BLACKROCK MUNIHOLDINGS CALIFORNIA QUALITY FUND, INC.

Regulatory Filings • Dec 22, 2011

N-Q 1 i00542_muc-nq.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-08573

Name of Fund: BlackRock MuniHoldings California Quality Fund, Inc. (MUC)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock MuniHoldings California Quality Fund, Inc., 55 East 52 nd Street, New York, NY 10055

Registrant’s telephone number, including area code: (800) 882-0052, Option 4

Date of fiscal year end: 07/31/2012

Date of reporting period: 10/31/2011

Item 1 – Schedule of Investments

insert

Schedule of Investments October 31, 2011 (Unaudited)
(Percentages shown are based on Net Assets)

| Municipal
Bonds | Par (000) | Value |
| --- | --- | --- |
| California — 110.5% | | |
| Corporate — 0.4% | | |
| City of Chula Vista California, Refunding RB, San Diego Gas & Electric, Series A, 5.88%, 2/15/34 | $ 2,435 | $ 2,687,461 |
| County/City/Special District/School
District — 32.3% | | |
| Alameda County Joint Powers Authority, Refunding RB, Lease (AGM), 5.00%, 12/01/34 | 13,180 | 13,690,198 |
| Bonita Unified School District California, GO, Election of 2004, Series B (NPFGC), 5.00%, 8/01/29 | 3,950 | 4,101,798 |
| Centinela Valley Union High School District, GO, Election of 2010, Series A, 5.75%, 8/01/41 | 9,000 | 9,812,520 |
| Central Unified School District, GO, Election of 2008, Series A (AGC), 5.63%, 8/01/33 | 2,600 | 2,823,054 |
| City of Garden Grove California, COP, Series A, Financing Project (AMBAC), 5.50%, 3/01/26 | 4,040 | 4,127,022 |
| City of Redding California, COP, Refunding, Series A (AGM), 5.00%, 6/01/30 | 5,735 | 5,996,286 |
| Colton Joint Unified School District, GO, Series A (NPFGC), 5.38%, 8/01/26 | 2,500 | 2,573,325 |
| County of Kern California, COP, Capital Improvements Projects, Series A (AGC), 6.00%, 8/01/35 | 3,500 | 3,892,315 |
| Covina-Valley Unified School District California, GO, Refunding, Series A (AGM), 5.50%, 8/01/26 | 2,395 | 2,481,843 |
| Culver City Redevelopment Finance Authority California, Tax Allocation Bonds, Refunding, Series A (AGM), 5.60%, 11/01/25 | 3,750 | 3,761,325 |
| Grossmont Healthcare District, GO, Election of 2006, Series B, 6.13%, 7/15/40 | 2,000 | 2,255,660 |
| Los Angeles Community College District California, GO, Election of 2001, Series E-1, 5.00%, 8/01/33 | 11,770 | 12,409,699 |
| Municipal Bonds | Par (000) | Value |
| California (continued) | | |
| County/City/Special District/School District (continued) | | |
| Los Angeles Community Redevelopment Agency California, RB, Bunker Hill Project, Series A (AGM), 5.00%, 12/01/27 | $ 10,000 | $ 10,339,800 |
| Los Angeles County Metropolitan Transportation Authority, Refunding RB, Proposition A, First Tier, Senior, Series A (AMBAC), 5.00%, 7/01/35 | 9,000 | 9,278,820 |
| Orange County Sanitation District, COP, Series A, 5.00%, 2/01/35 | 2,500 | 2,649,375 |
| Oxnard Union High School District, GO, Refunding, Election of 2004, Series A (AGM), 5.00%, 8/01/35 | 10,000 | 10,431,200 |
| Port of Oakland, Refunding RB, Series M (FGIC), 5.38%, 11/01/27 | 18,000 | 18,073,800 |
| Redlands Unified School District California, GO, Election of 2008 (AGM), 5.25%, 7/01/33 | 5,000 | 5,287,350 |
| Redwoods Community College District, GO, Election of 2004 (NPFGC), 5.00%, 8/01/31 | 4,630 | 4,776,910 |
| San Bernardino Community College District, GO, Election of 2002, Series A, 6.25%, 8/01/33 | 310 | 355,220 |
| San Diego Regional Building Authority, RB, County Operations Center & Annex, Series A, 5.50%, 2/01/29 | 900 | 970,668 |
| San Jose Financing Authority, RB, Convention Center Expansion & Renovation Project, 5.75%, 5/01/42 | 4,500 | 4,840,875 |
| San Jose Financing Authority, RB, Convention Center Expansion & Renovation Project, 5.75%, 5/01/36 | 2,560 | 2,668,954 |
| Santa Clara Redevelopment Agency California, Tax Allocation Bonds, Bayshore North Project, Series A (AMBAC), 5.50%, 6/01/23 | 10,000 | 10,009,000 |

Portfolio Abbreviations

To simplify the listings of portfolio holdings in the Schedule of Investments, the names and descriptions of many of the securities have been abbreviated according to the following list:

| AGC | Assured
Guaranty Corp. |
| --- | --- |
| AGM | Assured
Guaranty Municipal Corp. |
| AMBAC | American
Municipal Bond Assurance Corp. |
| AMT | Alternative
Minimum Tax (subject to) |
| BHAC | Berkshire
Hathaway Assurance Corp. |
| COP | Certificates
of Participation |
| FGIC | Financial
Guaranty Insurance Co. |
| GO | General
Obligation Bonds |
| NPFGC | National
Public Finance Guarantee Corp. |
| RB | Revenue
Bonds |

BLACKROCK MUNIHOLDINGS CALIFORNIA QUALITY FUND, INC. OCTOBER 31, 2011 1

Schedule of Investments (continued)
(Percentages shown are based on Net Assets)

| Municipal
Bonds | Par (000) | Value |
| --- | --- | --- |
| California (continued) | | |
| County/City/Special District/School District (concluded) | | |
| Snowline Joint Unified School District California, COP, Refunding, Refining Project (AGC), 5.75%, 9/01/38 | $ 5,635 | $ 6,130,204 |
| Vista Unified School District California, GO, Series A (AGM), 5.25%, 8/01/25 | 10,000 | 10,231,100 |
| Walnut Valley Unified School District California, GO, Election of 2007, Measure S, Series A (AGM), 5.00%, 2/01/33 | 2,000 | 2,078,760 |
| West Contra Costa Unified School District California, GO (AGM): | | |
| 5.25%, 8/01/23 | 4,500 | 4,974,300 |
| Election of 2002, Series B, 5.00%, 8/01/32 | 6,690 | 6,723,249 |
| Election of 2005, Series A, 5.00%, 8/01/35 | 12,000 | 12,249,720 |
| Westminster Redevelopment Agency California, Tax Allocation Bonds, Subordinate, Commercial Redevelopment Project No. 1 (AGC), 6.25%, 11/01/39 | 4,300 | 4,946,333 |
| | | 194,940,683 |
| Education — 8.7% | | |
| Anaheim City School District California, GO, Election of 2010 (AGM), 6.25%, 8/01/40 | 3,750 | 4,291,725 |
| California Educational Facilities Authority, RB, University of Southern California, Series A, 5.25%, 10/01/38 | 8,000 | 8,643,920 |
| Gavilan Joint Community College District, GO, Election of 2004, Series D: | | |
| 5.50%, 8/01/31 | 2,170 | 2,430,530 |
| 5.75%, 8/01/35 | 8,400 | 9,460,920 |
| Riverside Community College District, GO, Election of 2004, Series C (AGM), 5.00%, 8/01/32 | 8,750 | 9,081,100 |
| San Diego Community College District, GO, Election of 2006 (AGM), 5.00%, 8/01/30 | 9,555 | 10,111,292 |
| University of California, RB, Series L, 5.00%, 5/15/36 | 2,995 | 3,095,812 |
| University of California, Refunding RB, General, Series A (AMBAC), 5.00%, 5/15/27 | 5,000 | 5,194,800 |
| | | 52,310,099 |
| Health — 9.9% | | |
| ABAG Finance Authority for Nonprofit Corps, Sharp Healthcare, Refunding RB: | | |
| 6.25%, 8/01/39 | 5,000 | 5,357,250 |
| Series A, 6.00%, 8/01/30 | 2,250 | 2,438,010 |
| Municipal Bonds | Par (000) | Value |
| California (continued) | | |
| Health (concluded) | | |
| California Health Facilities Financing Authority, RB: | | |
| Kaiser Permanente, Series A 5.25%, 4/01/39 | $ 6,500 | $ 6,509,815 |
| Providence Health Services, Series B, 5.50%, 10/01/39 | 3,970 | 4,164,411 |
| California Health Facilities Financing Authority, Refunding RB: | | |
| Catholic Healthcare West, Series A, 6.00%, 7/01/34 | 3,700 | 3,981,718 |
| Sutter Health, Series A, 5.25%, 11/15/46 | 3,500 | 3,493,210 |
| Sutter Health, Series B, 6.00%, 8/15/42 | 9,655 | 10,527,619 |
| California Statewide Communities Development Authority, Kaiser Permanente, Series B, 5.25%, 3/01/45 | 3,500 | 3,506,440 |
| California Statewide Communities Development Authority, RB: | | |
| Health Facility Memorial Health Services, Series A, 6.00%, 10/01/23 | 4,915 | 5,126,935 |
| Kaiser Permanente, Series B, 5.00%, 3/01/41 | 8,710 | 8,423,267 |
| Trinity Health, 5.00%, 12/01/41 | 4,000 | 3,975,200 |
| City of Newport Beach California, RB, Hoag Memorial Hospital Presbyterian, 6.00%, 12/01/40 | 1,820 | 2,039,255 |
| | | 59,543,130 |
| State — 5.4% | | |
| California Municipal Finance Authority, RB, University of San Diego, Series B, 5.00%, 10/01/41 | 6,560 | 6,641,607 |
| California
State Public Works Board, RB, California State Prisons, Series C, 5.75%, 10/01/31 | 1,205 | 1,273,962 |
| California State Public Works Board, RB, Department of Education, Riverside Campus Project, Series B, 6.50%, 4/01/34 | 3,670 | 4,045,661 |
| State of California, GO: | | |
| 6.00%, 3/01/33 | 5,000 | 5,627,000 |
| 6.00%, 4/01/38 | 4,210 | 4,660,217 |
| University of California, RB, Limited Project, Series D (NPFGC), 5.00%, 5/15/41 | 10,000 | 10,311,700 |
| | | 32,560,147 |
| Transportation — 15.4% | | |
| City of Fresno California, RB, Series B, AMT (AGM), 5.50%, 7/01/20 | 4,455 | 4,559,024 |
| City of San Jose California, RB: Series A1, AMT, 5.25%, 3/01/23 | 2,985 | 3,128,399 |

BLACKROCK MUNIHOLDINGS CALIFORNIA QUALITY FUND, INC. OCTOBER 31, 2011 2

Schedule of Investments (continued)
(Percentages shown are based on Net Assets)

| Municipal
Bonds | Par (000) | Value |
| --- | --- | --- |
| California (continued) | | |
| Transportation (concluded) | | |
| Series A1, AMT, 6.25%, 3/01/34 | $ 1,400 | $ 1,512,868 |
| Series D (NPFGC), 5.00%, 3/01/28 | 5,000 | 5,020,400 |
| County of Orange California, RB, Series B, 5.75%, 7/01/34 | 6,345 | 6,885,911 |
| County of Sacramento California, RB: | | |
| Senior Series A (AGC), 5.50% | 7,270 | 7,603,330 |
| Senior Series B AMT (AGM), 5.75%, 7/01/28 | 13,170 | 14,092,559 |
| Senior Series B AMT (AGM), 5.25%, 7/01/33 | 19,525 | 19,897,146 |
| Senior Series B, 5.75%, 7/01/39 | 2,650 | 2,805,926 |
| Los Angeles Department of Airports, RB, Los Angeles Intl Airport, Senior Series D, 5.25%, 5/15/29 | 2,590 | 2,810,487 |
| Los Angeles Harbor Department, RB, Series B, 5.25%, 8/01/34 | 5,530 | 5,982,575 |
| San Francisco City & County Airports Commission, RB, Series E, 6.00%, 5/01/39 | 9,650 | 10,731,379 |
| San Francisco City & County Airports Commission, Refunding RB, Second Series 34E, AMT (AGM), 5.75%, 5/01/24 | 5,000 | 5,479,700 |
| San Joaquin County Transportation Authority, RB, Limited Tax, Measure K, Series A, 6.00%, 3/01/36 | 2,400 | 2,740,536 |
| | | 93,250,240 |
| Utilities — 38.4% | | |
| Anaheim Public Financing Authority, RB, Electric System Distribution Facilities, Series A, 5.38%, 10/01/36 | 2,200 | 2,385,020 |
| City of Escondido California, COP, Refunding, Series A (NPFGC), 5.75%, 9/01/24 | 465 | 466,693 |
| City of Los Angeles California, Refunding RB, Sub, Series A: | | |
| 5.00%, 6/01/28 | 2,000 | 2,163,660 |
| 5.00%, 6/01/32 | 3,000 | 3,209,280 |
| Cucamonga Valley Water District, Refunding RB, 5.25%, 9/01/31 | 3,675 | 3,986,089 |
| Dublin-San Ramon Services District, Refunding RB, 6.00%, 8/01/41 | 4,000 | 4,417,720 |
| East Bay Municipal Utility District, Refunding RB, Sub-Series A (AMBAC), 5.00%, 6/01/33 | 6,545 | 6,896,139 |
| Eastern Municipal Water District, COP, Series H, 5.00%, 7/01/33 | 2,500 | 2,597,425 |
| Imperial Irrigation District, Refunding RB, System, 5.13%, 11/01/38 | 9,500 | 9,801,340 |
| Municipal Bonds | Par (000) | Value |
| California (concluded) | | |
| Utilities (concluded) | | |
| Los Angeles County Sanitation Districts Financing Authority, Refunding RB, Capital Project 14 (BHAC), 5.00%, 10/01/34 | $ 7,915 | $ 8,152,767 |
| Los Angeles Department of Water & Power, RB: | | |
| Series A, 5.38%, 7/01/38 | 10,500 | 11,425,365 |
| Series A, 5.25%, 7/01/39 | 16,000 | 17,431,520 |
| 5.00%, 7/01/41 | 5,000 | 5,254,800 |
| Metropolitan Water District of Southern California, RB, Series B-1 (FGIC), 5.00%, 10/01/33 | 8,605 | 8,850,070 |
| Metropolitan Water District of Southern California, RB, Series C, 5.00%, 10/01/27 | 4,085 | 4,888,765 |
| Oxnard Financing Authority, RB, (NPFGC): | | |
| Project, 5.00%, 6/01/31 | 10,000 | 10,254,600 |
| Redwood Trunk Sewer & Headworks, Series A, 5.25%, 6/01/34 | 13,000 | 13,454,220 |
| Sacramento City Financing Authority California, Refunding RB (NPFGC), 5.00%, 12/01/29 | 8,775 | 8,881,177 |
| Sacramento Municipal Utility District, RB (NPFGC): | | |
| Cosumnes Project, 5.13%, 7/01/29 | 36,760 | 37,068,416 |
| Series R, 5.00%, 8/15/33 | 22,150 | 22,359,539 |
| San Diego Public Facilities Financing Authority, Refunding RB, Senior, Series A: | | |
| 5.25%, 5/15/39 | 3,165 | 3,350,532 |
| 5.25%, 5/15/34 | 1,000 | 1,064,570 |
| San Francisco City & County Public Utilities Commission, RB: | | |
| Local Water Main Sub, Series C, 5.00%, 11/01/41 | 5,000 | 5,257,150 |
| Series A (NPFGC), 5.00%, 11/01/32 | 15,000 | 15,119,250 |
| Series B, 5.00%, 11/01/30 | 14,000 | 14,999,880 |
| Southern California Public Power Authority, Milford Wind Corridor Phase II, 5.25%, 7/01/28 | 6,980 | 7,696,986 |
| | | 231,432,973 |
| Total Municipal Bonds – 110.5% | | 666,724,733 |

BLACKROCK MUNIHOLDINGS CALIFORNIA QUALITY FUND, INC. OCTOBER 31, 2011 3

Schedule of Investments (continued)
(Percentages shown are based on Net Assets)

| Municipal
Bonds Transferred to Tender Option Bond (TOB) Trusts (a) | Par (000) | Value |
| --- | --- | --- |
| California — 58.9% | | |
| Corporate — 7.0% | | |
| San Francisco Bay Area Rapid Transit District, Refunding RB, Series A (NPFGC), 5.00%, 7/01/30 | $ 23,100 | $ 24,366,804 |
| University of California, RB, Limited Project, Series B (AGM), 5.00%, 5/15/33 | 17,397 | 17,808,230 |
| | | 42,175,034 |
| County/City/Special District/School District
— 23.5% | | |
| Contra Costa Community College District California, GO, Election of 2002 (NPFGC), 5.00%, 8/01/28 | 7,800 | 8,008,962 |
| Desert Community College District California, GO, Series C (AGM), 5.00%, 8/01/37 | 16,530 | 17,011,023 |
| Foothill-De Anza Community College District, GO, Series C, 5.00%, 8/01/40 | 10,000 | 10,617,600 |
| Los Angeles Community College District California, GO: | | |
| Election of 2001, Series A (NPFGC), 5.00%, 8/01/32 | 6,647 | 6,975,039 |
| Election of 2003, Series E (AGM), 5.00%, 8/01/31 | 11,216 | 11,696,420 |
| Election of 2008, Series A, 6.00%, 8/01/33 | 9,596 | 10,938,542 |
| Ohlone Community College District, GO, Ohlone, Series B (AGM), 5.00%, 8/01/30 | 16,518 | 16,971,376 |
| Poway Unified School District, GO, Election of 2002, Improvement District 02, Series 1-B (AGM), 5.00%, 8/01/30 | 10,000 | 10,331,900 |
| San Bernardino Community College District California, GO, Election of 2002, Series C (AGM), 5.00%, 8/01/31 | 17,770 | 18,275,023 |
| San Diego Community College District California, GO, Election of 2002 (AGM), 5.00%, 5/01/30 | 12,549 | 13,314,383 |
| San Francisco Bay Area Transit Financing Authority, Refunding RB, Series A (NPFGC), 5.00%, 7/01/34 | 2,499 | 2,588,846 |
| San Jose Financing Authority, Refunding RB, Civic Center Project, Series B (AMBAC), 5.00%, 6/01/32 | 14,800 | 14,832,264 |
| | | 141,561,378 |
| Education — 9.2% | | |
| Chaffey Community College District, GO, Election of 2002, Series B (NPFGC), 5.00%, 6/01/30 | 9,905 | 10,179,248 |
| Los Rios Community College District, GO, Election of 2008, Series A, 5.00%, 8/01/35 | 11,000 | 11,490,600 |
| Mount Diablo California Uniform School District, GO, 5.00%, 6/01/31 | 4,000 | 4,078,600 |
| Municipal
Bonds Transferred to Tender Option Bond (TOB) Trusts (a) | Par (000) | Value |
| California (continued) | | |
| Education (concluded) | | |
| Riverside Community College District, GO, Election of 2004, Series C (NPFGC), 5.00%, 8/01/32 | $ 8,910 | $ 9,219,533 |
| University of California, RB: | | |
| Limited Project, Series D (AGM), 5.00%, 5/15/41 | 8,000 | 8,249,360 |
| Series O, 5.75%, 5/15/34 | 11,190 | 12,522,953 |
| | | 55,740,294 |
| Transportation — 1.7% | | |
| San Mateo County Transportation Authority, Refunding RB, Series A (NPFGC), 5.00%, 6/01/32 | 10,000 | 10,256,500 |
| Utilities — 17.5% | | |
| City of Napa California, RB, (AMBAC), 5.00%, 5/01/35 | 9,100 | 9,458,722 |
| East Bay Municipal Utility District, RB, Sub-Series A (NPFGC), 5.00%, 6/01/35 | 12,070 | 12,959,438 |
| East Bay Municipal Utility District, Refunding RB, Sub-Series A (AMBAC), 5.00%, 6/01/37 | 14,510 | 15,206,915 |
| Los Angeles Department of Water & Power System, RB, (AGM): | | |
| Sub-Series A-1, 5.00%, 7/01/31 | 4,993 | 5,128,417 |
| Sub-Series A-2, 5.00%, 7/01/35 | 7,500 | 7,738,650 |
| Metropolitan Water District of Southern California, RB, Series A (AGM), 5.00%, 7/01/35 | 12,870 | 13,286,473 |
| Rancho Water District Financing Authority, Refunding RB, Series A (AGM), 5.00%, 8/01/34 | 5,008 | 5,244,368 |
| Sacramento Regional County Sanitation District, RB, Sacramento Regional County Sanitation (NPFGC), 5.00%, 12/01/36 | 4,500 | 4,669,425 |
| San Diego County Water Authority, COP, Series A (AGM), 5.00%, 5/01/31 | 4,000 | 4,118,920 |
| San Diego County Water Authority, COP, Refunding: | | |
| Series 2002-A (NPFGC), 5.00%, 5/01/32 | 10,000 | 10,128,200 |

BLACKROCK MUNIHOLDINGS CALIFORNIA QUALITY FUND, INC. OCTOBER 31, 2011 4

Schedule of Investments (concluded)
(Percentages shown are based on Net Assets)

| Municipal
Bonds Transferred to Tender Option Bond (TOB) Trusts (a) | Par (000) | Value | |
| --- | --- | --- | --- |
| California (concluded) | | | |
| Utilities (concluded) | | | |
| San Diego County Water Authority, COP, Refunding (concluded): | | | |
| Series 2008-A (AGM), 5.00%, 5/01/33 | $ 16,740 | $ 17,553,062 | |
| | | 105,492,590 | |
| Total Municipal Bonds Transferred to Tender Option Bond (TOB) Trusts – 58.9% | | 355,225,796 | |
| Total Long-Term Investments (Cost – $994,211,351) – 169.4% | | 1,021,950,529 | |
| Short-Term
Securities | Shares | | |
| BIF California Municipal Money Fund, 0.10% (b)(c) | 4,515,253 | 4,515,253 | |
| Total Short-Term Securities (Cost – $4,515,253) – 0.8% | | 4,515,253 | |
| Total Investments (Cost - $998,726,604*) – 170.2% | | 1,026,465,782 | |
| Other Assets Less Liabilities – 2.0% | | 12,215,047 | |
| Liability for TOB Trust Certificates,
Including Interest Expense and Fees Payable – (30.1)% | | (181,443,156 | ) |
| AMPS, at Redemption Value – (42.1)% | | (254,000,000 | ) |
| Net Assets Applicable to Common Shares– 100.0% | | $ 603,237,673 | |

• The cost and unrealized appreciation (depreciation) of investments as of October 31, 2011, as computed for federal income tax purposes, were as follows:

| Aggregate
cost | $ | |
| --- | --- | --- |
| Gross
unrealized appreciation | $ 29,629,697 | |
| Gross
unrealized depreciation | (1,461,998 | ) |
| Net
unrealized appreciation | $ 28,167,699 | |

| (a) | Securities
represent bonds transferred to a TOB in exchange for which the Fund acquired
residual interest certificates. These securities serve as collateral in a
financing transaction. |
| --- | --- |
| (b) | Investments
in companies considered to be an affiliate of the Fund during the period, for
purposes of Section 2(a)(3) of the Investment Company Act of 1940, as
amended, were as follows: |

Affiliate — BIF California Municipal Money Fund	7,347,551	(2,832,298	)	4,515,253	Income — $ 262

(c) Represents the current yield as of report date.

•
•	Level 1 —
unadjusted price quotations in active markets/exchanges for identical assets
and liabilities
•	Level 2 —
other observable inputs (including, but not limited to: quoted prices for
similar assets or liabilities in markets that are active, quoted prices for
identical or similar assets or liabilities in markets that are not active,
inputs other than quoted prices that are observable for the assets or
liabilities (such as interest rates, yield curves, volatilities, prepayment
speeds, loss severities, credit risks and default rates) or other
market-corroborated inputs)
•	Level 3 —
unobservable inputs based on the best information available in the
circumstances, to the extent observable inputs are not available (including
the Fund’s own assumptions used in determining the fair value of investments)
Changes in
valuation techniques may result in transfers in or out of an assigned level
within the disclosure hierarchy. The categorization of a value determined for
investments is based on the pricing transparency of the investment and does
not necessarily correspond to the Fund’s perceived risk of investing in those
securities. For information about the Fund’s policy regarding valuation of
investments and other significant accounting policies, please refer to the
Fund’s most recent financial statements as contained in its annual report.
The
following table summarizes the inputs used as of October 31, 2011 in determining
the fair valuation of the Fund’s investments:

| Valuation
Inputs | Level 1 | Level 2 | | Total |
| --- | --- | --- | --- | --- |
| Assets: | | | | |
| Investments: | | | | |
| Long-Term Investments 1 | — | $ 1,021,950,529 | — | $ 1,021,950,529 |
| Short-Term
Securities | $ 4,515,253 | — | — | 4,515,253 |
| Total | $ 4,515,253 | $ 1,021,950,529 | — | $ 1,026,465,782 |

1 See above Schedule of Investments for values in each sector.

BLACKROCK MUNIHOLDINGS CALIFORNIA QUALITY FUND, INC. OCTOBER 31, 2011 5

end

Item 2 –	Controls and Procedures
2(a) –	The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the ″1940 Act″)) are effective as of a date within 90 days of the filing of this
report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended.
2(b) –	There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 3 –	Exhibits
	Certifications – Attached hereto
	Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
	BlackRock MuniHoldings California Quality Fund, Inc.
	By:	/s/ John M. Perlowski
		John M. Perlowski
		Chief Executive Officer (principal executive officer) of
		BlackRock MuniHoldings California Quality Fund, Inc.
	Date: December 21, 2011
	Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
	By:	/s/ John M. Perlowski
		John M. Perlowski
		Chief Executive Officer (principal executive officer) of
		BlackRock MuniHoldings California Quality Fund, Inc.
	Date: December 21, 2011
	By:	/s/ Neal J. Andrews
		Neal J. Andrews
		Chief Financial Officer (principal financial officer) of
		BlackRock MuniHoldings California Quality Fund, Inc.
	Date: December 21, 2011