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, 2008
                        -----------------------------------------

                                                         OR

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

For the transition period from           to
                               -----------------


                         Commission file number 0-24584

         Boston Financial Tax Credit Fund VII, A Limited  Partnership
                  (Exact name of registrant as specified in its charter)

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

   101 Arch Street, Boston, Massachusetts               02110-1106
-----------------------------------------------   ---------------------------
  (Address of principal executive offices)             (Zip Code)

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

Securities registered pursuant to Section 12(b) of the Act:

      Title of each class           Name of each exchange on which registered
           None                                 None

Securities registered pursuant to Section 12(g) of the Act:

                      UNITS OF LIMITED PARTNERSHIP INTEREST
                            (Title of Class)


Check whether the issuer is not required to file reports pursuant to Section 13
or 15(d) of the Exchange Act.  ____

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





<PAGE>



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 .

Indicate by check mark whether the registrant is a  shell company (as defined in
Rule 12 b-2 of the Exchange Act).

                           Yes  No X .

State issuer's revenues for its most recent fiscal year:  $59,340.

State the aggregate sales price of Fund units held by nonaffiliates of the
registrant: $45,581,000 as of March 31, 2008.

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

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

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 ENDED MARCH 31, 2008


                                TABLE OF CONTENTS

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

                                                                           Page No.

PART I

     Item 1       Business                                                   K-4
     Item 2       Properties                                                 K-6
     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-16
     Item 8       Changes in and Disagreements with Accountants
                  on Accounting and Financial Disclosure                     K-16
     Item 8A      Controls and Procedures                                    K-16
     Item 8B      Other Information                                          K-17

PART III

     Item 9       Directors and Executive Officers
                  of the Registrant                                          K-17
     Item 10      Management Remuneration                                    K-18
     Item 11      Security Ownership of Certain Beneficial
                  Owners and Management                                      K-18
     Item 12      Certain Relationships and Related Transactions             K-18
     Item 13      Exhibits, Financial Statement Schedules and
                  Reports on Form 8-K                                        K-20
     Item 14.     Principal Accountant Fees and Services                     K-20

SIGNATURES                                                                   K-21
----------

CERTIFICATIONS                                                               K-22
--------------
</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 ("Unit") 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 originally invested as a limited partner in nineteen 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 of this Report
contains 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 A

                             SELECTED LOCAL LIMITED
                                PARTNERSHIP DATA
<TABLE>
<CAPTION>
<S>                                                                <C>                               <C>


                                                                                                      Date
                              Properties owned by                                                   Interest
                         Local Limited Partnerships                Location                         Acquired

Oak Ridge (1)                                            Macon, GA                                  12/31/92
Santa Fe Oaks II (1)                                     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 (1)                                   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>

(1) The Fund no longer has interests in the Local Limited Partnerships which own
these Properties.

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, 2008, 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: 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 effect 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 MMA
Financial, Inc. ("MMA") 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 currently owns limited partnership interests in sixteen 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%, Eden Park which is 67%, Fountain Lake
which is 90%, and Twin Oaks Meadow which is 95.89%.

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 Code, in order
to maintain eligibility for the Tax Credits 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.

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>
<S>                              <C>                 <C>           <C>            <C>                  <C>            <C>

                                                      Capital Contributions
 Local Limited Partnership                          Total           Paid          Mtge. Loans                         Occupancy at
 Property Name                  Number of          Committed at     Through        Payable at           Type of         March 31,
 Property Location              Apts Units      March 31, 2008   March 31, 2008  December 31, 2007      Subsidy *       2008
 ---------------------------------------------   ------------   --------------   ----------------   ----------------  -------------

Andrew's Pointe Limited
  Partnership
Andrew's Pointe
Burnsville, MN                  57              1,333,800      1,333,800               1,908,056          None              98%

Palo Verde II, A Nevada
  Limited Partnership
Palo Verde II
Henderson, NV                  60              1,324,801       1,324,801                 938,680          None              92%

Woods Lane, A Limited
  Partnership
Woods Lane
Rogers, AR                    156              2,574,180        2,574,180              2,846,765          None              90%

Crafton Place, A Limited
  Partnership
Crafton Place
Fayetteville, AR              84               1,365,120        1,365,120              1,423,406           None              96%

Guardian Place
  Limited Partnership
Guardian Place               120                2,174,390       2,174,390              3,470,510           None              98%
Richmond, VA

Twin Oaks Meadows Limited
  Dividend Housing Association
  Limited Partnership
Twin Oaks Meadows
Lansing, MI                   63                1,436,400        1,436,400              1,922,978           None              67%

</TABLE>


<PAGE>


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

                                                     Capital Contributions
 Local Limited Partnership                       Total                Paid           Mtge. Loans                       Occupancy at
 Property Name                   Number of      Committed at        Through          Payable at           Type of        March 31,
 Property Location              Apts Units      March 31, 2008    March 31, 2008  December 31, 2007       Subsidy *        2008
 ---------------------------------------------   ------------  --------------      --------------    ------------     ------------


Madera Sunrise Terrace
  Limited Partnership
Sunrise Terrace
Madera, CA                      52               1,523,196            1,523,196         1,160,635           None           98%

Eden Park Limited
  Partnership
Wynmor
Brooklyn Park, MN              324               5,527,758            5,527,758         5,698,402           None           88%

Affordable Citrus Glen
  Limited Partnership
Citrus Glen
Orlando, FL                    176                4,581,360           4,581,360          3,285,623           None           89%

Des Moines Street Associates
  Limited Partnership
Des Moines St. Village
Des Moines, IA                  42                1,083,996          1,083,996          1,401,723         Section 8          93%

Fountain Lakes, A Limited
   Partnership
Fountain Lakes
Benton, AR                     180                2,854,593          2,854,593          3,613,300            None            100%

Fairhaven Manor Limited
       Partnership
Fairhaven Manor
Burlington, WA                  40                1,232,020          1,232,020             769,818            None           100%

</TABLE>

<PAGE>

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


                                                       Capital Contributions
 Local Limited Partnership                         Total            Paid            Mtge. Loans                      Occupancy at
 Property Name                   Number of       Committed at       Through          Payable at          Type of       March 31,
 Property Location                Apts Units   March 31, 2008    March 31, 2008    December 31, 2007    Subsidy *        2008
 ------------------------     ------------     --------------   ----------------  -----------------   --------------   ---------

Grand Boulevard Renaissance I
   Limited Partnership
Grand Boulevard Renaissance
Chicago, IL                         30              936,719          936,719          1,748,320           Section 8         90%

Los Claveles, S.E. Limited
    Partnership
Los Claveles II
Trujilio Alto, PR                  180             1,273,374       1,273,374         10,272,508           Section 8         89%

Springwood Apartments,
    A Limited Partnership
Springwood
Tallahassee, FL                    113               624,804         624,804          3,380,902             None            96%

BHP/Harford Commons
 Limited Partnership
Harford Commons
Baltimore, MD                      30              1,128,000         1,128,000         1,736,092             None            90%
                                 ------         --------------   -------------   ---------------
                                1,707            $ 30,974,511     $ 30,974,511      $ 45,577,718
                                ======         ===============   ============== = ==============
</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>



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, 6 and 7 of this Report.

Item 3.  Legal Proceedings

The Fund is not a party to any pending legal or administrate 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, 2008, there were 2,293 record holders of Units of the Fund.

Cash distributions, when made, are paid annually. For the years ended March 31,
2008 and 2007, 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 use of
words like "anticipate," "estimate," "intend," "project," "plan," "expect,"
"believe," "could," and similar expressions are intended to identify such
forward-looking statements. The Fund intends such forward-looking statements to
be covered by the safe harbor provisions for forward-looking statements and is
including this statement for purposes of complying with these safe harbor
provisions. Although the Fund believes the forward-looking statements are based
on reasonable assumptions and current expectations, the Fund can give no
assurance that its expectations will be attained. Actual results and timing of
certain events could differ materially from those projected in or contemplated
by the forward-looking statements due to a number of factors, including, without
limitation, general economic and real estate conditions and interest rates.

Executive Level Overview

The Fund is a Massachusetts limited partnership organized to invest in Local
Limited Partnerships which own and operate apartment complexes that are eligible
for low income housing tax credits which may be applied against the federal
income tax liability of an investor. The Fund's 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 MMA. The fiscal year of the Fund ends on
March 31.
<PAGE>
As of March 31, 2008, the Fund's investment portfolio consists of limited
partnership interests in sixteen Local Limited Partnerships, each of which owns
and operates a multi-family apartment complex and each of which has generated
Tax Credits. Since inception, the Fund has generated Tax Credits of
approximately $1,485 per Limited Partner Unit. In the aggregate, actual and
estimated Tax Credits enabled the Fund to meet the objective specified in the
Fund's prospectus.

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

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

Critical Accounting Policies

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

The Local Limited Partnerships in which the Fund invests are Variable Interest
Entities ("VIE"s). The Fund is involved with the VIEs as a non-controlling
limited partner equity holder. Because the Fund is not the primary beneficiary
of these VIEs, it accounts for its investments in the Local Limited Partnerships
using the equity method of accounting. As a result of its involvement with the
VIEs, the Fund's exposure to economic and financial statement losses is limited
to its investments in the VIEs ($2,042,039 at March 31, 2008). The Fund may be
subject to additional losses to the extent of any financial support that the
Fund voluntarily provides in the future. Under the equity method, the investment
is carried at cost, adjusted for the Fund's share of net income or loss and for
cash distributions from the Local Limited Partnerships; equity in income or loss
of the Local Limited Partnerships is included currently in the Fund's
operations. A liability is recorded for delayed equity capital contributions to
Local Limited Partnerships. Under the equity method, a Local Limited Partnership
investment will not be carried below zero. To the extent that equity in losses
are incurred when the Fund's carrying value of the respective Local Limited
Partnership has been reduced to a zero balance, the losses will be suspended and
offset against future income. Income from Local Limited Partnerships, where
cumulative equity in losses plus cumulative distributions have exceeded the
total investment in Local Limited Partnerships, will not be recorded until all
of the related unrecorded losses have been offset. To the extent that a Local
Limited Partnership with a carrying value of zero distributes cash to the Fund
that distribution is recorded as income on the books of the Fund and is included
in "other revenue" in the accompanying financial statements.
<PAGE>
The Fund has implemented policies and practices for assessing other- than-
temporary declines in values of its investments in Local Limited Partnerships.
Periodically, the carrying values of the investments are compared to their
respective fair values. If an other-than-temporary decline value exists, a
provision to reduce the asset to fair value, as calculated based primarily on
remaining tax benefits, will be recorded in the Fund's financial statements.
The tax benefits for each Local Limited Partnership consist of future tax
losses, tax credits and residual receipts at disposition. Included in the
residual receipts calculation is current net operating income  capitalized at
the regional rate specific to each Local Limited Partnership. During the year
ended March 31, 2008, the Fund concluded that three of the Local Limited
Partnerships had experienced other-than-temporary declines in their carrying
 value and impairment losses were recorded: Guardian Place LP for $91,488,
Sunrise Terrace LP for $10,000 and Fairhaven Manor for $494,000. During the year
ended March 31, 2007, the Fund concluded that none of the Local Limited
Partnerships had experienced other-than-temporary declines in their carrying
value and impairment losses were not recorded. Generally, the carrying values of
most Local Limited partnerships will decline through losses and distributions in
amounts sufficient to prevent other-than-temporary impairments. However, the
Fund may record similar impairment losses in the future if the expiration of tax
credit outpaces losses and distributions from any of the Local Limited
Partnerships.

Liquidity and Capital Resources

At March 31, 2008, the Fund had cash and cash equivalents of $613,617 as
compared with $557,329 at March 31, 2007. This increase is primarily
attributable to cash distribution received from Local Limited Partnerships in
excess of cash used for operating activities. Cash used for operations includes
$245,000 to the Managing General Partner for accrued asset management fees.

The Managing General Partner initially designated 5% of the Gross Proceeds as
Reserves, as defined in the Partnership Agreement. The Reserves were established
to be used for working capital of the Fund and contingencies related to the
ownership of Local Limited Partnership interests. The Managing General Partner
may increase or decrease such Reserves from time to time, as it deems
appropriate. At March 31, 2008, $613,617 has been designated as Reserves.

To date, professional fees relating to various Property issues totaling
approximately $125,000 have been paid from Reserves. In the event a Local
Limited Partnership encounters operating difficulties requiring additional
funds, the Fund's management might deem it in its best interest to voluntarily
provide such funds in order to protect its investment. As of March 31, 2008, the
Fund has advanced approximately $1,477,000 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 $331,000 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.

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, 2008, the Fund had no contractual or other
obligation to any Local Limited Partnership which had not been paid or provided
for except as disclosed above.

Cash Distributions

No cash distributions were made in the two years ended March 31, 2008. The Fund
is currently working on disposing of its interest in certain Local Limited
Partnerships during the next twelve months. These dispositions may result in
cash available for distribution, but due to the uncertainty of the sales, no
guarantees can be made as to the extent of their outcome on distributions. Based
on the results of 2007 Property 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.


<PAGE>


Results of Operations

The Fund's results of operations for the year ended March 31, 2008 resulted in a
net loss of $1,554,485 as compared to a net loss of $1,112,655 for the same
period in 2007. The increase in net loss is primarily attributable to a decrease
in gain on sale of investments in Local Limited Partnerships, a decrease in
provision for valuation allowance on advances to Local Limited Partnerships, and
a decrease in equity in losses, these are offset by an increase in impairment
on investments in Local Limited Partnerships, and a decrease in general and
administrative expenses. The decrease in gain on sale of investments in Local
Limited Partnerships is due to the sale of one Local Limited Partnership made in
the prior year. The decrease in provision for valuation allowance on advances to
Local Limited Partnerships is the result of reserves for advances made to two
Local Limited Partnerships in the prior year. Equity in losses decreased
primarily due to an increase in unrecognized losses by the Fund of Local Limited
Partnerships with carrying value of zero. Impairment on investments in Local
Limited Partnerships.   increased due to the Fund recording a valuation
allowance of its investments in certain Local Limited Partnerships. General and
administrative expenses decreased due to decreased legal expenses associated
with litigation from prior quarters.

Low-Income Housing Tax Credits

The 2007 and 2006 Tax Credits were $0.00 and $0.31 per Unit respectively. The
Tax Credits per Limited Partner stabilized in 1996. The credits have ended as
all properties have reached the end of the ten year credit period.

Property Discussions

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

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

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

As previously reported, the Managing General Partner estimated a late 2007
disposition of Oak Ridge, located in Macon, Georgia. On October 31, 2007, the
Fund disposed of its interest in the Local Limited Partnership that owned and
operated Oak Ridge. As previously indicated, the Fund did not receive any
proceeds from this transaction, as the outstanding debt on the property exceeded
the Property's sales price. This disposition resulted in a 2007 taxable loss of
$1,228,857, or $24.13 per Unit. The Fund no longer has an interest in this Local
Limited Partnership.
<PAGE>
As previously reported, although operations at Palo Verde II, located in
Henderson, Nevada, remain strong, the former Local General Partner filed for
bankruptcy protection and refused to remit to the Fund its priority cash
distributions, representing a default under the terms of the Local Limited
Partnership Agreement. An affiliate of the Managing General Partner assumed the
Local General Partner interest in September 2001. Since the statute of
limitations on potential litigation involving one of the former Local General
Partners expired in 2005, the Managing General Partner expected a mid-2008
disposal of the Fund's interest, upon the sale of the underlying Property, in
this Local Limited Partnership. On May 29, 2008, the Fund's interest was
transferred, resulting in net sales proceeds to the Partnership of $1,437,970,
or $28.23 per Unit. The Managing General Partner estimates this sale will result
in 2008 taxable income projected to be approximately $875,000, or $17.18, per
Unit. A final accounting of security deposits and operating cash accounts is
expected to result in a nominal amount of additional proceeds to the
Partnership.

As previously reported, the Managing General Partner anticipated the Fund's
interest in the Local Limited Partnership that owns Spring Wood Apartments,
located in Tallahassee, Florida, would be terminated upon the sale of the
Property, in mid 2008. The Managing General Partner presently estimates a third
quarter 2008 disposition that will result in net sales proceeds to the Fund of
approximately $400,000, or $7.85 per Unit. The Managing General Partner
estimates this sale will result in 2008 taxable income projected to be
approximately $366,000, or $7.19, per Unit. This sale will occur prior to the
expiration of the Property's compliance period, requiring the Fund to post a
surety bond to mitigate the potential risk of recapture. The buyer will also be
required to maintain the Property's tax credit compliance through December 31,
2009, the expiration of the Property's compliance period.

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

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

As previously reported, Los Claveles II, located in Trujillio Alto, Puerto Rico,
continued to operate at slightly below breakeven through the nine month period
ending September 30, 2007, due to occupancy levels that were acceptable, but
below the Property's breakeven occupancy level. The Property continued to
operate at below breakeven through out the twelve month period ending December
31, 2007 due to a reduction in rental revenues associated with occupancy levels
and in increase in utility expenses. The Property continues to be current on its
loan obligations. In addition, a site visit conducted by a representative of the
Managing General Partner in November 2007 indicated the Property is in
acceptable physical shape. The Managing General Partner, concerned about the
Property's long-term viability, signed an agreement in December 2002 with the
Local General Partner whereby the Fund would pay its remaining capital
commitment of $350,000 and release Fund Reserves of approximately $50,000 in
exchange for an exit option that would allow the Fund to put its interest to the
Local General Partner at any time for $10,000. In addition, the Local General
Partner has the right, subsequent to the expiration of the Compliance Period on
December 31, 2008, to call the Fund's interest for a price of $10,000. As part
of the agreement, the Local General Partner is providing an operating guarantee
in the form of a Local General Partner indemnification of any loss or any
recapture of Tax Credits through the end of the Compliance Period.
<PAGE>
As previously reported, debt service coverage and working capital levels
remained below appropriate levels at September 30, 2007 for Des Moines Street
Village, located in Des Moines, Iowa. Although average occupancy for the three
month period ending December 31, 2007, was 75%, and below the Managing General
Partner's acceptable benchmark of 85%, significant improvement has been made
since, as occupancy rose to 93% at March 31, 2008. Although the Property
operated at below breakeven throughout the nine month period ending December 31,
2007, above breakeven operating status was achieved for the three month period
ending March 31, 2008. The real estate taxes due in September 2007, remain
unpaid, leaving the Local General Partner in default of the Partnership
Agreement, as well as in default of the mortgage loan. The Managing General
Partner is actively pursuing a replacement of the current Local General Partner,
and currently plans to advance $50,000 of the Fund's reserves to pay delinquent
taxes, upon replacement of the Local General Partner. The Property may require
additional advances from the Fund if a replacement Local General Partner is
inserted by mid-2008, in order to alleviate additional real estate tax and first
mortgage loan debt service covenant requirements. While the Local General
Partner had previously funded deficits and the Property remains current on its
debt obligations, the Managing General Partner approved the Local General
Partner request to a reduced rate refinancing of the Property's first mortgage
in April 2004. As part of this transaction, the Managing General Partner, and
the Local General Partner, entered into a put agreement whereby the Fund can
transfer its interest in the Local Limited Partnership for a nominal amount, any
time after the expiration of the Compliance Period on December 31, 2009.

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

As previously reported, Grand Boulevard Renaissance, located in Chicago,
Illinois, continues to experience operating difficulties. The three month period
ending September 30, 2007 resulted in an unfavorable occupancy level, while
working capital and debt service coverage ratios remained below appropriate
levels. The three month period ending December 31, 2007 resulted in an occupancy
level of 87%, slightly above the Managing General Partner's acceptable
benchmark. Working capital and debt service coverage ratios remained below
acceptable levels throughout the twelve month period ending December 31, 2007. A
representative of the Managing General Partner conducted a physical inspection
as part of a December 2007 site visit. Despite improvements since an October
2006 visit, the Property is still assigned an unfavorable rating due to
significant deferred maintenance issues. The Managing General Partner's
representative also considers property management to be weak and limited in
capacity to address the physical needs of the Property. Advances from the Local
General Partner and working capital have enabled the Property to remain current
on its loan obligations. In response to prior deficits, during 2001 the Local
General Partner negotiated with the first mortgage lender to reduce the interest
rate on the current first mortgage. In addition, in an effort to further reduce
the Property's debt service burden, in July 2003 the Local Limited Partnership
and the Illinois Housing Development Authority closed on a mortgage
restructuring of the second mortgage that reduced monthly debt service payments
until June 1, 2005. As part of the transaction, the management agent agreed to
subordinate a percentage of its management fee to payment of the second mortgage
debt service.

As previously reported, in an effort to reduce the Fund's risk to chronic
operating difficulties at Wynmor, located in Brooklyn Park, Minnesota, the
Managing General Partner and Local General Partner, on October 1, 2003, entered
into an agreement to transfer a portion of the Fund's interest in the Property's
future Tax Credits (approximately $11 per Unit) and tax losses to the Local
General Partner. In return, the Local General Partner agreed to deposit $500,000
into an escrow to be used to fund current and future operating deficits and to
fund as much as an additional $500,000 to cover future operating deficits. The
Managing General Partner and Local General Partner also have an agreement that
allows for the Managing General Partner to put the Fund's interest to the Local
General Partner for $1 any time after October 1, 2003 and that the Local General
Partner could call the Fund's interest for fair market value any time after
January 2, 2009. Due to relatively low occupancy levels throughout the three
month period ending December 31, 2007, the Property operated at slightly below
breakeven for the twelve month period ending December 31, 2007. The Compliance
Period ends for the Property on December 31, 2008.
<PAGE>
As previously reported, the Local General Partner of Twin Oaks Meadows, located
in Lansing, Michigan, with the Fund's consent, obtained soft loan financing in
May 2004 to undertake much needed security improvements to the Property, reduce
payables and fund operating deficits. In return for its consent, the Fund
received a put option that allows the Fund to transfer its interest in the Local
Limited Partnership for a nominal price to the Local General Partner at any time
subsequent to the end of the Property's Compliance Period on December 31, 2009.
Working capital and debt service levels remain below acceptable levels at
December 31, 2007. As a result of a rise in the rate of crime in the immediate
area, occupancy remained below an acceptable level, 67%, at December 31, 2007.
In response, a neighborhood watch program was implemented and many of the
residents' concerns regarding safety have been addressed. A new site manager was
brought in May 2007, implementing programs to involve residents, as well as the
community at large.

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, 2008 and 2007.

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.

Item 8A.  Controls and Procedures

Disclosure Controls and Procedures

We conducted an evaluation of the effectiveness of the design and operation of
our disclosure controls and procedures, as defined in Rules 13a-15(e) and
15d-15(e) under the Securities Exchange Act of 1934, as amended, or the Exchange
Act, to ensure that information required to be disclosed by us in the reports
filed or submitted by us under the Exchange Act is recorded, processed,
summarized and reported, within the time periods specified in the Securities
Exchange Commission's rules and forms, including to ensure that information
required to be disclosed by us in the reports filed or submitted by us under the
Exchange Act is accumulated and communicated to management to allow timely
decisions regarding required disclosure. Based on that evaluation, management
has concluded that as of March 31, 2008, our disclosure controls and procedures
were effective.

Internal Control over Financial Reporting

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

The Fund's internal control over financial reporting involves a process designed
to provide reasonable assurance regarding the reliability of financial reporting
and the preparation of financial statements for external purposes in accordance
with generally accepted accounting principles. Internal control over financial
reporting includes the controls themselves, as well as monitoring of the
controls and internal auditing practices and actions to correct deficiencies
identified. Because of its inherent limitations, internal control over financial
reporting may not prevent or detect misstatements.
<PAGE>
Management assessed the effectiveness of the Fund's internal control over
financial reporting as of March 31, 2008. Based on this assessment, management
concluded that, as of March 31, 2008, the Fund's internal control over financial
reporting was effective.

Item 8B.  Other Information

     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
MMA. 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

Greg Judge                                       Executive Vice President
Michael H. Gladstone                             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.

Greg Judge, age 43, Executive Vice President, Head of the Affordable Housing
Group of MMA Financial since February 2008. As head of the Company's Affordable
Housing Group, Mr. Judge is responsible for both the affordable tax exempt and
taxable lending and equity businesses. Prior to his appointment as EVP, Mr.
Judge was responsible for tax credit equity investments and underwriting of
equity and debt investments for the Affordable Housing Group. Mr. Judge joined
MMA as a result of the Boston Financial and Lend Lease HCI acquisitions,
starting with Boston Financial in 1989 as an asset manager. Mr. Judge is a
frequent speaker on affordable housing and tax credit industry issues. Mr. Judge
is a graduate of Colorado College (BA) and Boston University (MBA).

Michael H. Gladstone, age 51, Senior Vice President. Mr. Gladstone is
responsible for capital transactions work in the Asset Management group of MMA
Financial. He joined MMA as a result of the Boston Financial and Lend Lease HCI
acquisitions, 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 has lectured at Harvard University and
Cornell University on affordable housing matters and is a member of the Cornell
Real Estate Council and the Massachusetts Bar. Mr. Gladstone is a graduate of
Emory University (BA) and Cornell University (J.D. & MBA).

The Fund is organized as a limited partnership solely for the purpose of real
estate investment and does not have any employees. Therefore the Fund has not
adopted a Code of Ethics.
<PAGE>
The Fund is structured as a limited partnership that was formed principally for
real estate investment and is not "listed" issuer as defined by Rule 10A-3 of
the Securities Exchange Act of 1934. Accordingly, neither an audit committee nor
a financial expert to serve on such a committee has been established by the
Fund.

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, 2008, 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>
<S>               <C>                                    <C>                <C>

 Title of       Name and Address of                       Amount
 Class          Beneficial Owner                        Beneficially       Percent of Class
                                                           Owned
--------       ------------------                      -------------       ----------------
Limited        Oldham Institutional Tax Credits LLC       5,349 units          10.5%
Partner        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 of
1934 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., MMA 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.

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, 2008 and 2007 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.
<PAGE>
Information regarding the Fees paid and expense reimbursements made in the two
years ended March 31, 2008 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, 2008.

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,
2008.

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 in each of the two years ended March 31, 2008 and
2007 are as follows:
<TABLE>
<CAPTION>
<S>                                                                                <C>               <C>

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

Asset management fees                                                        $    365,994        $  358,558






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 in
each of the two years ended March 31, 2008 and 2007 are as follows:

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

Salaries and benefits expense reimbursements                                 $    142,286        $ 121,523
</TABLE>
<PAGE>
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. The Fund has not paid any cash distributions to
General Partners during the two years ended March 31, 2008.

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 MMA and its affiliates during the years ended
March 31, 2008 and 2007 is presented in Note 4 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
31.1     Certification of Principal Executive Officer and Principal Financial
         Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2     Certification of Principal Executive Officer and Principal Financial
         Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1     Certification of Principal Executive Officer and Principal Financial
         Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2     Certification of Principal Executive Officer and Principal Financial
         Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

Item 14.   Principal Accountant Fees and Services

The Fund paid or accrued fees for services rendered by the principal accountants
for the two years ended March 31, 2008 as follows:
<TABLE>
<CAPTION>
<S>                                                                               <C>                <C>

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

Audit fees                                                                   $   77,646            $ 59,690
Tax fees                                                                     $    2,500            $  2,400
</TABLE>

No other fees were paid or accrued to the principal accountants during the two
years ended March 31, 2008.


<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/Greg Judge                             Date:       June 30, 2008
           ----------------------------------                   -------------
           Greg Judge
           President
           Arch Street VIII, Inc.


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/Greg Judge                             Date:       June 30, 2008
           ----------------------------------                    -------------
           Greg Judge
           President
           Arch Street VIII, Inc.


     By:   /s/Michael H. Gladstone                     Date:    June 30, 2008
           --------------------------------                    -------------
           Michael H. Gladstone
           Vice President
           Arch Street VIII, Inc.



<PAGE>







           BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED PARTNERSHIP

         ANNUAL REPORT ON FORM 10-KSB FOR THE YEAR ENDED MARCH 31, 2008
                                      INDEX

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

                                                                               Page No.


Report of Independent Registered Public Accounting Firm
   for the years ended March 31, 2008                                            F-2

Report of Independent Registered Public Accounting Firm
   for the years ended March 31, 2007                                            F-3

Financial Statements

   Balance Sheet - March 31, 2008                                                F-4

   Statements of Operations - For the years ended
     March 31, 2008 and 2007                                                     F-5

   Statements of Changes in Partners' Equity -
     For the years ended March 31, 2008 and 2007                                 F-6

   Statements of Cash Flows - For the years ended
     March 31, 2008 and 2007                                                     F-7

   Notes to the Financial Statements                                             F-8

</TABLE>



<PAGE>



  REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM


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

         We have audited the accompanying balance sheet of Boston Financial Tax
Credit Fund VII, A Limited Partnership as of March 31, 2008, and the related
statements of operations, changes in partners' equity (deficiency) and cash
flows for the year then ended. These financial statements are the responsibility
of the Partnership's management. Our responsibility is to express an opinion on
these financial statements based on our audit.

         We conducted our audit in accordance with the standards of the Public
Company Accounting Oversight Board (United States). Those standards 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. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audit provides a reasonable basis for our opinion.

         In our opinion, the financial statements referred to above present
fairly, in all material respects, the financial position of Boston Financial Tax
Credit Fund VII, A Limited Partnership as of March 31, 2008, and the results of
its operations and its cash flows for the year then ended, in conformity with
accounting principles generally accepted in the United States of America.


/s/ Reznick Group, P.C.

Bethesda, Maryland
June 30, 2008





<PAGE>


          Report of Independent Registered Public Accounting Firm


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


In our opinion, the financial statements listed in the accompanying index
present fairly, in all material respects, the financial position of Boston
Financial Tax Credit Fund VII, A Limited Partnership ("the Partnership") at
March 31, 2007, and the results of its operations and its cash flows for the
year ended March 31, 2007 in conformity with accounting principles generally
accepted in the United States of America. These financial statements are the
responsibility of the Partnership's management. Our responsibility is to express
an opinion on these financial statements based on our audit. We conducted our
audit of these statements in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards 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 audit provides a reasonable basis for our opinion.


/s/ PricewaterhouseCoopers, LLP


Boston, Massachusetts
June 22, 2007

<PAGE>


                 BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED PARTNERSHIP




                                  BALANCE SHEET
                                 MARCH 31, 2008


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

         Assets

Cash and cash equivalents                                                                         $       613,617
Restricted cash (Note 3)                                                                                  278,198
Investments in Local Limited Partnerships (Note 3)                                                      2,042,039
Other assets                                                                                                  756
                                                                                                  ---------------
   Total Assets                                                                                   $     2,934,610
                                                                                                  ===============

Liabilities and Partners' Equity

Due to affiliates (Notes 3 and 4)                                                                 $       473,091
Accrued expenses                                                                                           55,871
Other liabilities                                                                                          45,198
                                                                                                  ---------------
   Total Liabilities                                                                                      574,160


General, Initial and Investor Limited Partners' Equity                                                  2,360,450
                                                                                                  ---------------
   Total Liabilities and Partners' Equity                                                         $     2,934,610
                                                                                                  ===============

</TABLE>

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

                BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED PARTNERSHIP

                            STATEMENTS OF OPERATIONS

                    For the Years Ended March 31, 2008 and 2007


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

                                                                                 2008                     2007
                                                                           ----------------         ----------
        Revenue:
   Investment                                                              $         35,916        $         34,498
   Other                                                                             23,424                  30,000
                                                                           ----------------        ----------------
     Total Revenue                                                                   59,340                  64,498
                                                                           ----------------        ----------------

Expense:
   Asset management fees, affiliate (Note 4)                                        365,994                 358,558
   Provision for valuation allowance on advances to Local
     Limited Partnerships, net of recovery                                                -                 829,243
   Impairment on investments in Local
     Limited Partnerships (Note 3)                                                  595,488                       -
   General and administrative (includes reimbursements
     to an affiliate in the amount of $142,286 and
     $121,523 in 2008 and 2007, respectively) (Note 4)                              298,793                 345,079
   Amortization                                                                      14,543                  16,799
                                                                                   --------                 -------
     Total Expense                                                                1,274,818               1,549,679
                                                                           ----------------        ----------------

Loss before equity in losses of Local Limited Partnerships                       (1,215,478)             (1,485,181)

Equity in losses of Local Limited Partnerships (Note 3)                            (339,007)               (847,827)

Gain on sale of investments in Local Limited Partnerships                                 -               1,220,353
                                                                           ----------------        ----------------

Net Loss                                                                   $     (1,554,485)       $     (1,112,655)
                                                                           ================        ================

Net Loss allocated:
   General Partners                                                        $        (15,545)       $        433,194
   Limited Partners                                                              (1,538,940)             (1,545,849)
                                                                           ----------------        ----------------
                                                                           $     (1,554,485)       $     (1,112,655)
                                                                           ================        ================
Net Loss per Limited Partner Unit
   (50,930 Units)                                                          $         (30.22)       $         (30.35)
                                                                           ================        ================
</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
                     For the Years Ended March 31, 2008 and 2007


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

                                                                Initial             Investor           Net
                                             General            Limited             Limited         Unrealized
                                             Partners           Partners            Partners          Losses            Total

Balance at March 31, 2006                  $ (394,045)          $ 5,000           $ 5,416,635         $ (1,381)        $ 5,026,209
                                          -------------   -  -------------       -------------  ---------------    -- ------------

Comprehensive Income (Loss):
  Change in net unrealized
   losses on investment securities
    available for sale                               -                 -                     -            1,381              1,381
  Net Income (Loss)                             433,194                -            (1,545,849)               -         (1,112,655)
                                           -------------      --------------     -------------      -------------    --------------
Comprehensive Income (Loss)                     433,194                 -           (1,545,849)            1,381        (1,111,274)
                                           -------------      --------------      --------------   --------------    --------------

Balance at March 31, 2007                         39,149             5,000            3,870,786               -           3,914,935
                                            -------------     --------------      --------------    -------------    --------------

Net Loss                                        (15,545)                 -           (1,538,940)              -         (1,554,485)
                                           -------------     --------------     -   -------------   -------------    --------------

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

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

<PAGE>


               BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED PARTNERSHIP


                            STATEMENTS OF CASH FLOWS
                   For the Years Ended March 31, 2008 and 2007


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

                                                                                 2008                     2007
                                                                           ----------------            ----------
Cash flows from operating activities:
   Net Loss                                                                $     (1,554,485)       $     (1,112,655)
   Adjustments to reconcile net loss to net
     cash used for operating activities:
     Equity in losses of Local Limited Partnerships                                 339,007                 847,827
     Gain on sale of investments in Local Limited Partnerships                            -              (1,220,353)
     Provision for valuation allowance on advances to Local
       Limited Partnerships, net of recovery                                              -                 977,144
     Impairment on investments in Local
       Limited Partnerships                                                         595,488                       -
     Amortization                                                                    14,543                  16,799
     Cash distributions included in net loss                                         (8,424)                      -
     Other non-cash item                                                                  -                  (2,378)
     Increase (decrease) in cash arising from changes
       in operating assets and liabilities:
       Due from affiliates                                                           58,920                 (58,920)
       Accounts receivable                                                          147,901                (147,901)
       Other assets                                                                    (756)                  1,384
       Due to affiliates                                                            249,104                (115,823)
       Accrued expenses                                                               6,025                 (11,329)
       Other liabilities                                                              4,241                  40,957
                                                                           ----------------        ----------------
Net cash used for operating activities                                             (148,436)               (785,248)
                                                                           ----------------        ----------------

Cash flows from investing activities:
   Proceeds from maturities of investment securities                                      -                 303,168
   Advances to Local Limited Partnerships                                                 -              (1,228,154)
   Reimbursement of advances to Local Limited Partnerships                                -                 251,010
   Cash distributions received from Local
     Limited Partnerships                                                           204,724                 241,593
   Proceeds from sale of investments in Local Limited Partnerships                        -               1,228,154
                                                                           ----------------        ----------------
Net cash provided by investing activities                                           204,724                 795,771
                                                                           ----------------        ----------------

Net increase in cash and cash equivalents                                            56,288                  10,523

Cash and cash equivalents, beginning                                                557,329                 546,806
                                                                           ----------------        ----------------

Cash and cash equivalents, ending                                          $        613,617        $        557,329
                                                                           ================        ================

Non cash investing activity:
   Reimbursement of advances to Local Limited Partnerships                 $              -        $        147,901
                                                                           ================        ================
</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 that are eligible for low income housing tax credits which may be
applied against the federal income tax liability of an investor. The Fund's
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 MMA Financial, Inc. ("MMA").
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, 2008, the Managing
General Partner has designated $613,617 as such Reserves.

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 Partners may have an obligation to fund deficits in their capital
accounts, subject to limits set forth in the Partnership Agreement. However, to
the extent that the General Partners' capital accounts are in a deficit
position, certain items of net income may be allocated to the General Partners
in accordance with 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.

Concentration of Credit Risk

The Fund invests its cash primarily in money market funds with commercial banks.
At times, cash balances at a limited number of banks and financial institutions
may exceed federally insured amounts. Management believes it mitigates its
credit risk by investing in major financial institutions.

Investment Securities

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


<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

The Local Limited Partnerships in which the Fund invests are Variable Interest
Entities ("VIE"s). The Fund is involved with the VIEs as a non-controlling
limited partner equity holder. Because the Fund is not the primary beneficiary
of these VIEs, it accounts for its investments in the Local Limited Partnerships
using the equity method of accounting. As a result of its involvement with the
VIEs, the Fund's exposure to economic and financial statement losses is limited
to its investments in the VIEs ($2,042,039 at March 31, 2008). The Fund may be
subject to additional losses to the extent of any financial support that the
Fund voluntarily provides in the future. Under the equity method, the investment
is carried at cost, adjusted for the Fund's share of net income or loss and for
cash distributions from the Local Limited Partnerships; equity in income or loss
of the Local Limited Partnerships is included currently in the Fund's
operations. A liability is recorded for delayed equity capital contributions to
Local Limited Partnerships. Under the equity method, a Local Limited Partnership
investment will not be carried below zero. To the extent that equity in losses
are incurred when the Fund's carrying value of the respective Local Limited
Partnership has been reduced to a zero balance, the losses will be suspended and
offset against future income. Income from Local Limited Partnerships, where
cumulative equity in losses plus cumulative distributions have exceeded the
total investment in Local Limited Partnerships, will not be recorded until all
of the related unrecorded losses have been offset. To the extent that a Local
Limited Partnership with a carrying value of zero distributes cash to the Fund
that distribution is recorded as income on the books of the Fund and is included
in "other revenue" in the accompanying financial statements.

The 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 or
until a Local Limited Partnership's respective investment balance has been
reduced to zero.

The Fund may provide advances to the Local Limited Partnerships to finance
operations or to make debt service payments. The Fund assesses the
collectibility of any 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 Managing General Partner has 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, 2007 and 2006 and for the years then
ended.

The Fund has implemented policies and practices for assessing
other-than-temporary declines in values of its investments in Local Limited
Partnerships. Periodically, the carrying values of the investments are compared
to their respective fair values. If an other-than-temporary decline in carrying
value exists, a provision to reduce the asset to fair value, as calculated based
primarily on remaining tax benefits, will be recorded in the Fund's financial
statements.


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

                  NOTES TO THE FINANCIAL STATEMENTS (Continued)


2.       Significant Accounting Policies (continued)

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.

Fair Value of Financial Instruments

Statements of Financial Accounting Standards No. 107 ("SFAS No. 107"),
Disclosures About Fair Value of Financial Instruments, requires disclosure for
the fair value of most on- and off-balance sheet financial instruments for which
it is practicable to estimate that value. The scope of SFAS No. 107 excludes
certain financial instruments, such as trade receivables and payables when the
carrying value approximates the fair value and investments accounted for under
the equity method, and all nonfinancial assets, such as real property. Unless
otherwise described, the fair values of the Fund's assets and liabilities which
qualify as financial instruments under SFAS No. 107 approximate their carrying
amounts in the accompanying balance sheet.

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.

In June 2006, the Financial Accounting Standards Board ("FASB") issued
Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" (FIN 48), an
interpretation of FASB Statement No. 109. FIN 48 provides guidance for how
uncertain tax positions should be recognized, measured, presented and disclosed
in the financial statements. FIN 48 requires the evaluation of tax positions
taken or expected to be taken in the course of preparing the Fund's tax returns
to determine whether the tax positions are more-likely-than-not of being
sustained upon examination by the applicable tax authority, based on the
technical merits of the tax position, and then recognizing the tax benefit that
is more-likely-than-not to be realized. Tax positions not deemed to meet the
more-likely-than-not threshold would be recorded as a tax expense in the current
reporting period. As required, the Fund adopted FIN 48 effective April 1, 2007
and concluded that the effect is not material to its financial statements.
Accordingly, no cumulative effect adjustment related to the adoption of FIN 48
was recorded.

Effect of New Accounting Principles

In September 2006, the FASB issued SFAS No. 157, "Fair Value Measurements"
("SFAS No. 157"), which provides enhanced guidance for using fair value to
measure assets and liabilities. SFAS No. 157 establishes a common definition of
fair value, provides a framework for measuring fair value under U.S. generally
accepted accounting principles and expands disclosure requirements about fair
value measurements. SFAS No. 157 is effective for financial statements issued in
fiscal years beginning after November 15, 2007, and interim periods within those
fiscal years. In February 2008, the FASB issued FASB Staff Position ("FSP")
157-2, "Effective Date of FASB Statement No. 157", which delays the effective
date of SFAS No. 157 for all nonfinancial assets and liabilities except those
that are recognized or disclosed at fair value in the financial statements on at
least an annual basis until November 15, 2008. The Fund will adopt SFAS No. 157
effective April 1, 2008. The adoption of this standard is not expected to have a
material impact on the Fund's financial position, operations or cash flow.

In February 2007, the FASB issued SFAS No. 159, "The Fair Value Option for
Financial Assets and Financial Liabilities" ("SFAS No. 159"), which permits
entities to choose to measure many financial assets and financial liabilities at
fair value. Unrealized gains and losses on items for which the fair value option
has been elected are reported in earnings. SFAS No. 159 is effective for fiscal
years beginning after November 15, 2007, and interim periods within those fiscal
years. The Fund will adopt SFAS No. 159 effective April 1, 2008. The adoption of
this standard is not expected to have a material impact on the Fund's financial
position, operations or cash flow.


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

                  NOTES TO THE FINANCIAL STATEMENTS (Continued)


3.   Investments in Local Limited Partnerships

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

The following is a summary of investments in Local Limited Partnerships at March
31, 2008:

Capital contributions and advances paid to Local Limited Partnerships and
purchase price paid to withdrawing partners of Local Limited Partnerships                           $    30,987,652

Cumulative equity in losses of Local Limited Partnerships (excluding cumulative
   unrecognized losses of $7,780,165)                                                                   (22,768,936)

Cumulative cash distributions received from Local Limited Partnerships                                   (2,429,023)
                                                                                                    ---------------

Investments in Local Limited Partnerships before adjustments                                              5,789,693

Excess investment costs over the underlying assets acquired:

   Acquisition fees and expenses                                                                          1,081,467

   Cumulative amortization of acquisition fees and expenses                                                (341,334)
                                                                                                    ---------------

Investments in Local Limited Partnerships before valuation allowance                                      6,529,826

Valuation allowance on investments in Local Limited Partnerships                                         (4,487,787)
                                                                                                    ---------------

Investments in Local Limited Partnerships                                                           $     2,042,039
                                                                                                    ===============
</TABLE>

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

Summarized combined financial information of the Local Limited Partnerships in
which the Fund has invested as of December 31, 2007 and 2006 (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:



<PAGE>


           BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED PARTNERSHIP


                  NOTES TO THE FINANCIAL STATEMENTS (Continued)


3. Investments in Local Limited Partnerships (continued)

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

                                                                                   2007                  2006
                                                                             ----------------        ----------

Assets:
   Investment property, net                                                  $     48,276,805    $     58,610,304
   Other assets                                                                     4,447,515           5,555,024
                                                                             ----------------    ----------------
     Total Assets                                                            $     52,724,320    $     64,165,328
                                                                             ================    ================

Liabilities and Partners' Equity (Deficiency):
   Mortgage notes payable                                                    $     45,577,718    $     53,998,792
   Other liabilities                                                                8,102,952          12,960,102
                                                                             ----------------    ----------------
     Total Liabilities                                                             53,680,670          66,958,894
                                                                             ----------------    ----------------

Fund's deficiency                                                                  (2,568,179)         (6,730,549)
Other partners' equity                                                              1,611,829           3,936,983
                                                                             ----------------    ----------------
   Total Partners' Deficiency:                                                       (956,350)         (2,793,566)
                                                                             ----------------    ----------------
   Total Liabilities and Partners' Equity                                    $     52,724,320    $     64,165,328
                                                                             ================    ================

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

                                                                                   2007                  2006
                                                                             ----------------       ------------

Rental and other income                                                      $     12,983,714    $     13,745,552
                                                                             ----------------    ----------------

Expenses:
   Operating                                                                       11,351,598           9,404,589
   Interest                                                                         3,404,603           3,635,926
   Depreciation and amortization                                                    3,388,965           3,590,470
                                                                             ----------------    ----------------
     Total Expenses                                                                18,145,166          16,630,985
                                                                             ----------------    ----------------

Net Loss                                                                     $     (5,161,452)   $     (2,885,433)
                                                                             ================    ================

Fund's share of net loss                                                     $     (4,681,934)   $     (2,561,890)
                                                                             ================    ================
Other partners' share of net loss                                            $       (479,518)   $       (323,543)
                                                                             ================    ================
</TABLE>


For the years ended March 31, 2008 and 2007, the Fund has not recognized
$4,342,927 and $1,714,063, 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.

The Fund's deficiency as reflected by the Local Limited Partnerships of
($2,568,179) differs from the Fund's investments in Local Limited Partnerships
before adjustments of $5,789,693 primarily due to: (i) cumulative unrecognized
losses as described above; (ii) syndication costs charged to equity by the Local
Limited Partnerships that are not reflected in the Fund's investments in Local
Limited Partnerships; (iii) advances to Local Limited Partnerships that the Fund
included in investments in Local Limited Partnerships; (iv) cash distributions
made by Local Limited Partnerships during the quarter ended March 31, 2008 not
reflected in the December 31, 2007 balance sheets of the Local Limited
Partnerships; and (v) differences in the accounting treatment of miscellaneous
items.

The Fund's interests in two of its investments in Local Limited Partnerships
were sold during the year ended March 31, 2008. The Fund did not receive any
sale proceeds due to the Local Limited Partnerships outstanding debts exceeding
the sale proceeds of the Local Limited Partnerships. However, the Fund did
receive $147,901 for one Local Limited Partnership which was used to repay prior
advances to the Local Limited Partnership.





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

                  NOTES TO THE FINANCIAL STATEMENTS (Continued)


3. Investments in Local Limited Partnerships (continued)

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, 2008, the
Fund's escrow balance is $278,198. As of March 31, 2008, $133,417 of interest
due to the Local General Partner is included in due to affiliates.

4.   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 $365,994 and $358,558 have been expensed in the years ended March 31, 2008
and 2007, respectively. During the years ended March 31, 2008 and 2007, $245,000
and $353,444 respectively, were paid out of available cash flow for Asset
Management Fees. Included in due to affiliates at March 31, 2008 is $211,564 of
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, 2008 and 2007 is $142,286 and $121,523,
respectively that the Fund has incurred for these expenses. During the year
ended March 31, 2008 and 2007, salaries and benefits of $70,485 and $121,523,
respectively, were paid to the affiliate of the Managing General Partner. As of
March 31, 2008, $71,801 of these reimbursements remains unpaid.

An affiliate of the General Partner is reimbursed for the actual cost of the
Fund's operating expenses. As of March 31, 2008, $56,309 is reimbursable to the
affiliate.

As of March 31, 2008, two of the Local Limited Partnerships in which the Fund is
invested have loans due to an affiliate of the General Partner which are
included in the Summarized Balance Sheet of the Local Limited Partnerships in
Note 3 of the financial statements. These loans, totaling $1,679,000 have
interest rates ranging from 5.26% to 7.38% and maturity dates from 2013 to 2024.

5.   Federal Income Taxes

The following schedule reconciles the reported financial statement net loss for
the fiscal years ended March 31, 2008 and 2007 to the net loss reported on the
Form 1065, U.S. Partnership Return of Income for the years ended December 31,
2007 and 2006:
<TABLE>
<CAPTION>
<S>                                                                                 <C>                   <C>

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

Net Loss per financial statements                                               $  (1,554,485)        $ (1,112,655)

Equity in losses of Local Limited Partnerships for financial reporting
   purposes in excess of equity in losses for tax purposes                          2,829,003            1,055,507

Equity in losses of Local Limited Partnerships not recognized
   for financial reporting purposes                                                (4,342,927)          (1,714,063)

Adjustment to reflect March 31 fiscal year end to
   December 31 taxable year end                                                        (8,624)             (20,302)

Amortization for tax purposes in excess of amortization
   for financial reporting purposes                                                   (24,783)             (26,874)

Provision for valuation allowance on advances to Local Limited
   Partnerships, net of recovery, not deductible for tax purposes                           -              829,243

</TABLE>


<PAGE>

          BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED PARTNERSHIP

                   NOTES TO THE FINANCIAL STATEMENTS (Continued)

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

5. Federal Income Taxes (continued)

                                                                                     2008                   2007
                                                                               --------------         ------------
Impairment on investments in Local Limited
   Partnerships not deductible for tax purposes                                      595,488                     -

Gain on sale of investments in Local Limited Partnership for financial
   reporting purposes in excess of gain for tax purposes                                   -                 7,288

Gain on write-off of investments in Local Limited Partnerships for tax
   purposes                                                                        (1,269,913)                   -

Cash distributions included in net loss for financial reporting purposes               (8,424)                   -
                                                                                  -------------        -------------

Net Loss per tax return                                                         $  (3,784,665)      $     (981,856)
                                                                                 ==============       ==============
</TABLE>

The differences in the assets and liabilities of the Fund for financial
reporting purposes and tax purposes as of March 31, 2008 and December 31, 2007,
respectively are as follows:
<TABLE>
<CAPTION>
<S>                                                                <C>             <C>               <C>

                                                                Financial
                                                                Reporting            Tax
                                                                Purposes          Purposes           Differences

Investments in Local Limited Partnerships                   $    2,042,039     $   (2,042,026)     $    4,084,065
                                                            ==============     ==============      ==============
Other assets                                                $      892,571     $    7,440,216      $   (6,547,645)
                                                            ==============     ==============      ==============
Liabilities                                                 $      574,160     $      640,895      $      (66,735)
                                                            ==============     ==============      ==============
</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
$7,062,000 more than for financial reporting purposes, including approximately
$7,780,000 of losses the Fund has not recognized relating to Local Limited
Partnerships whose cumulative equity in losses exceed its total investments;
(ii) the cumulative amortization of acquisition fees for tax purposes exceeds
financial reporting purposes by approximately $178,000; (iii) approximately
$58,000 of cash distributions received from Local Limited Partnerships were
received during the three months ended March 31, 2008; (iv) the Fund has
recorded an impairment allowance on its investments in Local Limited
Partnerships for approximately $4,488,000 that is not recorded for tax purposes;
and (v) 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)


6.   Significant Subsidiaries

The following Local Limited Partnerships invested in by the Fund represents more
than 20% of the Fund's total assets or equity as of March 31, 2008 or 2007 or
net losses for the years ended either March 31, 2008 or 2007. The following
financial information represents the performance of these Local Limited
Partnerships for the years ended December 31, 2007 and 2006:
<TABLE>
<CAPTION>
<S>                                                                               <C>                       <C>

Citrus Glen                                                                        2007                      2006
-----------                                                                   ---------------           -----------

Total Assets                                                                  $     5,469,778           $   5,876,778
Total Liabilities                                                             $     5,964,257           $   5,987,452
Revenue                                                                       $     1,489,070           $   1,520,774
Net Loss                                                                      $      (226,055)          $    (208,589)

Fairhaven Manor

Total Assets                                                                  $     1,558,026           $   1,630,971
Total Liabilities                                                             $       812,929           $     840,383
Revenue                                                                       $       343,609           $     341,424
Net Loss                                                                      $       (45,371)          $      (9,173)
</TABLE>

7.   Subsequent Event

On May 29, 2008, the Fund sold its interest in Palo Verde II resulting in net
proceeds to the Fund of $1,437,970.