BLACKROCK MUNIHOLDINGS CALIFORNIA QUALITY FUND, INC.

N-CSR 1 d205577dncsr.htm BLACKROCK MUNIHOLDINGS CALIFORNIA QUALITY FUND, INC BLACKROCK MUNIHOLDINGS CALIFORNIA QUALITY FUND, INC

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT

INVESTMENT COMPANIES

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

Registrants telephone number, including area code: (800) 882-0052, Option 4

Date of fiscal year end: 07/31/2021

Date of reporting period: 07/31/2021

Item 1 Report to Stockholders

(a) The Report to Shareholders is attached herewith.

JULY 31, 2021

2021 Annual Report

BlackRock MuniHoldings California Quality Fund, Inc. (MUC)

BlackRock MuniHoldings New Jersey Quality Fund, Inc. (MUJ)

BlackRock MuniYield Michigan Quality Fund, Inc. (MIY)

BlackRock MuniYield Pennsylvania Quality Fund (MPA)

Not FDIC Insured May Lose Value No Bank Guarantee

The Markets in Review

Dear Shareholder,

The 12-month reporting period as of July 31, 2021 was a remarkable period of adaptation and recovery, as the global economy dealt with the implications of the coronavirus (or COVID-19) pandemic. The United States, along with most of the world, began the reporting period emerging from a severe recession, prompted by pandemic-related restrictions that disrupted many aspects of daily life. However, easing restrictions and robust government intervention led to a strong rebound, and the economy grew at a significant pace for the reporting period, eventually regaining the output lost from the pandemic.

Equity prices rose with the broader economy, as strong fiscal and monetary support, as well as the development of vaccines, made investors increasingly optimistic about the economic outlook. The implementation of mass vaccination campaigns and passage of two additional fiscal stimulus packages further boosted stocks, and many equity indices neared or surpassed all-time highs late in the reporting period. In the United States, returns of small-capitalization stocks, which benefited the most from the resumption of in-person activities, outpaced large-capitalization stocks. International equities also gained, as both developed and emerging markets rebounded substantially.

The 10-year U.S. Treasury yield (which is inversely related to bond prices) had fallen sharply prior to the beginning of the reporting period, which meant bonds were priced for extreme risk avoidance and economic disruption. Despite expectations of doom and gloom, the economy expanded rapidly, stoking inflation concerns in early 2021, which led to higher yields and a negative overall return for most U.S. Treasuries. In the corporate bond market, support from the U.S. Federal Reserve (the Fed) assuaged credit concerns and led to solid returns for high-yield corporate bonds, although investment-grade corporates declined slightly.

The Fed remained committed to accommodative monetary policy by maintaining near zero interest rates and by reiterating that inflation could exceed its 2% target for a sustained period without triggering a rate increase. In response to rising inflation late in the period, the Fed changed its market guidance, raising the likelihood of less bond purchasing and the possibility of higher rates in 2023.

Looking ahead, we believe that the global expansion will continue to broaden as Europe and other developed market economies gain momentum, although the Delta variant remains a threat, particularly in emerging markets. While we expect inflation to remain elevated in the medium-term as the expansion continues, we believe the recent uptick owes more to temporary supply disruptions than a lasting change in fundamentals. The change in Fed policy also means that moderate inflation is less likely to be followed by interest rate hikes that could threaten the economic expansion.

Overall, we favor a moderately positive stance toward risk, with an overweight in equities. Sectors that are better poised to manage the transition to a lower-carbon world, such as technology and healthcare, are particularly attractive in the long-term. U.S. small-capitalization stocks and European equities are likely to benefit from the continuing vaccine-led restart. We are underweight long-term credit, but inflation-protected U.S. Treasuries, Asian fixed income, and Chinese government bonds offer potential opportunities. We believe that international diversification and a focus on sustainability can help provide portfolio resilience, and the disruption created by the coronavirus appears to be accelerating the shift toward sustainable investments.

In this environment, our view is that investors need to think globally, extend their scope across a broad array of asset classes, and be nimble as market conditions change. We encourage you to talk with your financial advisor and visit blackrock.com for further insight about investing in todays markets.

Sincerely,

Rob Kapito

President, BlackRock Advisors, LLC

Rob Kapito

President, BlackRock Advisors, LLC

Total Returns as of July 31, 2021	6-Month	12-Month
U.S. large cap equities (S&P
500 ® Index)	19.19%	36.45%
U.S. small cap equities (Russell
2000 ® Index)	7.86	51.97
International equities (MSCI Europe, Australasia, Far East Index)	10.83	30.31
Emerging market equities (MSCI Emerging Markets Index)	(2.76)	20.64
3-month Treasury bills (ICE BofA 3-Month U.S. Treasury Bill Index)	0.02	0.08
U.S. Treasury securities (ICE BofA 10-Year U.S. Treasury Index)	(0.59)	(5.12)
U.S. investment grade bonds (Bloomberg Barclays U.S. Aggregate Bond Index)	0.21	(0.70)
Tax-exempt municipal bonds (S&P
Municipal Bond Index)	1.38	3.47
U.S. high yield bonds (Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped
Index)	3.66	10.62
Past performance is not an indication of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.

2 T H I S P A G E I S N O T P A R T O F Y O U R F U N D R E P O R T

Table of Contents

The Markets in Review	2
Annual Report:
Municipal Market Overview	4
The Benefits and Risks of Leveraging	5
Derivative Financial Instruments	5
Fund Summary	6
Financial Statements:
Schedules of Investments	18
Statements of Assets and Liabilities	39
Statements of Operations	40
Statements of Changes in Net Assets	41
Statements of Cash Flows	43
Financial Highlights	44
Notes to Financial Statements	48
Report of Independent Registered Public Accounting Firm	59
Disclosure of Investment Advisory Agreements	60
Investment Objectives, Policies and Risks	64
Automatic Dividend Reinvestment Plan	74
Director and Officer Information	75
Additional Information	79
Glossary of Terms Used in this Report	83

Municipal Market Overview For the Reporting Period Ended July 31, 2021

Municipal Market Conditions

Municipal bonds posted positive total returns during the period despite rising interest rates as the economy normalized from the pandemic-induced economic shutdown. The asset class benefited from favorable supply and demand dynamics and improved credit fundamentals amid considerable fiscal stimulus and a quicker-than-expected rebound in state and local government revenues. As a result, municipal bonds generated substantial excess returns versus duration-matched U.S. Treasuries, and longer duration and lower credit quality strategies outperformed. Despite broad strength, the market contended with brief periods of volatility surrounding U.S. election uncertainty as well as a temporary valuation-based market correction in late February.

| Technical support was strong throughout the period as robust demand outpaced supply. During the 12 months ended July 31, 2021, municipal bond funds experienced net inflows totaling $98 billion, with January 2021
producing the largest monthly net inflow on record (based on data from the Investment Company Institute). For the same period, the market absorbed $471 billion in issuance, notably elevated compared to the $450 billion issued during the
prior |
| --- |
| 12-month period. However, taxable municipal issuance, which typically draws a different and unique buyer base, was proportionally elevated, making supply less onerous on
the traditional tax-exempt market. |

A Closer Look at Yields

From July 31, 2020 to July 31, 2021, yields on AAA-rated 30-year municipal bonds increased by 2 basis points (bps) from 1.37% to 1.39%, while ten-year rates increased by 17 bps from 0.65% to 0.82% and five-year rates increased by 13 bps from 0.23% to 0.36% (as measured by Thomson Municipal Market Data). As a result, the municipal yield curve steepened over the 12-month period with the spread between two- and 30-year maturities steepening by 9 bps, led by 24 bps of steepening between two- and ten-year maturities. Consistent municipal outperformance has resulted in stretched valuations. After dislocating at the height of the pandemic, municipal-to-U.S. Treasury ratios posted all-time lows in February 2021 and remained well below historical averages.

Financial Conditions of Municipal Issuers

The COVID-19 pandemic has been an unprecedented shock to the system impacting nearly every sector in the municipal market. Fortunately, most states and municipalities were in excellent fiscal health before the crisis, and the federal government delivered another $350 billion injection. Direct state and local government aid has provided additional support to own-source government tax receipts, which continue to outperform the dire predictions made in early 2020. Essential public services such as power, water, and sewer remain protected segments. State housing authority bonds, flagship universities, and strong national and regional health systems have absorbed the impact of the economic shock. While some segments still confront financial pressures, the combination of new federal stimulus and vaccine distribution is boosting economic activity and, consequently, increasing revenue receipts in these sectors as well. Critical providers (safety net hospitals, mass transit systems, airports) with limited resources may still experience fiscal strain but the additional aid and the re-opening of the economy will continue to support operating results in the second half of 2021, despite the surging delta variant of the coronavirus. BlackRock anticipates that a small subset of the market, mainly non-rated stand-alone projects, will remain susceptible to credit deterioration. However, the risk of new mandated lockdowns is significantly diminished, and we expect limited impact on the high fundamental quality of state and local governments as well as essential service providers. While credit fundamentals have improved noticeably across the municipal space, BlackRock advocates careful credit selection as the market must still navigate near-term uncertainty.

The opinions expressed are those of BlackRock as of July 31, 2021 and are subject to change at any time due to changes in market or economic conditions. The comments should not be construed as a recommendation of any individual holdings or market sectors. Investing involves risk including loss of principal. Bond values fluctuate in price so the value of your investment can go down depending on market conditions. Fixed income risks include interest-rate and credit risk. Typically, when interest rates rise, there is a corresponding decline in bond values. Credit risk refers to the possibility that the bond issuer will not be able to make principal and interest payments. There may be less information on the financial condition of municipal issuers than for public corporations. The market for municipal bonds may be less liquid than for taxable bonds. Some investors may be subject to Alternative Minimum Tax (AMT). Capital gains distributions, if any, are taxable.

The S&P Municipal Bond Index, a broad, market value-weighted index, seeks to measure the performance of the U.S. municipal bond market. All bonds in the index are exempt from U.S. federal income taxes or subject to the AMT. Past performance is not an indication of future results. Index performance is shown for illustrative purposes only. It is not possible to invest directly in an index.

4 2 0 2 1 B L A C K R O C K A N N U A L R E P O R T T O S H A R E H O L D E R S

The Benefits and Risks of Leveraging

The Funds may utilize leverage to seek to enhance the distribution rate on, and net asset value (NAV) of, their common shares (Common Shares). However, there is no guarantee that these objectives can be achieved in all interest rate environments.

In general, the concept of leveraging is based on the premise that the financing cost of leverage, which is based on short-term interest rates, is normally lower than the income earned by a Fund on its longer-term portfolio investments purchased with the proceeds from leverage. To the extent that the total assets of each Fund (including the assets obtained from leverage) are invested in higher-yielding portfolio investments, each Funds shareholders benefit from the incremental net income. The interest earned on securities purchased with the proceeds from leverage (after paying the leverage costs) is paid to shareholders in the form of dividends, and the value of these portfolio holdings (less the leverage liability) is reflected in the per share NAV.

To illustrate these concepts, assume a Funds Common Shares capitalization is $100 million and it utilizes leverage for an additional $30 million, creating a total value of $130 million available for investment in longer-term income securities. If prevailing short-term interest rates are 3% and longer-term interest rates are 6%, the yield curve has a strongly positive slope. In this case, a Funds financing costs on the $30 million of proceeds obtained from leverage are based on the lower short-term interest rates. At the same time, the securities purchased by a Fund with the proceeds from leverage earn income based on longer-term interest rates. In this case, a Funds financing cost of leverage is significantly lower than the income earned on a Funds longer-term investments acquired from such leverage proceeds, and therefore the holders of Common Shares (Common Shareholders) are the beneficiaries of the incremental net income.

However, in order to benefit Common Shareholders, the return on assets purchased with leverage proceeds must exceed the ongoing costs associated with the leverage. If interest and other costs of leverage exceed a Funds return on assets purchased with leverage proceeds, income to shareholders is lower than if a Fund had not used leverage. Furthermore, the value of the Funds portfolio investments generally varies inversely with the direction of long-term interest rates, although other factors can influence the value of portfolio investments. In contrast, the amount of each Funds obligations under its respective leverage arrangement generally does not fluctuate in relation to interest rates. As a result, changes in interest rates can influence the Funds NAVs positively or negatively. Changes in the future direction of interest rates are very difficult to predict accurately, and there is no assurance that a Funds intended leveraging strategy will be successful.

The use of leverage also generally causes greater changes in each Funds NAV, market price and dividend rates than comparable portfolios without leverage. In a declining market, leverage is likely to cause a greater decline in the NAV and market price of a Funds Common Shares than if the Fund were not leveraged. In addition, each Fund may be required to sell portfolio securities at inopportune times or at distressed values in order to comply with regulatory requirements applicable to the use of leverage or as required by the terms of leverage instruments, which may cause the Fund to incur losses. The use of leverage may limit a Funds ability to invest in certain types of securities or use certain types of hedging strategies. Each Fund incurs expenses in connection with the use of leverage, all of which are borne by Common Shareholders and may reduce income to the Common Shares. Moreover, to the extent the calculation of each Funds investment advisory fees includes assets purchased with the proceeds of leverage, the investment advisory fees payable to the Funds investment adviser will be higher than if the Funds did not use leverage.

To obtain leverage, each Fund has issued Variable Rate Demand Preferred Shares (VRDP Shares) or Variable Rate Muni Term Preferred Shares (VMTP Shares) (collectively, Preferred Shares) and/or leveraged its assets through the use of tender option bond trusts (TOB Trusts) as described in the Notes to Financial Statements.

Under the Investment Company Act of 1940, as amended (the 1940 Act), each Fund is permitted to issue debt up to 33 1/3% of its total managed assets or equity securities (e.g., Preferred Shares) up to 50% of its total managed assets. A Fund may voluntarily elect to limit its leverage to less than the maximum amount permitted under the 1940 Act. In addition, a Fund may also be subject to certain asset coverage, leverage or portfolio composition requirements imposed by the Preferred Shares governing instruments or by agencies rating the Preferred Shares, which may be more stringent than those imposed by the 1940 Act.

If a Fund segregates or designates on its books and records cash or liquid assets having a value not less than the value of a Funds obligations under the TOB Trust (including accrued interest), then the TOB Trust is not considered a senior security and is not subject to the foregoing limitations and requirements imposed by the 1940 Act.

Derivative Financial Instruments

The Funds may invest in various derivative financial instruments. These instruments are used to obtain exposure to a security, commodity, index, market, and/or other assets without owning or taking physical custody of securities, commodities and/or other referenced assets or to manage market, equity, credit, interest rate, foreign currency exchange rate, commodity and/or other risks. Derivative financial instruments may give rise to a form of economic leverage and involve risks, including the imperfect correlation between the value of a derivative financial instrument and the underlying asset, possible default of the counterparty to the transaction or illiquidity of the instrument. The Funds successful use of a derivative financial instrument depends on the investment advisers ability to predict pertinent market movements accurately, which cannot be assured. The use of these instruments may result in losses greater than if they had not been used, may limit the amount of appreciation a Fund can realize on an investment and/or may result in lower distributions paid to shareholders. The Funds investments in these instruments, if any, are discussed in detail in the Notes to Financial Statements.

T H E B E N E F I T S A N D R I S K S O F L E V E R A G I N G / D E R I V A T I V E F I N A N C I A L I N S T R U M E N T S 5

Fund Summary as of July 31, 2021 BlackRock MuniHoldings California Quality Fund, Inc. (MUC)

Investment Objective

BlackRock MuniHoldings California Quality Fund, Inc.s (MUC) (the Fund) investment objective is to provide shareholders with current income exempt from U.S. federal income taxes and California personal income taxes. The Fund seeks to achieve its investment objective by investing primarily in municipal obligations exempt from U.S. federal income taxes (except that the interest may be subject to the U.S. federal alternative minimum tax) and California personal income taxes. Under normal market conditions, the Fund invests at least 80% of its assets in investment grade municipal obligations with remaining maturities of one year or more at the time of investment. The municipal obligations in which the Fund primarily invests are either rated investment grade quality, or are considered by the Funds investment adviser to be of comparable quality, at the time of investment. The Fund may invest up to 20% of its managed assets in securities that are rated below investment grade, or are considered by the Funds investment adviser to be of comparable quality, at the time of purchase. The Fund may invest directly in securities or synthetically through the use of derivatives.

No assurance can be given that the Funds investment objective will be achieved.

Fund Information

Symbol on New York Stock Exchange	MUC
Initial Offering Date	February 27, 1998
Yield on Closing Market Price as of July 31, 2021
($16.09) (a)	4.10%
Tax Equivalent Yield (b)	8.93%
Current Monthly Distribution per Common Share (c)	$0.0550
Current Annualized Distribution per Common Share (c)	$0.6600
Leverage as of July 31, 2021 (d)	38%

(a) Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance is not an indication of future results.

(b) Tax equivalent yield assumes the maximum marginal U.S. federal and state tax rate of 54.1%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields.

(d) Represents VMTP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VMTP Shares and TOB Trusts, minus the sum of its accrued liabilities. Does not reflect derivatives or other instruments that may give rise to economic leverage. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging and Derivative Financial Instruments.

Market Price and Net Asset Value Per Share Summary

	07/31/21	07/31/20		High	Low
Closing Market Price	$ 16.09	$ 14.67	9.68 %	$ 16.22	$ 13.89
Net Asset Value	16.16	15.95	1.32	16.24	15.50

TOTAL RETURN BASED ON A $10,000 INVESTMENT

(a) Represents the Funds closing market price on the NYSE and reflects the reinvestment of dividends and/or distributions at actual reinvestment prices.

(b) A broad, market value-weighted index that seeks to measure the performance of the U.S. municipal bond market.

6 2 0 2 1 B L A C K R O C K A N N U A L R E P O R T T O S H A R E H O L D E R S

Fund Summary as of July 31, 2021 (continued) BlackRock MuniHoldings California Quality Fund, Inc. (MUC)

Performance Summary for the Period Ended July 31, 2021

Returns for the period ended July 31, 2021 were as follows:

1 Year	5 Years	10 Years
Fund at NAV (a)(b)	5.78 %	4.14 %	6.60 %
Fund at Market
Price (a)(b)	14.52	4.34	7.42
Lipper California Municipal Debt Funds at NAV (c)	5.82	4.23	7.01
Lipper California Municipal Debt Funds at Market Price (c)	11.62	3.53	7.64
S&P ® Municipal Bond Index	3.47	3.34	4.29

(a) All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices. Performance results reflect the Funds use of leverage.

(b) The Funds discount to NAV narrowed during the period, which accounts for the difference between performance based on market price and performance based on NAV.

(c) Average return. Returns reflect reinvestment of dividends and/or distributions at NAV on the ex-dividend date as calculated by Lipper.

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Past performance is not an indication of future results.

More information about the Funds historical performance can be found in the Closed End Funds section of blackrock.com .

The following discussion relates to the Funds absolute performance based on NAV:

Following the outbreak of the pandemic in early 2020, the consensus expectation was that state and local issuers in California would be challenged by a sizable decline in revenues. Instead, the states credit rating stabilized at a strong AA level, reflecting its diversified economy, rising property values and strong performance for the equity market. The outward migration of residents and businesses looking to flee the states higher taxes did not result in credit deterioration. Instead, many wealthy residents looked to reduce their tax burdens by purchasing tax-exempt California municipal bonds of all credit qualities. The resulting record inflows into municipal bond funds created a dramatic imbalance in demand relative to the available supply of securities. In this favorable environment, yields declined (as prices rose) and yield spreads tightened significantly.

Positions in bonds with maturities of 20 years and above benefited performance, as longer-term debt outpaced short-term issues. The Fund was also helped by its positions in high yield and BBB rated securities, particularly its holdings in the tobacco sector and Puerto Rico sales tax debt.

The Funds use of leverage, which augmented income and amplified the effect of rising prices, was a further contributor. The Fund actively sought to manage interest rate risk using U.S. Treasury futures. Since Treasury yields rose, as prices fell, this strategy contributed to results.

Reinvestment risk remained a headwind since the proceeds from bonds that matured or were called needed to be reinvested at lower yields compared with bonds that were issued when yields were higher.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

F U N D S U M M A R Y 7

Fund Summary as of July 31, 2021 (continued) BlackRock MuniHoldings California Quality Fund, Inc. (MUC)

Overview of the Funds Total Investments

SECTOR ALLOCATION

Sector (a)(b) — County/City/Special District/School District	38	%	36	%
Health	19		18
Transportation	13		14
Education	9		9
Utilities	8		11
Tobacco	5		5
Housing	4		2
State	4		5
Corporate		(c)		(c)

CALL/MATURITY SCHEDULE

Calendar Year Ended December 31, (a)(d)
2021	2 %
2022	2
2023	3
2024	3
2025	3

CREDIT QUALITY ALLOCATION

Credit Rating (a)(e) — AAA/Aaa	14	%	14	%
AA/Aa	54		56
A	17		18
BBB/Baa	3		2
BB/Ba	1		1
B		(c)		(c)
N/R (f)	11		9

(a) Excludes short-term securities.

(b) For Fund compliance purposes, the Funds sector classifications refer to 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 the investment adviser. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.

(d) Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.

(e) For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P Global Ratings or Moodys Investors Service, Inc. if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

(f) The investment adviser evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment adviser has deemed certain of these unrated securities as investment grade quality. As of July 31, 2021 and July 31, 2020, the market value of unrated securities deemed by the investment adviser to be investment grade each represents less than 1% of the Funds total investments.

8 2 0 2 1 B L A C K R O C K A N N U A L R E P O R T T O S H A R E H O L D E R S

Fund Summary as of July 31, 2021 BlackRock MuniHoldings New Jersey Quality Fund, Inc. (MUJ)

Investment Objective

BlackRock MuniHoldings New Jersey Quality Fund, Inc.s (MUJ) (the Fund) investment objective is to provide shareholders with current income exempt from U.S. federal income tax and New Jersey personal income taxes. The Fund seeks to achieve its investment objective by investing primarily in long-term, investment grade municipal obligations exempt from U.S federal income taxes (except that the interest may be subject to the U.S. federal alternative minimum tax) and New Jersey personal income taxes. The municipal obligations in which the Fund primarily invests are either rated investment grade quality, or are considered by the Funds investment adviser to be of comparable quality, at the time of investment. Under normal market conditions, the Fund invests at least 80% of its assets in municipal obligations with remaining maturities of one year or more at the time of investment. The Fund may invest up to 20% of its managed assets in securities that are rated below investment grade, or are considered by the Funds investment adviser to be of comparable quality, at the time of purchase. The Fund may invest directly in securities or synthetically through the use of derivatives.

No assurance can be given that the Funds investment objective will be achieved.

Fund Information

Symbol on New York Stock Exchange	MUJ
Initial Offering Date	March 11, 1998
Yield on Closing Market Price as of July 31, 2021
($15.63) (a)	4.84%
Tax Equivalent Yield (b)	9.99%
Current Monthly Distribution per Common Share (c)	$0.0630
Current Annualized Distribution per Common Share (c)	$0.7560
Leverage as of July 31, 2021 (d)	38%

(a) Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance is not an indication of future results.

(b) Tax equivalent yield assumes the maximum marginal U.S. federal and state tax rate of 51.55%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields.

(d) Represents VRDP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VRDP Shares and TOB Trusts, minus the sum of its accrued liabilities. Does not reflect derivatives or other instruments that may give rise to economic leverage. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging and Derivative Financial Instruments.

Market Price and Net Asset Value Per Share Summary

	07/31/21	07/31/20		High	Low
Closing Market Price	$ 15.63	$ 14.21	9.99 %	$ 16.06	$ 13.52
Net Asset Value	16.29	15.83	2.91	16.37	15.50

TOTAL RETURN BASED ON A $10,000 INVESTMENT

(a) Represents the Funds closing market price on the NYSE and reflects the reinvestment of dividends and/or distributions at actual reinvestment prices.

(b) A broad, market value-weighted index that seeks to measure the performance of the U.S. municipal bond market.

F U N D S U M M A R Y 9

Fund Summary as of July 31, 2021 (continued) BlackRock MuniHoldings New Jersey Quality Fund, Inc. (MUJ)

Performance Summary for the Period Ended July 31, 2021

Returns for the period ended July 31, 2021 were as follows:

1 Year	5 Years	10 Years
Fund at NAV (a)(b)	8.22 %	4.86 %	6.76 %
Fund at Market
Price (a)(b)	15.67	4.54	7.06
Lipper New Jersey Municipal Debt Funds at NAV (c)	7.75	4.58	6.50
Lipper New Jersey Municipal Debt Funds at Market Price (c)	16.76	4.44	7.33
S&P ® Municipal Bond Index	3.47	3.34	4.29

(a) All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices. Performance results reflect the Funds use of leverage.

(b) The Funds discount to NAV narrowed during the period, which accounts for the difference between performance based on market price and performance based on NAV.

(c) Average return. Returns reflect reinvestment of dividends and/or distributions at NAV on the ex-dividend date as calculated by Lipper.

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Past performance is not an indication of future results.

More information about the Funds historical performance can be found in the Closed End Funds section of blackrock.com .

The following discussion relates to the Funds absolute performance based on NAV:

New Jersey outperformed the broader national market in the period, as fundamentals strengthened due in large part to the American Rescue Plan and the fact that revenues came in higher than originally projected in the early days of the pandemic. The state recently announced an estimated $10 billion surplus at fiscal year-end 2021 (June 30) due to $4 billion in better-than-expected state tax collections and an allocation of $6 billion in aid from the federal American Rescue Plan.

Holdings in the state tax-backed sector made the largest contribution to performance, led by Puerto Rico. Revenue sectors, including transportation, also experienced meaningful price appreciation.

Positions in lower-rated issues, especially in the BBB category, outpaced higher-rated securities. Longer-dated securitiesparticularly those with maturities of 20 years and abovedelivered strong returns, as well.

Reinvestment risk remained a headwind since the proceeds from bonds that matured or were called needed to be reinvested at lower yields compared to those issued when yields were higher.

10 2 0 2 1 B L A C K R O C K A N N U A L R E P O R T T O S H A R E H O L D E R S

Fund Summary as of July 31, 2021 (continued) BlackRock MuniHoldings New Jersey Quality Fund, Inc. (MUJ)

Overview of the Funds Total Investments

SECTOR ALLOCATION

Sector (a)(b) — State	28 %	19 %
Transportation	27	29
Education	15	15
County/City/Special District/School District	10	12
Health	6	9
Utilities	5	8
Housing	4	4
Tobacco	4	3
Corporate	1	1

CALL/MATURITY SCHEDULE

Calendar Year Ended December 31, (a)(c)
2021	2 %
2022	2
2023	8
2024	8
2025	4

CREDIT QUALITY ALLOCATION

Credit Rating (a)(d) — AAA/Aaa	5	%	6 %
AA/Aa	36		37
A	22		18
BBB/Baa	31		30
BB/Ba	3		3
B		(e)
N/R (f)	3		6

(a) Excludes short-term securities.

(d) For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P Global Ratings or Moodys Investors Service, Inc. if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

(e) Rounds to less than 1% of total investments.

F U N D S U M M A R Y 11

Fund Summary as of July 31, 2021 BlackRock MuniYield Michigan Quality Fund, Inc. (MIY)

Investment Objective

BlackRock MuniYield Michigan Quality Fund, Inc.s (MIY) (the Fund) investment objective is to provide shareholders with as high a level of current income exempt from U.S. federal and Michigan income taxes as is consistent with its investment policies and prudent investment management. The Fund seeks to achieve its investment objective by investing at least 80% of its assets in municipal obligations exempt from U.S. federal income taxes (except that the interest may be subject to the U.S. federal alternative minimum tax) and Michigan income taxes. Under normal market conditions, the Fund invests primarily in long-term municipal obligations that are investment grade quality, or are considered by the Funds investment adviser to be of comparable quality, at the time of investment. The Fund may invest up to 20% of its managed assets in securities that are rated below investment grade, or are considered by the Funds investment adviser to be of comparable quality, at the time of purchase. The Fund may invest directly in securities or synthetically through the use of derivatives.

No assurance can be given that the Funds investment objective will be achieved.

Fund Information

Symbol on New York Stock Exchange	MIY
Initial Offering Date	October 30, 1992
Yield on Closing Market Price as of July 31, 2021
($15.80) (a)	4.25%
Tax Equivalent Yield (b)	7.73%
Current Monthly Distribution per Common Share (c)	$0.0560
Current Annualized Distribution per Common Share (c)	$0.6720
Leverage as of July 31, 2021 (d)	37%

(a) Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance is not an indication of future results.

(b) Tax equivalent yield assumes the maximum marginal U.S. federal and state tax rate of 45.05%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields.

Market Price and Net Asset Value Per Share Summary

	07/31/21	07/31/20		High	Low
Closing Market Price	$ 15.80	$ 14.24	10.96 %	$ 15.80	$ 13.53
Net Asset Value	16.04	15.88	1.01	16.16	15.52

TOTAL RETURN BASED ON A $10,000 INVESTMENT

(a) Represents the Funds closing market price on the NYSE and reflects the reinvestment of dividends and/or distributions at actual reinvestment prices.

(b) A broad, market value-weighted index that seeks to measure the performance of the U.S. municipal bond market.

12 2 0 2 1 B L A C K R O C K A N N U A L R E P O R T T O S H A R E H O L D E R S

Fund Summary as of July 31, 2021 (continued) BlackRock MuniYield Michigan Quality Fund, Inc. (MIY)

Performance Summary for the Period Ended July 31, 2021

Returns for the period ended July 31, 2021 were as follows:

1 Year	5 Years	10 Years
Fund at NAV (a)(b)	5.61 %	4.52 %	6.63 %
Fund at Market
Price (a)(b)	16.02	5.50	7.42
Lipper Other States Municipal Debt Funds at NAV (c)	5.78	3.85	5.53
Lipper Other States Municipal Debt Funds at Market Price (c)	13.91	3.85	6.44
S&P ® Municipal Bond Index	3.47	3.34	4.29

(a) All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices. Performance results reflect the Funds use of leverage.

(b) The Funds discount to NAV narrowed during the period, which accounts for the difference between performance based on market price and performance based on NAV.

(c) Average return. Returns reflect reinvestment of dividends and/or distributions at NAV on the ex-dividend date as calculated by Lipper.

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Past performance is not an indication of future results.

More information about the Funds historical performance can be found in the Closed End Funds section of blackrock.com .

The following discussion relates to the Funds absolute performance based on NAV:

Michigans economy has improved and diversified since the recession of the late 2000s, albeit with continued dependance on the auto industry. While COVID-19 disrupted economic progress, Michigans unemployment rate has since improved, and net migration has stayed positive. The states rainy-day fund, after declining due to the revenue shortfall caused by the pandemic, has recovered and is projected to recapture its pre-coronavirus levels in the 2021 fiscal year.

The Funds positions in sectors that were most affected by COVID-19 in early 2020including education and health carecontributed strongly to performance as yield spreads narrowed considerably. Within the state tax-backed segment, Puerto Rico sales tax securities performed particularly well. The Funds holdings in lower-rated bonds also aided performance amid investors ongoing search for yield.

The Funds use of leverage, which augmented income and amplified the effect of rising prices, was a further contributor. Holdings on both the longer and front ends of the municipal yield curve aided performance as these areas performed the best. Conversely, positions in intermediate-term debt detracted, since yields rose in this area. The ongoing loss of higher-yielding bonds due to calls and maturities also detracted by leading to a reduction in income.

F U N D S U M M A R Y 13

Fund Summary as of July 31, 2021 (continued) BlackRock MuniYield Michigan Quality Fund, Inc. (MIY)

Overview of the Funds Total Investments

SECTOR ALLOCATION

Sector (a)(b) — Education	28 %	24 %
Health	21	22
State	16	18
County/City/Special District/School District	16	16
Utilities	7	10
Housing	5	4
Transportation	4	4
Corporate	2	2
Tobacco	1

CALL/MATURITY SCHEDULE

Calendar Year Ended December 31, (a)(c)
2021	1 %
2023	3
2024	5
2025	2
2026	4

CREDIT QUALITY ALLOCATION

Credit Rating (a)(d) — AAA/Aaa	2	%	2 %
AA/Aa	61		63
A	28		26
BBB/Baa	4		4
BB/Ba		(e)
N/R (f)	5		5

(a) Excludes short-term securities.

(e) Rounds to less than 1% of total investments.

14 2 0 2 1 B L A C K R O C K A N N U A L R E P O R T T O S H A R E H O L D E R S

Fund Summary as of July 31, 2021 BlackRock MuniYield Pennsylvania Quality Fund (MPA)

Investment Objective

BlackRock MuniYield Pennsylvania Quality Funds (MPA) (the Fund) investment objective is to provide shareholders with as high a level of current income exempt from U.S. federal and Pennsylvania income taxes as is consistent with its investment policies and prudent investment management. The Fund seeks to achieve its investment objective by investing at least 80% of its assets in municipal obligations exempt from U.S. federal income taxes (except that the interest may be subject to the U.S. federal alternative minimum tax) and Pennsylvania income taxes. Under normal market conditions, the Fund invests primarily in long-term municipal obligations that are investment grade quality, or are considered by the Funds investment adviser to be of comparable quality, at the time of investment. The Fund may invest up to 20% of its managed assets in securities that are rated below investment grade, or are considered by the Funds investment adviser to be of comparable quality, at the time of purchase. The Fund may invest directly in securities or synthetically through the use of derivatives.

No assurance can be given that the Funds investment objective will be achieved.

Fund Information

Symbol on New York Stock Exchange	MPA
Initial Offering Date	October 30, 1992
Yield on Closing Market Price as of July 31, 2021
($16.23) (a)	4.07%
Tax Equivalent Yield (b)	7.25%
Current Monthly Distribution per Common Share (c)	$0.0550
Current Annualized Distribution per Common Share (c)	$0.6600
Leverage as of July 31, 2021 (d)	36%

(a) Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance is not an indication of future results.

(b) Tax equivalent yield assumes the maximum marginal U.S. federal and state tax rate of 43.87%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields.

Market Price and Net Asset Value Per Share Summary

	07/31/21	07/31/20		High	Low
Closing Market Price	$ 16.23	$ 14.09	15.19 %	$ 16.25	$ 13.60
Net Asset Value	16.64	16.09	3.42	16.66	15.66

TOTAL RETURN BASED ON A $10,000 INVESTMENT

(a) Represents the Funds closing market price on the NYSE and reflects the reinvestment of dividends and/or distributions at actual reinvestment prices.

(b) A broad, market value-weighted index that seeks to measure the performance of the U.S. municipal bond market.

F U N D S U M M A R Y 15

Fund Summary as of July 31, 2021 (continued) BlackRock MuniYield Pennsylvania Quality Fund (MPA)

Performance Summary for the Period Ended July 31, 2021

Returns for the period ended July 31, 2021 were as follows:

1 Year	5 Years	10 Years
Fund at NAV (a)(b)	8.09 %	4.65 %	6.59 %
Fund at Market
Price (a)(b)	20.40	5.00	7.08
Lipper Pennsylvania Municipal Debt Funds at
NAV (c)	7.66	4.18	6.12
Lipper Pennsylvania Municipal Debt Funds at Market Price (c)	15.18	4.60	6.84
S&P ® Municipal Bond Index	3.47	3.34	4.29

(a) All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices. Performance results reflect the Funds use of leverage.

(b) The Funds discount to NAV narrowed during the period, which accounts for the difference between performance based on market price and performance based on NAV.

(c) Average return. Returns reflect reinvestment of dividends and/or distributions at NAV on the ex-dividend date as calculated by Lipper.

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Past performance is not an indication of future results.

More information about the Funds historical performance can be found in the Closed End Funds section of blackrock.com .

The following discussion relates to the Funds absolute performance based on NAV:

Despite rising yields (and falling prices) for U.S. Treasuries, municipal bonds produced healthy gains in the past 12 months. Tax-exempt bonds continued to rally off of their pandemic-driven lows due to the release of multiple coronavirus vaccines, better-than-expected growth, improving municipal finances and robust investor demand. The prospect of substantial fiscal stimulus and higher taxes were additional tailwinds for the market. These factors led to a decline in yield spreads versus U.S. Treasuries, fueling positive returns for municipal debt. Pennsylvania outperformed the broader national market in the period, as fundamentals strengthened due in large part to the American Rescue Plan and the fact that revenues came in higher than originally projected in the early days of the pandemic.

The Fund benefited from its positions in the education and state tax-backed sectors. Puerto Rico was a particularly strong contributor in the latter category. Positions in lower-rated issues, especially in the BBB and non-rated categories, outpaced higher-rated securities. This trend was partially a reflection of federal aid packages that supported the financial system and helped municipalities better navigate the pandemic.

Reinvestment risk remained a headwind since the proceeds from bonds that matured or were called needed to be reinvested at lower yields compared to those issued when yields were higher.

16 2 0 2 1 B L A C K R O C K A N N U A L R E P O R T T O S H A R E H O L D E R S

Fund Summary as of July 31, 2021 (continued) BlackRock MuniYield Pennsylvania Quality Fund (MPA)

Overview of the Funds Total Investments

SECTOR ALLOCATION

Sector (a)(b) — Health	27 %	19 %
County/City/Special District/School District	18	18
Education	18	24
Transportation	11	12
State	10	12
Utilities	10	6
Tobacco	3	3
Housing	2	4
Corporate	1	2

CALL/MATURITY SCHEDULE

Calendar Year Ended December 31, (a)(c)
2021	2 %
2022	4
2023	2
2024	6
2025	9

CREDIT QUALITY ALLOCATION

Credit Rating (a)(d) — AAA/Aaa		3 %
AA/Aa	49	46
A	29	27
BBB/Baa	6	8
BB/Ba	3	3
B	1	1
CCC/Caa	1
N/R (f)	11	12

(a) Excludes short-term securities.

(e) Rounds to less than 1% of total investments.

(f) The investment adviser evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment adviser has deemed certain of these unrated securities as investment grade quality. As of July 31, 2021 and July 31, 2020, the market value of unrated securities deemed by the investment adviser to be investment grade represents 2% and 2%, respectively, of the Funds total investments.

F U N D S U M M A R Y 17

Schedule of Investments July 31, 2021 BlackRock MuniHoldings California Quality Fund, Inc. (MUC) (Percentages shown are based on Net Assets)

Security	Par (000)	Value
Municipal Bonds
California 103.3%
Corporate 0.3%
California Municipal Finance Authority, RB, Series A, AMT, 4.00%, 07/15/29	$ 1,920	$ 2,238,336
County/City/Special District/School District 37.8%
California Municipal Finance Authority, RB, 5.00%, 06/01/43	2,000	2,505,900
California Statewide Communities Development Authority, SAB
Series B, 4.00%, 09/02/40	605	660,448
Series B, 4.00%, 09/02/50	735	797,137
Series C, 4.00%, 09/02/40	2,160	2,362,565
Series C, 4.00%, 09/02/50	1,550	1,679,285
California Statewide Communities Development Authority, SAB, S/F Housing
5.00%, 09/02/39	535	665,738
5.00%, 09/02/40	400	492,600
5.00%, 09/02/44	615	756,013
5.00%, 09/02/49	900	1,090,017
4.00%, 09/02/50	320	355,258
5.00%, 09/02/50	320	388,157
Series C, 5.00%, 09/02/44	130	159,808
Series C, 5.00%, 09/02/49	640	774,995
California Statewide Communities Development Authority, ST
4.00%, 09/01/41	295	342,312
4.00%, 09/01/51	565	643,558
Centinela Valley Union High School District, GO, Series A, 5.75%, 08/01/21 (a)	9,120	9,120,000
Chabot-Las Positas Community College District, GO, Series A,
4.00%, 08/01/47	1,500	1,726,455
Chaffey Joint Union High School District, GO, CAB (b)
Series C, 0.00%, 08/01/32	250	189,768
Series C, 0.00%, 08/01/33	500	363,265
Series C, 0.00%, 08/01/34	510	354,430
Series C, 0.00%, 08/01/35	545	362,403
Series C, 0.00%, 08/01/36	500	317,720
Series C, 0.00%, 08/01/37	650	394,700
Series C, 0.00%, 08/01/38	625	363,150
Series C, 0.00%, 08/01/39	750	416,348
Series C, 0.00%, 08/01/40	1,855	984,448
Series C, 0.00%, 08/01/41	305	154,760
Series C, 0.00%, 02/01/42	350	173,453
ChiNo.Valley Unified School District, GO, Series B, 5.00%, 08/01/55	1,285	1,638,465
City of Dixon California, ST, 4.00%, 09/01/45	535	616,373
City of Roseville California, ST, 4.00%, 09/01/50	365	413,439
City of Sacramento California Transient Occupancy Tax Revenue, RB, Series A,
5.00%, 06/01/43	1,230	1,477,906
Coronado Community Development Agency Successor Agency, Refunding TA, Series A,
5.00%, 09/01/33	1,785	2,093,091
County of Santa Clara California, GO, Series B, 4.00%, 08/01/43	10,225	10,581,034
El Dorado Irrigation District, Refunding RB, Series A, (AGM), 5.25%, 03/01/24 (a)	10,000	11,316,300
Elk Grove Unified School District, GO, 4.00%, 08/01/46	10,000	11,385,500

Security	Par (000)	Value
County/City/Special District/School District (continued)
Fremont Union High School District, Refunding GO, 4.00%, 08/01/40	$ 2,500	$ 2,766,250
Garden Grove Unified School District, GO, Series C, 5.25%, 08/01/23 (a)	5,500	6,066,280
Gavilan Joint Community College District, GO (a)
Series D, 5.50%, 08/01/21	2,170	2,170,000
Series D, 5.75%, 08/01/21	8,400	8,400,000
Glendale Community College District, GO, Series A, 4.00%, 08/01/46	8,000	9,366,800
Hayward Unified School District, GO, Series A, (BAM), 4.00%, 08/01/48	2,000	2,315,500
Kern Community College District, GO (a)
Series C, 5.25%, 11/01/23	5,715	6,368,510
Series C, 5.75%, 11/01/23	12,085	13,602,272
Los Alamitos Unified School District, Refunding GO, 5.25%, 08/01/23	3,700	4,080,952
Los Angeles County Facilities, Inc., RB, Series A, 5.00%, 12/01/51	18,270	22,853,212
Los Angeles County Metropolitan Transportation Authority, Refunding RB, Series A,
5.00%, 07/01/44	2,000	2,547,560
Los Angeles County Public Works Financing Authority, Refunding RB, Series D,
5.00%, 12/01/45	1,430	1,679,978
Mount San Jacinto Community College District, GO, Series A, 5.00%, 08/01/35	3,565	4,202,458
Natomas Unified School District, GO, (BAM), 4.00%, 08/01/42	5,000	5,663,400
Orange County Community Facilities District, ST 4.00%, 08/15/40	345	398,082
4.00%, 08/15/50	320	365,795
Rio Elementary School District, GO, Series A, (AGM), 5.25%, 08/15/25 (a)	5,865	7,019,291
Riverside County Public Financing Authority, Refunding TA, Series A, (BAM),
4.00%, 10/01/40	4,045	4,660,811
San Benito High School District, GO, 4.00%, 08/01/48	5,000	5,760,050
San Bernardino County Transportation Authority, RB, Series A, 5.25%, 03/01/40	4,545	5,114,625
San Diego Unified School District, GO, Series B, 3.25%, 07/01/48	6,000	6,546,720
San Diego Unified School District, GO, CAB (b)
Series K-2, 0.00%, 07/01/38	2,755	1,641,236
Series K-2, 0.00%, 07/01/39	3,340	1,904,401
Series K-2, 0.00%, 07/01/40	4,285	2,339,096
San Jose Financing Authority, RB, 5.75%, 05/01/42	4,500	4,517,010
San Jose Financing Authority, Refunding RB, Series A, 5.00%, 06/01/23 (a)	5,800	6,316,084
San Luis Obispo County Community College District, Refunding GO, Series B, 4.00%, 08/01/43	3,555	4,223,909
San Marcos Redevelopment Agency Successor Agency, Refunding TA
Series A, 5.00%, 10/01/32	1,700	2,011,253
Series A, 5.00%, 10/01/33	1,125	1,329,952
Santa Clara Unified School District, GO, 4.00%, 07/01/48	10,000	11,430,400
Santa Clarita Community College District, Refunding GO, 4.00%, 08/01/46	10,000	11,494,000
Washington Township Health Care District, GO, Series B, 5.50%, 08/01/38	1,625	1,864,980

18 2 0 2 1 B L A C K R O C K A N N U A L R E P O R T T O S H A R E H O L D E R S

Schedule of Investments (continued) July 31, 2021 BlackRock MuniHoldings California Quality Fund, Inc. (MUC) (Percentages shown are based on Net Assets)

Security	Par (000)	Value
County/City/Special District/School District (continued)
West Contra Costa Unified School District, GO (a)
Series A, (AGM), 5.25%, 08/01/21	$ 5,390	$ 5,390,000
Series A, 5.50%, 08/01/23	2,500	2,769,850
Series B, 5.50%, 08/01/23	3,195	3,539,868
		250,837,384
Education 10.5%
California Educational Facilities Authority, RB, Series V-1, 5.00%, 05/01/49	5,800	9,394,550
California Enterprise Development Authority, RB
Series A, 5.00%, 08/01/50	650	797,290
Series A, 5.00%, 08/01/57	600	735,210
California Enterprise Development Authority, Refunding RB (c)
4.00%, 06/01/51	625	711,488
4.00%, 06/01/61	345	388,970
California Municipal Finance Authority, RB
6.00%, 01/01/22 (a)	2,750	2,817,072
Series A, 5.50%, 08/01/34 (c)	250	271,180
Series A, 5.00%, 10/01/39 (c)	285	327,573
Series A, 5.00%, 10/01/49 (c)	480	539,731
Series A, 5.00%, 10/01/57 (c)	940	1,046,981
California Municipal Finance Authority, Refunding RB
5.00%, 08/01/39	1,105	1,261,678
Series B, 5.00%, 01/01/42	1,750	2,072,648
California School Finance Authority,
RB (c) 5.00%, 06/01/40	355	404,654
5.00%, 06/01/50	555	620,046
5.00%, 06/01/59	885	980,173
Series A, 5.00%, 07/01/49	850	1,050,643
Series A, 5.00%, 06/01/58	4,135	4,557,089
Series A, 5.00%, 07/01/59	1,380	1,576,277
Series A, 4.00%, 06/01/61	850	901,485
Series B, 4.00%, 07/01/45	560	560,465
Hastings Campus Housing Finance Authority, RB
Series A, 5.00%, 07/01/45	785	956,012
Series A, 5.00%, 07/01/61	4,720	5,625,532
University of California, RB, Series M, 5.00%, 05/15/47	15,000	18,478,800
University of California, Refunding RB
Series AO, 5.00%, 05/15/40	5,430	6,353,914
Series AZ, 4.00%, 05/15/48	6,000	7,054,860
		69,484,321
Health 13.9%
California Health Facilities Financing Authority, RB 4.00%, 11/15/47	825	947,653
Series A, 5.00%, 11/15/35	1,960	2,451,686
Series A, 4.00%, 11/15/42	450	524,232
California Health Facilities Financing Authority, Refunding RB
Series A, 5.00%, 10/01/24 (a)	4,745	5,464,057
Series A, 5.00%, 07/01/37	10,000	10,880,500
Series A, 5.00%, 10/01/38	6,225	7,098,554
Series A, 5.25%, 11/01/41	8,000	8,101,200
Series B, 5.00%, 11/15/26 (a)	3,385	4,191,205
Series B, 5.00%, 11/15/46	4,910	5,946,648
California Municipal Finance Authority, Refunding RB
Series A, 5.00%, 02/01/37	3,110	3,785,368
Series A, 5.00%, 11/01/39 (c)	250	289,803
Series A, 5.00%, 02/01/42	5,250	6,372,607

Security	Par (000)	Value
Health (continued)
California Municipal Finance Authority, Refunding RB (continued)
Series A, 5.00%, 11/01/49 (c)	$ 280	$ 319,329
California Public Finance Authority, RB (c) 5.00%, 11/15/36	150	177,785
5.00%, 11/15/46	150	174,441
5.00%, 11/15/51	150	173,802
5.00%, 11/15/56	150	173,168
California Statewide Communities Development Authority, RB
4.00%, 08/01/45	2,500	2,621,975
4.00%, 07/01/48	2,220	2,475,522
California Statewide Communities Development Authority, Refunding RB
5.00%, 12/01/21 (a)	6,235	6,335,633
4.00%, 04/01/42	3,005	3,325,183
4.00%, 04/01/47	2,655	2,895,915
5.00%, 04/01/47	2,995	3,497,351
Series A, 5.00%, 08/15/51	1,635	1,961,199
Series A, 5.00%, 12/01/53	1,000	1,233,430
Series A, 4.00%, 12/01/57	3,250	3,428,522
Series A, 5.00%, 12/01/57	1,750	2,164,382
Regents of the University of California Medical Center Pooled Revenue, Refunding RB, Series L,
5.00%, 05/15/47	4,000	4,790,360
		91,801,510
Housing 6.6%
California Community Housing Agency, RB, M/F Housing (c)
4.00%, 08/01/46	860	962,804
3.00%, 08/01/56	1,560	1,628,609
Series A, 5.00%, 04/01/49	3,840	4,400,909
Series A, 4.00%, 02/01/56	4,615	5,047,420
California Housing Finance, RB, M/F Housing
Series 2, Class A, 4.00%, 03/20/33	4,030	4,793,753
Series 2021-1, Class A, 3.50%, 11/20/35	2,344	2,792,067
Series A, 4.25%, 01/15/35	933	1,156,256
CSCDA Community Improvement Authority, RB, M/F Housing (c)
2.65%, 12/01/46	1,825	1,887,561
4.00%, 07/01/56	1,490	1,627,214
4.00%, 08/01/56	1,905	2,126,133
3.00%, 12/01/56	1,500	1,557,390
Series A, 5.00%, 07/01/51	1,325	1,571,848
Series A-2, 4.00%, 09/01/56	2,700	3,022,191
Freddie Mac Multifamily ML Certificates, RB, M/F Housing, Series CA, Class A,
3.35%, 11/25/33	9,634	11,030,475
		43,604,630
State 1.5%
California State Public Works Board, RB, Series I, 5.50%, 11/01/33	2,015	2,249,526
California State Public Works Board, Refunding RB, Series C, 5.75%, 10/01/31	1,205	1,216,001
City of Roseville California, ST, 4.00%, 09/01/45	100	113,517
State of California, Refunding GO, 5.00%, 08/01/45	5,690	6,641,539
		10,220,583

S C H E D U L E O F I N V E S T M E N T S 19

Schedule of Investments (continued) July 31, 2021 BlackRock MuniHoldings California Quality Fund, Inc. (MUC) (Percentages shown are based on Net Assets)

Security	Par (000)	Value
Tobacco 7.3%
California County Tobacco Securitization Agency, Refunding RB
4.00%, 06/01/49	$ 320	$ 380,874
Series A, 4.00%, 06/01/49	465	554,833
California County Tobacco Securitization Agency, Refunding RB, CAB (b)
0.00%, 06/01/55	3,185	804,690
Series B-2, Subordinate, 0.00%, 06/01/55	4,780	974,260
Golden State Tobacco Securitization Corp., Refunding RB
Series A, (AGM-CR SAP), 5.00%, 06/01/40	9,765	11,380,717
Series A-1, 5.00%, 06/01/31	7,560	9,505,566
Series A-1, 3.50%, 06/01/36	6,930	7,057,304
Series A-1, 5.00%, 06/01/47	11,350	11,731,474
Series A-2, 5.00%, 06/01/47	1,645	1,700,288
Tobacco Securitization Authority of Southern California, Refunding RB, 5.00%, 06/01/48	1,130	1,385,391
Tobacco Securitization Authority of Southern California, Refunding RB, CAB, 0.00%, 06/01/54 (b)	13,750	2,736,250
		48,211,647
Transportation 15.4%
Alameda Corridor Transportation Authority, Refunding RB, Series B, Sub Lien,
5.00%, 10/01/35	1,500	1,793,025
Bay Area Toll Authority, Refunding RB, 4.00%, 04/01/42	5,000	5,777,850
California Municipal Finance Authority, ARB, AMT, Senior Lien, 4.00%, 12/31/47	13,915	15,704,052
City of Los Angeles Department of Airports, ARB
Series A, AMT, 5.00%, 05/15/40	3,830	4,433,148
Series D, AMT, 5.00%, 05/15/35	2,000	2,322,440
Series D, AMT, 5.00%, 05/15/36	1,500	1,740,630
Sub-Series A, AMT, 5.00%, 05/15/47	6,725	8,124,809
City of Los Angeles Department of Airports, Refunding ARB, 5.00%, 05/15/43	7,000	9,107,840
County of Sacramento California Airport System Revenue, Refunding RB
Series A, 5.00%, 07/01/41	2,500	3,013,550
Sub-Series B, 5.00%, 07/01/41	1,250	1,514,700
Norman Y Mineta San Jose International Airport SJC, Refunding RB
Series A, AMT, 5.00%, 03/01/41	3,075	3,701,377
Series A, AMT, 5.00%, 03/01/47	11,770	14,027,486
Port of Los Angeles, Refunding ARB, Series A, AMT, 5.00%, 08/01/44	500	563,170
San Diego County Regional Airport Authority, Refunding ARB, Series A, 5.00%, 07/01/42	4,275	5,293,903
San Francisco City & County Airport Comm-San Francisco
International Airport, Refunding ARB
Series A, AMT, 5.00%, 05/01/29	6,435	6,660,354
Series A, AMT, 5.00%, 05/01/44	5,000	6,236,250
Series A, AMT, 5.00%, 05/01/47	5,000	6,020,550
Series B, AMT, 5.00%, 05/01/41	5,000	5,932,850
		101,967,984
Utilities 10.0%
City of Riverside California Electric Revenue, Refunding RB, Series A, 5.00%, 10/01/43	3,500	4,463,060

Security	Par (000)	Value
Utilities (continued)
City of San Francisco California Public Utilities Commission Water Revenue, RB, Series A,
5.00%, 11/01/39	$ 5,245	$ 6,130,933
East Bay Municipal Utility District Water System Revenue, RB
Series A, 4.00%, 06/01/45	4,585	5,331,209
Series A, 5.00%, 06/01/49	11,190	14,359,344
Los Angeles Department of Water, RB, Series A, 5.00%, 07/01/42	8,825	10,840,718
San Diego Public Facilities Financing Authority, Refunding RB, Series A, Subordinate,
5.00%, 08/01/43	9,655	12,134,597
San Francisco City & County Public Utilities Commission Wastewater Revenue, Refunding RB,
Series B, 4.00%, 10/01/42	3,000	3,124,590
San Juan Water District, Refunding RB, Series A, 5.25%, 02/01/33	7,325	7,512,300
San Mateo Foster City Public Financing Authority, RB, 4.00%, 08/01/44	2,000	2,398,000
		66,294,751
Total Municipal Bonds in California		684,661,146
Puerto Rico 4.7%
State 4.7%
Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB
Series A-1, Restructured, 4.75%, 07/01/53	8,317	9,567,461
Series A-1, Restructured, 5.00%, 07/01/58	11,280	13,142,667
Series A-2, Restructured, 4.33%, 07/01/40	2,677	3,040,671
Series A-2, Restructured, 4.78%, 07/01/58	553	635,839
Series B-1, Restructured, 4.75%, 07/01/53	848	975,497
Series B-2, Restructured, 4.78%, 07/01/58	822	945,637
Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB, CAB, Series A-1, Restructured, 0.00%, 07/01/46 (b)	8,705	2,908,166
Total Municipal Bonds in Puerto Rico		31,215,938
Total Municipal Bonds 108.0% (Cost: $642,530,857)		715,877,084
Municipal Bonds Transferred to Tender Option Bond Trusts (d)
California 48.9%
County/City/Special District/School District 21.5%
Foothill-De Anza Community College District, GO, Series C,
5.00%, 08/01/40	40,000	40,000,000
Palomar Community College District, GO, Series C, 5.00%, 08/01/25 (a)	15,140	17,972,543
Riverside County Public Financing Authority, RB, 5.25%, 11/01/45	10,000	11,869,999
Sacramento Area Flood Control Agency, Refunding SAB, Series A, 5.00%, 10/01/43	9,990	12,068,619
San Luis Obispo County Community College District, Refunding GO, Series A, 4.00%, 08/01/40	6,585	7,486,879
San Mateo County Community College District, GO, Series A, 5.00%, 09/01/25 (a)	17,615	20,971,001

20 2 0 2 1 B L A C K R O C K A N N U A L R E P O R T T O S H A R E H O L D E R S

Schedule of Investments (continued) July 31, 2021 BlackRock MuniHoldings California Quality Fund, Inc. (MUC) (Percentages shown are based on Net Assets)

Security	Par (000)	Value
County/City/Special District/School District (continued)
Southwestern Community College District, GO, Series D, 5.00%, 08/01/25 (a)	$ 10,820	$ 12,844,314
West Valley-Mission Community College District, GO, Series B, 4.00%, 08/01/40	17,000	19,336,650
		142,550,005
Education 3.6%
California State University, Refunding RB, Series A, 5.00%, 11/01/43	6,001	7,106,850
University of California, RB, Series AM, 5.25%, 05/15/44	10,210	11,593,710
University of California, Refunding RB, Series AF, 5.00%, 05/15/39	5,000	5,421,900
		24,122,460
Health 15.7%
California Health Facilities Financing Authority, RB
5.00%, 11/15/49 (e)	5,000	5,961,300
5.00%, 11/15/56	6,000	7,470,000
Series A, 5.00%, 08/15/23 (a)	14,520	15,969,241
Series B, 5.00%, 08/15/55	4,500	5,429,835
California Health Facilities Financing Authority, Refunding RB
Series A, 5.00%, 08/15/25 (a)	19,425	23,090,487
Series A, 4.00%, 10/01/47	4,997	5,670,401
Sub-Series A-2, 4.00%, 11/01/44	17,720	20,612,258
California Statewide Communities Development Authority, RB, Series A, 5.00%, 04/01/42	19,070	19,663,649
		103,867,171
Transportation 5.7%
Bay Area Toll Authority, Refunding RB, 4.00%, 04/01/49 (e)	10,005	11,451,823
City of Los Angeles Department of Airports, ARB
Series A, AMT, 5.00%, 05/15/40	5,500	6,366,140
Series B, AMT, 5.00%, 05/15/41	3,645	4,339,706
Series D, AMT, 5.00%, 05/15/41	13,332	15,422,777
		37,580,446
Utilities 2.4%
City of Los Angeles California Wastewater System Revenue, RB, Series A, 5.00%, 06/01/44	13,790	16,081,484
Total Municipal Bonds in California		324,201,566
Total Municipal Bonds Transferred to Tender Option Bond Trusts 48.9% (Cost:
$297,728,507)		324,201,566
Total Long-Term Investments 156.9% (Cost: $940,259,364)		1,040,078,650

Security		Value
Short-Term Securities
Money Market Funds 2.9%
BlackRock Liquidity Funds California Money Fund, Institutional Class, 0.01% (f)(g)	19,379,575	$ 19,391,202
Total Short-Term Securities 2.9% (Cost: $19,383,437)		19,391,202
Total Investments 159.8% (Cost: $959,642,801)		1,059,469,852
Other Assets Less Liabilities 1.5%		9,610,086
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable
(23.0)%		(152,188,225	)
VMTP Shares at Liquidation Value (38.3)%		(254,000,000	)
Net Assets Applicable to Common Shares 100.0%		$ 662,891,713

(a) U.S. 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.

(b) Zero-coupon bond.

(c) Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

(d) Represent bonds transferred to a TOB Trust in exchange of cash and residual certificates received by the Fund. These bonds serve as collateral in a secured borrowing. See Note 4 of the Notes to Financial Statements for details.

(e) All or a portion of the security is subject to a recourse agreement. The aggregate maximum potential amount the Fund could ultimately be required to pay under the agreements, which expire between April 1, 2025 to May 15, 2025, is $10,754,131. See Note 4 of the Notes to Financial Statements for details.

(f) Affiliate of the Fund.

(g) Annualized 7-day yield as of period end.

For Fund compliance purposes, the Funds sector classifications refer to 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 the investment adviser. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.

S C H E D U L E O F I N V E S T M E N T S 21

Schedule of Investments (continued) July 31, 2021 BlackRock MuniHoldings California Quality Fund, Inc. (MUC)

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended July 31, 2021 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

Affiliated Issuer	Value at 07/31/20	Purchases at Cost		Proceeds from Sales	Net Realized Gain (Loss)	Change in Unrealized Appreciation (Depreciation)	Value at 07/31/21		Income	Capital Gain Distributions from Underlying Funds
BlackRock Liquidity Funds California Money Fund, Institutional Class	$ 1,871,730	$ 17,508,920	(a)	$	$ 2,710	$ 7,842	$ 19,391,202	19,379,575	$ 2,216	$

(a) Represents net amount purchased (sold).

Derivative Financial Instruments Categorized by Risk Exposure

For the year ended July 31, 2021, the effect of derivative financial instruments in the Statements of Operations was as follows:

	Commodity Contracts	Credit Contracts	Equity Contracts	Foreign Currency Exchange Contracts	Interest Rate Contracts	Other Contracts	Total
Net Realized Gain (Loss) from
Futures contracts	$	$	$	$	$ 1,456,642	$	$ 1,456,642

Average Quarterly Balances of Outstanding Derivative Financial Instruments

Futures contracts
Average notional value of contracts short	$ 16,960,281

For more information about the Funds investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Funds policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Funds financial instruments categorized in the fair value hierarchy. The breakdown of the Funds financial instruments into major categories is disclosed in the Schedule of Investments above.

	Level 1	Level 2	Level 3	Total
Assets
Investments
Long-Term Investments
Municipal Bonds	$	$ 715,877,084	$	$ 715,877,084
Municipal Bonds Transferred to Tender Option Bond Trusts		324,201,566		324,201,566
Short-Term Securities
Money Market Funds	19,391,202			19,391,202
	$ 19,391,202	$ 1,040,078,650	$	$ 1,059,469,852

The Fund may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial statement purposes. As of period end, such assets and/or liabilities are categorized within the fair value hierarchy as follows:

	Level 1	Level 2		Level 3	Total
Liabilities
TOB Trust Certificates	$	$ (152,144,550	)	$	$ (152,144,550	)
VMTP Shares at Liquidation Value		(254,000,000	)		(254,000,000	)
	$	$ (406,144,550	)	$	$ (406,144,550	)

See notes to financial statements.

22 2 0 2 1 B L A C K R O C K A N N U A L R E P O R T T O S H A R E H O L D E R S

Schedule of Investments July 31, 2021 BlackRock MuniHoldings New Jersey Quality Fund, Inc. (MUJ) (Percentages shown are based on Net Assets)

Security	Par (000)	Value
Municipal Bonds
Guam 0.2%
Utilities 0.2%
Guam Government Waterworks Authority, RB, Series A, 5.00%, 01/01/50	$ 1,015	$ 1,255,281
New Jersey 119.2%
Corporate 1.5%
New Jersey Economic Development Authority, RB (a)
Series A, (NPFGC), 5.25%, 07/01/25	535	637,634
Series A, (NPFGC), 5.25%, 07/01/26	1,415	1,746,195
New Jersey Economic Development Authority, Refunding RB
3.38%, 04/01/38	2,230	2,334,342
3.50%, 04/01/42	1,675	1,752,016
Series A, AMT, 2.20%, 10/01/39 (b)	850	908,472
		7,378,659
County/City/Special District/School District 10.3%
Casino Reinvestment Development Authority, Inc., Refunding RB
5.25%, 11/01/39	11,130	12,460,146
5.25%, 11/01/44	3,755	4,158,287
City of Bayonne New Jersey, Refunding GO, (BAM SAW), 5.00%, 07/01/26 (c)	3,340	4,088,995
County of Essex New Jersey, GO, Series B, (SCH BD RES FD), 3.00%, 09/01/46	1,700	1,771,672
Essex County Improvement Authority, RB, (GTD), 4.00%, 11/01/49	575	654,833
Essex County Improvement Authority, Refunding RB
(NPFGC GTD), 5.50%, 10/01/27	250	324,848
(NPFGC GTD), 5.50%, 10/01/28	4,840	6,479,502
Ewing Township Board of Education, GO 4.00%, 07/15/38	1,470	1,742,567
4.00%, 07/15/39	1,330	1,573,829
Hudson County Improvement Authority, RB, 4.00%, 10/01/51	2,800	3,347,344
Hudson County Improvement Authority, RB, CAB, Series A-1, (NPFGC
GTD), 0.00%, 12/15/32 (d)	1,000	823,060
Mercer County Refunding GO, 2.38%, 02/15/30	1,640	1,784,468
New Jersey Economic Development Authority, RB 5.00%, 06/15/23 (c)	3,065	3,344,405
Series KK, 5.00%, 09/01/22 (c)	325	342,193
Series QQQ, 4.00%, 06/15/50	2,070	2,439,785
Newark Board of Education Refunding GO
(BAM SCH BD RES FD), 3.00%, 07/15/38	700	768,131
(BAM SCH BD RES FD), 3.00%, 07/15/39	120	131,474
(BAM SCH BD RES FD), 3.00%, 07/15/41	1,500	1,638,030
Newark Board of Education, Refunding GO, Sustainability Bonds, (BAM), 3.00%, 07/15/42	485	527,995
Township of Irvington New Jersey, Refunding GO, Series A, (AGM), 5.00%, 07/15/33	1,175	1,325,271
Union County Utilities Authority, Refunding RB, Series A, AMT, (GTD), 5.25%, 12/01/31	650	660,263
		50,387,098
Education 16.8%
Atlantic County Improvement Authority, RB, Series A, (AGM), 4.00%, 07/01/46	1,300	1,429,649
Gloucester County Improvement Authority, RB 5.00%, 07/01/44	1,985	2,294,839
(BAM), 4.00%, 07/01/46	465	547,258

Security	Par (000)	Value
Education (continued)
Gloucester County Improvement Authority, RB (continued)
(BAM), 4.00%, 07/01/51	$ 645	$ 756,940
Series A, 5.00%, 07/01/31	1,950	2,272,939
Series A, 5.00%, 07/01/32	1,775	2,067,396
Series A, 5.00%, 07/01/33	2,250	2,618,775
Series A, 5.00%, 07/01/34	1,200	1,395,744
New Jersey Economic Development Authority, RB
Series A, 5.00%, 01/01/35	2,000	2,147,020
Series A, 5.00%, 07/01/38	190	227,033
Series A, 5.00%, 07/01/47	795	853,345
Series A, 5.00%, 01/01/48	2,000	2,115,380
Series A, 5.00%, 07/01/50	495	579,828
Series A, 5.25%, 11/01/54 (e)	2,235	2,419,767
Series WW, 5.25%, 06/15/25 (c)	460	548,196
New Jersey Economic Development Authority, Refunding RB
(AGM), 5.00%, 06/01/37	3,990	4,803,481
(AGM), 5.00%, 06/01/42	810	968,485
New Jersey Educational Facilities Authority, RB
Series A, 5.00%, 07/01/45	1,345	1,717,161
Series C, (AGM), 3.25%, 07/01/49	585	626,593
Series C, (AGM), 4.00%, 07/01/50	495	565,300
New Jersey Educational Facilities Authority, Refunding RB
Series A, (BAM), 5.00%, 07/01/28	1,135	1,353,068
Series A, 5.00%, 07/01/39	15,555	17,453,488
Series A, 5.00%, 07/01/44	3,540	3,961,862
Series A, 4.00%, 07/01/47	1,145	1,305,163
Series D, 5.00%, 07/01/38	500	541,810
Series D, 5.00%, 07/01/43	600	648,504
New Jersey Higher Education Student Assistance Authority Refunding RB, Series B, AMT,
3.00%, 12/01/32	3,435	3,657,382
New Jersey Higher Education Student Assistance Authority, RB
Series 1A, AMT, 4.00%, 12/01/28	385	400,643
Series 1A, AMT, 4.50%, 12/01/28	1,015	1,062,928
Series 1A, AMT, 4.00%, 12/01/29	255	265,312
Series 1A, AMT, 4.50%, 12/01/29	1,280	1,340,186
Series 1A, AMT, 4.63%, 12/01/30	1,255	1,315,842
Series 1A, AMT, 4.00%, 12/01/31	410	426,425
Series 1A, AMT, 4.13%, 12/01/35	250	257,928
Series 1A-1, AMT, 4.00%, 12/01/29	2,185	2,334,651
Series 1A-1, AMT, 4.25%, 12/01/32	790	847,472
Series 1A-1, AMT, 4.50%, 12/01/36	690	735,098
Sub-Series C, AMT, 4.00%, 12/01/48	1,760	1,934,874
New Jersey Higher Education Student Assistance Authority, Refunding RB
1st Series, AMT, 5.50%, 12/01/26	585	592,792
Series 1, AMT, 5.38%, 12/01/24	485	491,266
New Jersey Institute of Technology, RB, Series A, 5.00%, 07/01/45	7,500	8,688,075
Rutgers The State University of New Jersey, Refunding RB, Series L, 5.00%, 05/01/23 (c)	1,565	1,698,948
		82,268,846
Health 7.7%
Camden County Improvement Authority, Refunding RB, 5.00%, 02/15/33	2,000	2,216,720

S C H E D U L E O F I N V E S T M E N T S 23

Schedule of Investments (continued) July 31, 2021 BlackRock MuniHoldings New Jersey Quality Fund, Inc. (MUJ) (Percentages shown are based on Net Assets)

Security	Par (000)	Value
Health (continued)
Middlesex County Improvement Authority, RB, AMT, (AMBAC), 5.50%, 09/01/30	$ 490	$ 491,573
New Jersey Economic Development Authority, Refunding RB
5.00%, 01/01/34	675	806,719
5.00%, 01/01/39	675	804,452
New Jersey Health Care Facilities Financing Authority, RB
5.00%, 07/01/42	2,270	2,782,044
4.00%, 07/01/44	2,175	2,548,969
Series A, 5.50%, 07/01/43	7,105	7,776,778
New Jersey Health Care Facilities Financing Authority, Refunding RB
5.00%, 07/01/25	1,000	1,044,390
5.00%, 07/01/26	3,720	3,885,019
5.00%, 07/01/28	3,000	3,335,760
5.00%, 07/01/29	715	795,044
5.00%, 07/01/34	1,330	1,607,544
5.00%, 07/01/39	1,825	2,196,150
4.00%, 07/01/41	1,600	1,761,488
Series A, 4.00%, 07/01/43	1,865	2,115,563
Series A, 5.00%, 07/01/43	3,080	3,701,914
		37,870,127
Housing 6.9%
New Jersey Housing & Mortgage Finance Agency, RB, Series A, (AGM),
5.00%, 05/01/27	2,260	2,266,238
New Jersey Housing & Mortgage Finance Agency, RB, M/F Housing, Series A,
4.55%, 11/01/43	4,710	4,738,731
New Jersey Housing & Mortgage Finance Agency, RB, S/F Housing, Series B, 4.50%, 10/01/21 (c)	4,855	4,889,519
New Jersey Housing & Mortgage Finance Agency, RB, Social Bonds (f)
Series H, 2.15%, 10/01/41	1,710	1,703,399
Series H, 2.30%, 10/01/46	1,285	1,279,577
Series H, 2.40%, 04/01/52	1,285	1,279,140
New Jersey Housing & Mortgage Finance Agency, Refunding RB
Series 2, AMT, 4.60%, 11/01/38	3,120	3,235,503
Series 2, AMT, 4.75%, 11/01/46	3,795	3,906,270
New Jersey Housing & Mortgage Finance Agency, Refunding RB, M/F Housing
Series A, (HUD SECT 8), 2.45%, 11/01/45	475	475,988
Series A, 4.00%, 11/01/48	370	404,684
Series A, (HUD SECT 8), 2.55%, 11/01/50	430	431,238
Series A, 4.10%, 11/01/53	220	239,811
Series A, (HUD SECT 8), 2.63%, 11/01/56	430	432,782
Series D, AMT, 4.25%, 11/01/37	490	532,855
Series D, AMT, 4.35%, 11/01/42	1,000	1,081,640
New Jersey Housing & Mortgage Finance Agency, Refunding RB, S/F Housing
Series A, 3.75%, 10/01/35	3,575	3,956,667
Series E, 2.25%, 10/01/40	1,615	1,642,229
Series E, 2.40%, 10/01/45	1,245	1,264,721
		33,760,992
State 33.5%
Garden State Preservation Trust, RB, CAB (d)
Series B, (AGM), 0.00%, 11/01/23	15,725	15,570,109
Series B, (AGM), 0.00%, 11/01/25	10,000	9,590,000
Garden State Preservation Trust, Refunding RB, Series C, (AGM), 5.25%, 11/01/21	7,705	7,798,616

Security	Par (000)	Value
State (continued)
New Jersey Economic Development Authority, RB 4.00%, 06/15/49	$ 2,930	$ 3,390,186
Series A, (NPFGC), 5.25%, 07/01/24	1,785	2,040,416
Series A, (NPFGC), 5.25%, 07/01/25	4,465	5,306,652
Series A, (NPFGC), 5.25%, 07/01/26	7,415	9,084,784
Series B, 5.00%, 06/15/43	1,235	1,527,300
Series EEE, 5.00%, 06/15/43	5,395	6,701,723
Series WW, 5.25%, 06/15/33	380	445,447
Series WW, 5.00%, 06/15/34	5,500	6,389,460
Series WW, 5.00%, 06/15/36	3,115	3,612,528
Series WW, 5.25%, 06/15/40	7,915	9,200,475
New Jersey Economic Development Authority, Refunding RB
5.00%, 06/15/24	5,000	5,195,350
5.00%, 06/15/26	1,250	1,298,800
5.00%, 06/15/28	2,430	2,510,579
5.00%, 06/15/29	3,195	3,319,637
4.00%, 07/01/46	2,770	3,187,882
Series N-1, (AMBAC), 5.50%, 09/01/26	800	991,240
Series N-1, (NPFGC), 5.50%, 09/01/27	1,000	1,274,500
Series NN, 5.00%, 03/01/29	5,000	5,372,150
Sub-Series A, 4.00%, 07/01/32	5,000	5,653,050
Sub-Series A, 5.00%, 07/01/33	3,875	4,617,799
Sub-Series A, 4.00%, 07/01/34	7,300	8,207,536
New Jersey Educational Facilities Authority, RB
Series A, 4.00%, 09/01/28	9,705	10,756,925
Series A, 5.00%, 09/01/33	5,370	6,089,311
New Jersey Sports & Exposition Authority, Refunding RB, (NPFGC), 5.50%, 03/01/22 (a)	4,200	4,329,990
South Jersey Port Corp., ARB
Series B, AMT, 5.00%, 01/01/42	3,000	3,566,400
Series B, AMT, 5.00%, 01/01/48	1,500	1,769,760
State of New Jersey, GO
2.00%, 06/01/32	1,900	1,972,238
2.00%, 06/01/37	3,225	3,227,741
Series A, 4.00%, 06/01/32	7,755	10,046,680
		164,045,264
Tobacco 5.4%
Tobacco Settlement Financing Corp., Refunding RB
Series A, 5.00%, 06/01/46	3,000	3,619,950
Series A, 5.25%, 06/01/46	1,960	2,406,488
Sub-Series B, 5.00%, 06/01/46	17,315	20,738,349
		26,764,787
Transportation 30.0%
New Brunswick Parking Authority, Refunding RB, Series B, (AGM MUN GOVT GTD),
3.00%, 09/01/39	2,500	2,636,925
New Jersey Economic Development Authority, RB
AMT, 5.13%, 01/01/34	2,290	2,514,237
AMT, 5.38%, 01/01/43	7,730	8,495,193
New Jersey Transportation Trust Fund Authority, RB
Series A, (NPFGC), 5.75%, 06/15/24	1,205	1,391,944
Series A, 5.00%, 06/15/30	2,250	2,684,813
Series A, 5.00%, 06/15/42	5,000	5,206,400
Series AA, 5.00%, 06/15/33	3,000	3,127,560
Series AA, 5.25%, 06/15/33	5,690	6,201,474
Series AA, 5.25%, 06/15/34	1,305	1,528,455
Series AA, 5.00%, 06/15/38	2,340	2,623,912
Series AA, 4.00%, 06/15/50	6,300	7,409,241
Series B, 5.00%, 06/15/33	1,340	1,684,996

24 2 0 2 1 B L A C K R O C K A N N U A L R E P O R T T O S H A R E H O L D E R S

Schedule of Investments (continued) July 31, 2021 BlackRock MuniHoldings New Jersey Quality Fund, Inc. (MUJ) (Percentages shown are based on Net Assets)

Security	Par (000)	Value
Transportation (continued)
New Jersey Transportation Trust Fund Authority, RB (continued)
Series BB, 4.00%, 06/15/50	$ 3,325	$ 3,814,074
Series D, 5.00%, 06/15/32	3,300	3,781,536
New Jersey Transportation Trust Fund Authority, RB, CAB (d)
Series A, 0.00%, 12/15/35	6,000	4,463,940
Series C, (AGM), 0.00%, 12/15/32	8,800	7,199,280
Series C, (AMBAC), 0.00%, 12/15/35	4,160	3,161,725
Series C, (AMBAC), 0.00%, 12/15/36	7,210	5,332,155
New Jersey Transportation Trust Fund Authority, Refunding RB
4.00%, 12/15/39	165	193,015
Series A, 5.00%, 06/15/26	400	482,824
Series A, 5.00%, 06/15/31	7,480	9,026,722
Series A, 5.00%, 06/15/32	750	1,001,108
Series A, 5.00%, 12/15/32	4,285	5,396,786
Series A, 4.00%, 06/15/34	1,950	2,380,580
Series A, 4.00%, 06/15/35	2,950	3,583,778
Series A, 5.00%, 12/15/35	1,095	1,369,265
New Jersey Turnpike Authority, RB
Series A1, 5.00%, 01/01/35	1,440	1,764,086
Series E, 5.00%, 01/01/45	8,000	9,144,240
New Jersey Turnpike Authority, Refunding RB
Series A, (AGM), 5.25%, 01/01/29	4,000	5,302,200
Series A, (BHAC-CR AGM), 5.25%, 01/01/29	500	662,775
Series A, (AGM), 5.25%, 01/01/30	4,000	5,427,880
Series B, 5.00%, 01/01/34	2,300	2,885,787
Series B, 5.00%, 01/01/40	5,740	7,168,399
Series G, 5.00%, 01/01/36	5,000	6,251,500
Series G, 4.00%, 01/01/43	3,320	3,842,601
Port Authority of New York & New Jersey, Refunding ARB, Consolidated, 206th Series, AMT,
5.00%, 11/15/47	3,475	4,244,643
South Jersey Transportation Authority, RB, Series A, 5.00%, 11/01/45	2,865	3,635,456
		147,021,505
Utilities 7.1%
Essex County Utilities Authority, Refunding RB, (AGC GTD), 4.13%, 04/01/22	2,000	2,004,740
New Jersey Infrastructure Bank, RB 2.00%, 09/01/42	1,320	1,326,653
2.00%, 09/01/43	915	919,694
2.25%, 09/01/50	2,245	2,269,470
Passaic Valley Sewerage Commission, Refunding RB
Series J, (AGM), 3.00%, 12/01/40	1,140	1,237,744
Series J, (AGM), 3.00%, 12/01/41	1,170	1,268,081
Series J, (AGM), 3.00%, 12/01/42	1,190	1,286,997
Series J, (AGM), 3.00%, 12/01/43	1,220	1,316,575
Series J, (AGM), 3.00%, 12/01/44	1,250	1,346,388
Series J, (AGM), 3.00%, 12/01/45	1,275	1,371,568
Rahway Valley Sewerage Authority, RB, CAB (d)
Series A, (NPFGC), 0.00%, 09/01/26	4,100	3,910,457
Series A, (NPFGC), 0.00%, 09/01/28	6,600	6,056,028

Security	Par (000)	Value
Utilities (continued)
Rahway Valley Sewerage Authority, RB, CAB (d) (continued)
Series A, (NPFGC), 0.00%, 09/01/29	$ 9,650	$ 8,626,521
Series A, (NPFGC), 0.00%, 09/01/33	2,350	1,889,658
		34,830,574
Total Municipal Bonds in New Jersey		584,327,852
New York 5.6%
Transportation 5.6%
Port Authority of New York & New Jersey, ARB
Consolidated, 93rd Series, 6.13%, 06/01/94	1,000	1,162,220
Consolidated, 218th Series, AMT, 4.00%, 11/01/34	1,640	1,972,543
Consolidated, 218th Series, AMT, 4.00%, 11/01/47	2,485	2,875,766
Consolidated, 221st Series, AMT, 4.00%, 07/15/45	2,165	2,542,749
Port Authority of New York & New Jersey, Refunding ARB
Consolidated, 206th Series, AMT, 5.00%, 11/15/42	3,110	3,815,472
Series 178th, AMT, 5.00%, 12/01/33	4,005	4,422,201
Series 223, AMT, 4.00%, 07/15/51	2,960	3,494,606
Port Authority of New York & New Jersey, Refunding RB
Consolidated, 200th Series, 5.00%, 09/01/36	3,090	4,017,896
Consolidated, 212th Series, 4.00%, 09/01/37	2,460	2,978,470
Total Municipal Bonds in New York		27,281,923
Pennsylvania 2.6%
Transportation 2.6%
Delaware River Port Authority Refunding RB, 5.00%, 01/01/27	785	838,733
Delaware River Port Authority, RB 5.00%, 01/01/29	2,000	2,226,160
5.00%, 01/01/37	8,830	9,785,848
Total Municipal Bonds in Pennsylvania		12,850,741
Puerto Rico 4.7%
State 4.7%
Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB
Series A-1, Restructured, 4.75%, 07/01/53	583	670,654
Series A-1, Restructured, 5.00%, 07/01/58	3,462	4,033,680
Series A-2, Restructured, 4.33%, 07/01/40	11,732	13,325,792
Series A-2, Restructured, 4.78%, 07/01/58	878	1,009,525
Series B-1, Restructured, 4.75%, 07/01/53	638	733,923
Series B-2, Restructured, 4.78%, 07/01/58	618	710,953
Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB, CAB, Series A-1, Restructured, 0.00%, 07/01/46 (d)	7,564	2,526,981
Total Municipal Bonds in Puerto Rico		23,011,508
Total Municipal Bonds 132.3% (Cost: $580,409,396)		648,727,305
Municipal Bonds Transferred to Tender Option Bond Trusts (g)
New Jersey 21.1%
County/City/Special District/School District 5.9%
Hudson County Improvement Authority, RB, 5.25%, 05/01/51	3,120	3,735,482

S C H E D U L E O F I N V E S T M E N T S 25

Schedule of Investments (continued) July 31, 2021 BlackRock MuniHoldings New Jersey Quality Fund, Inc. (MUJ) (Percentages shown are based on Net Assets)

Security	Par (000)	Value
County/City/Special District/School District (continued)
Union County Utilities Authority, Refunding RB
Series A, 5.00%, 06/15/41	$ 7,573	$ 7,598,308
Series A, AMT, 5.25%, 12/01/31	17,300	17,573,167
		28,906,957
Education 7.1%
New Jersey Economic Development Authority, Refunding RB
AMT, 3.00%, 08/01/41	9,749	9,920,422
AMT, 3.00%, 08/01/43 (h)	14,021	14,267,573
Rutgers The State University of New Jersey, Refunding RB, Series L, 5.00%, 05/01/23 (c)	10,000	10,849,900
		35,037,895
Health 1.4%
New Jersey Health Care Facilities Financing Authority, RB, 4.00%, 07/01/47	6,133	6,996,516
State 4.7%
Garden State Preservation Trust, RB, Series A, 5.75%, 11/01/28	12,460	15,665,958
New Jersey Economic Development Authority, Refunding RB, Series NN, 5.00%, 03/01/29 (h)	6,698	7,196,718
		22,862,676
Transportation 2.0%
New Jersey Turnpike Authority, RB, Series A, 5.00%, 07/01/22 (c)(h)	9,300	9,716,082
Total Municipal Bonds in New Jersey		103,520,126
New York 2.1%
Transportation 2.1%
Port Authority of New York & New Jersey, Refunding ARB, AMT, Consolidated, 169th Series,
5.00%, 10/15/41	10,000	10,091,000
Total Municipal Bonds Transferred to Tender
Option Bond Trusts 23.2% (Cost: $107,642,433)		113,611,126
Total Long-Term Investments 155.5% (Cost: $688,051,829)		762,338,431
Short-Term Securities
Commercial Paper 1.0%
Port Authority of New York & New Jersey, Refunding ARB, 0.16%, 10/01/21	5,100	5,100,419
		5,100,419

Security		Value
Money Market Funds 4.6%
BlackRock Liquidity Funds, MuniCash, Institutional Class,
0.01% (i)(j)	22,332,938	$ 22,337,405
Total Short-Term Securities 5.6% (Cost: $27,437,405)		27,437,824
Total Investments 161.1% (Cost: $715,489,234)		789,776,255
Liabilities in Excess of Other Assets (0.2)%		(1,435,000	)
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable
(12.6)%		(61,552,078	)
VRDP Shares at Liquidation Value, Net of Deferred Offering
Costs (48.3)%		(236,685,959	)
Net Assets Applicable to Common Shares 100.0%		$ 490,103,218

(a) Security is collateralized by municipal bonds or U.S. Treasury obligations.

(b) Variable rate security. Interest rate resets periodically. The rate shown is the effective interest rate as of period end. Security description also includes the reference rate and spread if published and available.

(c) U.S. 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.

(d) Zero-coupon bond.

(e) Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

(f) When-issued security.

(g) Represent bonds transferred to a TOB Trust in exchange of cash and residual certificates received by the Fund. These bonds serve as collateral in a secured borrowing. See Note 4 of the Notes to Financial Statements for details.

(h) All or a portion of the security is subject to a recourse agreement. The aggregate maximum potential amount the Fund could ultimately be required to pay under the agreements, which expire between January 1, 2022 to February 1, 2037, is $24,100,690. See Note 4 of the Notes to Financial Statements for details.

(i) Affiliate of the Fund.

(j) Annualized 7-day yield as of period end.

26 2 0 2 1 B L A C K R O C K A N N U A L R E P O R T T O S H A R E H O L D E R S

Schedule of Investments (continued) July 31, 2021 BlackRock MuniHoldings New Jersey Quality Fund, Inc. (MUJ)

Affiliates

Affiliated Issuer	Value at 07/31/20	Purchases at Cost		Proceeds from Sales	Net Realized Gain (Loss)	Change in Unrealized Appreciation (Depreciation)		Value at 07/31/21		Income	Capital Gain Distributions from Underlying Funds
BlackRock Liquidity Funds, MuniCash, Institutional Class	$ 871,428	$ 21,465,717	(a)	$	$ 625	$ (365	)	$ 22,337,405	22,332,938	$ 854	$

(a) Represents net amount purchased (sold).

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

Description			Notional Amount (000)	Value/ Unrealized Appreciation (Depreciation)
Short Contracts
10-Year U.S. Treasury Note	111	09/21/21	$ 14,933	$ (281,534	)
U.S. Long Bond	52	09/21/21	8,578	(450,231	)
5-Year U.S. Treasury Note	100	09/30/21	12,448	(116,602	)
				$ (848,367	)

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

	Commodity Contracts	Credit Contracts	Equity Contracts	Foreign Currency Exchange Contracts	Interest Rate Contracts	Other Contracts	Total
Liabilities Derivative Financial Instruments
Futures contracts
Unrealized depreciation on futures contracts (a)	$	$	$	$	$ 848,367	$	$ 848,367

(a) Net cumulative unrealized appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current days variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

For the year ended July 31, 2021, the effect of derivative financial instruments in the Statements of Operations was as follows:

	Commodity Contracts	Credit Contracts	Equity Contracts	Foreign Currency Exchange Contracts	Interest Rate Contracts		Other Contracts	Total
Net Realized Gain (Loss) from
Futures contracts	$	$	$	$	$ 886,497		$	$ 886,497
Net Change in Unrealized Appreciation (Depreciation) on
Futures contracts	$	$	$	$	$ (848,367	)	$	$ (848,367	)

Average Quarterly Balances of Outstanding Derivative Financial Instruments

Futures contracts
Average notional value of contracts short	$ 28,182,008

For more information about the Funds investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

S C H E D U L E O F I N V E S T M E N T S 27

Schedule of Investments (continued) July 31, 2021 BlackRock MuniHoldings New Jersey Quality Fund, Inc. (MUJ)

Fair Value Hierarchy as of Period End

	Level 1		Level 2	Level 3	Total
Assets
Investments
Long-Term Investments
Municipal Bonds	$		$ 648,727,305	$	$ 648,727,305
Municipal Bonds Transferred to Tender Option Bond Trusts			113,611,126		113,611,126
Short-Term Securities
Commercial Paper			5,100,419		5,100,419
Money Market Funds	22,337,405				22,337,405
	$ 22,337,405		$ 767,438,850	$	$ 789,776,255
Derivative Financial Instruments (a)
Liabilities
Interest Rate Contracts	$ (848,367	)	$	$	$ (848,367	)

(a) Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.

	Level 1	Level 2		Level 3	Total
Liabilities
TOB Trust Certificates	$	$ (61,534,134	)	$	$ (61,534,134	)
VRDP Shares at Liquidation Value		(237,100,000	)		(237,100,000	)
	$	$ (298,634,134	)	$	$ (298,634,134	)

See notes to financial statements.

28 2 0 2 1 B L A C K R O C K A N N U A L R E P O R T T O S H A R E H O L D E R S

Schedule of Investments July 31, 2021 BlackRock MuniYield Michigan Quality Fund, Inc. (MIY) (Percentages shown are based on Net Assets)

Security	Par (000)	Value
Municipal Bonds
Michigan 134.1%
Corporate 3.3%
Monroe County Economic Development Corp., Refunding RB, Series AA, (NPFGC),
6.95%, 09/01/22	$ 14,500	$ 15,541,535
County/City/Special District/School District 24.6%
Battle Creek School District, Refunding GO, (Q-SBLF), 5.00%, 05/01/37	1,170	1,401,719
Berkley School District, GO, (Q-SBLF), 5.00%, 05/01/35	2,965	3,441,327
Byron Center Public Schools, GO
Series I, (Q-SBLF), 5.00%, 05/01/43	4,475	5,465,810
Series I, (Q-SBLF), 5.00%, 05/01/47	740	898,952
Columbia School District, GO, (Q-SBLF), 5.00%, 11/01/23 (a)	5,185	5,754,261
County of Saginaw Michigan, GO, 4.00%, 11/01/42	2,000	2,302,660
Dearborn Brownfield Redevelopment Authority, GO, Series A, (AGC), 5.50%, 05/01/39	5,300	5,319,133
Dearborn School District, GO
Series A, (Q-SBLF), 5.00%, 11/01/23 (a)	1,500	1,664,685
Series A, (Q-SBLF), 5.00%, 05/01/33	1,600	1,764,160
Series A, (Q-SBLF), 5.00%, 05/01/34	1,200	1,322,508
Dowagiac Union School District, GO, (Q-SBLF), 5.00%, 05/01/41	1,140	1,358,321
East Lansing School District, GO, Series I, (Q-SBLF), 5.00%, 05/01/42	1,000	1,222,610
Farmington Public School District, Refunding GO
(AGM), 5.00%, 05/01/33	1,500	1,748,505
(AGM), 5.00%, 05/01/34	1,500	1,747,320
(AGM), 5.00%, 05/01/35	1,000	1,164,140
Fraser Public School District, Refunding GO
(Q-SBLF), 5.00%, 05/01/43	2,000	2,440,220
(Q-SBLF), 5.00%, 05/01/47	3,225	3,914,150
Gibraltar School District, GO, (Q-SBLF), 5.00%, 05/01/36	750	944,220
Grandville Public Schools, GO
Series I, (AGM), 4.00%, 05/01/38	910	1,094,803
Series II, (AGM), 5.00%, 05/01/40	3,250	3,749,947
Gull Lake Community School District, GO, Series I, (Q-SBLF), 5.00%, 05/01/45	4,000	5,023,520
Hudsonville Public Schools, GO
Series I, (Q-SBLF), 4.00%, 05/01/43	1,875	2,228,756
Series I, (Q-SBLF), 4.00%, 05/01/44	1,950	2,313,889
Series I, (Q-SBLF), 4.00%, 05/01/45	2,040	2,418,808
Jackson Public Schools, GO, (Q-SBLF), 5.00%, 05/01/42	4,000	4,992,520
Kentwood Public Schools, GO
5.00%, 05/01/41	1,120	1,339,027
5.00%, 05/01/44	1,815	2,163,081
Livonia Public Schools, GO, Series I, (AGM), 5.00%, 05/01/23 (a)	5,000	5,429,200
Mattawan Consolidated School District, GO, Series I, (Q-SBLF), 5.00%, 05/01/25 (a)	3,375	3,971,734
Michigan Finance Authority, RB
5.00%, 11/01/34	215	271,683
5.00%, 11/01/38	2,500	3,149,175
5.00%, 11/01/43	4,000	5,020,080
Series H-1, 5.00%, 10/01/39 (a)	5,400	6,145,686

Security	Par (000)	Value
County/City/Special District/School District (continued)
Mona Shores Public Schools, GO
Series I, (Q-SBLF), 5.00%, 05/01/42	$ 1,000	$ 1,275,800
Series I, (Q-SBLF), 5.00%, 05/01/43	1,025	1,306,691
Series I, (Q-SBLF), 5.00%, 05/01/44	1,525	1,942,393
Swartz Creek Community Schools, GO, (Q-SBLF), 5.00%, 05/01/44	4,270	5,386,818
Troy School District, GO, (Q-SBLF), 5.00%, 11/01/23 (a)	2,000	2,219,580
Walled Lake Consolidated School District, GO, (Q-SBLF), 5.00%, 11/01/23 (a)	7,010	7,779,628
Zeeland Public Schools, GO
Series A, (AGM), 5.00%, 05/01/25 (a)	2,000	2,353,510
Series A, (AGM), 5.00%, 05/01/33	1,000	1,162,240
		116,613,270
Education 30.1%
Grand Valley State University, RB, 5.00%, 12/01/43	1,600	1,984,064
Lake Superior State University, RB, (AGM), 5.00%, 01/15/48	3,750	4,570,575
Michigan Finance Authority, Refunding RB 4.00%, 02/01/29	700	776,783
5.00%, 02/01/33	830	952,359
4.00%, 12/01/33	1,720	1,843,204
5.00%, 12/01/36	1,550	1,693,452
5.00%, 09/01/40	1,000	1,151,220
5.00%, 12/01/40	2,900	3,114,310
5.00%, 12/01/45	4,400	4,700,344
4.00%, 09/01/46	1,750	2,046,835
Series 25-A, AMT, 4.00%, 11/01/29	5,900	6,148,154
Series 25-A, AMT, 4.00%, 11/01/30	2,850	2,969,301
Series 25-A, AMT, 4.00%, 11/01/31	3,150	3,281,166
Michigan State University, Refunding RB, Series A, 5.00%, 08/15/38	10,000	10,940,500
Michigan Technological University, RB, Series A, 5.00%, 10/01/45	1,800	2,102,544
Michigan Technological University, Refunding RB 5.00%, 10/01/31	1,080	1,473,617
5.00%, 10/01/32	1,250	1,697,112
5.00%, 10/01/33	1,325	1,790,234
5.00%, 10/01/34	1,400	1,881,964
Oakland University, RB
5.00%, 03/01/32	400	411,152
5.00%, 03/01/41	3,635	4,316,781
Series A, 5.00%, 03/01/38	5,490	5,886,598
Series A, 5.00%, 03/01/43	16,845	18,027,182
University of Michigan, RB, Series A, 5.00%, 04/01/39	3,425	3,843,090
Wayne State University, RB, Series A, 5.00%, 11/15/40	13,000	14,341,470
Western Michigan University, RB, Series A, (AGM), 5.00%, 11/15/51	5,000	6,397,850
Western Michigan University, Refunding RB
5.25%, 11/15/21 (a)	3,500	3,551,380
(AGM), 5.00%, 11/15/23 (a)	1,750	1,945,317
5.25%, 11/15/23 (a)	8,475	9,469,202
(AGM), 5.25%, 11/15/23 (a)	1,000	1,117,310
5.00%, 11/15/44	5,650	7,176,121
5.00%, 11/15/49	8,680	11,024,815
		142,626,006
Health 33.1%
Grand Traverse County Hospital Finance Authority, RB
Series A, 5.00%, 07/01/44	4,230	4,754,012
Series A, 5.00%, 07/01/47	2,200	2,469,082
Series A, 5.00%, 07/01/49	2,610	3,244,204

S C H E D U L E O F I N V E S T M E N T S 29

Schedule of Investments (continued) July 31, 2021 BlackRock MuniYield Michigan Quality Fund, Inc. (MIY) (Percentages shown are based on Net Assets)

Security	Par (000)	Value
Health (continued)
Grand Traverse County Hospital Finance Authority, RB (continued)
Series B, 4.00%, 07/01/49	$ 2,000	$ 2,305,840
Grand Traverse County Hospital Finance Authority, Refunding RB
5.00%, 07/01/32	2,135	2,899,415
5.00%, 07/01/33	1,125	1,520,831
5.00%, 07/01/34	1,180	1,587,619
Kalamazoo Economic Development Corp., Refunding RB
5.00%, 05/15/32	865	970,271
5.00%, 05/15/42	425	468,486
Kent Hospital Finance Authority, Refunding RB, Series A, 5.00%, 11/15/21 (a)	7,500	7,604,850
Kentwood Economic Development Corp., RB, 4.00%, 11/15/45	750	837,390
Kentwood Economic Development Corp., Refunding RB, 5.00%, 11/15/41	2,335	2,730,479
Michigan Finance Authority, RB
5.00%, 11/15/36	2,500	2,648,450
Series S, 4.00%, 11/01/46	1,025	1,143,808
Michigan Finance Authority, Refunding RB
5.00%, 12/01/21 (a)	16,690	16,959,877
5.00%, 06/01/24 (a)	1,500	1,705,155
5.00%, 11/01/32	4,000	4,237,080
5.00%, 11/15/37	3,000	3,647,370
5.00%, 11/15/41	1,000	1,205,420
5.00%, 11/15/45	3,750	4,327,350
5.00%, 12/01/45 (a)	19,735	23,642,897
4.00%, 11/15/46	8,500	9,578,140
Series S, 5.00%, 05/15/32	1,000	1,158,040
Series S, 5.00%, 05/15/33	2,000	2,314,320
Series S, 5.00%, 05/15/34	6,500	7,515,690
Series S, 5.00%, 05/15/35	4,945	5,713,156
Michigan State Hospital Finance Authority, Refunding RB
Series A, 5.00%, 06/01/35	2,250	2,334,398
Series C, 4.00%, 06/01/22 (a)	5,300	5,472,303
Michigan Strategic Fund, Refunding RB, 5.00%, 11/15/43	1,220	1,411,516
Royal Oak Hospital Finance Authority, Refunding RB, Series D, 5.00%, 09/01/39	27,365	30,482,694
		156,890,143
Housing 7.0%
Michigan State Housing Development Authority, RB, M/F Housing
Series A, 4.45%, 10/01/34	1,000	1,058,500
Series A, 4.63%, 10/01/39	3,490	3,681,217
Series A, 4.30%, 10/01/40	3,320	3,614,119
Series A, 4.00%, 10/01/43	7,420	8,208,672
Series A, 4.75%, 10/01/44	5,000	5,232,150
Series A, 2.45%, 10/01/46	5,000	4,966,900
AMT, (GNMA), 4.75%, 04/20/37	2,910	2,913,957
Michigan State Housing Development Authority, RB, S/F Housing, Series A, 4.00%, 12/01/44	3,390	3,574,382
		33,249,897

Security	Par (000)	Value
State 19.4%
Flint Economic Development Corp., RB, 5.25%, 10/01/41	$ 4,950	$ 4,989,600
Michigan Finance Authority, RB
Series F, 5.00%, 04/01/31	1,000	1,007,880
Series F, 5.25%, 10/01/41	8,595	8,663,760
Michigan State Building Authority, Refunding RB
Series I, 5.00%, 04/15/41	4,750	5,678,768
Series I, 4.00%, 10/15/46	5,000	6,084,500
Series I-A, 5.50%, 10/15/21 (a)	2,000	2,021,720
Michigan Strategic Fund, RB
Series A, 5.25%, 10/15/40	3,000	3,542,100
AMT, (AGM), 4.25%, 12/31/38	14,000	16,766,120
AMT, 5.00%, 12/31/43	15,000	18,250,650
Michigan Strategic Fund, Refunding RB, 5.25%, 10/15/31	7,000	7,071,610
State of Michigan Trunk Line Revenue, RB 5.00%, 11/15/33	3,000	3,041,790
5.00%, 11/15/36	5,345	5,418,814
Series B, 4.00%, 11/15/45	5,000	6,044,000
State of Michigan, COP, (AMBAC), 0.00%, 06/01/22 (b)(c)	3,000	2,991,570
		91,572,882
Tobacco 1.8%
Michigan Finance Authority, Refunding RB, Series A, Class 1, 4.00%, 06/01/40	1,250	1,499,162
Michigan Finance Authority, Refunding RB, CAB, Series B-2, Class 2, 0.00%, 06/01/65 (c)	50,000	6,795,000
		8,294,162
Transportation 6.6%
Wayne County Airport Authority, ARB
Series A, 5.00%, 12/01/42	1,000	1,244,480
Series A, 5.00%, 12/01/46	2,000	2,651,240
Series D, 5.00%, 12/01/35	3,850	4,578,574
Series D, 5.00%, 12/01/45	7,500	8,842,650
Series B, AMT, 5.00%, 12/01/42	1,000	1,222,350
Series B, AMT, 5.00%, 12/01/47	1,250	1,521,938
Series C, AMT, 5.00%, 12/01/39	1,475	1,679,361
Wayne County Airport Authority, Refunding ARB, Series F, AMT, 5.00%, 12/01/34	8,000	9,432,480
		31,173,073
Utilities 8.2%
City of Detroit Michigan Sewage Disposal System Revenue, Refunding RB, Series A, Senior Lien,
5.25%, 07/01/22 (a)	2,655	2,780,369
City of Detroit Michigan Water Supply System Revenue, RB, Series A, Senior Lien, (NPFGC),
5.00%, 07/01/34	10	10,033
City of Grand Rapids Michigan Sanitary Sewer System Revenue, Refunding RB, Series A, (NPFGC),
5.50%, 01/01/22	280	286,121
City of Port Huron Michigan Water Supply System Revenue, RB
5.25%, 10/01/31	500	503,895
5.63%, 10/01/40	1,500	1,512,270
Downriver Utility Wastewater Authority, Refunding RB, (AGM), 5.00%, 04/01/43	1,000	1,208,710
Great Lakes Water Authority Water Supply System Revenue, RB, Series B, 2nd Lien,
5.00%, 07/01/46	10,000	11,826,100

30 2 0 2 1 B L A C K R O C K A N N U A L R E P O R T T O S H A R E H O L D E R S

Schedule of Investments (continued) July 31, 2021 BlackRock MuniYield Michigan Quality Fund, Inc. (MIY) (Percentages shown are based on Net Assets)

Security	Par (000)	Value
Utilities (continued)
Karegnondi Water Authority, Refunding RB 5.00%, 11/01/41	$ 2,750	$ 3,401,063
5.00%, 11/01/45	3,000	3,710,040
Michigan Finance Authority, Refunding RB
Series D-1, 5.00%, 07/01/34	2,000	2,339,180
Series D-1, 5.00%, 07/01/35	750	876,540
Series C-3, Senior Lien, (AGM), 5.00%, 07/01/31	1,000	1,131,110
Series C-3, Senior Lien, (AGM), 5.00%, 07/01/32	5,250	5,934,495
Series C-3, Senior Lien, (AGM), 5.00%, 07/01/33	3,000	3,388,890
		38,908,816
Total Municipal Bonds in Michigan		634,869,784
Puerto Rico 4.6%
State 4.6%
Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB
Series A-1, Restructured, 4.75%, 07/01/53	534	614,287
Series A-1, Restructured, 5.00%, 07/01/58	825	961,232
Series A-2, Restructured, 4.33%, 07/01/40	1,109	1,259,658
Series A-2, Restructured, 4.78%, 07/01/58	103	118,429
Series B-1, Restructured, 4.75%, 07/01/53	616	708,616
Series B-1, Restructured, 5.00%, 07/01/58	7,451	8,673,634
Series B-2, Restructured, 4.33%, 07/01/40	5,880	6,675,035
Series B-2, Restructured, 4.78%, 07/01/58	597	686,795
Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB, CAB, Series A-1, Restructured, 0.00%, 07/01/46 (c)	6,295	2,103,034
Total Municipal Bonds in Puerto Rico		21,800,720
Total Municipal Bonds 138.7% (Cost: $603,186,675)		656,670,504
Municipal Bonds Transferred to Tender Option Bond Trusts (d)
Michigan 17.2%
Education 13.2%
Eastern Michigan University, RB, Series A, 4.00%, 03/01/44	10,000	11,612,600
Michigan Finance Authority, RB, Series A, 5.00%, 11/01/44	10,002	11,746,220
Michigan Finance Authority, Refunding RB, AMT, Series 25-A, 4.00%, 11/01/28	8,750	9,120,035
Michigan State University, Refunding RB, Series B, 5.00%, 02/15/44 (e)	5,750	7,328,719
University of Michigan, Refunding RB, 5.00%, 04/01/46	10,000	11,981,701
Wayne State University, RB, Series A,
5.00%, 11/15/43 (e)	8,530	10,791,557
		62,580,832

Security	Par (000)	Value
State 1.3%
Michigan State Building Authority, Refunding RB, Series I, 5.00%, 10/15/45	$ 5,150	$ 6,055,988
Utilities 2.7%
Lansing Board of Water & Light, Refunding RB, Series A, 5.00%, 07/01/44	10,000	12,737,796
Total Municipal Bonds in Michigan		81,374,616
Total Municipal Bonds Transferred to Tender Option Bond Trusts 17.2% (Cost:
$73,130,361)		81,374,616
Total Long-Term Investments 155.9% (Cost: $676,317,036)		738,045,120
	Shares
Short-Term Securities
Money Market Funds 0.6%
BlackRock Liquidity Funds, MuniCash, Institutional Class,
0.01% (f)(g)	2,854,205	2,854,776
Total Short-Term Securities 0.6% (Cost: $2,853,807)		2,854,776
Total Investments 156.5% (Cost: $679,170,843)		740,899,896
Other Assets Less Liabilities 1.1%		5,351,746
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable
(8.7)%		(41,281,586	)
VRDP Shares at Liquidation Value, Net of Deferred Offering Costs (48.9)%		(231,506,549	)
Net Assets Applicable to Common Shares 100.0%		$ 473,463,507

(a) U.S. 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.

(b) Security is collateralized by municipal bonds or U.S. Treasury obligations.

(e) All or a portion of the security is subject to a recourse agreement. The aggregate maximum potential amount the Fund could ultimately be required to pay under the agreements, which expire between November 15, 2026 to February 15, 2027, is $9,881,917. See Note 4 of the Notes to Financial Statements for details.

(f) Affiliate of the Fund.

(g) Annualized 7-day yield as of period end.

S C H E D U L E O F I N V E S T M E N T S 31

Schedule of Investments (continued) July 31, 2021 BlackRock MuniYield Michigan Quality Fund, Inc. (MIY)

Affiliates

Affiliated Issuer	Value at 07/31/20	Purchases at Cost	Proceeds from Sales		Net Realized Gain (Loss)	Change in Unrealized Appreciation (Depreciation)		Value at 07/31/21		Income	Capital Gain Distributions from Underlying Funds
BlackRock Liquidity Funds, MuniCash, Institutional Class	$ 3,877,972	$	$ (1,023,485	) (a)	$ 775	$ (486	)	$ 2,854,776	2,854,205	$ 395	$

(a) Represents net amount purchased (sold).

Fair Value Hierarchy as of Period End

	Level 1	Level 2	Level 3	Total
Assets
Investments
Long-Term Investments
Municipal Bonds	$	$ 656,670,504	$	$ 656,670,504
Municipal Bonds Transferred to Tender Option Bond Trusts		81,374,616		81,374,616
Short-Term Securities
Money Market Funds	2,854,776			2,854,776
	$ 2,854,776	$ 738,045,120	$	$ 740,899,896

	Level 1	Level 2		Level 3	Total
Liabilities
TOB Trust Certificates	$	$ (41,267,055	)	$	$ (41,267,055	)
VRDP Shares at Liquidation Value		(231,900,000	)		(231,900,000	)
	$	$ (273,167,055	)	$	$ (273,167,055	)

See notes to financial statements.

32 2 0 2 1 B L A C K R O C K A N N U A L R E P O R T T O S H A R E H O L D E R S

Schedule of Investments July 31, 2021 BlackRock MuniYield Pennsylvania Quality Fund (MPA) (Percentages shown are based on Net Assets)

Security	Par (000)	Value
Municipal Bonds
Guam 0.3%
Utilities 0.3%
Guam Government Waterworks Authority, RB, Series A, 5.00%, 01/01/50	$ 460	$ 568,896
Pennsylvania 115.4%
Corporate 2.2%
Pennsylvania Economic Development Financing Authority, RB
Series A, AMT, 0.58%, 08/01/37 (a)	2,755	2,755,000
Series A, AMT, 3.25%, 08/01/39 (b)	1,950	2,026,050
Pennsylvania Economic Development Financing Authority, Refunding RB, AMT, 5.50%, 11/01/44	135	144,297
		4,925,347
County/City/Special District/School District 29.0%
Allentown Neighborhood Improvement Zone Development Authority, Refunding RB
Series A, 5.00%, 05/01/35	190	196,756
Series A, 5.00%, 05/01/42	450	466,006
Altoona Area School District, GO
(BAM SAW), 5.00%, 12/01/36	125	147,270
(BAM SAW), 5.00%, 12/01/45	600	698,328
Series A, (AGM, SAW), 5.00%, 12/01/36	1,180	1,390,229
Bethlehem Area School District, GO
Series A, (BAM SAW), 5.00%, 08/01/34	1,610	1,879,755
Series A, (BAM SAW), 5.00%, 08/01/35	1,210	1,411,840
Borough of West Chester Pennsylvania, Refunding GO, 3.50%, 11/15/35	1,095	1,215,187
Boyertown Area School District, GO
(SAW), 5.00%, 10/01/36	610	681,821
(SAW), 5.00%, 10/01/38	920	1,027,033
Bristol Township School District, GO
(SAW), 5.00%, 06/01/40	775	839,387
(BAM SAW), 5.00%, 06/01/42	1,685	2,067,832
Chester County Industrial Development Authority,
SAB (b)
4.25%, 03/01/35	715	743,822
4.75%, 03/01/50	1,525	1,587,128
City of Lancaster Pennsylvania, GO, (BAM), 4.00%, 11/01/42	1,705	2,002,966
City of Philadelphia Pennsylvania, Refunding GO, Series A, 5.00%, 08/01/37	1,360	1,684,782
City of Pittsburgh Pennsylvania, GO, Series B, 5.00%, 09/01/22 (c)	1,095	1,152,619
Coatesville School District, GO, CAB (d)
Series A, (BAM SAW), 0.00%, 10/01/34	160	111,470
Series A, (BAM SAW), 0.00%, 10/01/35	1,435	955,308
Series A, (BAM SAW), 0.00%, 10/01/37	1,395	848,355
Coatesville School District, Refunding GO, CAB (d)
Series B, (BAM SAW), 0.00%, 10/01/33	275	200,370
Series B, (BAM SAW), 0.00%, 10/01/34	550	383,179
Series C, (BAM SAW), 0.00%, 10/01/33	360	270,529
Council Rock School District, GO, (SAW), 2.00%, 08/15/40	1,310	1,282,438
Dallastown Area School District, Refunding GO, (SAW), 5.00%, 04/15/34	1,235	1,432,822
East Pennsboro Area School District, GO
(BAM SAW), 4.00%, 10/01/40	355	413,745
(BAM SAW), 4.00%, 10/01/44	840	973,972
Fox Chapel Area School District, GO (SAW), 5.00%, 02/01/39	1,345	1,649,737

Security	Par (000)	Value
County/City/Special District/School District (continued)
Fox Chapel Area School District, GO (continued)
(SAW), 5.00%, 02/01/42	$ 1,250	$ 1,514,362
Governor Mifflin School District, GO
Series A, (SAW), 4.00%, 04/01/39	360	421,679
Series A, (SAW), 4.00%, 04/01/40	225	263,036
Series A, (SAW), 4.00%, 04/01/42	640	745,485
Series A, (SAW), 4.00%, 04/01/43	570	663,024
Series A, (SAW), 4.00%, 04/01/46	665	768,348
Manheim Township School District, GO
Series A, (SAW), 3.00%, 02/01/34	100	112,083
Series A, (SAW), 4.00%, 02/01/34	260	313,251
Series A, (SAW), 4.00%, 02/01/35	510	613,326
Series A, (SAW), 4.00%, 02/01/36	345	413,376
Marple Newtown School District, GO, (SAW), 3.00%, 06/01/40	1,375	1,508,210
Monroe County, GO
Series A, 4.00%, 07/15/30	455	560,747
Series A, 4.00%, 07/15/31	530	649,971
Series A, 4.00%, 07/15/32	695	848,602
Northampton County Industrial Development Authority, TA, 7.00%, 07/01/32	140	150,118
Shaler Area School District, GO, CAB, (XLCA SAW), 0.00%, 09/01/30 (d)	6,145	5,373,249
Springfield School District/Delaware County, GO
(SAW), 5.00%, 03/01/36	870	1,093,451
(SAW), 5.00%, 03/01/37	890	1,117,270
(SAW), 5.00%, 03/01/40	1,025	1,283,597
(SAW), 5.00%, 03/01/43	775	967,952
State Public School Building Authority, RB, CAB (d)
(AGM, SAW), 0.00%, 12/15/22	1,640	1,631,193
(AGM, SAW), 0.00%, 12/15/23	1,980	1,956,082
(AGM, SAW), 0.00%, 12/15/24	1,980	1,932,401
(AGM, SAW), 0.00%, 12/15/25	1,770	1,698,811
Township of Lower Paxton Pennsylvania, GO
5.00%, 04/01/24 (c)	1,870	2,110,034
Series A, 4.00%, 04/01/39	400	474,192
Series A, 4.00%, 04/01/40	150	177,405
Series A, 4.00%, 04/01/42	315	371,265
Series A, 4.00%, 04/01/50	395	459,630
Tredyffrin Easttown School District, GO, (SAW), 5.00%, 02/15/39	695	856,803
West Shore School District, GO
(SAW), 5.00%, 11/15/43	2,095	2,604,253
(SAW), 4.00%, 11/15/45	715	850,843
(SAW), 4.00%, 11/15/48	360	427,752
(SAW), 5.00%, 11/15/48	1,200	1,475,196
		64,121,683
Education 17.8%
Berks County Municipal Authority, Refunding RB 5.00%, 10/01/39	160	179,112
5.00%, 10/01/49	430	477,558
City of Erie Higher Education Building Authority, Refunding RB
4.00%, 05/01/36	105	123,162
5.00%, 05/01/47	335	415,959
Commonwealth of Pennsylvania, GO, First Series, 5.00%, 06/01/22 (c)	2,460	2,559,458
Delaware County Authority, RB
5.00%, 08/01/40	1,205	1,404,259
5.00%, 08/01/45	1,610	1,850,470

S C H E D U L E O F I N V E S T M E N T S 33

Schedule of Investments (continued) July 31, 2021 BlackRock MuniYield Pennsylvania Quality Fund (MPA) (Percentages shown are based on Net Assets)

Security	Par (000)	Value
Education (continued)
Delaware County Authority, Refunding RB, CAB, 5.00%, 07/01/47	$ 2,480	$ 2,868,641
East Hempfield Township Industrial Development Authority,
RB (c)
5.00%, 07/01/23	785	858,193
5.00%, 07/01/25	1,255	1,484,752
Latrobe Industrial Development Authority, Refunding RB, 4.00%, 03/01/46	285	316,367
Lehigh County Industrial Development Authority, Refunding RB, 4.00%, 05/01/51	840	908,057
Northampton County General Purpose Authority, Refunding RB, 4.00%, 11/01/38	1,160	1,377,222
Pennsylvania Higher Education Assistance Agency, RB
Series A, 5.00%, 06/01/26	165	196,437
Series A, 5.00%, 06/01/27	185	225,180
Series A, 5.00%, 06/01/28	195	242,176
Series A, 5.00%, 06/01/29	190	239,961
Series A, 5.00%, 06/01/30	140	179,494
Series A, 2.63%, 06/01/42	1,250	1,274,012
Series B, AMT, Subordinate, 3.13%, 06/01/48	350	355,173
Pennsylvania Higher Educational Facilities Authority, RB, Series AT-1, 4.00%, 06/15/34	2,000	2,309,880
Pennsylvania Higher Educational Facilities Authority, Refunding RB
5.00%, 05/01/37	1,325	1,356,906
Series A, 5.25%, 07/15/23 (c)	1,580	1,738,016
Series A, 5.50%, 07/15/23 (c)	385	425,375
Philadelphia Authority for Industrial Development, RB 4.00%, 06/15/29	280	301,669
5.00%, 06/15/39	335	367,987
5.00%, 11/01/42	2,710	3,174,115
5.00%, 06/15/49	935	1,007,734
5.00%, 06/15/50	575	623,105
Philadelphia Authority for Industrial Development, Refunding RB
5.00%, 05/01/30	440	513,638
5.00%, 05/01/40	375	426,405
5.00%, 06/15/40 (b)	320	382,070
4.00%, 05/01/42	2,985	3,108,370
4.00%, 11/01/45	740	854,138
5.00%, 05/01/50	1,120	1,247,378
5.00%, 06/15/50 (b)	610	715,646
Series 2015, 5.00%, 04/01/45	2,170	2,499,102
Swarthmore Borough Authority, Refunding RB, 5.00%, 09/15/38	830	910,128
		39,497,305
Health 23.7%
Allegheny County Hospital Development Authority, RB, Series B, (NPFGC), 6.00%, 07/01/26	2,000	2,525,780
Allegheny County Hospital Development Authority, Refunding RB
Series A, 4.00%, 04/01/37	1,700	1,992,808
Series A, (AGM-CR), 4.00%, 04/01/44	3,440	3,970,964
Series A, 5.00%, 04/01/47	700	864,934
Bucks County Industrial Development Authority, RB, 4.00%, 07/01/51	1,000	1,127,660
Bucks County Industrial Development Authority, Refunding RB, 5.00%, 10/01/37	940	1,065,443
Centre County Hospital Authority, RB, 7.00%, 11/15/21 (c)	2,410	2,457,067

Security	Par (000)	Value
Health (continued)
Cumberland County Municipal Authority, Refunding RB
5.00%, 01/01/25 (c)	$ 255	$ 296,259
4.00%, 01/01/36	395	458,105
4.13%, 01/01/38	160	186,366
5.00%, 01/01/38	2,345	2,649,194
5.00%, 01/01/39	760	936,472
DuBois Hospital Authority, Refunding RB, 4.00%, 07/15/48	2,060	2,343,291
Franklin County Industrial Development Authority, RB 5.00%, 12/01/29	70	78,072
5.00%, 12/01/39	135	148,164
5.00%, 12/01/49	100	108,152
5.00%, 12/01/54	365	393,284
Geisinger Authority, Refunding RB, Series A-2, 5.00%, 02/15/39	4,050	4,961,696
Lancaster County Hospital Authority, Refunding RB, 5.00%, 11/01/35	575	651,596
Lancaster Industrial Development Authority, RB 4.00%, 12/01/44	420	473,747
5.00%, 12/01/44	665	786,994
4.00%, 12/01/49	565	635,738
Lancaster Industrial Development Authority, Refunding
RB (c)
5.38%, 05/01/23	520	567,658
5.75%, 05/01/23	865	949,934
Montgomery County Higher Education and Health Authority, Refunding RB
Series A, 5.00%, 09/01/37	840	1,042,734
Series A, 5.00%, 09/01/48	1,500	1,838,400
Montgomery County Industrial Development Authority, RB
Series C, 4.00%, 11/15/43	200	233,380
Series C, 5.00%, 11/15/45	915	1,134,737
Montgomery County Industrial Development Authority, Refunding RB
5.00%, 05/15/22 (c)	1,420	1,474,344
5.25%, 01/01/40	220	232,340
Mount Lebanon Hospital Authority, RB, 4.00%, 07/01/48	2,345	2,656,815
Northampton County General Purpose Authority, Refunding RB
5.00%, 08/15/46	1,000	1,193,750
5.00%, 08/15/48	1,125	1,394,370
Pennsylvania Higher Educational Facilities Authority, RB, Series A, 5.75%, 08/15/21 (c)	1,000	1,001,970
Pennsylvania Higher Educational Facilities Authority, Refunding RB, Series A,
5.00%, 09/01/45	2,000	2,291,100
Pottsville Hospital Authority, Refunding RB, Series B, 5.00%, 07/01/41	3,000	3,659,370
Union County Hospital Authority, Refunding RB, 7.00%, 08/01/21 (c)	460	460,000
Wayne County Hospital & Health Facilities Authority, RB, Series A, (CNTY GTD),
4.00%, 07/01/46	1,595	1,772,412
West Cornwall Township Municipal Authority, Refunding RB
Series A, 4.00%, 11/15/36	230	265,411
Series A, 4.00%, 11/15/41	225	256,541
Series A, 4.00%, 11/15/46	335	379,079
Westmoreland County Industrial Development Authority, Refunding RB, Series A,
4.00%, 07/01/37	360	432,464
		52,348,595
Housing 2.1%
Pennsylvania Housing Finance Agency, RB, M/F Housing
Series A, 4.25%, 10/01/35.	385	317,067
Series A, 4.50%, 10/01/40	400	328,008

34 2 0 2 1 B L A C K R O C K A N N U A L R E P O R T T O S H A R E H O L D E R S

Schedule of Investments (continued) July 31, 2021 BlackRock MuniYield Pennsylvania Quality Fund (MPA) (Percentages shown are based on Net Assets)

Security	Par (000)	Value
Housing (continued)
Pennsylvania Housing Finance Agency, RB, S/F Housing, Series 128B, AMT, 4.00%, 10/01/47	$ 955	$ 1,022,156
Philadelphia Authority for Industrial Development, RB, M/F Housing
Series A, 3.50%, 12/01/36	810	555,619
Series A, 4.00%, 12/01/46	2,970	1,955,775
Series A, 4.00%, 12/01/51	805	520,384
		4,699,009
State 8.5%
Commonwealth Financing Authority, RB 5.00%, 06/01/34	4,175	5,243,174
5.00%, 06/01/35	1,295	1,623,580
Commonwealth Financing Authority, Refunding RB, Series A, 5.00%, 06/01/28	1,000	1,281,740
Pennsylvania Economic Development Financing Authority, RB, AMT, 5.00%, 06/30/42	7,000	8,145,130
Pennsylvania Turnpike Commission, RB, Sub-Series B, 5.25%, 12/01/48	1,930	2,467,428
		18,761,052
Tobacco 4.6%
Commonwealth Financing Authority, RB, 5.00%, 06/01/33	3,575	4,497,994
Commonwealth of Pennsylvania, GO
First Series, 5.00%, 05/15/28	1,300	1,673,451
First Series, 5.00%, 05/15/29	3,000	3,949,950
		10,121,395
Transportation 14.8%
City of Philadelphia Pennsylvania Airport Revenue, Refunding ARB
AMT, (AGM), 4.00%, 07/01/46	610	726,650
Series B, AMT, 5.00%, 07/01/37	1,100	1,338,667
Series B, AMT, 5.00%, 07/01/47	2,105	2,529,431
Delaware River Joint Toll Bridge Commission, RB, 5.00%, 07/01/42	1,500	1,835,340
Delaware River Port Authority, RB
5.00%, 01/01/29	475	528,713
5.00%, 01/01/37	2,285	2,532,351
Pennsylvania Economic Development Financing Authority, RB, AMT, 0.42%, 06/01/41 (a)	1,665	1,681,071
Pennsylvania Economic Development Financing Authority, Refunding RB, Series A, AMT,
5.00%, 11/01/41	6,025	6,330,648
Pennsylvania Turnpike Commission RB 5.00%, 12/01/29	260	343,949
5.00%, 12/01/30	325	438,266
5.00%, 12/01/31	590	809,964
3.00%, 12/01/51	1,720	1,849,722
Pennsylvania Turnpike Commission, RB, Sub-Series B-1, 5.00%, 06/01/42	2,345	2,871,968
Pennsylvania Turnpike Commission, RB, CAB (d)
Sub-Series A-3, (AGM), 0.00%, 12/01/40	1,275	849,584
Sub-Series A-3, 0.00%, 12/01/42	4,760	2,846,337
Pennsylvania Turnpike Commission, Refunding RB, Series A-1, 5.25%, 12/01/45	3,270	3,878,384
Southeastern Pennsylvania Transportation Authority, RB, 5.00%, 06/01/32	1,075	1,416,237
		32,807,282

Security	Par (000)	Value
Utilities 12.7%
Allegheny County Sanitary Authority, RB, (BAM), 5.25%, 12/01/41	$ 1,410	$ 1,560,447
Bucks County Water and Sewer Authority, RB
Series A, (AGM), 5.00%, 12/01/37	780	894,371
Series A, (AGM), 5.00%, 12/01/40	1,000	1,143,650
City of Philadelphia Pennsylvania Water & Wastewater Revenue, RB
Series A, 5.00%, 10/01/43	3,040	3,843,168
Series A, 5.00%, 11/01/45	1,790	2,318,426
Series A, 5.25%, 10/01/52	810	1,011,706
Delaware County Regional Water Quality Control Authority, RB, 5.00%, 05/01/23 (c)	420	455,658
Falls Township Authority, Refunding RB, (MUN GOVT GTD), 5.00%, 12/01/37	1,270	1,290,066
New Kensington Municipal Sanitary Authority, RB, (AGM), 3.25%, 12/01/47	1,195	1,245,549
Oxford Area Sewer Authority Refunding RB
(BAM), 4.00%, 07/01/22	100	103,434
(BAM), 4.00%, 07/01/23	135	144,594
(BAM), 3.00%, 07/01/25	100	109,633
(BAM), 4.00%, 07/01/28	160	193,080
(BAM), 4.00%, 07/01/29	165	202,179
(BAM), 4.00%, 07/01/30	120	149,026
(BAM), 4.00%, 07/01/31	100	125,855
(BAM), 4.00%, 07/01/33	100	124,325
(BAM), 4.00%, 07/01/34	200	247,560
(BAM), 3.00%, 07/01/35	100	112,743
(BAM), 4.00%, 07/01/37	220	270,134
(BAM), 4.00%, 07/01/38	230	281,745
(BAM), 4.00%, 07/01/39	240	293,537
(BAM), 4.00%, 07/01/41	260	316,501
(BAM), 3.00%, 07/01/46	1,255	1,361,926
(BAM), 2.38%, 07/01/55	2,380	2,328,949
Philadelphia Gas Works Co., Refunding RB 5.00%, 08/01/30	800	935,992
5.00%, 08/01/31	600	701,298
5.00%, 08/01/32	800	934,264
5.00%, 08/01/33	400	466,708
5.00%, 08/01/34	700	816,004
Pittsburgh Water & Sewer Authority, RB, Series B, (AGM), 4.00%, 09/01/50	900	1,072,944
Westmoreland County Municipal Authority, Refunding RB, (BAM), 5.00%, 08/15/36	2,000	2,466,020
Williamsport Sanitary Authority, Refunding RB, (BAM), 4.00%, 01/01/40	580	677,730
		28,199,222
Total Municipal Bonds in Pennsylvania		255,480,890
Puerto Rico 4.6%
State 4.6%
Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB
Series A-1, Restructured, 4.75%, 07/01/53	265	304,843
Series A-1, Restructured, 5.00%, 07/01/58	389	453,236
Series A-2, Restructured, 4.33%, 07/01/40	519	589,506
Series A-2, Restructured, 4.78%, 07/01/58	46	52,891
Series B-1, Restructured, 4.75%, 07/01/53	283	325,549
Series B-1, Restructured, 5.00%, 07/01/58	3,423	3,984,680

S C H E D U L E O F I N V E S T M E N T S 35

Schedule of Investments (continued) July 31, 2021 BlackRock MuniYield Pennsylvania Quality Fund (MPA) (Percentages shown are based on Net Assets)

Security	Par (000)	Value
State (continued)
Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB (continued)
Series B-2, Restructured, 4.33%, 07/01/40	$ 2,701	$ 3,066,202
Series B-2, Restructured, 4.78%, 07/01/58	274	315,212
Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB, CAB, Series A-1, Restructured, 0.00%, 07/01/46 (d)	3,618	1,208,701
Total Municipal Bonds in Puerto Rico		10,300,820
Total Municipal Bonds 120.3% (Cost: $242,693,467)		266,350,606
Municipal Bonds Transferred to Tender Option Bond Trusts (e)
Pennsylvania 37.0%
Education 9.7%
Northampton County General Purpose Authority, Refunding RB, 5.00%, 11/01/47	3,900	4,770,051
Pennsylvania Higher Educational Facilities Authority, RB, Series AR, 4.00%, 06/15/38	11,335	12,768,537
Philadelphia Authority for Industrial Development, RB, 4.00%, 12/01/48 (f)	3,300	3,854,598
		21,393,186
Health 19.2%
County of Lehigh Pennsylvania, Refunding RB, Series A, 4.00%, 07/01/49 (f)	2,501	2,911,911
General Authority of Southcentral Pennsylvania, Refunding RB
4.00%, 06/01/49	5,385	6,244,338
Series A, 5.00%, 06/01/24 (c)	7,000	7,952,070
Montgomery County Higher Education and Health Authority, Refunding RB, 4.00%, 09/01/44 (f)	3,100	3,566,116
Pennsylvania Economic Development Financing Authority, RB, Series B, 4.00%, 03/15/40	8,000	8,953,280
Pennsylvania Higher Educational Facilities Authority, RB, Series A, 4.00%, 08/15/39 (f)	7,815	8,121,894
St Mary Hospital Authority, Refunding RB, 5.00%, 12/01/48	3,754	4,858,591
		42,608,200
Housing 1.1%
Pennsylvania Housing Finance Agency, RB, S/F Housing, Series 114C, 3.70%, 10/01/42 (f)	2,439	2,447,352
State 3.2%
Commonwealth of Pennsylvania, GO, 1st Series, 4.00%, 03/01/38 (f)	6,000	7,036,320
Transportation 2.0%
Pennsylvania Turnpike Commission, RB, Sub-Series A, 5.50%, 12/01/42	1,680	2,082,293
Pennsylvania Turnpike Commission, Refunding RB, Sub-Series B-2, 5.00%, 06/01/35	1,850	2,288,413
		4,370,706

Security	Par (000)	Value
Utilities 1.8%
Westmoreland County Municipal Authority, Refunding RB, 5.00%, 08/15/42	$ 3,493	$ 4,060,758
Total Municipal Bonds in Pennsylvania		81,916,522
Total Municipal Bonds Transferred to Tender Option Bond Trusts 37.0% (Cost:
$73,521,054)		81,916,522
Total Long-Term Investments 157.3% (Cost: $316,214,521)		348,267,128
	Shares
Short-Term Securities
Money Market Funds
BlackRock Liquidity Funds, MuniCash, Institutional Class,
0.01% (g)(h)	25,901	25,907
Total Short-Term Securities 0.0% (Cost: $25,907)		25,907
Total Investments 157.3% (Cost: $316,240,428)		348,293,035
Liabilities in Excess of Other Assets (0.2)%		(551,153	)
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable
(19.9)%		(44,023,185	)
VRDP Shares at Liquidation Value, Net of Deferred Offering Costs (37.2)%		(82,334,769	)
Net Assets Applicable to Common Shares 100.0%		$ 221,383,928

(a) Variable rate security. Interest rate resets periodically. The rate shown is the effective interest rate as of period end. Security description also includes the reference rate and spread if published and available.

(b) Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

(c) U.S. 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.

(d) Zero-coupon bond.

(e) Represent bonds transferred to a TOB Trust in exchange of cash and residual certificates received by the Fund. These bonds serve as collateral in a secured borrowing. See Note 4 of the Notes to Financial Statements for details.

(f) All or a portion of the security is subject to a recourse agreement. The aggregate maximum potential amount the Fund could ultimately be required to pay under the agreements, which expire between February 15, 2022 to October 1, 2042, is $16,004,052. See Note 4 of the Notes to Financial Statements for details.

(g) Affiliate of the Fund.

(h) Annualized 7-day yield as of period end.

36 2 0 2 1 B L A C K R O C K A N N U A L R E P O R T T O S H A R E H O L D E R S

Schedule of Investments (continued) July 31, 2021 BlackRock MuniYield Pennsylvania Quality Fund (MPA)

Affiliates

| Affiliated Issuer | Value at 07/31/20 | Purchases at Cost | Proceeds from Sales | | Net Realized Gain (Loss) | Change in Unrealized Appreciation (Depreciation) | Value at 07/31/21 | | Income | Capital
Gain Distributions from Underlying Funds |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| BlackRock Liquidity Funds, MuniCash, Institutional Class | $ 1,880,644 | $ | $ (1,854,827 | ) (a) | $ 90 | $ | $ 25,907 | 25,901 | $ 236 | $ |

(a) Represents net amount purchased (sold).

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

Description			Notional Amount (000)	Value/ Unrealized Appreciation (Depreciation)
Short Contracts
10-Year U.S. Treasury Note	57	09/21/21	$ 7,668	$ (144,864	)
U.S. Long Bond	31	09/21/21	5,114	(271,607	)
5-Year U.S. Treasury Note	42	09/30/21	5,228	(48,994	)
				$ (465,465	)

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

	Commodity Contracts	Credit Contracts	Equity Contracts	Foreign Currency Exchange Contracts	Interest Rate Contracts	Other Contracts	Total
Liabilities Derivative Financial Instruments
Futures contracts
Unrealized depreciation on futures contracts (a)	$	$	$	$	$ 465,465	$	$ 465,465

For the year ended July 31, 2021, the effect of derivative financial instruments in the Statements of Operations was as follows:

	Commodity Contracts	Credit Contracts	Equity Contracts	Foreign Currency Exchange Contracts	Interest Rate Contracts		Other Contracts	Total
Net Realized Gain (Loss) from
Futures contracts	$	$	$	$	$ 520,777		$	$ 520,777
Net Change in Unrealized Appreciation (Depreciation) on
Futures contracts	$	$	$	$	$ (465,465	)	$	$ (465,465	)

Average Quarterly Balances of Outstanding Derivative Financial Instruments

Futures contracts
Average notional value of contracts short	$ 14,402,789

For more information about the Funds investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

S C H E D U L E O F I N V E S T M E N T S 37

Schedule of Investments (continued) July 31, 2021 BlackRock MuniYield Pennsylvania Quality Fund (MPA)

Fair Value Hierarchy as of Period End

	Level 1		Level 2	Level 3	Total
Assets
Investments
Long-Term Investments
Municipal Bonds	$		$ 266,350,606	$	$ 266,350,606
Municipal Bonds Transferred to Tender Option Bond Trusts			81,916,522		81,916,522
Short-Term Securities
Money Market Funds	25,907				25,907
	$ 25,907		$ 348,267,128	$	$ 348,293,035
Derivative Financial Instruments (a)
Liabilities
Interest Rate Contracts.	$ (465,465	)	$	$	$ (465,465)

(a) Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.

	Level 1	Level 2		Level 3	Total
Liabilities
TOB Trust Certificates	$	$ (44,011,584	)	$	$ (44,011,584	)
VRDP Shares at Liquidation Value		(82,600,000	)		(82,600,000	)
	$	$ (126,611,584	)	$	$ (126,611,584	)

See notes to financial statements.

38 2 0 2 1 B L A C K R O C K A N N U A L R E P O R T T O S H A R E H O L D E R S

Statements of Assets and Liabilities

July 31, 2021

	MUC	MUJ	MIY	MPA
ASSETS
Investments, at value unaffiliated (a)	$ 1,040,078,650	$ 767,438,850	$ 738,045,120	$ 348,267,128
Investments, at value affiliated (b)	19,391,202	22,337,405	2,854,776	25,907
Cash		11,111		7,157
Cash pledged for futures contracts		436,000		232,000
Receivables:
Investments sold	160,000
Dividends affiliated	95	106	46	19
Interest unaffiliated	12,838,544	4,901,761	7,362,145	3,010,822
Prepaid expenses	6,211	11,699	143,434	84,506
Total assets	1,072,474,702	795,136,932	748,405,521	351,627,539
ACCRUED LIABILITIES
Payables:
Investments purchased		4,280,000		2,755,000
Accounting services fees	127,799	102,939	99,652	57,745
Custodian fees	8,660	7,019	6,585	3,738
Income dividend distributions Common Shares	2,255,640	1,895,492	1,652,534	731,877
Interest expense and fees	43,675	17,944	14,531	11,601
Investment advisory fees	475,952	333,902	310,199	144,631
Directors and Officers fees	431,748	3,287	3,228	12,709
Other accrued expenses	35,584	29,525	32,182	87,422
Professional fees	59,381	50,183	49,499	42,655
Variation margin on futures contracts		93,330		49,880
Total accrued liabilities	3,438,439	6,813,621	2,168,410	3,897,258
OTHER LIABILITIES
TOB Trust Certificates	152,144,550	61,534,134	41,267,055	44,011,584
VRDP Shares, at liquidation value of $100,000 per share, net of deferred offering costs (c)(d)(e)		236,685,959	231,506,549	82,334,769
VMTP Shares, at liquidation value of $100,000 per
share (c)(d)(e)	254,000,000
Total other liabilities	406,144,550	298,220,093	272,773,604	126,346,353
Total liabilities	409,582,989	305,033,714	274,942,014	130,243,611
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS	$ 662,891,713	$ 490,103,218	$ 473,463,507	$ 221,383,928
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS CONSIST OF
Paid-in capital (f)(g)(h)	$ 581,443,889	$ 423,146,162	$ 418,118,813	$ 194,000,582
Accumulated earnings	81,447,824	66,957,056	55,344,694	27,383,346
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS	$ 662,891,713	$ 490,103,218	$ 473,463,507	$ 221,383,928
Net asset value per Common Share	$ 16.16	$ 16.29	$ 16.04	$ 16.64
(a) Investments, at cost
unaffiliated	$ 940,259,364	$ 693,151,829	$ 676,317,036	$ 316,214,521
(b) Investments, at cost
affiliated	$ 19,383,437	$ 22,337,405	$ 2,853,807	$ 25,907
(c) Preferred Shares outstanding	2,540	2,371	2,319	826
(d) Preferred Shares authorized	18,140	10,491	8,919	1,000,000
(e) Par value per Preferred Share	$ 0.10	$ 0.10	$ 0.10	$ 0.05
(f) Common Shares outstanding	41,011,636	30,087,169	29,509,535	13,306,848
(g) Common Shares authorized	199,981,860	199,989,509	199,991,081	Unlimited
(h) Par value per Common Share	$ 0.10	$ 0.10	$ 0.10	$ 0.10

See notes to financial statements.

F I N A N C I A L S T A T E M E N T S 39

Statements of Operations

Year Ended July 31, 2021

	MUC
INVESTMENT INCOME
Dividends affiliated	$ 2,216	$	854	$	395	$	236
Interest unaffiliated	36,004,012		28,980,070		26,895,901		12,315,465
Total investment income	36,006,228		28,980,924		26,896,296		12,315,701
EXPENSES
Investment advisory	5,846,689		3,900,949		3,627,617		1,715,574
Accounting services	139,142		112,041		108,488		62,836
Directors and Officer	128,553		28,101		27,585		15,814
Professional	77,782		76,660		57,618		62,693
Transfer agent	40,362		36,810		37,843		29,485
Registration	13,982		10,285		10,089		8,323
Custodian	9,502		7,548		6,845		2,967
Liquidity fees			24,154				675,405
Remarketing fees on Preferred Shares			23,694				42,063
Miscellaneous	78,115		72,633		73,466		72,375
Total expenses excluding interest expense, fees and amortization of offering costs	6,334,127		4,292,875		3,949,551		2,687,535
Interest expense, fees and amortization of offering
costs (a)	3,177,611		2,635,253		2,759,468		503,475
Total expenses	9,511,738		6,928,128		6,709,019		3,191,010
Less:
Fees waived and/or reimbursed by the Manager	(332,199	)	(4,875	)	(2,522	)	(1,537	)
Total expenses after fees waived and/or reimbursed	9,179,539		6,923,253		6,706,497		3,189,473
Net investment income	26,826,689		22,057,671		20,189,799		9,126,228
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain from:
Investments unaffiliated	43,918		495,928		325,067		256,640
Investments affiliated	2,710		625		775		90
Futures contracts	1,456,642		886,497				520,777
	1,503,270		1,383,050		325,842		777,507
Net change in unrealized appreciation (depreciation) on:
Investments unaffiliated	7,305,324		13,647,081		3,731,560		6,591,500
Investments affiliated	7,842		(365	)	(486	)
Futures contracts			(848,367	)			(465,465	)
	7,313,166		12,798,349		3,731,074		6,126,035
Net realized and unrealized gain	8,816,436		14,181,399		4,056,916		6,903,542
NET INCREASE IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS RESULTING FROM OPERATIONS	$ 35,643,125	$	36,239,070	$	24,246,715	$	16,029,770

(a) Related to TOB Trusts, VMTP Shares and/or VRDP Shares.

See notes to financial statements.

40 2 0 2 1 B L A C K R O C K A N N U A L R E P O R T T O S H A R E H O L D E R S

Statements of Changes in Net Assets

	MUC
	Year Ended July 31,			Year Ended July 31,
	2021	2020		2021		2020
INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS
OPERATIONS
Net investment income	$ 26,826,689	$	23,910,053	$	22,057,671	$	20,766,165
Net realized gain (loss)	1,503,270		(14,683,337	)	1,383,050		(5,204,338	)
Net change in unrealized appreciation (depreciation)	7,313,166		29,113,036		12,798,349		216,496
Net increase in net assets applicable to Common Shareholders resulting from operations	35,643,125		38,339,752		36,239,070		15,778,323
DISTRIBUTIONS TO COMMON SHAREHOLDERS (a)
Decrease in net assets resulting from distributions to Common Shareholders	(26,734,123	)	(22,325,852	)	(22,445,028	)	(19,607,452	)
CAPITAL SHARE TRANSACTIONS
Reinvestment of common distributions	146,828
Redemption of shares resulting from share repurchase program (including transaction costs)							(886,136	)
Net increase (decrease) in net assets derived from capital share transactions	146,828						(886,136	)
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS
Total increase (decrease) in net assets applicable to Common Shareholders	9,055,830		16,013,900		13,794,042		(4,715,265	)
Beginning of year	653,835,883		637,821,983		476,309,176		481,024,441
End of year	$ 662,891,713	$	653,835,883	$	490,103,218	$	476,309,176

(a) Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

See notes to financial statements.

F I N A N C I A L S T A T E M E N T S 41

Statements of Changes in Net Assets (continued)

	MIY
	Year Ended July 31,			Year Ended July 31,
	2021	2020		2021		2020
INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS
OPERATIONS
Net investment income	$ 20,189,799	$	18,741,480	$	9,126,228	$	8,621,926
Net realized gain (loss)	325,842		(4,427,689	)	777,507		(3,034,767	)
Net change in unrealized appreciation (depreciation) .	3,731,074		8,459,328		6,126,035		2,289,761
Net increase in net assets applicable to Common Shareholders resulting from operations	24,246,715		22,773,119		16,029,770		7,876,920
DISTRIBUTIONS TO COMMON SHAREHOLDERS (a)
Decrease in net assets resulting from distributions to Common Shareholders	(19,535,312	)	(17,499,956	)	(8,782,520	)	(7,602,490	)
CAPITAL SHARE TRANSACTIONS
Redemption of shares resulting from share repurchase program (including transaction costs)			(886,694	)	(18,678	)	(478,011	)
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS
Total increase (decrease) in net assets applicable to Common Shareholders	4,711,403		4,386,469		7,228,572		(203,581	)
Beginning of year	468,752,104		464,365,635		214,155,356		214,358,937
End of year	$ 473,463,507	$	468,752,104	$	221,383,928	$	214,155,356

(a) Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

See notes to financial statements.

42 2 0 2 1 B L A C K R O C K A N N U A L R E P O R T T O S H A R E H O L D E R S

Statements of Cash Flows

Year Ended July 31, 2021

	MUC
CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES
Net increase in net assets resulting from operations	$ 35,643,125	$	36,239,070	$	24,246,715	$	16,029,770
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by
operating activities
Proceeds from sales of long-term investments	59,434,940		110,744,359		54,896,775		48,955,850
Purchases of long-term investments	(44,709,631	)	(75,373,749	)	(61,166,831	)	(45,382,953	)
Net proceeds from sales (purchases) of short-term securities	(17,508,920	)	(26,565,717	)	1,023,485		5,251,326
Amortization of premium and accretion of discount on investments and other fees	6,830,957		875,614		4,384,470		1,293,977
Net realized gain on investments	(46,628	)	(496,553	)	(325,842	)	(256,730	)
Net unrealized appreciation on investments	(7,313,166	)	(13,646,716	)	(3,731,074	)	(6,591,500	)
(Increase) Decrease in Assets
Receivables
Dividends affiliated	(29	)	127		97		45
Interest unaffiliated	657,898		635,676		153,669		241,043
Prepaid expenses	14,758		25,884		(21,742	)	24,837
Increase (Decrease) in Liabilities
Payables
Accounting services fees	58,867		47,005		45,610		26,501
Custodian fees	1,323		2,838		2,180		(706	)
Interest expense and fees	(345,176	)	(76,067	)	(45,911	)	(78,048	)
Investment advisory fees	14,198		5,633		4,696		543
Directors and Officers fees	85,961		(15	)	229		2,420
Other accrued expenses	2,546		(4,012	)	36,905		51,503
Professional fees	(30,583	)	(19,365	)	(32,016	)	(16,632	)
Variation margin on futures contracts			93,330				49,880
Net cash provided by operating activities	32,790,440		32,487,342		19,471,415		19,601,126
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES
Cash dividends paid to Common Shareholders	(26,422,782	)	(22,294,592	)	(19,387,764	)	(8,783,352	)
Repayments of TOB Trust Certificates	(6,367,658	)	(9,765,607	)	(95,000	)	(11,034,997	)
Repayments of Loan for TOB Trust Certificates							(560,000	)
Net payments on Common Shares redeemed							(59,457	)
Proceeds from TOB Trust Certificates							564,999
Proceeds from Loan for TOB Trust Certificates							560,000
Decrease in bank overdraft							(69,468	)
Amortization of deferred offering costs			19,968		11,349		20,306
Net cash used for financing activities	(32,790,440	)	(32,040,231	)	(19,471,415	)	(19,361,969	)
CASH
Net increase in restricted and unrestricted cash			447,111				239,157
Restricted and unrestricted cash at beginning of year
Restricted and unrestricted cash at end of year	$	$	447,111	$		$	239,157
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid during the year for interest expense	$ 3,522,787	$	2,691,352	$	2,794,030	$	561,217
NON-CASH FINANCING ACTIVITIES
Capital shares issued in reinvestment of distributions paid to Common Shareholders	$ 146,828	$		$		$
RECONCILIATION OF RESTRICTED AND UNRESTRICTED CASH AT THE END OF YEAR TO THE STATEMENTS OF ASSETS AND
LIABILITIES
Cash	$	$	11,111	$		$	7,157
Cash pledged
Futures contracts			436,000				232,000
	$	$	447,111	$		$	239,157

See notes to financial statements.

F I N A N C I A L S T A T E M E N T S 43

Financial Highlights

(For a share outstanding throughout each period)

	MUC
	Year Ended July 31,
	2021	2020		2019		2018		2017
Net asset value, beginning of year	$ 15.95	$	15.56	$	15.03	$	15.53	$	16.51
Net investment income (a)	0.65		0.58		0.57		0.64		0.69
Net realized and unrealized gain (loss)	0.21		0.35		0.54		(0.47	)	(0.93	)
Net increase (decrease) from investment operations	0.86		0.93		1.11		0.17		(0.24	)
Distributions to Common Shareholders (b)
From net investment income	(0.65	)	(0.54	)	(0.57	)	(0.67	)	(0.74	)
From net realized gain					(0.01	)
Total distributions to Common Shareholders	(0.65	)	(0.54	)	(0.58	)	(0.67	)	(0.74	)
Net asset value, end of year	$ 16.16	$	15.95	$	15.56	$	15.03	$	15.53
Market price, end of year	$ 16.09	$	14.67	$	14.00	$	13.07	$	14.75
Total Return Applicable to Common Shareholders (c)
Based on net asset value	5.78	%	6.55	%	8.17	%	1.54	%	(1.08	)%
Based on market price	14.52	%	8.92	%	11.92	%	(7.03	)%	(4.73	)%
Ratios to Average Net Assets Applicable to Common Shareholders
Total expenses	1.46	%	2.11	%	2.58	%	2.38	%	2.04	%
Total expenses after fees waived and/or reimbursed	1.41	%	2.05	%	2.50	%	2.29	%	1.96	%
Total expenses after fees waived and/or reimbursed and excluding interest expense, fees, and amortization of
offering costs (d)	0.92	%	0.92	%	0.92	%	0.93	%	0.93	%
Net investment income to Common Shareholders	4.11	%	3.75	%	3.82	%	4.20	%	4.44	%
Supplemental Data
Net assets applicable to Common Shareholders, end of year (000)	$ 662,892	$	653,836	$	637,822	$	616,387	$	636,865
VMTP Shares outstanding at $100,000 liquidation value, end of year (000)	$ 254,000	$	254,000	$	254,000	$	254,000	$	254,000
Asset coverage per VMTP Shares at $100,000 liquidation value, end of year	$ 360,981	$	357,416	$	351,111	$	342,672	$	350,734
Borrowings outstanding, end of year (000)	$ 152,145	$	158,512	$	159,555	$	185,905	$	181,685
Portfolio turnover rate	4	%	16	%	24	%	24	%	19	%

(a) Based on average Common Shares outstanding.

(b) Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(c) Total returns based on market price, which can be significantly greater or less than the net asset value, may result in substantially different returns. Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions at actual reinvestment prices.

(d) Interest expense, fees and amortization of offering costs related to TOB Trusts and/or VMTP Shares. See Note 4 and Note 10 of the Notes to Financial Statements for details.

See notes to financial statements.

44 2 0 2 1 B L A C K R O C K A N N U A L R E P O R T T O S H A R E H O L D E R S

Financial Highlights (continued)

(For a share outstanding throughout each period)

	MUJ
	Year Ended July 31,
	2021	2020		2019		2018		2017
Net asset value, beginning of year	$ 15.83	$	15.95	$	15.28	$	15.57	$	16.55
Net investment income (a)	0.73		0.69		0.66		0.71		0.77
Net realized and unrealized gain (loss)	0.48		(0.16	)	0.64		(0.26	)	(0.94	)
Net increase (decrease) from investment operations	1.21		0.53		1.30		0.45		(0.17	)
Distributions to Common Shareholders from net investment
income (b)	(0.75	)	(0.65	)	(0.63	)	(0.74	)	(0.81	)
Net asset value, end of year	$ 16.29	$	15.83	$	15.95	$	15.28	$	15.57
Market price, end of year	$ 15.63	$	14.21	$	14.43	$	12.90	$	14.88
Total Return Applicable to Common Shareholders (c)
Based on net asset value	8.22	%	3.98	%	9.44	%	3.52	%	(0.57	)%
Based on market price	15.67	%	3.17	%	17.28	%	(8.55	)%	(2.44	)%
Ratios to Average Net Assets Applicable to Common Shareholders
Total expenses	1.44	%	2.14	%	2.49	%	2.23	%	1.89	%
Total expenses after fees waived and/or reimbursed	1.44	%	2.14	%	2.49	%	2.23	%	1.89	%
Total expenses after fees waived and/or reimbursed and excluding interest expense, fees, and amortization of
offering costs (d)(e)	0.89	%	0.92	%	0.92	%	0.93	%	0.91	%
Net investment income to Common Shareholders	4.59	%	4.39	%	4.28	%	4.60	%	4.95	%
Supplemental Data
Net assets, end of year (000)	$ 490,103	$	476,309	$	481,024	$	460,727	$	469,417
VRDP Shares outstanding at $100,000 liquidation value, end of year (000)	$ 237,100	$	237,100	$	237,100	$	237,100	$	237,100
Asset coverage per VRDP Shares at $100,000 liquidation value, end of year	$ 306,707	$	300,890	$	302,878	$	294,318	$	297,983
Borrowings outstanding, end of year (000)	$ 61,534	$	71,300	$	59,415	$	62,747	$	63,877
Portfolio turnover rate	10	%	13	%	8	%	14	%	8	%

(a) Based on average Common Shares outstanding.

(b) Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(d) Interest expense, fees and amortization of offering costs related to TOB Trusts and/or VRDP Shares. See Note 4 and Note 10 of the Notes to Financial Statements for details.

(e) The total expense ratio after fees waived and/or reimbursed and excluding interest expense, fees, amortization of offering costs, liquidity and remarketing fees as follows:

2021	2020	2019	2018	2017
Expense ratios	0.88 %	0.91 %	0.91 %	0.93 %	0.91 %

See notes to financial statements.

F I N A N C I A L H I G H L I G H T S 45

Financial Highlights (continued)

(For a share outstanding throughout each period)

	MIY
	Year Ended July 31,
	2021	2020		2019		2018		2017
Net asset value, beginning of year	$ 15.88	$	15.70	$	15.04	$	15.48	$	16.36
Net investment income (a)	0.68		0.63		0.62		0.69		0.75
Net realized and unrealized gain (loss)	0.14		0.14		0.66		(0.42	)	(0.86	)
Net increase (decrease) from investment operations	0.82		0.77		1.28		0.27		(0.11	)
Distributions to Common Shareholders from net investment
income (b)	(0.66	)	(0.59	)	(0.62	)	(0.71	)	(0.77	)
Net asset value, end of year	$ 16.04	$	15.88	$	15.70	$	15.04	$	15.48
Market price, end of year	$ 15.80	$	14.24	$	14.24	$	12.89	$	14.19
Total Return Applicable to Common Shareholders (c)
Based on net asset value	5.61	%	5.52	%	9.42	%	2.37	%	(0.07	)%
Based on market price	16.02	%	4.31	%	15.80	%	(4.29	)%	(2.56	)%
Ratios to Average Net Assets Applicable to Common Shareholders
Total expenses	1.44	%	2.07	%	2.46	%	2.16	%	1.88	%
Total expenses after fees waived and/or reimbursed	1.44	%	2.07	%	2.46	%	2.16	%	1.88	%
Total expenses after fees waived and/or reimbursed and excluding interest expense, fees, and amortization of
offering costs (d)(e)	0.85	%	1.20	%	1.09	%	0.89	%	0.89	%
Net investment income to Common Shareholders	4.32	%	4.06	%	4.11	%	4.49	%	4.81	%
Supplemental Data
Net assets applicable to Common Shareholders, end of year (000)	$ 473,464	$	468,752	$	464,366	$	444,947	$	457,888
VRDP Shares outstanding at $100,000 liquidation value, end of year (000)	$ 231,900	$	231,900	$	231,900	$	231,900	$	231,900
Asset coverage per VRDP Shares at $100,000 liquidation value, end of year	$ 304,167	$	302,135	$	300,244	$	291,870	$	297,450
Borrowings outstanding, end of year (000)	$ 41,267	$	41,362	$	64,527	$	60,002	$	52,002
Portfolio turnover rate	7	%	9	%	15	%	8	%	13	%

(a) Based on average Common Shares outstanding.

(b) Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(d) Interest expense, fees and amortization of offering costs related to TOB Trusts and/or VRDP Shares. See Note 4 and Note 10 of the Notes to Financial Statements for details.

(e) The total expense ratio after fees waived and/or reimbursed and excluding interest expense, fees, amortization of offering costs, liquidity and remarketing fees as follows:

2021	2020	2019	2018	2017
Expense ratios	0.85 %	0.88 %	0.90 %	0.89 %	0.89 %

See notes to financial statements.

46 2 0 2 1 B L A C K R O C K A N N U A L R E P O R T T O S H A R E H O L D E R S

Financial Highlights (continued)

(For a share outstanding throughout each period)

	MPA
	Year Ended July 31,
	2021	2020		2019		2018		2017
Net asset value, beginning of year	$ 16.09	$	16.06	$	15.27	$	15.74	$	16.76
Net investment income (a)	0.69		0.65		0.63		0.71		0.76
Net realized and unrealized gain (loss)	0.52		(0.05	)	0.80		(0.47	)	(1.03	)
Net increase (decrease) from investment operations	1.21		0.60		1.43		0.24		(0.27	)
Distributions to Common Shareholders from net investment
income (b)	(0.66	)	(0.57	)	(0.64	)	(0.71	)	(0.75	)
Net asset value, end of year	$ 16.64	$	16.09	$	16.06	$	15.27	$	15.74
Market price, end of year	$ 16.23	$	14.09	$	14.18	$	13.26	$	14.69
Total Return Applicable to Common Shareholders (c)
Based on net asset value	8.09	%	4.33	%	10.32	%	2.09	%	(1.20	)%
Based on market price	20.40	%	3.47	%	12.18	%	(5.01	)%	(3.83	)%
Ratios to Average Net Assets Applicable to Common Shareholders
Total expenses	1.48	%	2.13	%	2.55	%	2.26	%	1.91	%
Total expenses after fees waived and/or reimbursed	1.48	%	2.12	%	2.55	%	2.26	%	1.91	%
Total expenses after fees waived and/or reimbursed and excluding interest expense, fees, and amortization of
offering costs (d)(e)	1.25	%	1.23	%	0.99	%	0.95	%	0.94	%
Net investment income to Common Shareholders	4.24	%	4.08	%	4.11	%	4.56	%	4.83	%
Supplemental Data
Net assets applicable to Common Shareholders, end of year (000)	$ 221,384	$	214,155	$	214,359	$	203,956	$	210,170
VRDP Shares outstanding at $100,000 liquidation value, end of year (000)	$ 82,600	$	82,600	$	82,600	$	82,600	$	82,600
Asset coverage per VRDP Shares at $100,000 liquidation value, end of year	$ 368,019	$	359,268	$	359,514	$	346,921	$	354,444
Borrowings outstanding, end of year (000)	$ 44,012	$	54,482	$	52,814	$	58,176	$	55,826
Portfolio turnover rate	13	%	12	%	21	%	21	%	15	%

(a) Based on average Common Shares outstanding.

(b) Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(d) Interest expense, fees and amortization of offering costs related to TOB Trusts and/or VRDP Shares. See Note 4 and Note 10 of the Notes to Financial Statements for details.

(e) The total expense ratio after fees waived and/or reimbursed and excluding interest expense, fees, amortization of offering costs, liquidity and remarketing fees as follows:

2021	2020	2019	2018	2017
Expense ratios	0.92 %	0.93 %	0.96 %	0.95 %	0.94 %

See notes to financial statements.

F I N A N C I A L H I G H L I G H T S 47

Notes to Financial Statements

ORGANIZATION

The following are registered under the Investment Company Act of 1940, as amended (the 1940 Act), as closed-end management investment companies and are referred to herein collectively as the Funds, or individually as a Fund:

Fund Name — BlackRock MuniHoldings California Quality Fund, Inc.	MUC	Maryland	Diversified
BlackRock MuniHoldings New Jersey Quality Fund, Inc.	MUJ	Maryland	Non-diversified
BlackRock MuniYield Michigan Quality Fund, Inc.	MIY	Maryland	Non-diversified
BlackRock MuniYield Pennsylvania Quality Fund	MPA	Massachusetts	Non-diversified

The Boards of Directors and Boards of Trustees of the Funds are collectively referred to throughout this report as the Board, and the directors/trustees thereof are collectively referred to throughout this report as Directors. The Funds determine and make available for publication the net asset values (NAVs) of their Common Shares on a daily basis.

The Funds, together with certain other registered investment companies advised by BlackRock Advisors, LLC (the Manager) or its affiliates, are included in a complex of non-index fixed-income mutual funds and all BlackRock-advised closed-end funds referred to as the BlackRock Fixed-Income Complex.

SIGNIFICANT ACCOUNTING POLICIES

The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. Below is a summary of significant accounting policies:

Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions, if any, are recorded on the ex-dividend dates. Non-cash dividends, if any, are recorded on the ex-dividend dates at fair value. Interest income, including amortization and accretion of premiums and discounts on debt securities, is recognized daily on an accrual basis.

Segregation and Collateralization: In cases where a Fund enters into certain investments (e.g., futures contracts) or certain borrowings (e.g.,TOB Trust transactions) that would be treated as senior securities for 1940 Act purposes, a Fund may segregate or designate on its books and records cash or liquid assets having a market value at least equal to the amount of its future obligations under such investments or borrowings. Doing so allows the investment or borrowings to be excluded from treatment as a senior security. Furthermore, if required by an exchange or counterparty agreement, the Funds may be required to deliver/deposit cash and/or securities to/with an exchange, or broker-dealer or custodian as collateral for certain investments or obligations.

Distributions: Distributions from net investment income are declared and paid monthly. Distributions of capital gains are recorded on the ex-dividend dates and made at least annually. The character and timing of distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

Distributions to Preferred Shareholders are accrued and determined as described in Note 10.

Deferred Compensation Plan: Under the Deferred Compensation Plan (the Plan) approved by each Funds Board, the directors who are not interested persons of the Funds, as defined in the 1940 Act (Independent Directors), may defer a portion of their annual complex-wide compensation. Deferred amounts earn an approximate return as though equivalent dollar amounts had been invested in common shares of certain funds in the BlackRock Fixed-Income Complex selected by the Independent Directors. This has the same economic effect for the Independent Directors as if the Independent Directors had invested the deferred amounts directly in certain funds in the BlackRock Fixed-Income Complex.

The Plan is not funded and obligations thereunder represent general unsecured claims against the general assets of each Fund, as applicable. Deferred compensation liabilities, if any, are included in the Directors and Officers fees payable in the Statements of Assets and Liabilities and will remain as a liability of the Funds until such amounts are distributed in accordance with the Plan.

Indemnifications: In the normal course of business, a Fund enters into contracts that contain a variety of representations that provide general indemnification. A Funds maximum exposure under these arrangements is unknown because it involves future potential claims against a Fund, which cannot be predicted with any certainty.

Other: Expenses directly related to a Fund are charged to that Fund. Other operating expenses shared by several funds, including other funds managed by the Manager, are prorated among those funds on the basis of relative net assets or other appropriate methods.

48 2 0 2 1 B L A C K R O C K A N N U A L R E P O R T T O S H A R E H O L D E R S

Notes to Financial Statements (continued)

INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

Investment Valuation Policies: Each Funds investments are valued at fair value (also referred to as market value within the financial statements) each day that the Fund is open for business and, for financial reporting purposes, as of the report date. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. Each Fund determines the fair values of its financial instruments using various independent dealers or pricing services under policies approved by the Board. If a securitys market price is not readily available or does not otherwise accurately represent the fair value of the security, the security will be valued in accordance with a policy approved by the Board as reflecting fair value. The BlackRock Global Valuation Methodologies Committee (the Global Valuation Committee) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.

Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of each Funds assets and liabilities:

Fixed-income investments for which market quotations are readily available are generally valued using the last available bid price or current market quotations provided by independent dealers or third party pricing services. Pricing services generally value fixed-income securities assuming orderly transactions of an institutional round lot size, but a fund may hold or transact in such securities in smaller, odd lot sizes. Odd lots may trade at lower prices than institutional round lots. The pricing services may use matrix pricing or valuation models that utilize certain inputs and assumptions to derive values, including transaction data (e.g., recent representative bids and offers), market data, credit quality information, perceived market movements, news, and other relevant information. Certain fixed-income securities, including asset-backed and mortgage related securities may be valued based on valuation models that consider the estimated cash flows of each tranche of the entity, establish a benchmark yield and develop an estimated tranche specific spread to the benchmark yield based on the unique attributes of the tranche. The amortized cost method of valuation may be used with respect to debt obligations with sixty days or less remaining to maturity unless the Manager determines such method does not represent fair value.

Investments in open-end U.S. mutual funds (including money market funds) are valued at that days published NAV.

Futures contracts are valued based on that days last reported settlement or trade price on the exchange where the contract is traded.

If events (e.g., market volatility, company announcement or a natural disaster) occur that are expected to materially affect the value of such investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, or its delegate, in accordance with a policy approved by the Board as reflecting fair value (Fair Valued Investments). The fair valuation approaches that may be used by the Global Valuation Committee include market approach, income approach and cost approach. Valuation techniques such as discounted cash flow, use of market comparables and matrix pricing are types of valuation approaches and are typically used in determining fair value. When determining the price for Fair Valued Investments, the Global Valuation Committee, or its delegate, seeks to determine the price that each Fund might reasonably expect to receive or pay from the current sale or purchase of that asset or liability in an arms-length transaction. Fair value determinations shall be based upon all available factors that the Global Valuation Committee, or its delegate, deems relevant and consistent with the principles of fair value measurement. The pricing of all Fair Valued Investments is subsequently reported to the Board or a committee thereof on a quarterly basis.

Fair Value Hierarchy: Various inputs are used in determining the fair value of financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:

Level 1 Unadjusted price quotations in active markets/exchanges for identical assets or liabilities that each Fund has the ability to access;

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 marketcorroborated inputs); and

Level 3 Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Global Valuation Committees assumptions used in determining the fair value of financial instruments).

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the Global Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by privately held companies or funds that may not have a secondary market and/or may have a limited number of investors. The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.

SECURITIES AND OTHER INVESTMENTS

Zero-Coupon Bonds: Zero-coupon bonds are normally issued at a significant discount from face value and do not provide for periodic interest payments. These bonds may experience greater volatility in market value than other debt obligations of similar maturity which provide for regular interest payments.

Forward Commitments, When-Issued and Delayed Delivery Securities: The Funds may purchase securities on a when-issued basis and may purchase or sell securities on a forward commitment basis. Settlement of such transactions normally occurs within a month or more after the purchase or sale commitment is made. The Funds may purchase securities under such conditions with the intention of actually acquiring them, but may enter into a separate agreement to sell the securities before the settlement

N O T E S T O F I N A N C I A L S T A T E M E N T S 49

Notes to Financial Statements (continued)

date. Since the value of securities purchased may fluctuate prior to settlement, the Funds may be required to pay more at settlement than the security is worth. In addition, a Fund is not entitled to any of the interest earned prior to settlement. When purchasing a security on a delayed delivery basis, the Funds assume the rights and risks of ownership of the security, including the risk of price and yield fluctuations. In the event of default by the counterparty, the Funds maximum amount of loss is the unrealized appreciation of unsettled when-issued transactions.

Municipal Bonds Transferred to TOB Trusts: The Funds leverage their assets through the use of TOB Trust transactions. The funds transfer municipal bonds into a special purpose trust (a TOB Trust). A TOB Trust issues two classes of beneficial interests: short-term floating rate interests (TOB Trust Certificates), which are sold to third party investors, and residual inverse floating rate interests (TOB Residuals), which are issued to the participating funds that contributed the municipal bonds to the TOB Trust. The TOB Trust Certificates have interest rates that reset weekly and their holders have the option to tender such certificates to the TOB Trust for redemption at par and any accrued interest at each reset date. The TOB Residuals held by a fund provide the fund with the right to cause the holders of a proportional share of the TOB Trust Certificates to tender their certificates to the TOB Trust at par plus accrued interest. The funds may withdraw a corresponding share of the municipal bonds from the TOB Trust. Other funds managed by the investment adviser may also contribute municipal bonds to a TOB Trust into which a fund has contributed bonds. If multiple BlackRock-advised funds participate in the same TOB Trust, the economic rights and obligations under the TOB Residuals will be shared among the funds ratably in proportion to their participation in the TOB Trust.

TOB Trusts are supported by a liquidity facility provided by a third party bank or other financial institution (the Liquidity Provider) that allows the holders of the TOB Trust Certificates to tender their certificates in exchange for payment of par plus accrued interest on any business day. The tendered TOB Trust Certificates are remarketed by a Remarketing Agent. In the event of a failed remarketing, the TOB Trust may draw upon a loan from the Liquidity Provider to purchase the tendered TOB Trust Certificates. Any loans made by the Liquidity Provider will be secured by the purchased TOB Trust Certificates held by the TOB Trust and will be subject to an increased interest rate based on number of days the loan is outstanding.

The TOB Trust may be collapsed without the consent of a fund, upon the occurrence of a termination event as defined in the TOB Trust agreement. Upon the occurrence of a termination event, a TOB Trust would be liquidated with the proceeds applied first to any accrued fees owed to the trustee of the TOB Trust, the Remarketing Agent and the Liquidity Provider. Upon certain termination events, TOB Trust Certificates holders will be paid before the TOB Residuals holders (i.e., the Funds) whereas in other termination events, TOB Trust Certificates holders and TOB Residuals holders will be paid pro rata.

While a funds investment policies and restrictions expressly permit investments in inverse floating rate securities, such as TOB Residuals, they restrict the ability of a fund to borrow money for purposes of making investments. MIY and MPA management believes that a funds restrictions on borrowings do not apply to the funds TOB Trust transactions. Each funds transfer of the municipal bonds to a TOB Trust is considered a secured borrowing for financial reporting purposes. The cash received by the TOB Trust from the sale of the TOB Trust Certificates, less certain transaction expenses, is paid to a fund. A fund typically invests the cash received in additional municipal bonds.

Accounting for TOB Trusts: The municipal bonds deposited into a TOB Trust are presented in a funds Schedule of Investments and the TOB Trust Certificates are shown in Other Liabilities in the Statements of Assets and Liabilities. Any loans drawn by the TOB Trust pursuant to the liquidity facility to purchase tendered TOB Trust Certificates are shown as Loan for TOB Trust Certificates. The carrying amount of a funds payable to the holder of the TOB Trust Certificates, as reported in the Statements of Assets and Liabilities as TOB Trust Certificates, approximates its fair value.

Interest income, including amortization and accretion of premiums and discounts, from the underlying municipal bonds is recorded by a fund on an accrual basis. Interest expense incurred on the TOB Trust transaction and other expenses related to remarketing, administration, trustee, liquidity and other services to a TOB Trust are shown as interest expense, fees and amortization of offering costs in the Statements of Operations. Fees paid upon creation of the TOB Trust are recorded as debt issuance costs and are amortized to interest expense, fees and amortization of offering costs in the Statements of Operations to the expected maturity of the TOB Trust. In connection with the restructurings of the TOB Trusts to non-bank sponsored TOB Trusts, a fund incurred non-recurring, legal and restructuring fees, which are recorded as interest expense, fees and amortization of offering costs in the Statements of Operations. Amounts recorded within interest expense, fees and amortization of offering costs in the Statements of Operations are:

Fund Name	Interest Expense	Liquidity Fees	Other Expenses	Total
MUC	$ 180,481	$ 705,205	$ 210,370	$ 1,096,056
MUJ	93,457	226,621	131,659	451,737
MIY	69,041	174,098	46,870	290,009
MPA	68,950	221,442	66,954	357,346

For the year ended July 31, 2021, the following table is a summary of each Funds TOB Trusts:

Fund Name — MUC	$ 324,201,566	$ 152,144,550	Range of Interest Rates on TOB Trust Certificates at Period End — 0.04% 0.12 %	$ 156,959,546	Daily Weighted Average Rate of Interest and Other Expenses on TOB Trusts — 0.70 %
MUJ	113,611,126	61,534,134	0.02 0.18	62,102,040	0.73
MIY	81,374,616	41,267,055	0.05 0.19	41,352,424	0.70

50 2 0 2 1 B L A C K R O C K A N N U A L R E P O R T T O S H A R E H O L D E R S

Notes to Financial Statements (continued)

Fund Name — MPA	$ 81,916,522	$ 44,011,584	Range of Interest Rates on TOB Trust Certificates at Period End — 0.05% 0.18 %	$ 52,018,346	Daily Weighted Average Rate of Interest and Other Expenses on TOB Trusts — 0.69 %

(a) The municipal bonds transferred to a TOB Trust are generally high grade municipal bonds. In certain cases, when municipal bonds transferred are lower grade municipal bonds, the TOB Trust transaction may include a credit enhancement feature that provides for the timely payment of principal and interest on the bonds to the TOB Trust by a credit enhancement provider in the event of default of the municipal bond. The TOB Trust would be responsible for the payment of the credit enhancement fee and the funds, as TOB Residuals holders, would be responsible for reimbursement of any payments of principal and interest made by the credit enhancement provider. The maximum potential amounts owed by the funds, for such reimbursements, as applicable, are included in the maximum potential amounts disclosed for recourse TOB Trusts in the Schedules of Investments.

(b) TOB Trusts may be structured on a non-recourse or recourse basis. When a Fund invests in TOB Trusts on a non-recourse basis, the Liquidity Provider may be required to make a payment under the liquidity facility to allow the TOB Trust to repurchase TOB Trust Certificates. The Liquidity Provider will be reimbursed from the liquidation of bonds held in the TOB Trust. If a fund invests in a TOB Trust on a recourse basis, a fund enters into a reimbursement agreement with the Liquidity Provider where a fund is required to reimburse the Liquidity Provider for any shortfall between the amount paid by the Liquidity Provider and proceeds received from liquidation of municipal bonds held in the TOB Trust (the Liquidation Shortfall). As a result, if a fund invests in a recourse TOB Trust, a fund will bear the risk of loss with respect to any Liquidation Shortfall. If multiple funds participate in any such TOB Trust, these losses will be shared ratably, including the maximum potential amounts owed by a fund at July 31, 2021, in proportion to their participation in the TOB Trust. The recourse TOB Trusts are identified in the Schedules of Investments including the maximum potential amounts owed by a fund at July 31, 2021.

For the year ended July 31, 2021, the following table is a summary of each Funds Loan for TOB Trust Certificates:

Fund Name — MPA	Loans Outstanding at Period End — $	%	Average Loans Outstanding — $ 1,534	0.71 %

DERIVATIVE FINANCIAL INSTRUMENTS

The Funds engage in various portfolio investment strategies using derivative contracts both to increase the returns of the Funds and/or to manage their exposure to certain risks such as credit risk, equity risk, interest rate risk, foreign currency exchange rate risk, commodity price risk or other risks (e.g., inflation risk). Derivative financial instruments categorized by risk exposure are included in the Schedules of Investments. These contracts may be transacted on an exchange or over-the-counter (OTC).

Futures Contracts: Futures contracts are purchased or sold to gain exposure to, or manage exposure to, changes in interest rates (interest rate risk) and changes in the value of equity securities (equity risk) or foreign currencies (foreign currency exchange rate risk).

Futures contracts are exchange-traded agreements between the Funds and a counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and on a specified date. Depending on the terms of a contract, it is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date. Upon entering into a futures contract, the Funds are required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on a contracts size and risk profile. The initial margin deposit must then be maintained at an established level over the life of the contract. Amounts pledged, which are considered restricted, are included in cash pledged for futures contracts in the Statements of Assets and Liabilities.

Securities deposited as initial margin are designated in the Schedules of Investments and cash deposited, if any, are shown as cash pledged for futures contracts in the Statements of Assets and Liabilities. Pursuant to the contract, the Funds agree to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (variation margin). Variation margin is recorded as unrealized appreciation (depreciation) and, if any, shown as variation margin receivable (or payable) on futures contracts in the Statements of Assets and Liabilities. When the contract is closed, a realized gain or loss is recorded in the Statements of Operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and interest rates, foreign currency exchange rates or underlying assets.

INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Advisory: Each Fund entered into an Investment Advisory Agreement with the Manager, the Funds investment adviser and an indirect, wholly-owned subsidiary of BlackRock, Inc. (BlackRock), to provide investment advisory and administrative services. The Manager is responsible for the management of each Funds portfolio and provides the personnel, facilities, equipment and certain other services necessary to the operations of each Fund.

For such services, each Fund pays the Manager a monthly fee at an annual rate equal to the following percentages of the average daily value of each Funds net assets:

Investment advisory fees	0.55 %	0.50 %	0.49 %	0.49 %

N O T E S T O F I N A N C I A L S T A T E M E N T S 51

Notes to Financial Statements (continued)

For purposes of calculating these fees, net assets mean the total assets of the Fund minus the sum of its accrued liabilities (which does not include liabilities represented by TOB Trusts and the liquidation preference of any outstanding preferred shares). It is understood that the liquidation preference of any outstanding preferred stock (other than accumulated dividends) and TOB Trusts is not considered a liability in determining a Funds NAV.

Expense Waivers and Reimbursements: With respect to each Fund, the Manager contractually agreed to waive its investment advisory fees by the amount of investment advisory fees each Fund pays to the Manager indirectly through its investment in affiliated money market funds (the affiliated money market fund waiver) through June 30, 2023. The contractual agreement may be terminated upon 90 days notice by a majority of the Independent Directors, or by a vote of a majority of the outstanding voting securities of a Fund. These amounts are included in fees waived and/or reimbursed by the Manager in the Statements of Operations. For the year ended July 31, 2021, the amounts waived were as follows:

Fund Name	Fees Waived and/or Reimbursed by the Manager
MUC	$ 2,623
MUJ	4,875
MIY	2,522
MPA	1,537

The Manager contractually agreed to waive its investment advisory fee with respect to any portion of each Funds assets invested in affiliated equity and fixed-income mutual funds and affiliated exchange-traded funds that have a contractual management fee through June 30, 2023. The agreement can be renewed for annual periods thereafter, and may be terminated on 90 days notice, each subject to approval by a majority of the Funds Independent Directors. For the year ended July 31, 2021, there were no fees waived by the Manager pursuant to this arrangement.

The Manager, for MUC, voluntarily agreed to waive its investment advisory fee on the proceeds of the Preferred Shares and TOB Trusts that exceed 35% of total assets minus the sum of its accrued liabilities (which does not include liabilities represented by TOB Trusts and the liquidation preference of any outstanding preferred shares). The voluntary waiver may be reduced or discontinued at any time without notice. This amount is included in fees waived and/or reimbursed by the Manager in the Statements of Operations. For the year ended July 31, 2021 the waiver was $329,576.

Directors and Officers: Certain directors and/or officers of the Fund are directors and/or officers of BlackRock or its affiliates. The Funds reimburse the Manager for a portion of the compensation paid to the Funds Chief Compliance Officer, which is included in Directors and Officer in the Statements of Operations.

PURCHASES AND SALES

For the year ended July 31, 2021, purchases and sales of investments, excluding short-term investments, were as follows:

Fund Name	Purchases	Sales
MUC	$ 44,709,631	$ 59,484,940
MUJ	76,663,749	110,744,359
MIY	61,166,831	49,254,180
MPA	44,584,044	48,955,850

INCOME TAX INFORMATION

It is each Funds policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute substantially all of its taxable income to its shareholders. Therefore, no U.S. federal income tax provision is required.

Each Fund files U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on each Funds U.S. federal tax returns generally remains open for a period of three fiscal years after they are filed. The statutes of limitations on each Funds state and local tax returns may remain open for an additional year depending upon the jurisdiction.

Management has analyzed tax laws and regulations and their application to the Funds as of July 31, 2021, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds financial statements.

U.S. GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or NAVs per share. As of period end, the following permanent differences attributable to non-deductible expenses were reclassified to the following accounts:

Fund Name	Paid-in Capital		Accumulated Earnings (Loss)
MUJ	$ (19,042	)	$ 19,042
MIY	(11,349	)	11,349
MPA	(12,605	)	12,605

52 2 0 2 1 B L A C K R O C K A N N U A L R E P O R T T O S H A R E H O L D E R S

Notes to Financial Statements (continued)

The tax character of distributions paid was as follows:

Fund Name	Year Ended 07/31/21	Year Ended 07/31/20
MUC
Tax-exempt income (a)	$ 28,814,428	$ 26,904,686
Ordinary income (b)	1,250	13,455
	$ 28,815,678	$ 26,918,141
MUJ
Tax-exempt income (a)	$ 24,607,163	24,161,727
Ordinary income (b)	1,413	14,707
	$ 24,608,576	$ 24,176,434
MIY
Tax-exempt income (a)	$ 21,992,740	20,531,184
Ordinary income (b)	682	6,950
	$ 21,993,422	$ 20,538,134
MPA
Tax-exempt income (a)	$ 8,903,643	8,566,263
Ordinary income (b)	4,700	4,674
	$ 8,908,343	$ 8,570,937

(a) The Funds designate these amounts paid during the fiscal year ended July 31, 2021, as exempt-interest dividends.

(b) Ordinary income consists primarily of taxable income recognized from market discount and net short-term capital gains. Additionally, all ordinary income distributions are comprised of interest related dividends and qualified short-term capital gain dividends for non-U.S. residents and are eligible for exemption from U.S. withholding tax for nonresident aliens and foreign corporations.

As of period end, the tax components of accumulated earnings (loss) were as follows:

Fund Name	Undistributed Tax-Exempt Income	Undistributed Ordinary Income	Non-Expiring Capital Loss Carryforwards (a)		Net Unrealized Gains (Losses) (b)	Total
MUC	$ 2,789,610	$	$ (19,765,284	)	$ 98,423,498	$ 81,447,824
MUJ	1,855,308	7,045	(8,621,838	)	73,716,541	66,957,056
MIY	2,438,316		(8,035,624	)	60,942,002	55,344,694
MPA	786,117		(5,479,103	)	32,076,332	27,383,346

(a) Amounts available to offset future realized capital gains.

(b) The difference between book-basis and tax-basis net unrealized gains was attributable primarily to the tax deferral of losses on wash sales and straddles, amortization methods of premiums and discounts on fixed income securities, the treatment of residual interests in tender option bond trusts and the deferral of compensation to Directors.

During the year ended July 31, 2021, the Funds listed below utilized the following amounts of their respective capital loss carryforward:

Fund Name	Amounts
MUC	$ 1,748,984
MUJ	479,268
MIY	205,971
MPA	309,030

As of July 31, 2021, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:

Fund Name	Tax Cost	Gross Unrealized Appreciation	Gross Unrealized Depreciation		Net Unrealized Appreciation (Depreciation)
MUC	$ 808,473,339	$ 99,059,878	$ (207,915	)	$ 98,851,963
MUJ	654,525,580	73,937,330	(220,789	)	73,716,541
MIY	638,042,542	61,717,061	(126,762	)	61,590,299
MPA	272,193,924	33,687,521	(1,599,994	)	32,087,527

PRINCIPAL RISKS

In the normal course of business, the Funds invest in securities or other instruments and may enter into certain transactions, and such activities subject each Fund to various risks, including among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate and price fluctuations. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Funds and their investments.

N O T E S T O F I N A N C I A L S T A T E M E N T S 53

Notes to Financial Statements (continued)

A Fund structures and sponsors the TOB Trusts in which it holds TOB Residuals and has certain duties and responsibilities, which may give rise to certain additional risks including, but not limited to, compliance, securities law and operational risks.

Should short-term interest rates rise, the Funds investments in the TOB Trusts may adversely affect the Funds net investment income and dividends to Common Shareholders. Also, fluctuations in the market value of municipal bonds deposited into the TOB Trust may adversely affect the Funds NAVs per share.

The U.S. Securities and Exchange Commission (SEC) and various federal banking and housing agencies have adopted credit risk retention rules for securitizations (the Risk Retention Rules). The Risk Retention Rules would require the sponsor of a TOB Trust to retain at least 5% of the credit risk of the underlying assets supporting the TOB Trusts municipal bonds. The Risk Retention Rules may adversely affect the Funds ability to engage in TOB Trust transactions or increase the costs of such transactions in certain circumstances.

TOB Trusts constitute an important component of the municipal bond market. Any modifications or changes to rules governing TOB Trusts may adversely impact the municipal market and the Funds, including through reduced demand for and liquidity of municipal bonds and increased financing costs for municipal issuers. The ultimate impact of any potential modifications on the TOB Trust market and the overall municipal market is not yet certain.

Each Fund may invest without limitation in illiquid or less liquid investments or investments in which no secondary market is readily available or which are otherwise illiquid, including private placement securities. A Fund may not be able to readily dispose of such investments at prices that approximate those at which a Fund could sell such investments if they were more widely traded and, as a result of such illiquidity, a Fund may have to sell other investments or engage in borrowing transactions if necessary to raise funds to meet its obligations. Limited liquidity can also affect the market price of investments, thereby adversely affecting a Funds NAV and ability to make dividend distributions. Privately issued debt securities are often of below investment grade quality, frequently are unrated and present many of the same risks as investing in below investment grade public debt securities.

Market Risk: Each Fund may be exposed to prepayment risk, which is the risk that borrowers may exercise their option to prepay principal earlier than scheduled during periods of declining interest rates, which would force each Fund to reinvest in lower yielding securities. Each Fund may also be exposed to reinvestment risk, which is the risk that income from each Funds portfolio will decline if each Fund invests the proceeds from matured, traded or called fixed-income securities at market interest rates that are below each Fund portfolios current earnings rate.

Municipal securities are subject to the risk that litigation, legislation or other political events, local business or economic conditions, credit rating downgrades, or the bankruptcy of the issuer could have a significant effect on an issuers ability to make payments of principal and/or interest or otherwise affect the value of such securities. Municipal securities can be significantly affected by political or economic changes, including changes made in the law after issuance of the securities, as well as uncertainties in the municipal market related to, taxation, legislative changes or the rights of municipal security holders, including in connection with an issuer insolvency. Municipal securities backed by current or anticipated revenues from a specific project or specific assets can be negatively affected by the discontinuance of the tax benefits supporting the project or assets or the inability to collect revenues for the project or from the assets. Municipal securities may be less liquid than taxable bonds, and there may be less publicly available information on the financial condition of municipal security issuers than for issuers of other securities.

An outbreak of respiratory disease caused by a novel coronavirus has developed into a global pandemic and has resulted in closing borders, quarantines, disruptions to supply chains and customer activity, as well as general concern and uncertainty. The impact of this pandemic, and other global health crises that may arise in the future, could affect the economies of many nations, individual companies and the market in general in ways that cannot necessarily be foreseen at the present time. This pandemic may result in substantial market volatility and may adversely impact the prices and liquidity of a funds investments. The duration of this pandemic and its effects cannot be determined with certainty.

Counterparty Credit Risk: The Funds may be exposed to counterparty credit risk, or the risk that an entity may fail to or be unable to perform on its commitments related to unsettled or open transactions, including making timely interest and/or principal payments or otherwise honoring its obligations. The Funds manage counterparty credit risk by entering into transactions only with counterparties that the Manager believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Funds to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Funds exposure to market, issuer and counterparty credit risks with respect to these financial assets is approximately their value recorded in the Statements of Assets and Liabilities, less any collateral held by the Funds.

A derivative contract may suffer a mark-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform under the contract.

With exchange-traded futures, there is less counterparty credit risk to the Funds since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, a Fund does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency). Additionally, credit risk exists in exchange-traded futures with respect to initial and variation margin that is held in a clearing brokers customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing brokers customers, potentially resulting in losses to the Funds.

Concentration Risk: A diversified portfolio, where this is appropriate and consistent with a funds objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within each Funds portfolio are disclosed in its Schedule of Investments.

54 2 0 2 1 B L A C K R O C K A N N U A L R E P O R T T O S H A R E H O L D E R S

Notes to Financial Statements (continued)

Certain Funds invest a substantial amount of their assets in issuers located in a single state or limited number of states. When a Fund concentrates its investments in this manner, it assumes the risk that economic, regulatory, political or social conditions affecting that state or group of states could have a significant impact on the fund and could affect the income from, or the value or liquidity of, the funds portfolio. Investment percentages in specific states or U.S. territories are presented in the Schedules of Investments.

Certain Funds invest a significant portion of their assets in securities within a single or limited number of market sectors. When a Fund concentrates its investments in this manner, it assumes the risk that economic, regulatory, political and social conditions affecting such sectors may have a significant impact on the Fund and could affect the income from, or the value or liquidity of, the Funds portfolio. Investment percentages in specific sectors are presented in the Schedules of Investments.

Certain Funds invest a significant portion of their assets in fixed-income securities and/or use derivatives tied to the fixed-income markets. Changes in market interest rates or economic conditions may affect the value and/or liquidity of such investments. Interest rate risk is the risk that prices of bonds and other fixed-income securities will increase as interest rates fall and decrease as interest rates rise. The Funds may be subject to a greater risk of rising interest rates due to the current period of historically low rates.

LIBOR Transition Risk: The United Kingdoms Financial Conduct Authority announced a phase out of the London Interbank Offered Rate (LIBOR). Although many LIBOR rates will be phased out by the end of 2021, a selection of widely used USD LIBOR rates will continue to be published through June 2023 in order to assist with the transition. The Funds may be exposed to financial instruments tied to LIBOR to determine payment obligations, financing terms, hedging strategies or investment value. The transition process away from LIBOR might lead to increased volatility and illiquidity in markets for, and reduce the effectiveness of new hedges placed against, instruments whose terms currently include LIBOR. The ultimate effect of the LIBOR transition process on the Funds is uncertain.

CAPITAL SHARE TRANSACTIONS

MPA is authorized to issue an unlimited number of Common Shares, all of which were initially classified as Common Shares. MUC, MUJ and MIY each is authorized to issue 200 million shares, all of which were initially classified as Common Shares. The par value for each Funds Common Shares is $0.10. The par value for each Funds Preferred Shares outstanding is $0.10, except for MPA, which is $0.05. The Board is authorized, however, to reclassify any unissued Common Shares to Preferred Shares without the approval of Common Shareholders. MPA is authorized to issue 1 million Preferred Shares.

Common Shares

For the periods shown, shares issued and outstanding increased by the following amounts as a result of dividend reinvestment:

Fund Name	Year Ended — 07/31/21	07/31/20
MUC	9,153

The Funds participate in an open market share repurchase program (the Repurchase Program). From December 1, 2019 through November 30, 2020, each Fund may repurchase up to 5% of its outstanding common shares under the Repurchase Program, based on common shares outstanding as of the close of business on November 30, 2019, subject to certain conditions. From December 1, 2020 through November 30, 2021, each Fund may repurchase up to 5% of its outstanding common shares under the Repurchase Program, based on common shares outstanding as of the close of business on November 30, 2020, subject to certain conditions. There is no assurance that the Funds will purchase shares in any particular amounts.

The total cost of the shares repurchased is reflected in MUJ, MIY and MPAs Statements of Changes in Net Assets. For the periods shown, shares repurchased and cost, including transaction costs were as follows:

Shares		Amounts	MIY — Shares	Amounts	MPA — Shares	Amounts
Year Ended July 31, 2021		$		$	1,307	$ 18,678
Year Ended July 31, 2020	66,696	886,136	68,734	886,694	35,471	478,011

Preferred Shares

A Funds Preferred Shares rank prior to its Common Shares as to the payment of dividends by the Fund and distribution of assets upon dissolution or liquidation of the Fund. The 1940 Act prohibits the declaration of any dividend on Common Shares or the repurchase of Common Shares if the Fund fails to maintain asset coverage of at least 200% of the liquidation preference of the Funds outstanding Preferred Shares. In addition, pursuant to the Preferred Shares governing instruments, a Fund is restricted from declaring and paying dividends on classes of shares ranking junior to or on parity with its Preferred Shares or repurchasing such shares if the Fund fails to declare and pay dividends on the Preferred Shares, redeem any Preferred Shares required to be redeemed under the Preferred Shares governing instruments or comply with the basic maintenance amount requirement of the ratings agencies rating the Preferred Shares.

Holders of Preferred Shares have voting rights equal to the voting rights of holders of Common Shares (one vote per share) and vote together with holders of Common Shares (one vote per share) as a single class on certain matters. Holders of Preferred Shares, voting as a separate class, are also entitled to (i) elect two members of the Board, (ii) elect the full Board if dividends on the Preferred Shares are not paid for a period of two years and (iii) a separate class vote to amend the Preferred Share governing documents. In addition, the 1940 Act requires the approval of the holders of a majority of any outstanding Preferred Shares, voting as a separate class, to (a) adopt any plan of reorganization that would adversely affect the Preferred Shares, (b) change a Funds sub-classification as a closed-end investment company or change its fundamental investment restrictions or (c) change its business so as to cease to be an investment company.

N O T E S T O F I N A N C I A L S T A T E M E N T S 55

Notes to Financial Statements (continued)

VRDP Shares

MUJ, MIY and MPA (for purposes of this section, each a VRDP Fund) have issued Series W-7 VRDP Shares, $100,000 liquidation preference per share, in one or more privately negotiated offerings to qualified institutional buyers as defined pursuant to Rule 144A under the Securities Act of 1933, as amended (the Securities Act). The VRDP Shares include a liquidity feature and may be subject to a special rate period. As of period end, the VRDP Shares outstanding were as follows:

Fund Name — MUJ	06/30/11	1,727	Aggregate Principal — $ 172,700,000	07/01/41
	04/13/15	644	64,400,000	07/01/41
MIY	04/21/11	1,446	144,600,000	05/01/41
	09/14/15	873	87,300,000	05/01/41
MPA	05/19/11	663	66,300,000	06/01/41
	04/13/15	163	16,300,000	06/01/41

Redemption Terms: A VRDP Fund is required to redeem its VRDP Shares on the maturity date, unless earlier redeemed or repurchased. Six months prior to the maturity date, a VRDP Fund is required to begin to segregate liquid assets with the Funds custodian to fund the redemption. In addition, a VRDP Fund is required to redeem certain of its outstanding VRDP Shares if it fails to comply with certain asset coverage, basic maintenance amount or leverage requirements.

Subject to certain conditions, the VRDP Shares may also be redeemed, in whole or in part, at any time at the option of a VRDP Fund. The redemption price per VRDP Share is equal to the liquidation preference per share plus any outstanding unpaid dividends.

Liquidity Feature: VRDP Shares are subject to a fee agreement between the VRDP Fund and the liquidity provider that requires a per annum liquidity fee and, in some cases, an upfront or initial commitment fee, payable to the liquidity provider. These fees, if applicable, are shown as liquidity fees in the Statements of Operations. As of period end, the fee agreement is set to expire, unless renewed or terminated in advance, as follows:

Expiration date	04/30/22	07/09/22	07/02/22

The VRDP Shares are also subject to a purchase agreement in connection with the liquidity feature. In the event a purchase agreement is not renewed or is terminated in advance, and the VRDP Shares do not become subject to a purchase agreement with an alternate liquidity provider, the VRDP Shares will be subject to mandatory purchase by the liquidity provider prior to the termination of the purchase agreement. In the event of such mandatory purchase, a VRDP Fund is required to redeem the VRDP Shares six months after the purchase date. Immediately after such mandatory purchase, the VRDP Fund is required to begin to segregate liquid assets with its custodian to fund the redemption. There is no assurance that a VRDP Fund will replace such redeemed VRDP Shares with any other preferred shares or other form of leverage.

Remarketing: A VRDP Fund may incur remarketing fees on the aggregate principal amount of all its VRDP Shares, which, if any, are included in remarketing fees on Preferred Shares in the Statements of Operations. During any special rate period (as described below), a VRDP Fund may incur nominal or no remarketing fees.

Ratings: As of period end, the VRDP Shares were assigned the following ratings:

Fund Name — MUJ	Aa2	AA	N/A	N/A
MIY	Aa2	AA	N/A	N/A
MPA	Aa2	AA	F1+	A-1+

Any short-term ratings on VRDP Shares are directly related to the short-term ratings of the liquidity provider for such VRDP Shares. Changes in the credit quality of the liquidity provider could cause a change in the short-term credit ratings of the VRDP Shares as rated by Moodys Investors Service, Inc., Fitch Ratings, Inc. and S&P Global Ratings. The liquidity provider may be terminated prior to the scheduled termination date if the liquidity provider fails to maintain short-term debt ratings in one of the two highest rating categories.

Special Rate Period: A VRDP Fund has commenced a special rate period with respect to its VRDP Shares, during which the VRDP Shares will not be subject to any remarketing and the dividend rate will be based on a predetermined methodology. During a special rate period, short-term ratings on VRDP Shares are withdrawn. As of period end, the following VRDP Funds have commenced or are set to commence a special rate period:

Fund Name — MUJ	04/17/14	04/15/22
MIY	06/25/20	06/25/22

Prior to the expiration date, the VRDP Fund and the VRDP Shares holder may mutually agree to extend the special rate period. If a special rate period is not extended, the VRDP Shares will revert to remarketable securities upon the termination of the special rate period and will be remarketed and available for purchase by qualified institutional investors.

56 2 0 2 1 B L A C K R O C K A N N U A L R E P O R T T O S H A R E H O L D E R S

Notes to Financial Statements (continued)

During the special rate period: (i) the liquidity and fee agreements remain in effect, (ii) VRDP Shares remain subject to mandatory redemption by the VRDP Fund on the maturity date, (iii) VRDP Shares will not be remarketed or subject to optional or mandatory tender events, (iv) the VRDP Fund is required to comply with the same asset coverage, basic maintenance amount and leverage requirements for the VRDP Shares as is required when the VRDP Shares are not in a special rate period, (v) the VRDP Fund will pay dividends monthly based on the sum of an agreed upon reference rate and a percentage per annum based on the long-term ratings assigned to the VRDP Shares and (vi) the VRDP Fund will pay nominal or no fees to the liquidity provider and remarketing agent.

Dividends: Except during the Special Rate Period as described above, dividends on the VRDP Shares are payable monthly at a variable rate set weekly by the remarketing agent. Such dividend rates are generally based upon a spread over a base rate and cannot exceed a maximum rate. A change in the short-term credit rating of the liquidity provider or the VRDP Shares may adversely affect the dividend rate paid on such shares, although the dividend rate paid on the VRDP Shares is not directly based upon either short-term rating. In the event of a failed remarketing, the dividend rate of the VRDP Shares will be reset to a maximum rate. The maximum rate is determined based on, among other things, the long-term preferred share rating assigned to the VRDP Shares and the length of time that the VRDP Shares fail to be remarketed.

For the year ended July 31, 2021, the annualized dividend rate for the VRDP Shares were as follows:

Dividend rates	0.91 %	1.06 %	0.15 %

For the year ended July 31, 2021, VRDP Shares issued and outstanding of each VRDP Fund remained constant.

VMTP Shares

MUC (for purposes of this section, a VMTP Fund) have issued Series W-7 VMTP Shares, $100,000 liquidation preference per share, in one or more privately negotiated offerings to qualified institutional buyers as defined pursuant to Rule 144A under the Securities Act. The VMTP Shares are subject to certain restrictions on transfer, and a VMTP Fund may also be required to register its VMTP Shares for sale under the Securities Act under certain circumstances. As of period end, the VMTP Shares outstanding and assigned long-term ratings were as follows:

Fund Name — MUC	03/22/12	2,540	Aggregate Principal — $ 254,000,000	03/30/22	Aa2	AA

Redemption Terms: A VMTP Fund is required to redeem its VMTP Shares on the term redemption date, unless earlier redeemed or repurchased or unless extended. There is no assurance that a term will be extended further or that any VMTP Shares will be replaced with any other preferred shares or other form of leverage upon the redemption or repurchase of the VMTP Shares. Six months prior to the term redemption date, a VMTP Fund is required to begin to segregate liquid assets with its custodian to fund the redemption. In addition, a VMTP Fund is required to redeem certain of its outstanding VMTP Shares if it fails to comply with certain asset coverage, basic maintenance amount or leverage requirements.

Subject to certain conditions, VMTP Shares may be redeemed, in whole or in part, at any time at the option of the VMTP Fund. The redemption price per VMTP Share is equal to the liquidation preference per share plus any outstanding unpaid dividends.

Dividends: Dividends on the VMTP Shares are declared daily and payable monthly at a variable rate set weekly at a fixed rate spread to the Securities Industry and Financial Markets Association (SIFMA) Municipal Swap Index or to a percentage of the one-month LIBOR rate, as set forth in the VMTP Shares governing instrument. The fixed spread is determined based on the long-term preferred share rating assigned to the VMTP Shares by the ratings agencies then rating the VMTP Shares.

The dividend rate on VMTP Shares is subject to a step-up spread if the VMTP Fund fails to comply with certain provisions, including, among other things, the timely payment of dividends, redemptions or gross-up payments, and complying with certain asset coverage and leverage requirements.

For the year ended July 31, 2021, the average annualized dividend rates for the VMTP Shares were as follows:

Dividend rates	0.82 %

For the year ended July 31, 2021, VMTP Shares issued and outstanding of each VMTP Fund remained constant.

Offering Costs: The Funds incurred costs in connection with the issuance of VRDP and VMTP Shares, which were recorded as a direct deduction from the carrying value of the related debt liability and will be amortized over the life of the VRDP and VMTP Shares with the exception of any upfront fees paid by a VRDP Fund to the liquidity provider which, if any, were amortized over the life of the liquidity agreement. Amortization of these costs is included in interest expense, fees and amortization of offering costs in the Statements of Operations.

Financial Reporting: The VRDP and VMTP Shares are considered debt of the issuer; therefore, the liquidation preference, which approximates fair value of the VRDP and VMTP Shares, is recorded as a liability in the Statements of Assets and Liabilities net of deferred offering costs. Unpaid dividends are included in interest expense and fees payable in the Statements of Assets and Liabilities, and the dividends accrued and paid on the VRDP and VMTP Shares are included as a component of interest expense, fees and amortization of offering costs in the Statements of Operations. The VRDP and VMTP Shares are treated as equity for tax purposes. Dividends paid to holders of the VRDP

N O T E S T O F I N A N C I A L S T A T E M E N T S 57

Notes to Financial Statements (continued)

and VMTP Shares are generally classified as tax-exempt income for tax-reporting purposes. Dividends and amortization of deferred offering costs on VRDP and VMTP Shares are included in interest expense, fees and amortization of offering costs in the Statements of Operations:

Fund Name	Dividends Accrued	Deferred Offering Costs Amortization
MUC	$ 2,081,555	$
MUJ	2,163,548	19,968
MIY	2,458,110	11,349
MPA	125,823	20,306

SUBSEQUENT EVENTS

Managements evaluation of the impact of all subsequent events on the Funds financial statements was completed through the date the financial statements were issued and the following items were noted:

The Funds declared and paid or will pay distributions to Common Shareholders as follows:

Fund Name			Dividend Per Common Share
MUC
08/02/21	08/16/21	09/01/21	$ 0.055000
09/01/21	09/15/21	10/01/21	0.055000
MUJ
08/02/21	08/16/21	09/01/21	0.063000
09/01/21	09/15/21	10/01/21	0.063000
MIY
08/02/21	08/16/21	09/01/21	0.056000
09/01/21	09/15/21	10/01/21	0.056000
MPA
08/02/21	08/16/21	09/01/21	0.055000
09/01/21	09/15/21	10/01/21	0.055000

The Funds declared distributions to Preferred Shareholders as follows:

Fund Name	Preferred Shares (a) — Shares	Series	Declared
MUC	VMTP	W-7	$ 166,109
MUJ	VRDP	W-7	169,543
MIY	VRDP	W-7	200,133
MPA	VRDP	W-7	6,789

(a) Dividends declared for the period August 1, 2021 to August 31, 2021.

58 2 0 2 1 B L A C K R O C K A N N U A L R E P O R T T O S H A R E H O L D E R S

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Directors/Trustees of BlackRock MuniHoldings California Quality Fund, Inc., BlackRock MuniHoldings New Jersey Quality Fund, Inc., BlackRock MuniYield Michigan Quality Fund, Inc., and BlackRock MuniYield Pennsylvania Quality Fund:

Opinion on the Financial Statements and Financial Highlights

We have audited the accompanying statements of assets and liabilities of BlackRock MuniHoldings California Quality Fund, Inc., BlackRock MuniHoldings New Jersey Quality Fund, Inc., BlackRock MuniYield Michigan Quality Fund, Inc., and BlackRock MuniYield Pennsylvania Quality Fund (the Funds), including the schedules of investments, as of July 31, 2021, the related statements of operations and cash flows for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Funds as of July 31, 2021, and the results of their operations and their cash flows for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements and financial highlights are the responsibility of the Funds management. Our responsibility is to express an opinion on the Funds financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Funds internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of July 31, 2021, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

Deloitte & Touche LLP

Boston, Massachusetts

September 21, 2021

We have served as the auditor of one or more BlackRock investment companies since 1992.

R E P O R T O F I N D E P E N D E N T R E G I S T E R E D P U B L I C A C C O U N T I N G F I R M 59

Disclosure of Investment Advisory Agreement

The Boards of Directors/Trustees, as applicable (collectively, the Board, the members of which are referred to as Board Members) of BlackRock MuniHoldings California Quality Fund, Inc. (MUC), BlackRock MuniHoldings New Jersey Quality Fund, Inc. (MUJ), BlackRock MuniYield Michigan Quality Fund, Inc. (MIY) and BlackRock MuniYield Pennsylvania Quality Fund (MPA and together with MUC, MUJ and MIY, the Funds and each, a Fund) met on May 4, 2021 (the May Meeting) and June 8-9, 2021 (the June Meeting) to consider the approval to continue the investment advisory agreements (the Advisory Agreements) or (the Agreements) between each Fund and BlackRock Advisors, LLC (the Manager or BlackRock), each Funds investment advisor.

The Approval Process:

Consistent with the requirements of the Investment Company Act of 1940 (the 1940 Act), the Board considers the approval of the continuation of the Agreements for each Fund on an annual basis. The Board members whom are not interested persons of each Fund, as defined in the 1940 Act, are considered independent Board members (the Independent Board Members). The Boards consideration entailed a year-long deliberative process during which the Board and its committees assessed BlackRocks various services to each Fund, including through the review of written materials and oral presentations, and the review of additional information provided in response to requests from the Independent Board Members. The Board had four quarterly meetings per year, each typically extending for two days, as well as additional ad hoc meetings and executive sessions throughout the year, as needed. The committees of the Board similarly met throughout the year. The Board also had a fifth one-day meeting to consider specific information surrounding the renewal of the Agreements. In particular, the Board assessed, among other things, the nature, extent and quality of the services provided to each Fund by BlackRock, BlackRocks personnel and affiliates, including (as applicable): investment management services; accounting oversight; administrative and shareholder services; oversight of each Funds service providers; risk management and oversight; and legal, regulatory and compliance services. Throughout the year, including during the contract renewal process, the Independent Board Members were advised by independent legal counsel, and met with independent legal counsel in various executive sessions outside of the presence of BlackRocks management.

During the year, the Board, acting directly and through its committees, considered information that was relevant to its annual consideration of the renewal of the Agreements, including the services and support provided by BlackRock to each Fund and its shareholders. BlackRock also furnished additional information to the Board in response to specific questions from the Board. Among the matters the Board considered were: (a) investment performance for one-year, three-year, five-year, and/or since inception periods, as applicable, against peer funds, relevant benchmarks, and other performance metrics, as applicable, as well as BlackRock senior managements and portfolio managers analyses of the reasons for any outperformance or underperformance relative to its peers, benchmarks, and other performance metrics, as applicable; (b) leverage management, as applicable; (c) fees, including advisory, administration, if applicable, and other amounts paid to BlackRock and its affiliates by each Fund for services; (d) Fund operating expenses and how BlackRock allocates expenses to each Fund; (e) the resources devoted to risk oversight of, and compliance reports relating to, implementation of each Funds investment objective, policies and restrictions, and meeting regulatory requirements; (f) BlackRocks and each Funds adherence to applicable compliance policies and procedures; (g) the nature, character and scope of non-investment management services provided by BlackRock and its affiliates and the estimated cost of such services, as available; (h) BlackRocks and other service providers internal controls and risk and compliance oversight mechanisms; (i) BlackRocks implementation of the proxy voting policies approved by the Board; (j) execution quality of portfolio transactions; (k) BlackRocks implementation of each Funds valuation and liquidity procedures; (l) an analysis of management fees paid to BlackRock for products with similar investment mandates across the open-end fund, closed-end fund, sub-advised mutual fund, collective investment trust and institutional separate account product channels, as applicable, and the similarities and differences between these products and the services provided as compared to each Fund; (m) BlackRocks compensation methodology for its investment professionals and the incentives and accountability it creates, along with investment professionals investments in the fund(s) they manage; (n) periodic updates on BlackRocks business; and (o) each Funds market discount/premium compared to peer funds.

Prior to and in preparation for the May Meeting, the Board received and reviewed materials specifically relating to the renewal of the Agreements. The Independent Board Members are continuously engaged in a process with their independent legal counsel and BlackRock to review the nature and scope of the information provided to the Board to better assist its deliberations. The materials provided in connection with the May Meeting included, among other things: (a) information independently compiled and prepared by Broadridge Financial Solutions, Inc. (Broadridge), based on Lipper classifications, regarding each Funds fees and expenses as compared with a peer group of funds as determined by Broadridge (Expense Peers) and the investment performance of each Fund as compared with a peer group of funds (Performance Peers); (b) information on the composition of the Expense Peers and Performance Peers and a description of Broadridges methodology; (c) information on the estimated profits realized by BlackRock and its affiliates pursuant to the Agreements and a discussion of fall-out benefits to BlackRock and its affiliates; (d) a general analysis provided by BlackRock concerning investment management fees received in connection with other types of investment products, such as institutional accounts, sub-advised mutual funds, closed-end funds, and open-end funds, under similar investment mandates, as applicable; (e) a review of non-management fees; (f) the existence, impact and sharing of potential economies of scale, if any, with each Fund; (g) a summary of aggregate amounts paid by each Fund to BlackRock; and (h) various additional information requested by the Board as appropriate regarding BlackRocks and each Funds operations.

At the May Meeting, the Board reviewed materials relating to its consideration of the Agreements. As a result of the discussions that occurred during the May Meeting, and as a culmination of the Boards year-long deliberative process, the Board presented BlackRock with questions and requests for additional information. BlackRock responded to these questions and requests with additional written information in advance of the June Meeting.

At the June Meeting, the Board concluded its assessment of, among other things: (a) the nature, extent and quality of the services provided by BlackRock; (b) the investment performance of each Fund as compared to its Performance Peers and to other metrics, as applicable; (c) the advisory fee and the estimated cost of the services and estimated profits realized by BlackRock and its affiliates from their relationship with each Fund; (d) each Funds fees and expenses compared to its Expense Peers; (e) the existence and sharing of potential economies of scale; (f) any fall-out benefits to BlackRock and its affiliates as a result of BlackRocks relationship with each Fund; and (g) other factors deemed relevant by the Board Members.

The Board also considered other matters it deemed important to the approval process, such as other payments made to BlackRock or its affiliates relating to securities lending and cash management, and BlackRocks services related to the valuation and pricing of Fund portfolio holdings. The Board noted the willingness of BlackRocks personnel to engage in open, candid discussions with the Board. The Board Members did not identify any particular information, or any single factor as determinative, and each Board Member may have attributed different weights to the various items and factors considered.

60 2 0 2 1 B L A C K R O C K A N N U A L R E P O R T T O S H A R E H O L D E R S

Disclosure of Investment Advisory Agreements (continued)

A. Nature, Extent and Quality of the Services Provided by BlackRock

The Board, including the Independent Board Members, reviewed the nature, extent and quality of services provided by BlackRock, including the investment advisory services, and the resulting performance of each Fund. Throughout the year, the Board compared Fund performance to the performance of a comparable group of closed-end funds, relevant benchmarks, and performance metrics, as applicable. The Board met with BlackRocks senior management personnel responsible for investment activities, including the senior investment officers. The Board also reviewed the materials provided by each Funds portfolio management team discussing each Funds performance, investment strategies and outlook.

The Board considered, among other factors, with respect to BlackRock: the number, education and experience of investment personnel generally and each Funds portfolio management team; research capabilities; investments by portfolio managers in the funds they manage; portfolio trading capabilities; use of technology; commitment to compliance; credit analysis capabilities; risk analysis and oversight capabilities; and the approach to training and retaining portfolio managers and other research, advisory and management personnel. The Board also considered BlackRocks overall risk management program, including the continued efforts of BlackRock and its affiliates to address cybersecurity risks and the role of BlackRocks Risk & Quantitative Analysis Group. The Board engaged in a review of BlackRocks compensation structure with respect to each Funds portfolio management team and BlackRocks ability to attract and retain high-quality talent and create performance incentives.

In addition to investment advisory services, the Board considered the nature and quality of the administrative and other non-investment advisory services provided to each Fund. BlackRock and its affiliates provide each Fund with certain administrative, shareholder and other services (in addition to any such services provided to each Fund by third parties) and officers and other personnel as are necessary for the operations of each Fund. In particular, BlackRock and its affiliates provide each Fund with administrative services including, among others: (i) responsibility for disclosure documents, such as the prospectus and the statement of additional information in connection with the initial public offering and periodic shareholder reports; (ii) preparing communications with analysts to support secondary market trading of each Fund; (iii) oversight of daily accounting and pricing; (iv) responsibility for periodic filings with regulators and stock exchanges; (v) overseeing and coordinating the activities of third-party service providers including, among others, each Funds custodian, fund accountant, transfer agent, and auditor; (vi) organizing Board meetings and preparing the materials for such Board meetings; (vii) providing legal and compliance support; (viii) furnishing analytical and other support to assist the Board in its consideration of strategic issues such as the merger, consolidation or repurposing of certain closed-end funds; and (ix) performing or managing administrative functions necessary for the operation of each Fund, such as tax reporting, expense management, fulfilling regulatory filing requirements, and shareholder call center and other services. The Board reviewed the structure and duties of BlackRocks fund administration, shareholder services, and legal and compliance departments and considered BlackRocks policies and procedures for assuring compliance with applicable laws and regulations. The Board considered the operation of BlackRocks business continuity plans, including in light of the ongoing COVID-19 pandemic.

B. The Investment Performance of each Fund and BlackRock

The Board, including the Independent Board Members, reviewed and considered the performance history of each Fund throughout the year and at the May Meeting. In preparation for the May Meeting, the Board was provided with reports independently prepared by Broadridge, which included an analysis of each Funds performance as of December 31, 2020, as compared to its Performance Peers. The performance information is based on net asset value (NAV), and utilizes Lipper data. Lippers methodology calculates a funds total return assuming distributions are reinvested on the ex-date at a funds ex-date NAV. Broadridge ranks funds in quartiles, ranging from first to fourth, where first is the most desirable quartile position and fourth is the least desirable. In connection with its review, the Board received and reviewed information regarding the investment performance of each Fund as compared to its Performance Peers and a custom peer group of funds as defined by BlackRock (Customized Peer Group) and a composite measuring a blend of total return and yield (Composite). The Board and its Performance Oversight Committee regularly review and meet with Fund management to discuss the performance of each Fund throughout the year.

In evaluating performance, the Board focused particular attention on funds with less favorable performance records. The Board also noted that while it found the data provided by Broadridge generally useful, it recognized the limitations of such data, including in particular, that notable differences may exist between a fund and its Performance Peers (for example, the investment objectives and strategies). Further, the Board recognized that the performance data reflects a snapshot of a period as of a particular date and that selecting a different performance period could produce significantly different results. The Board also acknowledged that long-term performance could be impacted by even one period of significant outperformance or underperformance, and that a single investment theme could have the ability to disproportionately affect long-term performance.

The Board noted that for each of the one-, three- and five-year periods reported, MUC ranked in the second quartile against its Customized Peer Group Composite. The Board noted that BlackRock believes that the Customized Peer Group Composite is an appropriate performance metric for MUC, and that BlackRock has explained its rationale for this belief to the Board.

The Board noted that for each of the one-, three- and five-year periods reported, MUJ ranked in the first quartile against its Customized Peer Group Composite. The Board noted that BlackRock believes that the Customized Peer Group Composite is an appropriate performance metric for MUJ, and that BlackRock has explained its rationale for this belief to the Board.

The Board noted that for each of the one-, three- and five-year periods reported, MIY ranked in the second quartile against its Customized Peer Group Composite. The Board noted that BlackRock believes that the Customized Peer Group Composite is an appropriate performance metric for MIY, and that BlackRock has explained its rationale for this belief to the Board.

The Board noted that for the one-, three- and five-year periods reported, MPA ranked in the second, third and first quartiles, respectively, against its Customized Peer Group Composite. The Board noted that BlackRock believes that the Customized Peer Group Composite is an appropriate performance metric for MPA, and that BlackRock has explained its rationale for this belief to the Board. The Board and BlackRock reviewed MPAs underperformance relative to its Customized Peer Group Composite during the applicable period.

D I S C L O S U R E O F I N V E S T M E N T A D V I S O R Y A G R E E M E N T S 61

Disclosure of Investment Advisory Agreements (continued)

C. Consideration of the Advisory/Management Fees and the Estimated Cost of the Services and Estimated Profits Realized by BlackRock and its Affiliates from their Relationship with each Fund

The Board, including the Independent Board Members, reviewed each Funds contractual management fee rate compared with those of its Expense Peers. The contractual management fee rate represents a combination of the advisory fee and any administrative fees, before taking into account any reimbursements or fee waivers. The Board also compared each Funds total expense ratio, as well as its actual management fee rate as a percentage of managed assets, which is the total assets of each Fund (including any assets attributable to money borrowed for investment purposes) minus the sum of each Funds accrued liabilities (other than money borrowed for investment purposes) to those of its Expense Peers. The total expense ratio represents a funds total net operating expenses, excluding any investment related expenses. The total expense ratio gives effect to any expense reimbursements or fee waivers, and the actual management fee rate gives effect to any management fee reimbursements or waivers. The Board considered the services provided and the fees charged by BlackRock and its affiliates to other types of clients with similar investment mandates, as applicable, including institutional accounts and sub-advised mutual funds (including mutual funds sponsored by third parties).

The Board received and reviewed statements relating to BlackRocks financial condition. The Board reviewed BlackRocks profitability methodology and was also provided with an estimated profitability analysis that detailed the revenues earned and the expenses incurred by BlackRock for services provided to each Fund. The Board reviewed BlackRocks estimated profitability with respect to each Fund and other funds the Board currently oversees for the year ended December 31, 2020 compared to available aggregate estimated profitability data provided for the prior two years. The Board reviewed BlackRocks estimated profitability with respect to certain other U.S. fund complexes managed by the Manager and/or its affiliates. The Board reviewed BlackRocks assumptions and methodology of allocating expenses in the estimated profitability analysis, noting the inherent limitations in allocating costs among various advisory products. The Board recognized that profitability may be affected by numerous factors including, among other things, fee waivers and expense reimbursements by the Manager, the types of funds managed, precision of expense allocations and business mix. The Board thus recognized that calculating and comparing profitability at the individual fund level is difficult.

The Board noted that, in general, individual fund or product line profitability of other advisors is not publicly available. The Board reviewed BlackRocks overall operating margin, in general, compared to that of certain other publicly traded asset management firms. The Board considered the differences between BlackRock and these other firms, including the contribution of technology at BlackRock, BlackRocks expense management, and the relative product mix.

The Board considered whether BlackRock has the financial resources necessary to attract and retain high quality investment management personnel to perform its obligations under the Agreements and to continue to provide the high quality of services that is expected by the Board. The Board further considered factors including but not limited to BlackRocks commitment of time, assumption of risk, and liability profile in servicing each Fund, including in contrast to what is required of BlackRock with respect to other products with similar investment mandates across the open-end fund, closed-end fund, sub-advised mutual fund, collective investment trust, and institutional separate account product channels, as applicable.

The Board noted that MUCs contractual management fee rate ranked in the first quartile, and that the actual management fee rate and total expense ratio each ranked in the first quartile, relative to the Expense Peers.

The Board noted that MUJs contractual management fee rate ranked first out of three funds, and that the actual management fee rate and total expense ratio ranked second out of three funds and first out of three funds, respectively, relative to the Expense Peers.

The Board noted that MIYs contractual management fee rate ranked in the first quartile, and that the actual management fee rate and total expense ratio each ranked in the first quartile, relative to the Expense Peers.

The Board noted that MPAs contractual management fee rate ranked first out of three funds, and that the actual management fee rate and total expense ratio each ranked first out of three funds relative to the Expense Peers.

D. Economies of Scale

The Board, including the Independent Board Members, considered the extent to which economies of scale might be realized as the assets of each Fund increase. The Board also considered the extent to which each Fund benefits from such economies of scale in a variety of ways, and whether there should be changes in the advisory fee rate or breakpoint structure in order to enable each Fund to more fully participate in these economies of scale. The Board considered each Funds asset levels and whether the current fee was appropriate.

Based on the Boards review and consideration of the issue, the Board concluded that most closed-end funds do not have fund level breakpoints because closed-end funds generally do not experience substantial growth after the initial public offering. Closed-end funds are typically priced at scale at a funds inception.

E. Other Factors Deemed Relevant by the Board Members

The Board, including the Independent Board Members, also took into account other ancillary or fall-out benefits that BlackRock or its affiliates may derive from BlackRocks respective relationships with each Fund, both tangible and intangible, such as BlackRocks ability to leverage its investment professionals who manage other portfolios and its risk management personnel, an increase in BlackRocks profile in the investment advisory community, and the engagement of BlackRocks affiliates as service providers to each Fund, including for administrative, securities lending and cash management services. The Board also considered BlackRocks overall operations and its efforts to expand the scale of, and improve the quality of, its operations. The Board also noted that, subject to applicable law, BlackRock may use and benefit from third-party research obtained by soft dollars generated by certain registered fund transactions to assist in managing all or a number of its other client accounts.

In connection with its consideration of the Agreements, the Board also received information regarding BlackRocks brokerage and soft dollar practices. The Board received reports from BlackRock which included information on brokerage commissions and trade execution practices throughout the year.

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Disclosure of Investment Advisory Agreements (continued)

The Board noted the competitive nature of the closed-end fund marketplace, and that shareholders are able to sell their Fund shares in the secondary market if they believe that each Funds fees and expenses are too high or if they are dissatisfied with the performance of each Fund.

The Board also considered the various notable initiatives and projects BlackRock performed in connection with its closed-end fund product line. These initiatives included developing equity shelf programs; efforts to eliminate product overlap with fund mergers; ongoing services to manage leverage that has become increasingly complex; periodic evaluation of share repurchases and other support initiatives for certain BlackRock funds; and continued communication efforts with shareholders, fund analysts and financial advisers. With respect to the latter, the Independent Board Members noted BlackRocks continued commitment to supporting the secondary market for the common shares of its closed-end funds through a comprehensive secondary market communication program designed to raise investor and analyst awareness and understanding of closed-end funds. BlackRocks support services included, among other things: sponsoring and participating in conferences; communicating with closed-end fund analysts covering the BlackRock funds throughout the year; providing marketing and product updates for the closed-end funds; and maintaining and enhancing its closed-end fund website.

Conclusion

The Board, including the Independent Board Members, unanimously approved the continuation of the Advisory Agreements between the Manager and each Fund for a one-year term ending June 30, 2022. Based upon its evaluation of all of the aforementioned factors in their totality, as well as other information, the Board, including the Independent Board Members, was satisfied that the terms of the Agreements were fair and reasonable and in the best interest of each Fund and its shareholders. In arriving at its decision to approve the Agreements, the Board did not identify any single factor or group of factors as all-important or controlling, but considered all factors together, and different Board Members may have attributed different weights to the various factors considered. The Independent Board Members were also assisted by the advice of independent legal counsel in making this determination.

D I S C L O S U R E O F I N V E S T M E N T A D V I S O R Y A G R E E M E N T S 63

Investment Objectives, Policies and Risks

Recent Changes

The following information is a summary of certain changes since July 31, 2020. This information may not reflect all of the changes that have occurred since you purchased the relevant Fund.

During each Funds most recent fiscal year, there were no material changes in the Funds investment objectives or policies that have not been approved by shareholders or in the principal risk factors associated with investment in the Fund.

Investment Objectives and Policies

BlackRock MuniHoldings California Quality Fund, Inc. (MUC)

The Funds investment objective is to provide stockholders with current income exempt from federal and California income taxes. There can be no assurance that the Funds investment objective will be realized. The Funds investment objective may not be changed without the approval of the holders of a majority of the outstanding common shares and the outstanding preferred shares voting together as a single class, and of the holders of a majority of the outstanding preferred shares voting as a separate class. A majority of the outstanding means (1) 67% or more of the shares present at a meeting, if the holders of more than 50% of the outstanding shares are present or represented by proxy, or (2) more than 50% of the outstanding shares, whichever is less.

The Funds investment policies provide that it will invest primarily in a portfolio of long-term, investment grade municipal obligations issued by or on behalf of the State of California, its political subdivisions, agencies and instrumentalities and by other qualifying issuers that pay interest which, in the opinion of bond counsel to the issuer, is exempt from federal and California income taxes (except that the interest may be includable in taxable income for purposes of the federal alternative minimum tax) (California Municipal Bonds). The Funds investment policies provide that, the Fund will seek to achieve its investment objective by seeking to invest substantially all (a minimum of 80%) of its assets in California Municipal Bonds, except at times when, in the judgment of BlackRock Advisors, LLC (the Manager), California Municipal Bonds of sufficient quality and quantity are unavailable for investment at suitable prices by the Fund. The Funds investment policies provide that at all times, except during temporary defensive periods, the Fund will invest at least 65% of its assets in California Municipal Bonds and at least 80% of its assets in California Municipal Bonds and other long-term municipal obligations exempt from Federal income taxes, but not from California income taxes (Municipal Bonds). The Funds investment policies provide that, under normal market conditions, the Fund invests at least 80% of its assets in municipal securities with remaining maturities of one year or more at the time of investment. The Fund ordinarily does not intend to realize significant investment income not exempt from Federal and California income taxes. To the extent that suitable California Municipal Bonds are not available for investment by the Fund, as determined by the Manager, the Fund may purchase Municipal Bonds.

The investment grade California Municipal Bonds and Municipal Bonds in which the Fund will primarily invest are those California Municipal Bonds and Municipal Bonds that are rated at the date of purchase in the four highest rating categories of Moodys Investors Service, Inc. (Moodys) (currently Aaa, Aa, A and Baa), S&P Global Ratings (S&P) (currently AAA, AA, A and BBB) or Fitch Ratings, Inc. (Fitch) (currently AAA, AA, A and BBB) or, if unrated, are considered to be of comparable quality by the Manager. In the case of short term notes, the investment grade rating categories are SP-1+ through SP-2 for S&P, MIG-1 through MIG-3 for Moodys and F-1+ through F-3 for Fitch. In the case of tax exempt commercial paper, the investment grade rating categories are A-1+ through A-3 for S&P, Prime-1 through Prime-3 for Moodys and F-1+ through F-3 for Fitch. Obligations ranked in the lowest investment grade rating category (BBB, SP-2 and A-3 for S&P; Baa, MIG-3 and Prime-3 for Moodys and BBB and F-3 for Fitch), while considered investment grade, may have certain speculative characteristics. There may be sub-categories or gradations indicating relative standing within the rating categories set forth above. In assessing the quality of California Municipal Bonds and Municipal Bonds with respect to the foregoing requirements, the Manager takes into account the nature of any letters of credit or similar credit enhancement to which particular California Municipal Bonds and Municipal Bonds are entitled and the creditworthiness of the financial institution that provided such credit enhancement. If unrated, such securities will possess creditworthiness comparable, in the opinion of the Manager, to other obligations in which the Fund may invest. The foregoing credit quality policies apply only at the time a security is purchased, and the Fund is not required to dispose of a security if a rating agency downgrades its assessment of the credit characteristics of a particular issue. In determining whether to retain or sell a security that a rating agency has downgraded, the Manager may consider such factors as the Managers assessment of the credit quality of the issuer of the security, the price at which the security could be sold and the rating, if any, assigned to the security by other rating agencies. In the event that the Fund disposes of a portfolio security subsequent to its being downgraded, the Fund may experience a greater risk of loss than if such security had been sold prior to such downgrade. The Fund may also purchase California Municipal Bonds and Municipal Bonds that are additionally secured by insurance, bank credit agreements or escrow accounts. The credit quality of companies which provide these credit enhancements will affect the value of those securities. Although the insurance feature reduces certain financial risks, the premiums for insurance and the higher market price paid for insured obligations may reduce the Funds income. The insurance feature does not guarantee the market value of the insured obligations or the net asset value of the common shares.

The Fund may invest up to 20% of its managed assets in securities that are rated below investment grade, which are securities rated Ba or below by Moodys, BB or below by S&P or Fitch or are considered by the Manager to be of comparable quality, at the time of purchase, subject to the Funds other investment policies. Below investment grade quality is regarded as predominantly speculative with respect to the issuers capacity to pay interest and repay principal. Such securities commonly are referred to as high yield or junk bonds.

The Fund may invest in certain tax exempt securities classified as private activity bonds (or industrial development bonds, under pre-1986 law) (in general, bonds that benefit non-governmental entities) that may subject certain investors in the Fund to an alternative minimum tax. The percentage of the Funds total assets invested in private activity bonds will vary from time to time.

The average maturity of the Funds portfolio securities varies from time to time based upon an assessment of economic and market conditions by the Manager. The Funds portfolio at any given time may include both long-term, intermediate-term and short-term California Municipal Bonds and Municipal Bonds.

The Funds stated expectation is that it will invest in California Municipal Bonds and Municipal Bonds that, in the Managers opinion, are underrated or undervalued. Underrated California Municipal Bonds and Municipal Bonds are those whose ratings do not, in the opinion of the Manager, reflect their true higher creditworthiness. Undervalued

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Investment Objectives, Policies and Risks (continued)

California Municipal Bonds and Municipal Bonds are bonds that, in the opinion of the Manager, are worth more than the value assigned to them in the marketplace. The Manager may at times believe that bonds associated with a particular municipal market sector (for example, but not limited to electric utilities), or issued by a particular municipal issuer, are undervalued. The Manager may purchase those bonds for the Funds portfolio because they represent a market sector or issuer that the Manager considers undervalued, even if the value of those particular bonds appears to be consistent with the value of similar bonds. California Municipal Bonds and Municipal Bonds of particular types (for example, but not limited to hospital bonds, industrial revenue bonds or bonds issued by a particular municipal issuer) may be undervalued because there is a temporary excess of supply in that market sector, or because of a general decline in the market price of California Municipal Bonds and Municipal Bonds of the market sector for reasons that do not apply to the particular California Municipal Bonds and Municipal Bonds that are considered undervalued. The Funds investment in underrated or undervalued California Municipal Bonds and Municipal Bonds will be based on the Managers belief that their yield is higher than that available on bonds bearing equivalent levels of interest rate risk, credit risk and other forms of risk, and that their prices will ultimately rise, relative to the market, to reflect their true value. Any capital appreciation realized by the Fund will generally result in capital gain distributions subject to federal capital gains taxation. The Fund ordinarily does not intend to realize significant investment income not exempt from federal income tax. From time to time, the Fund may realize taxable capital gains.

Leverage: The Fund may utilize leverage to seek to enhance the yield and net asset value of its common shares. However, this objective cannot be achieved in all interest rate environments. The Fund currently leverages its assets through the use of variable rate muni term preferred shares (VMTP Shares) and residual interest municipal tender option bonds (TOB Residuals), which are derivative interests in municipal bonds. The TOB Residuals in which the Fund will invest pay interest or income that, in the opinion of counsel to the issuer of such TOB Residuals, is exempt from regular U.S. federal income tax.

The Fund may enter into reverse repurchase agreements with respect to its portfolio investments subject to the Funds investment restrictions.

The Fund is authorized to borrow money in amounts of up to 5% of the value of its total assets at the time of such borrowings; provided, however, that the Fund is authorized to borrow moneys in amounts of up to 33 1/3% of the value of its total assets at the time of such borrowings to finance the repurchase of its own common stock pursuant to tender offers or otherwise to redeem or repurchase shares of preferred stock.

BlackRock MuniHoldings New Jersey Quality Fund, Inc. (MUJ)

The Funds investment objective is to provide shareholders with current income exempt from federal income tax and New Jersey personal income taxes. The investment objective of the Fund is a fundamental policy that may not be changed without a vote of a majority of the Funds outstanding voting securities.

The Fund seeks to achieve its investment objective by investing primarily in a portfolio of municipal obligations, the interest on which, in the opinion of bond counsel to the issuer, is exempt from federal income tax and New Jersey personal income taxes (New Jersey Municipal Bonds). The Fund invests substantially all (at least 80%) of its assets in New Jersey Municipal Bonds, except at times when BlackRock Advisors, LLC (the Manager) considers that New Jersey Municipal Bonds of sufficient quantity and quality are unavailable at suitable prices. To the extent that the Manager considers that suitable New Jersey Municipal Bonds are not available for investment, the Fund may purchase municipal obligations exempt from federal income taxes but not New Jersey personal income taxes (Municipal Bonds). The Fund may invest directly in such securities or synthetically through the use of derivatives. The Fund will maintain at least 80% of its assets in New Jersey Municipal Bonds, except during interim periods pending investment of the net proceeds of public offerings of its securities and during temporary defensive periods. Under normal circumstances, at least 80% of the Funds assets will be invested in municipal obligations with remaining maturities of one year or more. There can be no assurance that the Funds investment objective will be realized.

Ordinarily, the Fund does not intend to realize significant investment income subject to federal income tax and New Jersey personal income taxes. The Fund may invest all or a portion of its assets in certain tax-exempt securities classified as private activity bonds (in general, bonds that benefit non-governmental entities) that may subject certain investors in the Fund to a federal alternative minimum tax.

The Fund may also invest in securities not issued by or on behalf of a state or territory or by an agency or instrumentality thereof, if the Fund nevertheless believes such securities pay interest or distributions that are exempt from federal income taxation (Non-Municipal Tax-Exempt Securities). Non-Municipal Tax-Exempt Securities may include securities issued by other investment companies that invest in New Jersey Municipal Bonds and Municipal Bonds, to the extent such investments are permitted by the Investment Company Act of 1940, as amended (the 1940 Act). Other Non-Municipal Tax-Exempt Securities could include trust certificates or other instruments evidencing interests in one or more long-term New Jersey Municipal Bonds or Municipal Bonds. Certain Non-Municipal Tax-Exempt Securities may be characterized as derivative instruments. For purposes of the Funds investment objective and policies, Non-Municipal Tax-Exempt Securities that pay interest that is exempt from federal income taxes and New Jersey personal income taxes will be considered New Jersey Municipal Bonds and Non-Municipal Tax-Exempt Securities that pay interest that is exempt from federal income taxes will be considered Municipal Bonds.

The Fund invests in investment grade New Jersey Municipal Bonds and Municipal Bonds that are rated at the date of purchase in the four highest rating categories of Moodys Investors Service, Inc. (Moodys) (currently Aaa, Aa, A and Baa), S&P Global Ratings (S&P) (currently AAA, AA, A and BBB) or Fitch Ratings, Inc. (Fitch) (currently AAA, AA, A and BBB) or, if unrated, are considered to be of comparable quality by the Manager. In the case of long-term debt, the investment grade rating categories are AAA through BBB for S&P and Fitch and Aaa through Baa for Moodys. In the case of short-term notes, the investment grade rating categories are SP-1+ through SP-2 for S&P, MIG 1 through MIG 3 for Moodys and F-1+ through F-3 for Fitch. In the case of tax-exempt commercial paper, the investment grade rating categories are A-1+ through A-3 for S&P, P-1 through P-3 for Moodys and F-1+ through F-3 for Fitch. Obligations ranked in the lowest investment grade rating category (BBB, SP-2 and A-3 for S&P; Baa, MIG 3 and P-3 for Moodys; and BBB and F-3 for Fitch), while considered investment grade, may have certain speculative characteristics. There may be sub-categories or gradations indicating relative standing within the rating categories set forth above. In assessing the quality of New Jersey Municipal Bonds and Municipal Bonds with respect to the foregoing requirements, the Manager takes into account the portfolio insurance as well as the nature of any letters of credit or similar credit enhancement to which particular New Jersey Municipal Bonds and Municipal Bonds are entitled and the creditworthiness of the insurance company or financial institution that provided such insurance or credit enhancements. Insurance is expected to protect the Fund against losses caused by a bond issuers failure to make interest or principal payments. However, insurance does not protect the Fund or its shareholders against losses caused by declines in a bonds market value. Also, the Fund cannot be certain that any insurance company does not make these payments. If a bonds insurer fails to fulfill its obligations or loses its credit rating, the value of the bond could drop.

I N V E S T M E N T O B J E C T I V E S , P O L I C I E S A N D R I S K S 65

Investment Objectives, Policies and Risks (continued)

The Fund may invest in variable rate demand obligations (VRDOs) and VRDOs in the form of participation interests (Participating VRDOs) in variable rate tax-exempt obligations held by a financial institution, typically a commercial bank. The VRDOs in which the Fund may invest are tax-exempt obligations, in the opinion of counsel to the issuer, that contain a floating or variable interest rate adjustment formula and a right of demand on the part of the holder thereof to receive payment of the unpaid principal balance plus accrued interest on a short notice period not to exceed seven days. There is, however, the possibility that because of default or insolvency the demand feature of VRDOs may not be honored. The interest rates are adjustable at intervals (ranging from daily to up to one year) to some prevailing market rate for similar investments, such adjustment formula being calculated to maintain the market value of the VRDOs, at approximately the par value of the VRDOs on the adjustment date. The adjustments typically are based upon SIFMA or some other appropriate interest rate adjustment index. VRDOs that contain an unconditional right of demand to receive payment of the unpaid principal balance plus accrued interest on a notice period exceeding seven days may be deemed to be illiquid securities. Participating VRDOs provide the Fund with a specified undivided interest (up to 100%) in the underlying obligation and the right to demand payment of the unpaid principal balance plus accrued interest on the Participating VRDOs from the financial institution on a specified number of days notice, not to exceed seven days.

The average maturity of the Funds portfolio securities varies based upon the Managers assessment of economic and market conditions. The net asset value of the shares of common stock of a closed-end investment company such as the Fund, which invests primarily in fixed-income securities, changes as the general levels of interest rates fluctuate. When interest rates decline, the value of a fixed income portfolio can be expected to rise. Conversely, when interest rates rise, the value of a fixed income portfolio can be expected to decline. Prices of longer-term securities generally fluctuate more in response to interest rate changes than do short-term or medium-term securities. These changes in net asset value are likely to be greater in the case of a fund having a leveraged capital structure, such as that used by the Fund.

The Fund invests primarily in long-term New Jersey Municipal Bonds and Municipal Bonds with a maturity of more than ten years. However, the Fund may also invest in intermediate-term New Jersey Municipal Bonds and Municipal Bonds with a maturity of between three years and ten years. The Fund may also invest in short-term tax-exempt securities, short-term U.S. Government securities, repurchase agreements or cash. Investments in such short-term securities or cash will not exceed 20% of the Funds total assets, except during interim periods pending investment of the net proceeds from public offerings of the Funds securities or in anticipation of the repurchase or redemption of the Funds securities and temporary periods when, in the opinion of the Manager, prevailing market or economic conditions warrant. The Fund does not ordinarily intend to realize significant interest income that is subject to federal income tax and New Jersey personal income taxes.

Leverage: The Fund may utilize leverage to seek to enhance the yield and net asset value of its common shares. However, this objective cannot be achieved in all interest rate environments. The Fund currently leverages its assets through the use of variable rate demand preferred shares (VRDP Shares) and residual interest municipal tender option bonds (TOB Residuals), which are derivative interests in municipal bonds. The TOB Residuals in which the Fund will invest pay interest or income that, in the opinion of counsel to the issuer of such TOB Residuals, is exempt from regular U.S. federal income tax.

The Fund may enter into reverse repurchase agreements with respect to its portfolio investments subject to the Funds investment restrictions.

The Fund is authorized to borrow money in amounts of up to 5% of the value of its total assets at the time of such borrowings; provided, however, that the Fund is authorized to borrow moneys in amounts of up to 33 1/3% of the value of its total assets at the time of such borrowings to finance the repurchase of its own common shares pursuant to tender offers or otherwise to redeem or repurchase preferred shares.

BlackRock MuniYield Michigan Quality Fund (MIY)

The Funds investment objective is to provide shareholders with as high a level of current income exempt from federal and Michigan income taxes as is consistent with its investment policies and prudent investment management. The Fund seeks to achieve its investment objective by investing at least 80% of an aggregate of the Funds net assets (including proceeds from the issuance of any preferred stock) and the proceeds of any borrowings for investment purposes, in a portfolio of municipal obligations issued by or on behalf of the State of Michigan, its political subdivisions, agencies and instrumentalities and by other qualifying issuers, each of which pays interest that, in the opinion of bond counsel to the issuer, is excludable from gross income for federal income tax purposes (except that the interest may be includable in taxable income for purposes of the federal alternative minimum tax) and exempt from Michigan income taxes (Michigan Municipal Bonds). The Fund also may invest directly in such securities or synthetically through the use of derivatives in municipal obligations issued by or on behalf of states, territories and possessions of the United States and their political subdivisions, agencies or instrumentalities, each of which pays interest that is excludable from gross income for federal income tax purposes, in the opinion of bond counsel to the issuer, but is not excludable from gross income for Michigan income tax purposes (Municipal Bonds). Unless otherwise noted, the term Municipal Bonds also includes Michigan Municipal Bonds. In general, the Fund does not intend for its investments to earn a large amount of interest income that is (i) includable in gross income for federal income tax purposes or (ii) not exempt from Michigan income taxes. From time to time, the Fund may realize taxable capital gains. The Funds investment objective and its policy of investing at least 80% of an aggregate of the Funds net assets (including proceeds from the issuance of any preferred stock) and the proceeds of any borrowings for investment purposes, in Municipal Bonds are fundamental policies that may not be changed without the approval of a majority of the outstanding voting securities of the Fund (as defined in the Investment Company Act of 1940, as amended (the 1940 Act)). There can be no assurance that the Funds investment objective will be realized.

The Fund may invest in certain tax-exempt securities classified as private activity bonds (or industrial development bonds, under pre-1986 law) (PABs) (in general, bonds that benefit non-governmental entities) that may subject certain investors in the Fund to an alternative minimum tax. The percentage of the Funds total assets invested in PABs will vary from time to time.

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Investment Objectives, Policies and Risks (continued)

Advisors, LLC (the Manager) to be of comparable quality. In the case of short-term notes, the investment grade rating categories are SP-1+ through SP-2 for S&P, MIG 1 through MIG 3 for Moodys and F1+ through F3 for Fitch. In the case of tax-exempt commercial paper, the investment grade rating categories are A-1+ through A-3 for S&P, Prime-1 through Prime-3 for Moodys and F1+ through F3 for Fitch. Obligations ranked in the lowest investment grade rating category (BBB, SP-2 and A-3 for S&P; Baa, MIG 3 and Prime-3 for Moodys; and BBB and F3 for Fitch), while considered investment grade, may have certain speculative characteristics. There may be sub-categories or gradations indicating relative standing within the rating categories set forth above. In assessing the quality of Municipal Bonds with respect to the foregoing requirements, the Manager takes into account the nature of any letters of credit or similar credit enhancement to which particular Municipal Bonds are entitled and the creditworthiness of the financial institution that provided such credit enhancement. Insurance is expected to protect the Fund against losses caused by a bond issuers failure to make interest or principal payments. However, insurance does not protect the Fund or its shareholders against losses caused by declines in a bonds market value. If a bonds insurer fails to fulfill its obligations or loses its credit rating, the value of the bond could drop. If unrated, such securities will possess creditworthiness comparable, in the opinion of the Manager, to other obligations in which the Fund may invest.

All percentage and ratings limitations on securities in which the Fund may invest apply at the time of making an investment and shall not be considered violated as a result of subsequent market movements or if an investment rating is subsequently downgraded to a rating that would have precluded the Funds initial investment in such security. In the event that the Fund disposes of a portfolio security subsequent to its being downgraded, the Fund may experience a greater risk of loss than if such security had been sold prior to such downgrade.

The net asset value of the shares of common stock of a closed-end investment company, such as the Fund, which invests primarily in fixed income securities, changes as the general levels of interest rates fluctuate. When interest rates decline, the value of a fixed income portfolio can be expected to rise. Conversely, when interest rates rise, the value of a fixed income portfolio can be expected to decline. Prices of longer term securities generally fluctuate more in response to interest rate changes than do shorter term securities. These changes in net asset value are likely to be greater in the case of a fund having a leveraged capital structure, such as the Fund.

For temporary periods or to provide liquidity, the Fund has the authority to invest as much as 20% of its total assets in tax-exempt and taxable money market obligations with a maturity of one year or less (such short-term obligations being referred to herein as Temporary Investments). In addition, the Fund reserves the right as a defensive measure to invest temporarily a greater portion of its assets in Temporary Investments, when, in the opinion of the Manager, prevailing market or financial conditions warrant. Taxable money market obligations will yield taxable income. The Fund also may invest in variable rate demand obligations (VRDOs) and VRDOs in the form of participation interests (Participating VRDOs) in variable rate tax-exempt obligations held by a financial institution. The Funds hedging strategies are not fundamental policies and may be modified by the Board of Directors of the Fund without the approval of the Funds stockholders. The Fund is also authorized to invest in indexed and inverse floating rate obligations for hedging purposes and to seek to enhance return.

The Fund may invest in securities not issued by or on behalf of a state or territory or by an agency or instrumentality thereof, if the Fund receives an opinion of counsel to the issuer that such securities pay interest that is excludable from gross income for federal income tax purposes and, if applicable, exempt from Michigan income taxes (Non-Municipal Tax-Exempt Securities). Non-Municipal Tax-Exempt Securities could include trust certificates, partnership interests or other instruments evidencing interest in one or more long-term Municipal Bonds. Non-Municipal Tax-Exempt Securities also may include securities issued by other investment companies that invest in Municipal Bonds, to the extent such investments are permitted by the Funds investment restrictions and applicable law. Non-Municipal Tax-Exempt Securities are subject to the same risks associated with an investment in Municipal Bonds as well as many of the risks associated with investments in derivatives. If the Internal Revenue Service were to issue any adverse ruling or take an adverse position with respect to the taxation on these types of securities, there is a risk that the interest paid on such securities would be deemed taxable at the federal level.

The Fund ordinarily does not intend to realize significant investment income not exempt from federal income tax. From time to time, the Fund may realize taxable capital gains.

Federal tax legislation may limit the types and volume of bonds the interest on which qualifies for a federal income tax-exemption. As a result, current legislation and legislation that may be enacted in the future may affect the availability of Municipal Bonds for investment by the Fund.

Leverage: The Fund may utilize leverage to seek to enhance the yield and net asset value of its common shares. However, this objective cannot be achieved in all interest rate environments. The Fund currently leverages its assets through the use of variable rate demand preferred shares (VRDP Shares) and residual interest municipal tender option bonds (TOB Residuals), which are derivative interests in municipal bonds. The TOB Residuals in which the Fund will invest pay interest or income that, in the opinion of counsel to the issuer of such TOB Residuals, is exempt from regular U.S. federal income tax.

The Fund may enter into reverse repurchase agreements with respect to its portfolio investments subject to the Funds investment restrictions. The Fund may enter into dollar roll transactions.

The Fund may leverage its portfolio by entering into one or more credit facilities.

The Fund may enter into derivative transactions that have economic leverage embedded in them.

I N V E S T M E N T O B J E C T I V E S , P O L I C I E S A N D R I S K S 67

Investment Objectives, Policies and Risks (continued)

The Fund may also borrow money as a temporary measure for extraordinary or emergency purposes, including the payment of dividends and the settlement of securities transactions which otherwise might require untimely dispositions of Fund securities. Certain short-term borrowings (such as for cash management purposes) are not subject to the 1940 Acts limitations on leverage if (i) repaid within 60 days, and (ii) not in excess of 5% of the Funds total assets.

BlackRock MuniYield Pennsylvania Quality Fund (MPA)

The Funds investment objective is to provide shareholders with as high a level of current income exempt from U.S. federal and Pennsylvania income taxes as is consistent with its investment policies and prudent investment management. The Fund seeks to achieve its investment objective by investing, as a fundamental policy, at least 80% of an aggregate of the Funds net assets (including proceeds from the issuance of any preferred shares) and the proceeds of any borrowings for investment purposes, in a portfolio of municipal obligations issued by or on behalf of the State of Pennsylvania, its political subdivisions, agencies and instrumentalities and by other qualifying issuers, each of which pays interest that, in the opinion of bond counsel to the issuer, is excludable from gross income for federal income tax purposes (except that the interest may be includable in taxable income for purposes of the federal alternative minimum tax) and exempt from Pennsylvania income taxes (Pennsylvania Municipal Bonds). The Fund also may invest in municipal obligations issued by or on behalf of states, territories and possessions of the United States and their political subdivisions, agencies or instrumentalities, each of which pays interest that is excludable from gross income for federal income tax purposes, in the opinion of bond counsel to the issuer, but is not excludable from gross income for Pennsylvania income tax purposes (Municipal Bonds). Unless otherwise noted, the term Municipal Bonds also includes Pennsylvania Municipal Bonds. The Fund may invest directly in such securities or synthetically through the use of derivatives. In general, the Fund does not intend for its investments to earn a large amount of interest income that is (i) includable in gross income for federal income tax purposes or (ii) not exempt from Pennsylvania income taxes. From time to time, the Fund may realize taxable capital gains.

The Funds investment objective and its policy of investing at least 80% of an aggregate of the Funds net assets (including proceeds from the issuance of any preferred shares) and the proceeds of any borrowings for investment purposes, in Pennsylvania Municipal Bonds are fundamental policies that may not be changed without the approval of a majority of the outstanding voting securities of the Fund (as defined in the Investment Company Act of 1940, as amended (the 1940 Act)). There can be no assurance that the Funds investment objective will be realized.

Under normal market conditions, the Fund expects to invest primarily in a portfolio of long-term Municipal Bonds that are commonly referred to as investment grade securities, which are obligations rated at the time of purchase within the four highest-quality ratings as determined by either Moodys Investors Service, Inc. (Moodys) (currently Aaa, Aa, A and Baa), S&P Global Ratings (S&P) (currently AAA, AA, A and BBB) or Fitch Ratings (Fitch) (currently AAA, AA, A and BBB). In the case of short-term notes, the investment grade rating categories are SP-1+ through SP-2 for S&P, MIG 1 through MIG 3 for Moodys and F1+ through F3 for Fitch. In the case of tax-exempt commercial paper, the investment grade rating categories are A-1+ through A-3 for S&P, Prime-1 through Prime-3 for Moodys and F1+ through F3 for Fitch. Obligations ranked in the lowest investment grade rating category (BBB, SP-2 and A-3 for S&P; Baa, MIG 3 and Prime-3 for Moodys; and BBB and F3 for Fitch), while considered investment grade, may have certain speculative characteristics. There may be sub-categories or gradations indicating relative standing within the rating categories set forth above. In assessing the quality of Municipal Bonds with respect to the foregoing requirements, BlackRock Advisors, LLC (the Manager) takes into account the nature of any letters of credit or similar credit enhancement to which particular Municipal Bonds are entitled and the creditworthiness of the financial institution that provided such credit enhancement. If unrated, such securities will possess creditworthiness comparable, in the opinion of the Manager, to other obligations in which the Fund may invest. Insurance is expected to protect the Fund against losses caused by a bond issuers failure to make interest or principal payments. However, insurance does not protect the Fund or its shareholders against losses caused by declines in a bonds market value. If a bonds insurer fails to fulfill its obligations or loses its credit rating, the value of the bond could drop. If unrated, such securities will possess creditworthiness comparable, in the opinion of the Manager, to other obligations in which the Fund may invest.

The average maturity of the Funds portfolio securities varies from time to time based upon an assessment of economic and market conditions by the Manager. The Funds portfolio at any given time may include long-term, intermediate-term and short-term Municipal Bonds.

The net asset value of the shares of common stock of a closed-end investment company, such as the Fund, which invests primarily in fixed income securities, changes as the general levels of interest rates fluctuate. When interest rates decline, the value of a fixed income portfolio can be expected to rise. Conversely, when interest rates rise, the value of a fixed income portfolio can be expected to decline. Prices of longer term securities generally fluctuate more in. response to interest rate changes than do shorter term securities. These changes in net asset value are likely to be greater in the case of a fund having a leveraged capital structure, such as the Fund.

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Investment Objectives, Policies and Risks (continued)

interests (Participating VRDOs) in variable rate tax-exempt obligations held by a financial institution. The Funds hedging strategies are not fundamental policies and may be modified by the Board of Trustees of the Fund without the approval of the Funds shareholders. The Fund is also authorized to invest in indexed and inverse floating rate obligations for hedging purposes and to seek to enhance return.

The Fund may invest in securities not issued by or on behalf of a state or territory or by an agency or instrumentality thereof, if the Fund receives an opinion of counsel to the issuer that such securities pay interest that is excludable from gross income for federal income tax purposes and, if applicable, exempt from Pennsylvania income taxes (Non-Municipal Tax-Exempt Securities). Non-Municipal Tax-Exempt Securities could include trust certificates, partnership interests or other instruments evidencing interest in one or more long-term Municipal Bonds. Non-Municipal Tax-Exempt Securities also may include securities issued by other investment companies that invest in Municipal Bonds, to the extent such investments are permitted by the Funds investment restrictions and applicable law. Non-Municipal Tax-Exempt Securities are subject to the same risks associated with an investment in Municipal Bonds as well as many of the risks associated with investments in derivatives. If the Internal Revenue Service were to issue any adverse ruling or take an adverse position with respect to the taxation on these types of securities, there is a risk that the interest paid on such securities would be deemed taxable at the federal level.

The Fund ordinarily does not intend to realize significant investment income not exempt from federal and Pennsylvania income taxes. From time to time, the Fund may realize taxable capital gains.

Leverage: The Fund may utilize leverage to seek to enhance the yield and net asset value of its common shares. However, this objective cannot be achieved in all interest rate environments. The Fund currently leverages its assets through the use of variable rate demand preferred shares (VRDP Shares) and residual interest municipal tender option bonds (TOB Residuals), which are derivative interests in municipal bonds. The TOB Residuals in which the Fund will invest pay interest or income that, in the opinion of counsel to the issuer of such TOB Residuals, is exempt from regular U.S. federal income tax.

The Fund may enter into reverse repurchase agreements with respect to its portfolio investments subject to the Funds investment restrictions.

The Fund may enter into derivative transactions that have economic leverage embedded in them.

Risk Factors

This section contains a discussion of the general risks of investing in each Fund. The net asset value and market price of, and dividends paid on, the common shares will fluctuate with and be affected by, among other things, the risks more fully described below. As with any fund, there can be no guarantee that the Fund will meet its investment objective or that the Funds performance will be positive for any period of time. Each risk noted below is applicable to each Fund unless the specific Fund or Funds are noted in a parenthetical.

Non-Diversification Risk (MUJ, MIY and MPA): The Fund is a non-diversified fund. Because the Fund may invest in securities of a smaller number of issuers, it may be more exposed to the risks associated with and developments affecting an individual issuer than a fund that invests more widely.

Investment and Market Discount Risk: An investment in the Funds common shares is subject to investment risk, including the possible loss of the entire amount that you invest. As with any stock, the price of the Funds common shares will fluctuate with market conditions and other factors. If shares are sold, the price received may be more or less than the original investment. Common shares are designed for long-term investors and the Fund should not be treated as a trading vehicle. Shares of closed-end management investment companies frequently trade at a discount from their net asset value. This risk is separate and distinct from the risk that the Funds net asset value could decrease as a result of its investment activities. At any point in time an investment in the Funds common shares may be worth less than the original amount invested, even after taking into account distributions paid by the Fund. During periods in which the Fund may use leverage, the Funds investment, market discount and certain other risks will be magnified.

Debt Securities Risk: Debt securities, such as bonds, involve interest rate risk, credit risk, extension risk, and prepayment risk, among other things.

Interest Rate Risk The market value of bonds and other fixed-income securities changes in response to interest rate changes and other factors. Interest rate risk is the risk that prices of bonds and other fixed-income securities will increase as interest rates fall and decrease as interest rates rise.

The Fund may be subject to a greater risk of rising interest rates due to the current period of historically low rates. For example, if interest rates increase by 1%, assuming a current portfolio duration of ten years, and all other factors being equal, the value of the Funds investments would be expected to decrease by 10%. The magnitude of these fluctuations in the market price of bonds and other fixed-income securities is generally greater for those securities with longer maturities. Fluctuations in the market price of the Funds investments will not affect interest income derived from instruments already owned by the Fund, but will be reflected in the Funds net asset value. The Fund may lose money if short-term or long-term interest rates rise sharply in a manner not anticipated by Fund management.

To the extent the Fund invests in debt securities that may be prepaid at the option of the obligor (such as mortgage-backed securities), the sensitivity of such securities to changes in interest rates may increase (to the detriment of the Fund) when interest rates rise. Moreover, because rates on certain floating rate debt securities typically reset only periodically, changes in prevailing interest rates (and particularly sudden and significant changes) can be expected to cause some fluctuations in the net asset value of the Fund to the extent that it invests in floating rate debt securities.

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Investment Objectives, Policies and Risks (continued)

These basic principles of bond prices also apply to U.S. Government securities. A security backed by the full faith and credit of the U.S. Government is guaranteed only as to its stated interest rate and face value at maturity, not its current market price. Just like other fixed-income securities, government-guaranteed securities will fluctuate in value when interest rates change.

A general rise in interest rates has the potential to cause investors to move out of fixed-income securities on a large scale, which may increase redemptions from funds that hold large amounts of fixed-income securities. Heavy redemptions could cause the Fund to sell assets at inopportune times or at a loss or depressed value and could hurt the Funds performance.

Credit Risk Credit risk refers to the possibility that the issuer of a debt security (i.e., the borrower) will not be able to make payments of interest and principal when due. Changes in an issuers credit rating or the markets perception of an issuers creditworthiness may also affect the value of the Funds investment in that issuer. The degree of credit risk depends on both the financial condition of the issuer and the terms of the obligation.

Extension Risk When interest rates rise, certain obligations will be paid off by the obligor more slowly than anticipated, causing the value of these obligations to fall.

Prepayment Risk When interest rates fall, certain obligations will be paid off by the obligor more quickly than originally anticipated, and the Fund may have to invest the proceeds in securities with lower yields.

Municipal Securities Risks: Municipal securities risks include the ability of the issuer to repay the obligation, the relative lack of information about certain issuers of municipal securities, and the possibility of future legislative changes which could affect the market for and value of municipal securities. These risks include:

General Obligation Bonds Risks Timely payments depend on the issuers credit quality, ability to raise tax revenues and ability to maintain an adequate tax base.

Revenue Bonds Risks These payments depend on the money earned by the particular facility or class of facilities, or the amount of revenues derived from another source.

Private Activity Bonds Risks Municipalities and other public authorities issue private activity bonds to finance development of industrial facilities for use by a private enterprise. The private enterprise pays the principal and interest on the bond, and the issuer does not pledge its full faith, credit and taxing power for repayment. The Funds investments may consist of private activity bonds that may subject certain shareholders to an alternative minimum tax.

Moral Obligation Bonds Risks Moral obligation bonds are generally issued by special purpose public authorities of a state or municipality. If the issuer is unable to meet its obligations, repayment of these bonds becomes a moral commitment, but not a legal obligation, of the state or municipality.

Municipal Notes Risks Municipal notes are shorter term municipal debt obligations. If there is a shortfall in the anticipated proceeds, the notes may not be fully repaid and the Fund may lose money.

Municipal Lease Obligations Risks In a municipal lease obligation, the issuer agrees to make payments when due on the lease obligation. Although the issuer does not pledge its unlimited taxing power for payment of the lease obligation, the lease obligation is secured by the leased property.

Tax-exempt Status Risk The Fund and its investment manager will rely on the opinion of issuers bond counsel and, in the case of derivative securities, sponsors counsel, on the tax-exempt status of interest on municipal bonds and payments under derivative securities. Neither the Fund nor its investment manager will independently review the bases for those tax opinions, which may ultimately be determined to be incorrect and subject the Fund and its shareholders to substantial tax liabilities.

State Specific Risk: The Fund invests primarily in municipal bonds issued by or on behalf of its designated state. As a result, the Fund is more exposed to risks affecting issuers of its designated states municipal securities than is a fund that invests more widely. Fund management does not believe that the current economic conditions will adversely affect the Funds ability to invest in high quality state municipal securities in its designated state.

Taxability Risk: The Fund intends to minimize the payment of taxable income to shareholders by investing in tax-exempt or municipal securities in reliance at the time of purchase on an opinion of bond counsel to the issuer that the interest paid on those securities will be excludable from gross income for U.S. federal income tax purposes. Such securities, however, may be determined to pay, or have paid, taxable income subsequent to the Funds acquisition of the securities. In that event, the Internal Revenue Service may demand that the Fund pay U.S. federal income taxes on the affected interest income, and, if the Fund agrees to do so, the Funds yield could be adversely affected. In addition, the treatment of dividends previously paid or to be paid by the Fund as exempt interest dividends could be adversely affected, subjecting the Funds shareholders to increased U.S. federal income tax liabilities. Federal tax legislation may limit the types and volume of bonds the interest on which qualifies for a federal income tax-exemption. As a result, current legislation and legislation that may be enacted in the future may affect the availability of Municipal Bonds for investment by the Fund. In addition, future laws, regulations, rulings or court decisions may cause interest on municipal securities to be subject, directly or indirectly, to U.S. federal income taxation or exempt interest on state municipal securities that are currently exempt to be subject to state or local income taxation, or the value of state municipal securities to be subject to state or local intangible personal property tax, or may otherwise prevent the Fund from realizing the full current benefit of the tax-exempt status of such securities. Any such change could also affect the market price of such securities, and thus the value of an investment in the Fund.

Insurance Risk: Insurance guarantees that interest payments on a municipal security will be made on time and that the principal will be repaid when the security matures. However, insurance does not protect against losses caused by declines in a municipal securitys value. The Fund cannot be certain that any insurance company will make the payments it guarantees. If a municipal securitys insurer fails to fulfill its obligations or loses its credit rating, the value of the security could drop.

Junk Bonds Risk: Although junk bonds generally pay higher rates of interest than investment grade bonds, junk bonds are high risk investments that are considered speculative and may cause income and principal losses for the Fund.

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Investment Objectives, Policies and Risks (continued)

Indexed and Inverse Securities Risk (MIY and MPA): Indexed and inverse securities provide a potential return based on a particular index of value or interest rates. The Funds return on these securities will be subject to risk with respect to the value of the particular index. These securities are subject to leverage risk and correlation risk. Certain indexed and inverse securities have greater sensitivity to changes in interest rates or index levels than other securities, and the Funds investment in such instruments may decline significantly in value if interest rates or index levels move in a way Fund management does not anticipate.

U.S. Government Obligations Risk: Certain securities in which the Fund may invest, including securities issued by certain U.S. Government agencies and U.S. Government sponsored enterprises, are not guaranteed by the U.S. Government or supported by the full faith and credit of the United States.

Variable Rate Demand Obligations Risks (MUJ, MIY and MPA): Variable rate demand obligations are floating rate securities that combine an interest in a long term municipal bond with a right to demand payment before maturity from a bank or other financial institution. If the bank or financial institution is unable to pay, the Fund may lose money.

Repurchase Agreements and Purchase and Sale Contracts Risk (MUJ): If the other party to a repurchase agreement or purchase and sale contract defaults on its obligation under the agreement, the Fund may suffer delays and incur costs or lose money in exercising its rights under the agreement. If the seller fails to repurchase the security in either situation and the market value of the security declines, the Fund may lose money.

Leverage Risk: The Fund uses leverage for investment purposes through the issuance of VRDP Shares or VMTP Shares, as applicable. The Fund also utilizes leverage for investment purposes by entering into reverse repurchase agreements, derivative instruments with leverage embedded in then, such as TOB Residuals and, if applicable, dollar rolls. The Funds use of leverage may increase or decrease from time to time in its discretion and the Fund may, in the future, determine not to use leverage.

The use of leverage creates an opportunity for increased common share net investment income dividends, but also creates risks for the holders of common shares. The Fund cannot assure you that the use of leverage will result in a higher yield on the common shares. Any leveraging strategy the Fund employs may not be successful.

Leverage involves risks and special considerations for common shareholders, including:

the likelihood of greater volatility of net asset value, market price and dividend rate of the common shares than a comparable portfolio without leverage;

the risk that fluctuations in interest rates or dividend rates on any leverage that the Fund must pay will reduce the return to the common shareholders;

the effect of leverage in a declining market, which is likely to cause a greater decline in the net asset value of the common shares than if the Fund were not leveraged, which may result in a greater decline in the market price of the common shares;

leverage may increase operating costs, which may reduce total return.

Any decline in the net asset value of the Funds investments will be borne entirely by the holders of common shares. Therefore, if the market value of the Funds portfolio declines, leverage will result in a greater decrease in net asset value to the holders of common shares than if the Fund were not leveraged. This greater net asset value decrease will also tend to cause a greater decline in the market price for the common shares.

Tender Option Bonds Risk: The Funds participation in tender option bond transactions may reduce the Funds returns and/or increase volatility. Investments in tender option bond transactions expose the Fund to counterparty risk and leverage risk. An investment in a tender option bond transaction typically will involve greater risk than an investment in a municipal fixed rate security, including the risk of loss of principal. Distributions on TOB Residuals will bear an inverse relationship to short-term municipal security interest rates. Distributions on TOB Residuals paid to the Fund will be reduced or, in the extreme, eliminated as short-term municipal interest rates rise and will increase when short-term municipal interest rates fall. TOB Residuals generally will underperform the market for fixed rate municipal securities in a rising interest rate environment. The Fund may invest special purpose trusts formed for the purpose of holding municipal bonds contributed by one or more funds (TOB Trusts) on either a non-recourse or recourse basis. If the Fund invests in a TOB Trust on a recourse basis, it could suffer losses in excess of the value of its TOB Residuals.

Reverse Repurchase Agreements Risk: Reverse repurchase agreements involve the sale of securities held by the Fund with an agreement to repurchase the securities at an agreed-upon price, date and interest payment. Reverse repurchase agreements involve the risk that the other party may fail to return the securities in a timely manner or at all. The Fund could lose money if it is unable to recover the securities and the value of the collateral held by the Fund, including the value of the investments made with cash collateral, is less than the value of the securities. These events could also trigger adverse tax consequences for the Fund. In addition, reverse repurchase agreements involve the risk that the interest income earned in the investment of the proceeds will be less than the interest expense.

Dollar Rolls Risk (MIY): Dollar rolls involve the risk that the market value of the securities that the Fund is committed to buy may decline below the price of the securities the Fund has sold. These transactions may involve leverage.

Illiquid Investments Risk: The Fund may invest without limitation in illiquid or less liquid investments or investments in which no secondary market is readily available or which are otherwise illiquid, including private placement securities. The Fund may not be able to readily dispose of such investments at prices that approximate those at which the Fund could sell such investments if they were more widely traded and, as a result of such illiquidity, the Fund may have to sell other investments or engage in borrowing transactions if necessary to raise cash to meet its obligations. Limited liquidity can also affect the market price of investments, thereby adversely affecting the Funds net asset value and ability to make dividend distributions. The financial markets in general, and certain segments of the mortgage-related securities markets in particular, have in recent years experienced periods of extreme secondary market supply and demand imbalance, resulting in a loss of liquidity during which market prices were suddenly and substantially below traditional measures of intrinsic value. During such periods, some investments could be sold only at arbitrary prices and with substantial losses. Periods of such market dislocation may occur again at any time. Privately issued debt securities are often of below investment grade quality, frequently are unrated and present many of the same risks as investing in below investment grade public debt securities.

I N V E S T M E N T O B J E C T I V E S , P O L I C I E S A N D R I S K S 71

Investment Objectives, Policies and Risks (continued)

Investment Companies and ETFs Risk (MUJ, MIY and MCA): Subject to the limitations set forth in the Investment Company Act of 1940, as amended (the 1940 Act), or as otherwise limited by the SEC, the Fund may acquire shares in other investment companies and in exchange-traded funds (ETFs), some of which may be affiliated investment companies. The market value of the shares of other investment companies and ETFs may differ from their net asset value. As an investor in investment companies and ETFs, the Fund would bear its ratable share of that entitys expenses, including its investment advisory and administration fees, while continuing to pay its own advisory and administration fees and other expenses (to the extent not offset by the Manager through waivers). As a result, shareholders will be absorbing duplicate levels of fees with respect to investments in other investment companies and ETFs (to the extent not offset by the Manager through waivers).

The securities of other investment companies and ETFs in which the Fund may invest may be leveraged. As a result, the Fund may be indirectly exposed to leverage through an investment in such securities. An investment in securities of other investment companies and ETFs that use leverage may expose the Fund to higher volatility in the market value of such securities and the possibility that the Funds long-term returns on such securities (and, indirectly, the long-term returns of shares of the Fund) will be diminished.

As with other investments, investments in other investment companies, including ETFs, are subject to market and selection risk. To the extent the Fund is held by an affiliated fund, the ability of the Fund itself to hold other investment companies may be limited.

Derivatives Risk: The Funds use of derivatives may increase its costs, reduce the Funds returns and/or increase volatility. Derivatives involve significant risks, including:

Volatility Risk Volatility is defined as the characteristic of a security, an index or a market to fluctuate significantly in price within a short time period. A risk of the Funds use of derivatives is that the fluctuations in their values may not correlate with the overall securities markets.

Counterparty Risk Derivatives are also subject to counterparty risk, which is the risk that the other party in the transaction will not fulfill its contractual obligation.

Market and Illiquidity Risk The possible lack of a liquid secondary market for derivatives and the resulting inability of the Fund to sell or otherwise close a derivatives position could expose the Fund to losses and could make derivatives more difficult for the Fund to value accurately.

Valuation Risk Valuation may be more difficult in times of market turmoil since many investors and market makers may be reluctant to purchase complex instruments or quote prices for them.

Hedging Risk Hedges are sometimes subject to imperfect matching between the derivative and the underlying security, and there can be no assurance that the Funds hedging transactions will be effective. The use of hedging may result in certain adverse tax consequences.

Tax Risk Certain aspects of the tax treatment of derivative instruments, including swap agreements and commodity-linked derivative instruments, are currently unclear and may be affected by changes in legislation, regulations or other legally binding authority. Such treatment may be less favorable than that given to a direct investment in an underlying asset and may adversely affect the timing, character and amount of income the Fund realizes from its investments.

Regulatory Risk Derivative contracts, including, without limitation, swaps, currency forwards and non-deliverable forwards, are subject to regulation under the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Dodd-Frank Act) in the United States and under comparable regimes in Europe, Asia and other non-U.S. jurisdictions. Under the Dodd-Frank Act, certain derivatives are subject to margin requirements and swap dealers are required to collect margin from the Fund with respect to such derivatives. Specifically, regulations are now in effect that require swap dealers to post and collect variation margin (comprised of specified liquid instruments and subject to a required haircut) in connection with trading of OTC swaps with the Fund. Shares of investment companies (other than certain money market funds) may not be posted as collateral under these regulations. Requirements for posting of initial margin in connection with OTC swaps will be phased-in through at least 2021. In addition, regulations adopted by global prudential regulators that are now in effect require certain bank-regulated counterparties and certain of their affiliates to include in certain financial contracts, including many derivatives contracts, terms that delay or restrict the rights of counterparties, such as the Fund, to terminate such contracts, foreclose upon collateral, exercise other default rights or restrict transfers of credit support in the event that the counterparty and/or its affiliates are subject to certain types of resolution or insolvency proceedings. The implementation of these requirements with respect to derivatives, as well as regulations under the Dodd-Frank Act regarding clearing, mandatory trading and margining of other derivatives, may increase the costs and risks to the Fund of trading in these instruments and, as a result, may affect returns to investors in the Fund.

On October 28, 2020, the SEC adopted new regulations governing the use of derivatives by registered investment companies (Rule 18f-4). The Fund will be required to implement and comply with Rule 18f-4 by August 19, 2022. Once implemented, Rule 18f-4 will impose limits on the amount of derivatives a fund can enter into, eliminate the asset segregation framework currently used by funds to comply with Section 18 of the 1940 Act, treat derivatives as senior securities and require funds whose use of derivatives is more than a limited specified exposure amount to establish and maintain a comprehensive derivatives risk management program and appoint a derivatives risk manager.

Market Risk and Selection Risk: Market risk is the risk that one or more markets in which the Fund invests will go down in value, including the possibility that the markets will go down sharply and unpredictably. The value of a security or other asset may decline due to changes in general market conditions, economic trends or events that are not specifically related to the issuer of the security or other asset, or factors that affect a particular issuer or issuers, exchange, country, group of countries, region, market, industry, group of industries, sector or asset class. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues like pandemics or epidemics, recessions, or other events could have a significant impact on the Fund and its investments. Selection risk is the risk that the securities selected by Fund management will underperform the markets, the relevant indices or the securities selected by other funds with similar investment objectives and investment strategies. This means you may lose money.

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Investment Objectives, Policies and Risks (continued)

A recent outbreak of an infectious coronavirus has developed into a global pandemic that has resulted in numerous disruptions in the market and has had significant economic impact leaving general concern and uncertainty. The impact of this coronavirus, and other epidemics and pandemics that may arise in the future, could affect the economies of many nations, individual companies and the market in general ways that cannot necessarily be foreseen at the present time.

I N V E S T M E N T O B J E C T I V E S , P O L I C I E S A N D R I S K S 73

Automatic Dividend Reinvestment Plan

Pursuant to MUC, MUJ, MIY and MPAs Dividend Reinvestment Plan (the Reinvestment Plan), Common Shareholders are automatically enrolled to have all distributions of dividends and capital gains and other distributions reinvested by Computershare Trust Company, N.A. (the Reinvestment Plan Agent) in the respective Funds Common Shares pursuant to the Reinvestment Plan. Shareholders who do not participate in the Reinvestment Plan will receive all distributions in cash paid by check and mailed directly to the shareholders of record (or if the shares are held in street name or other nominee name, then to the nominee) by the Reinvestment Plan Agent, which serves as agent for the shareholders in administering the Reinvestment Plan.

After MUC, MUJ, MIY and MPA declare a dividend or determine to make a capital gain or other distribution, the Reinvestment Plan Agent will acquire shares for the participants accounts, depending upon the following circumstances, either (i) through receipt of unissued but authorized shares from the Funds (newly issued shares) or (ii) by purchase of outstanding shares on the open market or on the Funds primary exchange (open-market purchases). If, on the dividend payment date, the net asset value (NAV) per share is equal to or less than the market price per share plus estimated brokerage commissions (such condition often referred to as a market premium), the Reinvestment Plan Agent will invest the dividend amount in newly issued shares acquired on behalf of the participants. The number of newly issued shares to be credited to each participants account will be determined by dividing the dollar amount of the dividend by the NAV on the date the shares are issued. However, if the NAV is less than 95% of the market price on the dividend payment date, the dollar amount of the dividend will be divided by 95% of the market price on the dividend payment date. If, on the dividend payment date, the NAV is greater than the market price per share plus estimated brokerage commissions (such condition often referred to as a market discount), the Reinvestment Plan Agent will invest the dividend amount in shares acquired on behalf of the participants in open-market purchases. If the Reinvestment Plan Agent is unable to invest the full dividend amount in open-market purchases, or if the market discount shifts to a market premium during the purchase period, the Reinvestment Plan Agent will invest any un-invested portion in newly issued shares. Investments in newly issued shares made in this manner would be made pursuant to the same process described above and the date of issue for such newly issued shares will substitute for the dividend payment date.

You may elect not to participate in the Reinvestment Plan and to receive all dividends in cash by contacting the Reinvestment Plan Agent, at the address set forth below.

Participation in the Reinvestment Plan is completely voluntary and may be terminated or resumed at any time without penalty by notice if received and processed by the Reinvestment Plan Agent prior to the dividend record date. Additionally, the Reinvestment Plan Agent seeks to process notices received after the record date but prior to the payable date and such notices often will become effective by the payable date. Where late notices are not processed by the applicable payable date, such termination or resumption will be effective with respect to any subsequently declared dividend or other distribution.

The Reinvestment Plan Agents fees for the handling of the reinvestment of distributions will be paid by each Fund. However, each participant will pay a pro rata share of brokerage commissions incurred with respect to the Reinvestment Plan Agents open-market purchases in connection with the reinvestment of all distributions. The automatic reinvestment of all distributions will not relieve participants of any U.S. federal, state or local income tax that may be payable on such dividends or distributions.

Each Fund reserves the right to amend or terminate the Reinvestment Plan. There is no direct service charge to participants in the Reinvestment Plan; however, each Fund reserves the right to amend the Reinvestment Plan to include a service charge payable by the participants. Participants in MPA that request a sale of shares are subject to a $2.50 sales fee and a $0.15 per share sold brokerage commission fee. Participants in MUC, MUJ and MIY that request a sale of shares are subject to a $0.02 per share sold brokerage commission. All correspondence concerning the Reinvestment Plan should be directed to Computershare Trust Company, N.A. through the internet at computershare.com/blackrock, or in writing to Computershare, P.O. Box 505000, Louisville, KY 40233, Telephone: (800) 699-1236. Overnight correspondence should be directed to the Reinvestment Plan Agent at Computershare, 462 South 4th Street, Suite 1600, Louisville, KY 40202.

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Director and Officer Information

| Independent Directors (a) — Name Year of Birth (b) | Position(s) Held (Length of Service) (c) | Principal Occupation(s) During Past Five Years | Number of BlackRock-Advised Registered Investment Companies (RICs) Consisting of Investment
Portfolios (Portfolios) Overseen | Public Company and Other Investment Company Directorships Held During Past Five Years |
| --- | --- | --- | --- | --- |
| Richard E. Cavanagh 1946 | Co-Chair of the Board and Director (Since 2007) | Director, The Guardian Life Insurance Company of America since 1998; Board Chair, Volunteers of America (a not-for-profit organization) from 2015 to 2018 (board member since 2009); Director, Arch Chemicals (chemical and allied products) from 1999 to 2011; Trustee, Educational
Testing Service from 1997 to 2009 and Chairman thereof from 2005 to 2009; Senior Advisor, The Fremont Group since 2008 and Director thereof since 1996; Faculty Member/Adjunct Lecturer, Harvard University since 2007 and Executive Dean from 1987 to
1995; President and Chief Executive Officer, The Conference Board, Inc. (global business research organization) from 1995 to 2007. | 73 RICs consisting of 100 Portfolios | None |
| Karen P. Robards 1950 | Co-Chair of the Board and Director (Since 2007) | Principal of Robards & Company, LLC (consulting and private investing) since 1987; Co-founder and Director of the Cooke Center for Learning and
Development (a not-for-profit organization) since 1987; Director of Enable Injections, LLC (medical devices) since 2019; Investment Banker at Morgan Stanley from 1976 to 1987. | 73 RICs consisting of 100 Portfolios | Greenhill & Co., Inc.; AtriCure, Inc. (medical devices) from 2000 until 2017. |
| Michael J. Castellano 1946 | Director (Since 2011) | Chief Financial Officer of Lazard Group LLC from 2001 to 2011; Chief Financial Officer of Lazard Ltd from 2004 to 2011; Director, Support Our Aging Religious (non-profit) from 2009 to June 2015 and from 2017 to September 2020; Director, National Advisory Board of Church Management at Villanova University since 2010; Trustee, Domestic Church Media Foundation since
2012; Director, CircleBlack Inc. (financial technology company) from 2015 to July 2020. | 73 RICs consisting of 100 Portfolios | None |
| Cynthia L. Egan 1955 | Director (Since 2016) | Advisor, U.S. Department of the Treasury from 2014 to 2015; President, Retirement Plan Services, for T. Rowe Price Group, Inc. from 2007 to 2012; executive positions within Fidelity
Investments from 1989 to 2007. | 73 RICs consisting of 100 Portfolios | Unum (insurance); The Hanover Insurance Group (Board Chair) (insurance); Huntsman Corporation (chemical products); Envestnet (investment platform) from 2013 until 2016. |
| Frank J. Fabozzi (d) 1948 | Director (Since 2007) | Editor of The Journal of Portfolio Management since 1986; Professor of Finance, EDHEC Business School (France) since 2011; Visiting Professor, Princeton University for the 2013 to 2014
academic year and Spring 2017 semester; Professor in the Practice of Finance, Yale University School of Management from 1994 to 2011 and currently a Teaching Fellow in Yales Executive Programs; Board Member, BlackRock Equity-Liquidity Funds
from 2014 to 2016; affiliated professor Karlsruhe Institute of Technology from 2008 to 2011; Visiting Professor, Rutgers University for the Spring 2019 semester; Visiting Professor, New York University for the 2019 academic year; Adjunct Professor
of Finance, Carnegie Mellon University in fall 2020 semester. | 75 RICs consisting of 102 Portfolios | None |

D I R E C T O R A N D O F F I C E R I N F O R M A T I O N 75

Director and Officer Information (continued)

| Independent Directors (a) (continued) — Name Year of Birth (b) | Position(s) Held (Length of Service) (c) | Principal Occupation(s) During Past Five Years | Number of BlackRock-Advised Registered Investment Companies (RICs) Consisting of Investment
Portfolios (Portfolios) Overseen | Public Company and Other Investment Company Directorships Held During Past Five Years |
| --- | --- | --- | --- | --- |
| Lorenzo A. Flores 1964 | Director (Since 2021) | Vice Chairman, Kioxia, Inc. since 2019; Chief Financial Officer, Xilinx, Inc. from 2016 to 2019; Corporate Controller, Xilinx, Inc. from 2008 to 2016. | 73 RICs consisting of 100 Portfolios | None |
| Stayce D. Harris 1959 | Director (Since 2021) | Lieutenant General, Inspector General, Office of the Secretary of the United States Air Force from 2017 to 2019; Lieutenant General, Assistant Vice Chief of Staff and Director, Air Staff,
United States Air Force from 2016 to 2017; Major General, Commander, 22nd Air Force, AFRC, Dobbins Air Reserve Base, Georgia from 2014 to 2016; Pilot, United Airlines from 1990 to 2020. | 73 RICs consisting of 100 Portfolios | None |
| J. Phillip Holloman 1955 | Director (Since 2021) | President and Chief Operating Officer, Cintas Corporation from 2008 to 2018. | 73 RICs consisting of 100 Portfolios | PulteGroup, Inc. (home construction); Rockwell Automation Inc. (industrial automation) |
| R. Glenn Hubbard 1958 | Director (Since 2007) | Dean, Columbia Business School from 2004 to 2019; Faculty member, Columbia Business School since 1988. | 73 RICs consisting of 100 Portfolios | ADP (data and information services) 2004-2020; Metropolitan Life Insurance Company (insurance); KKR Financial Corporation (finance) from 2004 until 2014. |
| W. Carl Kester (d) 1951 | Director (Since 2007) | George Fisher Baker Jr. Professor of Business Administration, Harvard Business School since 2008; Deputy Dean for Academic Affairs from 2006 to 2010; Chairman of the Finance Unit, from 2005 to
2006; Senior Associate Dean and Chairman of the MBA Program from 1999 to 2005; Member of the faculty of Harvard Business School since 1981. | 75 RICs consisting of 102 Portfolios | None |
| Catherine A. Lynch (d) 1961 | Director (Since 2016) | Chief Executive Officer, Chief Investment Officer and various other positions, National Railroad Retirement Investment Trust from 2003 to 2016; Associate Vice President for Treasury
Management, The George Washington University from 1999 to 2003; Assistant Treasurer, Episcopal Church of America from 1995 to 1999. | 75 RICs consisting of 102 Portfolios | None |

76 2 0 2 1 B L A C K R O C K A N N U A L R E P O R T T O S H A R E H O L D E R S

Director and Officer Information (continued)

| Interested Directors (a)(e) — Name Year of Birth (b) | Position(s) Held (Length of Service) (c) | Principal Occupation(s) During Past Five Years | Number of BlackRock-Advised Registered Investment Companies (RICs) Consisting of Investment
Portfolios (Portfolios) Overseen | Public Company and Other Investment Company Directorships Held During Past Five Years |
| --- | --- | --- | --- | --- |
| Robert Fairbairn 1965 | Director (Since 2018) | Vice Chairman of BlackRock, Inc. since 2019; Member of BlackRocks Global Executive and Global Operating Committees; Co-Chair of BlackRocks
Human Capital Committee; Senior Managing Director of BlackRock, Inc. from 2010 to 2019; oversaw BlackRocks Strategic Partner Program and Strategic Product Management Group from 2012 to 2019; Member of the Board of Managers of BlackRock
Investments, LLC from 2011 to 2018; Global Head of BlackRocks Retail and iShares ® businesses from 2012 to 2016. | 103 RICs consisting of 252 Portfolios | None |
| John M. Perlowski (d) 1964 | Director (Since 2015) President and Chief Executive Officer (Since 2010) | Managing Director of BlackRock, Inc. since 2009; Head of BlackRock Global Accounting and Product Services since 2009; Advisory Director of Family Resource Network (charitable foundation) since
2009. | 105 RICs consisting of 254 Portfolios | None |

(a) The address of each Director is c/o BlackRock, Inc., 55 East 52nd Street, New York, New York 10055.

(b) Each Independent Director holds office until his or her successor is duly elected and qualifies or until his or her earlier death, resignation, retirement or removal as provided by the Funds by-laws or charter or statute, or until December 31 of the year in which he or she turns 75. Directors who are interested persons, as defined in the Investment Company Act serve until their successor is duly elected and qualifies or until their earlier death, resignation, retirement or removal as provided by the Funds by-laws or statute, or until December 31 of the year in which they turn 72. The Board may determine to extend the terms of Independent Directors on a case-by-case basis, as appropriate.

(c) Following the combination of Merrill Lynch Investment Managers, L.P. (MLIM) and BlackRock, Inc. in September 2006, the various legacy MLIM and legacy BlackRock fund boards were realigned and consolidated into three new fund boards in 2007. Certain Independent Directors first became members of the boards of other legacy MLIM or legacy BlackRock funds as follows: Richard E. Cavanagh, 1994; Frank J. Fabozzi, 1988; R. Glenn Hubbard, 2004; W. Carl Kester, 1995; and Karen P. Robards, 1998.

(d) Dr. Fabozzi, Dr. Kester, Ms. Lynch and Mr. Perlowski are also trustees of the BlackRock Credit Strategies Fund and BlackRock Private Investments Fund.

(e) Mr. Fairbairn and Mr. Perlowski are both interested persons, as defined in the 1940 Act, of the Fund based on their positions with BlackRock, Inc. and its affiliates. Mr. Fairbairn and Mr. Perlowski are also board members of the BlackRock Multi-Asset Complex.

D I R E C T O R A N D O F F I C E R I N F O R M A T I O N 77

Director and Officer Information (continued)

Officers Who Are Not Directors (a) — Name Year of Birth (b)	Position(s) Held (Length of Service)	Principal Occupation(s) During Past Five Years
Jonathan Diorio 1980	Vice President (Since 2015)	Managing Director of BlackRock, Inc. since 2015; Director of BlackRock, Inc. from 2011 to 2015.
Trent Walker 1974	Chief Financial Officer (Since 2021)	Managing Director of BlackRock, Inc. since September 2019; Executive Vice President of PIMCO from 2016 to 2019; Senior Vice President of PIMCO from 2008 to 2015; Treasurer from 2013 to 2019
and Assistant Treasurer from 2007 to 2017 of PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, 2 PIMCO-sponsored interval funds and 21 PIMCO-sponsored closed-end funds.
Jay M. Fife 1970	Treasurer (Since
2007)	Managing Director of BlackRock, Inc. since 2007.
Charles Park 1967	Chief Compliance Officer (Since 2014)	Anti-Money Laundering Compliance Officer for certain BlackRock-advised Funds from 2014 to 2015; Chief Compliance Officer of BlackRock Advisors, LLC and the BlackRock-advised Funds in the
BlackRock Multi-Asset Complex and the BlackRock Fixed-Income Complex since 2014; Principal of and Chief Compliance Officer for iShares ® Delaware Trust Sponsor LLC since 2012 and BlackRock Fund
Advisors (BFA) since 2006; Chief Compliance Officer for the BFA-advised iShares ® exchange traded funds since 2006; Chief Compliance Officer
for BlackRock Asset Management International Inc. since 2012.
Janey Ahn 1975	Secretary (Since
2012)	Managing Director of BlackRock, Inc. since 2018; Director of BlackRock, Inc. from 2009 to 2017.

(a) The address of each Officer is c/o BlackRock, Inc., 55 East 52nd Street, New York, New York 10055.

(b) Officers of the Fund serve at the pleasure of the Board.

Neal J. Andrews retired as the Chief Financial Officer effective December 31, 2020, and Trent Walker was elected as the Chief Financial Officer effective January 1, 2021.

Effective June 10, 2021, Stayce D. Harris and J. Phillip Holloman were each appointed to serve as a Director of the Funds. Effective July 30, 2021, Lorenzo A. Flores was appointed to serve as a Director of the Funds.

78 2 0 2 1 B L A C K R O C K A N N U A L R E P O R T T O S H A R E H O L D E R S

Additional Information

Proxy Results

The Annual Meeting of Shareholders was held on July 29, 2021 for shareholders of record on June 1, 2021, to elect director nominees for each Fund. There were no broker non-votes with regard to any of the Funds.

Fund Name	Michael J. Castellano — Votes For	Votes Withheld	Votes For	Votes Withheld		Votes For	Votes Withheld
MUC	18,684,396	16,362,846		18,718,987	16,328,255		18,840,026	16,207,216
MUJ	18,211,623	8,086,215		18,201,018	8,096,820		18,091,446	8,206,392
MIY	20,060,516	4,976,275		20,055,185	4,981,606		19,947,885	5,088,906
Fund Name		Votes Against	Abstain	Votes Against	Abstain		Votes Against	Abstain
MPA	10,849,207	357,509	20,940	10,852,451	354,929	20,276	10,773,769	431,165	22,722
Fund Name	Robert Fairbairn		Stayce Harris			J. Phillip Holloman
	Votes For	Votes Withheld	Votes For	Votes Withheld		Votes For	Votes Withheld
MUC	34,206,893	840,349		34,219,933	827,309		34,082,531	964,711
MUJ	25,324,382	973,456		25,391,551	906,287		25,528,791	769,047
MIY	24,509,325	527,466		24,392,501	644,290		24,496,647	540,144
Fund Name		Votes Against	Abstain	Votes Against	Abstain		Votes Against	Abstain
MPA	10,981,045	224,714	21,897	10,723,497	485,943	18,216	10,848,196	359,554	19,906
Fund Name	R. Glenn Hubbard		Catherine A. Lynch			John M. Perlowski
	Votes For	Votes Withheld	Votes For	Votes Withheld		Votes For	Votes Withheld
MUC	18,616,165	16,431,077		34,094,127	953,115		34,114,395	932,847
MUJ	18,349,093	7,948,745		25,424,048	873,790		25,312,292	985,546
MIY	20,012,522	5,024,269		24,428,526	608,265		24,521,297	515,494
Fund Name		Votes Against	Abstain	Votes Against	Abstain		Votes Against	Abstain
MPA	10,936,290	279,356	12,010	10,899,036	315,422	13,198	10,971,456	245,435	10,765
Fund Name	Karen P. Robards		Frank J. Fabozzi (a)			W. Carl Kester (a)
	Votes For	Votes Withheld	Votes For	Votes Withheld		Votes For	Votes Withheld
MUC	18,717,244	16,329,998		2,540	0		2,540	0
MUJ	18,260,821	8,037,017		2,371	0		2,371	0
MIY	19,944,684	5,092,107		2,319	0		2,319	0
Fund Name		Votes Against	Abstain	Votes Against	Abstain		Votes Against	Abstain
MPA	10,741,338	435,621	50,697	826	0	0	826	0	0

(a) Voted on by holders of Preferred Shares only.

Lorenzo A. Flores was appointed as a Director effective July 30, 2021.

Fund Certification

The Funds are listed for trading on the NYSE and have filed with the NYSE their annual chief executive officer certification regarding compliance with the NYSEs listing standards. The Funds filed with the SEC the certification of its chief executive officer and chief financial officer required by Section 302 of the Sarbanes-Oxley Act.

Regulation Regarding Derivatives

On October 28, 2020, the Securities and Exchange Commission (the SEC) adopted new regulations governing the use of derivatives by registered investment companies (Rule 18f-4). The Funds will be required to implement and comply with Rule 18f-4 by August 19, 2022. Once implemented, Rule 18f-4 will impose limits on the amount of derivatives a fund can enter into, eliminate the asset segregation framework currently used by funds to comply with Section 18 of the 1940 Act, treat derivatives as senior securities and require funds whose use of derivatives is more than a limited specified exposure amount to establish and maintain a comprehensive derivatives risk management program and appoint a derivatives risk manager.

A D D I T I O N A L I N F O R M A T I O N 79

Additional Information (continued)

Environmental, Social and Governance (ESG) Integration

Although a Fund does not seek to implement a specific ESG, impact or sustainability strategy unless otherwise disclosed, Fund management will consider ESG characteristics as part of the investment process for actively managed Funds. These considerations will vary depending on a Funds particular investment strategies and may include consideration of third-party research as well as consideration of proprietary BlackRock research across the ESG risks and opportunities regarding an issuer. Fund management will consider those ESG characteristics it deems relevant or additive when making investment decisions for a Fund. The ESG characteristics utilized in a Funds investment process are anticipated to evolve over time and one or more characteristics may not be relevant with respect to all issuers that are eligible for investment. ESG characteristics are not the sole considerations when making investment decisions for a Fund. Further, investors can differ in their views of what constitutes positive or negative ESG characteristics. As a result, a Fund may invest in issuers that do not reflect the beliefs and values with respect to ESG of any particular investor. ESG considerations may affect a Funds exposure to certain companies or industries and a Fund may forego certain investment opportunities. While Fund management views ESG considerations as having the potential to contribute to a Funds long-term performance, there is no guarantee that such results will be achieved.

Dividend Policy

Each Funds dividend policy is to distribute all or a portion of its net investment income to its shareholders on a monthly basis. In order to provide shareholders with a more stable level of distributions, the Funds may at times pay out less than the entire amount of net investment income earned in any particular month and may at times in any particular month pay out such accumulated but undistributed income in addition to net investment income earned in that month. As a result, the distributions paid by the Funds for any particular month may be more or less than the amount of net investment income earned by the Funds during such month. The Funds current accumulated but undistributed net investment income, if any, is disclosed as accumulated earnings (loss) in the Statements of Assets and Liabilities, which comprises part of the financial information included in this report.

General Information

The Funds do not make available copies of their Statements of Additional Information because the Funds shares are not continuously offered, which means that the Statement of Additional Information of each Fund has not been updated after completion of the respective Funds offerings and the information contained in each Funds Statement of Additional Information may have become outdated.

The following information is a summary of certain changes since July 31, 2020. This information may not reflect all of the changes that have occurred since you purchased the relevant Fund.

Effective October 19, 2020, each of MUC, MUJ and MIY has elected to be subject to the Maryland Control Share Acquisition Act (the MCSAA). In general, the MCSAA limits the ability of holders of control shares to vote those shares above various threshold levels that start at 10% unless the other stockholders of MUC, MUJ and MIY, as applicable, reinstate those voting rights at a meeting of stockholders as provided in the MCSAA. Control shares are generally defined in the MCSAA as shares of stock that, if aggregated with all other shares of stock that are either (i) owned by a person or (ii) as to which that person is entitled to exercise or direct the exercise of voting power, except solely by virtue of a revocable proxy, would entitle that person to exercise voting power in electing directors above various thresholds of voting power starting at 10%. MUCs, MUJs and MIYs Bylaws also provide that the provisions of the MCSAA shall not apply to the voting rights of the holders of any shares of preferred stock of MUC, MUJ and MIY, but the MCSAA would apply to any common stock held by the same holder.

Except if noted otherwise herein, there were no changes to the Funds charters or by-laws that would delay or prevent a change of control of the Funds that were not approved by the shareholders. Except if noted otherwise herein, there have been no changes in the persons who are primarily responsible for the day-to-day management of the Funds portfolios.

In accordance with Section 23(c) of the Investment Company Act of 1940, each Fund may from time to time purchase shares of its common stock in the open market or in private transactions.

Quarterly performance, semi-annual and annual reports, current net asset value and other information regarding the Funds may be found on BlackRocks website, which can be accessed at blackrock.com . Any reference to BlackRocks website in this report is intended to allow investors public access to information regarding the Funds and does not, and is not intended to, incorporate BlackRocks website in this report.

Electronic Delivery

Shareholders can sign up for e-mail notifications of quarterly statements, annual and semi-annual shareholder reports by enrolling in the electronic delivery program. Electronic copies of shareholder reports are available on BlackRocks website.

To enroll in electronic delivery:

Shareholders Who Hold Accounts with Investment Advisers, Banks or Brokerages:

Please contact your financial adviser. Please note that not all investment advisers, banks or brokerages may offer this service.

80 2 0 2 1 B L A C K R O C K A N N U A L R E P O R T T O S H A R E H O L D E R S

Additional Information (continued)

Householding

The Funds will mail only one copy of shareholder documents, annual and semi-annual reports, Rule 30e-3 notices and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called householding and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please call the Funds at (800) 882-0052.

Availability of Quarterly Schedule of Investments

The Funds file their complete schedules of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to their reports on Form N-PORT. The Funds Forms N-PORT are available on the SECs website at sec.gov . Additionally, each Fund makes its portfolio holdings for the first and third quarters of each fiscal year available at blackrock.com/fundreports .

Availability of Proxy Voting Policies, Procedures and Voting Records

A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities and information about how the Funds voted proxies relating to securities held in the Funds portfolios during the most recent 12-month period ended June 30 is available without charge, upon request (1) by calling (800) 882-0052; (2) on the BlackRock website at blackrock.com ; and (3) on the SECs website at sec.gov .

Availability of Fund Updates

BlackRock will update performance and certain other data for the Funds on a monthly basis on its website in the Closed-end Funds section of blackrock.com as well as certain other material information as necessary from time to time. Investors and others are advised to check the website for updated performance information and the release of other material information about the Funds. This reference to BlackRocks website is intended to allow investors public access to information regarding the Funds and does not, and is not intended to, incorporate BlackRocks website in this report.

BlackRock Privacy Principles

BlackRock is committed to maintaining the privacy of its current and former fund investors and individual clients (collectively, Clients) and to safeguarding their non-public personal information. The following information is provided to help you understand what personal information BlackRock collects, how we protect that information and why in certain cases we share such information with select parties.

If you are located in a jurisdiction where specific laws, rules or regulations require BlackRock to provide you with additional or different privacy-related rights beyond what is set forth below, then BlackRock will comply with those specific laws, rules or regulations.

BlackRock obtains or verifies personal non-public information from and about you from different sources, including the following: (i) information we receive from you or, if applicable, your financial intermediary, on applications, forms or other documents; (ii) information about your transactions with us, our affiliates, or others; (iii) information we receive from a consumer reporting agency; and (iv) from visits to our websites.

BlackRock does not sell or disclose to non-affiliated third parties any non-public personal information about its Clients, except as permitted by law or as is necessary to respond to regulatory requests or to service Client accounts. These non-affiliated third parties are required to protect the confidentiality and security of this information and to use it only for its intended purpose.

We may share information with our affiliates to service your account or to provide you with information about other BlackRock products or services that may be of interest to you. In addition, BlackRock restricts access to non-public personal information about its Clients to those BlackRock employees with a legitimate business need for the information. BlackRock maintains physical, electronic and procedural safeguards that are designed to protect the non-public personal information of its Clients, including procedures relating to the proper storage and disposal of such information.

A D D I T I O N A L I N F O R M A T I O N 81

Additional Information (continued)

Fund and Service Providers

Investment Adviser

BlackRock Advisors, LLC

Wilmington, DE 19809

Accounting Agent and Custodian

State Street Bank and Trust Company

Boston, MA 02111

Transfer Agent

Computershare Trust Company, N.A.

Canton, MA 02021

VRDP Liquidity Provider

Bank of America, N.A. (a)

New York, NY 10036

The Toronto-Dominion Bank (b)

New York, NY 10019

(a) For MUJ.

(b) For MPA and MIY.

VRDP Remarketing Agent

BofA Securities, Inc. (a)

New York, NY 10036

TD Securities (USA) LLC (b)

New York, NY 10019

VRDP Tender and Paying Agent and VMTP Redemption and Paying Agent

The Bank of New York Mellon

New York, NY 10286

Independent Registered Public Accounting Firm

Deloitte & Touche LLP

Boston, MA 02116

Legal Counsel

Willkie Farr & Gallagher LLP

New York, NY 10019

Address of the Funds

100 Bellevue Parkway

Wilmington, DE 19809

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Glossary of Terms Used in this Report

Portfolio Abbreviation
AGC	Assured Guaranty Corp.
AGM	Assured Guaranty Municipal Corp.
AGM-CR	AGM Insured Custodial Receipt
AMBAC	AMBAC Assurance Corp.
AMT	Alternative Minimum Tax
ARB	Airport Revenue Bonds
BAM	Build America Mutual Assurance Co.
BHAC-CR	Berkshire Hathaway Assurance Corp. - Custodian Receipt
CAB	Capital Appreciation Bonds
COP	Certificates of Participation
CR	Custodian Receipt
GNMA	Government National Mortgage Association
GO	General Obligation Bonds
GTD	GTD Guaranteed
HUD SECT 8	U.S. Department of Housing and Urban Development Section 8
M/F	Multi-Family
NPFGC	National Public Finance Guarantee Corp.
Q-SBLF	Qualified School Bond Loan Fund
RB	Revenue Bond
S/F	Single-Family
SAB	Special Assessment Bonds
SAN	State Aid Notes
SAP	Subject to Appropriations
SAW	State Aid Withholding
SCH BD RES FD	School Board Resolution Fund
ST	Special Tax
TA	Tax Allocation

G L O S S A R Y O F T E R M S U S E D I N T H I S R E P O R T 83

Want to know more?

blackrock.com | 800-882-0052

This report is intended for current holders. It is not a prospectus. Past performance results shown in this report should not be considered a representation of future performance. The Funds have leveraged their Common Shares, which creates risks for Common Shareholders, including the likelihood of greater volatility of NAV and market price of the Common Shares, and the risk that fluctuations in short-term interest rates may reduce the Common Shares yield. Statements and other information herein are as dated and are subject to change.

MQUAL5-07/21-AR

(b) Not Applicable

Item 2 Code of Ethics The registrant (or the Fund) has adopted a code of ethics, as of the end of the period covered by this report, applicable to the registrants principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. During the period covered by this report, the code of ethics was amended to update certain information and to make other non-material changes. During the period covered by this report, there have been no waivers granted under the code of ethics. The registrant undertakes to provide a copy of the code of ethics to any person upon request, without charge, who calls 1-800-882-0052, option 4.

Item 3 Audit Committee Financial Expert The registrants board of directors (the board of directors), has determined that (i) the registrant has the following audit committee financial experts serving on its audit committee and (ii) each audit committee financial expert is independent:

Michael Castellano

Frank J. Fabozzi

Catherine A. Lynch

Karen P. Robards

The registrants board of directors has determined that Karen P. Robards qualifies as an audit committee financial expert pursuant to Item 3(c)(4) of Form N-CSR.

Ms. Robards has a thorough understanding of generally accepted accounting principles, financial statements and internal control over financial reporting as well as audit committee functions. Ms. Robards has been President of Robards & Company, a financial advisory firm, since 1987. Ms. Robards was formerly an investment banker for more than 10 years where she was responsible for evaluating and assessing the performance of companies based on their financial results. Ms. Robards has over 30 years of experience analyzing financial statements. She also is a member of the audit committee of one publicly held company and a non-profit organization.

Under applicable securities laws, a person determined to be an audit committee financial expert will not be deemed an expert for any purpose, including without limitation for the purposes of Section 11 of the Securities Act of 1933, as a result of being designated or identified as an audit committee financial expert. The designation or identification of a person as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities greater than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and board of directors in the absence of such designation or identification. The designation or identification of a person as an audit committee financial expert does not affect the duties, obligations, or liability of any other member of the audit committee or board of directors.

Item 4 Principal Accountant Fees and Services

The following table presents fees billed by Deloitte & Touche LLP (D&T) in each of the last two fiscal years for the services rendered to the Fund:

Entity Name	(a) Audit Fees — Current Fiscal Year End	Previous Fiscal Year End	(b) Audit-Related Fees 1 — Current Fiscal Year End	Previous Fiscal Year End	(c) Tax Fees 2 — Current Fiscal Year End	Previous Fiscal Year End	(d) All Other Fees — Current Fiscal Year End	Previous Fiscal Year End
BlackRock MuniHoldings California Quality Fund, Inc.	$35,653	$36,720	$207	$0	$20,900	$20,900	$0	$0

The following table presents fees billed by D&T that were required to be approved by the registrants audit committee (the Committee) for services that relate directly to the operations or financial reporting of the Fund and that are rendered on behalf of BlackRock Advisors, LLC (Investment Adviser or BlackRock) and entities controlling, controlled by, or under common control with BlackRock (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) that provide ongoing services to the Fund (Affiliated Service Providers):

	Current Fiscal Year End	Previous Fiscal Year End
(b)
Audit-Related Fees 1	$0	$0
(c)
Tax Fees 2	$0	$0
(d)
All Other Fees 3	$2,032,000	$1,984,000

1 The nature of the services includes assurance and related services reasonably related to the performance of the audit or review of financial statements not included in Audit Fees, including accounting consultations, agreed-upon procedure reports, attestation reports, comfort letters, out-of-pocket expenses and internal control reviews not required by regulators.

2 The nature of the services includes tax compliance and/or tax preparation, including services relating to the filing or amendment of federal, state or local income tax returns, regulated investment company qualification reviews, taxable income and tax distribution calculations.

3 Non-audit fees of $2,032,000 and $1,984,000 for the current fiscal year and previous fiscal year, respectively, were paid to the Funds principal accountant in their entirety by BlackRock, in connection with services provided to the Affiliated Service Providers of the Fund and of certain other funds sponsored and advised by BlackRock or its affiliates for a service organization review and an accounting research tool subscription. These amounts represent aggregate fees paid by BlackRock and were not allocated on a per fund basis.

(e)(1) Audit Committee Pre-Approval Policies and Procedures:

The Committee has adopted policies and procedures with regard to the pre-approval of services. Audit, audit-related and tax compliance services provided to the registrant on an annual basis require specific pre-approval by the Committee. The Committee also must approve other non-audit services provided to the registrant and those non-audit services provided to the Investment Adviser and Affiliated Service Providers that relate directly to the operations and the financial reporting of the registrant. Certain of these non-audit services that the Committee believes are (a) consistent with the SECs auditor independence rules and (b) routine and recurring services that will not impair the independence of the independent accountants may be approved by the Committee without consideration on a specific case-by-case basis (general pre-approval). The term of any general pre-approval is 12 months from the date of the pre-approval, unless the Committee provides for a different period. Tax or other non-audit services provided to the registrant which have a direct impact on the operations or financial reporting of the registrant will only be deemed pre-approved provided that any individual project does not exceed $10,000 attributable to the registrant or $50,000 per project. For this purpose, multiple projects will be aggregated to determine if they exceed the previously mentioned cost levels.

Any proposed services exceeding the pre-approved cost levels will require specific pre-approval by the Committee, as will any other services not subject to general pre-approval (e.g., unanticipated but permissible services). The Committee is informed of each service approved

subject to general pre-approval at the next regularly scheduled in-person board meeting. At this meeting, an analysis of such services is presented to the Committee for ratification. The Committee may delegate to the Committee Chairman the authority to approve the provision of and fees for any specific engagement of permitted non-audit services, including services exceeding pre-approved cost levels.

(e)(2) None of the services described in each of Items 4(b) through (d) were approved by the Committee pursuant to the de minimis exception in paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

(f) Not Applicable

(g) The aggregate non-audit fees, defined as the sum of the fees shown under Audit-Related Fees, Tax Fees and All Other Fees, paid to the accountant for services rendered by the accountant to the registrant, the Investment Adviser and the Affiliated Service Providers were:

Entity Name	Current Fiscal Year End	Previous Fiscal Year End
BlackRock MuniHoldings California Quality Fund, Inc.	$20,900	$21,500

Additionally, the amounts billed by D&T in connection with services provided to the Affiliated Service Providers of the Fund and of other funds sponsored or advised by BlackRock or its affiliates during the current and previous fiscal years for a service organization review and an accounting research tool subscription were:

Current Fiscal Year End	Previous Fiscal Year End
$2,032,000	$1,984,000

These amounts represent aggregate fees paid by BlackRock and were not allocated on a per fund basis.

(h) The Committee has considered and determined that the provision of non-audit services that were rendered to the Investment Adviser, and the Affiliated Service Providers that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountants independence.

Item 5 Audit Committee of Listed Registrant

(a) The following individuals are members of the registrants separately designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(58)(A)):

Michael Castellano

Frank J. Fabozzi

J. Phillip Holloman

Catherine A. Lynch

Karen P. Robards

(b) Not Applicable

Item 6 Investments

(a) The registrants Schedule of Investments is included as part of the Report to Stockholders filed under Item 1(a) of this Form.

(b) Not Applicable due to no such divestments during the semi-annual period covered since the previous Form N-CSR filing.

Item 7 Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies The board of directors has delegated the voting of proxies for the Funds portfolio securities to the Investment Adviser pursuant to the Investment Advisers proxy voting guidelines. Under these guidelines, the Investment Adviser will vote proxies related to Fund securities in the best interests of the Fund and its stockholders. From time to time, a vote may present a conflict between the interests of the Funds stockholders, on the one hand, and those of the Investment Adviser, or any affiliated person of the Fund or the Investment Adviser, on the other. In such event, provided that the Investment Advisers Equity Investment Policy Oversight Committee, or a sub-committee thereof (the Oversight Committee) is aware of the real or potential conflict or material non-routine matter and if the Oversight Committee does not reasonably believe it is able to follow its general voting guidelines (or if the particular proxy matter is not addressed in the guidelines) and vote impartially, the Oversight Committee may retain an independent fiduciary to advise the Oversight Committee on how to vote or to cast votes on behalf of the Investment Advisers clients. If the Investment Adviser determines not to retain an independent fiduciary, or does not desire to follow the advice of such independent fiduciary, the Oversight Committee shall determine how to vote the proxy after consulting with the Investment Advisers Portfolio Management Group and/or the Investment Advisers Legal and Compliance Department and concluding that the vote cast is in its clients best interest notwithstanding the conflict. A copy of the Funds Proxy Voting Policy and Procedures are attached as Exhibit 99.PROXYPOL , a copy of the Funds Global Corporate Governance & Engagement Principles are attached as Exhibit 99.GLOBAL.CORP.GOV and a copy of the Funds Corporate Governance and Proxy Voting Guidelines for U.S. Securities are attached as Exhibit 99.US.CORP.GOV . Information on how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge, (i) at www.blackrock.com and (ii) on the SECs website at http://www.sec.gov .

Item 8 Portfolio Managers of Closed-End Management Investment Companies

(a)(1) As of the date of filing this Report:

The registrant is managed by a team of investment professionals comprised of Walter OConnor, CFA, Managing Director at BlackRock, Phillip Soccio, CFA, Director at BlackRock, Michael Perilli, Director at BlackRock and Kevin Maloney, Vice President at BlackRock. Each is a member of BlackRocks municipal tax-exempt management group. Each is jointly responsible for the day-to-day management of the registrants portfolio, which includes setting the registrants overall investment strategy, overseeing the management of

the registrant and/or selection of its investments. Messrs. OConnor and Soccio have been members of the registrants portfolio management team since 2006, 2016, respectively. Messrs. Perilli and Maloney have been members of the registrants portfolio management team since 2018.

| Portfolio
Manager | Biography |
| --- | --- |
| Walter OConnor, CFA | Managing Director of BlackRock since 2006; Managing Director of Merrill Lynch Investment Managers, L.P. (MLIM) from 2003 to 2006; Director of MLIM from 1998 to 2003. |
| Phillip Soccio | Director of BlackRock since 2009; Vice President of BlackRock from 2005 to 2008. |
| Michael Perilli | Director of BlackRock since 2021; Vice President of BlackRock from 2017 to 2020; Associate of BlackRock from 2008 to 2016. |
| Kevin Maloney | Vice President of BlackRock since 2018; Associate of BlackRock from 2014 to 2017; Analyst of BlackRock from 2011 to 2013. |

(a)(2) As of July 31, 2021:

| (i) Name of Portfolio Manager | (ii) Number of Other Accounts Managed and Assets by Account Type — Other Registered Investment Companies | Other Pooled Investment Vehicles | Other Accounts | (iii)
Number of Other Accounts and Assets for Which Advisory Fee is Performance-Based — Other Registered Investment Companies | Other Pooled Investment Vehicles | Other Accounts |
| --- | --- | --- | --- | --- | --- | --- |
| Walter OConnor, CFA | 22 | 0 | 0 | 0 | 0 | 0 |
| | $33.37 Billion | $0 | $0 | $0 | $0 | $0 |
| Phillip Soccio | 11 | 0 | 0 | 0 | 0 | 0 |
| | $5.12 Billion | $0 | $0 | $0 | $0 | $0 |
| Michael Perilli | 14 | 0 | 0 | 0 | 0 | 0 |
| | $7.35 Billion | $0 | $0 | $0 | $0 | $0 |
| Kevin Maloney | 8 | 0 | 0 | 0 | 0 | 0 |
| | $3.98 Billion | $0 | $0 | $0 | $0 | $0 |

(iv) Portfolio Manager Potential Material Conflicts of Interest

BlackRock has built a professional working environment, firm-wide compliance culture and compliance procedures and systems designed to protect against potential incentives that may favor one account over another. BlackRock has adopted policies and procedures that address the allocation of investment opportunities, execution of portfolio transactions, personal trading by employees and other potential conflicts of interest that are designed to ensure that all client accounts are treated equitably over time. Nevertheless, BlackRock furnishes investment management and advisory services to numerous clients in addition to the Fund, and BlackRock may, consistent with applicable law, make investment recommendations to other clients or accounts (including accounts which are hedge funds or have performance or higher fees paid to BlackRock, or in which portfolio managers have a personal interest in the receipt of such fees),

which may be the same as or different from those made to the Fund. In addition, BlackRock, Inc., its affiliates and significant shareholders and any officer, director, shareholder or employee may or may not have an interest in the securities whose purchase and sale BlackRock recommends to the Fund. BlackRock, Inc., or any of its affiliates or significant shareholders, or any officer, director, shareholder, employee or any member of their families may take different actions than those recommended to the Fund by BlackRock with respect to the same securities. Moreover, BlackRock may refrain from rendering any advice or services concerning securities of companies of which any of BlackRock, Inc.s (or its affiliates or significant shareholders) officers, directors or employees are directors or officers, or companies as to which BlackRock, Inc. or any of its affiliates or significant shareholders or the officers, directors and employees of any of them has any substantial economic interest or possesses material non-public information. Certain portfolio managers also may manage accounts whose investment strategies may at times be opposed to the strategy utilized for a fund. It should also be noted that a portfolio manager may be managing hedge fund and/or long only accounts, or may be part of a team managing hedge fund and/or long only accounts, subject to incentive fees. Such portfolio managers may therefore be entitled to receive a portion of any incentive fees earned on such accounts. Currently, the portfolio managers of this Fund are not entitled to receive a portion of incentive fees of other accounts.

As a fiduciary, BlackRock owes a duty of loyalty to its clients and must treat each client fairly. When BlackRock purchases or sells securities for more than one account, the trades must be allocated in a manner consistent with its fiduciary duties. BlackRock attempts to allocate investments in a fair and equitable manner among client accounts, with no account receiving preferential treatment. To this end, BlackRock, Inc. has adopted policies that are intended to ensure reasonable efficiency in client transactions and provide BlackRock with sufficient flexibility to allocate investments in a manner that is consistent with the particular investment discipline and client base, as appropriate.

(a)(3) As of July 31, 2021:

Portfolio Manager Compensation Overview

The discussion below describes the portfolio managers compensation as of July 31, 2021.

BlackRocks financial arrangements with its portfolio managers, its competitive compensation and its career path emphasis at all levels reflect the value senior management places on key resources. Compensation may include a variety of components and may vary from year to year based on a number of factors. The principal components of compensation include a base salary, a performance-based discretionary bonus, participation in various benefits programs and one or more of the incentive compensation programs established by BlackRock.

Base Compensation. Generally, portfolio managers receive base compensation based on their position with the firm.

Discretionary Incentive Compensation. Discretionary incentive compensation is a function of several components: the performance of BlackRock, Inc., the performance of the portfolio managers group within BlackRock, the investment performance, including risk-adjusted returns, of

the firms assets under management or supervision by that portfolio manager relative to predetermined benchmarks, and the individuals performance and contribution to the overall performance of these portfolios and BlackRock. In most cases, these benchmarks are the same as the benchmark or benchmarks against which the performance of the Funds or other accounts managed by the portfolio managers are measured. Among other things, BlackRocks Chief Investment Officers make a subjective determination with respect to each portfolio managers compensation based on the performance of the Funds and other accounts managed by each portfolio manager relative to the various benchmarks. Performance of fixed income funds is measured on a pre-tax and/or after-tax basis over various time periods including 1-, 3- and 5- year periods, as applicable. With respect to these portfolio managers, such benchmarks for the Fund and other accounts are: a combination of market-based indices (e.g., Standard & Poors Municipal Bond Index), certain customized indices and certain fund industry peer groups.

Distribution of Discretionary Incentive Compensation. Discretionary incentive compensation is distributed to portfolio managers in a combination of cash, deferred BlackRock, Inc. stock awards, and/or deferred cash awards that notionally track the return of certain BlackRock investment products.

Portfolio managers receive their annual discretionary incentive compensation in the form of cash. Portfolio managers whose total compensation is above a specified threshold also receive deferred BlackRock, Inc. stock awards annually as part of their discretionary incentive compensation. Paying a portion of discretionary incentive compensation in the form of deferred BlackRock, Inc. stock puts compensation earned by a portfolio manager for a given year at risk based on BlackRocks ability to sustain and improve its performance over future periods. In some cases, additional deferred BlackRock, Inc. stock may be granted to certain key employees as part of a long-term incentive award to aid in retention, align interests with long-term shareholders and motivate performance. Deferred BlackRock, Inc. stock awards are generally granted in the form of BlackRock, Inc. restricted stock units that vest pursuant to the terms of the applicable plan and, once vested, settle in BlackRock, Inc. common stock. The portfolio managers of this Fund have deferred BlackRock, Inc. stock awards.

For certain portfolio managers, a portion of the discretionary incentive compensation is also distributed in the form of deferred cash awards that notionally track the returns of select BlackRock investment products they manage, which provides direct alignment of portfolio manager discretionary incentive compensation with investment product results. Deferred cash awards vest ratably over a number of years and, once vested, settle in the form of cash. Only portfolio managers who manage specified products and whose total compensation is above a specified threshold are eligible to participate in the deferred cash award program.

Other Compensation Benefits. In addition to base salary and discretionary incentive compensation, portfolio managers may be eligible to receive or participate in one or more of the following:

Incentive Savings Plans  BlackRock, Inc. has created a variety of incentive savings plans in which BlackRock, Inc. employees are eligible to participate, including a 401(k) plan, the BlackRock Retirement Savings Plan (RSP), and the BlackRock Employee Stock Purchase Plan (ESPP). The employer contribution components of the RSP include a company match equal to 50%

of the first 8% of eligible pay contributed to the plan capped at $5,000 per year, and a company retirement contribution equal to 3-5% of eligible compensation up to the Internal Revenue Service limit ($290,000 for 2021). The RSP offers a range of investment options, including registered investment companies and collective investment funds managed by the firm. BlackRock, Inc. contributions follow the investment direction set by participants for their own contributions or, absent participant investment direction, are invested into a target date fund that corresponds to, or is closest to, the year in which the participant attains age 65. The ESPP allows for investment in BlackRock, Inc. common stock at a 5% discount on the fair market value of the stock on the purchase date. Annual participation in the ESPP is limited to the purchase of 1,000 shares of common stock or a dollar value of $25,000 based on its fair market value on the purchase date. All of the eligible portfolio managers are eligible to participate in these plans.

(a)(4) Beneficial Ownership of Securities As of July 31, 2021.

Portfolio Manager	Dollar Range of Equity Securities of the Fund Beneficially Owned
Walter OConnor, CFA	None
Phillip Soccio	None
Michael Perilli	None
Kevin Maloney	None

(b) Not Applicable

Item 9 Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers Not Applicable due to no such purchases during the period covered by this report.

Item 10 Submission of Matters to a Vote of Security Holders There have been no material changes to these procedures.

Item 11 Controls and Procedures

(a) The registrants principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrants 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.

(b) There were no changes in the registrants internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrants internal control over financial reporting.

Item 12 Disclosure of Securities Lending Activities for Closed-End Management Investment Companies Not Applicable

Item 13 Exhibits attached hereto

(a)(1) Code of Ethics See Item 2

(a)(2) Section 302 Certifications are attached

(a)(3) Not Applicable

(a)(4) Not Applicable

(b) Section 906 Certifications are attached

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:
John M. Perlowski
Chief Executive Officer (principal executive officer) of
BlackRock MuniHoldings California Quality Fund, Inc.

Date: October 4, 2021

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:
John M. Perlowski
Chief Executive Officer (principal executive officer) of
BlackRock MuniHoldings California Quality Fund, Inc.

Date: October 4, 2021

By:
Trent Walker
Chief Financial Officer (principal financial officer) of
BlackRock MuniHoldings California Quality Fund, Inc.

Date: October 4, 2021

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