BLACKROCK MUNIHOLDINGS CALIFORNIA QUALITY FUND, INC.

Regulatory Filings • Jun 25, 2012

N-Q 1 i00258_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: 04/30/2012

Item 1 – Schedule of Investments

insert

Schedule of Investments April 30, 2012 (Unaudited)
(Percentages shown are based on Net Assets)

| Municipal
Bonds | Par (000) | Value |
| --- | --- | --- |
| California — 103.0% | | |
| Corporate — 0.4% | | |
| City of Chula Vista California, Refunding RB, San Diego Gas & Electric, Series A, 5.88%, 2/15/34 | $ 2,435 | $ 2,808,285 |
| County/City/Special District/School
District — 26.5% | | |
| Centinela Valley Union High School District, GO, Election of 2010, Series A, 5.75%, 8/01/41 | 9,000 | 10,365,300 |
| Chabot-Las Positas Community College District, GO, CAB, Series C (AMBAC), 6.03%, 8/01/37 (a) | 11,980 | 2,943,007 |
| City of Garden Grove California, COP, Series A, Financing Project (AMBAC), 5.50%, 3/01/26 | 4,040 | 4,095,186 |
| Colton Joint Unified School District, GO, Series A (NPFGC), 5.38%, 8/01/26 | 2,500 | 2,577,050 |
| County of Kern California, COP, Capital Improvements Projects, Series A (AGC), 6.00%, 8/01/35 | 3,500 | 4,033,330 |
| Covina-Valley Unified School District California, GO, Refunding, Series A (AGM), 5.50%, 8/01/12 (b) | 2,395 | 2,450,971 |
| Culver City Redevelopment Finance Authority California, Tax Allocation Bonds, Refunding, Series A (AGM), 5.60%, 11/01/25 | 3,750 | 3,762,675 |
| Desert Community College District, GO, CAB, Election of 2004, Series C (AGM), 5.90%, 8/01/46 (a) | 5,000 | 726,900 |
| Grossmont Healthcare District, GO, Election of 2006, Series B, 6.13%, 7/15/40 | 2,000 | 2,375,780 |
| Grossmont Union High School District, GO, CAB, Election of 2004, 5.46%, 8/01/32 (a) | 10,000 | 3,507,900 |
| Grossmont-Cuyamaca Community College District, GO, Refunding, CAB, Election of 2002, Series C (AGC), 5.20%, 8/01/30 (a) | 11,225 | 4,488,878 |
| Los Angeles Community Redevelopment Agency California, RB, Bunker Hill Project, Series A (AGM), 5.00%, 12/01/27 | 7,000 | 7,535,570 |
| Merced Union High School District, GO, CAB, Election of 2008, Series C (a): | | |
| 6.61%, 8/01/33 | 2,500 | 790,750 |
| 6.41%, 8/01/36 | 4,100 | 1,079,694 |
| 7.07%, 8/01/41 | 5,000 | 764,450 |
| Norwalk-La Mirada Unified School District California, GO, CAB, Election of 2002, Series E (AGC), 5.54%, 8/01/38 (a) | 7,500 | 1,772,925 |
| Orange County Sanitation District, COP, Series A, 5.00%, 2/01/35 | 2,500 | 2,763,225 |

Municipal Bonds	Par (000)	Value
California (continued)
County/City/Special District/School District (continued)
Oxnard Union High School District, GO, Refunding, Election of 2004, Series A (AGM), 5.00%, 8/01/35	$ 10,000	$ 10,901,900
Port of Oakland, Refunding RB, Series M (NPFGC), 5.38%, 11/01/27	18,000	18,242,460
Redlands Unified School District California, GO, Election of 2008 (AGM), 5.25%, 7/01/33	5,000	5,501,900
Rio Hondo Community College District, GO, CAB, Election of 2004, Series C, 5.33%, 8/01/36 (a)	16,650	4,709,785
San Bernardino Community College District, GO:
Election of 2002, Series A, 6.25%, 8/01/33	310	366,259
Election of 2008, Series B, 5.51%, 8/01/44 (a)	7,665	1,361,611
San Diego Regional Building Authority, RB, County Operations Center & Annex, Series A, 5.50%, 2/01/29	900	1,010,817
San Jose Financing Authority, RB, Civic Center Project, Series B (AMBAC), 5.00%, 6/01/32	14,800	14,845,436
San Jose Financing Authority, RB, Convention Center Expansion & Renovation Project:
5.75%, 5/01/36	2,560	2,803,891
5.75%, 5/01/42	4,500	5,115,960
San Marcos Unified School District, GO, CAB, Election of 2010, Series B, 0.00% 8/01/47 (a)(c)	4,800	683,520
Snowline Joint Unified School District, COP, Refunding, Refining Project (AGC), 5.75%, 9/01/38	5,635	6,367,099
Ventura County Community College District, GO, Election of 2002, Series C, 5.50%, 8/01/33	5,000	5,853,150
Vista Unified School District California, GO, Series A (AGM), 5.25%, 8/01/25	10,000	10,099,400
West Contra Costa County Unified School District California, GO, Election of 2005, Series A (AGM), 5.00%, 8/01/35	10,000	10,834,900
West Contra Costa Unified School District California, GO:
Election of 2002, Series B (AGM), 5.00%, 8/01/32	6,690	6,714,619
Election of 2010, Series A, 5.25%, 8/01/41	5,390	5,937,139

BLACKROCK MUNIHOLDINGS CALIFORNIA QUALITY FUND, INC. APRIL 30, 2012 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) | | |
| Westminster Redevelopment Agency California, Tax Allocation Bonds, Subordinate, Commercial Redevelopment Project No. 1 (AGC), 6.25%, 11/01/39 | $ 4,300 | $ 5,110,894 |
| | | 172,494,331 |
| Education — 8.2% | | |
| Anaheim City School District California, GO, Election of 2010 (AGM), 6.25%, 8/01/40 | 3,750 | 4,488,337 |
| California Municipal Finance Authority, RB, Emerson College, 6.00%, 1/01/42 | 2,500 | 2,856,550 |
| Gavilan Joint Community College District, GO, Election of 2004, Series D: | | |
| 5.50%, 8/01/31 | 2,170 | 2,570,691 |
| 5.75%, 8/01/35 | 8,400 | 9,926,112 |
| Riverside Community College District, GO, Election of 2004, Series C (AGM), 5.00%, 8/01/32 | 8,750 | 9,723,262 |
| San Diego Community College District, GO, Election of 2006 (AGM), 5.00%, 8/01/30 | 8,000 | 8,841,440 |
| San Jose Evergreen Community College District, GO, Election of 2010, Series A, 5.00%, 8/01/41 | 5,975 | 6,610,919 |
| University of California, RB, Series L, 5.00%, 5/15/36 | 3,030 | 3,312,245 |
| University of California, Refunding RB, General, Series A (AMBAC), 5.00%, 5/15/27 | 5,000 | 5,204,050 |
| | | 53,533,606 |
| Health — 13.2% | | |
| ABAG Finance Authority for Nonprofit Corps, Refunding RB, Sharp Healthcare: | | |
| 6.25%, 8/01/39 | 5,000 | 5,793,900 |
| Series A, 6.00%, 8/01/30 | 2,250 | 2,693,160 |
| California Health Facilities Financing Authority, RB: | | |
| Adventist Health System, Series A, 5.00%, 3/01/33 | 3,190 | 3,208,215 |
| Kaiser Permanente, Series A, 5.25%, 4/01/39 | 6,550 | 6,819,926 |
| Providence Health Services, Series B, 5.50%, 10/01/39 | 4,000 | 4,477,080 |
| Sutter Health, Series A, 5.25%, 11/15/46 | 19,000 | 19,943,350 |
| California Health Facilities Financing Authority, Refunding RB: | | |
| Catholic Healthcare West, Series A, 6.00%, 7/01/34 | 3,700 | 4,286,894 |

Municipal Bonds	Par (000)	Value
California (continued)
Health (concluded)
California Health Facilities Financing Authority, Refunding RB (concluded):
Sutter Health, Series B, 6.00%, 8/15/42	$ 9,655	$ 11,317,881
California Statewide Communities Development Authority, RB:
Health Facility Memorial Health Services, Series A, 6.00%, 4/01/13 (b)	4,915	5,172,988
Kaiser Permanente, Series A, 5.00%, 4/01/42	10,500	11,201,715
Kaiser Permanente, Series B, 5.25%, 3/01/45	6,100	6,361,751
City of Newport Beach California, RB, Hoag Memorial Hospital Presbyterian, 6.00%, 12/01/40	3,820	4,578,117
		85,854,977
State — 9.1%
California State Public Works Board, RB, Department of Education, Riverside Campus Project, Series B, 6.50%, 4/01/34	3,670	4,277,532
California State Public Works Board, RB, California State Prisons, Series C, 5.75%, 10/01/31	1,205	1,358,011
State of California, GO:
6.00%, 3/01/33	5,800	6,899,738
6.00%, 4/01/38	28,265	32,592,089
University of California, RB, Limited Project, Series D (NPFGC), 5.00%, 5/15/41	13,000	13,959,270
		59,086,640
Transportation — 14.6%
City of Fresno California, RB, Series B, AMT (AGM), 5.50%, 7/01/20	4,455	4,562,989
City of San Jose California, RB:
Series A-1, AMT, 6.25%, 3/01/34	1,400	1,603,266
Series A-1, AMT, 5.25%, 3/01/23	2,985	3,355,289
County of Orange California, RB, Series B, 5.75%, 7/01/34	6,345	7,084,319
County of Sacramento California Airport System, RB:
Senior Series A (AGC), 5.50%, 7/01/41	7,275	7,911,562
Senior Series B, 5.75%, 7/01/39	2,650	2,922,473
Senior Series B, AMT (AGM), 5.75%, 7/01/28	13,275	14,732,197
Senior Series B, AMT (AGM), 5.25%, 7/01/33	19,525	20,693,181

BLACKROCK MUNIHOLDINGS CALIFORNIA QUALITY FUND, INC. APRIL 30, 2012 2

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

| Municipal
Bonds | Par (000) | Value |
| --- | --- | --- |
| California (continued) | | |
| Transportation (concluded) | | |
| Los Angeles Department of Airports, RB, Los Angeles International Airport, Senior Series D, 5.25%, 5/15/29 | $ 2,590 | $ 2,967,752 |
| Los Angeles Department of Airports, Refunding RB, Series A, 5.25%, 5/15/39 | 2,775 | 3,057,523 |
| Los Angeles Harbor Department, RB, Series B, 5.25%, 8/01/34 | 5,530 | 6,220,199 |
| San Francisco City & County Airports Commission, RB, Series E, 6.00%, 5/01/39 | 9,650 | 11,149,803 |
| San Francisco City & County Airports Commission, Refunding RB, Second Series 34E, AMT (AGM), 5.75%, 5/01/24 | 5,000 | 5,725,700 |
| San Joaquin County Transportation Authority, RB, Limited Tax, Measure K, Series A, 6.00%, 3/01/36 | 2,400 | 2,878,776 |
| | | 94,865,029 |
| Utilities — 31.0% | | |
| Anaheim Public Financing Authority, RB, Electric System Distribution Facilities, Series A, 5.38%, 10/01/36 | 2,200 | 2,515,436 |
| City of Escondido California, COP, Refunding, Series A (NPFGC), 5.75%, 9/01/24 | 465 | 465,284 |
| City of Los Angeles California, Refunding RB, Sub-Series A: | | |
| 5.00%, 6/01/28 | 2,000 | 2,279,100 |
| 5.00%, 6/01/32 | 3,000 | 3,372,870 |
| Dublin-San Ramon Services District, Refunding RB, 6.00%, 8/01/41 | 4,000 | 4,758,040 |
| East Bay Municipal Utility District, Refunding RB, Sub-Series A: | | |
| (AGM), 5.00%, 6/01/37 | 11,190 | 12,348,053 |
| (AMBAC), 5.00%, 6/01/33 | 5,000 | 5,615,800 |
| Eastern Municipal Water District, COP, Series H, 5.00%, 7/01/33 | 2,500 | 2,710,675 |
| Imperial Irrigation District, Refunding RB, System, 5.13%, 11/01/38 | 9,500 | 10,174,025 |
| Los Angeles Department of Water & Power, RB, Series A, 5.38%, 7/01/38 | 10,500 | 11,740,995 |
| Los Angeles Department of Water & Power, Refunding RB, System, Series A, 5.25%, 7/01/39 | 16,000 | 18,154,240 |
| Metropolitan Water District of Southern California, RB, Series B-1 (NPFGC), 5.00%, 10/01/13 (b) | 8,605 | 9,178,695 |
| Orange County Sanitation District, Refunding RB, Series A, 4.00%, 2/01/33 | 25,000 | 26,706,500 |
| Oxnard Financing Authority, RB, Redwood Trunk Sewer & Headworks, Series A (NPFGC), 5.25%, 6/01/34 | 3,000 | 3,096,090 |

Municipal Bonds	Par (000)	Value
California (concluded)
Utilities (concluded)
Sacramento Municipal Utility District, RB, Series R (NPFGC), 5.00%, 8/15/33	$ 17,500	$ 18,183,375
San Diego County Water Authority, COP, Series A (NPFGC), 5.00%, 5/01/12 (b)	6,505	6,570,896
San Diego County Water Authority, COP, Refunding, Series A (NPFGC), 5.00%, 5/01/32	3,495	3,534,598
San Diego Public Facilities Financing Authority, Refunding RB, Senior Series A:
5.25%, 5/15/34	1,000	1,129,660
5.25%, 5/15/39	12,815	14,347,930
San Francisco City & County Public Utilities Commission, RB:
Local Water Main Sub-Series C, 5.00%, 11/01/41	5,000	5,499,950
Series A (NPFGC), 5.00%, 11/01/12 (b)	15,000	15,228,300
Series B, 5.00%, 11/01/30	14,000	15,848,560
San Juan Water District, Refunding RB, San Juan & Citrus Heights, 5.25%, 2/01/33 (c)	7,325	8,382,584
		201,841,656
Total Municipal Bonds in California		670,484,524
Puerto Rico — 0.3%
County/City/Special District/School
District — 0.3%
Puerto Rico Sales Tax Financing Corp., RB, Series C, 6.22%, 8/01/39 (a)	8,750	1,937,163
Total Municipal Bonds in Puerto Rico		1,937,163
Total Municipal Bonds – 103.3%		672,421,687
Municipal Bonds Transferred to Tender Option Bond
(TOB) Trusts (d)
California — 61.8%
County/City/Special District/School
District — 33.1%
Alameda County Joint Powers Authority, Refunding RB, Lease (AGM), 5.00%, 12/01/34	13,180	14,133,310
Contra Costa Community College District California, GO, Election of 2002 (NPFGC), 5.00%, 8/01/28	7,800	8,277,204
Desert Community College District California, GO, Series C (AGM), 5.00%, 8/01/37	16,530	17,603,293
Foothill-De Anza Community College District, GO, Series C, 5.00%, 8/01/40	10,000	11,193,100

BLACKROCK MUNIHOLDINGS CALIFORNIA QUALITY FUND, INC. APRIL 30, 2012 3

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

| Municipal
Bonds Transferred to Tender Option Bond (TOB) Trusts (d) | Par (000) | Value |
| --- | --- | --- |
| California (continued) | | |
| County/City/Special District/School District (concluded) | | |
| Los Angeles Community College District California, GO: | | |
| Election of 2001, Series A (NPFGC), 5.00%, 8/01/32 | $ 6,647 | $ 7,464,811 |
| Election of 2001, Series E-1, 5.00%, 8/01/33 | 11,770 | 12,961,477 |
| Election of 2003, Series E (AGM), 5.00%, 8/01/31 | 11,216 | 12,361,093 |
| Election of 2003, Series F-1, 5.00%, 8/01/33 | 10,000 | 11,012,300 |
| Election of 2008, Series A, 6.00%, 8/01/33 | 9,596 | 11,349,230 |
| Los Angeles County Metropolitan Transportation Authority, Refunding RB, Proposition A, First Tier, Senior Series A (AMBAC), 5.00%, 7/01/35 | 8,997 | 9,891,711 |
| Los Angeles County Sanitation Districts Financing Authority, Refunding RB, Capital Project 14 (BHAC), 5.00%, 10/01/34 | 7,917 | 8,542,100 |
| Ohlone Community College District, GO, Series B (AGM), 5.00%, 8/01/30 | 16,518 | 17,773,505 |
| Poway Unified School District, GO, Election of 2002, Improvement District 02, Series 1-B (AGM), 5.00%, 8/01/30 | 10,000 | 10,759,400 |
| San Bernardino Community College District California, GO, Election of 2002, Series C (AGM), 5.00%, 8/01/31 | 17,770 | 19,730,031 |
| San Diego Community College District California, GO, Election of 2002 (AGM), 5.00%, 5/01/15 (b) | 12,549 | 14,281,091 |
| San Francisco Bay Area Rapid Transit District, Refunding RB, Series A (NPFGC), 5.00%, 7/01/30 | 23,100 | 25,321,758 |
| San Francisco Bay Area Transit Financing Authority, Refunding RB, Series A (NPFGC), 5.00%, 7/01/34 | 2,499 | 2,739,696 |
| | | 215,395,110 |
| Education — 11.8% | | |
| Chaffey Community College District, GO, Election of 2002, Series B (NPFGC), 5.00%, 6/01/30 | 9,905 | 10,654,177 |
| Los Rios Community College District, GO, Election of 2008, Series A, 5.00%, 8/01/35 | 11,000 | 12,198,230 |
| Mount Diablo California Unified School District, GO, 5.00%, 6/01/31 | 4,000 | 4,303,320 |
| Riverside Community College District, GO, Election of 2004, Series C (NPFGC), 5.00%, 8/01/32 | 8,910 | 9,901,059 |

| Municipal
Bonds Transferred to Tender Option Bond (TOB) Trusts (d) | Par (000) | Value |
| --- | --- | --- |
| California (concluded) | | |
| Education (concluded) | | |
| University
of California, RB: | | |
| Limited Project, Series B (AGM), 5.00%, 5/15/33 | $ 17,397 | $ 18,117,515 |
| Limited Project, Series D (AGM), 5.00%, 5/15/41 | 8,000 | 8,590,320 |
| Series O, 5.75%, 5/15/34 | 11,190 | 12,983,757 |
| | | 76,748,378 |
| Transportation — 2.5% | | |
| Los Angeles Department of Airports, Refunding RB, Los Angeles International Airport, Senior Series A, 5.00%, 5/15/40 | 4,999 | 5,429,485 |
| San Mateo County Transportation Authority, Refunding RB, Series A (NPFGC), 5.00%, 6/01/32 | 10,000 | 10,871,400 |
| | | 16,300,885 |
| Utilities — 14.4% | | |
| City of Napa California, RB (AMBAC), 5.00%, 5/01/35 | 9,100 | 9,717,162 |
| East Bay Municipal Utility District, RB, Sub-Series A (NPFGC), 5.00%, 6/01/35 | 12,070 | 13,266,258 |
| East Bay Municipal Utility District, Refunding RB, Sub-Series A (AMBAC), 5.00%, 6/01/37 | 14,510 | 15,870,603 |
| Los Angeles Department of Water & Power, RB, Power System, Sub-Series A-2 (AGM), 5.00%, 7/01/35 | 7,500 | 8,206,725 |
| Metropolitan Water District of Southern California, RB, Series A (AGM), 5.00%, 7/01/35 | 12,870 | 14,170,642 |
| Rancho Water District Financing Authority, Refunding RB, Series A (AGM), 5.00%, 8/01/34 | 5,008 | 5,432,593 |
| Sacramento Regional County Sanitation District, RB, Sacramento Regional County Sanitation (NPFGC), 5.00%, 12/01/36 | 4,500 | 4,910,130 |
| San Diego County Water Authority, COP, Series A (AGM), 5.00%, 5/01/31 | 4,000 | 4,198,720 |
| San Diego County Water Authority, COP, Refunding, Series 2008-A (AGM), 5.00%, 5/01/33 | 16,740 | 18,259,155 |
| | | 94,031,988 |
| Total Municipal Bonds Transferred to Tender Option Bond (TOB) Trusts – 61.8% | | 402,476,361 |
| Total Long-Term Investments (Cost – $1,004,785,992) – 165.1% | | 1,074,898,048 |

BLACKROCK MUNIHOLDINGS CALIFORNIA QUALITY FUND, INC. APRIL 30, 2012 4

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

| Short-Term
Securities | Par (000) | Value |
| --- | --- | --- |
| California Health Facilities Financing Authority, RB, VRDN, Hospital Adventist Health System, Series B (Wells Fargo Bank NA LOC), 0.22%, 4/30/12 (e) | $ 1,700 | $ 1,700,000 |

BIF California Municipal Money Fund, 0.00% (f)(g)	10,185,618	10,185,618
Total Short-Term Securities (Cost – $11,885,618) – 1.9%		11,885,618
Total Investments (Cost - $1,016,671,610*)
– 167.0%		1,086,783,666
Other Assets Less Liabilities – 1.9%		12,336,127
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable – (29.9)%		(194,249,852	)
VMTP Shares, at Liquidation Value – (39.0)%		(254,000,000	)
Net Assets Applicable to Common Shares – 100.0%	$	650,869,941

• As of April 30, 2012, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:

Tax cost	$
Gross
unrealized appreciation	$ 70,679,494
Gross
unrealized depreciation	(14,971	)
Net
unrealized appreciation	$ 70,664,523

| (a) | Represents a
zero-coupon bond. Rate shown reflects the current yield as of report date. |
| --- | --- |
| (b) | US
government securities, held in escrow, are used to pay interest on this
security, as well as to retire the bond in full at the date indicated,
typically at a premium to par. |
| (c) | When-issued
security. Unsettled when-issued transactions were as follows: |

Counterparty	Value	Unrealized Appreciation
Citigroup NA	$ 8,382,584	$ 107,165
Stifel
Nicolaus & Co.	$ 683,520	$ 16,272

| (d) | 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. |
| --- | --- |
| (e) | Variable
rate security. Rate shown is as of report date. |
| (f) | 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	2,838,067	10,185,618	—

| (g) | Represents
the current yield as of report date. |
| --- | --- |
| • | For Fund
compliance purposes, the Fund’s sector classifications refer to any one or
more of the sector sub-classifications used by one or more widely recognized
market indexes or rating group indexes and/or as defined by Fund management.
These definitions may not apply for purposes of this report, which may
combine such sector sub-classifications for reporting ease. |

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.
CAB	Capital
Appreciation Bonds
COP	Certificates
of Participation
GO	General
Obligation Bonds
LOC	Letter of
Credit
NPFGC	National
Public Finance Guarantee Corp.
RB	Revenue
Bonds
VRDN	Variable
Rate Demand Notes

• Financial futures contracts sold as of April 30, 2012 were as follows:

Contracts — 400	10-Year US Treasury Note	Chicago Board of Trade	June 2012	Notional Value — $ 52,912,500	Unrealized Depreciation — $ (796,073	)

BLACKROCK MUNIHOLDINGS CALIFORNIA QUALITY FUND, INC. APRIL 30, 2012 5

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

•
•	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
and derivative financial instruments)

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Fund’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instruments and is not necessarily an indication of the risks associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments and other significant accounting policies, please refer to the Fund’s most recent financial statements as contained in its semi-annual report.

The following tables summarize the inputs used as of April 30, 2012 in determining the fair valuation of the Fund’s investments and derivative financial instruments:

| Valuation
Inputs | Level 1 | Level 2 | | Total |
| --- | --- | --- | --- | --- |
| Assets: | | | | |
| Investments: | | | | |
| Long-Term Investments 1 | — | $ 1,074,898,048 | — | $ 1,074,898,048 |
| Short-Term Securities | $ 10,185,618 | 1,700,000 | — | 11,885,618 |
| Total | $ 10,185,618 | $ 1,076,598,048 | — | $ 1,086,783,666 |

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

| Valuation
Inputs | Level 1 | | | | Total | |
| --- | --- | --- | --- | --- | --- | --- |
| Derivative Financial Instruments 2 | | | | | | |
| Liabilities: | | | | | | |
| Interest rate contracts | $ (796,073 | ) | — | — | $ (796,073 | ) |

2 Derivative financial instruments are financial futures contracts, which are valued at the unrealized appreciation/depreciation on the instrument.

Certain of the Fund’s assets and liabilities are held at carrying amount which approximates fair value. Such assets and liabilities are categorized within the disclosure hierarchy as follows:

| Valuation
Inputs | Level 1 | Level 2 | | | Total | |
| --- | --- | --- | --- | --- | --- | --- |
| Assets: | | | | | | |
| Cash pledged as collateral for financial futures contracts | $ 528,000 | — | | — | $ 528,000 | |
| Liabilities: | | | | | | |
| TOB trust certificates | — | $ (194,143,955 | ) | — | (194,143,955 | ) |
| VMTP Shares | — | (254,000,000 | ) | — | (254,000,000 | ) |
| Total | $ 528,000 | $ (448,143,955 | ) | — | $ (447,615,955 | ) |

There were no transfers between levels during the period ended April 30, 2012.

BLACKROCK MUNIHOLDINGS CALIFORNIA QUALITY FUND, INC. APRIL 30, 2012 6

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: June 22, 2012
	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: June 22, 2012
	By:	/s/ Neal J. Andrews
		Neal J. Andrews
		Chief Financial Officer (principal financial officer) of
		BlackRock MuniHoldings California Quality Fund, Inc.
	Date: June 22, 2012