July 1, 2003. Cumulative
unrecognized losses from these entities were approximately $6,598,000 at March
31, 2003.

Effective April 1, 2002, the Fund adopted Statement of Financial Accounting
Standards ("SFAS") No. 144, "Accounting for the Impairment or Disposal of
Long-Lived Assets", which established standards for the way that public business
enterprises report information about long-lived assets that are either being
held for sale or have already been disposed of by sale or other means. Adoption
of SFAS No. 144 did not have a significant effect on the Fund's financial
statements.

Liquidity and capital resources

At March 31, 2003, the Fund had cash and cash equivalents of $1,535,666, as
compared with $1,193,303 at March 31, 2002. This increase is primarily due to
proceeds from sales and maturities of marketable securities in excess of
purchases of marketable securities and cash distributions received from Local
Limited Partnerships. These increases are partially offset by cash used for
operations and investments in and advances to Local Limited Partnerships.
<PAGE>
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 March 31, 2003, approximately $1,923,000 of cash, cash
equivalents and marketable securities has been designated as Reserves.

To date, professional fees relating to various Property issues totaling
approximately $135,000 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 March 31, 2003, the
Fund has advanced approximately $294,000 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 $195,000 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 March 31, 2003, 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 $258,000.

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 March 31, 2003, 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 in the two years ended March
31, 2003 and 2002. It is not expected that cash available for distribution, if
any, will be significant during the 2003 calendar year. Based on the results of
2002 operations, the Local Limited Partnerships are not expected to distribute
significant amounts of cash to the Fund because such amounts will 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.

Results of operations

2003 versus 2002

The Fund's results of operations for the year end March 31, 2003 resulted in a
net loss of $3,366,016 as compared to a net loss of $2,449,337 for the same
period in 2002. The increase in net loss is primarily attributable to an
increase in equity in losses of Local Limited Partnerships. Equity in losses of
Local Limited Partnerships increased primarily due to an increase in operating
expenses at several of the Local Limited Partnerships.

Low-income housing tax credits

The 2002 and 2001 Tax Credits were $146.79 and $146.80 per Unit, respectively.
The Tax Credits per Limited Partner stabilized in 1996 at approximately $147 per
Unit. The Tax Credits were expected to be stable for about seven years
subsequent to 1996 and then to decrease as certain Properties reach the end of
the ten year Tax Credit period. However, because the Compliance Periods should
extend significantly beyond the Tax Credit periods, the Fund is expected to
retain most of its interests in the Local Limited Partnerships for the
foreseeable future.
<PAGE>
Property discussions

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. A majority of the Properties in which the Fund
has an interest have stabilized operations and operate above break-even. A few
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. Also, the Managing General Partner, in the normal course of the
Fund's business, may desire to dispose of its interest in certain Local Limited
Partnerships. The following Property discussions focus only on such Properties.

Operations at Los Claveles II, located in Trujillio Alto, Puerto Rico, have
recently improved. 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 the subject. 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 has improved substantially.
Despite these improvements, significant risks to the Fund remain. The Property
continues to be in default of its first mortgage, which was restructured as part
of a workout in 1999. Debt service payments were supposed to commence in
November 2000; however none has been made to date, because turnaround efforts at
the Property were stalled for almost two years due to subsidy issues at Tower I.
Although the loan is technically in default, the workout agreement contains a
clause that obligates the lender to renegotiate the terms of the workout
agreement in the event that the terms of the agreement are not met.
Unfortunately, the negotiations have not yet concluded. The operating deficits
are funded from the capital improvement reserve set up as part of the 1999
workout of the Property, which means that there is less money to conduct capital
repairs as had been contemplated in the 1999 workout agreement. The Managing
General Partner is concerned about the Property's long-term viability and is
reviewing the Fund's options with respect to its interest in the Property.

As previously reported, Grand Boulevard Renaissance, located in Chicago,
Illinois, has been experiencing operating difficulties and has difficulties in
achieving debt service coverage. As a result, during 2001, the Local General
Partner negotiated with the lender to reduce the interest rate on the current
mortgage. However, the Property still struggles with a generally low quality
tenant base and, as a result, rent collection and eviction issues continue to
hamper operations. Currently, the Local General Partner is negotiating a
restructuring of the second mortgage loan on the Property, which is held by the
Illinois Housing Development Authority ("IHDA"). The Managing General Partner's
consent will be needed before the Local General Partner can agree to a workout
with IHDA.

Operations at Oak Ridge, located in Macon, Georgia, continue to suffer primarily
due to low occupancy and rental rates. The low occupancy is generally
attributable to a lack of public transportation near the site. Although net
operating income increased significantly during each of the past two years, the
Property's net operating income is insufficient to meet debt service payments.
The Local General Partner has advanced 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 as well as to explore a potential loan workout with the
lender.

Although operations at Palo Verde II, located in Henderson, Nevada, remain
strong, the Local General Partner filed for bankruptcy protection and refused to
send 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 has assumed the Local General Partner interest and is seeking an
acceptable replacement Local General Partner.

Other Transactions

On May 15, 2003, MuniMae Midland announced its intention to acquire Lend Lease's
Housing and Community Investing (HCI) business. The newly formed organization,
MMA Financial, will combine HCI with MuniMae Midland, a provider of debt and
equity financing solutions for the affordable housing market. The transaction
remains subject to final due diligence, legal agreements and regulatory
approvals with no guarantee that the acquisition will be completed. The two
companies are targeting to complete the transaction by July 1, 2003.
<PAGE>
Inflation and other economic factors

Inflation had no material impact on the operations or financial condition of the
Fund for the years ended March 31, 2003 and 2002.

Since some Properties benefit from some form of government assistance, the Fund
is subject to the risks inherent in that area including decreased subsidies,
difficulties in finding suitable tenants and obtaining permission for rent
increases. In addition, the Tax Credits allocated to investors with respect to a
Property are subject to recapture to the extent that a Property or any portion
thereof ceases to qualify for Tax Credits.

Certain Properties in which the Fund has invested are located in areas suffering
from poor economic conditions. Such conditions could have an adverse effect on
the rent or occupancy levels at such Properties. Nevertheless, the Managing
General Partner believes that the generally high demand for below market rate
housing will tend to negate such factors. However, no assurance can be given in
this regard.

Item 7.  Financial Statements and Supplementary Data

Information required under this Item is submitted as a separate section of this
Report. See Index on page F-1 hereof.

Item 8.  Changes in and Disagreements with Accountants on Accounting and
Financial Disclosure
------------------------------------------------------------------------------

None.
                                    PART III

Item 9.  Directors and Executive Officers of the Registrant

The Managing General Partner of the Fund is Arch Street VIII, Inc., a
Massachusetts corporation (the "Managing General Partner"), an affiliate of Lend
Lease. The Managing General Partner was incorporated in September 1992. The
Investment Committee of the Managing General Partner approved all investments.
The names and positions of the principal officers and the directors of the
Managing General Partner are set forth below.

     Name                              Position

Jenny Netzer               Principal, Head of Housing and Community Investment
Michael H. Gladstone       Principal, Member
Lauren M. Guillette        Principal, Member

The other General Partner of the Fund is Arch Street VII Limited  Partnership,
a Massachusetts  limited  partnership ("Arch Street VII L.P.")
that was organized in September 1992.  The managing general partner of Arch
Street VII L.P. is Arch Street VII, Inc.

The Managing General Partner provides day-to-day management of the Fund.
Compensation is discussed in Item 10 of this report. Such day-to-day management
does not include the management of the Properties.

The business experience of each of the persons listed above is described below.
There is no family relationship between any of the persons listed in this
section.
<PAGE>
Jenny Netzer, age 47, Principal, Head of Housing and Community Investment Group
- Ms. Netzer is responsible for tax credit investment programs to institutional
clients. She joined Lend Lease as a result of the Boston Financial acquisition,
starting with Boston Financial in 1987 and leading Boston Financial's new
business initiatives and managing the firm's Asset Management division. Prior to
joining Boston Financial, Ms. Netzer served as Deputy Budget Director for the
Commonwealth of Massachusetts where she was responsible for the Commonwealth's
health care and public pension program's budgets. Ms. Netzer also served as
Assistant Controller at Yale University, was a former member of Watertown Zoning
Board of Appeals, the Officer of Affordable Housing Tax Credit Coalition and a
frequent speaker on affordable housing and tax credit industry issues. Ms.
Netzer is a graduate of Harvard University (BA) and Harvard's Kennedy School of
Government (MPP).

Michael H. Gladstone, age 46, Principal, Member - Mr. Gladstone is responsible
for legal work in the areas of affordable and conventional housing and
investment products and services. He joined Lend Lease as a result of the Boston
Financial acquisition, starting with Boston Financial in 1985 as the firm's
General Counsel. Prior to joining Boston Financial, Mr. Gladstone was associated
with the law firm of Herrick & Smith and served on the advisory board of the
Housing and Development Reporter. Mr. Gladstone lectured at Harvard University
on affordable housing matters and is a member of the National Realty Committee,
Cornell Real Estate Council, National Association of Real Estate Investment
Managers and Massachusetts Bar. Mr. Gladstone is a graduate of Emory University
(BA) and Cornell University (J.D. & MBA).

Lauren M. Guillette, age 38, Principal, Member - Ms. Guillette is responsible
for legal work in the areas of affordable and conventional housing and
investment products and services. She joined Lend Lease as a result of the
Boston Financial acquisition, starting with Boston Financial in 1996 as the
firm's Assistant General Counsel. Prior to joining Boston Financial, Ms.
Guillette was associated with the law firm of Peabody & Brown where she
practiced real estate syndication and securities law. Ms. Guillette is a
graduate of McGill University (BA) and Suffolk University (J.D.).

Item 10.  Management Remuneration

Neither the directors nor officers of Arch Street VIII, Inc., nor the partners
of Arch Street VII L.P., nor any other individual with significant involvement
in the business of the Fund receives any current or proposed remuneration from
the Fund.

Item 11.  Security Ownership of Certain Beneficial Owners and Management

As of March 31, 2003, the following is the only entity known to the Fund to be
the beneficial owner of more than 5% of the Units outstanding:
<TABLE>
<CAPTION>

                                                                                                 Amount
     Title of                     Name and Address of                 Beneficially               Percent
     Class                         Beneficial Owner                       Owned                 of Class
------------------       -------------------------------------       ----------------        ---------------

<S>                      <C>                                           <C>                       <C>
Limited Partner          Oldham Institutional Tax Credits LLC          5,349 units               10.5%
                         101 Arch Street
                         Boston, MA
</TABLE>

Oldham Institutional Tax Credits LLC is an affiliate of Arch Street VIII, Inc.,
 the Managing General Partner.

The equity securities registered by the Fund under Section 12(g) of the Act
consist of 100,000 Units, 50,930 of which were sold to the public. The remaining
Units were deregistered in Post-Effective Amendment No. 4 dated January 20,
1995, which is herein incorporated by reference. Holders of Units are permitted
to vote on matters affecting the Fund only in certain unusual circumstances and
do not generally have the right to vote on the operation or management of the
Fund.

Arch Street VII L.P. owns five (unregistered) Units not included in the Units
sold to the public.

Except as described in the preceding paragraphs, neither Arch Street VIII, Inc.,
Arch Street VII L.P., Lend Lease nor any of their executive officers, directors,
partners or affiliates is the beneficial owner of any Units. None of the
foregoing persons possesses a right to acquire beneficial ownership of Units.
<PAGE>
The Fund does not know of any existing arrangement that might at a later date
result in a change in control of the Fund.

Item 12.  Certain Relationships and Related Transactions

The Fund was required to pay certain fees to and reimburse certain expenses of
the Managing General Partner or its affiliates in connection with the
organization of the Fund and the offering of Units. The Fund is also required to
pay certain fees to and reimburse certain expenses of the Managing General
Partner or its affiliates in connection with the administration of the Fund and
its acquisition and disposition of investments in Local Limited Partnerships. In
addition, the General Partners are entitled to certain Fund distributions under
the terms of the Partnership Agreement. Also, an affiliate of the General
Partners will receive up to $10,000 from the sale or refinancing proceeds of
each Local Limited Partnership, if it is still a limited partner at the time of
such transaction. All such fees, expenses and distributions paid during the
years ended March 31, 2003 and 2002 are described below and in the sections of
the Prospectus entitled "Estimated Use of Proceeds", "Management Compensation
and Fees" and "Profits and Losses for Tax Purposes, Tax Credits and Cash
Distributions." Such sections are incorporated herein by reference.

The Fund is permitted to enter into transactions involving affiliates of the
Managing General Partner, subject to certain limitations established in the
Partnership Agreement.

Information regarding the Fees paid and expense reimbursements made in the two
years ended March 31, 2003 is presented as follows:

Organizational fees and expenses and selling expenses

In accordance with the Partnership Agreement, the Fund is required to pay
certain fees to and reimburse expenses of the Managing General Partner and
others in connection with the organization of the Fund and the offering of its
Limited Partnership Units. Commissions, fees and accountable expenses related to
the sale of the Units totaling $6,304,898 were charged directly to Limited
Partners' equity. In connection therewith, $4,329,050 of selling expenses and
$1,975,848 of offering expenses incurred on behalf of the Fund have been paid to
an affiliate of the Managing General Partner. In addition, the Fund has paid
$50,000 in organization costs to an affiliate of the Managing General Partner.
This cost has been included in the balance sheet. Total organization and
offering expenses, exclusive of selling commissions and underwriting advisory
fees, did not exceed 5.5% of the Gross Proceeds, and organizational and offering
expenses, inclusive of selling commissions and underwriting advisory fees, did
not exceed 15.0% of the Gross Proceeds. No organizational fees and expenses were
paid during the two years ended March 31, 2003.

Acquisition fees and expenses

In accordance with the Partnership Agreement, the Fund was required to pay
acquisition fees to and reimburse acquisition expenses of the Managing General
Partner or its affiliates for selecting, evaluating, structuring, negotiating
and closing the Fund's investments in Local Limited Partnerships. Acquisition
fees totaled 6% of the Gross Proceeds. Acquisition expenses, which include legal
fees and expenses, travel and communications expenses, costs of appraisals and
accounting fees and expenses, totaled 1.5% of the Gross Proceeds. Acquisition
fees totaling $3,055,800 for the closing of the Fund's Local Limited Partnership
investments were paid to an affiliate of the Managing General Partner. Of this
amount, approximately $2,567,000 is included as capital contributions to Local
Limited Partnerships. Acquisition expenses totaling $763,950 were incurred and
have been reimbursed to an affiliate of the Managing General Partner. No
acquisition fees or expenses were paid during the two years ended March 31,
2003.

Asset management fees

In accordance with the Partnership Agreement, an affiliate of the Managing
General Partner is paid an annual fee for services in connection with the
administration of the affairs of the Fund. The affiliate currently receives 0.5%
(annually adjusted by the CPI factor) of Gross Proceeds as the annual Asset
Management Fee. Fees earned during the years ended March 31, 2003 and 2002 are
as follows:
<PAGE>
                                                2003             2002
                                          --------------    -------------

   Asset management fees                 $      319,023    $     313,377


Salaries and benefits expense reimbursements

An affiliate of the Managing General Partner is reimbursed for the cost of the
Fund's salaries and benefits expenses. The reimbursements are based upon the
size and complexity of the Fund's operations. Reimbursements paid or payable
during the years ended March 31, 2003 and 2002 are as follows:

                                                       2003             2002
                                                 --------------    -------------

   Salaries and benefits expense reimbursements $      132,534    $      73,936

Cash distributions paid to the General Partners

In accordance  with the  Partnership  Agreement,  the General  Partners of the
Fund,  Arch Street VIII,  Inc. and Arch Street VII L.P.,receive 1% of cash
distributions paid to partners.  To date, the Fund has not paid any cash
distributions to partners.

Additional information concerning cash distributions and other fees paid or
payable to the Managing General Partner and its affiliates and the reimbursement
of expenses paid or payable to Lend Lease and its affiliates during the years
ended March 31, 2003 and 2002 is presented in Note 5 to the Financial
Statements.

Item 13.  Exhibits, Financial Statement Schedules and Reports on Form 8-K

(a) Documents filed as a part of this Report

In response to this portion of Item 13, the financial statements and the
auditors' report relating thereto are submitted as a separate section of this
Report. See Index to the financial statements on page F-1 hereof.

All other financial statement schedules and exhibits for which provision is made
in the applicable accounting regulations of the Securities and Exchange
Commission are not required under related instructions or are inapplicable and
therefore have been omitted.

(b)      Exhibits

     99.1 Certification of Jenny Netzer pursuant to section 906 of the
Sarbanes-Oxley Act of 2002.

(c) Reports on Form 8-K

     No Reports on Form 8-K were filed during the year end March 31, 2003.


<PAGE>


                             CONTROLS AND PROCEDURES



Controls and Procedures

Based on the Fund's evaluation within 120 days prior to filing this Form 10-KSB,
the Fund's director has concluded that the Fund's disclosure controls and
procedures are effective to ensure that information required to be disclosed in
the reports that the Fund files or submits under the Securities Exchange Act of
1934 is recorded, processed, summarized and reported within the time periods
specified in the Securities and Exchange Commission's rules and forms.

There have been no significant changes in the Fund's internal controls or in
other factors that could significantly affect those controls subsequent to the
date of their evaluation.


<PAGE>


                                   SIGNATURES



Pursuant to the requirements of Section 13 or 15(d) 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.

      BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED PARTNERSHIP

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


     By:   /s/Jenny Netzer                           Date:    June 27, 2003
           ---------------------------------------            -------------
           Jenny Netzer
           Principal, Head of Housing and
           Community Investment


Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed by the following persons on behalf of the Managing General
Partner of the Fund and in the capacities and on the dates indicated:

     By:   /s/Jenny Netzer                            Date:    June 27,  2003
           ---------------------------------------            --------------
           Jenny Netzer
           Director


     By:   /s/Michael H. Gladstone                    Date:   June 27, 2003
           -----------------------------                    --------------
           Michael H. Gladstone
           Director




<PAGE>


I, Jenny Netzer, certify that:

1.   I have reviewed this annual report on Form 10-KSB of Boston Financial Tax
     Credit Fund VII:

2.   Based on my knowledge, this annual report does not contain any untrue
     statement of a material fact or omit to state a material fact necessary to
     make the statements made, in light of the circumstances under which such
     statements were made, not misleading with respect to the period covered by
     this annual report;

3.   Based on my knowledge, the financial statements, and other financial
     information included in this annual report, fairly present in all material
     respects the financial condition, results of operations and cash flows of
     the registrant as of, and for, the periods presented in this annual report;

4.   The registrant's other certifying officers and I are responsible for
     establishing and maintaining disclosure controls and procedures (as defined
     in Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:

a.   designed such disclosure controls and procedures to ensure that material
     information relating to the registrant, including its consolidated
     subsidiaries, is made known to us by others within those entities,
     particularly during the period in which this annual report is being
     prepared;

b.   evaluated the effectiveness of the registrant's disclosure controls and
     procedures as of a date within 120 days prior to the filing date of this
     annual report (the "Evaluation Date"); and

c.   presented in this quarterly report our conclusions about the effectiveness
     of the disclosure controls and procedures based on our evaluation as of the
     Evaluation Date;

5.   The registrant's other certifying officers and I have disclosed, based on
     our most recent evaluation, to the registrant's auditors and the audit
     committee of registrant's board of directors (or persons performing the
     equivalents functions):

a.   all significant deficiencies in the design or operation of internal
     controls which could adversely affect registrant's ability to record,
     process, summarize and report financial data and have identified for the
     registrant's auditors any material weaknesses in internal controls; and

b.   any fraud, whether or not material, that involves management or other
     employees who have a significant role in the registrant's internal
     controls; and

6.   The registrant's other certifying officers and I have indicated in this
     annual report whether or not there were significant changes in internal
     controls or in other factors that could significantly affect internal
     controls subsequent to the date of our most recent evaluation, including
     any corrective actions with regard to significant deficiencies and material
     weaknesses.


Date:  June 27, 2003              /s/ Jenny Netzer
                                  -----------------------------------
                                  Jenny Netzer
                                  Principal, Head of Housing and
                                  Community Investment


<PAGE>






                CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,
                    AS ADOPTED PURSUANT TO SECTION 906 OF THE
                           SARBANES-OXLEY ACT OF 2002


In connection with the Annual Report of Boston Financial Tax Credit Fund VII
(the "Fund") on Form 10-KSB for the year ending March 31, 2003 as filed with the
Securities and Exchange Commission on the date hereof (the "Report"), the
undersigned, the Principal, hereby certifies pursuant to 18 U.S.C. Section 1350,
as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1.   the Report fully complies with the requirements of Section 13(a) or 15(d)
of the Securities Exchange Act of 1934; and

2.   the information contained in the Report fairly presents, in all material
     respects, the financial condition and results of operations of the Fund.



                                  /s/ Jenny Netzer
                                  Jenny Netzer
                                  Principal, Head of Housing and
                                  Community Investment

                                   Date:  June 27, 2003
<PAGE>
           BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED PARTNERSHIP

         ANNUAL REPORT ON FORM 10-KSB FOR THE YEAR ENDED MARCH 31, 2003
                                      INDEX
<TABLE>
<CAPTION>


                                                                               Page No.


Report of Independent Accountants
<S>                                                                              <C>
   For the years ended March 31, 2003 and 2002                                   F-2

Financial Statements

   Balance Sheet - March 31, 2003                                                F-3

   Statements of Operations - For the years ended
     March 31, 2003 and 2002                                                     F-4

   Statements of Changes in Partners' Equity (Deficiency) -
     For the years ended March 31, 2003 and 2002                                 F-5

   Statements of Cash Flows - For the years ended
     March 31, 2003 and 2002                                                     F-6

   Notes to the Financial Statements                                             F-7



</TABLE>
<PAGE>







                        Report of Independent Accountants


To the Partners of
Boston Financial Tax Credits Fund VII, A Limited Partnership:


In our opinion, based upon our audits and the reports of other auditors, the
financial statements listed in the accompanying index present fairly, in all
material respects, the financial position of Boston Financial Tax Credits Fund
VII, A Limited Partnership (the "Fund") as of March 31, 2003, and the results of
its operations and its cash flows for each of the two years in the period ended
March 31, 2003 in conformity with accounting principles generally accepted in
the United States of America. These financial statements are the responsibility
of the Fund's management; our responsibility is to express an opinion on these
financial statements based on our audits. The Fund accounts for its investment
in Local Limited Partnerships, as discussed in Note 2 of the notes to the
financial statements, using the equity method of accounting. We did not audit
the financial statements of the Local Limited Partnerships, investments in which
the Fund's investment in Local Limited Partnerships is stated at $15,167,615 at
March 31, 2003, and the Fund's equity in earnings (losses) of Local Limited
Partnerships is stated at $(2,722,550) and $(1,935,341) for the years ended
March 31, 2003 and 2002, respectively. The financial statements of these Local
Limited Partnerships were audited by other auditors whose reports thereon have
been furnished to us, and our opinion expressed herein, insofar as it relates to
amounts included for Local Limited Partnerships, is based solely upon the
reports of other auditors. We conducted our audits of the Fund's financial
statements in accordance with auditing standards generally accepted in the
United States of America which require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits and the reports of the other auditors provide a reasonable basis for our
opinion.

As described in Note 8, the Partnership adopted the provisions of Statement of
Financial Accounting Standards No. 144, "Accounting for the Impairment or
Disposal of Long-Lived Assets" as of April 1, 2002.


/s/PricewaterhouseCoopers LLP
June 24, 2003
Boston, Massachusetts

<PAGE>


           BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED PARTNERSHIP


                                  BALANCE SHEET
                                 MARCH 31, 2003


<TABLE>
<CAPTION>


Assets

<S>                                                                                       <C>
Cash and cash equivalents                                                                 $    1,535,666
Marketable securities, at fair value (Note 3)                                                    644,725
Restricted cash (Notes 4 and 6)                                                                  243,304
Investments in Local Limited Partnerships (Note 4)                                            15,167,615
Other assets                                                                                       7,959
                                                                                          --------------
     Total Assets                                                                         $   17,599,269
                                                                                          ==============


Liabilities and Partners' Equity

Due to affiliates (Notes 4 and 5)                                                         $      232,260
Accrued expenses                                                                                  34,180
                                                                                          --------------
     Total Liabilities                                                                           266,440
                                                                                          --------------

Commitments (Note 6)

General, Initial and Investor Limited Partners' Equity                                        17,312,214
Net unrealized gains on marketable securities                                                     20,615
                                                                                          --------------
     Total Partners' Equity                                                                   17,332,829
                                                                                          --------------
     Total Liabilities and Partners' Equity                                               $   17,599,269
                                                                                          ==============
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 Years Ended March 31, 2003 and 2002


<TABLE>
<CAPTION>

                                                                                    2003                2002
                                                                                -------------      -------------
Revenue:
<S>                                                                             <C>                <C>
   Investment                                                                   $      66,812      $     119,899
   Other                                                                               32,670             30,495
                                                                                --------------       ------------
 Total Revenue                                                                         99,482            150,394
                                                                                -------------        ------------

Expenses:
   Asset management fees, affiliate (Note 5)                                          319,023            313,377
   General and administrative expenses (includes
     reimbursements to an affiliate in the amounts of
     $132,534 and $73,936 in 2003 and 2002, respectively)
      (Note 5)                                                                        270,161            202,417
   Provision for valuation of advances to
     Local Limited Partnerships (Note 4)                                              123,142            117,973
   Amortization                                                                        30,622             30,623
                                                                                -------------      -------------
       Total Expenses                                                                 742,948            664,390
                                                                                -------------      -------------

Loss before equity in losses of
   Local Limited Partnerships                                                        (643,466)          (513,996)

Equity in losses of
   Local Limited Partnerships (Note 4)                                             (2,722,550)        (1,935,341)
                                                                                -------------      -------------

Net Loss                                                                        $  (3,366,016)     $  (2,449,337)
                                                                                =============      =============

Net Loss allocated:
   General Partners                                                             $     (33,660)     $     (24,493)
   Limited Partners                                                                (3,332,356)        (2,424,844)
                                                                                -------------      -------------
                                                                                $  (3,366,016)     $  (2,449,337)
                                                                                =============      =============
Net Loss per Limited Partner Unit
   (50,930 Units)                                                               $     (65.43)      $     (47.61)
                                                                                ============       ============

</TABLE>

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

          BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED PARTNERSHIP

             STATEMENTS OF CHANGES IN PARTNERS' EQUITY (DEFICIENCY)
                   For the Years Ended March 31, 2003 and 2002


<TABLE>
<CAPTION>

                                                       Initial       Investor           Net
                                       General         Limited        Limited       Unrealized
                                       Partners        Partner        Partners         Gains            Total
                                      -----------    -------------   -----------     ----------       ---------

<S>                                   <C>            <C>          <C>               <C>            <C>
Balance at March 31, 2001             $  (213,046)   $   5,000    $   23,335,613    $    24,952    $  23,152,519
                                      -----------    ---------    --------------    -----------    -------------

Comprehensive Loss:
   Change in net unrealized gains
     on marketable securities
     available for sale                         -            -                 -         (4,500)          (4,500)
     Net Loss                             (24,493)           -        (2,424,844)             -       (2,449,337)
                                       -----------    --------     --------------    -----------   -------------
Comprehensive Loss                        (24,493)           -        (2,424,844)        (4,500)      (2,453,837)
                                      -----------    ---------    --------------    -----------    -------------

Balance at March 31, 2002                (237,539)       5,000        20,910,769         20,452       20,698,682
                                      -----------    ---------    --------------    -----------    -------------

Comprehensive Income (Loss):
   Change in net unrealized gains
     on marketable securities
     available for sale                         -            -                 -            163              163
     Net Loss                             (33,660)           -        (3,332,356)             -       (3,366,016)
                                      -----------    ---------    --------------    -----------    -------------
Comprehensive Income (Loss)               (33,660)           -        (3,332,356)           163       (3,365,853)
                                      -----------    ---------    --------------    -----------    -------------

Balance at March 31, 2003             $  (271,199)   $   5,000    $   17,578,413    $    20,615    $  17,332,829
                                      ===========    =========    ==============    ===========    =============

</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 Years Ended March 31, 2003 and 2002



<TABLE>
<CAPTION>
                                                                                    2003              2002
                                                                                -------------    -------------
Cash flows from operating activities:
<S>                                                                             <C>              <C>
   Net Loss                                                                     $  (3,366,016)   $  (2,449,337)
   Adjustments to reconcile net loss
     to net cash used for operating activities:
     Equity in losses of Local Limited Partnerships                                 2,722,550        1,935,341
     Provision for valuation of advances to
       Local Limited Partnerships                                                     123,142          117,973
     Amortization                                                                      30,622           30,623
     Net gain on sales of marketable securities                                         (918)           (4,559)
     Increase (decrease) in cash arising from
     changes in operating assets and liabilities:
       Restricted cash                                                                 10,664           44,104
       Other assets                                                                     8,017           10,740
       Due to affiliates                                                               28,864            4,844
       Accrued expenses                                                                (1,320)         (34,498)
                                                                                -------------    -------------
Net cash used for operating activities                                               (444,395)        (344,769)
                                                                                -------------    -------------

Cash flows from investing activities:
   Investments in Local Limited Partnerships                                         (165,000)         (53,718)
   Advances to Local Limited Partnerships                                            (123,142)        (117,973)
   Purchases of marketable securities                                                (900,193)        (900,589)
   Proceeds from sales and maturities
     of marketable securities                                                       1,700,897        1,594,146
   Cash distributions received from Local
     Limited Partnerships                                                             274,196          409,114
                                                                                -------------    -------------
Net cash provided by investing activities                                             786,758          930,980
                                                                                -------------    -------------

Net increase in cash and cash equivalents                                             342,363          586,211

Cash and cash equivalents, beginning                                                1,193,303          607,092
                                                                                -------------    -------------

Cash and cash equivalents, ending                                               $   1,535,666    $   1,193,303
                                                                                =============    =============

</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


1.   Organization

Boston Financial Tax Credit Fund VII, A Limited Partnership (the "Fund") is a
Massachusetts limited partnership organized to invest in other limited
partnerships ("Local Limited Partnerships") which own and operate apartment
complexes which are eligible for low income housing tax credits which may be
applied against the federal income tax liability of an investor. The Fund's
objective 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 Lend Lease Real Estate
Investments, Inc. ("Lend Lease"). The fiscal year of the Fund ends on March 31.

The Partnership Agreement authorizes the sale of up to 100,000 Units of limited
partnership interest ("Units") at $1,000 per Unit. In total, the Fund received
$50,930,000 of capital contributions from investors admitted as Limited Partners
for 50,930 Units. On November 30, 1993, the Fund held its final investor
closing.

Under the terms of the Partnership Agreement, the Fund originally designated 5%
of the Gross Proceeds from the sale of Units as a reserve for working capital of
the Fund and contingencies related to ownership of Local Limited Partnership
interests. The Managing General Partner may increase or decrease such amounts
from time to time as it deems appropriate. At March 31, 2003, the Managing
General Partner has designated approximately $1,923,000 of cash, cash
equivalents and marketable securities as such Reserve.

Generally, profits, losses, tax credits and cash flow from operations are
allocated 99% to the Limited Partners and 1% to the General Partner. Net
proceeds from a sale or refinancing will be allocated 95% to the Limited
Partners and 5% to the General Partner after certain priority payments. The
General Partner has an obligation to fund deficits in its capital account,
subject to limits set forth in the Partnership Agreement.

2.   Significant Accounting Policies

Cash Equivalents

Cash equivalents represent short-term, highly liquid instruments with original
maturities of 90 days or less. At times, cash and cash equivalents exceed
federally insurable limits. The Fund mitigates this risk by investing in major
financial institutions.

Marketable Securities

The Fund's investments in securities are classified as "Available for Sale"
securities and reported at fair value as reported by the brokerage firm at which
the securities are held. All marketable securities have fixed maturities.
Realized gains or losses from sales of securities are based on the specific
identification method. Unrealized gains and losses are excluded from earnings
and reported as a separate component of partners' equity.

Investments in Local Limited Partnerships

The Fund accounts for its investments in Local Limited Partnerships using the
equity method of accounting because the Fund does not have control over the
major operating and financial policies of the Local Limited Partnerships in
which it invests. 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

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



                  NOTES TO THE FINANCIAL STATEMENTS (Continued)


2.       Significant Accounting Policies (continued)

Investments in Local Limited Partnerships (continued)

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 Tax Credits generated by Local Limited Partnerships are not reflected on the
books of the Fund as such credits are allocated to partners for use in
offsetting their Federal income tax liability.

Excess investment costs over the underlying net assets acquired have arisen from
acquisition fees paid and expenses reimbursed to an affiliate of the Fund. These
fees and expenses are included in the Fund's investments in Local Limited
Partnerships and are being amortized on a straight-line basis over 35 years
until a Local Limited Partnership's respective investment balance has been
reduced to zero.

The Fund provides advances to the Local Limited Partnerships to finance
operations or to make debt service payments. The Fund assesses the
collectibility of these advances at the time the advance is made and records a
reserve if collectibility is not reasonably assured.

The Fund does not guarantee any of the mortgages or other debt of the Local
Limited Partnerships.

The Fund, as a limited partner in the Local Limited Partnerships, is subject to
risks inherent in the ownership of property which are beyond its control, such
as fluctuations in occupancy rates and operating expenses, variations in rental
schedules, proper maintenance and continued eligibility of tax credits. If the
cost of operating a Property exceeds the rental income earned thereon, the Fund
may deem it in its best interest to voluntarily provide funds in order to
protect its investment.

The General Partners have decided 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 December 31, 2002 and 2001.

The Fund has implemented policies and practices for assessing potential
impairment of its investments in Local Limited Partnerships. Real estate experts
analyze the investments to determine if impairment indicators exist. If so, the
carrying value is compared to the undiscounted future cash flows expected to be
derived from the asset. If a significant impairment in carrying value exists, a
provision to write down the asset to fair value will be recorded in the Fund's
financial statements.

Use of Estimates

The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets,
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates.

Income Taxes

No provision for income taxes has been made, as the liability for such taxes is
an obligation of the partners of the Fund.


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


                  NOTES TO THE FINANCIAL STATEMENTS (Continued)

<TABLE>
<CAPTION>

3.   Marketable Securities

A summary of marketable securities is as follows:
                                                                 Gross           Gross
                                                              Unrealized     Unrealized        Fair
                                                Cost             Gains         Losses          Value
Debt securities issued by
   the US Treasury and other
   US government corporations
<S>                                          <C>              <C>            <C>            <C>
   and agencies                              $     599,173    $    19,348    $        -     $    618,521

Mortgage backed securities                          24,937          1,267              -          26,204
                                             -------------    ------------   -----------    -------------

Marketable securities at
   March 31, 2003                            $     624,110    $    20,615    $         -    $    644,725
                                             =============    ===========    ===========    =============

The contractual maturities at March 31, 2003 are as follows:
                                                                                                Fair
                                                                            Cost                Value

Due in less than one year                                               $    499,486        $    514,771
Due in one to five years                                                      99,687             103,750
Mortgage backed securities                                                    24,937              26,204
                                                                        ------------        ------------
                                                                        $    624,110        $    644,725
                                                                        ============        ============
</TABLE>

Actual maturities for asset backed securities may differ from contractual
maturities because some borrowers have the right to call or prepay obligations.
Proceeds from the maturities of marketable securities were approximately
$1,600,000 and $1,594,000 during the fiscal years ended March 31, 2003 and 2002,
respectively. Proceeds from the sales of Marketable securities were
approximately $101,000 during the year ended March 31, 2003. Included in
investment income are gross gains of $3,482 and $4,712 and gross losses of
$2,564 and $153 that were realized on the sales during the years ended March 31,
2003 and 2002, respectively.




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


                  NOTES TO THE FINANCIAL STATEMENTS (Continued)


4.   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. Upon
dissolution of the Local Limited Partnerships, proceeds will be distributed
according to the respective Local Limited Partnership agreements.

The following is a summary of investments in Local Limited Partnerships at March
31, 2003:
<TABLE>
<CAPTION>

Capital contributions and advances paid to Local Limited
   Partnerships and purchase price paid to withdrawing
<S>                                                                                            <C>
   partners of Local Limited Partnerships                                                      $    40,051,925

Cumulative equity in losses of Local Limited Partnerships
   (excluding cumulative unrecognized losses of $6,597,931)                                        (23,904,853)

Cumulative cash distributions received from Local Limited Partnerships                              (1,658,225)
                                                                                               ---------------

Investments in Local Limited Partnerships before adjustments                                        14,488,847

Excess investment costs over the underlying assets acquired:

   Acquisition fees and expenses                                                                     1,252,338

   Cumulative amortization of acquisition fees and expenses                                           (279,515)
                                                                                               ---------------

Investments in Local Limited Partnerships before reserve for valuation                              15,461,670

Reserve for valuation of investments in Local Limited Partnerships                                    (294,055)
                                                                                               ---------------

Investments in Local Limited Partnerships                                                      $    15,167,615
                                                                                               ===============
</TABLE>

For the year ended March 31, 2003, the Fund advanced $123,142 to two of the
Local Limited Partnerships, all of which was reserved. The Fund has recorded a
reserve for valuation for its investments in certain Local Limited Partnerships
in order to appropriately reflect the estimated net realizable value of these
investments.


<PAGE>

          BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED PARTNERSHIP

                  NOTES TO THE FINANCIAL STATEMENTS (Continued)


4. Investments in Local Limited Partnerships (continued)

Summarized financial information of the Local Limited Partnerships in which the
Fund has invested as of December 31, 2002 and 2001 (due to the Fund's policy of
reporting the financial information of its Local Limited Partnership interests
on a 90 day lag basis) is as follows:

Summarized Balance Sheets - as of December 31,
<TABLE>
<CAPTION>

                                                                                 2002                  2001
                                                                           ---------------       ---------------
Assets:
<S>                                                                        <C>                   <C>
   Investment property, net                                                $    74,921,494       $    77,922,494
   Other assets                                                                  5,764,046             6,748,458
                                                                           ---------------       ---------------
Total Assets                                                               $    80,685,540       $    84,670,952
                                                                           ===============       ===============

Liabilities and Partners' Equity:
   Mortgage notes payable                                                  $    59,222,350       $    59,821,045
   Other debt                                                                    7,389,209             6,533,370
                                                                           ---------------       ---------------
     Total Liabilities                                                          66,611,559            66,354,415
                                                                           ---------------       ---------------

Fund's equity                                                                    7,362,019            11,007,888
Other partners' equity                                                           6,711,962             7,308,649
                                                                           ---------------       ---------------
     Total Partners' Equity                                                     14,073,981            18,316,537
                                                                           ---------------       ---------------
       Total Liabilities and Partners' Equity                              $    80,685,540       $    84,670,952
                                                                           ===============       ===============

Summarized Statements of Operations -
for the years ended December 31,
                                                                                 2002                  2001
                                                                           ---------------       ---------------

Rental and other revenue                                                   $    13,383,988       $    13,467,137
                                                                           ---------------       ---------------

Expenses:
   Operating                                                                     8,746,838             8,103,335
   Interest                                                                      4,388,366             4,475,951
   Depreciation and amortization                                                 3,940,804             3,964,683
                                                                           ---------------       ---------------
       Total Expenses                                                           17,076,008            16,543,969
                                                                           ---------------       ---------------

Net Loss                                                                   $    (3,692,020)      $    (3,076,832)
                                                                           ===============       ===============

Fund's share of Net Loss                                                   $    (3,477,694)      $    (2,826,637)
                                                                           ===============       ===============
Other partners' share of Net Loss                                          $      (214,326)      $      (250,195)
                                                                           ===============       ===============
</TABLE>

For the years ended March 31, 2003 and 2002, the Fund has not recognized
$755,144 and $891,296, respectively, of equity in losses relating to certain
Local Limited Partnerships in which cumulative equity in losses and
distributions exceeded its total investment in these Local Limited Partnerships.



<PAGE>


           BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED PARTNERSHIP

                  NOTES TO THE FINANCIAL STATEMENTS (Continued)


4. Investments in Local Limited Partnerships (continued)

The Fund's equity as reflected by the Local Limited Partnerships of $7,362,019
differs from the Fund's investments in Local Limited Partnerships before
adjustments of $14,488,847 primarily because of cumulative unrecognized losses
as described above and the Fund has included advances in investments in Local
Limited Partnerships.

The Fund has set aside in an escrow account future capital contributions related
to its investment in one Local Limited Partnership. Interest earned on this
deposit is payable to the Local General Partner. As of March 31, 2003, $95,023
of interest due to this Local General Partner is included in due to affiliates.

5.   Transactions with Affiliates

An affiliate of the Managing General Partner receives the base amount of 0.50%
(annually adjusted by the CPI factor) of Gross Proceeds as the annual Asset
Management Fee for administering the affairs of the Fund. Asset Management Fees
of $319,023 and $313,377 have been expensed in the years ended March 31, 2003
and 2002, respectively. Included in due to affiliates at March 31, 2003 is
$81,184 of Asset Management Fees. During the years ended March 31, 2003 and
2002, $317,120 and $312,128, respectively, were paid out of available cash flow
to an affiliate of the Managing General Partner for Asset Management Fees.

An affiliate of the Managing General Partner is reimbursed for the cost of the
Fund's salaries and benefits expenses. Included in general and administrative
expenses for the years ended March 31, 2003 and 2002 is $132,534 and $73,936,
respectively, that the Fund has incurred for these expenses. As of March 31,
2003 $56,053 is payable to an affiliate of the General Partner for salaries and
benefits.

6.   Commitments

At March 31, 2003, 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 $406,000. Of this amount, the Fund has set aside $148,281 in
escrow for future capital contributions to one Local Limited Partnership.


<PAGE>

BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED PARTNERSHIP

                  NOTES TO THE FINANCIAL STATEMENTS (Continued)


7.   Federal Income Taxes

The following schedule reconciles the reported financial statement net loss for
the fiscal years ended March 31, 2003 and 2002 to the net loss reported on the
Form 1065, U.S. Partnership Return of Income for the years ended December 31,
2002 and 2001:
<TABLE>
<CAPTION>
                                                                                  2003             2002
                                                                             -------------     -------------

<S>                                                                          <C>               <C>
Net Loss per financial statements                                            $  (3,366,016)    $  (2,449,337)

Equity in losses of Local Limited Partnerships for financial reporting (tax)
   purposes in excess of equity in losses for tax
   (financial reporting) purposes                                               (1,202,283)        2,976,394

Equity in losses of Local Limited Partnerships not
   recognized for financial reporting purposes                                    (755,144)         (891,296)

Adjustment to reflect March 31 fiscal year end
   to December 31 tax year end                                                      63,553           (11,851)

Provision for valuation of advances to Local Limited
   Partnerships not deductible for tax purposes                                    123,142           117,973

Amortization for tax purposes in excess of
   amortization for financial reporting purposes                                   (14,918)          (14,917)
                                                                             -------------     -------------

Net Loss per tax return                                                      $  (5,151,666)    $    (273,034)
                                                                             =============     =============
</TABLE>

The differences in the assets and liabilities of the Fund for financial
reporting purposes and tax purposes as of March 31, 2003 and December 31, 2002,
respectively are as follows:
<TABLE>
<CAPTION>
                                                     Financial
                                                      Reporting                Tax
                                                      Purposes                Purposes          Differences
<S>                                                <C>                     <C>                 <C>
Investments in Local Limited Partnerships          $  15,167,615           $  11,963,627       $   3,203,988
                                                   =============           =============       ==============
Other assets                                       $   2,431,654           $   8,761,190       $  (6,329,536)
                                                   =============           =============       ==============
Liabilities                                        $     266,440           $     163,775       $     102,665
                                                   =============           =============       =============
</TABLE>

The differences in assets and liabilities of the Fund for financial reporting
and tax purposes are primarily attributable to: (i) the cumulative equity in
losses from Local Limited Partnerships for tax purposes is approximately
$3,323,000 more than for financial reporting purposes, including approximately
$6,598,000 of losses the Fund has not recognized relating to Local Limited
Partnerships whose cumulative equity in losses exceeded its total investment;
(ii) the cumulative amortization of acquisition fees for tax purposes exceeds
financial reporting purposes by approximately $95,000; (iii) approximately
$8,000 of cash distributions received from Local Limited Partnerships were
received during the three months ended March 31, 2003 and; (iv) organizational
and offering costs of approximately $6,305,000 that have been capitalized for
tax purposes are charged to Limited Partners' equity for financial reporting
purposes.


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


                  NOTES TO THE FINANCIAL STATEMENTS (Continued)


8.       Newly Issued Accounting Standards

In January 2003, the FASB issued Interpretation No. 46 (FIN 46), "Consolidation
of Variable Interest Entities" an interpretation of ARB No. 51, which addresses
consolidation by business enterprises of variable interest entities ("VIEs").
VIEs are generally defined as entities that either: (1) do not have sufficient
equity investment at risk to permit the entity to finance its activities without
additional subordinated financial support, or (2) the equity investors lack an
essential characteristic of a controlling financial interest.

FIN 46 requires disclosure of VIEs in financial statements issued after January
31, 2003, if it is reasonably possible that as of the transition date: (1) the
Fund will be the primary beneficiary of an existing VIE that will require
consolidation or, (2) the Fund will hold a significant variable interest in, or
have significant involvement with, an existing VIE. Pursuant to the transitional
requirements of FIN 46, the guidance is effective as of the quarter beginning
July 1, 2003. Any VIEs created after January 31, 2003, are immediately subject
to the consolidation guidance in FIN 46.

The Managing General Partner is still assessing the impacts of this
interpretation. However, if a determination is made that the Local Limited
Partnerships met the definition of a VIE, it is reasonably possible that the
Fund will be considered the primary beneficiary of the Local Limited
Partnerships and therefore would need to consolidate these entities beginning on
July 1, 2003. The assets and liabilities of these entities at December 31, 2002
were approximately $80,686,000 and $66,612,000, respectively. While the Fund's
exposure to loss is limited to its equity investment in the local limited
partnerships, in the event that such entities are required to be consolidated by
the Fund effective July 1, 2003, it is likely that cumulative unrecognized
losses would need to be recorded by the Fund as of July 1, 2003. Cumulative
unrecognized losses from these entities were approximately $6,598,000 at March
31, 2003.

Effective April 1, 2002, the Fund adopted Statement of Financial Accounting
Standards ("SFAS") No. 144, "Accounting for the Impairment or Disposal of
Long-Lived Assets", which established standards for the way that public business
enterprises report information about long-lived assets that are either being
held for sale or have already been disposed of by sale or other means. Adoption
of SFAS No. 144 did not have a significant effect on the Fund's financial
statements.





<PAGE>