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July 16, 2007



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

       Boston Financial Tax Credit Fund VII, A Limited Partnership
       Annual Report on Form 10-KSB for the Year End March 31, 2007
       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/Patricia Olsen-Goldberg
Patricia Olsen-Goldberg
Controller


TC710KSB-K


<PAGE>



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

                                   FORM 10-KSB

(Mark One)

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

For the fiscal year end March 31,2007

                                       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, 2007
                          --------------------------------


<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, 2007


                                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-16
     Item 8       Changes in and Disagreements with Accountants
                  on Accounting and Financial Disclosure                 K-16
     Item 8A      Controls and Procedures                                K-17
     Item 8B      Other Information                                      K-17

PART III

     Item 9       Directors and Executive Officers
                  of the Registrant                                      K-17
     Item 10      Management Remuneration                                K-18
     Item 11      Security Ownership of Certain Beneficial
                  Owners and Management                                  K-18
     Item 12      Certain Relationships and Related Transactions         K-19
     Item 13      Exhibits, Financial Statement Schedules and
                  Reports on Form 8-K                                    K-20
     Item 14.     Principal Accountant Fees and Services                 K-21

SIGNATURES                                                               K-22
----------

CERTIFICATIONS                                                           K-23
--------------


<PAGE>


                                     PART I


Item 1.  Business

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

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

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

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


<PAGE>


                                     TABLE A

                             SELECTED LOCAL LIMITED
                                PARTNERSHIP DATA


                                                                        Date
Properties owned by                                                   Interest
Local Limited Partnerships                Location                    Acquired

Oak Ridge                                Macon, GA                    12/31/92
Santa Fe Oaks II (1)                     Gainesville, FL              12/31/92
Andrew's Pointe                          Burnsville, MN               04/13/92
Palo Verde II                            Henderson, NV                05/19/93
Woods Lane                               Rogers, AR                   07/30/93
Crafton Place                            Fayetteville, AR             07/30/93
Guardian Place                           Richmond, VA                 10/07/93
Twin Oaks Meadows                        Lansing, MI                  10/29/93
Sunrise Terrace                          Madera, CA                   11/24/93
Wynmor                                   Brooklyn Park, MN            12/22/93
Citrus Glen                              Orlando, FL                  12/30/93
St. Andrews Pointe                       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

(1) The Fund no longer has an interest in the Local Limited Partnership which
owns this Property.

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, 2007, 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, St.
Andrews Pointe Apartments, A Limited Partnership, and Springwood 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 VIII, Inc., the Managing General Partner of
the Fund. The other General Partner of the Fund is Arch Street VII Limited
Partnership. The Fund, which does not have any employees, reimburses MMA
Financial, Inc. ("MMA") an affiliate of the General Partners, for certain
expenses and overhead costs. A complete discussion of the management of the Fund
is set forth in Item 9 of this Report.

Item 2.  Properties

The Fund currently owns limited partnership interests in eighteen Local Limited
Partnerships which own and operate Properties, some of which benefit from some
form of federal, state or local assistance programs and all of which qualify for
the Tax Credits added to the Code by the Tax Reform Act of 1986. The Fund's
ownership interest in each Local Limited Partnership is 99%, with the exception
of Springwood Apartments which is 19.8%, Eden Park which is 67%, Fountain Lake
which is 90%, and Twin Oaks Meadow which is 95.89%.

Each of the Local Limited Partnerships has received an allocation of Tax Credits
from the relevant state tax credit agency. In general, the Tax Credits run for
ten years from the date the Property is placed in service. The required holding
period (the "Compliance Period") of the Properties is fifteen years. During
these fifteen years, the Properties must satisfy rent restrictions, tenant
income limitations and other requirements, as promulgated by the Code, in order
to maintain eligibility for the Tax Credits at all times during the Compliance
Period. Once a Local Limited Partnership has become eligible for the Tax
Credits, it may lose such eligibility and suffer an event of recapture if its
Property fails to remain in compliance with the requirements.

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

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


<PAGE>



<TABLE>
<CAPTION>


                                                     Capital Contributions
 Local Limited Partnership                      Total             Paid            Mtge. Loans                     Occupancy at
 Property Name                   Number of   Committed at       Through           Payable at           Type of       March 31,
 Property Location             Apts Units   March 31, 2007   March 31, 2007      December 31, 2006    Subsidy *       2007
 --------------------------------------------- ------------      ----------------------------- ------------------------ ----------

<S>                             <C>           <C>                <C>             <C>                    <C>                 <C>
Oak Ridge Apartments,
  A Limited Partnership
Oak Ridge
Macon, GA                        152          $ 2,870,245        $  2,870,245    $  3,648,620            None                88%

Andrew's Pointe Limited
  Partnership
Andrew's Pointe
Burnsville, MN                    57            1,333,800           1,333,800        1,970,031            None                98%

Palo Verde II, A Nevada
  Limited Partnership
Palo Verde II
Henderson, NV                     60             1,324,801          1,324,801           961,206           None                97%

Woods Lane, A Limited
  Partnership
Woods Lane
Rogers, AR                       156             2,574,180          2,574,180         2,919,927           None                92%

Crafton Place, A Limited
  Partnership
Crafton Place
Fayetteville, AR                  84             1,365,120          1,365,120         1,459,985           None               100%
</TABLE>




<PAGE>


<TABLE>
<CAPTION>

                                                   Capital Contributions
Local Limited Partnership                     Total              Paid             Mtge. Loans                         Occupancy at
Property Name                 Number of     Committed at       Through            Payable at             Type of       March 31,
Property Location             Apts Units    March 31, 2007    March 31, 2007     December 31, 2006       Subsidy *       2007
 ------------------------  ------------  ------- ----------  --------------    ------ ---------        ---          ----------

<S>                                <C>        <C>                <C>                 <C>                   <C>           <C>
Guardian Place
  Limited Partnership
Guardian Place                      120       2,174,390         2,174,390             3,517,118            None            95%
Richmond, VA

Twin Oaks Meadows Limited
  Dividend Housing Association
  Limited Partnership
Twin Oaks Meadows
Lansing, MI                          63        1,436,400        1,436,400             1,905,491            None            73%

Madera Sunrise Terrace
  Limited Partnership
Sunrise Terrace
Madera, CA                           52        1,523,196        1,523,196             1,178,812            None            92%

Eden Park Limited
  Partnership
Wynmor
Brooklyn Park, MN                    324        5,527,758       5,527,758             5,792,451            None            94%

Affordable Citrus Glen
  Limited Partnership
Citrus Glen
Orlando, FL                          176        4,581,360        4,581,360             3,358,006           None            93%

St. Andrews Pointe Apartments,
A Limited Partnership
St. Andrews Pointe
Columbia, SC                         150         3,414,528        3,414,528            4,150,803           None            99%
</TABLE>


<PAGE>


<TABLE>
<CAPTION>

                                                        Capital Contributions
Local Limited Partnership                    Total          Paid          Mtge. Loans                                 Occupancy at
Property Name                 Number of    Committed at   Through         Payable at              Type of               March 31,
Property Location            Apts Units   March 31, 2007 March 31, 2007 December 31, 2006        Subsidy *                 2007
 ---------------------------------------------         ------------      --------------     ----------------   ------------------

<S>                              <C>         <C>               <C>             <C>                   <C>                  <C>
Des Moines Street Associates
  Limited Partnership
Des Moines St. Village
Des Moines, IA                    42         1,083,996         1,083,996        1,448,261            Section 8             100%

Fountain Lakes, A Limited
   Partnership
Fountain Lakes
Benton, AR                        180        2,854,593          2,854,593        3,698,945             None                 99%

Fairhaven Manor Limited
       Partnership
Fairhaven Manor
Burlington, WA                     40         1,232,020          1,232,020         800,083              None                100%

Grand Boulevard Renaissance I
   Limited Partnership
Grand Boulevard Renaissance
Chicago, IL                        30        1,085,000            936,719         1,774,351          Section 8              97%

Los Claveles, S.E. Limited
    Partnership
Los Claveles II
Trujilio Alto, PR                 180        1,272,000           1,273,374        10,220,370         Section 8              93%

Springwood Apartments,
    A Limited Partnership
Springwood
Tallahassee, FL                   113         624,805             624,805        3,458,240             None                 98%



</TABLE>

<PAGE>



<TABLE>
<CAPTION>

                                                      Capital Contributions
Local Limited Partnership                    Total             Paid         Mtge. Loans                         Occupancy at
Property Name                Number of      Committed at      Through        Payable at          Type of          March 31,
Property Location           Apts Units    March 31, 2007   March 31, 2007   December 31, 2006    Subsidy *          2007
 -----------------------------------------------------------------------     --------------     ----------

<S>                         <C>            <C>               <C>              <C>                  <C>              <C>
BHP/Harford Commons
 Limited Partnership
Harford Commons
Baltimore, MD                 30            1,187,000         1,128,000       1,736,092            None              100%
                           ------       --------------      -------------  ---------------
                            2,009       $   37,465,192     $  37,259,285   $    53,998,792
                           ======       ==============      =============  ===============
</TABLE>


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





<PAGE>



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

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

Additional information required under this item, as it pertains to the Fund, is
contained in Items 1, 6 and 7 of this Report.

Item 3.  Legal Proceedings

As previously reported, for the past several years the following three
litigation proceedings had been pending between certain investors and various
affiliates of the General Partners, including the Partnership, concerning, among
other things, those investors' requests to inspect certain alleged "books and
records" of the Partnership and the affiliates: Park G.P., Inc. ("Park") brought
a lawsuit against the Partnership and various affiliates of the General Partner
and their purported general partners (collectively, the "Fund Parties") in state
court in Missouri (the "Missouri Lawsuit"); the Fund Parties brought a
declaratory judgment lawsuit against Everest Housing Investors 2, LLC and
several other Everest-related entities (collectively, the "Everest Entities") in
Massachusetts state court (the "Everest Massachusetts Lawsuit"); and Boston
Financial Qualified Housing Tax Credits L.P. IV ("Partnership IV") and its
general partners brought a lawsuit against Park and its affiliate Bond Purchase,
L.L.C. ("Bond") in Massachusetts state court (the "Park and Bond Massachusetts
Lawsuit").

As of April 21, 2007, the Fund Parties and Partnership IV reached an agreement
with Park, Bond and the Everest Entities to resolve these lawsuits (the
"Settlement Agreement"). Under the terms of the Settlement Agreement, the claims
and counterclaims asserted in the Everest Massachusetts Lawsuit have been
dismissed with prejudice and the claims in the Missouri Lawsuit and the Park and
Bond Massachusetts Lawsuit have been dismissed without prejudice, all in
exchange for options, subject to various conditions, to purchase certain Local
Limited Partnership interests held by Partnership IV, Boston Financial Qualified
Housing Tax Credits L.P. III, Boston Financial Qualified Housing Tax Credits
L.P. V and Boston Financial Tax Credit Fund VII, A Limited Partnership at
specified prices.

With respect to the Partnership, the Settlement Agreement provides options,
subject to various conditions, to purchase the Partnership's interests in
Affordable/Citrus Glen, Ltd., located in Orlando, FL, Woods Lane, L.P., located
in Rogers, AR, and Fountain Lakes, L.P., located in Benton, AR, for specified
prices aggregating to $3,705,000.

Except as noted above, the Partnership is not a party to any pending legal or
administrate proceeding, and to the best of its knowledge, no legal or
administrative proceeding is threatened or contemplated against it.

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

None.
                                     PART II

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

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

The Partnership Agreement does not impose on the Fund or its General Partners
any obligation to obtain periodic appraisals of assets or to provide Limited
Partners with any estimates of the current value of Units.
<PAGE>
As of March 31, 2007, there were 2,305 record holders of Units of the Fund.

Cash distributions, when made, are paid annually. For the years ended March 31,
2007 and 2006, 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
Partnership 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 Partnership believes the forward-looking statements are based on reasonable
assumptions, the Partnership 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.

Executive Level Overview

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

As of March 31, 2007, the Fund's investment portfolio consists of limited
partnership interests in eighteen Local Limited Partnerships, each of which owns
and operates a multi-family apartment complex and each of which has generated
Tax Credits. As a result of the sale of one property, St. Andrews Pointe,
located in Columbus, South Carolina, on May 31, 2007, the Fund's investment
portfolio currently consists of limited partnership interests in seventeen Local
Limited Partnerships. Since inception, the Fund has generated Tax Credits of
approximately $1,485 per Limited Partner Unit. In the aggregate, actual and
estimated Tax Credits enabled the Fund to meet the objective specified in the
Fund's prospectus.

Properties that receive low income housing Tax Credits must remain in compliance
with rent restriction and set-aside requirements for at least 15 calendar years
from the date the property is placed in service. Failure to do so would result
in the recapture of a portion of the property's Tax Credits. Between 2007 and
continuing through 2009, the Compliance Periods of the eighteen Properties in
which the Fund has an interest will expire. The Managing General Partner has
negotiated agreements that will ultimately dispose of the Fund's interest in
five Local Limited Partnerships. One of the Local Limited Partnerships in which
the Fund had an interest was disposed of during the twelve months ended March
31, 2007.

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



<PAGE>
Critical Accounting Policies

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

The Local Limited Partnerships in which the Fund invests are Variable Interest
Entities ("VIE"s). The Fund is involved with the VIEs as a non-controlling
limited partner equity holder. Because the Fund is not the primary beneficiary
of these VIEs, it accounts for its investments in the Local Limited Partnerships
using the equity method of accounting. As a result of its involvement with the
VIEs, the Fund's exposure to economic and financial statement losses is limited
to its investments in the VIEs ($3,394,658 at March 31, 2007). The Fund may be
subject to additional losses to the extent of any financial support that the
Fund voluntarily provides in the future. Under the equity method, the investment
is carried at cost, adjusted for the Fund's share of net income or loss and for
cash distributions from the Local Limited Partnerships; equity in income or loss
of the Local Limited Partnerships is included currently in the Fund's
operations. Under the equity method, a Local Limited Partnership investment will
not be carried below zero. To the extent that equity in losses are incurred when
the Fund's carrying value of the respective Local Limited Partnership has been
reduced to a zero balance, the losses will be suspended and offset against
future income. Income from Local Limited Partnerships, where cumulative equity
in losses plus cumulative distributions have exceeded the total investment in
Local Limited Partnerships, will not be recorded until all of the related
unrecorded losses have been offset. To the extent that a Local Limited
Partnership with a carrying value of zero distributes cash to the Fund that
distribution is recorded as income on the books of the Fund and is included in
"other revenue" in the accompanying financial statements.

The Fund has implemented policies and practices for assessing
other-than-temporary declines in values of its investments in Local Limited
Partnerships. Periodically, the carrying values of the investments are compared
to their respective fair values. If an other-than-temporary decline in carrying
value exists, a provision to reduce the asset to fair value, as calculated based
primarily on remaining tax benefits, will be recorded in the Fund's financial
statements. During the year ended March 31, 2006, the Fund concluded that two of
the Local Limited Partnerships had experienced other-than-temporary declines in
their carrying value and impairment losses were recorded: Des Moines Street
Associates LP for approximately $133,000 and Grand Boulevard Renaissance I LP
for approximately $13,000. Generally, the carrying values of most Local Limited
Partnerships will decline through losses and distributions in amounts sufficient
to prevent other-than-temporary impairments. However, the Partnership may record
similar impairment losses in the future if the expiration of tax credits
outpaces losses and distributions from any of the Local Limited Partnerships.

Liquidity and Capital Resources

At March 31, 2007, the Fund had cash and cash equivalents of $557,329 as
compared with $546,806 at March 31, 2006. This increase is primarily due to
maturity proceeds of investment securities, proceeds received from sale of
investments in Local Limited Partnerships, and cash distributions received from
Local Limited Partnerships. These increases are partially offset by cash used
for operations and advances made to Local Limited Partnerships. Cash used for
operations includes $353,444 to the Managing General Partner for accrued asset
management fees.

The Managing General Partner initially designated 5% of the Gross Proceeds as
Reserves, as defined in the Partnership Agreement. The Reserves were established
to be used for working capital of the Fund and contingencies related to the
ownership of Local Limited Partnership interests. The Managing General Partner
may increase or decrease such Reserves from time to time, as it deems
appropriate. At March 31, 2007, approximately $498,000 has been designated as
Reserves.

To date, professional fees relating to various Property issues totaling
approximately $125,000 have been paid from Reserves. In the event a Local
Limited Partnership encounters operating difficulties requiring additional
funds, the Fund's management might deem it in its best interest to voluntarily
provide such funds in order to protect its investment. As of March 31, 2007, the
Fund has advanced approximately $1,625,000 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 $299,000 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, 2007, 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 $59,000.

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, 2007, 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, 2007. The Fund is currently working on disposing of its interest in certain
Local Limited Partnerships during the next twelve months. These dispositions may
result in cash available for distribution, but due to the uncertainty of the
sales, no guarantees can be made as to the extent of their outcome on
distributions to Limited Partners. Based on the results of 2006 Property
operations, the Local Limited Partnerships are not expected to distribute
significant amounts of cash to the Fund because such amounts will be needed to
fund Property operating costs. In addition, some of the Properties benefit from
some type of federal or state subsidy and, as a consequence, are subject to
restrictions on cash distributions.

Results of Operations

The Fund's results of operations for the year ended March 31, 2007 resulted in a
net loss of $1,112,655 as compared to a net loss of $2,276,364 for the same
period in 2006. The decrease in net loss is primarily attributable to a decrease
in equity in losses of Local Limited Partnerships and an increase in gain on
sale of investments in Local Limited Partnerships. The decrease in net loss is
partially offset by an increase in provision for valuation allowance on advances
to Local Limited Partnerships and an increase in general and administrative
expenses. Equity in losses decreased primarily due to an increase in
unrecognized losses by the Fund of Local Limited Partnerships with carrying
values of zero. The increase in gain on sale of investments in Local Limited
Partnerships is due to the sale of one Local Limited Partnership during the
current year. The increase in provision for valuation allowance on advances to
Local Limited Partnerships is the result of a reserve for advances made to one
Local Limited Partnership. The increase in general and administrative expenses
is due to increase legal expenses associated with litigation in which the Fund
is involved partially offset by a decrease in charges due to an affiliate of the
Managing General Partner for operation and administrative expenses necessary for
operations of the Fund.

Low-Income Housing Tax Credits

The 2006 and 2005 Tax Credits were $0.31 and $10.40 per Unit, respectively. The
Tax Credits per Limited Partner stabilized in 1996 at approximately $147 per
Unit. The Tax Credits were expected to be stable for about seven years
subsequent to 1996 and then to decrease as certain Properties reached the end of
the ten year Tax Credit period. However, because the Compliance Periods 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.
The credits have decreased significantly as all properties have reached the end
of the ten year credit period.


<PAGE>
Property Discussions

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

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

As previously reported, Los Claveles II, located in Trujillio Alto, Puerto Rico,
operated at above breakeven during the three-month period ending September 30,
2006. As of December 31, 2006 above breakeven operations were also achieved as
high occupancy levels and the implementation of operating expense control
measures proved successful. The Property continues to be current on its loan
obligations. In addition, a site visit conducted by a representative of the
Managing General Partner in November 2006 indicated the Property is in
acceptable physical shape. The Managing General Partner, concerned about the
Property's long-term viability, signed an agreement in December 2002 with the
Local General Partner whereby the Fund would pay its remaining capital
commitment of $350,000 and release Fund Reserves of approximately $50,000 in
exchange for an exit option that would allow the Fund to put its interest to the
Local General Partner at any time for $10,000. In addition, the Local General
Partner has the right, subsequent to the expiration of the Compliance Period on
December 31, 2008, to call the Fund's interest for a price of $10,000. As part
of the agreement, the Local General Partner is providing an operating guarantee
in the form of a Local General Partner indemnification of any loss or any
recapture of Tax Credits through the end of the Compliance Period.

As previously reported, Grand Boulevard Renaissance, located in Chicago,
Illinois, continues to experience operating difficulties. Although acceptable
occupancy levels have been achieved throughout the twelve-month period ending
December 31, 2006, working capital and debt service coverage ratios remain below
appropriate levels. A representative of the Managing General Partner conducted a
physical inspection as part of an October 2006 site visit and assigned an
unfavorable rating as the Property has significant deferred maintenance issues.
The Managing General Partner's representative also considers property management
to be weak and limited in capacity to address the physical needs of the
Property. Advances from the Local General Partner and working capital have
enabled the Property to remain current on its loan obligations. In response to
prior deficits, during 2001 the Local General Partner negotiated with the first
mortgage lender to reduce the interest rate on the current first mortgage. In
addition, in an effort to further reduce the Property's debt service burden, in
July 2003 the Local Limited Partnership and the Illinois Housing Development
Authority closed on a mortgage restructuring of the second mortgage that reduced
monthly debt service payments until June 1, 2005. As part of the transaction,
the management agent agreed to subordinate a percentage of its management fee to
payment of the second mortgage debt service.
<PAGE>
As previously reported, in an effort to reduce the Fund's risk to chronic
operating difficulties at Wynmor, located in Brooklyn Park, Minnesota, the
Managing General Partner and Local General Partner, on October 1, 2003, entered
into an agreement to transfer a portion of the Fund's interest in the Property's
future Tax Credits (approximately $11 per Unit) and tax losses to the Local
General Partner. In return, the Local General Partner agreed to deposit $500,000
into an escrow to be used to fund current and future operating deficits and to
fund as much as an additional $500,000 to cover future operating deficits. The
Managing General Partner and Local General Partner also have an agreement that
allows for the Managing General Partner to put the Fund's interest to the Local
General Partner for $1 any time after October 1, 2003 and that the Local General
Partner could call the Fund's interest for fair market value any time after
January 2, 2009. Although working capital levels remain below acceptable levels,
the Property operated above breakeven throughout the twelve-month period ending
December 31, 2006 and achieved acceptable occupancy levels during the same
period. The Compliance Period ends for the Property on December 31, 2008.

As previously reported, the Managing General Partner and Local General Partner
of St. Andrews Pointe, located in Columbia, South Carolina, were exploring an
exit strategy that would allow for the 2007 disposition of the Fund's interest
in the Local Limited Partnership that owns the Property. On May 31, 2007, the
Property was sold, effectively terminating the Fund's interest in the Local
Limited Partnership. The Fund did not receive any sales proceeds as the
outstanding debt on the property exceeded the sales price of the Property. The
Fund did receive $147,901 as a repayment of prior advances. This sale is
expected to result in a 2007 taxable loss projected to be approximately
$116,000, or $2.28 per Unit. This sale occurred prior to the expiration of the
Property's compliance period, requiring the Fund to post a surety bond to
mitigate the potential risk of recapture. The buyer will also be required to
maintain the Property's tax credit compliance through December 31, 2007, the
expiration of the Property's compliance period. The Fund no longer has an
interest in this Local Limited Partnership.

As previously reported, the Local General Partner of Twin Oaks Meadows, located
in Lansing, Michigan, with the Fund's consent, obtained soft loan financing in
May 2004 to undertake much needed security improvements to the Property, reduce
payables and fund operating deficits. In return for its consent, the Fund
received a put option that allows the Fund to transfer its interest in the Local
Limited Partnership for a nominal price to the Local General Partner at any time
subsequent to the end of the Property's Compliance Period on December 31, 2009.
Working capital and debt service levels remain below acceptable levels at
December 31, 2006. Occupancy declined to 73% as of December 31, 2006.

As previously reported, Des Moines Street Village, located in Des Moines, Iowa,
returned to below breakeven operations during the three-month period ending
September 30, 2006. Due to the expiration of recent real estate tax abatement,
the Property operated at below breakeven for the twelve-month period ending
December 31, 2006. Debt service coverage and working capital levels remain below
appropriate levels at December 31, 2006, while occupancy rose to 97% as of
December 31, 2006. The Local General Partners have met their Working Capital
obligations under the Partnership Agreement and refuse to advance additional
funds to the property. As a result, the property is in default under its loan
agreements for failure to fully pay the real estate taxes due on March 31, 2007.
The property may require advances from the Fund in order to alleviate real
estate tax and first mortgage loan debt service covenant requirements. While the
Local General Partner had previously funded deficits and the Property has
remained current on its debt obligations, the Local General Partner requested
and the Managing General Partner approved a reduced rate refinancing of the
Property's first mortgage that occurred in April 2004. As part of this
transaction, the Managing General Partner and the Local General Partner entered
into a put agreement whereby the Fund can transfer its interest in the Local
Limited Partnership for a nominal amount at any time after the expiration of the
Compliance Period on December 31, 2009.

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

As previously reported, Guardian Place, located in Richmond, Virginia, closed on
a refinancing of its existing debt on July 29, 2005. In addition to an annual
debt service reduction of approximately $49,000, additional loan proceeds were
utilized to retire a second mortgage and provide for a distribution of
refinancing proceeds of $212,461 to the Fund on August 1, 2005. The Managing
General Partner, in accordance with and as permitted by the Partnership
Agreement, retained the entire amount of refinancing proceeds in Reserves. As
part of this transaction, the Managing General Partner and the Local General
Partner entered into an agreement that would allow for a sale at the end of the
Compliance Period on December 31, 2009.
<PAGE>
As previously reported, operations at Oak Ridge, located in Macon, Georgia,
continue to suffer primarily due to very low occupancy levels and low rental
rates. Although occupancy improved to 80% at December 31, 2006, occupancy
continues to remaining below acceptable levels. The low occupancy levels are
generally attributable to a lack of public transportation near the site and a
struggling economy in the Macon area. The Property's net operating income
remains insufficient to meet debt service payments. Therefore, the Local General
Partner continues to advance the funds necessary for the Property to stay
current on its loan obligations. The Managing General Partner will continue to
work closely with the management agent and Local General Partner to monitor
Property operations. The Managing General Partner and Local General Partner
continue to explore an exit strategy that would allow for a disposal of the
Fund's interest in the Local Limited Partnership.

As previously reported, although operations at Palo Verde II, located in
Henderson, Nevada, remain strong, the former Local General Partner filed for
bankruptcy protection and refused to remit to the Fund its priority cash
distributions, representing a default under the terms of the Local Limited
Partnership Agreement. An affiliate of the Managing General Partner assumed the
Local General Partner interest in September 2001. Since the statute of
limitations on potential litigation involving one of the former Local General
Partners expired in 2005, the Managing General Partner currently expects a 2007
disposal of the Fund's interest in this Local Limited Partnership. Net proceeds,
if any, are inestimable at this time.

In connection with the Settlement Agreement described in the "Legal Proceedings"
section above, the Partnership has granted options, subject to various
conditions, to sell its interests in Affordable/Citrus Glen, Ltd., located in
Orlando, FL, Woods Lane, L.P., located in Rogers, AR and Fountain Lakes, L.P.,
located in Benton, AR for $3,705,000.

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, 2007 and 2006.

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

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

Item 7.  Financial Statements and Supplementary Data

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

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

None.



<PAGE>
Item 8A.  Controls and Procedures

Based on their evaluation, required by the Securities Exchange Act Rules
13a-15(d) and 15d-15(d), the Fund's principal executive officer and
principal financial officer have concluded that the Fund's disclosure
controls and procedures (as defined in Securities Exchange Act Rules 13a-15(d)
and 15d-15(d)) were effective as of March 31, 2007 to ensure that information
required to be disclosed by the Fund in reports that it files or submits
under the Securities Exchange Act is recorded, processed, summarized and
reported within the time periods specified in the Securities and Exchange
Commission rules and forms and were effective as of March 31, 2007 to ensure
that information required to be disclosed by the Fund issuer in the
reports that it files or submits under the Securities Exchange Act is
accumulated and communicated to the Fund's management, including its
principal executive and principal financial officers, or persons performing
similar functions, as appropriate to allow timely decisions regarding required
disclosure.

There were no other changes in the Fund's internal control over financial
reporting identified in connection with the evaluation required by paragraph (d)
of the Securities and Exchange Act Rules 13a-15(d) or 15d-15(d) that occurred
during the quarter ended March 31,2007 that affected, or were reasonably likely
to affect, the Fund's internal control over financial reporting.


Item 8B.  Other Information

The  following reports on Form 8-K were filed during the fourth quarter of the
     year ended March 31, 2007: Form 8-K dated February 27, 2007

                                    PART III

Item 9.  Directors and Executive Officers of the Registrant

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

     Name                                           Position

Gary Mentesana                                   Executive Vice President
Michael H. Gladstone                             Principal, Member

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

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

The business experience of each of the persons listed above is described below.
There is no family relationship between any of the persons listed in this
section.

Gary A. Mentesana, age 42, Executive Vice President, Head of the Affordable
Housing Group - Mr. Mentesana has been Executive Vice President of MuniMae (the
"Company") since July 2003. He is the head of the Company's Affordable Housing
Group and is responsible for both the affordable tax exempt and taxable lending
and equity businesses. Prior to his appointment as EVP, Mr. Mentesana served as
the Company's Chief Capital Officer as well as the Company's Chief Financial
Officer. Mr. Mentesana's tenure with the Company began with the Company's
predecessor, the SCA Tax-Exempt Fund Limited Partnership, in 1988. Prior to
joining the Company, Mr. Mentesana worked for Coopers and Lybrand and was a
Certified Public Accountant. Mr. Mentesana graduated from the University of
Rhode Island.

Michael H. Gladstone, age 50, Principal, Member - Mr. Gladstone is responsible
for capital transactions work in the Asset Management group of MMA. He joined
MMA as a result of the Boston Financial and Lend Lease HCI acquisitions,
starting with Boston Financial in 1985 as the firm's General Counsel. Prior to
joining Boston Financial, Mr. Gladstone was associated with the law firm of
Herrick & Smith and served on the advisory board of the Housing and Development
Reporter. Mr. Gladstone has lectured at Harvard University 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).
<PAGE>
The Fund is organized as a limited partnership solely for the purpose of real
estate investment and does not have any employees. Therefore the Fund has not
adopted a Code of Ethics.

The Fund is structured as a limited partnership that was formed principally for
real estate investment and is not "listed" issuer as defined by Rule 10A-3 of
the Securities Exchange Act of 1934. Accordingly, neither an audit committee nor
a financial expert to serve on such a committee has been established by the
Fund.

Item 10.  Management Remuneration

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

Item 11.  Security Ownership of Certain Beneficial Owners and Management

As of March 31, 2007, the following is the only entity known to the Fund to be
the beneficial owner of more than 5% of the Units outstanding:


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

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

Oldham Institutional Tax Credits LLC, is an affiliate of Arch Street VIII,
Inc., the Managing General Partner.  The equity securities registered by the
Fund under Section 12(g) of the Act of 1934 consist of 100,000 Units, 50,930 of
which were sold to the public. The remaining Units were deregistered in
Post-Effective Amendment No. 4 dated January 20, 1995, which is herein
incorporated by reference. Holders of Units are permitted to vote on matters
affecting the Fund only in certain unusual circumstances and do not generally
have the right to vote on the operation or management of the Fund.

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

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

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

Item 12.  Certain Relationships and Related Transactions

The Fund was required to pay certain fees to and reimburse certain expenses of
the Managing General Partner or its affiliates in connection with the
organization of the Fund and the offering of Units. The Fund is also required to
pay certain fees to and reimburse certain expenses of the Managing General
Partner or its affiliates in connection with the administration of the Fund and
its acquisition and disposition of investments in Local Limited Partnerships. In
addition, the General Partners are entitled to certain Fund distributions under
the terms of the Partnership Agreement. Also, an affiliate of the General
Partners will receive up to $10,000 from the sale or refinancing proceeds of
each Local Limited Partnership, if it is still a limited partner at the time of
such transaction. All such fees, expenses and distributions paid during the
years ended March 31, 2007 and 2006 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.
<PAGE>
The Fund is permitted to enter into transactions involving affiliates of the
Managing General Partner, subject to certain limitations established in the
Partnership Agreement.

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

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,
2007.

Asset Management Fees

In accordance with the Partnership Agreement, an affiliate of the Managing
General Partner is paid an annual fee for services in connection with the
administration of the affairs of the Fund. The affiliate currently receives 0.5%
(annually adjusted by the CPI factor) of Gross Proceeds as the annual Asset
Management Fee. Fees earned in each of the two years ended March 31, 2007 and
2006 are as follows:

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

Asset management fees         $      358,558        $        341,824





<PAGE>
Salaries and Benefits Expense Reimbursements

An affiliate of the Managing General Partner is reimbursed for the cost of the
Fund's salaries and benefits expenses. The reimbursements are based upon the
size and complexity of the Fund's operations. Reimbursements paid or payable in
each of the two years ended March 31, 2007 and 2006 are as follows:

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

Salaries and benefits expense reimbursements    $ 121,523        $ 122,687

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 MMA and its affiliates during the years ended
March 31, 2007 and 2006 is presented in Note 4 to the Financial Statements.

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

(a) Documents filed as a part of this Report

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

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

(b)      Exhibits

31.1 Certification of Principal Executive Officer and Principal Financial
     Officer pursuant to section 302 of the Sarbanes-Oxley Act of 2002
32.1 Certification of Principal Executive Officer and Principal Financial
     Officer pursuant to section 906 of the Sarbanes-Oxley Act of 2002

Item 14.   Principal Accountant Fees and Services

The Partnership paid or accrued fees for services rendered by the principal
accountant for the two years ended March 31, 2007 as follows:

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

Audit fees              $       59,690           $    71,762
Tax fees                $        2,400           $     2,400

No other fees were paid or accrued to the principal accountants during the two
years ended March 31, 2007.


<PAGE>


                                   SIGNATURES



Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, the registrant has duly caused this Report to be signed on its
behalf by the undersigned, thereunto duly authorized.

      BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED PARTNERSHIP

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


      By:  /s/Gary Mentesana                  Date:   July 16, 2007
           ---------------------------            -   ---------------------
           Gary Mentesana
           President
           Arch Street VIII, Inc.


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

      By:  /s/Gary Mentesana                 Date:   July 16, 2007
           --------------------------------------        ---------------------
           Gary Mentesana
           President
           Arch Street VIII, Inc.


     By:   /s/Michael H. Gladstone            Date:    July 16, 2007
           --------------------------------           ----------------------
           Michael H. Gladstone
           Vice President
           Arch Street VIII, Inc.





<PAGE>




<PAGE>



<PAGE>
Microsoft Word 11.0.6502;








                  BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED PARTNERSHIP

             ANNUAL REPORT ON FORM 10-KSB FOR THE YEAR ENDED MARCH 31, 2007
                                      INDEX


                                                                     Page No.


Report of Independent Registered Public Accounting Firm
   for the years ended March 31, 2007 and 2006                          F-2

Financial Statements

   Balance Sheet - March 31, 2007                                       F-3

   Statements of Operations - For the years ended
     March 31, 2007 and 2006                                            F-4

   Statements of Changes in Partners' Equity (Deficiency) -
     For the years ended March 31, 2007 and 2006                        F-5

   Statements of Cash Flows - For the years ended
     March 31, 2007 and 2006                                            F-6

   Notes to the Financial Statements                                    F-7




<PAGE>







             Report of Independent Registered Public Accounting Firm


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


In our opinion, the financial statements listed in the accompanying index
present fairly, in all material respects, the financial position of Boston
Financial Tax Credit Fund VII, A Limited Partnership ("the Partnership") at
March 31, 2007, and the results of its operations and its cash flows for each of
the two years in the period ended March 31, 2007 in conformity with accounting
principles generally accepted in the United States of America. These financial
statements are the responsibility of the Partnership's management. Our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these statements in accordance with the
standards of the Public Company Accounting Oversight Board (United States).
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.


PricewaterhouseCoopers, LLP

Boston, Massachusetts
June 22, 2007


<PAGE>


                 BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED PARTNERSHIP




                                  BALANCE SHEET
                                 MARCH 31, 2007


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

Assets

Cash                                                                                              $       557,329
Restricted cash (Notes 3 and 5)                                                                           262,065
Investments in Local Limited Partnerships (Note 3)                                                      3,187,377
Due from affiliates (Note 4)                                                                               58,920
Accounts receivable                                                                                       147,901
                                                                                                  ---------------
        Total Assets                                                                              $     4,213,592
                                                                                                  ===============

Liabilities and Partners' Equity

Due to affiliates (Notes 3 and 4)                                                                 $       207,854
Accrued expenses                                                                                           49,846
Other liabilities                                                                                          40,957
                                                                                                  ---------------
   Total Liabilities                                                                                      298,657
                                                                                                  ---------------

Commitments (Note 5)

General, Initial and Investor Limited Partners' Equity                                                  3,914,935
                                                                                                  ---------------
   Total Liabilities and Partners' Equity                                                         $     4,213,592
                                                                                                  ===============
</TABLE>

     The accompanying notes are an integral part of thesefinancial statements.

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


                                STATEMENTS OF OPERATIONS
                     For the Years Ended March 31, 2007 and 2006


<TABLE>
<CAPTION>

                                                                                 2007                     2006
                                                                           ----------------         ----------
<S>                                                                       <C>                     <C>
 Revenue:
   Investment                                                              $         34,498        $         35,616
   Other                                                                             30,000                  30,000
                                                                           ----------------        ----------------
     Total Revenue                                                                   64,498                  65,616
                                                                           ----------------        ----------------

Expense:
   Asset management fees, affiliate (Note 4)                                        358,558                 341,824
   Provision for valuation allowance on advances to Local
     Limited Partnerships, net of recovery (Note 3)                                 829,243                 200,275
   Provision for valuation allowance on investments in Local
     Limited Partnerships (Note 3)                                                        -                 146,158
   General and administrative (includes reimbursements
     to an affiliate in the amount of $121,523 and
     $122,687 in 2007 and 2006, respectively) (Note 4)                              345,079                 323,717
   Amortization                                                                       6,799                 21,558
                                                                                  --------                  -------
     Total Expense                                                                1,549,679               1,033,532
                                                                           ----------------        ----------------

Loss before equity in losses of Local Limited Partnerships                       (1,485,181)               (967,916)

Equity in losses of Local Limited Partnerships (Note 3)                            (847,827)             (1,308,448)

Gain on sale of investments in Local Limited Partnerships (Note 3)                1,220,353                       -
                                                                           ----------------        ----------------

Net Loss                                                                   $     (1,112,655)       $     (2,276,364)
                                                                           ================        ================

Net Loss allocated:
   General Partners                                                        $        433,194        $        (22,764)
   Limited Partners                                                              (1,545,849)             (2,253,600)
                                                                           ----------------        ----------------
                                                                           $     (1,112,655)       $     (2,276,364)
                                                                           ================        ================
Net Loss per Limited Partner Unit
   (50,930 Units)                                                          $         (30.35)       $         (44.25)
                                                                           ================        ================
</TABLE>

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

                STATEMENTS OF CHANGES IN PARTNERS' EQUITY (DEFICIENCY)
                        For the Years Ended March 31, 2007 and 2006


<TABLE>
<CAPTION>

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

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

Comprehensive Loss:
  Change in net unrealized
       losses on investment securities
       available for sale                             -                  -                 -            (1,534)            (1,534)
  Net Loss                                          (22,764)                -       (2,253,600)              -         (2,276,364)
                                               -------------     --------------   --------------  ---------------   --------------
Comprehensive Loss                                  (22,764)                -       (2,253,600)         (1,534)        (2,277,898)
                                               -------------     --------------  --------------  ---------------    --------------

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

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

Balance at March 31, 2007                      $      39,149     $        5,000     $  3,870,786     $         -   $     3,914,935
                                               =============     ==============    ==============   =============== ==============
</TABLE>


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


                 BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED PARTNERSHIP




                            STATEMENTS OF CASH FLOWS
                   For the Years Ended March 31, 2007 and 2006


<TABLE>
<CAPTION>

                                                                                 2007                        2006
                                                                           ----------------               ----------
<S>                                                                       <C>                      <C>
Cash flows from operating activities:
   Net Loss                                                                $     (1,112,655)       $     (2,276,364)
   Adjustments to reconcile net loss to net
     cash used for operating activities:
     Equity in losses of Local Limited Partnerships                                 847,827               1,308,448
     Gain on sale of investments in Local Limited Partnerships                   (1,220,353)                      -
     Provision for valuation allowance on advances to Local
       Limited Partnerships, net of recovery                                        977,144                 200,275
     Provision for valuation allowance on investments in Local
       Limited Partnerships                                                               -                 146,158
     Amortization                                                                    16,799                  21,558
     Accretion                                                                            -                  (8,392)
     Other non-cash item                                                             (2,378)                    (23)
     Increase (decrease) in cash arising from changes
       in operating assets and liabilities:
       Due from affiliates                                                          (58,920)                      -
       Accounts receivable                                                         (147,901)                      -
       Other assets                                                                   1,384                    (231)
       Due to affiliates                                                           (115,823)                127,205
       Accrued expenses                                                             (11,329)                 32,375
       Other liabilities                                                             40,957                       -
                                                                           ----------------        ----------------
Net cash used for operating activities                                             (785,248)               (448,991)
                                                                           ----------------        ----------------

Cash flows from investing activities:
   Purchases of investment securities                                                     -                (841,997)
   Proceeds from maturities of investments securities                               303,168                 551,585
   Advances to Local Limited Partnerships                                        (1,228,154)               (200,275)
   Reimbursement of advances to Local Limited Partnerships                          251,010                       -
   Cash distributions received from Local
     Limited Partnerships                                                           241,593                 451,321
   Proceeds from sale of investments in Local Limited Partnerships                1,228,154                       -
                                                                           ----------------        ----------------
Net cash provided by (used for) investing activities                                795,771                 (39,366)
                                                                           ----------------        ----------------

Net increase (decrease) in cash and cash equivalents                                 10,523                (488,357)

Cash and cash equivalents, beginning                                                546,806               1,035,163
                                                                           ----------------        ----------------

Cash and cash equivalents, ending                                          $        557,329        $        546,806
                                                                           ================        ================

Non cash investing activity:
   Reimbursement of advances to Local Limited Partnerships                 $        147,901        $              -
                                                                           ================        ================
</TABLE>



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

                 BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED PARTNERSHIP

                            NOTES TO THE FINANCIAL STATEMENTS


1.   Organization

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

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

Under the terms of the Partnership Agreement, the Fund originally designated 5%
of the Gross Proceeds from the sale of Units as a reserve for working capital of
the Fund and contingencies related to ownership of Local Limited Partnership
interests. The Managing General Partner may increase or decrease such amounts
from time to time as it deems appropriate. At March 31, 2007, the Managing
General Partner has designated approximately $498,000 as such Reserves.

Generally, profits, losses, tax credits and cash flow from operations are
allocated 99% to the Limited Partners and 1% to the General Partner. Net
proceeds from a sale or refinancing will be allocated 95% to the Limited
Partners and 5% to the General Partner after certain priority payments. The
General Partners may have an obligation to fund deficits in their capital
accounts, subject to limits set forth in the Partnership Agreement. However, to
the extent that the General Partners' capital accounts are in a deficit
position, certain items of net income may be allocated to the General Partners
in accordance with the Partnership Agreement.

2.   Significant Accounting Policies

Cash Equivalents

Cash equivalents represent short-term, highly liquid instruments with original
maturities of 90 days or less.

Concentration of Credit Risk

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

Investment Securities

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




<PAGE>

              BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED PARTNERSHIP

                        NOTES TO THE FINANCIAL STATEMENTS (Continued)


2.       Significant Accounting Policies (continued)

Investments in Local Limited Partnerships

The Local Limited Partnerships in which the Fund invests are Variable Interest
Entities ("VIE"s). The Fund is involved with the VIEs as a non-controlling
limited partner equity holder. Because the Fund is not the primary beneficiary
of these VIEs, it accounts for its investments in the Local Limited Partnerships
using the equity method of accounting. As a result of its involvement with the
VIEs, the Fund's exposure to economic and financial statement losses is limited
to its investments in the VIEs ($3,394,658 at March 31, 2007). The Fund may be
subject to additional losses to the extent of any financial support that the
Fund voluntarily provides in the future. Under the equity method, the investment
is carried at cost, adjusted for the Fund's share of net income or loss and for
cash distributions from the Local Limited Partnerships; equity in income or loss
of the Local Limited Partnerships is included currently in the Fund's
operations. Under the equity method, a Local Limited Partnership investment will
not be carried below zero. To the extent that equity in losses are incurred when
the Fund's carrying value of the respective Local Limited Partnership has been
reduced to a zero balance, the losses will be suspended and offset against
future income. Income from Local Limited Partnerships, where cumulative equity
in losses plus cumulative distributions have exceeded the total investment in
Local Limited Partnerships, will not be recorded until all of the related
unrecorded losses have been offset. To the extent that a Local Limited
Partnership with a carrying value of zero distributes cash to the Fund that
distribution is recorded as income on the books of the Fund and is included in
"other revenue" in the accompanying financial statements.

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

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

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

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

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

The Managing General Partner 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, 2006 and 2005 and for the years then
ended.

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


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

                    NOTES TO THE FINANCIAL STATEMENTS (Continued)


2.       Significant Accounting Policies (continued)

Use of Estimates

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

Fair Value of Financial Instruments

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

Income Taxes

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






Effect of New Accounting Principle

In June 2006, the FASB issued Interpretation No. 48 "Accounting for Uncertainty
in Income Taxes" ("FIN 48"), which is effective for financial statements for
fiscal years beginning after December 15, 2006. FIN 48 provides guidance to all
enterprises, including pass-through entities, for how uncertain tax provisions
should be recognized, measured, presented and disclosed in the financial
statements. The General Partner will adopt FIN 48 as of April 1, 2007. The
General Partner is currently assessing the impact of FIN 48 but believes that
FIN 48 will not have a material impact on the financial position or operating
results of the Company.

3.   Investments in Local Limited Partnerships

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


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

                  NOTES TO THE FINANCIAL STATEMENTS (Continued)

<TABLE>
<CAPTION>

3. Investments in Local Limited Partnerships (continued)

The following is a summary of investments in Local Limited Partnerships at March
31, 2007:

<S>                                                                                                <C>
Capital contributions and advances paid to Local Limited Partnerships and
purchase price paid to withdrawing partners of Local Limited Partnerships                            $    38,736,227

Cumulative equity in losses of Local Limited Partnerships (excluding cumulative
   unrecognized losses of $12,346,866)                                                                  (28,541,626)

Cumulative cash distributions received from Local Limited Partnerships                                   (2,370,478)
                                                                                                     ---------------

Investments in Local Limited Partnerships before adjustments                                              7,824,123

Excess investment costs over the underlying assets acquired:
                                                                                                          1,201,008
   Acquisition fees and expenses

   Cumulative amortization of acquisition fees and expenses                                                (354,653)
                                                                                                    ---------------

Investments in Local Limited Partnerships before valuation allowance                                      8,670,478

Valuation allowance on investments in Local Limited Partnerships                                         (5,483,101)
                                                                                                    ---------------

Investments in Local Limited Partnerships                                                           $     3,187,377
                                                                                                    ===============
</TABLE>

For the year ended March 31, 2007, the Fund was reimbursed $1,010 from a Local
Limited Partnership relating to advances made in prior years. On June 12, 2007
the Fund received $147,901 as reimbursement of prior year advances, all of which
is receivable at March 31, 2007. The Fund has also recorded a valuation
allowance for its investments in certain Local Limited Partnerships in order to
appropriately reflect the estimated net realizable value of these investments.

The Fund's interest in one of its investments in Local Limited Partnerships was
sold during the year ended March 31, 2007, resulting in a gain of $1,220,353.
However, all but $250,000 of the proceeds attributable to this gain were
utilized by the Local General Partner to offset operating deficits and fund debt
service payments at another one of the Local Limited Partnerships managed by
this same Local General Partner. Consequently, the Fund recorded an advance to
this other Local Limited Partnership with an offsetting provision of $1,228,154
for the entire amount of proceeds that would have been realized from the gain.
During the year ended March 31, 2007, the Fund was able to recover $250,000 of
this amount.

Summarized combined financial information of the Local Limited Partnerships in
which the Fund has invested as of December 31, 2006 and 2005 (due to the Fund's
policy of reporting the financial information of its Local Limited Partnership
interests on a 90 day lag basis) is as follows:



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

                    NOTES TO THE FINANCIAL STATEMENTS (Continued)

<TABLE>
<CAPTION>

3. Investments in Local Limited Partnerships (continued)

Summarized Balance Sheets - as of December 31,

                                                                                   2006             2005
                                                                             ----------------    ----------

<S>                                                                          <C>                <C>
Assets:
   Investment property, net                                                  $     58,610,304    $     65,776,252
   Other assets                                                                     5,555,024           4,799,547
                                                                             ----------------    ----------------
     Total Assets                                                            $     64,165,328    $     70,575,799
                                                                             ================    ================

Liabilities and Partners' Equity (Deficiency):
   Mortgage notes payable                                                    $     53,998,792    $     58,094,370
   Other liabilities                                                               12,960,102          11,305,121
                                                                             ----------------    ----------------
     Total Liabilities                                                             66,958,894          69,399,491
                                                                             ----------------    ----------------

Fund's deficiency                                                                  (6,730,549)         (3,906,911)
Other partners' equity                                                              3,936,983           5,083,219
                                                                             ----------------    ----------------
   Total Partners' Equity (Deficiency):                                            (2,793,566)          1,176,308
                                                                             ----------------    ----------------
   Total Liabilities and Partners' Equity                                    $     64,165,328    $     70,575,799
                                                                             ================    ================

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

                                                                                   2006                2005
                                                                             ----------------    ----------

Rental and other income                                                      $     13,745,552    $     13,903,188
                                                                             ----------------    ----------------

Expenses:
   Operating                                                                        9,404,589           9,511,395
   Interest                                                                         3,635,926           3,997,778
   Depreciation and amortization                                                    3,590,470           3,887,899
                                                                             ----------------    ----------------
     Total Expenses                                                                16,630,985          17,397,072
                                                                             ----------------    ----------------

Net Loss                                                                     $     (2,885,433)   $     (3,493,884)
                                                                             ================    ================

Fund's share of net loss                                                     $     (2,561,890)   $     (3,178,495)
                                                                             ================    ================
Other partners' share of net loss                                            $       (323,543)   $       (315,389)
                                                                             ================    ================
</TABLE>


For the years ended March 31, 2007 and 2006, the Fund has not recognized
$1,714,063 and $1,870,047, respectively, of equity in losses relating to certain
Local Limited Partnerships in which cumulative equity in losses and
distributions exceeded its total investment in these Local Limited Partnerships.

The Fund's deficiency as reflected by the Local Limited Partnerships of
($6,730,549) differs from the Fund's investments in Local Limited Partnerships
before adjustments of $7,824,123 primarily due to: (i) cumulative unrecognized
losses as described above; (ii) advances to Local Limited Partnerships which the
Fund has included in investments in Local Limited Partnerships; (iii)
syndication costs charged to equity by the Local Limited Partnerships which are
not reflected in the Fund's investments in Local Limited Partnerships; (iv) cash
distributions made by Local Limited Partnerships during the quarter ended March
31, 2007 not reflected in the December 31, 2006 balance sheets of the Local
Limited Partnerships; and (v) differences in the accounting treatment of
miscellaneous items.

The Fund has set aside in an escrow account future capital contributions related
to its investment in one Local Limited Partnership. Interest earned on this
deposit is payable to the Local General Partner. As of March 31, 2007, $117,284
of interest due to the Local General Partner is included in due to affiliates.



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

                      NOTES TO THE FINANCIAL STATEMENTS (Continued)


4.   Transactions with Affiliates

An affiliate of the Managing General Partner receives the base amount of 0.50%
(annually adjusted by the CPI factor) of Gross Proceeds as the annual Asset
Management Fee for administering the affairs of the Fund. Asset Management Fees
of $358,558 and $341,824 have been expensed in the years ended March 31, 2007
and 2006, respectively. Included in due to affiliates at March 31, 2007 is
$90,570 of Asset Management Fees. During the years ended March 31, 2007 and
2006, $353,444 and $341,824 respectively, were paid out of available cash flow
for Asset Management Fees.

An affiliate of the Managing General Partner is reimbursed for the cost of the
Fund's salaries and benefits expenses. Included in general and administrative
expenses for the years ended March 31, 2007 and 2006 is $121,523 and $122,687,
respectively that the Fund has incurred for these expenses. During the year
ended March 31, 2007 and 2006, salaries and benefits of $121,523 and $122,687,
respectively, were paid to the affiliate of the Managing General Partner. As of
March 31, 2007, $0 of these reimbursements remains unpaid.

As of March 31, 2007, the Fund is owed $58,920 from affiliates of the General
Partner for amounts received by the affiliates on behalf of the Fund.

In December 2006, Fund cash was invested in below-market interest bearing
accounts as part of a banking arrangement which resulted in financial benefits
to affiliates of MMA Financial. MMA Financial subsequently determined that this
arrangement was inconsistent with the terms of the Partnership Agreement and
terminated the arrangement. MMA intends to pay the interest lost by the Fund
(approximately $17,000) to the Fund in July 2007.



5.   Commitments

EITF 94-1, "Accounting for Tax Benefits Resulting from Investments in Affordable
Housing Projects" ("EITF 94-1") requires recognition of a liability for delayed
equity capital contributions to Local Limited Partnerships that are contingent
upon a future event when that contingent event becomes probable. As of March 31,
2007, the Fund has concluded that delayed equity capital contributions in the
amount of $207,281 are not probable and therefore, has not recognized this
amount as a liability. Of this amount, the Fund has set aside $148,281 in escrow
for future capital contributions to one Local Limited Partnership.

6.   Federal Income Taxes

The following schedule reconciles the reported financial statement net loss for
the fiscal years ended March 31, 2007 and 2006 to the net loss reported on the
Form 1065, U.S. Partnership Return of Income for the years ended December 31,
2006 and 2005:
<TABLE>
<CAPTION>

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

<S>                                                                          <C>                   <C>
Net loss per financial statements                                              $   (1,112,655)      $    (2,276,364)

Equity in losses of Local Limited Partnerships for financial reporting
   purposes in excess of equity in losses for tax purposes                          1,055,507              200,110

Equity in losses of Local Limited Partnerships not recognized
   for financial reporting purposes                                                (1,714,063)          (1,870,047)

Adjustment to reflect March 31 fiscal year end to
   December 31 taxable year end                                                       (20,302)              19,824

Amortization for tax purposes in excess of amortization
   for financial reporting purposes                                                   (26,874)             (23,982)

Provision for valuation allowance on advances to Local Limited
   Partnerships, net of recovery, not deductible for tax purposes                     829,243              200,275

Provision for valuation allowance on investments in Local Limited
   Partnerships not deductible for tax purposes                                             -              146,158

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

Net Loss per tax return                                                        $     (981,856)      $   (3,604,026)
                                                                               ==============       ==============

</TABLE>

<PAGE>

                BOSTON FINANCIAL TAX CREDIT FUND VII, A LIMITED PARTNERSHIP
                        NOTES TO THE FINANCIAL STATEMENTS (Continued)


6. Federal Income Taxes (continued)

The differences in the assets and liabilities of the Fund for financial
reporting purposes and tax purposes as of March 31, 2007 and December 31, 2006,
respectively are as follows:
<TABLE>
<CAPTION>

                                                                Financial
                                                                Reporting            Tax
                                                                Purposes          Purposes           Differences

<S>                                                        <C>                <C>                 <C>
Investments in Local Limited Partnerships                   $    3,187,377     $    1,506,661      $    1,680,716
                                                            ==============     ==============      ==============
Other assets                                                $    1,026,215     $    7,398,443      $   (6,372,228)
                                                            ==============     ==============      ==============
Liabilities                                                 $      298,657     $      363,144      $      (64,487)
                                                            ==============     ==============      ==============
</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
$5,964,000 more than for financial reporting purposes, including approximately
$12,347,000 of losses the Fund has not recognized relating to Local Limited
Partnerships whose cumulative equity in losses exceed its total investments;
(ii) the cumulative amortization of acquisition fees for tax purposes exceeds
financial reporting purposes by approximately $178,000; (iii) approximately
$75,000 of cash distributions received from Local Limited Partnerships were
received during the three months ended March 31, 2007; (iv) the Fund has
recorded an impairment allowance on its investments in Local Limited
Partnerships for approximately $5,631,000 that is not recorded for tax purposes;
and (v) organizational and offering costs of approximately $6,305,000 that have
been capitalized for tax purposes are charged to Limited Partners' equity for
financial reporting purposes.

7.   Significant Subsidiaries

The following Local Limited Partnerships invested in by the Fund represents more
than 20% of the Fund's total assets or equity as of March 31, 2007 or 2006 or
net losses for the years ended either March 31, 2007 or 2006. The following
financial information represents the performance of these Local Limited
Partnerships for the years ended December 31, 2006 and 2005:

Citrus Glen                                 2006                     2005
-----------                             ---------------           --------

Total Assets                                   N/A           $   6,198,501
Total Liabilities                              N/A           $   5,928,680
Revenue                                        N/A           $   1,495,538
Net Loss                                       N/A           $    (188,362)

Fairhaven Manor

Total Assets                         $     1,630,971           $   1,663,360
Total Liabilities                    $       840,383           $     863,598
Revenue                              $       341,424           $     299,875
Net Loss                             $        (9,173)          $     (10,278)


8.   Subsequent Event

     On May 31, 2007 the Fund sold its interests in St. Andrew's Pointe
     resulting in net proceeds to the Fund of $147,901.


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