June 28, 2002



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

       Boston Financial Tax Credit Fund VII, A Limited Partnership
       Annual Report on Form 10-KSB for the Year Ended March 31, 2002
       File Number 0-24584

Dear Sir/Madam:

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

Very truly yours,




/s/Stephen Guilmette
Stephen Guilmette
Assistant Controller


TC710KSB-K


<PAGE>



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

                                   FORM 10-KSB

(Mark One)

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

For the fiscal year ended                  March 31, 2002
                        -----------------------------------------------

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

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

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

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

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

State the aggregate sales price of partnership units held by non-affiliates of
the registrant.
                             $45,581,000 as of March 31, 2002
                            --------------------------------


<PAGE>





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

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







<PAGE>


           BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED PARTNERSHIP

                          ANNUAL REPORT ON FORM 10-KSB
                        FOR THE YEAR ENDED MARCH 31, 2002


                                TABLE OF CONTENTS


                                                                   Page No.

PART I

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

PART II

     Item 5       Market for the Registrant's Units and
                  Related Security Holder Matters                    K-10
     Item 6       Management's Discussion and Analysis of
                  Financial Condition and Results of Operations      K-11
     Item 7       Financial Statements and Supplementary Data        K-14
     Item 8       Changes in and Disagreements with Accountants
                  on Accounting and Financial Disclosure             K-14

PART III

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

SIGNATURES                                                           K-18
----------


<PAGE>


                                     PART I


Item 1.  Business

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

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

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

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


<PAGE>

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

                                     TABLE A

                             SELECTED LOCAL LIMITED
                                PARTNERSHIP DATA


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

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

</TABLE>

*    The Fund's interest in profits and losses of each Local Limited Partnership
     arising from normal operations is 99%, with the exception of Springwood
     which is 19.8%. Profits and losses arising from sale or refinancing
     transactions are allocated in accordance with the respective Local Limited
     Partnership Agreements.

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, 2002, the following Local Limited Partnerships have
a common Local General Partner or affiliated group of Local General Partners
accounting for the specified percentage of the total capital contributions to
Local Limited Partnerships: (i) Oak Ridge Apartments, A Limited Partnership,
Santa Fe Oaks Phase II, A Limited Partnership, Springwood Apartments, A Limited
Partnership and St. Andrews Pointe Apartments, A Limited Partnership,
representing 23.92%, have Flournoy Development Company and John Flournoy as
Local General Partners; (ii) Woods Lane, A Limited Partnership, Crafton Place, A
Limited Partnership and Fountain Lakes, A Limited Partnership, representing
16.92%, have Lindsey Management Company as Local General Partner. The Local
General Partners of the remaining Local Limited Partnerships are identified in
the Acquisition Reports reported on Forms 8-K, which are herein incorporated by
reference.
<page>
The Properties owned by Local Limited Partnerships in which the Fund has
invested are, and will continue to be, subject to competition from existing and
future apartment complexes in the same areas. The success of the Fund will
depend on many outside factors, most of which are beyond the control of the Fund
and which cannot be predicted at this time. Such factors include general
economic and real estate market conditions, both on a national basis and in
those areas where the Properties are located, the availability and cost of
borrowed funds, real estate tax rates, operating expenses, energy costs and
governmental regulations. In addition, other risks inherent in real estate
investment may influence the ultimate success of the Fund, including: (i)
possible reduction in rental income due to an inability to maintain high
occupancy levels or adequate rental levels; (ii) possible adverse changes in
general economic conditions and adverse local conditions, such as competitive
over-building or a decrease in employment or adverse changes in real estate
laws, including building codes; and (iii) possible future adoption of rent
control legislation which would not permit increased costs to be passed on to
the tenants in the form of rent increases or which suppress the ability of the
Local Limited Partnerships to generate operating cash flow. Since some of the
Properties benefit from some form of governmental assistance, the Fund is
subject to the risks inherent in that area including decreased subsidies,
difficulties in finding suitable tenants and obtaining permission for rent
increases. In addition, any Tax Credits allocated to investors with respect to a
Property are subject to recapture to the extent that the Property or any portion
thereof ceases to qualify for the Tax Credits. Other future changes in federal
and state income tax laws affecting real estate ownership or limited
partnerships could have a material and adverse affect on the business of the
Fund.

The Fund is managed by Arch Street VII,  Inc.,  the Managing  General  Partner
of the Fund.  The other  General  Partner of the Fund isArch Street VII Limited
Partnership.  The Fund,  which does not have any  employees,  reimburses  Lend
Lease Real Estate  Investments,Inc., an affiliate of the General  Partners,  for
certain  expenses and overhead costs. A complete  discussion of the management
of the Fund is set forth in Item 9 of this Report.

Item 2.  Properties

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

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

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

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


<PAGE>

<TABLE>
<CAPTION>





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

                                                       Capital Contributions      Mtge. loans                      Occupancy
Local Limited Partnership       Number      Total Committed   Paid Through       payable at                            at
Property Name                       of         at March 31,      March 31,       December 31,        Type of         March 31,
Property Location              Apt. Units            2002           2002               2001          Subsidy*            2002
------------------------------------------- ----------------------------------------------------     -----------    ---------------

Oak Ridge Apartments,
   A Limited Partnership
Oak Ridge
Macon, GA                        152            $2,870,245      $2,870,245       $3,958,549          None               84 %

Santa Fe Oaks Phase II,
   A Limited Partnership
Santa Fe Oaks II
Gainesville, FL                  129             2,698,586       2,698,586        3,580,655          None               98%

Andrew's Pointe Limited
   Partnership
Andrew's Pointe
Burnsville, MN                    57             1,333,800       1,333,800        2,212,127          None              100%

Palo Verde II, A Nevada
   Limited Partnership
Palo Verde II
Henderson, NV                     60             1,324,801       1,324,801        1,047,481          None              100%

Woods Lane, A Limited
   Partnership
Woods Lane
Rogers, AR                       156             2,574,180       2,574,180        3,202,900          None               94%

Crafton Place, A Limited
   Partnership
Crafton Place
Fayetteville, AR                  84             1,365,120       1,365,120        1,601,464          None              100%


</TABLE>

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



                                                   Capital Contributions          Mtge. Loans                       Occupancy
Local Limited Partnership       Number         Total Committed   Paid Through     payable at                            at
Property Name                       of          at March 31,     March 31,       December 31,        Type of         March 31,
Property Location              Apt. Units            2002           2002             2001            Subsidy*            2002
------------------------------------------- ----------------------------------------------------     -----------    ---------------

Guardian Place
   Limited Partnership
Guardian Place
Richmond, VA                     120             2,174,390       2,174,390        2,907,589          None               98%

Twin Oaks Meadows Limited
   Dividend Housing Associatio
   Limited Partnership
Twin Oaks Meadows
Lansing, MI                       63             1,436,400       1,436,400        1,858,095          None               86%

Madera Sunrise Terrace
   Limited Partnership
Sunrise Terrace
Madera, CA                        52             1,523,196       1,523,196          901,309          None               94%

Eden Park Limited
   Partnership
Wynmor
Brooklyn Park, MN                324             5,527,758       5,527,758        5,448,058          None               93%

Affordable Citrus Glen
   Limited Partnership
Citrus Glen
Orlando, FL                      176             4,581,360       4,581,360        5,302,539          None               97%

St. Andrews Pointe Apartments,
   A Limited Partnership
St. Andrews Pointe
Columbia, SC                     150             3,414,528       3,414,528        4,490,684          None               75%

</TABLE>

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



                                                  Capital Contributions          Mtge. Loans                        Occupancy
Local Limited Partnership       Number       Total Committed   Paid Through      payable at                             At
Property Name                       of         at March 31,      March 31,      December 31,         Type of         March 31,
Property Location              Apt. Units            2002           2002              2001           Subsidy*            2002
------------------------------------------- ----------------------------------------------------     -----------    ---------------

Des Moines Street Associates
   Limited Partnership
Des Moines St. Village
Des Moines, IA                    42             1,083,996       1,083,996        1,630,051        Section 8            95%

Fountain Lakes, A Limited
   Partnership
Fountain Lakes
Benton, AR                       180             2,854,593       2,854,593        4,034,409          None               89%

Fairhaven Manor Limited
   Partnership
Fairhaven Manor
Burlington, WA                    40             1,232,020       1,232,020          905,852          None               90%

Grand Boulevard Renaissance I
   Limited Partnership
Grand Boulevard Renaissance
Chicago, IL                       30             1,085,000         921,719        1,853,372        Section 8            87%

Los Claveles, S.E. Limited
   Partnership
Los Claveles II
Trujilio Alto, PR                180             1,272,000         923,374        9,386,677        Section 8            50%

BHP/Harford Commons
   Limited Partnership
Harford Commons
Baltimore, MD                     30             1,187,000       1,128,000         1,736,092         None              100%


</TABLE>
<page>
<TABLE>
<CAPTION>
<S>                             <C>           <C>             <C>               <C>                  <C>             <C>

                                                  Capital Contributions         Mtge. loans                          Occupancy
Local Limited Partnership       Number       Total Committed   Paid Through      payable at                              at
Property Name                       of         at March 31,      March 31,     December 31,           Type of         March 31,
Property Location              Apt. Units            2002           2002            2001             Subsidy*            2002
------------------------------------------- ----------------------------------------------------     -----------    ---------------

Springwood Apartments,
   A Limited Partnership
Springwood
Tallahassee, FL                  113              624,805         624,805        3,763,142          None               99%
                               -----         ------------     -----------      -----------
                               2,138          $40,163,778     $39,592,871       59,821,045
                               =====          ===========     ===========      ===========

*              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.



</TABLE>


<PAGE>



Two Local Limited Partnerships invested in by the Fund each represent more than
10% of the total capital contributions made to Local Limited Partnerships by the
Fund. The first is Eden Park Limited Partnership, which owns Wynmor, a Property,
located in Brooklyn Park, Minnesota. The Property contains 324 apartments in
eleven three-story buildings and represents 13.76% of the total capital
contributions made to the Local Limited Partnerships.

Eden Park Limited Partnership has obtained a $6,000,000 first mortgage loan. The
mortgage is payable in monthly installments of principal and interest in the
amount of $48,922, based on a 25 year amortization period, and accrues interest
at a rate of 8.65%. The unpaid principal and interest is due in one balloon
payment in October of 2020.

The other Local Limited Partnership which represents more than 10% of the total
capital contributions made to Local Limited Partnerships is Affordable Citrus
Glen Limited Partnership which owns Citrus Glen Apartments. Citrus Glen
Apartments, which is located in Orlando, Florida, contains 176 apartments and
represents 11.41% of the total capital contributions made to the Local Limited
Partnerships.

Affordable Citrus Glen Limited Partnership ("Citrus Glen") has obtained
permanent financing in the amount of $3,848,000 at an interest rate of 9.55%.
The note requires monthly principal and interest payments of $32,497, amortized
over a 30 year period, with the unpaid principal balance due in full on February
1, 2010. Additional financing has been obtained in the amount of $1,670,000,
with stated interest at 9%, from the Florida Housing Finance Agency. Due to
other claims against cash flows, the maximum effective rate will be 4.5%, the
rate at which interest is currently being accrued. Repayment is based on the
cash flow of Citrus Glen, beginning on January 10, 1995, with annual payments
due each January 10 through 2009, at which time all outstanding principal and
interest is due. The loan is non-recourse and is collateralized by a second
mortgage on Citrus Glen's rental property and an assignment of leases, rents and
contract rights.

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

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

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

Item 3.  Legal Proceedings

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

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

None.
                                     PART II

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

There is no public market for the Units, and it is not expected that a public
market will develop. If a Limited Partner desires to sell Units, the buyer of
those Units will be required to comply with the minimum purchase and retention
requirements and investor suitability standards imposed by applicable federal or
state securities laws and the minimum purchase and retention requirements
imposed by the Fund. The price to be paid for the Units, as well as the
commissions to be received by any participating broker-dealers, will be subject
to negotiation by the Limited Partner seeking to sell his Units. Units will not
be redeemed or repurchased by the Fund.
<page>
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 April 14, 2002, there were 2,426 record holders of Units of the Fund.

Cash distributions, when made, are paid annually. For the years ended March 31,
2002 and 2001, no cash distributions were made.

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

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

Accounting Policies

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

The Fund accounts for its investments in Local Limited Partnerships using the
equity method of accounting because the Fund does not have control over the
major operating and financial policies of the Local Limited Partnerships in
which it invests. Under the equity method, the investment is carried at cost,
adjusted for the Fund's share of net income or loss and for cash distributions
from the Local Limited Partnerships; equity in income or loss of the Local
Limited Partnerships is included currently in the Fund's operations. Under the
equity method, a Local Limited Partnership investment will not be carried below
zero. To the extent that equity in losses are incurred when the Fund's carrying
value of the respective Local Limited Partnership has been reduced to a zero
balance, the losses will be suspended and offset against future income. Income
from Fund investments where cumulative equity in losses plus cumulative
distributions have exceeded the total investment in Local Limited Partnerships
will not be recorded until all of the related unrecorded losses have been
offset. To the extent that a Local Limited Partnership with a carrying value of
zero distributes cash to the Fund, that distribution is recorded as income on
the books of the Fund and is included in "Other Revenue" in the accompanying
financial statements.

Liquidity and capital resources

At March 31, 2002, the Fund had cash and cash equivalents of $1,193,303 compared
with $607,092 at March 31, 2001. This increase is primarily due to proceeds from
sales and maturities of marketable securities in excess of purchases of
marketable securities and cash distributions received from Local Limited
Partnerships. These increases are partially offset by cash used for operations
and advances to Local Limited Partnerships.

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, 2002, approximately $2,230,000 of cash, cash
equivalents and marketable securities has been designated as Reserves.

To date, professional fees relating to various Property issues totaling
approximately $102,000 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, 2002, the
Fund has advanced approximately $171,000 to Local Limited Partnerships to fund
operating deficits.
<page>
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 $43,000 of Reserves to fund operations. If Reserves are not
adequate to cover the Fund's operations, the Fund will seek other financing
sources including, but not limited to, the deferral of Asset Management Fees
paid to an affiliate of the Managing General Partner or working with Local
Limited Partnerships to increase cash distributions.

At March 31, 2002, the Fund has committed to make future capital contributions
and to pay future purchase price installments on its investments in Local
Limited Partnerships. These future payments are contingent upon the achievement
of certain criteria as set forth in the Local Limited Partnership Agreements and
total approximately $408,000.

Since the Fund invests as a limited partner, the Fund has no contractual duty to
provide additional funds to Local Limited Partnerships beyond its specified
investment. Thus, as of March 31, 2002, the Fund had no contractual or
other obligation to any Local Limited Partnership which had not been paid or
provided for except as disclosed above.

Cash distributions

No cash distributions were made to Limited Partners in the two years ended March
31, 2002 and 2001. It is not expected that cash available for distribution, if
any, will be significant during the 2002 calendar year. Based on the results of
2001 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, many of the Properties benefit from
some type of federal or state subsidy and, as a consequence, are subject to
restrictions on cash distributions.

Results of operations

2002 versus 2001

The Fund's results of operations for the year ended March 31, 2002 resulted in a
net loss of $2,449,337 as compared to a net loss of $2,452,766 for the same
period in 2001. The decrease in net loss is primarily attributable to a decrease
in equity in losses of Local Limited Partnerships, partially offset by an
increase in provision for valuation of investments in Local Limited Partnerships
and a decrease in investment revenue.

Low-income housing tax credits

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

Property discussions

The Fund's investment portfolio consists of limited partnership interests in
nineteen Local Limited Partnerships, each of which own and operate a
multi-family apartment complex. A majority of the Properties have stabilized
operations and operate above break-even. However, some Properties have
persistent operating difficulties that could result in their foreclosure or in
the Managing General Partner deeming it appropriate for the Fund to dispose of
its interest in the Property. Also, the Managing General Partner, in the normal
course of the Fund's business, may desire to dispose of certain Properties. The
following Property discussion focuses only on such Properties.
<page>
As previously reported, Grand Boulevard Renaissance, located in Chicago,
Illinois, has been experiencing operating difficulties and has difficulties in
achieving debt service coverage. As a result, the Local General Partner
negotiated with the lender to reduce the interest rate on the current mortgage.
During 2001, the Property successfully restructured its debt. However, the
Property still struggles with a generally low quality tenant base and, as a
result, rent collection and eviction issues continue to hamper operations. The
Managing General Partner will continue to work closely with the Local General
Partner to monitor Property operations.

Los Claveles II, located in Trujillo Alto, Puerto Rico, continues to perform
poorly. The Property requires significant capital for maintenance and repair,
and faces crime and security issues. Also, occupancy is extremely low. Effective
December 30, 1999, the Property restructured its existing mortgage loan balance,
in the approximate amount of $9 million, into a $4 million first mortgage with
an interest rate of 6% amortized over a 30-year term and a $5 million second
mortgage with no interest and principal payable from cash flow. No debt service
payments were required until November 2000. The reduction in debt service
payments made cash available for use towards the necessary maintenance and
repairs required at the Property. However, the necessary repairs have not yet
been completed and operations have not improved. As a result, the Property was
unable to make the November 1, 2000 debt service payment and a significant
portion of the funds available from the restructuring have been used to pay
operating deficits. The loan is technically in default but the workout agreement
contains a clause that obligates the lender to renegotiate the terms of the
workout agreement in the event that the terms of the agreement are not met.
Unfortunately, the negotiations have not provided any resolution to the issues
that face the property. The Managing General Partner is concerned about the
Property's long-term viability and is reviewing the Fund's options with respect
to its interest in the Property.

Operations at Oak Ridge, located in Macon, Georgia, continue to suffer primarily
due to low occupancy and rental rates. The low occupancy is generally
attributable to lack of public transportation near the site. The site manager is
diligently working to attract more tenants and decrease expenses. These efforts
positively impacted Property operations during the twelve months ended March 31,
2002 as net operating income increased significantly as compared to the same
period in 2001. However, the Property's net operating income is insufficient to
meet debt service payments. The Managing General Partner will continue to work
closely with the management agent and Local General Partner to monitor Property
operations and marketing efforts.

Although operations at Palo Verde remain strong, the Local General Partner filed
for bankruptcy protection and refused to send the Fund its priority cash
distributions, representing a default under the terms of the Local Limited
Partnership Agreement. An affiliate of the Managing General Partner has assumed
the Local General Partner interest and is seeking an acceptable replacement
Local General Partner.

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

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, 2002 and 2001.

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

Item 7.  Financial Statements and Supplementary Data

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

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

None.

                                    PART III


Item 9.  Directors and Executive Officers of the Registrant

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

     Name                        Position

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

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.

Jenny Netzer, age 46, Principal, Head of Housing and Community Investment Group
- Ms. Netzer is responsible for tax credit investment programs to institutional
clients. She joined Lend Lease as a result of the Boston Financial acquisition,
starting with Boston Financial in 1987 and leading Boston Financial's new
business initiatives and managing the firm's Asset Management division. Prior to
joining Boston Financial, Ms. Netzer served as Deputy Budget Director for the
Commonwealth of Massachusetts where she was responsible for the Commonwealth's
health care and public pension program's budgets. Ms. Netzer also served as
Assistant Controller at Yale University, was a former member of Watertown Zoning
Board of Appeals, the Officer of Affordable Housing Tax Credit Coalition and a
frequent speaker on affordable housing and tax credit industry issues. Ms.
Netzer is a graduate of Harvard University (BA) and Harvard's Kennedy School of
Government (MPP).
<page>
Michael H. Gladstone,  age 45,  Principal,  Member,  Legal - Mr. Gladstone is
responsible for legal work in the areas of affordable and conventional  housing
and  investment  products and  services.  He joined Lend Lease as a result of
the Boston  Financial  acquisition, starting  with  Boston  Financial  in 1985
as the firm's  General  Counsel.  Prior to  joining  Boston  Financial,  Mr.
Gladstone  was associated  with the law firm of  Herrick & Smith and  served on
the  advisory  board of the  Housing  and  Development  Reporter.  Mr. Gladstone
lectured at Harvard  University on affordable housing matters and is a member of
the National Realty Committee,  Cornell Real Estate Council,  National
Association of Real Estate Investment  Managers and Massachusetts  Bar. Mr.
Gladstone is a graduate of Emory University (BA) and Cornell University
(J.D. & MBA).

Lauren M. Guillette, age 37, Principal, Member, Legal - Ms. Guillette is
responsible for legal work in the areas of affordable and conventional housing
and investment products and services. She joined Lend Lease as a result of the
Boston Financial acquisition, starting with Boston Financial in 1996 as the
firm's Assistant General Counsel. Prior to joining Boston Financial, Ms.
Guillette was associated with the law firm of Peabody & Brown where she
practiced real estate syndication and securities law. Ms. Guillette is a
graduate of McGill University (BA) and Suffolk University (J.D.).

Item 10.  Management Remuneration

Neither the directors nor officers of Arch Street VII, 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, 2002, 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>
                                                                                                 Amount
     Title of                     Name and Address of                 Beneficially               Percent
     Class                         Beneficial Owner                       Owned                 of Class
------------------       -------------------------------------       ----------------        ---------------

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

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

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

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

Except as described in the preceding paragraphs, neither Arch Street VII, Inc.,
Arch Street VII L.P., Lend Lease nor any of their executive officers, directors,
partners or affiliates is the beneficial owner of any Units. None of the
foregoing persons possesses a right to acquire beneficial ownership of Units.

The Fund does not know of any existing arrangement that might at a later date
result in a change in control of the Fund.
<page>

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, 2002 and 2001 are described below and in the sections of
the Prospectus entitled "Estimated Use of Proceeds", "Management Compensation
and Fees" and "Profits and Losses for Tax Purposes, Tax Credits and Cash
Distributions." Such sections are incorporated herein by reference.

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

Information regarding the Fees paid and expenses reimbursements made in the
three years ended March 31, 2002 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, 2002.

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,
2002.

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 the
base amount of 0.6227% (as adjusted by the CPI factor) of Gross Proceeds
annually as the Asset Management Fee. Fees earned during the years ended March
31, 2002 and 2001 are as follows:
<page>
                                      2002             2001
                                --------------    -------------

   Asset Management Fees        $      313,377    $     304,529



Salaries and benefits expense reimbursements

An affiliate of the Managing General Partner is reimbursed for the cost of the
Fund's salaries and benefits expenses. The reimbursements are based upon the
size and complexity of the Fund's operations. Reimbursements paid or payable
during the years ended March 31, 2002 and 2001 are as follows:

                                                         2002             2001
                                                   --------------    ----------
   Salaries and benefits expense reimbursements
                                                   $    73,936       $  89,441
Cash distributions paid to the General Partners

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

Additional information concerning cash distributions and other fees paid or
payable to the Managing General Partner and its affiliates and the reimbursement
of expenses paid or payable to Lend Lease and its affiliates during the years
ended March 31, 2002 and 2001 is presented in Note 5 to the Financial
Statements.

                                     PART IV

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) Reports on Form 8-K:
    No reports on Form 8-K were filed during the year ended March 31, 2002.



<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 VII, Inc.
           its Managing General Partner


     By:   /s/Jenny Netzer                          Date:    June 28, 2002
           ---------------------------------------           -------------
           Jenny Netzer
           Principal, Head of Housing and
           Community Investment


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

     By:   /s/Jenny Netzer                           Date:    June 28,  2002
           ---------------------------------------            --------------
           Jenny Netzer
           Director


     By:   /s/Michael H. Gladstone                   Date:   June 28,  2002
           -----------------------------                     --------------
           Michael H. Gladstone
           Director

<page>
                        Report of Independent Accountants


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


In our opinion, based upon our audits and the reports of other auditors, the
financial statements listed in the accompanying index present fairly, in all
material respects, the financial position of Boston Financial Tax Credits Fund
VII, A Limited Partnership (the "Fund") as of March 31, 2002, and the results of
its operations and its cash flows for each of the two years in the period ended
March 31, 2002 in conformity with accounting principles generally accepted in
the United States of America. These financial statements are the responsibility
of the Fund's management; our responsibility is to express an opinion on these
financial statements based on our audits. The Fund accounts for its investment
in Local Limited Partnerships, as discussed in Note 2 of the notes to the
financial statements, using the equity method of accounting. We did not audit
the financial statements of the Local Limited Partnerships, investments in which
the Fund's investment in Local Limited Partnerships is stated at $18,029,983 at
March 31, 2002, and the Fund's equity in earnings (losses) of Local Limited
Partnerships is stated at $(1,935,341) and $(2,072,857) for the years ended
March 31, 2002 and 2001, respectively. The financial statements of these Local
Limited Partnerships were audited by other auditors whose reports thereon have
been furnished to us, and our opinion expressed herein, insofar as it relates to
amounts included for Local Limited Partnerships, is based solely upon the
reports of other auditors. We conducted our audits of the Fund's financial
statements in accordance with auditing standards generally accepted in the
United States of America which require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits and the reports of the other auditors provide a reasonable basis for our
opinion.




/s/PricewaterhouseCoopers LLP
June 21, 2002
Boston, Massachusetts


<PAGE>



           BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED PARTNERSHIP

         ANNUAL REPORT ON FORM 10-KSB FOR THE YEAR ENDED MARCH 31, 2002
                                      INDEX


                                                                 Page No.


Report of Independent Accountants
   For the years ended March 31, 2002 and 2001                     F-2

Financial Statements

   Balance Sheet - March 31, 2002                                  F-3

   Statements of Operations - For the years ended
     March 31, 2002 and 2001                                       F-4

   Statements of Changes in Partners' Equity (Deficiency) -
     For the years ended March 31, 2002 and 2001                   F-5

   Statements of Cash Flows - For the years ended
     March 31, 2002 and 2001                                       F-6

   Notes to the Financial Statements                               F-7




<PAGE>


           BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED PARTNERSHIP



                                  BALANCE SHEET
                                 MARCH 31, 2002

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



Assets

Cash and cash equivalents                                                                 $    1,193,303
Marketable securities, at fair value (Note 3)                                                  1,444,348
Restricted cash (Notes 4 and 6)                                                                  253,968
Investments in Local Limited Partnerships (Note 4)                                            18,029,983
Other assets                                                                                      15,976
                                                                                          --------------
     Total Assets                                                                         $   20,937,578
                                                                                          ==============


Liabilities and Partners' Equity

Accounts payable to affiliates (Notes 4 and 5)                                            $      203,396
Accrued expenses                                                                                  35,500
                                                                                          --------------
     Total Liabilities                                                                           238,896
                                                                                          --------------

Commitments (Note 6)

General, Initial and Investor Limited Partners' Equity                                        20,678,230
Net unrealized gains on marketable securities                                                     20,452
                                                                                          --------------
     Total Partners' Equity                                                                   20,698,682
                                                                                          --------------
     Total Liabilities and Partners' Equity                                               $   20,937,578
                                                                                          ==============
The accompanying notes are an integral part of these financial statements.

</TABLE>

<PAGE>



          BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED PARTNERSHIP


                            STATEMENTS OF OPERATIONS
                   For the Years Ended March 31, 2002 and 2001

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


                                                                                    2002                2001
                                                                                -------------      -------------
Revenue:
   Investment                                                                   $     119,899      $     160,417
   Other                                                                               30,495             28,225
                                                                                --------------       ------------
  Total Revenue                                                                       150,394            188,642
                                                                                --------------        -----------

Expenses:
   General and administrative expenses (includes reimbursements to an affiliate
     in the amounts of $73,936 and $89,441, in 2002 and 2001, respectively)
      (Note 5)                                                                        202,417            180,459
   Asset management fees, related party (Note 5)                                      313,377            304,529
   Amortization                                                                        30,623             30,623
   Provision for valuation of advances to
     Local Limited Partnerships                                                       117,973             52,940
                                                                                -------------      -------------
       Total Expenses                                                                 664,390            568,551
                                                                                -------------      -------------

Loss before equity in losses of
   Local Limited Partnerships                                                        (513,996)          (379,909)

Equity in losses of
   Local Limited Partnerships (Note 4)                                             (1,935,341)        (2,072,857)
                                                                                -------------      -------------

Net Loss                                                                        $  (2,449,337)     $  (2,452,766)
                                                                                =============      =============

Net Loss allocated:
   General Partners                                                             $     (24,493)     $     (24,528)
   Limited Partners                                                                (2,424,844)        (2,428,238)
                                                                                -------------      -------------
                                                                                $  (2,449,337)     $  (2,452,766)
                                                                                =============      =============
Net Loss per Limited Partner Unit
   (50,930 Units)                                                               $     (47.61)      $     (47.68)
                                                                                ============       ============

</TABLE>

The accompanying notes are an integral part of these financial statements.
<PAGE>
BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED PARTNERSHIP


             STATEMENTS OF CHANGES IN PARTNERS' EQUITY (DEFICIENCY)
                   For the Years Ended March 31, 2002 and 2001
<TABLE>
<CAPTION>
<S>                                    <C>            <C>           <C>             <C>               <C>

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

Balance at March 31, 2000             $  (188,518)   $   5,000    $   25,763,851    $   (34,505)   $  25,545,828
                                      -----------    ---------    --------------    -----------    -------------

Comprehensive Income (Loss):
   Change in net unrealized losses
     on marketable securities
     available for sale                         -            -                 -         59,457           59,457
   Net Loss                               (24,528)           -        (2,428,238)             -       (2,452,766)
                                      -----------    ---------    --------------    -----------    -------------
Comprehensive Income (Loss)               (24,528)           -        (2,428,238)        59,457       (2,393,309)
                                      -----------    ---------    --------------    -----------    -------------

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

Comprehensive Loss:
   Change in net unrealized gains
     on marketable securities
     available for sale                         -            -                 -         (4,500)          (4,500)

                                         (24,493)       -             (2,424,844)           -         (2,449,337)
  Net Loss                             -----------    ----------   --------------    -----------     -------------
Comprehensive Loss                        (24,493)           -        (2,424,844)        (4,500)      (2,453,837)
                                      -----------    ---------    --------------    -----------    -------------

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



</TABLE>

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

<PAGE>


           BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED PARTNERSHIP


                            STATEMENTS OF CASH FLOWS
                   For the Years Ended March 31, 2002 and 2001
<TABLE>
<CAPTION>
<S>                                                                             <C>              <C>




                                                                                    2002              2001
                                                                                -------------    -------------
Cash flows from operating activities:
   Net Loss                                                                     $  (2,449,337)   $  (2,452,766)
   Adjustments to reconcile net loss
     to net cash used for operating activities:
     Equity in losses of Local Limited Partnerships                                 1,935,341        2,072,857
     Provision for valuation of advances to
       Local Limited Partnerships                                                     117,973           52,940
     Amortization                                                                      30,623           30,623
     Gain on sales of marketable
       securities, net                                                                 (4,559)          (1,633)
     Cash distribution included in net loss                                                 -          (15,000)
     Increase (decrease) in cash arising from
       changes in operating assets and liabilities:
       Restricted cash                                                                 44,104          (18,019)
       Other assets                                                                    10,740            5,214
       Accounts payable to affiliates                                                   4,844           28,468
       Accrued expenses                                                               (34,498)          33,507
                                                                                -------------    -------------
Net cash used for operating activities                                               (344,769)        (263,809)
                                                                                -------------    -------------

Cash flows from investing activities:
   Purchases of marketable securities                                                (900,589)        (961,896)
   Proceeds from sales and maturities
     of marketable securities                                                       1,594,146        1,376,892
   Cash distributions received from Local
     Limited Partnerships                                                             409,114          201,038
   Investments in Local Limited Partnerships                                          (53,718)               -
   Advances to Local Limited Partnerships                                            (117,973)         (52,940)
                                                                                -------------    -------------
Net cash provided by investing activities                                             930,980          563,094
                                                                                -------------    -------------

Net increase in cash and cash equivalents                                             586,211          299,285

Cash and cash equivalents, beginning                                                  607,092          307,807
                                                                                -------------    -------------

Cash and cash equivalents, ending                                               $   1,193,303    $     607,092
                                                                                =============    =============
</TABLE>

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

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

                        NOTES TO THE FINANCIAL STATEMENTS


1.   Organization

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

The Partnership Agreement authorized 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, 2002, the Managing
General Partner has designated approximately $2,230,000 of cash, cash
equivalents and marketable securities as such Reserve.

Generally, profits, losses, tax credits and cash flow from operations are
allocated 99% to the Limited Partners and 1% to the General Partner. Net
proceeds from a sale or refinancing will be allocated 95% to the Limited
Partners and 5% to the General Partner after certain priority payments.

2.   Significant Accounting Policies

Cash and Cash Equivalents

Cash and cash equivalents consist of short-term money market instruments with
original maturities of 90 days or less and approximate fair value.

Marketable Securities

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

Investments in Local Limited Partnerships

The Fund accounts for its investments in Local Limited Partnerships using the
equity method of accounting because the Fund does not have control over the
major operating and financial policies of the Local Limited Partnerships in
which it invests. Under the equity method, the investment is carried at cost,
adjusted for the Fund's share of income or loss of the Local Limited
Partnerships, additional investments in and cash distributions from the Local
Limited

<PAGE>

BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED PARTNERSHIP

                  NOTES TO THE FINANCIAL STATEMENTS (Continued)


2.       Significant Accounting Policies (continued)
---------------------------------------------------

Partnerships. Equity in income or loss of the Local Limited Partnerships is
included in the Fund's operations. The Fund has no obligation to fund
liabilities of the Local Limited Partnerships beyond its investment and
therefore a Local Limited Partnership's investment will not be carried below
zero. To the extent that equity losses are incurred or distributions received
when a Local Limited Partnership's respective investment balance has been
reduced to zero, losses will be suspended to be used against future income and
distributions will be included in income.

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

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

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

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

The General Partners have decided to report results of the Local Limited
Partnerships on a 90 day lag basis because the Local Limited Partnerships report
their results on a calendar year basis. Accordingly, the financial information
about the Local Limited Partnerships that is included in the accompanying
financial statements is as of December 31, 2001 and 2000.

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

Use of Estimates

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

Income Taxes

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


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


                  NOTES TO THE FINANCIAL STATEMENTS (Continued)


3.   Marketable Securities

A summary of marketable securities is as follows:
<TABLE>
<CAPTION>
<S>                                           <C>             <C>            <C>            <C>
                                                                 Gross           Gross
                                                              Unrealized     Unrealized        Fair
                                                 Cost            Gains          Losses         Value
                                             -------------    -----------    -----------    ------------
Debt securities issued by
   the US Treasury and other
   US government corporations
   and agencies                              $   1,299,977    $    17,990    $    (2,592)   $  1,315,375

Mortgage backed securities                         123,919          5,054              -         128,973
                                             -------------    -----------    -----------    -------------

Marketable securities at
   March 31, 2002                            $   1,423,896    $    23,044    $    (2,592)   $  1,444,348
                                             =============    ===========    ===========    =============

The contractual maturities at March 31, 2002 are as follows:
                                                                                                Fair
                                                                            Cost                Value
                                                                        ------------        ------------

Due in less than one year                                               $    700,805        $    704,985
Due in one to five years                                                     599,172             610,390
Mortgage backed securities                                                   123,919             128,973
                                                                        ------------        -------------
                                                                        $  1,423,896        $  1,444,348
                                                                        ============        ============
</TABLE>

Actual maturities for asset backed securities may differ from contractual
maturities because some borrowers have the right to call or prepay obligations.
Proceeds from the maturities of marketable securities were approximately
$1,594,000 and $1,377,000 during the fiscal years ended March 31, 2002 and 2001,
respectively. Included in investment income are gross gains of $4,712 and $2,141
and gross losses of $153 and $508 that were realized on the sales during the
fiscal years ended March 31, 2002 and 2001, respectively.


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


                  NOTES TO THE FINANCIAL STATEMENTS (Continued)


4.   Investments in Local Limited Partnerships

The Fund has limited partnership interests in nineteen Local Limited
Partnerships which were organized for the purpose of owning and operating
multi-family housing complexes, all of which are government-assisted. Upon
dissolution of the Local Limited Partnerships, proceeds will be distributed
according to the respective Local Limited Partnership agreements.

The following is a summary of investments in Local Limited Partnerships at March
31, 2002:
<TABLE>
<CAPTION>
<S>                                                                                           <C>

Capital contributions and advances paid to Local Limited
   Partnerships and purchase price paid to withdrawing
   partners of Local Limited Partnerships                                                      $    39,763,783

Cumulative equity in losses of Local Limited Partnerships
   (excluding cumulative unrecognized losses of $5,842,787)                                        (21,182,303)

Cumulative cash distributions received from Local Limited Partnerships                              (1,384,029)
                                                                                               ---------------

Investments in Local Limited Partnerships before adjustment                                         17,197,451

Excess of investment costs over the underlying net assets acquired:

   Acquisition fees and expenses                                                                     1,252,338

   Cumulative amortization of acquisition fees and expenses                                           (248,893)
                                                                                               ---------------

Investments in Local Limited Partnerships before reserve for
    valuation                                                                                       18,200,896

Reserve for valuation of investments in Local Limited Partnerships                                    (170,913)
                                                                                               ---------------

Investments in Local Limited Partnerships                                                      $    18,029,983
                                                                                               ===============

For the year ended March 31, 2002, the Fund advanced $117,973 to two of the
Local Limited Partnerships, all of which was reserved.
</TABLE>



<PAGE>

BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED PARTNERSHIP

                  NOTES TO THE FINANCIAL STATEMENTS (Continued)


4.  Investments in Local Limited Partnerships (continued)
    ----------------------------------------------------

Summarized financial information of the Local Limited Partnerships in which the
Fund has invested as of December 31, 2001 and 2000 (due to the
Fund's policy of reporting the financial information of its Local Limited
Partnership interests on a 90 day lag basis) is as follows:

Summarized Balance Sheets - as of December 31,

<TABLE>
<CAPTION>
<S>                                                                              <C>                   <C>
                                                                                 2001                  2000
                                                                           ---------------       ---------------
Assets:
   Investment property, net                                                $    77,922,494       $    81,085,313
   Other assets                                                                  6,748,458             7,023,685
                                                                           ---------------       ---------------
Total Assets                                                               $    84,670,952       $    88,108,998
                                                                           ===============       ===============

Liabilities and Partners' Equity:
   Mortgage notes payable                                                  $    59,821,045       $    60,393,190
   Other debt                                                                    6,533,370             5,996,327
                                                                           ---------------       ---------------
     Total Liabilities                                                          66,354,415            66,389,517
                                                                           ---------------       ---------------

Fund's Equity                                                                   11,007,888            14,167,306
Other partners' Equity                                                           7,308,649             7,552,175
                                                                           ---------------       ---------------
     Total Liabilities and Partners' Equity                                $    84,670,952       $    88,108,998
                                                                           ===============       ===============

Summarized Statements of Operations -
for the years ended December 31,
                                                                                 2001                  2000
                                                                           ---------------       ---------------

Rental and other revenue                                                   $    13,467,137       $    12,930,579
                                                                           ---------------       ---------------

Expenses:
   Operating                                                                     8,103,335            10,087,707
   Interest                                                                      4,475,951             4,526,409
   Depreciation and amortization                                                 3,964,683             4,089,322
                                                                           ---------------       ---------------
       Total Expenses                                                           16,543,969            18,703,438
                                                                           ---------------       ---------------

Net Loss                                                                   $    (3,076,832)      $    (5,772,859)
                                                                           ===============       ===============

Fund's share of Net Loss                                                   $    (2,826,637)      $    (5,548,945)
                                                                           ===============       ===============
Other partners' share of Net Loss                                          $      (250,195)      $      (223,914)
                                                                           ===============       ===============
</TABLE>

For the years ended March 31, 2002 and 2001, the Fund has not recognized
$891,296 and $3,476,088, respectively, of equity in losses relating to certain
Local Limited Partnerships in which cumulative equity in losses and
distributions exceeded its total investment in these Local Limited Partnerships.



<PAGE>


           BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED PARTNERSHIP

                  NOTES TO THE FINANCIAL STATEMENTS (Continued)


4.  Investments in Local Limited Partnerships (continued)
    ----------------------------------------------------

The Fund's equity as reflected by the Local Limited Partnerships of $11,007,888
differs from the Fund's investments in Local Limited Partnerships before
adjustment of $17,197,451 primarily because the Fund has not recognized
$5,842,787 of equity in losses of Local Limited Partnerships whose cumulative
equity in losses exceeded its total investment.

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. At March 31, 2002, $90,687 of
interest due to this Local General Partner is included in accounts payable to
affiliates.

5.   Transactions with Affiliates

An affiliate of the Managing General Partner receives a base amount of 0.6227%
(as adjusted by the CPI factor) of Gross Proceeds annually as an Asset
Management Fee for administering the affairs of the Fund. Asset Management Fees
of $313,377 and $304,529 have been included in expenses for the years ended
March 31, 2002 and 2001, respectively. Included in accounts payable to
affiliates is $79,281 for Asset Management Fees at March 31, 2002.

An affiliate of the Managing General Partner is reimbursed for the actual cost
of the Fund's operating expenses. Included in general and administrative
expenses for the years ended March 31, 2002 and 2001 is $73,936 and $89,441,
respectively, that the Fund has paid or accrued for reimbursement for salaries
and benefits. The amounts payable for salaries and benefits at March 31, 2002 is
$33,428.

6.   Commitments

At March 31, 2002, the Fund has committed to make future capital contributions
and pay future purchase price installments on its investments in Local Limited
Partnerships. These future payments are contingent upon the achievement of
certain criteria as set forth in the Local Limited Partnership agreements and
total approximately $571,000. Of this amount, the Fund has set aside $163,281 in
escrow for future capital contributions to one Local Limited Partnership.


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


                  NOTES TO THE FINANCIAL STATEMENTS (Continued)


7.   Federal Income Taxes

The following schedule reconciles the reported financial statement net loss for
the fiscal years ended March 31, 2002 and 2001 to the net loss reported on the
Form 1065, U.S. Partnership Return of Income for the years ended December 31,
2001 and 2000:
<TABLE>
<CAPTION>
<S>                                                                               <C>              <C>
                                                                                  2002             2001
                                                                             ------------      ------------

Net Loss per financial statements                                            $ (2,449,337)     $ (2,452,766)

Adjustment for equity in losses of Local Limited
   Partnerships for financial reporting (tax) purposes in
  excess of equity in losses for tax (financial reporting)
  purposes                                                                       2,976,394         (528,409)

Equity in losses of Local Limited Partnerships not
   recognized for financial reporting purposes                                   (891,296)       (3,476,088)

Adjustment to reflect March 31 fiscal year end
   to December 31 tax year end                                                    (11,851)            5,365

Provision for valuation of advances to Local Limited
   Partnerships not deductible for tax purposes                                   117,973            52,940

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

Cash distributions included in net loss for financial
   reporting purposes                                                                   -           (15,000)
                                                                             ------------      ------------

Net Loss per tax return                                                      $   (273,034)     $ (6,428,875)
                                                                             ============      ============
</TABLE>

The differences in the assets and liabilities of the Fund for financial
reporting purposes and tax reporting purposes as of March 31, 2002 are as
follows:

<TABLE>
<CAPTION>
<S>                                               <C>                      <C>                  <C>
                                                   Financial Tax
                                                      Reporting               Reporting
                                                      Purposes                Purposes          Differences
                                                   -------------           -------------       -------------
Investments in Local Limited Partnerships          $  18,029,983           $  16,761,651       $   1,268,332
                                                   =============           =============       ==============
Other assets                                       $   2,907,595           $   9,130,748       $  (6,223,153)
                                                   =============           =============       =============
Liabilities                                        $     238,896           $     179,690       $      59,206
                                                   =============           =============       =============
</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
$1,366,000 more than for financial reporting purposes, including approximately
$5,843,000 of losses the Fund has not recognized relating to Local Limited
Partnerships whose cumulative equity in losses exceeded its total investment;
(ii) the cumulative amortization of acquisition fees for tax purposes exceeds
financial reporting purposes by approximately $80,000; (iii) approximately
$94,000 of cash distributions received from Local Limited Partnerships were
received during the three months ended March 31, 2002 and; (iv) organizational
and offering costs of approximately $6,305,000 that have been capitalized for
tax purposes are charged to Limited Partners' equity for financial reporting
purposes.




<PAGE>