N-CSR 1 i00354_ncsr.htm

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 811-10337

Name of Fund: BlackRock New York Municipal Income Trust (BNY)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: Anne F. Ackerley, Chief Executive Officer, BlackRock New York Municipal Income Trust, 40 East 52 nd Street, New York, NY 10022.

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

Date of fiscal year end: 07/31/2009

Date of reporting period: 07/31/2009

Item 1 Report to Stockholders

insert report

EQUITIES FIXED INCOME REAL ESTATE LIQUIDITY ALTERNATIVES BLACKROCK SOLUTIONS

Annual Report
JULY 31,
2009
BlackRock California
Investment Quality Municipal Trust Inc. (RAA)
BlackRock California
Municipal Income Trust (BFZ)
BlackRock Florida
Municipal 2020 Term Trust (BFO)
BlackRock Investment
Quality Municipal Income Trust (RFA)
BlackRock Municipal Income
Investment Trust (BBF)
BlackRock New Jersey
Investment Quality Municipal Trust Inc. (RNJ)
BlackRock New Jersey
Municipal Income Trust (BNJ)
BlackRock New York
Investment Quality Municipal Trust Inc. (RNY)
BlackRock New York
Municipal Income Trust (BNY)

NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE

Table of Contents

	Page
Dear
Shareholder	3
Annual
Report:
Trust
Summaries	4
The
Benefits and Risks of Leveraging	13
Derivative
Financial Instruments	13
Financial Statements:
Schedules of Investments	14
Statements of Assets and Liabilities	38
Statements of Operations	40
Statements of Changes in Net Assets	42
Statement of Cash Flows	46
Financial
Highlights	47
Notes to
Financial Statements	56
Report of
Independent Registered Public Accounting Firm	65
Important
Tax Information (Unaudited)	65
Disclosure
of Investment Advisory Agreements and Sub-Advisory Agreements	66
Automatic
Dividend Reinvestment Plan	70
Officers
and Trustees	71
Additional
Information	74

2 ANNUAL REPORT JULY 31, 2009

D ear Shareholder

The past 12 months reveal two distinct market backdrops one of extreme investor pessimism and decided weakness, and another of cautious optimism and nascent signs of recovery. The first half of the period was characterized by the former, as the global financial crisis erupted into the worst recession in decades. Daily headlines recounted universal macroeconomic deterioration, financial sector casualties, volatile swings in global equity markets, and unprecedented government intervention that included widespread (and globally coordinated) monetary and quantitative easing by central banks and large-scale fiscal stimuli. Sentiment improved noticeably in March 2009, however, on the back of new program announcements by the US Treasury Department and Federal Reserve, as well as generally stronger-than-expected economic data in a few key areas, including retail sales, business and consumer confidence, manufacturing and housing.

In this environment, US equities contended with extraordinary volatility, posting steep declines through mid-March 2009 before going on a three-month rally that largely negated year-to-date losses. Late in the period, investor enthusiasm waned and a correction ensued for several weeks, mostly as a result of profit taking and portfolio rebalancing, as opposed to a change in the economic outlook. Equities rallied once again as the period drew to a close, resulting in positive year-to-date returns for all major indexes. The experience in international markets was similar to that in the United States, though performance was generally more extreme both on the decline and on the upturn. Notably, emerging markets, which lagged most developed regions through the downturn, reassumed leadership in 2009 as these areas of the globe have generally seen a stronger acceleration in economic recovery.

In fixed income markets, while the flight to quality remained a prevalent theme, relatively attractive yields and distressed valuations, alongside a more favorable macro environment, eventually captured investor attention, leading to a sharp recovery in non-Treasury assets. This has been particularly evident in the high yield sector, which has firmly outpaced all other taxable asset classes since the start of 2009. At the same time, the municipal bond market enjoyed a strong return after the exceptional market volatility of 2008, buoyed by a combination of attractive valuations, robust retail investor demand and a slowdown in forced selling. Direct aid to state and local governments via the American Recovery and Reinvestment Act of 2009 has also lent support to municipal bonds.

| Total Returns as of July 31, 2009 — US equities (S&P 500
Index) | 21.18 | % | (19.96 | )% |
| --- | --- | --- | --- | --- |
| Small cap US equities
(Russell 2000 Index) | 26.61 | | (20.72 | ) |
| International equities
(MSCI Europe, Australasia, Far East Index) | 30.63 | | (22.60 | ) |
| US Treasury securities
(Merrill Lynch 10-Year US Treasury Index) | (3.91 | ) | 7.58 | |
| Taxable fixed income
(Barclays Capital US Aggregate Bond Index) | 4.47 | | 7.85 | |
| Tax-exempt fixed income
(Barclays Capital Municipal Bond Index) | 4.38 | | 5.11 | |
| High yield bonds (Barclays
Capital US Corporate High Yield 2% Issuer Capped Index) | 30.11 | | 5.30 | |

Past performance is no guarantee of future results. Index performance shown for illustrative purposes only. You cannot invest directly in an index.

The market environment has clearly improved since the beginning of the year, but a great deal of uncertainty and risk remain. Through periods of market turbulence, as ever, BlackRocks full resources are dedicated to the management of our clients assets. For additional insight and timely food for thought, we invite you to visit our award-winning Shareholder ® magazine, now available exclusively online at www.blackrock.com/shareholdermagazine . We thank you for entrusting BlackRock with your investments, and we look forward to continuing to serve you in the months and years ahead.

Sincerely,

Rob Kapito President, BlackRock Advisors, LLC

Announcement to Shareholders

On June 16, 2009, BlackRock, Inc. announced that it received written notice from Barclays PLC (Barclays) in which Barclays Board of Directors had accepted BlackRocks offer to acquire Barclays Global Investors (BGI). At a special meeting held on August 6, 2009, BlackRocks proposed purchase of BGI was approved by an overwhelming majority of Barclays voting shareholders, an important step toward closing the transaction. The combination of BlackRock and BGI will bring together market leaders in active and index strategies to create the preeminent asset management firm. The transaction is scheduled to be completed in the fourth quarter of 2009, subject to important fund shareholder and regulatory approvals.

THIS PAGE NOT PART OF YOUR FUND REPORT 3

T rust Summary as of July 31, 2009 BlackRock California Investment Quality Municipal Trust Inc.

Investment Objective

BlackRock California Investment Quality Municipal Trust Inc. (RAA) (the Trust) seeks to provide high current income which, in the opinion of bond counsel to the issuer, is exempt from regular federal and California income tax consistent with preservation of capital. No assurance can be given that the Trusts investment objective will be achieved.

Performance

For the 12 months ended July 31, 2009, the Trust returned (0.93)% based on market price and 1.28% based on net asset value (NAV). For the same period, the closed-end Lipper California Municipal Debt Funds category posted an average return of (3.92)% based on market price and (5.13)% on a NAV basis. All returns reflect reinvestment of dividends. The Trusts discount to NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV. Duration positioning was neutral for most of the period. The majority of the Trusts outperformance was derived from a tightening in credit spreads. Cash and short-term investment reserves ranged from 1% to 13% of assets under management during the period. Overall, the cash position was beneficial to performance as it lowered portfolio duration and enhanced the Trusts yield as a portion of the cash reserves was invested in higher-yielding variable-rate demand notes. Along with attractive borrowing costs, the portfolios accrual permitted an increase in dividends in June. Our strategy is to pursue a balanced approach to returns, continue to bolster current yield and commit cash reserves when research uncovers appropriate opportunities. Credit fundamentals warrant monitoring in the current weak economic environment, especially in California, considering budgetary challenges. Management is alert to improve quality as opportunities arise.

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.

Trust Information

Symbol on NYSE Amex	RAA
Initial Offering Date	May
28, 1993
Yield on Closing Market
Price as of July 31, 2009 ($11.20) 1	5.52%
Tax Equivalent Yield 2	8.49%
Current Monthly
Distribution per Common Share 3	$0.0515
Current Annualized
Distribution per Common Share 3	$0.6180
Leverage as of July 31,
2009 4	37%

| 1 | Yield on closing market
price is calculated by dividing the current annualized distribution per share
by the closing market price. Past performance does not guarantee future
results. |
| --- | --- |
| 2 | Tax equivalent yield
assumes the maximum federal tax rate of 35%. |
| 3 | The distribution is not
constant and is subject to change. |
| 4 | Represents Auction Market
Preferred Shares (Preferred Shares) and tender option bond trusts (TOBs)
as a percentage of total managed assets, which is the total assets of the
Trust, including any assets attributable to Preferred Shares and TOBs, minus
the sum of accrued liabilities. For a discussion of leveraging techniques
utilized by the Trust, please see The Benefits and Risks of Leveraging on
page 13. |

The table below summarizes the changes in the Trusts market price and NAV per share:

	7/31/09	7/31/08	Change	High	Low
Market Price	$ 11.20	$ 11.96	(6.35)%	$ 12.52	$ 6.92
Net Asset Value	$ 12.35	$ 12.90	(4.26)%	$ 13.35	$ 9.88

The following unaudited charts show the sector and credit quality allocations of the Trusts long-term investments:

| Sector
Allocations | 7/31/09 | 7/31/08 |
| --- | --- | --- |
| County/City/Special
District/School District | 34 % | 22 % |
| Utilities | 19 | 14 |
| Education | 12 | 3 |
| Health | 10 | 11 |
| State | 10 | 19 |
| Transportation | 10 | 2 |
| Corporate | 5 | 9 |
| Housing | | 8 |
| Tobacco | | 12 |
| Credit
Quality Allocations 5 | | |
| | 7/31/09 | 7/31/08 |
| AAA/Aaa | 12 % | 39 % |
| AA/Aa | 47 | 24 |
| A/A | 33 | 17 |
| BBB/Baa | 6 | 11 |
| B | 2 | 4 |
| Not Rated | | 5 |

5 Using the higher of Standard & Poors (S&Ps) or Moodys Investors Service (Moodys) ratings.

4 ANNUAL REPORT JULY 31, 2009

Trust Summary as of July 31, 2009 BlackRock California Municipal Income Trust

Investment Objective

BlackRock California Municipal Income Trust (BFZ) (the Trust) seeks to provide high current income which, in the opinion of bond counsel to the issuer, is exempt from regular federal income tax and California income taxes. No assurance can be given that the Trusts investment objective will be achieved.

Performance

For the 12 months ended July 31, 2009, the Trust returned (4.81)% based on market price and (2.36)% based on NAV. For the same period, the closed-end Lipper California Municipal Debt Funds category posted an average return of (3.92)% based on market price and (5.13)% on a NAV basis. All returns reflect reinvestment of dividends. The Trust moved from a premium to NAV to a discount by period-end, which accounts for the difference between performance based on price and performance based on NAV. The Trusts duration positioning was slightly above neutral for most of the period. The Trusts outperformance based on NAV was derived from a tightening in credit spreads, although zero-coupon positions did contribute negatively as spreads for these structures widened. Along with attractive borrowing costs, the portfolio accrual permitted an increase in dividends in June. Our strategy is to pursue a balanced approach to returns, continue to bolster current yield and commit cash reserves when research uncovers appropriate opportunities. Credit fundamentals warrant monitoring in the current weak economic environment, especially in California, considering budgetary challenges. Management is alert to improve quality as opportunities arise.

Trust Information

| Symbol on
New York Stock Exchange (NYSE ) | BFZ |
| --- | --- |
| Initial
Offering Date | July 27, 2001 |
| Yield on
Closing Market Price as of July 31, 2009 ($12.40) 1 | 7.33% |
| Tax
Equivalent Yield 2 | 11.28% |
| Current
Monthly Distribution per Common Share 3 | $0.0757 |
| Current
Annualized Distribution per Common Share 3 | $0.9084 |
| Leverage as
of July 31, 2009 4 | 40% |

| 1 | Yield on closing market
price is calculated by dividing the current annualized distribution per share
by the closing market price. Past performance does not guarantee future
results. |
| --- | --- |
| 2 | Tax equivalent yield
assumes the maximum federal tax rate of 35%. |
| 3 | The distribution is not
constant and is subject to change. |
| 4 | Represents Preferred Shares
and TOBs as a percentage of total managed assets, which is the total assets
of the Trust, including any assets attributable to Preferred Shares and TOBs,
minus the sum of accrued liabilities. For a discussion of leveraging
techniques utilized by the Trust, please see The Benefits and Risks of
Leveraging on page 13. |

The table below summarizes the changes in the Trusts market price and NAV per share:

Market Price	7/31/09 — $ 12.40	7/31/08 — $ 13.99	(11.37	)%	High — $ 14.54	Low — $ 7.36
Net Asset Value	$ 12.71	$ 13.98	(9.08	)%	$ 14.30	$ 10.32

The following unaudited charts show the sector and credit quality allocations of the Trusts long-term investments:

Sector Allocations

| County/City/Special
District/School District | 37 % | 27 % |
| --- | --- | --- |
| Education | 18 | 10 |
| Health | 11 | 17 |
| Utilities | 10 | 4 |
| Transportation | 10 | 7 |
| State | 6 | 8 |
| Housing | 6 | 16 |
| Corporate | 2 | 4 |
| Tobacco | | 7 |

Credit Quality Allocations 5

AAA/Aaa	21 %	33 %
AA/Aa	28	22
A/A	40	24
BBB/Baa	8	11
B	1	1
Not Rated 6	2	9

| 5 | Using the higher of
S&Ps or Moodys ratings. |
| --- | --- |
| 6 | The investment advisor has
deemed certain of these non-rated securities to be of investment grade
quality. As of July 31, 2009 and 2008, the market value of these securities
was $1,974,163, representing 1% and $2,242,216, representing 1%,
respectively, of the Trusts long-term investments. |

ANNUAL REPORT JULY 31, 2009 5

Trust Summary as of July 31, 2009 BlackRock Florida Municipal 2020 Term Trust

Investment Objective

BlackRock Florida Municipal 2020 Term Trust (BFO) (the Trust) seeks to provide current income that is exempt from regular federal income tax and Florida intangible personal property taxes and to return $15.00 per share (the initial public offering price) on or about December 31, 2020. No assurance can be given that the Trusts investment objective will be achieved.

Performance

For the 12 months ended July 31, 2009, the Trust returned 3.95%, based on market price and (0.48)%, based on NAV. For the same period, the closed-end Lipper Florida Municipal Debt Funds category posted an average return of 7.14% based on market price and 1.51% on a NAV basis. All returns reflect reinvestment of dividends. The Trusts discount to NAV, which narrowed during the period, accounts for the difference between performance based on price and performance based on NAV. Although the Trust benefited from a declining interest rate environment during the period, Florida was a weak performer among the states, with only Michigan and Ohio posting lower returns, which hampered performance. Sector allocation was also an important component to performance. In particular, the Trusts exposure to high yield bonds and the health sector, which significantly underperformed, detracted from results. Low short-term rates, however, resulted in increased income to the Trust from leverage, which allowed for a dividend increase beginning with the July 1, 2009 distribution.

Trust Information

| Symbol on
NYSE | BFO |
| --- | --- |
| Initial
Offering Date | September 30, 2003 |
| Termination
Date (on or about) | December 31, 2020 |
| Yield on
Closing Market Price as of July 31, 2009 ($12.31) 1 | 5.46% |
| Tax
Equivalent Yield 2 | 8.40% |
| Current
Monthly Distribution per Common Share 3 | $0.056 |
| Current
Annualized Distribution per Common Share 3 | $0.672 |
| Leverage as
of July 31, 2009 4 | 39% |

| 1 | Yield on closing market
price is calculated by dividing the current annualized distribution per share
by the closing market price. Past performance does not guarantee future
results. |
| --- | --- |
| 2 | Tax equivalent yield
assumes the maximum federal tax rate of 35%. |
| 3 | The distribution is not
constant and is subject to change. |
| 4 | Represents Preferred Shares
and TOBs as a percentage of total managed assets, which is the total assets
of the Trust, including any assets attributable to Preferred Shares and TOBs,
minus the sum of accrued liabilities. For a discussion of leveraging
techniques utilized by the Trust, please see The Benefits and Risks of
Leveraging on page 13. |

The table below summarizes the changes in the Trusts market price and NAV per share:

Market Price	7/31/09 — $ 12.31	7/31/08 — $ 12.50	(1.52	)%	High — $ 12.97	Low — $ 8.15
Net Asset
Value	$ 13.35	$ 14.16	(5.72	)%	$ 14.45	$ 11.27

The following unaudited charts show the sector and credit quality allocations of the Trusts long-term investments:

Sector Allocations

| County/City/Special
District/School District | 48 % | 46 % |
| --- | --- | --- |
| Utilities | 18 | 20 |
| Health | 11 | 13 |
| State | 9 | 7 |
| Corporate | 6 | 6 |
| Housing | 5 | 5 |
| Transportation | 2 | 2 |
| Education | 1 | 1 |

Credit Quality Allocations 5

AAA/Aaa	31 %	29 %
AA/Aa	10	34
A/A	30	7
BBB/Baa	6	9
BB/Ba	2	2
Not Rated 6	21	19

| 5 | Using the higher of
S&Ps or Moodys ratings. |
| --- | --- |
| 6 | The investment advisor has
deemed certain of these non-rated securities to be of investment grade
quality. As of July 31, 2009 and 2008, the market value of these securities
was $13,543,166, representing 11% and $11,848,675, representing 9%,
respectively, of the Trusts long-term investments. |

6 ANNUAL REPORT JULY 31, 2009

Trust Summary as of July 31, 2009
Investment
Objective

BlackRock Investment Quality Municipal Income Trust (RFA) (the Trust) seeks to provide current income which, in the opinion of bond counsel to the issuer, is exempt from regular federal income tax and to provide an exemption from Florida intangible personal property taxes consistent with preservation of capital. Effective September 16, 2008, BlackRock Florida Investment Quality Municipal Trust was renamed BlackRock Investment Quality Municipal Income Trust. No assurance can be given that the Trusts investment objective will be achieved.

Performance

For the 12 months ended July 31, 2009, the Trust returned (1.93)% based on market price and (3.68)% based on NAV. For the same period, the closed-end Lipper General Municipal Debt Funds (Leveraged) category posted an average return of 2.20% based on market price and (2.40)% on a NAV basis. All returns reflect reinvestment of dividends. The Trusts discount to NAV, which narrowed during the period, accounts for the difference between performance based on price and performance based on NAV. Sector allocation played an important role in determining the Trusts performance during the period. Spread products, such as health care, tax increment and corporate-backed bonds, underperformed significantly, as the economic downturn continued to add more stress on the fundamental credit qualities of these sectors. The Trusts holdings in these segments, therefore, detracted from performance. Certain municipal bonds that are issued for a private purpose such as certain housing bonds may be subject to the alternative minimum tax (AMT). These bonds typically have higher yields than non-AMT bonds to compensate for the potential tax treatment of these issues. Exposure to AMT bonds also detracted from results, as these issues underperformed amid significant spread widening during the 12 months.

Trust Information
Symbol on
NYSE Amex	RFA
Initial
Offering Date	May 28, 1993
Yield on
Closing Market Price as of July 31, 2009 ($10.08) 1	6.79%
Tax
Equivalent Yield 2	10.45%
Current
Monthly Distribution per Common Share 3	$0.057
Current
Annualized Distribution per Common Share 3	$0.684
Leverage as
of July 31, 2009 4	39%

| 1 | Yield on closing market
price is calculated by dividing the current annualized distribution per share
by the closing market price. Past performance does not guarantee future
results. |
| --- | --- |
| 2 | Tax equivalent yield
assumes the maximum federal tax rate of 35%. |
| 3 | The distribution is not
constant and is subject to change. |
| 4 | Represents Preferred Shares
and TOBs as a percentage of total managed assets, which is the total assets
of the Trust, including any assets attributable to Preferred Shares and TOBs,
minus the sum of accrued liabilities. For a discussion of leveraging
techniques utilized by the Trust, please see The Benefits and Risks of
Leveraging on page 13. |

The table below summarizes the changes in the Trusts market price and NAV per share:

Market Price	7/31/09 — $ 10.08	7/31/08 — $ 10.93	(7.78	)%	High — $ 10.93	Low — $ 6.54
Net Asset
Value	$ 11.15	$ 12.31	(9.42	)%	$ 12.54	$ 8.98

The following unaudited charts show the sector and credit quality allocations of the Trusts long-term investments:

Sector Allocations — 7/31/09	7/31/08
County/City/Special
District/School District	27 %	37 %
Utilities	21	16
Transportation	13	9
Health	12	14
State	10	9
Education	9	3
Housing	8	8
Corporate		4

| Credit
Quality Allocations 5 — 7/31/09 | 7/31/08 | |
| --- | --- | --- |
| AAA/Aaa | 14 % | 40 % |
| AA/Aa | 44 | 29 |
| A/A | 32 | 4 |
| BBB/Baa | | 9 |
| BB/Ba | 1 | 2 |
| Not Rated 6 | 9 | 16 |

| 5 | Using the higher of
S&Ps or Moodys ratings. |
| --- | --- |
| 6 | The investment advisor has
deemed certain of these non-rated securities to be of investment grade
quality. As of July 31, 2009 and 2008, the market value of these securities
was $461,249, representing 2% and $722,157, representing 3%, respectively, of
the Trusts long-term investments. |

ANNUAL REPORT JULY 31, 2009 7

Trust Summary as of July 31, 2009
Investment
Objective

BlackRock Municipal Income Investment Trust (BBF) (the Trust) seeks to provide current income which, in the opinion of bond counsel to the issuer, is exempt from regular federal income tax and Florida intangible personal property tax. Effective September 18, 2008, BlackRock Florida Municipal Income Trust was renamed BlackRock Municipal Income Investment Trust. No assurance can be given that the Trusts investment objective will be achieved.

Performance

For the 12 months ended July 31, 2009, the Trust returned (1.46)% based on market price and (2.57)% based on NAV. For the same period, the closed-end Lipper General Municipal Debt Funds (Leveraged) category posted an average return of 2.20% based on market price and (2.40)% on a NAV basis. All returns reflect reinvestment of dividends. The Trusts discount to NAV, which narrowed during the period, accounts for the difference between performance based on price and performance based on NAV. Sector allocation played an important role in determining how the Trust performed during the reporting period. The Trust was significantly overweight in pre-refunded securities in the one- to five-year maturity range. This enhanced performance as the yield curve steepened. Conversely, spread products, such as health care, land increment and corporate-backed bonds, significantly underperformed, as the economic downturn continued to add more stress on the fundamental credit quality for these sectors. The Trusts holdings in these segments, therefore, detracted from performance.

| Trust
Information | |
| --- | --- |
| Symbol
on NYSE | BBF |
| Initial
Offering Date | July 27, 2001 |
| Yield on
Closing Market Price as of July 31, 2009 ($12.49) 1 | 7.24% |
| Tax
Equivalent Yield 2 | 11.14% |
| Current
Monthly Distribution per Common Share 3 | $0.075375 |
| Current
Annualized Distribution per Common Share 3 | $0.904500 |
| Leverage as
of July 31, 2009 4 | 40% |

| 1 | Yield on closing market
price is calculated by dividing the current annualized distribution per share
by the closing market price. Past performance does not guarantee future
results. |
| --- | --- |
| 2 | Tax equivalent yield
assumes the maximum federal tax rate of 35%. |
| 3 | The distribution is not
constant and is subject to change. |
| 4 | Represents Preferred Shares
and TOBs as a percentage of managed assets, which is the total assets of the
Trust, including any assets attributable to Preferred Shares and TOBs, minus
the sum of accrued liabilities. For a discussion of leveraging techniques
utilized by the Trust, please see The Benefits and Risks of Leveraging on
page 13. |

The table below summarizes the changes in the Trusts market price and NAV per share:

Market Price	7/31/09 — $ 12.49	7/31/08 — $ 13.68	(8.70	)%	High — $ 14.06	Low — $ 6.18
Net Asset
Value	$ 12.71	$ 14.08	(9.73	)%	$ 14.35	$ 10.65

The following unaudited charts show the sector and credit quality allocations of the Trusts long-term investments:

Sector Allocations — 7/31/09	7/31/08
County/City/Special
District/School District	27 %	39 %
Utilities	22	10
Health	21	30
Education	16	13
State	7	5
Transportation	6	1
Housing	1
Corporate		2

Credit Quality Allocations 5 — 7/31/09	7/31/08
AAA/Aaa	9 %	25 %
AA/Aa	47	30
A/A	28	11
BBB/Baa	5	9
BB/Ba	1	2
Not Rated 6	10	23

| 5 | Using the higher of
S&Ps or Moodys ratings. |
| --- | --- |
| 6 | The investment advisor has
deemed certain of these non-rated securities to be of investment grade
quality. As of July 31, 2009 and 2008, the market value of these securities
was $10,029,093, representing 7% and $13,484,932, representing 9%,
respectively, of the Trusts long-term investments. |

8 ANNUAL REPORT JULY 31, 2009

Trust Summary as of July 31, 2009 BlackRock New Jersey Investment Quality Municipal Trust Inc.

Investment Objective

BlackRock New Jersey Investment Quality Municipal Trust Inc. (RNJ) (the Trust) seeks to provide high current income which, in the opinion of bond counsel to the issuer, is exempt from regular federal income tax and New Jersey gross income tax consistent with preservation of capital. No assurance can be given that the Trusts investment objective will be achieved.

Performance

For the 12 months ended July 31, 2009, the Trust returned 4.01% based on market price and (1.09)% based on NAV. For the same period, the closed-end Lipper New Jersey Municipal Debt Funds category posted an average return of 4.58% based on market price and 1.31% on a NAV basis. All returns reflect reinvestment of dividends. The Trust moved from a discount to NAV to a premium by period-end, which accounts for the difference between performance based on price and performance based on NAV. Sector allocation played an important role in the Trusts performance during the period. Spread products, such as health care and corporate-backed bonds, underperformed significantly, as the economic downturn continued to add more stress on the fundamental credit qualities of these sectors. The Trusts holdings in these segments, therefore, detracted from performance. Certain municipal bonds that are issued for a private purpose such as certain housing bonds may be subject to the AMT. These bonds typically have higher yields than non-AMT bonds to compensate for the potential tax treatment of these issues. Exposure to AMT bonds also detracted from results, as spreads widened out significantly during the 12 months. During the 12 months, Trust management maintained high cash allocations in an effort to reduce volatility and ensure that ample cash was available to take advantage of potential opportunities in the new-issue market. The Trusts cash balance lowered portfolio duration, which was beneficial; however, it also held the yield down slightly as the money was invested in lower-yielding short-term investments, a negative factor.

Trust Information

| Symbol on
NYSE Amex | RNJ |
| --- | --- |
| Initial
Offering Date | May 28, 1993 |
| Yield on
Closing Market Price as of July 31, 2009 ($11.68) 1 | 6.31% |
| Tax
Equivalent Yield 2 | 9.71% |
| Current
Monthly Distribution per Common Share 3 | $0.0614 |
| Current
Annualized Distribution per Common Share 3 | $0.7368 |
| Leverage as
of July 31, 2009 4 | 38% |

| 1 | Yield on closing market
price is calculated by dividing the current annualized distribution per share
by the closing market price. Past performance does not guarantee future
results. |
| --- | --- |
| 2 | Tax equivalent yield
assumes the maximum federal tax rate of 35%. |
| 3 | The distribution is not
constant and is subject to change. |
| 4 | Represents Preferred Shares
and TOBs as a percentage of managed assets, which is the total assets of the
Trust, including any assets attributable to Preferred Shares and TOBs, minus
the sum of accrued liabilities. For a discussion of leveraging techniques
utilized by the Trust, please see The Benefits and Risks of Leveraging on
page 13. |

The table below summarizes the changes in the Trusts market price and NAV per share:

Market Price	7/31/09 — $ 11.68	7/31/08 — $ 11.96	(2.34	)%	High — $ 12.56	Low — $ 6.95
Net Asset
Value	$ 11.33	$ 12.20	(7.13	)%	$ 12.47	$ 9.13

The following unaudited charts show the sector and credit quality allocations of the Trusts long-term investments:

Sector Allocations

State	22 %	15 %
Transportation	20	16
Health	18	22
Education	10	15
Housing	9	8
Utilities	7	10
Corporate	7	6
County/City/Special
District/School District	6	4
Tobacco	1	4

Credit Quality Allocations 5

AAA/Aaa	24 %	24 %
AA/Aa	17	29
A/A	20	16
BBB/Baa	27	14
B/B	4	4
Not Rated	8	13

5 Using the higher of S&Ps or Moodys ratings.

ANNUAL REPORT JULY 31, 2009 9

Trust Summary as of July 31, 2009 BlackRock New Jersey Municipal Income Trust

Investment Objective

BlackRock New Jersey Municipal Income Trust (BNJ) (the Trust) seeks to provide high current income which, in the opinion of bond counsel to the issuer, is exempt from regular federal income tax and New Jersey gross income tax. No assurance can be given that the Trusts investment objective will be achieved.

Performance

For the 12 months ended July 31, 2009, the Trust returned 0.04% based on market price and (2.62)% based on NAV. For the same period, the closed-end Lipper New Jersey Municipal Debt Funds category posted an average return of 4.58% based on market price and 1.31% on a NAV basis. All returns reflect reinvestment of dividends. The Trusts premium to NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV. Sector allocation played an important role in the Trusts performance during the period. Spread products, such as health care and corporate-backed bonds, underperformed significantly, as the economic downturn continued to add more stress on the fundamental credit qualities of these sectors. The Trusts holdings in these segments, therefore, detracted from performance. Certain municipal bonds that are issued for a private purpose such as certain housing bonds may be subject to the AMT. These bonds typically have higher yields than non-AMT bonds to compensate for the potential tax treatment of these issues. Exposure to AMT bonds also detracted from results, as spreads widened out significantly during the 12 months. During the 12 months, Trust management maintained high cash allocations in an effort to reduce volatility and ensure that ample cash was available to take advantage of potential opportunities in the new-issue market. The Trusts cash balance lowered portfolio duration, which was beneficial; however, it also held the yield down slightly as the money was invested in lower-yielding short-term investments, a negative factor.

Trust Information

| Symbol on
NYSE | BNJ |
| --- | --- |
| Initial
Offering Date | July 27, 2001 |
| Yield on
Closing Market Price as of July 31, 2009 ($14.00) 1 | 6.65% |
| Tax
Equivalent Yield 2 | 10.23% |
| Current
Monthly Distribution per Common Share 3 | $0.0776 |
| Current
Annualized Distribution per Common Share 3 | $0.9312 |
| Leverage as
of July 31, 2009 4 | 38% |

| 1 | Yield on closing market
price is calculated by dividing the current annualized distribution per share
by the closing market price. Past performance does not guarantee future
results. |
| --- | --- |
| 2 | Tax equivalent yield
assumes the maximum federal tax rate of 35%. |
| 3 | The distribution is not
constant and is subject to change. |
| 4 | Represents Preferred Shares
and TOBs as a percentage of total managed assets, which is the total assets
of the Trust, including any assets attributable to Preferred Shares and TOBs,
minus the sum of accrued liabilities. For a discussion of leveraging
techniques utilized by the Trust, please see The Benefits and Risks of
Leveraging on page 13. |

The table below summarizes the changes in the Trusts market price and NAV per share:

Market Price	7/31/09 — $ 14.00	7/31/08 — $ 15.09	(7.22	)%	High — $ 15.18	Low — $ 9.71
Net Asset
Value	$ 12.78	$ 14.15	(9.68	)%	$ 14.51	$ 10.41

The following unaudited charts show the sector and credit quality allocations of the Trusts long-term investments:

Sector Allocations

Health	23 %	29 %
State	22	18
Housing	20	17
Transportation	12	8
County/City/Special
District/School District	9	9
Education	9	8
Corporate	4	5
Tobacco	1	6

Credit Quality Allocations 5

AAA/Aaa	26 %	32 %
AA/Aa	20	12
A/A	27	26
BBB/Baa	17	18
B/B	3	3
Not Rated	7	9

5 Using the higher of S&Ps or Moodys ratings.

10 ANNUAL REPORT JULY 31, 2009

Trust Summary as of July 31, 2009 BlackRock New York Investment Quality Municipal Trust Inc.

Investment Objective

BlackRock New York Investment Quality Municipal Trust Inc. (RNY) (the Trust) seeks to provide high current income which, in the opinion of bond counsel to the issuer, is exempt from regular federal income taxes and New York State and New York City income tax consistent with preservation of capital. No assurance can be given that the Trusts investment objective will be achieved.

Performance

For the 12 months ended July 31, 2009, the Trust returned 4.81% based on market price and 2.71% based on NAV. For the same period, the closed-end Lipper New York Municipal Debt Funds category posted an average return of 1.84% based on market price and (2.86)% on a NAV basis. All returns reflect reinvestment of dividends. The Trusts discount to NAV, which narrowed during the period, accounts for the difference between performance based on price and performance based on NAV. Performance was positively affected by a slightly-above-average distribution rate, as well as the Trusts positioning in longer-dated maturities. The one-year period comprised two separate and major fixed income market moves. The end of 2008 witnessed severe dislocations whereby, as a result of illiquidity and credit concerns, municipal bonds were treated as risk assets and traded at historically-wide spreads versus Treasuries. The second half of the period saw a return of liquidity and more normal demand metrics, accompanied by significant spread compression and yield curve flattening. The Trust outperformed during the latter time due to its overweight in longer-dated bonds, its barbell credit structure, its slightly longer duration and its participation in new-issue deals, which were coming at significant discounts to secondary market levels. We also used the new-issue market to increase the Trusts exposure to bonds that have retail appeal, as these bonds should benefit from an environment with favorable municipal supply and demand factors.

Trust Information

| Symbol on
NYSE Amex | RNY |
| --- | --- |
| Initial
Offering Date | May 28, 1993 |
| Yield on
Closing Market Price as of July 31, 2009 ($12.61) 1 | 6.49% |
| Tax
Equivalent Yield 2 | 9.98% |
| Current
Monthly Distribution per Common Share 3 | $0.0682 |
| Current
Annualized Distribution per Common Share 3 | $0.8184 |
| Leverage as
of July 31, 2009 4 | 37% |

| 1 | Yield on closing market
price is calculated by dividing the current annualized distribution per share
by the closing market price. Past performance does not guarantee future
results. |
| --- | --- |
| 2 | Tax equivalent yield
assumes the maximum federal tax rate of 35%. |
| 3 | The distribution is not
constant and is subject to change. |
| 4 | Represents Preferred Shares
and TOBs as a percentage of total managed assets, which is the total assets
of the Trust, including any assets attributable to Preferred Shares and TOBs,
minus the sum of accrued liabilities. For a discussion of leveraging
techniques utilized by the Trust, please see The Benefits and Risks of Leveraging
on page 13. |

The table below summarizes the changes in the Trusts market price and NAV per share:

Market Price	7/31/09 — $ 12.61	7/31/08 — $ 12.83	(1.71	)%	High — $ 13.09	Low — $ 7.48
Net Asset
Value	$ 12.81	$ 13.30	(3.68	)%	$ 13.64	$ 10.21

The following unaudited charts show the sector and credit quality allocations of the Trusts long-term investments:

Sector Allocations

| County/City/Special
District/School District | 26 % | 26 % |
| --- | --- | --- |
| Education | 19 | 16 |
| Utilities | 13 | 12 |
| Health | 11 | 12 |
| State | 10 | 10 |
| Corporate | 9 | 9 |
| Housing | 7 | 8 |
| Transportation | 3 | 5 |
| Tobacco | 2 | 2 |

Credit Quality Allocations 5

AAA/Aaa	29 %	36 %
AA/Aa	24	37
A/A	28	9
BBB/Baa	9	8
BB/Ba	2	1
B/B	7	7
Not Rated	1	2

5 Using the higher of S&Ps or Moodys ratings

ANNUAL REPORT JULY 31, 2009 11

Trust Summary as of July 31, 2009 BlackRock New York Municipal Income Trust

Investment Objective

BlackRock New York Municipal Income Trust (BNY) (the Trust) seeks to provide high current income which, in the opinion of bond counsel to the issuer, is exempt from regular federal income tax and New York State and New York City personal income taxes. No assurance can be given that the Trusts investment objective will be achieved.

Performance

For the 12 months ended July 31, 2009, the Trust returned (1.44)% based on market price and (1.28)% based on NAV. For the same period, the closed-end Lipper New York Municipal Debt Funds category posted an average return of 1.84% based on market price and (2.86)% on a NAV basis. All returns reflect reinvestment of dividends. The Trusts premium to NAV, which narrowed during the period, accounts for the difference between performance based on price and performance based on NAV. Performance was positively affected by a slightly-above-average distribution rate, as well as the Trusts positioning in longer-dated maturities. The one-year period comprised two separate and major fixed income market moves. The end of 2008 witnessed severe dislocations whereby, as a result of illiquidity and credit concerns, municipal bonds were treated as risk assets and traded at historically-wide spreads versus Treasuries. The second half of the period saw a return of liquidity and more normal demand metrics, accompanied by significant spread compression and yield curve flattening. The Trust outperformed during the latter time due to its overweight in longer-dated bonds, its barbell credit structure, its slightly longer duration and its participation in new-issue deals, which were coming at significant discounts to secondary market levels. We also used the new-issue market to increase the Trusts exposure to bonds that have retail appeal, as these bonds should benefit from an environment with favorable municipal supply and demand factors.

Trust Information

| Symbol on
NYSE | BNY |
| --- | --- |
| Initial
Offering Date | July 27, 2001 |
| Yield on
Closing Market Price as of July 31, 2009 ($13.95) 1 | 6.88% |
| Tax
Equivalent Yield 2 | 10.58% |
| Current
Monthly Distribution per Common Share 3 | $0.08 |
| Current
Annualized Distribution per Common Share 3 | $0.96 |
| Leverage as
of July 31, 2009 4 | 40% |

| 1 | Yield on closing market
price is calculated by dividing the current annualized distribution per share
by the closing market price. Past performance does not guarantee future
results. |
| --- | --- |
| 2 | Tax equivalent yield
assumes the maximum federal tax rate of 35%. |
| 3 | The distribution is not
constant and is subject to change. |
| 4 | Represents Preferred Shares
and TOBs as a percentage of total managed assets, which is the total assets
of the Trust, including any assets attributable to Preferred Shares and TOBs,
minus the sum of accrued liabilities. For a discussion of leveraging
techniques utilized by the Trust, please see The Benefits and Risks of
Leveraging on page 13. |

The table below summarizes the changes in the Trusts market price and NAV per share:

Market Price	7/31/09 — $ 13.95	7/31/08 — $ 15.26	(8.58	)%	High — $ 15.41	Low — $ 7.75
Net Asset
Value	$ 12.71	$ 13.88	(8.43	)%	$ 14.21	$ 9.95

The following unaudited charts show the sector and credit quality allocations of the Trusts long-term investments:

Sector Allocations

| County/City/Special
District/School District | 15 % | 14 % |
| --- | --- | --- |
| Housing | 14 | 15 |
| Transportation | 14 | 16 |
| Education | 13 | 11 |
| State | 12 | 11 |
| Utilities | 11 | 11 |
| Corporate | 11 | 11 |
| Tobacco | 6 | 8 |
| Health | 4 | 3 |

Credit Quality Allocations 5

AAA/Aaa	27 %	30 %
AA/Aa	22	31
A/A	27	17
BBB/Baa	17	15
BB/Ba	1	1
B/B	5	5
Not Rated	1	1

5 Using the higher of S&Ps or Moodys ratings.

12 ANNUAL REPORT JULY 31, 2009

T he Benefits and Risks of Leveraging

The Trusts may utilize leverage to seek to enhance the yield and NAV of their Common Shares. However, these objectives cannot be achieved in all interest rate environments.

To leverage, the Trusts issue Preferred Shares, which pay dividends at prevailing short-term interest rates, and invest the proceeds in long-term municipal bonds. In general, the concept of leveraging is based on the premise that the cost of assets to be obtained from leverage will be based on short-term interest rates, which normally will be lower than the income earned by each Trust on its longer-term portfolio investments. To the extent that the total assets of the Trust (including the assets obtained from leverage) are invested in higher-yielding portfolio investments, the Trusts Common Shareholders will benefit from the incremental yield.

To illustrate these concepts, assume a Trusts Common Shares capitalization is $100 million and it issues Preferred Shares for an additional $50 million, creating a total value of $150 million available for investment in long-term municipal bonds. If prevailing short-term interest rates are 3% and long-term interest rates are 6%, the yield curve has a strongly positive slope. In this case, the Trust pays dividends on the $50 million of Preferred Shares based on the lower short-term interest rates. At the same time, the securities purchased by the Trust with assets received from the Preferred Shares issuance earn the income based on long-term interest rates. In this case, the dividends paid to Preferred Shareholders are significantly lower than the income earned on the Trusts long-term investments, and therefore the Common Shareholders are the beneficiaries of the incremental net income.

Conversely, if prevailing short-term interest rates rise above long-term interest rates of 6%, the yield curve has a negative slope. In this case, the Trust pays dividends on the higher short-term interest rates whereas the Trusts total portfolio earns income based on lower long-term interest rates. If short-term interest rates rise, narrowing the differential between short-term and long-term interest rates, the incremental net income pickup on the Common Shares will be reduced or eliminated completely.

Furthermore, the value of the Trusts 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 redemption value of the Trusts Preferred Shares does not fluctuate in relation to interest rates. As a result, changes in interest rates can influence the Trusts NAV positively or negatively in addition to the impact on Trust performance from leverage from Preferred Shares discussed above.

The Trusts may also, from time to time, leverage their assets through the use of tender option bond (TOB) programs, as described in Note 1 of the Notes to Financial Statements. TOB investments generally will provide the Trusts with economic benefits in periods of declining short-term interest rates, but expose the Trusts to risks during periods of rising short-term interest rates similar to those associated with Preferred Shares issued by the Trusts, as described above. Additionally, fluctuations in the market value of municipal bonds deposited into the TOB trust may adversely affect the Trusts NAV per share.

The use of leverage may enhance opportunities for increased returns to the Trusts and Common Shareholders, but as described above, it also creates risks as short- or long-term interest rates fluctuate. Leverage also will generally cause greater changes in the Trusts NAV, market price and dividend rate than a comparable portfolio without leverage. If the income derived from securities purchased with assets received from leverage exceeds the cost of leverage, the Trusts net income will be greater than if leverage had not been used. Conversely, if the income from the securities purchased is not sufficient to cover the cost of leverage, the Trusts net income will be less than if leverage had not been used, and therefore the amount available for distribution to Common Shareholders will be reduced. The Trusts 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 Trusts to incur losses. The use of leverage may limit the Trusts ability to invest in certain types of securities or use certain types of hedging strategies, such as in the case of certain restrictions imposed by ratings agencies that rate preferred shares issued by a Trust. The Trusts will incur expenses in connection with the use of leverage, all of which are borne by the holders of the Common Shares and may reduce returns on the Common Shares.

Under the Investment Company Act of 1940, each Trust is permitted to issue Preferred Shares in an amount of up to 50% of its total managed assets at the time of issuance. Under normal circumstances, each Trust anticipates that the total economic leverage from Preferred Shares and TOBs will not exceed 50% of its total managed assets at the time such leverage is incurred. As of July 31, 2009, the Trusts had economic leverage from Preferred Shares and/or TOBs as a percentage of their total managed assets as follows:

| BlackRock California
Investment Quality Municipal Trust Inc. | 37 % |
| --- | --- |
| BlackRock California
Municipal Income Trust | 40 % |
| BlackRock Florida Municipal
2020 Term Trust | 39 % |
| BlackRock Investment
Quality Municipal Income Trust | 39 % |
| BlackRock Municipal Income
Investment Trust | 40 % |
| BlackRock New Jersey
Investment Quality Municipal Trust Inc. | 38 % |
| BlackRock New Jersey
Municipal Income Trust | 38 % |
| BlackRock New York
Investment Quality Municipal Trust Inc. | 37 % |
| BlackRock New York
Municipal Income Trust | 40 % |

D erivative Financial Instruments

The Trusts may invest in various derivative instruments, including financial futures contracts and swaps, as specified in Note 2 of the Notes to Financial Statements, which constitute forms of economic leverage. Such instruments are used to obtain exposure to a market without owning or taking physical custody of securities or to hedge market and/or interest rate risks. Such derivative instruments involve risks, including the imperfect correlation between the value of a derivative instrument and the underlying asset, possible default of the counterparty to the transaction and illiquidity of the derivative instrument. The Trusts ability to successfully use a derivative instrument depends on the investment advisors ability to accurately predict pertinent market movements, which cannot be assured. The use of derivative instruments may result in losses greater than if they had not been used, may require a Trust to sell or purchase portfolio securities at inopportune times or for distressed values, may limit the amount of appreciation a Trust can realize on an investment or may cause a Trust to hold a security that it might otherwise sell. The Trusts investments in these instruments are discussed in detail in the Notes to Financial Statements.

ANNUAL REPORT JULY 31, 2009 13

S chedule of Investments July 31, 2009
(Percentages
shown are based on Net Assets)

Municipal Bonds	Par (000)	Value
California 126.8%
Corporate 6.8%
California Pollution Control Financing Authority, RB, Waste Management
Inc. Project, Series A-2, AMT, 5.40%, 4/01/25	$ 500	$ 458,815
Los Angeles Regional Airports Improvement Corp., California, Refunding
RB, Facilities Sublease, Los Angeles International Airport, Series B, AMT,
7.50%, 12/01/24	500	387,095
		845,910
County/City/Special District/School District 37.9%
Butte-Glenn Community College District, GO, Election of 2002, Series
C, 5.50%, 8/01/30	500	514,725
County of Kern California, COP, Capital Improvement Projects, Series A
(AGC), 6.00%, 8/01/35	500	519,430
Los Alamitos Unified School District, California, GO, School
Facilities Improvement District No. 1, 5.50%, 8/01/33	500	507,015
Los Angeles Community College District, California, GO, 2003 Election,
Series F-1, 5.00%, 8/01/33	335	318,823
Los Angeles Unified School District, California, GO, Series D, 5.30%,
1/01/34	500	497,940
San Diego Regional Building Authority, California, RB, County
Operations Center & Annex, Series A, 5.38%, 2/01/36	500	500,185
San Jose Unified School District, Santa Clara County California, GO,
Election of 2002, Series D, 5.00%, 8/01/32	250	243,010
Santa Ana Unified School District, GO (MBIA), 5.38%, 8/01/27	500	502,540
Santa Cruz County Redevelopment Agency, California, TAN, Live Oak,
Soquel Community Improvement, Series A, 7.00%, 9/01/36	100	101,726
Vacaville Unified School District, California, GO, Election of 2001
(MBIA), 5.00%, 8/01/30	500	486,690
Westminster Redevelopment Agency, California, TAN, Subordinate,
Commercial Redevelopment Project No. 1 (AGC), 6.25%, 11/01/39	500	519,300
		4,711,384
Education 10.2%
California Educational Facilities Authority, RB, Stanford University,
Series Q, 5.25%, 12/01/32	500	511,440
California Infrastructure & Economic Development Bank, Refunding
RB, Salvation Army Western (AMBAC), 5.00%, 9/01/27	500	505,025
Snowline Joint Unified School District, COP, Refinancing Program
(AGC), 5.75%, 9/01/38	250	254,195
		1,270,660

| Municipal
Bonds | Par (000) | Value |
| --- | --- | --- |
| California (continued) | | |
| Health 15.3% | | |
| ABAG Finance Authority for Nonprofit Corps, RB, Sharp Healthcare,
6.25%, 8/01/39 | $ 250 | $ 249,327 |
| California Health Facilities Financing Authority, California, RB: | | |
| Catholic Healthcare West, Series A, 6.00%, 7/01/39 | 250 | 241,898 |
| Providence Health & Services, Series C, 6.50%, 10/01/38 | 250 | 268,720 |
| California Statewide Communities Development Authority, RB: | | |
| Catholic Healthcare West, Series E, 5.50%, 7/01/31 | 250 | 228,605 |
| Kaiser Permanente, Series A, 5.00%, 4/01/31 | 500 | 452,120 |
| Kaiser, Series C, Remarketed, 5.25%, 8/01/31 | 500 | 467,240 |
| | | 1,907,910 |
| State 15.2% | | |
| California State Public Works Board, RB, Department Corrections &
Rehabilitation, Series H, 5.00%, 11/01/31 | 500 | 435,665 |
| California State Public Works Board, RB, Department Education,
Riverside Campus Project, Series B, 6.50%, 4/01/34 | 340 | 359,193 |
| California State University, RB, Systemwide, Series C (MBIA), 5.00%,
11/01/38 | 625 | 565,481 |
| State of California, GO, Various Purpose, 6.50%, 4/01/33 | 490 | 529,749 |
| | | 1,890,088 |
| Transportation 15.0% | | |
| County of Orange California, RB, Series B, 5.75%, 7/01/34 | 500 | 508,135 |
| County of Sacramento California, RB, Senior, Series B, 5.75%, 7/01/39 | 250 | 242,528 |
| Los Angeles Department of Airports, Refunding RB, Ontario
International Airport, Series A (MBIA), AMT, 5.00%, 5/15/26 | 510 | 474,830 |
| Port of Oakland, RB, Series K (MBIA), AMT, 5.75%, 11/01/29 | 495 | 462,429 |
| San Francisco City & County Airports Commission, Refunding RB, 2nd
Series A-3, AMT, 6.75%, 5/01/19 | 175 | 183,418 |
| | | 1,871,340 |
| Utilities 26.4% | | |
| California Infrastructure & Economic Development Bank, RB,
California Independent System Operator, Series A, 6.25%, 2/01/39 | 400 | 407,000 |
| Chino Basin Regional Financing Authority, California, RB, Inland
Empire Utility Agency, Series A (AMBAC), 5.00%, 11/01/33 | 500 | 482,260 |

Portfolio Abbreviations

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

| ACA | American Capital Access
Corp. |
| --- | --- |
| AGC | Assured Guaranty Corp. |
| AMBAC | American Municipal Bond
Assurance Corp. |
| AMT | Alternative Minimum Tax
(subject to) |
| ARB | Airport Revenue Bond |
| BAN | Bond Anticipation Note |
| CAB | Capital Appreciation Bonds |
| CIFG | CDC IXIS Financial Guaranty |
| COP | Certificates of
Participation |
| EDA | Economic Development
Authority |
| FGIC | Financial Guaranty
Insurance Co. |
| FHA | Federal Housing
Administration |
| FNMA | Federal National Mortgage
Association |
| FSA | Financial Security
Assurance Inc. |
| GNMA | Government National
Mortgage Association |
| GO | General Obligation Bonds |
| HFA | Housing Finance Agency |
| IDA | Industrial Development
Authority |
| ISD | Independent School District |
| MBIA | Municipal Bond Investors
Assurance |
| | (National Public Finance
Guaranty Corp.) |
| PILOT | Payment in Lieu of Taxes |
| RB | Revenue Bonds |
| S/F | Single-Family |
| TAN | Tax Anticipation Notes |
| VHA | Veterans Hospital
Administration |
| XLCA | XL Capital Assured |

| See Notes to Financial
Statements. — 14 | ANNUAL REPORT | JULY 31, 2009 |
| --- | --- | --- |

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

Municipal Bonds	Par (000)	Value
California (concluded)
Utilities (concluded)
Contra Costa Water District, Refunding RB, Series O (AMBAC), 5.00%,
10/01/24	$ 600	$ 620,898
Eastern Municipal Water District, California, COP, Series H, 5.00%,
7/01/35	285	271,089
Los Angeles Department of Water & Power, RB, Power System, Sub-Series
A-1 (FSA), 5.00%, 7/01/35	500	487,915
San Diego Public Facilities Financing Authority, RB, Senior, Series A,
5.25%, 5/15/39	250	243,695
San Diego Public Facilities Financing Authority, Refunding RB, Series
A, 5.25%, 8/01/38	500	486,930
Southern California Public Power Authority, RB, Transmission (MBIA),
5.50%, 7/01/20	40	40,119
Western Municipal Water District Facilities Authority, RB, Series B,
5.00%, 10/01/39	250	238,390
		3,278,296
Total Municipal Bonds in California		15,775,588
Puerto Rico 4.4%
Education 4.4%
Puerto Rico Industrial Tourist Educational Medical & Environmental
Control Facilities Financing Authority, RB, Ana G. Mendez University System
Project, 5.00%, 3/01/26	700	544,880
Total Municipal Bonds in Puerto Rico		544,880
Total Municipal Bonds 131.2%		16,320,468

Municipal Bonds Transferred to Tender Option Bond Trusts (a)
California 16.8%
County/City/Special District/School District 12.3%
Los Angeles Community College District, California, GO, 2008 Election,
Series A, 6.00%, 8/01/33	480	516,296
San Diego Community College District, California, GO, Election of
2002, 5.25%, 8/01/33	509	516,834
Santa Clara County Financing Authority, Refunding RB, Lease Series L,
5.25%, 5/15/36	495	491,848
		1,524,978
Education 2.6%
University of California, RB, Series O, 5.75%, 5/15/34	300	322,272
Utilities 1.9%
Eastern Municipal Water District, California, COP, Series H, 5.00%,
7/01/33	250	239,778
Total
Municipal Bonds Transferred to
Tender Option Bond Trusts 16.8%		2,087,028
Total
Long-Term Investments (Cost $18,953,553) 148.0%		18,407,496

| Short-Term Securities — CMA California Municipal
Money Fund, 0.04% (b)(c) | Value — $ 1,637,526 | |
| --- | --- | --- |
| Total
Short-Term Securities (Cost $1,637,526) 13.1% | 1,637,526 | |
| Total
Investments (Cost $20,591,079*) 161.1% | 20,045,022 | |
| Liabilities
in Excess of Other Assets (3.6)% | (445,496 | ) |
| Liability for Trust Certificates, Including Interest
Expense and Fees Payable (9.9)% | (1,233,307 | ) |
| Preferred
Shares, at Redemption Value (47.6)% | (5,925,376 | ) |
| Net Assets
Applicable to Common Shares 100.0% | $ 12,440,843 | |

The cost and unrealized appreciation (depreciation) of investments as of July 31, 2009, as computed for federal income tax purposes, were as follows:

Aggregate cost	$
Gross unrealized
appreciation	$ 230,421
Gross unrealized
depreciation	(799,365	)
Net unrealized depreciation	$ (568,944	)

| (a) | Securities represent bonds
transferred to a tender option bond trust in exchange for which the Trust
acquired the residual interest certificates. These securities serve as
collateral in a financing transaction. See Note 1 of the Notes to Financial
Statements for details of municipal bonds transferred to tender option bond
trusts. |
| --- | --- |
| (b) | Investments in companies
considered to be an affiliate of the Trust, for purposes of Section 2(a)(3)
of the Investment Company Act of 1940, were as follows: |

Affiliate		Income
CMA California Municipal
Money Fund	1,105,390	$ 6,325

| (c) | Represents the current
yield as of report date. | |
| --- | --- | --- |
| | Effective August
1, 2008, the Trust adopted Financial Accounting Standards Board Statement of Financial Accounting Standards
No. 157, Fair Value Measurements (FAS 157). FAS 157 clarifies the
definition of fair value, establishes a framework for measuring fair values
and requires additional disclosures about the use of fair value measurements.
Various inputs are used in determining the fair value of investments, which
are as follows: | |
| | | Level 1 price quotations
in active markets/exchanges for identical securities |
| | | Level 2 other observable
inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are
active, quoted prices for identical or similar assets or liabilities in
markets that are not active, inputs other than quoted prices that are
observable for the assets or liabilities (such as interest rates, yield
curves, volatilities, prepayment speeds, loss severities, credit risks and
default rates) or other market-corroborated inputs) |
| | | Level 3 unobservable
inputs based on the best information available in the circumstances, to the extent observable
inputs are not available (including the Trusts own assumptions used in
determining the fair value of investments) |
| | The inputs or methodology
used for valuing securities are not necessarily an indication of the risk
associated with investing in those securities. For information about the
Trusts policy regarding valuation of investments and other significant
accounting policies, please refer to Note 1 of the Notes to Financial
Statements. | |
| | The following table
summarizes the inputs used as of July 31, 2009 in determining the fair
valuation of the Trusts investments: | |

| Valuation Inputs | Investments
in Securities |
| --- | --- |
| | Assets |
| Level 1 Short-Term
Securities | $ 1,637,526 |
| Level 2 Long-Term
Investments 1 | 18,407,496 |
| Level 3 | |
| Total | $ 20,045,022 |

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

| See Notes to Financial
Statements. — ANNUAL
REPORT | JULY 31, 2009 | 15 |
| --- | --- | --- |

Schedule of Investments July 31, 2009
(Percentages
shown are based on Net Assets)

Municipal Bonds	Par (000)	Value
California 109.5%
Corporate 3.3%
California Pollution Control Financing Authority, RB, Waste Management
Inc. Project, Series C, AMT, 6.75%, 12/01/27	$ 2,475	$ 2,546,725
City of Chula Vista California, RB, San Diego Gas, Series A,
Remarketed, 5.88%, 2/15/34	680	689,316
Los Angeles Regional Airports Improvement Corp., California, RB,
Series C, AMT, 7.50%, 12/01/24	4,110	3,181,921
		6,417,962
County/City/Special District/School District 36.8%
Butte-Glenn Community College District, GO, Election of 2002, Series C,
5.50%, 8/01/30	4,425	4,555,316
Chino Basin Desalter Authority, Refunding RB, Series A (AGC), 5.00%,
6/01/35	5,275	5,010,670
Elk Grove Unified School District, California, Special Tax, CAB,
Community Facilities No. 1 (AMBAC) (a):
5.60%, 12/01/29	7,485	2,001,190
5.60%, 12/01/30	7,485	1,855,457
5.60%, 12/01/31	7,485	1,708,975
Huntington Beach Union High School District, California, GO, CAB,
Election of 2004 (FGIC), 5.02%, 8/01/33 (a)	5,000	969,750
Lathrop Financing Authority, RB, Water Supply Project:
5.90%, 6/01/27	2,855	2,290,224
6.00%, 6/01/35	5,140	3,871,859
Live Oak Unified School District, GO, CAB, Election of 2004, Series B,
(Syncora) (a)(b):
5.59%, 8/01/18	985	294,377
5.60%, 8/01/18	1,030	290,800
5.61%, 8/01/18	1,080	287,993
5.62%, 8/01/18	1,125	283,297
5.63%, 8/01/18	1,175	279,368
5.64%, 8/01/18	1,230	276,061
5.65%, 8/01/18	1,285	272,189
5.66%, 8/01/18	1,340	267,826
5.67%, 8/01/18	1,400	263,984
5.68%, 8/01/18	1,465	260,565
Long Beach Unified School District, California, GO, Election of 2008,
Series A, 5.75%, 8/01/33	2,135	2,237,032
Los Angeles Municipal Improvement Corp., RB, Real Property, Series B
(AGC), 5.50%, 4/01/30	2,570	2,602,459
Modesto Irrigation District, COP, Series B, 5.50%, 7/01/35	3,300	3,250,533
Pittsburg Redevelopment Agency, TAN, Refunding, Subordinate, Los
Medanos Community Project, Series A, 6.50%, 9/01/28	2,500	2,581,100
Rancho Cucamonga Redevelopment Agency, California, TAN, Rancho
Redevelopment Project (MBIA), 5.13%, 9/01/30	15,500	13,487,790
San Diego Regional Building Authority, California, RB, County
Operations Center & Annex, Series A, 5.38%, 2/01/36	2,900	2,901,073
San Jose Unified School District, Santa Clara County California, GO,
Election of 2002, Series D, 5.00%, 8/01/32	2,875	2,794,615
Santa Ana Unified School District, GO, Election of 2008, Series A,
5.13%, 8/01/33	8,000	7,695,600
Santa Cruz County Redevelopment Agency, California, TAN, Live Oak,
Soquel Community Improvement, Series A, 7.00%, 9/01/36	1,200	1,220,712
Torrance Unified School District, California, GO, Election of 2008,
Measure Z, 6.00%, 8/01/33	2,500	2,649,825

| Municipal
Bonds | Par (000) | Value |
| --- | --- | --- |
| California (continued) | | |
| County/City/Special District/School District
(concluded) | | |
| Val Verde Unified School District, California, Special Tax, Refunding,
Junior Lien, 6.25%, 10/01/28 | $ 2,245 | $ 1,974,163 |
| Westminster Redevelopment Agency, California, TAN, Subordinate,
Commercial Redevelopment Project No. 1 (AGC), 6.25%, 11/01/39 | 2,350 | 2,440,710 |
| | | 70,875,513 |
| Education 9.4% | | |
| California Infrastructure & Economic Development Bank, RB, J David
Gladstone Institute Project, 5.25%, 10/01/34 | 15,250 | 14,069,955 |
| Oak Grove School District, California, GO, Election of 2008, Series A,
5.50%, 8/01/33 | 4,000 | 4,058,400 |
| | | 18,128,355 |
| Health 18.2% | | |
| ABAG Finance Authority for Nonprofit Corps, RB, Sharp Healthcare,
6.25%, 8/01/39 | 3,000 | 2,991,930 |
| California Health Facilities Financing Authority, California, RB,
Catholic Healthcare West, Series A, 6.00%, 7/01/34 | 3,000 | 2,916,750 |
| California Infrastructure & Economic Development Bank, RB, Kaiser
Hospital Assistance I, LLC, Series A, 5.55%, 8/01/31 | 13,500 | 13,314,510 |
| California Statewide Communities Development Authority, RB, Catholic
Healthcare West: | | |
| Series B, 5.50%, 7/01/30 | 3,000 | 2,765,460 |
| Series E, 5.50%, 7/01/31 | 2,000 | 1,828,840 |
| California Statewide Communities Development Authority, RB: | | |
| Daughters of Charity Health, Series A, 5.25%, 7/01/30 | 2,000 | 1,565,360 |
| Sutter Health, Series B, 5.63%, 8/15/42 | 10,000 | 9,587,900 |
| | | 34,970,750 |
| Housing 3.3% | | |
| City of San Jose California, RB, Villages Parkway Senior Apartments,
Series D (FNMA), AMT, 5.50%, 4/01/34 | 3,595 | 3,356,040 |
| Santa Clara County Housing Authority, California, RB, Series A: | | |
| John Burns Gardens Apartments Project, AMT, 5.85%, 8/01/31 | 1,715 | 1,731,172 |
| Rivertown Apartments Project, AMT, 6.00%, 8/01/41 | 1,235 | 1,232,209 |
| | | 6,319,421 |
| State 10.4% | | |
| California State Public Works Board, RB, Department Development
Services, Porterville, Series C: | | |
| 6.00%, 4/01/26 | 1,165 | 1,181,951 |
| 6.00%, 4/01/27 | 1,355 | 1,371,707 |
| California State Public Works Board, RB, Department Education,
Riverside Campus Project, Series B: | | |
| 6.00%, 4/01/27 | 1,675 | 1,695,653 |
| 6.50%, 4/01/34 | 5,000 | 5,282,250 |
| State of California, GO, Various Purpose, 6.50%, 4/01/33 | 9,700 | 10,486,864 |
| | | 20,018,425 |
| Transportation 15.7% | | |
| County of Orange California, RB, Series B, 5.75%, 7/01/34 | 3,000 | 3,048,810 |
| County of Sacramento California, RB, Senior, Series B, 5.75%, 7/01/39 | 1,350 | 1,309,649 |

| See Notes to Financial
Statements. — 16 | ANNUAL REPORT | JULY 31, 2009 |
| --- | --- | --- |

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

Municipal Bonds	Par (000)	Value
California (concluded)
Transportation (concluded)
Foothill Eastern Transportation Corridor Agency, California, Refunding
RB:
5.75%, 1/15/40	$ 10,030	$ 7,773,451
CAB, 5.88%, 1/15/26 (c)	5,000	4,237,750
CAB, 6.09%, 1/15/33 (a)	5,000	666,300
CAB, 6.09%, 1/15/34 (a)	5,000	611,400
CAB, 6.18%, 1/15/35 (a)	13,445	1,508,798
Port of Oakland, RB (MBIA), AMT:
Series K, AMT, 5.75%, 11/01/29	3,970	3,708,774
Series L, 5.38%, 11/01/27	3,710	3,377,955
San Francisco City & County Airports Commission, Refunding RB, 2nd
Series A-3, AMT, 6.75%, 5/01/19	3,775	3,956,577
		30,199,464
Utilities 12.4%
California Infrastructure & Economic Development Bank, RB,
California Independent System Operator, Series A, 6.25%, 2/01/39	2,500	2,543,750
Calleguas-Las Virgenes Public Financing Authority, California, RB,
Calleguas Municipal Water District Project, Series A (FGIC), 5.13%, 7/01/32	5,475	5,488,961
City of Richmond California, RB, CAB (FGIC), 5.76%, 8/01/31 (a)(d)	1,905	623,735
Los Angeles Department of Water & Power, RB, System, Series A:
5.38%, 7/01/34	1,400	1,420,076
5.38%, 7/01/38	1,800	1,820,466
San Diego County Water Authority, COP, Series 2008 A, COP (FSA),
5.00%, 5/01/33	6,040	5,916,180
San Diego Public Facilities Financing Authority, RB, Senior, Series A:
5.25%, 5/15/34	4,000	3,961,880
5.25%, 5/15/39	2,250	2,193,255
		23,968,303
Total Municipal Bonds in California		210,898,193
Multi-State (e)(f) 6.1%
Housing 6.1%
Charter Mac Equity Issuer Trust, 6.80%, 11/30/50	4,000	4,131,920
MuniMae TE Bond Subsidiary LLC, 6.30%, 6/30/49	7,000	5,669,860
MuniMae TE Bond Subsidiary LLC, 6.80%, 6/30/50	3,000	1,949,310
Total Municipal Bonds in Multi-State		11,751,090
Total Municipal Bonds 115.6%		222,649,283

Municipal Bonds Transferred to Tender Option Bond Trusts (g)	Par (000)	Value
California 47.3%
County/City/Special District/School District 23.9%
Los Angeles Community College District, California, GO, 2008 Election,
Series A, 6.00%, 8/01/33	$ 9,596	$ 10,325,918
Mount San Antonio Community College District, California, GO, Election
2001, Series C (FSA), 5.00%, 9/01/31	10,770	10,365,479
San Diego Community College District, California, GO, Election 2002
(FSA):
5.00%, 5/01/25	10,615	10,831,763
5.25%, 8/01/33	4,487	4,560,305
Santa Clara County Financing Authority, Refunding, RB, Lease Series L,
5.25%, 5/15/36	10,000	9,942,169
		46,025,634
Education 19.2%
California Educational Facilities Authority, RB, Stanford University,
Series Q, 5.25%, 12/01/32	10,000	10,228,912
California Educational Facilities Authority, RB, University Southern
California, Series A, 5.25%, 10/01/39	6,900	7,112,106
Los Angeles Unified School District, California, GO, Series I, 5.00%,
1/01/34	5,000	4,815,550
San Diego Community College District, California, GO, Election 2006 (FSA),
5.00%, 8/01/32	9,000	8,748,360
University of California, RB, Series O, 5.75%, 5/15/34	5,595	6,010,373
		36,915,301
Utilities 4.2%
Eastern Municipal Water
District, California, COP, Series H, 5.00%, 7/01/33	8,356	8,018,201
Total
Municipal Bonds Transferred to
Tender Option Bond Trusts 47.3%		90,959,136
Total
Long-Term Investments (Cost $329,769,436) 162.9%		313,608,419

| Short-Term Securities — CMA California Municipal
Money Fund, 0.04% (h)(i) | 3,630,796 | 3,630,796 | |
| --- | --- | --- | --- |
| Total
Short-Term Securities (Cost $3,630,796) 1.9% | | 3,630,796 | |
| Total
Investments (Cost $333,400,232*) 164.8% | | 317,239,215 | |
| Other
Assets Less Liabilities 1.4% | | 2,748,839 | |
| Liability for Trust Certificates, Including Interest Expense and Fees Payable (29.3)% | | (56,432,724 | ) |
| Preferred
Shares, at Redemption Value (36.9)% | | (71,004,510 | ) |
| Net Assets
Applicable to Common Shares 100.0% | $ | 192,550,820 | |

| See Notes to Financial
Statements. — ANNUAL
REPORT | JULY 31, 2009 | 17 |
| --- | --- | --- |

Schedule of Investments (concluded) BlackRock California Municipal Income Trust (BFZ)

The cost and unrealized appreciation (depreciation) of investments as of July 31, 2009, as computed for federal income tax purposes, were as follows:

Aggregate cost	$
Gross unrealized
appreciation	$ 3,850,332
Gross unrealized
depreciation	(19,409,820	)
Net unrealized depreciation	$ (15,559,488	)

| (a) | Represents a zero-coupon
bond. Rate shown reflects the current yield as of report date. |
| --- | --- |
| (b) | US government securities, held in escrow, are used to pay interest on this security as well
as to retire the bond in full at the date indicated, typically at a premium
to par. |
| (c) | Represents a step-up bond
that pays an initial coupon rate for the first period and then a higher
coupon rate for the following periods. Rate shown is as of report date. |
| (d) | Security is collateralized
by Municipal or US Treasury Obligations. |
| (e) | Security exempt from
registration under Rule 144A of the Securities Act of 1933. These securities
may be resold in transactions exempt from registration to qualified
institutional investors. |
| (f) | Security represents a
beneficial interest in a trust. The collateral deposited into the trust is
federally tax-exempt revenue bonds issued by various state or local
governments, or their respective agencies or authorities. The security is
subject to remarketing prior to its stated maturity, and is subject to
mandatory redemption at maturity. |
| (g) | Securities represent bonds
transferred to a tender option bond trust in exchange for which the Trust
acquired residual interest certificates. These securities serve as collateral
in a financing transaction. See Note 1 of the Notes to Financial Statements
for details of municipal bonds transferred to tender option bond trusts. |
| (h) | Investments in companies
considered to be an affiliate of the Trust, for purposes of Section 2(a)(3)
of the Investment Company Act of 1940, were as follows: |

| Affiliate — CMA California Municipal
Money Fund | (13,825,340 | ) | Income — $ 75,890 |
| --- | --- | --- | --- |

| (i) | Represents the current
yield as of report date. | |
| --- | --- | --- |
| | Effective August
1, 2008, the Trust adopted Financial Accounting Standards Board Statement of Financial Accounting Standards
No. 157, Fair Value Measurements (FAS 157). FAS 157 clarifies the
definition of fair value, establishes a framework for measuring fair values
and requires additional disclosures about the use of fair value measurements.
Various inputs are used in determining the fair value of investments, which
are as follows: | |
| | | Level 1 price quotations
in active markets/exchanges for identical securities |
| | | Level 2 other observable
inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are
active, quoted prices for identical or similar assets or liabilities in
markets that are not active, inputs other than quoted prices that are
observable for the assets or liabilities (such as interest rates, yield
curves, volatilities, prepayment speeds, loss severities, credit risks and
default rates) or other market-corroborated inputs) |
| | | Level 3 unobservable
inputs based on the best information available in the circumstances, to the extent observable
inputs are not available (including the Trusts own assumptions used in
determining the fair value of investments) |
| | The inputs or methodology
used for valuing securities are not necessarily an indication of the risk
associated with investing in those securities. For information about the
Trusts policy regarding valuation of investments and other significant
accounting policies, please refer to Note 1 of the Notes to Financial
Statements. | |
| | The following table
summarizes the inputs used as of July 31, 2009 in determining the fair
valuation of the Trusts investments: | |

| Valuation Inputs | Investments
in Securities |
| --- | --- |
| | Assets |
| Level 1 Short-Term
Securities | $ 3,630,796 |
| Level 2 Long-Term
Investments 1 | 313,608,419 |
| Level 3 | |
| Total | $ 317,239,215 |

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

| See Notes to Financial
Statements. — 18 | ANNUAL REPORT | JULY 31, 2009 |
| --- | --- | --- |

Schedule of Investments July 31, 2009
(Percentages
shown are based on Net Assets)

Municipal Bonds	Par (000)	Value
Florida 148.2%
Corporate 8.3%
County of Escambia Florida, RB, Series A, Environmental, AMT, 5.75%,
11/01/27	$ 4,000	$ 3,265,200
Hillsborough County IDA, RB, Tampa Electric Co. Project, 5.50%,
10/01/23	1,955	1,896,858
Hillsborough County IDA, RB, Tampa Electric, Series A, Remarketed,
5.65%, 5/15/18	1,000	1,015,820
		6,177,878
County/City/Special District/School District 69.7%
Broward County School Board, Florida, COP, Series A (FSA), 5.25%,
7/01/22	2,500	2,589,900
County of Hillsborough Florida, RB (AMBAC), 5.00%, 11/01/20	5,545	5,820,864
County of Miami-Dade Florida, RB, Sub-Series B (MBIA), 5.63%, 10/01/32
(a)	7,560	1,531,505
County of Miami-Dade Florida, Refunding RB, Sub-Series A (MBIA) (a):
5.31%, 10/01/19	5,365	2,931,221
5.29%, 10/01/20	10,000	5,095,500
County of Orange Florida, Refunding RB, Series A (MBIA), 5.13%,
1/01/22	2,200	2,243,714
Crossings At Fleming Island Community Development District, RB, 6.75%,
10/01/09 (b)	4,400	4,529,404
Hillsborough County School Board, COP (MBIA), 5.00%, 7/01/27	1,000	997,610
Miami-Dade County Educational Facilities Authority, Florida, RB,
University Miami, Series A (AMBAC), 5.00%, 4/01/14 (b)	2,000	2,284,700
Miami-Dade County School Board, Florida, COP, Series B (AGC), 5.25%,
5/01/21	4,000	4,147,320
Northern Palm Beach County Improvement District, RB, Water Control
& Improvement 43:
6.10%, 8/01/11 (b)	2,735	2,968,514
6.10%, 8/01/21	380	351,089
Northern Palm Beach County Improvement District, Special Assessment,
Refunding, Water Control & Improvement, No. 43, Series B (ACA):
4.50%, 8/01/22	1,000	658,620
5.00%, 8/01/31	1,000	585,360
Sterling Hill Community Development District, Special Assessment,
Series A, 6.10%, 5/01/23	4,105	3,771,428
Stevens Plantation Improvement Project Dependent Special District, RB,
6.38%, 5/01/13	2,425	1,920,479
Tolomato Community Development District, Special Assessment, 6.38%,
5/01/17	1,300	1,074,814
Village Center Community Development District Recreational RB,
Sub-Series B, 6.35%, 1/01/18	2,000	1,818,700
Village Center Community Development District Utility RB (MBIA),
5.25%, 10/01/23	5,000	4,654,100
Village Community Development District No. 5, Florida, Special
Assessment, Series A, 6.00%, 5/01/22	1,310	1,271,289
Watergrass Community Development District, Special Assessment, Series
B, 5.13%, 11/01/14	1,000	525,370
		51,771,501
Education 1.0%
Orange County Educational Facilities Authority, RB, Rollins College
Project (AMBAC), 5.25%, 12/01/22	725	753,398

Municipal Bonds	Par (000)	Value
Florida (concluded)
Health 17.2%
Escambia County Health Facilities Authority, RB, Florida Health Care
Facilities Loan, VHA Program (AMBAC), 5.95%, 7/01/20	$ 471	$ 486,957
Halifax Hospital Medical Center, Refunding RB & Improvement,
Series A, 5.25%, 6/01/26	2,500	2,199,075
Hillsborough County IDA, RB, H. Lee Moffitt Cancer Center Project,
Series A, 5.25%, 7/01/22	1,500	1,466,925
Lee County IDA, Florida, Refunding RB, Shell Point, Alliance Community
Project, 5.00%, 11/15/22	1,500	1,123,605
Marion County Hospital District, Florida, Refunding RB &
Improvement, Health System, Munroe Registered, 5.00%, 10/01/22	1,500	1,316,115
Miami Beach Health Facilities Authority, Refunding RB, Mount Sinai
Medical Center Florida, 6.75%, 11/15/21	1,310	1,106,164
Orange County Health Facilities Authority, RB, Hospital, Adventist
Health System, 5.63%, 11/15/12 (b)	4,450	5,030,725
		12,729,566
Housing 4.1%
Florida Housing Finance Corporation, RB, Homeowner Mortgage, Series 2
(GNMA), AMT, 4.70%, 7/01/22	2,165	2,090,069
Jacksonville HFA, RB, Series A-1 (GNMA), AMT, 5.63%, 10/01/39	935	953,803
		3,043,872
State 15.3%
Florida Municipal Loan Council, RB, CAB, Series A (MBIA), 5.17%,
4/01/20 (a)	4,000	2,337,560
Florida State Board of Education, GO, Public Education:
Series I, 5.00%, 6/01/18	500	543,625
Series J (AMBAC), 5.00%, 6/01/24	6,150	6,398,521
Florida State Board of Education, RB, Series B 5.00%, 7/01/23	2,000	2,047,040
		11,326,746
Transportation 4.0%
County of Lee Florida, Refunding RB, Series B (AMBAC), 5.00%, 10/01/22	3,000	3,001,140
Utilities 28.6%
City of Deltona Florida, RB (MBIA), 5.00%, 10/01/23	1,095	1,105,578
City of Lakeland Florida, Refunding RB & Improvement, 5.00%,
10/01/27	1,000	1,011,310
City of Marco Island Florida, RB (MBIA):
5.25%, 10/01/21	1,000	1,014,480
5.00%, 10/01/22	2,000	2,000,600
5.00%, 10/01/23	1,375	1,361,154
City of Palm Coast Florida, RB (MBIA):
5.00%, 10/01/22	1,770	1,783,965
5.00%, 10/01/23	1,485	1,493,212
5.00%, 10/01/24	1,500	1,506,045
Sumter County IDA, RB, North Sumter Utility Co. LLC, AMT, 6.80%,
10/01/32	1,165	992,592
Tohopekaliga Water Authority, RB (FSA):
Series A, 5.00%, 10/01/21	3,630	3,700,386
Series A, 5.00%, 10/01/23	2,000	2,024,600
Series B, 5.00%, 10/01/22	1,975	2,023,328
Series B, 5.00%, 10/01/23	1,180	1,203,919
		21,221,169
Total Municipal Bonds in Florida		110,025,270

| See Notes to Financial
Statements. — ANNUAL REPORT | JULY 31, 2009 | 19 |
| --- | --- | --- |

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

Municipal Bonds	Par (000)	Value
U.S. Virgin Islands 1.6%
Corporate 1.6%
Virgin Islands Public Finance Authority, RB, Senior Secured, Hovensa
Refinery, AMT, 4.70%, 7/01/22	$ 1,500	$ 1,233,105
Total Municipal Bonds in the U.S. Virgin Islands		1,233,105
Total Municipal Bonds 149.8%		111,258,375
Municipal Bonds Transferred to Tender Option Bond Trusts (c)
County/City/Special District/School District 8.8%
Palm Beach County School Board, Florida, COP, Refunding, Series D
(FSA), 5.00%, 8/01/28	6,510	6,511,823
Housing 3.2%
Manatee County HFA, RB, Series A (GNMA), AMT, 5.90%, 9/01/40	917	922,509
Lee County HFA, RB, Multi-County Program, Series A-2 (GNMA), AMT,
6.00%, 9/01/40	1,380	1,483,528
		2,406,037
Total
Municipal Bonds Transferred to
Tender Option Bond Trusts 12.0%		8,917,860
Total
Long-Term Investments (Cost $126,088,078) 161.8%		120,176,235
Short-Term
Securities	Shares
CMA Florida Municipal Money Fund, 0.04% (d)(e)	120,735	120,735
Total Short-Term Securities (Cost $120,735) 0.2%		120,735
Total Investments (Cost $126,208,813*) 162.0%		120,296,970
Other Assets Less Liabilities 2.1%		1,531,082
Liability for Trust Certificates, Including Interest
Expense and Fees Payable (6.3)%		(4,667,841	)
Preferred Shares, at Redemption Value (57.8)%		(42,904,262	)
Net Assets Applicable to Common Shares 100.0%		$ 74,255,949

The cost and unrealized appreciation (depreciation) of investments as of July 31, 2009, as computed for federal income tax purposes, were as follows:

Aggregate cost	$
Gross unrealized
appreciation	$ 1,341,818
Gross unrealized
depreciation	(7,196,833	)
Net unrealized depreciation	$ (5,855,015	)

| Affiliate — CMA Florida Municipal Money
Fund | (281,811 | ) | Income — $ 19,328 |
| --- | --- | --- | --- |

| (e) | Represents the current
yield as of report date. | |
| --- | --- | --- |
| | Financial Accounting
Standards Board Statement of Financial Accounting Standards No. 157, Fair Value Measurements clarifies
the definition of fair value, establishes a framework for measuring fair
values and requires additional disclosures about the use of fair value measurements.
Various inputs are used in determining the fair value of investments, which
are as follows: | |
| | | Level 1 price quotations
in active markets/exchanges for identical securities |
| | | Level 2 other observable
inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are
active, quoted prices for identical or similar assets or liabilities in
markets that are not active, inputs other than quoted prices that are
observable for the assets or liabilities (such as interest rates, yield
curves, volatilities, prepayment speeds, loss severities, credit risks and
default rates) or other market-corroborated inputs) |
| | | Level 3 unobservable
inputs based on the best information available in the circumstances, to the extent observable
inputs are not available (including the Trusts own assumptions used in
determining the fair value of investments) |

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Trusts policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

The following table summarizes the inputs used as of July 31, 2009 in determining the fair valuation of the Trusts investments:

| Valuation Inputs | Investments
in Securities |
| --- | --- |
| | Assets |
| Level 1 Short Term
Securities | $ 120,735 |
| Level 2 Long Term
Investments 1 | 120,176,235 |
| Level 3 | |
| Total | $ 120,296,970 |

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

| See Notes to Financial
Statements. — 20 | ANNUAL REPORT | JULY 31, 2009 |
| --- | --- | --- |

Schedule of Investments July 31, 2009
(Percentages
shown are based on Net Assets)

Municipal Bonds	Par (000)	Value
California 14.4%
California Health Facilities Financing Authority, California, RB,
Catholic Healthcare West, Series A, 6.00%, 7/01/39	$ 130	$ 125,787
California State Public Works Board, RB, Department General Services,
Buildings 8 & 9, Series A, 6.25%, 4/01/34	300	304,530
San Diego Public Facilities Financing Authority, RB, Series B, 5.50%,
8/01/39	615	617,491
San Diego Regional Building Authority, California, RB, County
Operations Center & Annex, Series A, 5.38%, 2/01/36	240	240,089
San Francisco City & County Airports Commission, Refunding RB, 2nd
Series A-3, AMT, 6.75%, 5/01/19	500	524,050
		1,811,947
Florida 34.3%
Arborwood Community Development District, Special Assessment, Master
Infrastructure Projects, Series B, 5.10%, 5/01/14	215	150,874
Ave Maria Stewardship Community Development District, Special
Assessment, BAN, 4.80%, 11/01/12	500	340,650
Broward County, HFA, RB, Series E, AMT, 5.90%, 10/01/39	215	216,888
Capital Region Community Development District, Florida, Special
Assessment, Capital Improvement, Series A, 7.00%, 5/01/39	125	91,059
City of Boynton Beach Florida, Refunding RB (FGIC), 6.25%, 11/01/20
(a)	170	208,610
County of Miami-Dade Florida, RB, Miami International Airport, Series
A (FSA), AMT, 5.50%, 10/01/41	115	103,255
County of Miami-Dade Florida, RB, Sub-Series B (MBIA), 5.65%, 10/01/31
(b)	5,000	1,091,700
County of Saint Johns Florida, RB, CAB (AMBAC), 5.40%, 6/01/32 (b)	1,000	242,230
Florida Higher Educational Facilities Financial Authority, RB, Flagler
College Inc. Project (Syncora), 5.25%, 11/01/36	555	461,249
Heritage Harbour North Community Development District, Special
Assessment, 6.38%, 5/01/38	240	161,928
Jacksonville Economic Development Commission, RB, Metropolitan Parking
Solutions Project (ACA), AMT, 5.50%, 10/01/30	500	383,815
Miami Beach Health Facilities Authority, Refunding RB, Mount Sinai
Medical Center Florida, 6.75%, 11/15/21	230	194,212
New River Community Development District, Special Assessment, Series
B, 5.00%, 5/01/13 (c)(d)	250	107,790
Tolomato Community Development District, Special Assessment, Special
Assessment, 6.55%, 5/01/27	250	181,393
Village Center Community Development District Recreational RB, Series
A (MBIA), 5.00%, 11/01/32	450	366,345
		4,301,998

Municipal Bonds	Par (000)	Value
Georgia 4.4%
Municipal Electric Authority of Georgia, RB, General Resolution
Projects, Sub-Series D, 6.00%, 1/01/23	$ 500	$ 556,120
Illinois 4.2%
Illinois Finance Authority, RB, Series A:
Northwestern Memorial Hospital, 6.00%, 8/15/39	250	258,368
Rush University Medical Center Obligation Group, 7.25%, 11/01/30	250	266,425
		524,793
Indiana 2.8%
Indiana Municipal Power Agency, Indiana, RB, Indiana Muni Power Agency
Series B, 6.00%, 1/01/39	335	347,914
Kansas 2.0%
Kansas Development Finance Authority, RB, Adventist Health, 5.50%,
11/15/29	250	250,953
Kentucky 3.5%
Louisville & Jefferson County Metropolitan Government RB:
Jewish Hospital Saint Marys Healthcare, 6.13%, 2/01/37	215	214,290
Parking Authority, Series A, 5.75%, 12/01/34	220	231,321
		445,611
Maine 1.9%
Maine State Housing Authority, Maine, RB, Series C, AMT, 5.45%,
11/15/23	235	235,101
Massachusetts 6.0%
Massachusetts HFA, Massachusetts, RB, Housing, Series F, AMT, 5.70%,
6/01/40	250	239,497
Massachusetts Health & Educational Facilities Authority, RB, Tufts
University, 5.38%, 8/15/38	250	260,810
Massachusetts State College Building Authority, RB, Series A, 5.50%,
5/01/39	250	256,428
		756,735
Michigan 5.0%
Michigan State Building Authority, Refunding RB, Facilities Program,
Series I, 6.00%, 10/15/38	250	257,092
Royal Oak Hospital Finance Authority, Michigan, RB, William Beaumont
Hospital, 8.25%, 9/01/39	325	366,623
		623,715
Nevada 2.1%
City of Las Vegas Nevada, GO, Limited Tax, Performing Arts Center,
6.00%, 4/01/34	250	263,645

| See Notes to Financial
Statements. — ANNUAL REPORT | JULY 31, 2009 | 21 |
| --- | --- | --- |

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

Municipal Bonds	Par (000)	Value
New Jersey 3.7%
New Jersey EDA, Refunding RB, School Facilities Construction, Series
AA, 5.50%, 12/15/29	$ 250	$ 263,817
New Jersey Transportation Trust Fund Authority, New Jersey, RB,
Transportation System, Series A, 5.88%, 12/15/38	190	201,286
		465,103
New York 6.3%
New York City Transitional Finance Authority, RB, Fiscal 2009, Series
S-3, 5.25%, 1/15/39	250	249,620
New York State Dormitory Authority, RB, Education, Series B, 5.25%,
3/15/38	300	305,196
Triborough Bridge & Tunnel Authority, New York, RB, General
Purpose, Series A-2, 5.38%, 11/15/38	225	232,542
		787,358
Pennsylvania 7.6%
Pennsylvania Economic Development Financing Authority, RB,
Pennsylvania, American Water Co. Project, 6.20%, 4/01/39	300	312,132
Pennsylvania Turnpike Commission, RB:
Sub-Series B, 5.25%, 6/01/39	425	410,563
Sub-Series C (AGC), 6.25%, 6/01/38	215	237,564
		960,259
Puerto Rico 4.8%
Puerto Rico HFA, RB, Subordinate, Capital Fund Modernization, 5.13%,
12/01/27	225	225,248
Puerto Rico Sales Tax Financing Corp., RB, First Sub-Series A, 5.75%,
8/01/37	385	380,773
		606,021
Texas 7.0%
Conroe ISD, Texas, GO, School Building, Series A, 5.75%, 2/15/35	140	146,924
Harris County Health Facilities Development Corp., Refunding RB,
Memorial Hermann Healthcare System, Series B, 7.13%, 12/01/31	250	269,850
Houston Texas Airport Systems Revenue, ARB, Refunding, Senior Lien,
Series A, 5.50%, 7/01/39	85	83,345
Lower Colorado River Authority, Refunding RB, 5.75%, 5/15/28	120	123,857
North Texas Tollway Authority, Refunding RB, System, First Tier,
Series K-1 (AGC), 5.75%, 1/01/38	250	260,690
		884,666
Virginia 2.2%
Virginia Public School Authority, Virginia, RB, School Financing,
6.50%, 12/01/35	250	279,455
Total Municipal Bonds 112.2%		14,101,394

Municipal Bonds Transferred to Tender Option Bond Trusts (e)	Par (000)	Value
California 10.7%
California Educational Facilities Authority, RB, University Southern
California, Series A, 5.25%, 10/01/39	$ 300	$ 309,222
Los Angeles Community College District, California, GO, 2008 Election,
Series A, 6.00%, 8/01/33	700	752,932
Los Angeles Unified School District, California, GO, Series I, 5.00%,
1/01/34	60	57,787
University of California, RB, Series O, 5.75%, 5/15/34	210	225,590
		1,345,531
District of Columbia 4.1%
District of Columbia, RB, Series A, 5.50%, 12/01/30	195	209,625
District of Columbia Water & Sewer Authority, RB, Series A, 5.50%,
10/01/39	300	311,804
		521,429
Florida 9.2%
Hillsborough County Aviation Authority, Florida, RB, Series A (AGC),
AMT, 5.50%, 10/01/38	280	253,607
JEA, RB, Issue Three, Series Two, River Power Park, 5.00%, 10/01/37	210	201,415
Lee County HFA, RB, Multi-County Program, Series A-2 (GNMA), AMT,
6.00%, 9/01/40	450	483,759
Manatee County HFA, RB, Series A (GNMA), AMT, 5.90%, 9/01/40	220	221,564
		1,160,345
Illinois 5.6%
Illinois Finance Authority, RB, University of Chicago, Series B,
6.25%, 7/01/38	400	441,044
Illinois State Toll Highway Authority, RB, Series B, 5.50%, 1/01/33	250	261,417
		702,461
Nevada 4.2%
Clark County Water Reclamation District, GO, Limited Tax, 6.00%,
7/01/38	500	533,000
New Hampshire 1.4%
New Hampshire Health & Education Facilities Authority, RB,
Dartmouth College, 5.25%, 6/01/39	165	171,855
New York 4.2%
New York City Municipal Water Finance Authority, RB:
Fiscal 2009, Series A, 5.75%, 6/15/40	240	257,047
Series FF-2, 5.50%, 6/15/40	255	267,896
		524,943
South Carolina 4.3%
South Carolina State Public Service Authority, RB, Santee Cooper
Series A, 5.50%, 1/01/38	510	536,377
Texas 5.6%
City of San Antonio, Texas, Refunding RB, Series A, 5.25%, 2/01/31	300	308,521
Harris County Cultural Education Facilities Finance Corp., RB, Texas
Childrens Hospital Project, 5.50%, 10/01/39	400	399,380
		707,901

| See Notes to Financial
Statements. — 22 | ANNUAL REPORT | JULY 31, 2009 |
| --- | --- | --- |

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

Municipal Bonds Transferred to Tender Option Bond Trusts (e)	Par (000)	Value
Virginia
1.1%
Fairfax County IDA, Virginia, RB, Health Care, Inova Health System,
Series A, 5.50%, 5/15/35	$ 130	$ 132,161
Total
Municipal Bonds Transferred to
Tender Option Bond Trusts 50.4%		6,336,003
Total
Long-Term Investments (Cost $21,059,938) 162.6%		20,437,397
Short-Term Securities	Shares
FFI Institutional
Tax-Exempt Fund, 0.42% (f)(g)	100,105	100,105
Total
Short-Term Securities (Cost $100,105) 0.8%		100,105
Total
Investments (Cost $21,160,043*) 163.4%		20,537,502
Other
Assets Less Liabilities 1.1%		131,224
Liability
for Trust Certificates, Including Interest Expense and Fees Payable (28.1)%		(3,528,242	)
Preferred
Shares, at Redemption Value (36.4)%		(4,575,218	)
Net Assets
Applicable to Common Shares 100.0%		$ 12,565,266

The cost and unrealized appreciation (depreciation) of investments as of July 31, 2009, as computed for federal income tax purposes, were as follows:

Aggregate cost	$
Gross unrealized
appreciation	$ 656,592
Gross unrealized
depreciation	(1,323,747	)
Net unrealized depreciation	$ (667,155	)

| (a) | Security is collateralized
by Municipal or US Treasury Obligations. |
| --- | --- |
| (b) | Represents a zero-coupon
bond. Rate shown reflects the current yield as of report date. |
| (c) | Non-income producing
security. |
| (d) | Issuer filed for bankruptcy
and/or is in default of interest payments. |
| (e) | Securities represent bonds
transferred to a tender option bond trust in exchange for which the Trust
acquired residual interest certificates. These securities serve as collateral
in a financing transaction. See Note 1 of the Notes to Financial Statements
for details of municipal bonds transferred to tender option bond trusts. |
| (f) | Investments in companies
considered to be an affiliate of the Trust, for purposes of Section 2(a)(3)
of the Investment Company Act of 1940, were as follows: |

| Affiliate — CMA Florida Municipal Money
Fund | (519,263 | Income — $ 10,238 |
| --- | --- | --- |
| FFI Institutional
Tax-Exempt Fund | 100,105 | $ 485 |

| (g) | Represents the current
yield as of report date. | |
| --- | --- | --- |
| | Effective August
1, 2008, the Trust adopted Financial Accounting Standards Board Statement of Financial Accounting Standards
No. 157, Fair Value Measurements (FAS 157). FAS 157 clarifies the
definition of fair value, establishes a framework for measuring fair values
and requires additional disclosures about the use of fair value measurements.
Various inputs are used in determining the fair value of investments, which
are as follows: | |
| | | Level 1 price quotations
in active markets/exchanges for identical securities |
| | | Level 2 other observable
inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are
active, quoted prices for identical or similar assets or liabilities in
markets that are not active, inputs other than quoted prices that are
observable for the assets or liabilities (such as interest rates, yield
curves, volatilities, prepayment speeds, loss severities, credit risks and
default rates) or other market-corroborated inputs) |
| | | Level 3 unobservable
inputs based on the best information available in the circumstances, to the extent observable
inputs are not available (including the Trusts own assumptions used in
determining the fair value of investments) |

The following table summarizes the inputs used as of July 31, 2009 in determining the fair valuation of the Trusts investments:

| Valuation Inputs | Investments
in Securities |
| --- | --- |
| | Assets |
| Level 1 Short-Term
Securities | $ 100,105 |
| Level 2 Long-Term
Investments 1 | 20,437,397 |
| Level 3 | |
| Total | $ 20,537,502 |

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

| See Notes to Financial
Statements. — ANNUAL REPORT | JULY 31, 2009 | 23 |
| --- | --- | --- |

Schedule of Investments July 31, 2009
(Percentages
shown are based on Net Assets)

| Municipal
Bonds | Par (000) | Value |
| --- | --- | --- |
| California 10.3% | | |
| County/City/Special District/School District 1.9% | | |
| San Diego Regional Building Authority, California, RB, County
Operations Center & Annex, Series A, 5.38%, 2/01/36 | $ 1,600 | $ 1,600,592 |
| Health 1.0% | | |
| California Health Facilities Financing Authority, California, RB,
Catholic Healthcare West, Series A, 6.00%, 7/01/39 | 890 | 861,155 |
| State 2.5% | | |
| California State Public Works Board, RB, Department General Services,
Buildings 8 & 9, Series A, 6.25%, 4/01/34 | 2,075 | 2,106,332 |
| Utilities 4.9% | | |
| San Diego Public Facilities Financing Authority, RB, Series B, 5.50%,
8/01/39 | 4,210 | 4,227,050 |
| Total Municipal Bonds in California | | 8,795,129 |
| District of Columbia 1.2% | | |
| Utilities 1.2% | | |
| District of Columbia Water & Sewer Authority, RB, Series A, 5.25%,
10/01/29 | 1,000 | 1,033,740 |
| Total Municipal Bonds in District of Columbia | | 1,033,740 |
| Florida 54.0% | | |
| County/City/Special District/School District 29.0% | | |
| Ave Maria Stewardship Community Development District, Special
Assessment, BAN, 4.80%, 11/01/12 | 1,000 | 681,300 |
| Capital Region Community Development District, Florida, Special
Assessment, Capital Improvement, Series A, 7.00%, 5/01/39 | 640 | 466,221 |
| City of Jacksonville Florida, RB (MBIA), 5.00%, 10/01/26 | 4,000 | 4,034,040 |
| County of Miami-Dade Florida, RB (a): | | |
| Sub-Series B (MBIA), 5.61%, 10/01/33 | 9,700 | 1,825,637 |
| Sub-Series C (MBIA), 5.63%, 10/01/28 | 23,630 | 6,534,876 |
| Heritage Harbour North Community Development District, Special
Assessment, 6.38%, 5/01/38 | 1,430 | 964,821 |
| Laguna Lakes Community Development District, Florida, RB, Series A,
6.40%, 5/01/13 (b) | 1,550 | 1,827,450 |
| New River Community Development District, Special Assessment, Series
B, 5.00%, 5/01/13 (c)(d) | 1,500 | 646,740 |
| Northern Palm Beach County Improvement District, RB: | | |
| Water Control & Improvement, Unit Development No. 43, 6.13%,
8/01/11 (b) | 2,950 | 3,291,551 |
| Water Control & Improvement 43, 6.10%, 8/01/11 (b) | 1,155 | 1,253,614 |
| Balance, Water Control Improvement 43, 6.10%, 8/01/11 | 155 | 143,208 |
| Tolomato Community Development District, Special Assessment, Special
Assessment, 6.55%, 5/01/27 | 1,250 | 906,963 |
| Village Center Community Development District Recreational Revenue,
RB, Series A (MBIA), 5.00%, 11/01/32 | 1,795 | 1,461,310 |
| Village Community Development District No. 5, Florida, Special
Assessment, Series A, 6.50%, 5/01/33 | 65 | 65,545 |
| Municipal
Bonds | Par (000) | Value |
| Florida (concluded) | | |
| County/City/Special District/School District
(concluded) | | |
| Watergrass Community Development District, Special Assessment, Series
B, 5.13%, 11/01/14 | $ 1,000 | $ 525,370 |
| | | 24,628,646 |
| Education 9.9% | | |
| Capital Projects Finance Authority, RB, Capital Projects Loan Program,
Senior Series F-1 (MBIA), 5.00%, 10/01/31 | 2,185 | 1,733,579 |
| City of Tampa Florida, RB, University Tampa Project (Radian), 5.63%,
4/01/32 | 5,400 | 4,854,870 |
| Volusia County Educational Facility Authority, RB, Educational
Facilities, Embry Riddle Aero, Series A, 5.75%, 10/15/29 | 2,000 | 1,862,100 |
| | | 8,450,549 |
| Health 7.8% | | |
| Escambia County Health Facilities Authority, RB, Florida Health Care
Facilities Loan, VHA Program (AMBAC), 5.95%, 7/01/20 | 664 | 685,873 |
| Highlands County Health Facilities Authority, RB, Hospital, Adventist,
Sunbelt, Series A, 6.00%, 11/15/11 (b) | 4,150 | 4,654,847 |
| Miami Beach Health Facilities Authority, Refunding RB, Mount Sinai
Medical Center Florida, 6.75%, 11/15/21 | 1,565 | 1,321,486 |
| | | 6,662,206 |
| Transportation 1.2% | | |
| Miami-Dade County Expressway Authority, Florida, Refunding RB (MBIA),
5.13%, 7/01/25 | 1,000 | 1,006,540 |
| Utilities 6.1% | | |
| City of Tampa Florida, Refunding RB, Series A, 5.00%, 10/01/26 | 4,000 | 4,054,640 |
| County of Saint Johns Florida, RB, CAB (AMBAC), 5.34%, 6/01/30 (a) | 3,945 | 1,098,919 |
| | | 5,153,559 |
| Total Municipal Bonds in Florida | | 45,901,500 |
| Georgia 3.8% | | |
| Utilities 3.8% | | |
| Municipal Electric Authority of Georgia, RB, General Resolution
Projects, Sub-Series D, 6.00%, 1/01/23 | 2,900 | 3,225,496 |
| Total Municipal Bonds in Georgia | | 3,225,496 |
| Illinois 4.3% | | |
| Health 4.3% | | |
| Illinois Finance Authority, RB: | | |
| Northwestern Memorial Hospital, Series A, 6.00%, 8/15/39 | 1,900 | 1,963,593 |
| Rush University Medical Center Obligation Group, Series B, 7.25%,
11/01/30 | 1,600 | 1,705,120 |
| | | 3,668,713 |
| Total Municipal Bonds in Illinois | | 3,668,713 |

| See Notes to Financial
Statements. — 24 | ANNUAL REPORT | JULY 31, 2009 |
| --- | --- | --- |

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

| Municipal
Bonds | Par (000) | Value |
| --- | --- | --- |
| Indiana 2.7% | | |
| Utilities 2.7% | | |
| Indiana Municipal Power Agency, Indiana, RB, Indiana Muni Power Agency
Series B, 6.00%, 1/01/39 | $ 2,210 | $ 2,295,195 |
| Total Municipal Bonds in Indiana | | 2,295,195 |
| Kansas 1.9% | | |
| Health 1.9% | | |
| Kansas Development Finance Authority, RB, Adventist Health, 5.50%,
11/15/29 | 1,600 | 1,606,096 |
| Total Municipal Bonds in Kansas | | 1,606,096 |
| Kentucky 3.6% | | |
| County/City/Special District/School District 1.9% | | |
| Louisville & Jefferson County Metropolitan Government Parking
Authority, RB, Series A, 5.75%, 12/01/34 | 1,500 | 1,577,190 |
| Health 1.7% | | |
| Louisville, Jefferson County Metropolitan Government, RB, Jewish
Hospital Saint Marys Healthcare, 6.13%, 2/01/37 | 1,450 | 1,445,215 |
| Total Municipal Bonds in Kentucky | | 3,022,405 |
| Massachusetts 2.1% | | |
| Education 1.2% | | |
| Massachusetts Health & Educational Facilities Authority, RB, Tufts
University, 5.38%, 8/15/38 | 1,000 | 1,043,240 |
| State 0.9% | | |
| Massachusetts State College Building Authority, RB, Series A, 5.50%,
5/01/39 | 750 | 769,282 |
| Total Municipal Bonds in Massachusetts | | 1,812,522 |
| Michigan 2.5% | | |
| Health 1.3% | | |
| Royal Oak Hospital Finance Authority, Michigan, RB, William Beaumont
Hospital, 8.25%, 9/01/39 | 995 | 1,122,430 |
| State 1.2% | | |
| Michigan State Building Authority, Refunding RB, Facilities Program,
Series I, 6.00%, 10/15/38 | 1,000 | 1,028,370 |
| Total Municipal Bonds in Michigan | | 2,150,800 |
| Nevada 2.0% | | |
| County/City/Special District/School District 2.0% | | |
| City of Las Vegas Nevada, GO, Limited Tax, Performing Arts Center,
6.00%, 4/01/34 | 1,600 | 1,687,328 |
| Total Municipal Bonds in Nevada | | 1,687,328 |
| New Jersey 1.6% | | |
| Transportation 1.6% | | |
| New Jersey Transportation Trust Fund Authority, New Jersey, RB,
Transportation System, Series A, 5.88%, 12/15/38 | 1,295 | 1,371,923 |
| Total Municipal Bonds in New Jersey | | 1,371,923 |
| Municipal
Bonds | Par (000) | Value |
| New York 7.3% | | |
| County/City/Special District/School District 1.8% | | |
| New York City Transitional Finance Authority, RB, Fiscal 2009, Series
S-3, 5.25%, 1/15/39 | $ 1,500 | $ 1,497,720 |
| State 2.4% | | |
| New York State Dormitory Authority, RB, Education, Series B, 5.25%,
3/15/38 | 2,000 | 2,034,640 |
| Transportation 1.8% | | |
| Triborough Bridge & Tunnel Authority, New York, RB, General Purpose,
Series A-2, 5.38%, 11/15/38 | 1,510 | 1,560,615 |
| Utilities 1.3% | | |
| Long Island Power Authority, RB, Series A, 5.50%, 4/01/24 | 1,055 | 1,116,528 |
| Total Municipal Bonds in New York | | 6,209,503 |
| Pennsylvania 4.0% | | |
| Transportation 3.4% | | |
| Pennsylvania Turnpike Commission, RB, Sub-Series B, 5.25%, 6/01/39 | 2,945 | 2,844,958 |
| Utilities 0.6% | | |
| Pennsylvania Economic Development Financing Authority, RB,
Pennsylvania, American Water Co. Project, 6.20%, 4/01/39 | 500 | 520,220 |
| Total Municipal Bonds in Pennsylvania | | 3,365,178 |
| Puerto Rico 4.8% | | |
| Housing 1.8% | | |
| Puerto Rico HFA, RB, Subordinate, Capital Fund Modernization, 5.13%,
12/01/27 | 1,500 | 1,501,650 |
| State 3.0% | | |
| Puerto Rico Sales Tax Financing Corp., RB, First Sub-Series A, 5.75%,
8/01/37 | 2,605 | 2,576,397 |
| Total Municipal Bonds in Puerto Rico | | 4,078,047 |
| Texas 7.3% | | |
| County/City/Special District/School District 1.1% | | |
| Conroe ISD, Texas, GO, School Building, Series A, 5.75%, 2/15/35 | 890 | 934,019 |
| Health 0.6% | | |
| Harris County Health Facilities Development Corp., Refunding RB,
Memorial Hermann Healthcare System, Series B, 7.13%, 12/01/31 | 500 | 539,700 |
| Transportation 2.2% | | |
| Houston Texas Airport Systems Revenue, ARB, Refunding, Senior Lien,
Series A, 5.50%, 7/01/39 (e) | 595 | 583,415 |
| North Texas Tollway Authority, Refunding RB, System, First Tier,
Series K-1 (AGC), 5.75%, 1/01/38 | 1,250 | 1,303,450 |
| | | 1,886,865 |
| Utilities 3.4% | | |
| Lower Colorado River Authority, Refunding RB: | | |
| 5.75%, 5/15/28 | 810 | 836,033 |
| 5.50%, 5/15/33 | 2,000 | 2,013,360 |
| | | 2,849,393 |
| Total Municipal Bonds in Texas | | 6,209,977 |

| See Notes to Financial
Statements. — ANNUAL REPORT | JULY 31, 2009 | 25 |
| --- | --- | --- |

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

| Municipal
Bonds | Par (000) | Value | |
| --- | --- | --- | --- |
| Virginia 1.3% | | | |
| State 1.3% | | | |
| Virginia Public School Authority, Virginia, RB, School Financing,
6.50%, 12/01/35 | $ 1,000 | $ 1,117,820 | |
| Total Municipal Bonds in Virginia | | 1,117,820 | |
| Total Municipal Bonds 114.7% | | 97,551,372 | |
| Municipal
Bonds Transferred to Tender Option Bond Trusts (f) | | | |
| California 9.7% | | | |
| Education 9.7% | | | |
| California Educational Facilities Authority, RB, University Southern
California, Series A, 5.25%, 10/01/39 | 1,995 | 2,056,326 | |
| Los Angeles Community College District, California, GO, 2008 Election,
Series A, 6.00%, 8/01/33 | 3,898 | 4,194,904 | |
| Los Angeles Unified School District, California, GO, Series I, 5.00%,
1/01/34 | 400 | 385,244 | |
| University of California, RB, Series O, 5.75%, 5/15/34 | 1,500 | 1,611,361 | |
| Total
California Municipal Bonds Transferred
to Tender Option Bond Trusts | | 8,247,835 | |
| District of Columbia 4.0% | | | |
| County/City/Special District/School District 1.8% | | | |
| District of Columbia, RB, Series A, 5.50%, 12/01/30 | 1,395 | 1,499,626 | |
| Utilities 2.2% | | | |
| District of Columbia Water & Sewer Authority, RB, Series A, 5.50%,
10/01/39 | 1,799 | 1,870,823 | |
| Total
District of Columbia Municipal Bonds Transferred
to Tender Option Bond Trusts | | 3,370,449 | |
| Florida 10.1% | | | |
| Health 8.9% | | | |
| Jacksonville Economic Development Commission, RB, Mayo Clinic Jacksonville, Series B, 5.50%, 11/15/36 | 7,490 | 7,540,782 | |
| Utilities 1.2% | | | |
| Jacksonville Electric Authority, RB, Issue Three, Series Two, River Power Park, 5.00%, 10/01/37 | 1,110 | 1,064,624 | |
| Total
Florida Municipal Bonds Transferred
to Tender Option Bond Trusts | | 8,605,406 | |
| Illinois 3.6% | | | |
| Education 3.6% | | | |
| Illinois Finance Authority, RB, University of Chicago, Series B, 6.25%, 7/01/38 | 2,800 | 3,087,308 | |
| Total
Illinois Municipal Bonds Transferred
to Tender Option Bond Trusts | | 3,087,308 | |
| Nevada 5.6% | | | |
| County/City/Special District/School District 5.6% | | | |
| Clark County Water Reclamation District, GO: | | | |
| Limited Tax, 6.00%, 7/01/38 | 2,500 | 2,665,000 | |
| Series B, 5.50%, 7/01/29 | 1,994 | 2,106,669 | |
| Total
Nevada Municipal Bonds Transferred
to Tender Option Bond Trusts | | 4,771,669 | |
| Municipal Bonds Transferred to Tender Option Bond Trusts (f) | Par (000) | Value | |
| New Hampshire 1.3% | | | |
| Education 1.3% | | | |
| New Hampshire Health & Education Facilities Authority, RB, Dartmouth College, 5.25%, 6/01/39 | $ 1,094 | $ 1,140,487 | |
| Total New
Hampshire Municipal Bonds Transferred
to Tender Option Bond Trusts | | 1,140,487 | |
| New York 4.3% | | | |
| Utilities 4.3% | | | |
| New York City Municipal Water Finance Authority, RB: | | | |
| Fiscal 2009, Series A, 5.75%, 6/15/40 | 1,410 | 1,510,151 | |
| Series FF-2, 5.50%, 6/15/40 | 1,994 | 2,095,893 | |
| Total New
York Municipal Bonds Transferred
to Tender Option Bond Trusts | | 3,606,044 | |
| South Carolina 2.2% | | | |
| Utilities 2.2% | | | |
| South Carolina State Public Service Authority, RB, Santee Cooper Series A, 5.50%, 1/01/38 | 1,755 | 1,845,769 | |
| Total
South Carolina Municipal Bonds Transferred
to Tender Option Bond Trusts | | 1,845,769 | |
| Texas 5.7% | | | |
| Health 3.2% | | | |
| Harris County Cultural Education Facilities Finance Corp., RB, Texas
Childrens Hospital Project, 5.50%, 10/01/39 | 2,750 | 2,745,738 | |
| Utilities 2.5% | | | |
| City of San Antonio, Texas, RB, Refunding, Series A, 5.25%, 2/01/31 | 2,025 | 2,082,515 | |
| Total
Texas Municipal Bonds Transferred
to Tender Option Bond Trusts | | 4,828,253 | |
| Virginia 1.1% | | | |
| Health 1.1% | | | |
| Fairfax County IDA, Virginia, RB, Health Care, Inova Health System, Series A, 5.50%, 5/15/35 | 899 | 914,958 | |
| Total
Virginia Municipal Bonds Transferred
to Tender Option Bond Trusts | | 914,958 | |
| Total
Municipal Bonds Transferred to
Tender Option Bond Trusts 47.6% | | 40,418,178 | |
| Total
Long-Term Investments (Cost $140,675,633) 162.3% | | 137,969,550 | |
| Short-Term
Securities | Shares | | |
| FFI Institutional Tax-Exempt Fund, 0.42% (g)(h) | 1,702,906 | 1,702,906 | |
| Total
Short-Term Securities (Cost $1,702,906) 2.0% | | 1,702,906 | |
| Total Investments (Cost $142,378,539*) 164.3% | | 139,672,456 | |
| Other Assets Less Liabilities 2.2% | | 1,875,694 | |
| Liability for Trust Certificates, Including Interest Expense and Fees Payable (26.2)% | | (22,245,220 | ) |
| Preferred Shares, at Redemption Value (40.3)% | | (34,252,721 | ) |
| Net Assets Applicable to Common Shares 100.0% | | $ 85,050,209 | |

| See Notes to Financial
Statements. — 26 | ANNUAL REPORT | JULY 31, 2009 |
| --- | --- | --- |

Schedule of Investments (concluded) BlackRock Municipal Income Investment Trust (BBF)

The cost and unrealized appreciation (depreciation) of investments as of July 31, 2009, as computed for federal income tax purposes, were as follows:

Aggregate cost	$
Gross unrealized
appreciation	$ 4,122,726
Gross unrealized
depreciation	(7,240,498	)
Net unrealized depreciation	$ (3,117,772	)

| Affiliate — CMA Florida Municipal Money
Fund | (6,503,333 | Income — $ 51,123 |
| --- | --- | --- |
| FFI Institutional
Tax-Exempt Fund | 1,702,906 | $ 4,821 |

| (h) | Represents the current
yield as of report date. | |
| --- | --- | --- |
| | Effective August 1, 2008, the
Trust adopted Financial Accounting Standards Board Statement of Financial Accounting Standards
No. 157, Fair Value Measurements (FAS 157). FAS 157 clarifies the
definition of fair value, establishes a framework for measuring fair values
and requires additional disclosures about the use of fair value measurements.
Various inputs are used in determining the fair value of investments, which
are as follows: | |
| | | Level 1 price quotations
in active markets/exchanges for identical securities |
| | | Level 2 other observable
inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are
active, quoted prices for identical or similar assets or liabilities in
markets that are not active, inputs other than quoted prices that are
observable for the assets or liabilities (such as interest rates, yield
curves, volatilities, prepayment speeds, loss severities, credit risks and
default rates) or other market-corroborated inputs) |
| | | Level 3 unobservable
inputs based on the best information available in the circumstances, to the extent observable
inputs are not available (including the Trusts own assumptions used in
determining the fair value of investments) |
| | The inputs or methodology used for
valuing securities are not necessarily an indication of the risk associated
with investing in those securities. For information about the Trusts policy
regarding valuation of investments and other significant accounting policies,
please refer to Note 1 of the Notes to Financial Statements. | |
| | The following table
summarizes the inputs used as of July 31, 2009 in determining the fair
valuation of the Trusts investments: | |

| Valuation Inputs | Investments
in Securities |
| --- | --- |
| | Assets |
| Level 1 Short-Term
Securities | $ 1,702,906 |
| Level 2 Long-Term
Investments 1 | 137,969,550 |
| Level 3 | |
| Total | $ 139,672,456 |

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

| See Notes to Financial
Statements. — ANNUAL REPORT | JULY 31, 2009 | 27 |
| --- | --- | --- |

Schedule of Investments July 31, 2009
(Percentages
shown are based on Net Assets)

Municipal Bonds	Par — (000)	Value
New Jersey 138.5%
Corporate 10.4%
New Jersey EDA, RB, Continental Airlines Inc. Project, AMT, 7.00%,
11/15/30	$ 925	$ 689,458
New Jersey EDA, RB, Disposal, Waste Management New Jersey, Series A,
AMT, 5.30%, 6/01/15	500	499,330
		1,188,788
County/City/Special District/School District 10.0%
City of Perth Amboy New Jersey, GO, CAB (FSA), 4.85%, 7/01/34 (a)	100	82,659
Essex County Improvement Authority, Refunding, RB, County Guaranteed,
Project Consolidation (MBIA), 5.50%, 10/01/29	260	277,748
Hudson County Improvement Authority, RB:
CAB, County Guaranteed, Series A-1 (MBIA), 4.49%, 12/15/32 (b)	1,000	233,890
County, Guaranteed, Harrison Parking Facilities Project, Series C (AGC),
5.38%, 1/01/44	340	348,364
Middlesex County Improvement Authority, RB, Subordinate, Heldrich
Center Hotel, Series B, 6.25%, 1/01/37	200	101,972
Salem County Improvement Authority, RB, Finlaw State Office Building
(FSA), 5.25%, 8/15/38	100	102,367
		1,147,000
Education 10.8%
New Jersey Educational Facilities Authority, RB, Montclair State
University, Series J, 5.25%, 7/01/38	100	97,384
New Jersey Educational Facilities Authority, Refunding, RB:
College of New Jersey, Series D (FSA), 5.00%, 7/01/35	380	387,102
Ramapo College, Series I (AMBAC), 4.25%, 7/01/31	250	214,808
Rowan University, Series B (AGC), 5.00%, 7/01/24	255	274,951
Series D, Georgian Court University, 5.00%, 7/01/33	100	86,022
University Medical & Dentistry, Series B, 7.50%, 12/01/32	175	184,942
		1,245,209
Health 27.5%
Burlington County Bridge Commission, RB, The Evergreens Project,
5.63%, 1/01/38	150	101,172
New Jersey EDA, RB, First Mortgage, Lions Gate Project, Series A:
5.75%, 1/01/25	60	49,588
5.88%, 1/01/37	110	81,729
New Jersey EDA, Refunding, RB:
First Mortgage, Winchester, Series A, 5.80%, 11/01/31	1,000	882,910
Seabrook Village Inc. Facilities, 5.25%, 11/15/26	140	107,502
New Jersey Health Care Facilities Financing Authority, RB, CAB, Saint
Barnabas Health, Series B (b):
5.90%, 7/01/30	500	82,540
5.69%, 7/01/36	840	77,154
5.76%, 7/01/37	900	75,447
New Jersey Health Care Facilities Financing Authority, RB:
Hackensack University Medical Center, 6.00%, 1/01/25	1,000	1,003,300
Hospital Asset Transformation Program, Series A, 5.25%, 10/01/38	250	250,522
Meridian Health, Series I (AGC), 5.00%, 7/01/38	100	98,641
Saint Barnabas Health Care System, Series A, 5.00%, 7/01/29	250	194,687
Virtua Health (AGC), 5.50%, 7/01/38	150	149,776
		3,154,968
	Par
Municipal
Bonds	(000)	Value
New Jersey (concluded)
Housing 10.6%
New Jersey State Housing & Mortgage Finance Agency, RB, Series AA:
6.38%, 10/01/28	$ 250	$ 270,898
6.50%, 10/01/38	200	212,750
S/F Housing, Series X, AMT, 4.85%, 4/01/16	500	514,565
Newark Housing Authority, RB, South Ward Police Facility (AGC), 6.75%,
12/01/38	200	213,630
		1,211,843
State 28.3%
New Jersey EDA, RB:
Cigarette Tax (Radian), 5.75%, 6/15/34	1,000	805,850
Newark Downtown District Management Corp., 5.13%, 6/15/37	100	74,141
School Facilities Construction, Series Z (AGC) 5.50%, 12/15/34	500	524,330
School Facilities Construction, Series Z (AGC) 6.00%, 12/15/34	300	326,967
New Jersey EDA, RB, Transportation Project Sublease, Series A (FSA),
5.75%, 5/01/10	900	934,623
New Jersey Transportation Trust Fund Authority, New Jersey, RB,
Transportation System, Series A:
6.00%, 12/15/38	150	160,295
(AGC), 5.63%, 12/15/28	100	106,473
New Jersey EDA, Refunding, RB, School Facilities Construction, Series
AA, 5.50%, 12/15/29	200	211,054
State of New Jersey, COP, Equipment Lease Purchase, Series A, 5.25%,
6/15/28	100	100,376
		3,244,109
Tobacco 1.1%
Tobacco Settlement Financing Corp., New Jersey, RB, Series 1A, 4.50%,
6/01/23	150	128,195
Transportation 29.0%
Delaware River Port Authority Pennsylvania & New Jersey, RB (FSA),
5.75%, 1/01/26	1,000	1,004,200
New Jersey State Turnpike Authority, RB:
Series C (AMBAC), 6.50%, 1/01/16 (c)	785	914,023
Series C-2005 (AMBAC), 6.50%, 1/01/16	160	193,707
Series C-2005 (AMBAC), 6.50%, 1/01/16 (c)	55	69,192
Series E, 5.25%, 1/01/40	300	300,648
New Jersey Transportation Trust Fund Authority, New Jersey, RB,
Transportation System, Series A, 5.88%, 12/15/38	175	185,395
Port Authority of New York & New Jersey, RB, Consolidated, 152nd,
AMT, 5.75%, 11/01/30	250	258,355
South Jersey Transportation Authority, RB, Series A (MBIA), 4.50%,
11/01/35	490	408,302
		3,333,822
Utilities 10.8%
New Jersey EDA, RB, Series A, New Jersey, American Water (AMBAC), AMT,
5.25%, 11/01/32	250	215,167
Passaic Valley Sewage Commissioners, GO, Sewer System, Series E
(AMBAC), 5.75%, 12/01/21	1,000	1,019,770
		1,234,937
Total Municipal Bonds in New Jersey		15,888,871

| See Notes to Financial
Statements. — 28 | ANNUAL REPORT | JULY 31, 2009 |
| --- | --- | --- |

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

| Municipal
Bonds | Par — (000) | Value | |
| --- | --- | --- | --- |
| Puerto Rico 12.5% | | | |
| Education 4.1% | | | |
| Puerto Rico Industrial Tourist Educational Medical & Environmental
Control Facilities Financing Auth, RB, Ana G. Mendez University System
Project, 5.00%, 3/01/26 | $ 600 | $ 467,040 | |
| Housing 2.6% | | | |
| Puerto Rico HFA, RB, Subordinate, Capital Fund Modernization, 5.13%,
12/01/27 | 300 | 300,330 | |
| State 5.8% | | | |
| Puerto Rico Infrastructure Financing Authority, RB, CAB, Series A
(AMBAC), 4.36%, 7/01/37 (b) | 795 | 90,384 | |
| Puerto Rico Public Buildings Authority, Refunding, RB, Government
Facilities, M-3 (MBIA), 6.00%, 7/01/27 | 215 | 212,663 | |
| Puerto Rico Sales Tax Financing Corp., RB, First Sub-Series A, 5.75%,
8/01/37 | 365 | 360,992 | |
| | | 664,039 | |
| Total Municipal Bonds in Puerto Rico | | 1,431,409 | |
| Total Municipal Bonds 151.0% | | 17,320,280 | |
| Municipal Bonds Transferred to Tender Option Bond Trusts (d) | | | |
| Transportation 2.0% | | | |
| Port Authority of New York & New Jersey, Refunding, RB,
Consolidated 152nd, AMT, 5.25%, 11/01/35 | 240 | 234,875 | |
| Total Municipal Bonds Transferred to Tender Option
Bond Trusts 2.0% | | 234,875 | |
| Total Long-Term Investments (Cost $18,894,931)
153.0% | | 17,555,155 | |
| Short-Term
Securities | Shares | | |
| CMA New Jersey Municipal Money Fund, 0.07% (e)(f) | 819,689 | 819,689 | |
| Total Short-Term Securities (Cost $819,689) 7.1% | | 819,689 | |
| Total Investments (Cost $19,714,620*) 160.1% | | 18,374,844 | |
| Other Assets Less Liabilities 1.4% | | 160,115 | |
| Liability for Trust Certificates, Including Interest
Expense and Fees Payable (1.4)% | | (159,981 | ) |
| Preferred Shares, at Redemption Value (60.1)% | | (6,900,547 | ) |
| Net Assets Applicable to Common Shares 100.0% | | $ 11,474,431 | |

The cost and unrealized appreciation (depreciation) of investments as of July 31, 2009, as computed for federal income tax purposes, were as follows:

Aggregate cost	$
Gross unrealized
appreciation	$ 513,817
Gross unrealized
depreciation	(1,841,356	)
Net unrealized depreciation	$ (1,327,539	)

| (a) | Represents a step-up bond
that pays an initial coupon rate for the first period and then a higher
coupon rate for the following periods. Rate shown is as of report date. |
| --- | --- |
| (b) | Represents a zero-coupon
bond. Rate shown reflects the current yield as of report date. |
| (c) | Security is collateralized
by Municipal or US Treasury Obligations. |
| (d) | Securities represent bonds
transferred to a tender option bond trust in exchange for which the Trust
acquired residual interest certificates. These securities serve as collateral
in a financing transaction. See Note 1 of the Notes to Financial Statements
for details of municipal bonds transferred to tender option bond trusts. |
| (e) | Investments in companies
considered to be an affiliate of the Trust, for purposes of Section 2(a)(3)
of the Investment Company Act of 1940, were as follows: |

Affiliate	Net — Activity	Income
CMA New Jersey Municipal
Money Fund	403,358	$6,120

| (f) | Represents the current
yield as of report date. | |
| --- | --- | --- |
| | Effective August
1, 2008, the Trust adopted Financial Accounting Standards Board Statement of Financial Accounting Standards
No. 157, Fair Value Measurements (FAS 157). FAS 157 clarifies the
definition of fair value, establishes a framework for measuring fair values
and requires additional disclosures about the use of fair value measurements.
Various inputs are used in determining the fair value of investments, which
are as follows: | |
| | | Level 1 price quotations
in active markets/exchanges for identical securities |
| | | Level 2 other observable
inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are
active, quoted prices for identical or similar assets or liabilities in
markets that are not active, inputs other than quoted prices that are
observable for the assets or liabilities (such as interest rates, yield
curves, volatilities, prepayment speeds, loss severities, credit risks and
default rates) or other market-corroborated inputs) |
| | | Level 3 unobservable
inputs based on the best information available in the circumstances, to the extent observable
inputs are not available (including the Trusts own assumptions used in
determining the fair value of investments) |

The following table summarizes the inputs used as of July 31, 2009 in determining the fair valuation of the Trusts investments:

| | Investments
in |
| --- | --- |
| Valuation Inputs | Securities |
| | Assets |
| Level 1 Short-Term
Securities | $ 819,689 |
| Level 2 Long-Term
Investments 1 | 17,555,155 |
| Level 3 | |
| Total | $ 18,374,844 |

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

| See Notes to Financial
Statements. — ANNUAL REPORT | JULY 31, 2009 | 29 |
| --- | --- | --- |

Schedule of Investments July 31, 2009
(Percentages
shown are based on Net Assets)

| Municipal
Bonds | Par — (000) | Value |
| --- | --- | --- |
| New Jersey 122.4% | | |
| Corporate 6.3% | | |
| New Jersey EDA, RB, Continental Airlines Inc. Project, AMT: | | |
| 7.00%, 11/15/30 | $ 3,450 | $ 2,571,492 |
| 7.20%, 11/15/30 | 2,000 | 1,525,980 |
| New Jersey EDA, RB, Disposal, Waste Management New Jersey, Series A,
AMT, 5.30%, 6/01/15 | 2,000 | 1,997,320 |
| | | 6,094,792 |
| County/City/Special District/School District 14.2% | | |
| City of Perth Amboy New Jersey, GO, CAB (FSA) (a): | | |
| 4.91%, 7/01/34 | 1,075 | 888,584 |
| 4.92%, 7/01/35 | 175 | 143,820 |
| City of Vineland New Jersey, GO, Electric Utility (MBIA), AMT: | | |
| 5.30%, 5/15/30 | 1,500 | 1,410,465 |
| 5.38%, 5/15/31 | 1,500 | 1,414,500 |
| Essex County Improvement Authority, Refunding, RB, County Guaranteed,
Project Consolidation (MBIA), 5.50%, 10/01/29 | 2,630 | 2,809,524 |
| Hudson County Improvement Authority, RB, County, Guaranteed, Harrison
Parking Facilities Project, Series C (AGC), 5.38%, 1/01/44 | 2,400 | 2,459,040 |
| Middlesex County Improvement Authority, RB, Subordinate, Heldrich
Center Hotel, Series B, 6.25%, 1/01/37 | 1,790 | 912,649 |
| Newark Housing Authority, Refunding RB, Additional, Newark
Redevelopment Project (MBIA), 4.38%, 1/01/37 | 2,625 | 2,247,578 |
| Salem County Improvement Authority, RB, Finlaw State Office Building
(FSA), 5.25%, 8/15/38 | 225 | 230,326 |
| Trenton Parking Authority, Refunding RB (MBIA), 5.00%, 4/01/30 | 1,440 | 1,228,147 |
| | | 13,744,633 |
| Education 13.1% | | |
| New Jersey EDA, Refunding, RB, School Facilities Construction, Series
AA, 5.50%, 12/15/29 | 2,000 | 2,110,540 |
| New Jersey Educational Facilities Authority, RB, Georgian Court
College Project, Series C, 6.50%, 7/01/13 (b) | 2,120 | 2,535,117 |
| New Jersey Educational Facilities Authority, RB, Montclair State
University, Series J, 5.25%, 7/01/38 | 580 | 564,827 |
| New Jersey Educational Facilities Authority, Refunding RB: | | |
| College of New Jersey, Series D (FSA), 5.00%, 7/01/35 | 3,230 | 3,290,369 |
| Fairleigh Dickinson, Series C, 6.00%, 7/01/20 | 2,000 | 2,017,640 |
| Georgian Court University, Series D, 5.00%, 7/01/33 | 250 | 215,055 |
| Ramapo College, Series I (AMBAC), 4.25%, 7/01/31 | 500 | 429,615 |
| University Medical & Dentistry, Series B, 7.50%, 12/01/32 | 1,450 | 1,532,375 |
| | | 12,695,538 |
| Health 34.8% | | |
| Burlington County Bridge Commission, RB, The Evergreens Project,
5.63%, 1/01/38 | 1,000 | 674,480 |
| City of Newark New Jersey, RB, New Community Urban Renewal, Series A
(GNMA), 5.20%, 6/01/30 | 1,830 | 1,791,131 |
| New Jersey EDA, RB, First Mortgage, Lions Gate Project, Series A: | | |
| 5.75%, 1/01/25 | 500 | 413,235 |
| 5.88%, 1/01/37 | 855 | 635,256 |
| New Jersey EDA, RB, Masonic Charity Foundation Project, 5.50%, 6/01/31 | 2,000 | 1,847,020 |
| | Par | |
| Municipal
Bonds | (000) | Value |
| New Jersey (continued) | | |
| Health (concluded) | | |
| New Jersey EDA, Refunding RB: | | |
| First Mortgage, Winchester, Series A, 5.75%, 11/01/24 | $ 4,050 | $ 3,721,707 |
| Seabrook Village Inc. Facilities, 5.25%, 11/15/26 | 1,790 | 1,374,487 |
| New Jersey Health Care Facilities Financing Authority, RB, CAB, Saint
Barnabas Health, Series B (c): | | |
| 5.90%, 7/01/30 | 2,500 | 412,700 |
| 5.69%, 7/01/36 | 7,700 | 707,245 |
| 5.76%, 7/01/37 | 7,250 | 607,767 |
| New Jersey Health Care Facilities Financing Authority, RB: | | |
| Atlantic City Medical Center, 5.75%, 7/01/25 | 1,255 | 1,269,671 |
| Health System, Catholic Health East, Series A, 5.38%, 11/15/12 (b) | 3,000 | 3,401,100 |
| Hospital Asset Transformation Program, Series A, 5.25%, 10/01/38 | 2,250 | 2,254,702 |
| Kennedy Health System, 5.63%, 7/01/31 | 2,130 | 2,068,549 |
| Meridian Health, Series I (AGC), 5.00%, 7/01/38 | 750 | 739,807 |
| Saint Barnabas Health Care System, Series A, 5.00%, 7/01/29 | 750 | 584,062 |
| South Jersey Hospital, 6.00%, 7/01/12 (b) | 7,460 | 8,490,151 |
| South Jersey Hospital, 5.00%, 7/01/46 | 1,650 | 1,394,217 |
| Virtua Health (AGC), 5.50%, 7/01/38 | 1,250 | 1,248,137 |
| | | 33,635,424 |
| Housing 15.3% | | |
| Middlesex County Improvement Authority, RB (FNMA), AMT: | | |
| Administration Building Residential Project, 5.35%, 7/01/34 | 1,400 | 1,382,850 |
| New Brunswick Apartments Rental Housing, 5.30%, 8/01/35 | 4,375 | 4,242,962 |
| New Jersey State Housing & Mortgage Finance Agency, RB, Series AA: | | |
| 6.38%, 10/01/28 | 1,500 | 1,625,385 |
| 6.50%, 10/01/38 | 2,470 | 2,627,462 |
| New Jersey State Housing & Mortgage Finance Agency, RB, S/F
Housing, AMT: | | |
| Series T, 4.70%, 10/01/37 | 700 | 603,148 |
| Series X, 4.85%, 4/01/16 | 1,750 | 1,800,978 |
| Newark Housing Authority, RB, South Ward Police Facility (AGC): | | |
| 5.75%, 12/01/30 | 580 | 585,348 |
| 6.75%, 12/01/38 | 1,850 | 1,976,078 |
| | | 14,844,211 |
| State 23.3% | | |
| Garden State Preservation Trust, RB, CAB, Series B (FSA), 5.22%,
11/01/26 (c) | 6,000 | 2,578,200 |
| New Jersey EDA, RB: | | |
| Cigarette Tax (Radian), 5.75%, 6/15/34 | 5,000 | 4,029,250 |
| Kapkowski Road Landfill, Series B, AMT, 6.50%, 4/01/31 | 5,000 | 3,744,550 |
| School Facilities Construction, Series Z (AGC), 5.50%, 12/15/34 | 3,000 | 3,145,980 |
| School Facilities Construction, Series Z (AGC), 6.00%, 12/15/34 | 3,000 | 3,269,670 |
| New Jersey EDA, Special Assessment, Refunding, Kapkowski Road Landfill
Project, 6.50%, 4/01/28 | 2,500 | 2,012,000 |
| New Jersey Transportation Trust Fund Authority, New Jersey, RB, CAB,
Transportation System, Series C (FSA), 4.84%, 12/15/32 (c) | 4,000 | 935,560 |

| See Notes to Financial
Statements. — 30 | ANNUAL REPORT | JULY 31, 2009 |
| --- | --- | --- |

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

| Municipal
Bonds | Par — (000) | Value | |
| --- | --- | --- | --- |
| New Jersey (concluded) | | | |
| State (concluded) | | | |
| New Jersey Transportation Trust Fund Authority, New Jersey, RB,
Transportation System, Series A: | | | |
| 6.00%, 12/15/38 | $ 1,450 | $ 1,549,514 | |
| (AGC), 5.63%, 12/15/28 | 670 | 713,369 | |
| State of New Jersey, COP, Equipment Lease Purchase, Series A, 5.25%,
6/15/28 | 600 | 602,256 | |
| | | 22,580,349 | |
| Tobacco 1.3% | | | |
| Tobacco Settlement Financing Corp., New Jersey, RB: | | | |
| CAB, Series 1B, 5.65%, 6/01/41 (c) | 3,300 | 143,319 | |
| Series 1A, 4.50%, 6/01/23 | 1,255 | 1,072,561 | |
| | | 1,215,880 | |
| Transportation 13.6% | | | |
| New Jersey State Turnpike Authority, RB, Series E, 5.25%, 1/01/40 | 3,205 | 3,211,923 | |
| New Jersey Transportation Trust Fund Authority, New Jersey, RB,
Transportation System, Series A: | | | |
| 5.88%, 12/15/38 | 1,465 | 1,552,021 | |
| (AGC), 5.50%, 12/15/38 | 1,000 | 1,046,130 | |
| Port Authority of New York & New Jersey, RB, Consolidated, 152nd,
AMT, 5.75%, 11/01/30 | 1,750 | 1,808,485 | |
| Port Authority of New York & New Jersey, RB, Special Project, JFK
International Air Terminal 6 (MBIA), AMT, 5.75%, 12/01/22 | 6,000 | 5,492,040 | |
| | | 13,110,599 | |
| Utilities 0.5% | | | |
| Rahway Valley Sewerage Authority, RB, CAB, Series A (MBIA), 4.39%,
9/01/33 (c) | 2,000 | 479,600 | |
| Total Municipal Bonds in New Jersey | | 118,401,026 | |
| Multi-State (d)(e) 6.5% | | | |
| Housing 6.5% | | | |
| Charter Mac Equity Issuer Trust, 6.80%, 11/30/50 | 2,500 | 2,582,450 | |
| MuniMae TE Bond Subsidiary LLC: | | | |
| 6.30%, 6/30/49 | 3,000 | 2,429,940 | |
| 6.80%, 6/30/50 | 2,000 | 1,299,540 | |
| Total Municipal Bonds in Multi-State | | 6,311,930 | |
| | Par | | |
| Municipal
Bonds | (000) | Value | |
| Puerto Rico 19.5% | | | |
| Housing 7.8% | | | |
| Puerto Rico HFA, RB, Subordinate, Capital Fund Modernization, 5.13%,
12/01/27 | $ 2,500 | $ 2,502,750 | |
| Puerto Rico Housing Finance Corp., RB, Mortgage Backed Securities,
Series A (GNMA): | | | |
| Series A, 5.20%, 12/01/33 | 2,550 | 2,554,616 | |
| Series B, AMT, 5.30%, 12/01/28 | 2,545 | 2,529,577 | |
| | | 7,586,943 | |
| State 9.5% | | | |
| Puerto Rico Infrastructure Financing Authority, RB, CAB, Series A
(AMBAC), 4.36%, 7/01/37 (c) | 6,000 | 682,140 | |
| Puerto Rico Public Buildings Authority, RB, CAB, Series D (AMBAC) (a): | | | |
| 5.44%, 7/01/31 | 1,335 | 988,848 | |
| 5.44%, 7/01/31 (b) | 3,665 | 3,617,868 | |
| Puerto Rico Public Buildings Authority, Refunding RB, Government
Facilities, Series M-3 (MBIA), 6.00%, 7/01/27 | 850 | 840,761 | |
| Puerto Rico Sales Tax Financing Corp., RB, First Sub-Series A, 5.75%,
8/01/37 | 3,075 | 3,041,237 | |
| | | 9,170,854 | |
| Transportation 2.2% | | | |
| Puerto Rico Highway & Transportation Authority, Refunding RB,
Series CC (AGC), 5.50%, 7/01/31 | 2,000 | 2,091,220 | |
| Total Municipal Bonds in Puerto Rico | | 18,849,017 | |
| Total Municipal Bonds 148.4% | | 143,561,973 | |
| Municipal Bonds Transferred to Tender Option Bond Trusts (f) | | | |
| Transportation 2.1% | | | |
| Port Authority of New York & New Jersey, Refunding RB,
Consolidated 152nd, AMT, 5.25%, 11/01/35 | 2,039 | 1,996,436 | |
| Total Municipal Bonds Transferred to Tender Option
Bond Trusts 2.1% | | 1,996,436 | |
| Total Long-Term Investments (Cost $156,032,143)
150.5% | | 145,558,409 | |
| Short-Term
Securities | Shares | | |
| CMA New Jersey Municipal Money Fund, 0.07% (g)(h) | 10,639,704 | 10,639,704 | |
| Total
Short-Term Securities (Cost $10,639,704) 11.0% | | 10,639,704 | |
| Total Investments (Cost $166,671,847*) 161.5% | | 156,198,113 | |
| Other Assets Less Liabilities 1.0% | | 960,589 | |
| Liability for Trust Certificates, Including Interest
Expense and Fees Payable (1.4)% | | (1,359,845 | ) |
| Preferred Shares, at Redemption Value (61.1)% | | (59,102,821 | ) |
| Net Assets Applicable to Common Shares 100.0% | | $ 96,696,036 | |

| See Notes to Financial
Statements. — ANNUAL REPORT | JULY 31, 2009 | 31 |
| --- | --- | --- |

Schedule of Investments (concluded) BlackRock New Jersey Municipal Income Trust (BNJ)

The cost and unrealized appreciation (depreciation) of investments as of July 31, 2009, as computed for federal income tax purposes, were as follows:

Aggregate cost	$
Gross unrealized
appreciation	$ 4,473,259
Gross unrealized
depreciation	(14,292,025	)
Net unrealized depreciation	$ (9,818,766	)

| (a) | Represents a step-up bond
that pays an initial coupon rate for the first period and then a higher
coupon rate for the following periods. Rate shown reflects the current yield
as of report date. |
| --- | --- |
| (b) | US government securities,
held in escrow, are used to pay interest on this security, as well as to
retire the bond in full at the date indicated, typically at a premium to par. |
| (c) | Represents a zero-coupon
bond. Rate shown reflects the current yield as of report date. |
| (d) | Security exempt from
registration under Rule 144A of the Securities Act of 1933. These securities
may be resold in transactions exempt from registration to qualified
institutional investors. |
| (e) | Security represents a
beneficial interest in a trust. The collateral deposited into the trust is
federally tax-exempt revenue bonds issued by various state or local
governments, or their respective agencies or authorities. The security is
subject to remarketing prior to its stated maturity, and is subject to
mandatory redemption at maturity. |
| (f) | Securities represent bonds
transferred to a tender option bond trust in exchange for which the Trust
acquired residual interest certificates. These securities serve as collateral
in a financing transaction. See Note 1 of the Notes to Financial Statements
for details of municipal bonds transferred to tender option bond trusts. |
| (g) | Investments in companies
considered to be an affiliate of the Trust, for purposes of Section 2(a)(3)
of the Investment Company Act of 1940, were as follows: |

Affiliate	Net — Activity	Income
CMA New Jersey Municipal
Money Fund	9,141,934	$68,437

| (h) | Represents the current
yield as of report date. | |
| --- | --- | --- |
| | Effective August
1, 2008, the Trust adopted Financial Accounting Standards Board Statement of Financial Accounting Standards
No. 157, Fair Value Measurements (FAS 157). FAS 157 clarifies the
definition of fair value, establishes a framework for measuring fair values
and requires additional disclosures about the use of fair value measurements.
Various inputs are used in determining the fair value of investments, which
are as follows: | |
| | | Level 1 price quotations
in active markets/exchanges for identical securities |
| | | Level 2 other observable
inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are
active, quoted prices for identical or similar assets or liabilities in
markets that are not active, inputs other than quoted prices that are
observable for the assets or liabilities (such as interest rates, yield
curves, volatilities, prepayment speeds, loss severities, credit risks and
default rates) or other market-corroborated inputs) |
| | | Level 3 unobservable
inputs based on the best information available in the circumstances, to the extent observable
inputs are not available (including the Trusts own assumptions used in
determining the fair value of investments) |

The following table summarizes the inputs used as of July 31, 2009 in determining the fair valuation of the Trusts investments:

| | Investments
in |
| --- | --- |
| Valuation Inputs | Securities |
| | Assets |
| Level 1 Short-Term
Investments | $ 10,639,704 |
| Level 2 Long-Term
Investments 1 | 145,558,409 |
| Level 3 | |
| Total | $ 156,198,113 |

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

| See Notes to Financial
Statements. — 32 | ANNUAL REPORT | JULY 31, 2009 |
| --- | --- | --- |

Schedule of Investments July 31, 2009
(Percentages
shown are based on Net Assets)

Municipal Bonds	Par (000)	Value
New York 141.1%
Corporate 14.7%
Essex County Industrial Development Agency, New York, RB,
International Paper Co. Project, Series A, AMT, 6.63%, 9/01/32	$ 100	$ 89,079
New York City Industrial Development Agency, RB:
American Airlines, JFK International Airport, AMT, 7.63%, 8/01/25	950	746,510
American Airlines, JFK International Airport, AMT, 7.75%, 8/01/31	300	229,740
Liberty, Interactive Corp., 5.00%, 9/01/35	500	310,735
New York Liberty Development Corp., RB, Goldman Sachs Headquarters,
5.50%, 10/01/37	200	194,542
Port Authority of New York & New Jersey, RB, Continental, Eastern
Project, LaGuardia, AMT, 9.13%, 12/01/15	905	905,281
		2,475,887
County/City/Special District/School District 39.0%
City of New York New York, GO:
Series A, 6.00%, 5/15/10 (a)	500	527,100
Series A, 6.00%, 5/15/30	10	10,189
Sub-Series J-1, 4.50%, 5/15/30	125	118,799
Haverstraw-Stony Point Central School District, New York, GO (FSA),
3.00%, 10/15/26	250	193,720
Hudson Yards Infrastructure Corp., RB, Series A:
(FGIC), 5.00%, 2/15/47	100	85,417
(MBIA), 4.50%, 2/15/47	75	59,498
New York City Industrial Development Agency, RB, Queens Baseball Stadium,
PILOT:
(AGC), 6.38%, 1/01/39	100	108,656
(AMBAC), 5.00%, 1/01/39	250	209,922
(AMBAC), 5.00%, 1/01/46	400	327,512
New York City Transitional Finance Authority, RB:
Fiscal 2008, Series S-1, 4.50%, 1/15/38	100	89,524
Fiscal 2009, Series S-3, 5.25%, 1/15/39	150	149,772
Future Tax Secured, Series B, 6.00%, 5/15/10 (a)	1,815	1,913,373
New York Convention Center Operating Corp., RB, Hotel Unit Fee Secured
(AMBAC), 5.00%, 11/15/44	850	731,569
Sales Tax Asset Receivable Corp., RB, Series A (AMBAC), 5.00%,
10/15/32	2,000	2,033,740
		6,558,791
Education 25.5%
Albany Industrial Development Agency, RB, New Covenant Charter School
Project, Series A:
7.00%, 5/01/25	95	63,886
7.00%, 5/01/35	60	37,405
Madison County Industrial Development Agency, New York, RB, Colgate
University Project, Series B, 5.00%, 7/01/23	2,000	2,063,360
New York City Industrial Development Agency, RB, Polytechnic University
Project (ACA), 5.25%, 11/01/37	100	78,670
New York City Trust for Cultural Resources, RB, Juilliard School,
Series A, 5.00%, 1/01/39	250	254,120
New York Liberty Development Corp., RB, National Sports Museum
Project, Series A, 6.13%, 2/15/19 (b)(c)	175	175
New York State Dormitory Authority, RB:
5.83%, 7/01/39 (d)	175	130,779
Brooklyn Law School, Refunding, 5.75%, 7/01/33	75	74,706
Insured, Manhattan College, Series B (Radian), 5.30%, 7/01/37	150	123,953
NY University, Insured, Series 1 (AMBAC), 5.50%, 7/01/40	250	275,223
Rochester Institute Technology, Series A, 6.00%, 7/01/33	175	183,607
Teachers College, 5.50%, 3/01/39	200	201,694

Municipal Bonds	Par (000)	Value
New York (concluded)
Education (concluded)
New York State Dormitory Authority, RB: (concluded)
University Rochester, Series A, 5.13%, 7/01/39	$ 215	$ 212,235
Yeshiva University, 5.00%, 9/01/38	75	73,532
Schenectady Industrial Development Agency, Refunding RB, Union College
Project, 5.00%, 7/01/31	500	504,340
		4,277,685
Health 17.8%
Genesee County Industrial Development Agency, New York, RB, United
Memorial Medical Center Project, 5.00%, 12/01/27	100	66,931
New York State Dormitory Authority, RB:
Hospital (FHA), Insured Mortgage, Lutheran Medical Center, 5.00%,
8/01/31	250	247,368
Hudson Valley Hospital (FSA), 5.00%, 8/15/36	150	151,083
Kateri Residence, 5.00%, 7/01/22	1,000	1,013,430
Mount Sinai Health, Series A, 6.50%, 7/01/25	1,000	1,018,720
NY & Presbyterian Hospital (FHA), 5.25%, 2/15/31	100	101,455
NYS Association for Retarded Children, Inc., Series A, 6.00%, 7/01/32	75	75,162
NYU Hospital Center, Series B, 5.63%, 7/01/37	150	134,243
Saratoga County Industrial Development Agency, New York, RB, Saratoga
Hospital Project, Series B, 5.25%, 12/01/32	100	83,616
Suffolk County Industrial Development Agency, New York, Refunding RB,
Jeffersons Ferry Project, 5.00%, 11/01/28	115	93,480
		2,985,488
Housing 10.7%
New York City Housing Development Corp., RB:
Series A (GNMA), 5.25%, 5/01/30	1,000	1,006,590
Series B-1, AMT, 5.15%, 11/01/37	250	236,137
Series J-2, Series A, Remarketed, AMT, 4.75%, 11/01/27	500	463,630
New York Mortgage Agency, New York, RB, Series 143, AMT, 4.90%,
10/01/37	100	88,495
		1,794,852
State 10.0%
New York State Dormitory Authority, RB:
Education, Series B, 5.75%, 3/15/36	150	161,229
Municipal Health Facilities, Lease, Sub-Series 2-4, 4.75%, 1/15/30	300	285,291
State of New York, GO, Series A, 5.00%, 2/15/39	125	126,416
State University Educational Facilities, Series A (AMBAC), 5.25%,
5/15/15	1,005	1,101,520
		1,674,456
Transportation 5.3%
Metropolitan Transportation Authority, RB:
Series 2008C, 6.50%, 11/15/28	250	276,982
Series B, 5.00%, 11/15/34	250	245,335
Series B, 4.50%, 11/15/37	250	216,570
Triborough Bridge & Tunnel Authority, New York, RB, General
Purpose, Series A (MBIA), 5.00%, 1/01/32	155	155,343
		894,230
Utilities 18.1%
Albany Municipal Water Finance Authority, RB, Series B (MBIA), 5.00%,
12/01/33	1,000	928,240
Long Island Power Authority, RB, Series A, 6.25%, 4/01/33	100	110,613
New York City Municipal Water Finance Authority, RB:
Series B (FSA), 5.00%, 6/15/36	1,000	998,470
Series C, 5.13%, 6/15/33	1,000	1,008,570
		3,045,893
Total Municipal Bonds in New York		23,707,282

| See Notes to Financial
Statements. — ANNUAL REPORT | JULY 31, 2009 | 33 |
| --- | --- | --- |

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

Municipal Bonds	Par (000)	Value
Guam 2.5%
County/City/Special
District/School District 0.7%
Territory of Guam, RB,
Section 30, Series A, 5.75%, 12/01/34	$ 120	$ 117,637
State
0.6%
Territory of Guam, GO,
Series A, 7.00%, 11/15/39	100	99,611
Tobacco
0.4%
Guam Economic Development & Commerce Authority, RB, Tobacco
Settlement Asset Backed, 5.63%, 6/01/47	100	70,774
Utilities
0.8%
Guam Government Waterworks
Authority, RB, Water, 5.88%, 7/01/35	150	131,710
Total
Municipal Bonds in Guam		419,732
Puerto Rico 10.7%
Education
3.7%
Puerto Rico Industrial, Tourist, Educational, Medical &
Environmental Control Facilities Financing Auth, RB, Ana G. Mendez University
System Project, 5.00%, 3/01/26	800	622,720
State 4.9%
Commonwealth of Puerto Rico, GO, Refunding, Sub-Series C-7 (MBIA),
6.00%, 7/01/28	250	247,200
Puerto Rico Infrastructure Financing Authority, RB, CAB, Series A
(AMBAC), 5.00%, 7/01/44 (e)	395	26,386
Puerto Rico Public Finance Corp., RB, Commonwealth Appropriation, E,
5.50%, 2/01/12 (a)	495	545,074
		818,660
Tobacco 2.1%
Childrens Trust Fund, RB, Asset Backed Bonds, 5.63%, 5/15/43	500	355,870
Total Municipal Bonds in Puerto Rico		1,797,250
Total Municipal Bonds 154.3%		25,924,264
Municipal Bonds Transferred to Tender Option Bond Trusts (f)
New York 0.7%
Utilities 0.7%
New York City Municipal Water Finance Authority, RB, Fiscal 2009,
Series A, 5.75%, 6/15/40	105	112,458
Total
Municipal Bonds Transferred to
Tender Option Bond Trusts 0.7%		112,458
Total
Long-Term Investments (Cost $27,097,477) 155.0%		26,036,722
Short-Term
Securities	Shares
CMA New York Municipal Money Fund, 0.04% (g)(h)	317,150	317,150
Total
Short-Term Securities (Cost $317,150) 1.9%		317,150
Total
Investments (Cost $27,414,627*) 156.9%		26,353,872
Other
Assets Less Liabilities 1.4%		238,209
Liability for Trust Certificates, Including Interest Expense and Fees Payable (0.4)%		(69,991	)
Preferred
Shares, at Redemption Value (57.9)%		(9,725,966	)
Net Assets
Applicable to Common Shares 100.0%		$ 16,796,124

The cost and unrealized appreciation (depreciation) of investments as of July 31, 2009, as computed for federal income tax purposes, were as follows:

Aggregate cost	$
Gross unrealized
appreciation	$ 651,952
Gross unrealized
depreciation	(1,715,275	)
Net unrealized depreciation	$ (1,063,323	)

| (a) | US government securities,
held in escrow, are used to pay interest on this security as well as to
retire the bond in full at the date indicated, typically at a premium to par. |
| --- | --- |
| (b) | Non-income producing
security. |
| (c) | Issuer filed for bankruptcy
and/or is in default of interest payments. |
| (d) | Represents a step-up bond
that pays an initial coupon rate for the first period and a higher coupon
rate for the following periods. Rate shown is as of report date. |
| (e) | Represents a zero-coupon
bond. Rate shown reflects the current yield as of report date. |
| (f) | Securities represent bonds
transferred to a tender option bond trust in exchange for which the Trust
acquired the residual interest certificates. These securities serve as
collateral in a financing transaction. See Note 1 of the Notes to Financial
Statements for details of municipal bonds transferred to tender option bond
trusts. |
| (g) | Investments in companies
considered to be an affiliate of the Trust, for purposes of Section 2(a)(3)
of the Investment Company Act of 1940, were as follows: |

Affiliate	Net Activity	Income
CMA New York Municipal
Money Fund	103,914	$ 4,035

| (h) | Represents the current
yield as of report date. | |
| --- | --- | --- |
| | Effective August
1, 2008, the Trust adopted Financial Accounting Standards Board Statement of Financial Accounting Standards
No. 157, Fair Value Measurements (FAS 157). FAS 157 clarifies the
definition of fair value, establishes a framework for measuring fair values
and requires additional disclosures about the use of fair value measurements.
Various inputs are used in determining the fair value of investments, which
are as follows: | |
| | | Level 1 price quotations
in active markets/exchanges for identical securities |
| | | Level 2 other observable
inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are
active, quoted prices for identical or similar assets or liabilities in
markets that are not active, inputs other than quoted prices that are
observable for the assets or liabilities (such as interest rates, yield
curves, volatilities, prepayment speeds, loss severities, credit risks and
default rates) or other market-corroborated inputs) |
| | | Level 3 unobservable
inputs based on the best information available in the circumstances, to the extent observable
inputs are not available (including the Trusts own assumptions used in
determining the fair value of investments) |

The following table summarizes the inputs used as of July 31, 2009 in determining the fair valuation of the Trusts investments:

| Valuation Inputs | Investments
in Securities |
| --- | --- |
| | Assets |
| Level 1 Short-Term
Investments | $ 317,150 |
| Level 2 Long-Term
Investments 1 | 26,036,722 |
| Level 3 | |
| Total | $ 26,353,872 |

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

| See Notes to Financial
Statements. — 34 | ANNUAL REPORT | JULY 31, 2009 |
| --- | --- | --- |

Schedule of Investments July 31, 2009
(Percentages
shown are based on Net Assets)

Municipal Bonds	Par (000)	Value
New York 124.0%
Corporate 17.6%
Essex County Industrial Development Agency, New York, RB,
International Paper Co. Project, Series A, AMT, 6.63%, 9/01/32	$ 550	$ 489,934
New York City Industrial Development Agency, RB, American Airlines,
JFK International Airport, AMT:
7.63%, 8/01/25	3,200	2,514,560
7.75%, 8/01/31	4,000	3,063,200
Liberty, Interactive Corp., 5.00%, 9/01/35	2,000	1,242,940
New York Liberty Development Corp., RB, Goldman Sachs Headquarters,
5.25%, 10/01/35	7,000	6,580,980
Port Authority of New York & New Jersey, RB, Continental, Eastern
Project, LaGuardia, AMT, 9.13%, 12/01/15	8,340	8,342,585
Suffolk County Industrial Development Agency, New York, RB, Keyspan,
Port Jefferson, AMT, 5.25%, 6/01/27	7,000	6,294,820
		28,529,019
County/City/Special District/School District 23.6%
City of New York New York, GO:
Series A-1, 4.75%, 8/15/25	750	756,570
Series C, 5.38%, 3/15/12 (a)	6,000	6,696,900
Series D, 5.38%, 6/01/12 (a)	2,200	2,475,440
Series D, 5.38%, 6/01/32	4,000	4,048,360
Sub-Series G-1, 6.25%, 12/15/31	500	553,375
Sub-Series I-1, 5.38%, 4/01/36	1,750	1,802,395
Sub-Series J-1, 4.50%, 5/15/30	1,000	950,390
Hudson Yards Infrastructure Corp., RB, Series A:
5.00%, 2/15/47	1,000	854,170
(MBIA), 4.50%, 2/15/47	1,750	1,388,292
New York City Industrial Development Agency, RB:
Marymount School of NY Project (ACA), 5.13%, 9/01/21	750	723,450
Marymount School of NY Project (ACA), 5.25%, 9/01/31	2,000	1,721,480
Queens Baseball Stadium, PILOT (AGC), 6.38%, 1/01/39	150	162,984
Queens Baseball Stadium, PILOT (AMBAC), 5.00%, 1/01/36	4,900	4,162,795
Queens Baseball Stadium, PILOT (AMBAC), 5.00%, 1/01/46	250	204,695
Royal Charter, NY Presbyterian (FSA), 5.25%, 12/15/32	1,550	1,537,941
Yankee Stadium, PILOT (MBIA), 5.00%, 3/01/36	250	212,293
New York City Transitional Finance Authority, RB:
Fiscal 2008, Series S-1, 4.50%, 1/15/38	750	671,430
Fiscal 2009, Series S-3, 5.25%, 1/15/39	650	649,012
Series S-2 (MBIA), 4.25%, 1/15/34	1,700	1,443,249
New York Convention Center Operating Corp., RB, Hotel Unit Fee Secured
(AMBAC), 5.00%, 11/15/44	8,410	7,238,235
		38,253,456
Education 21.4%
Albany Industrial Development Agency, RB, New Covenant Charter School
Project, Series A:
7.00%, 5/01/25	910	611,957
7.00%, 5/01/35	590	367,818
Dutchess County Industrial Development Agency, New York, RB, Bard
College Civic Facility, Series A-2, 4.50%, 8/01/36	7,000	4,877,250

Municipal Bonds	Par (000)	Value
New York (continued)
Education (concluded)
Madison County Industrial Development Agency, New York, RB:
Colgate University Project, Series B, 5.00%, 7/01/33	$ 2,000	$ 2,002,740
Commons II LLC, Student Housing, Series A (CIFG), 5.00%, 6/01/33	275	230,280
New York City Industrial Development Agency, RB, Polytechnic
University Project (ACA), 5.25%, 11/01/37	2,400	1,888,080
New York City Trust for Cultural Resources, RB, Juilliard School,
Series A, 5.00%, 1/01/39	2,100	2,134,608
New York Liberty Development Corp., RB, National Sports Museum
Project, Series A, 6.13%, 2/15/19 (b)(c)	1,740	1,740
New York State Dormitory Authority, RB:
5.83%, 7/01/39 (d)	750	560,483
Brooklyn Law School, Refunding, 5.75%, 7/01/33	475	473,138
Insured, Manhattan College, Series B (Radian), 5.30%, 7/01/37	500	413,175
Insured, New School University (MBIA), 5.00%, 7/01/41	9,000	8,377,200
Insured, New York University, Series 2 (AMBAC), 5.00%, 7/01/41	5,000	4,952,550
Mount Sinai School Medical New York University (MBIA), 5.00%, 7/01/35	1,000	953,880
Rochester Institute Technology, Series A, 6.00%, 7/01/33	1,000	1,049,180
Teachers College, 5.50%, 3/01/39	450	453,812
University Rochester, Series A, 5.13%, 7/01/39	850	839,069
Yeshiva University, 5.00%, 9/01/34	275	272,657
Yeshiva University, 5.00%, 9/01/38	2,000	1,960,840
Westchester County Industrial Development Agency, New York, RB,
Windward School Civic Facilities (Radian), 5.25%, 10/01/31	2,500	2,169,700
		34,590,157
Health 6.3%
Genesee County Industrial Development Agency, New York, RB, United
Memorial Medical Center Project, 5.00%, 12/01/27	500	334,655
New York State Dormitory Authority, RB:
Hudson Valley Hospital (FSA), 5.00%, 8/15/36	1,500	1,510,830
Insured, NYS Association for Retarded Children, Inc., Series B,
Remarketed (AMBAC), 6.00%, 7/01/32	200	201,176
Mount Sinai NYU Health, Series C, Remarketed, 5.50%, 7/01/26	3,000	2,999,730
NY & Presbyterian Hospital (FHA), 5.25%, 2/15/31	800	811,640
NYS Association for Retarded Children, Inc., Series A, 6.00%, 7/01/32	575	576,242
NYU Hospital Center, Series B, 5.63%, 7/01/37	530	474,324
North Shore L I Jewish Group, 5.50%, 5/01/13 (a)	2,000	2,310,400
Suffolk County Industrial Development Agency, New York, Refunding RB,
Jeffersons Ferry Project, 5.00%, 11/01/28	1,175	955,122
		10,174,119

| See Notes to Financial
Statements. — ANNUAL REPORT | JULY 31, 2009 | 35 |
| --- | --- | --- |

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

Municipal Bonds	Par (000)	Value
New York (concluded)
Housing 0.8%
New York State HFA, RB, Highland Ave. Senior Apartments, Series A,
AMT, 5.00%, 2/15/39	$ 1,500	$ 1,286,220
State 6.1%
New York State Dormitory Authority, RB:
Education, Series B, 5.75%, 3/15/36	600	644,916
Mental Health Services Facilities Improvement, Series B (AMBAC),
5.00%, 2/15/35	4,855	4,758,822
Municipal Health Facilities, Lease, Sub-Series 2-4, 4.75%, 1/15/30	2,100	1,997,037
School District Financing Program, Series A (FSA), 5.00%, 10/01/35	395	389,300
New York State Urban Development Corp., RB, State Personal Income Tax,
Series B-1, 5.00%, 3/15/36	1,035	1,033,427
State of New York, GO, Series A, 5.00%, 2/15/39	975	986,047
		9,809,549
Tobacco 10.1%
New York Counties Tobacco Trust III, RB, Tobacco Settlement Pass Thru,
Turbo, 6.00%, 6/01/43	6,700	5,163,891
Rensselaer Tobacco Asset Securitization Corp., RB, Asset Backed,
Series A, 5.75%, 6/01/43	2,500	1,853,950
Rockland Tobacco Asset Securitization Corp., RB, Asset Backed Bonds,
5.75%, 8/15/43	5,000	3,706,750
TSASC Inc., New York, RB, Tobacco Settlement Asset Backed, Series 1,
5.75%, 7/15/12 (a)	3,000	3,413,670
Westchester Tobacco Asset Securitization, New York, RB, CAB, Plan
Principal 2021, 6.75%, 7/15/10 (a)	2,000	2,139,700
		16,277,961
Transportation 22.7%
Metropolitan Transportation Authority, Refunding RB, Series A, 5.13%,
11/15/31	10,500	10,395,945
Metropolitan Transportation Authority, RB:
Series 2008C, 6.50%, 11/15/28	750	830,947
Series A, 5.00%, 11/15/30	12,000	11,798,400
Series B, 5.00%, 11/15/34	500	490,670
New York City Industrial Development Agency, RB, Airis JFK I LLC
Project, Series A, AMT, 5.50%, 7/01/28	10,000	6,818,500
Port Authority of New York & New Jersey, RB, Special Project, JFK
International Air Terminal 6 (MBIA), AMT, 5.75%, 12/01/22	7,000	6,407,380
		36,741,842
Utilities 15.4%
Long Island Power Authority, RB:
General Purpose, Series B (CIFG), 5.00%, 12/01/35	1,250	1,188,500
General Purpose, Series C (CIFG), 5.25%, 9/01/29	2,000	2,044,940
Series A, 6.25%, 4/01/33	150	165,919
Series A, 5.75%, 4/01/39	4,000	4,163,000
New York City Municipal Water Finance Authority, RB:
2nd General Resolution (MBIA), 4.50%, 6/15/37	2,050	1,873,659
Crossover, Series C, 5.00%, 6/15/32	6,500	6,522,620
Series A (MBIA), 5.00%, 6/15/32	4,000	4,011,080
Series D, 5.00%, 6/15/39	5,000	4,961,350
		24,931,068
Total Municipal Bonds in New York		200,593,391

| Municipal
Bonds | Par (000) | Value |
| --- | --- | --- |
| Guam 1.6% | | |
| County/City/Special District/School District 0.7% | | |
| Territory of Guam, RB, Section 30, Series A, 5.75%, 12/01/34 | $ 1,140 | $ 1,117,553 |
| State 0.6% | | |
| Territory of Guam, GO, Series A, 7.00%, 11/15/39 | 970 | 966,227 |
| Utilities 0.3% | | |
| Guam Government Waterworks Authority, RB, Water, 5.88%, 7/01/35 | 600 | 526,842 |
| Total Municipal Bonds in Guam | | 2,610,622 |
| Multi-State (e)(f) 7.7% | | |
| Housing 7.7% | | |
| Charter Mac Equity Issuer Trust, 6.80%, 11/30/50 | 5,500 | 5,681,390 |
| MuniMae TE Bond Subsidiary LLC: | | |
| 6.30%, 6/30/49 | 6,000 | 4,859,880 |
| 6.80%, 6/30/50 | 3,000 | 1,949,310 |
| Total Municipal Bonds in Multi-State | | 12,490,580 |
| Puerto Rico 15.1% | | |
| Housing 1.8% | | |
| Puerto Rico HFA, RB, Subordinate, Capital Fund Modernization, 5.13%,
12/01/27 | 3,000 | 3,003,300 |
| State 12.3% | | |
| Puerto Rico Public Buildings Authority, RB, Government Facilities,
Series D: | | |
| 5.25%, 7/01/12 (a) | 4,400 | 4,873,088 |
| 5.25%, 7/01/36 | 1,600 | 1,338,384 |
| Puerto Rico Public Finance Corp., RB, Commonwealth Appropriation (a): | | |
| 5.50%, 2/01/12 | 5,000 | 5,505,800 |
| Series E, 5.70%, 2/01/10 | 6,000 | 6,157,680 |
| Puerto Rico Sales Tax Financing Corp., RB, First Sub-Series A, 5.75%,
8/01/37 | 2,000 | 1,978,040 |
| | | 19,852,992 |
| Utilities 1.0% | | |
| Puerto Rico Aqueduct & Sewer Authority, RB, Senior Lien, Series A,
6.00%, 7/01/38 | 1,100 | 1,067,638 |
| Puerto Rico Electric Power Authority, Refunding RB, Series VV (MBIA),
5.25%, 7/01/29 | 500 | 480,865 |
| | | 1,548,503 |
| Total Municipal Bonds in Puerto Rico | | 24,404,795 |
| Total Municipal Bonds 148.4% | | 240,099,388 |

| See Notes to Financial
Statements. — 36 | ANNUAL REPORT | JULY 31, 2009 |
| --- | --- | --- |

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

Municipal Bonds Transferred to Tender Option Bond Trusts (g)	Par (000)	Value
New York 13.7%
Housing
12.4%
New York Mortgage Agency,
Refunding RB, Series 101, AMT, 5.40%, 4/01/32	$ 5,078	$ 4,929,537
New York Mortgage Agency,
RB, 31st Series A, AMT, 5.30%, 10/01/31	15,500	15,085,065
		20,014,602
Utilities
1.3%
New York City Municipal
Water Finance Authority, RB:
Fiscal 2009, Series A,
5.75%, 6/15/40	1,200	1,285,234
Series FF-2, 5.50%, 6/15/40	810	850,963
		2,136,197
Total
Municipal Bonds Transferred to
Tender Option Bond Trusts 13.7%		22,150,799
Total
Long-Term Investments (Cost $280,649,005) 162.1%		262,250,187
Short-Term Securities	Shares
CMA New York Municipal
Money Fund, 0.04% (h)(i)	3,235,523	3,235,523
Total
Short-Term Securities (Cost $3,235,523) 2.0%		3,235,523
Total
Investments (Cost $283,884,528*) 164.1%		265,485,710
Other
Assets Less Liabilities 1.5%		2,392,414
Liability
for Trust Certificates, Including Interest Expense and Fees Payable (7.2)%		(11,643,367	)
Preferred
Shares, at Redemption Value (58.4)%		(94,507,692	)
Net Assets
Applicable to Common Shares 100.0%		$ 161,727,065

The cost and unrealized appreciation (depreciation) of investments as of July 31, 2009, as computed for federal income tax purposes, were as follows:

Aggregate cost	$
Gross unrealized
appreciation	$ 6,607,636
Gross unrealized
depreciation	(23,594,321	)
Net unrealized depreciation	$ (16,986,685	)

| (a) | US government securities,
held in escrow, are used to pay interest on this security as well as to
retire the bond in full at the date indicated, typically at a premium to par. |
| --- | --- |
| (b) | Non-income producing
security. |
| (c) | Issuer filed for bankruptcy
and/or is in default of interest payments. |
| (d) | Represents a step-up bond
that pays an initial coupon rate for the first period and a higher coupon
rate for the following periods. Rate shown is as of report date. |
| (e) | Security exempt from
registration under Rule 144A of the Securities Act of 1933. These securities
may be resold in transactions exempt from registration to qualified
institutional investors. |
| (f) | Security represents a
beneficial interest in a trust. The collateral deposited into the trust is
federally tax-exempt revenue bonds issued by various state or local
governments, or their respective agencies or authorities. The security is
subject to remarketing prior to its stated maturity, and is subject to
mandatory redemption at maturity. |
| (g) | Securities represent bonds
transferred to a tender option bond trust in exchange for which the Trust
acquired the residual interest certificates. These securities serve as
collateral in a financing transaction. See Note 1 of the Notes to Financial
Statements for details of municipal bonds transferred to tender option bond
trusts. |
| (h) | Investments in companies
considered to be an affiliate of the Trust, for purposes of Section 2(a)(3)
of the Investment Company Act of 1940, were as follows: |

Affiliate	Net Activity		Income
CMA New York Municipal
Money Fund	(1,373,007	)	$ 27,866

The following table summarizes the inputs used as of July 31, 2009 in determining the fair valuation of the Trusts investments:

| Valuation Inputs | Investments
in Securities |
| --- | --- |
| | Assets |
| Level 1 Short-Term
Investments | $ 3,235,523 |
| Level 2 Long-Term
Investments 1 | 262,250,187 |
| Level 3 | |
| Total | $ 265,485,710 |

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

| See Notes to Financial
Statements. — ANNUAL REPORT | JULY 31, 2009 | 37 |
| --- | --- | --- |

S tatements of Assets and Liabilities

July 31, 2009		BlackRock California Investment Quality Municipal Trust Inc. (RAA)
Assets
Investments at value unaffiliated 1		$ 18,407,496	$	313,608,419	$	120,176,235	$	20,437,397	$	137,969,550
Investments at value affiliated 2		1,637,526		3,630,796		120,735		100,105		1,702,906
Cash		75,467		66,823		57,385		50,142		82,510
Interest receivable		288,659		4,822,680		1,702,289		256,333		1,711,475
Investments sold receivable		150,558		18,375		185,000		15,000		1,279,815
Income receivable affiliated		18		147		23		47		72
Prepaid expenses		49,530		90,010		17,809		2,558		19,933
Other assets		3,747		29,351		4,612		3,972		10,788
Total assets		20,613,001		322,266,601		122,264,088		20,865,554		142,777,049
Liabilities
Investments purchased payable		901,985		866,878				82,924		580,470
Income dividends payable Common Shares		51,869		1,146,690		311,479		64,244		504,188
Investment advisory fees payable		5,606		140,441		52,458		6,352		62,446
Officers and Trustees fees payable		4,391		30,427		5,352		4,599		11,643
Administration fees payable		1,767						1,857
Interest expense and fees payable		424		53,947		34,268		4,132		16,456
Other affiliates payable				1,955		772				891
Other accrued expenses payable		47,857		92,156		65,975		36,852		69,261
Total accrued liabilities		1,013,899		2,332,494		470,304		200,960		1,245,355
Other Liabilities
Trust certificates 3		1,232,883		56,378,777		4,633,573		3,524,110		22,228,764
Total Liabilities		2,246,782		58,711,271		5,103,877		3,725,070		23,474,119
Preferred Shares at Redemption Value
$25,000 per share liquidation preference, plus unpaid dividends 4,5		5,925,376		71,004,510		42,904,262		4,575,218		34,252,721
Net Assets Applicable to Common Shareholders		$ 12,440,843	$	192,550,820	$	74,255,949	$	12,565,266	$	85,050,209
Net Assets Applicable to Common Shareholders Consist
of
Paid-in capital 6,7,8		$ 13,403,728	$	215,128,997	$	78,891,300	$	15,012,279	$	94,919,275
Undistributed net investment income		108,164		3,757,416		1,776,506		199,992		698,408
Accumulated net realized loss		(524,992	)	(10,174,576	)	(500,014	)	(2,024,464	)	(7,861,391	)
Net unrealized appreciation/depreciation		(546,057	)	(16,161,017	)	(5,911,843	)	(622,541	)	(2,706,083	)
Net Assets Applicable to Common Shareholders		$ 12,440,843	$	192,550,820	$	74,255,949	$	12,565,266	$	85,050,209
Net asset value per Common Share		$ 12.35	$	12.71	$	13.35	$	11.15	$	12.71
1	Investments at cost unaffiliated	$ 18,953,553	$	329,769,436	$	126,088,078	$	21,059,938	$	140,675,633
2	Investments at cost affiliated	$ 1,637,526	$	3,630,796	$	120,735	$	100,105	$	1,702,906
3	Represents short-term floating rate certificates issued by tender
option bond trusts.
4	Preferred Shares outstanding, par value $0.001 per share	237		2,840		1,716		183		1,370
5	Preferred Shares authorized	300		unlimited		unlimited		100
million		unlimited
6	Par value per Common Share	$ 0.01	$	0.001	$	0.001	$	0.01	$	0.001
7	Common Shares outstanding	1,007,166		15,147,816		5,562,128		1,127,093		6,689,056
8	Common Shares authorized	200
million		unlimited		unlimited		200
million		unlimited

| See Notes to Financial
Statements. — 38 | ANNUAL REPORT | JULY 31, 2009 |
| --- | --- | --- |

July 31, 2009		BlackRock New Jersey Investment Quality Municipal Trust Inc. (RNJ)
Assets
Investments at value unaffiliated 1		$ 17,555,155	$	145,558,409	$	26,036,722	$	262,250,187
Investments at value affiliated 2		819,689		10,639,704		317,150		3,235,523
Cash		81,514		21,494		45,017		24,784
Interest receivable		193,884		1,619,293		335,580		3,737,676
Investments sold receivable		2,760		23,375				15,750
Income receivable affiliated		28		63		19		104
Prepaid expenses		1,808		21,487		3,037		37,316
Other assets		5,688		12,533		3,851		20,934
Total assets		18,660,526		157,896,358		26,741,376		269,322,274
Liabilities
Investments purchased payable								200,726
Income dividends payable Common Shares		62,178		587,324		89,456		1,018,255
Investment advisory fees payable		5,487		66,094		8,244		119,988
Officers and Trustees fees payable		6,451		13,407		4,497		21,961
Administration fees payable		1,668				2,402
Interest expense and fees payable		64		549		17		13,478
Other affiliates payable				1,027				1,705
Other accrued expenses payable		49,783		69,804		44,696		81,515
Total accrued liabilities		125,631		738,205		149,312		1,457,628
Other Liabilities
Trust certificates 3		159,917		1,359,296		69,974		11,629,889
Total Liabilities		285,548		2,097,501		219,286		13,087,517
Preferred Shares at Redemption Value
$25,000 per share liquidation preference, plus unpaid dividends 4,5		6,900,547		59,102,821		9,725,966		94,507,692
Net Assets Applicable to Common Shareholders		$ 11,474,431	$	96,696,036	$	16,796,124	$	161,727,065
Net Assets Applicable to Common Shareholders Consist
of
Paid-in capital 6,7,8		$ 13,168,087	$	107,560,339	$	17,731,531	$	180,722,447
Undistributed net investment income		189,816		1,763,915		177,886		3,820,768
Accumulated net realized loss		(543,696	)	(2,154,484	)	(52,538	)	(4,417,332	)
Net unrealized appreciation/depreciation		(1,339,776	)	(10,473,734	)	(1,060,755	)	(18,398,818	)
Net Assets Applicable to Common Shareholders		$ 11,474,431	$	96,696,036	$	16,796,124	$	161,727,065
Net asset value per Common Share		$ 11.33	$	12.78	$	12.81	$	12.71
1	Investments at cost unaffiliated	$ 18,894,931	$	156,032,143	$	27,097,477	$	280,649,005
2	Investments at cost affiliated	$ 819,689	$	10,639,704	$	317,150	$	3,235,523
3	Represents short-term floating rate certificates issued by tender
option bond trusts.
4	Preferred Shares outstanding, par value $0.001 per share	276		2,364		389		3,780
5	Preferred Shares authorized	300		unlimited		392		unlimited
6	Par value per Common Share	$ 0.01	$	0.001	$	0.01	$	0.001
7	Common Shares outstanding	1,012,667		7,568,610		1,311,673		12,728,184
8	Common Shares authorized	200
million		unlimited		200
million		unlimited

ANNUAL REPORT JULY 31, 2009 39

S tatements of Operations

Year Ended July 31, 2009	BlackRock California Investment Quality Municipal Trust Inc. (RAA)				BlackRock Florida Municipal 2020 Term Trust (BFO)		BlackRock Investment Quality Municipal Income Trust (RFA)		BlackRock Municipal Income Investment Trust (BBF)
Investment Income
Interest	$ 1,002,178	$	18,066,252		$ 6,222,294		$ 1,141,337		$ 7,769,838
Income affiliated	6,809		79,392		19,916		11,169		57,264
Total income	1,008,987		18,145,644		6,242,210		1,152,506		7,827,102
Expenses
Investment advisory	67,601		1,916,999		602,091		71,240		842,554
Professional	40,339		67,603		37,127		41,699		55,509
Administration	19,315						20,354
Commissions for Preferred Shares	12,757		188,831		81,544		11,411		89,092
Transfer agent	11,997		23,336		16,481		13,216		18,486
Custodian	3,263		18,415		7,991		3,629		10,224
Accounting services	3,116		57,463		21,732		3,438		25,915
Printing	2,948		46,957		20,449		4,077		25,953
Officer and Trustees	924		21,300		9,036		1,091		10,030
Registration	399		9,318		9,166		2,446		9,605
Miscellaneous	23,463		57,382		36,426		21,495		42,496
Total expenses excluding interest expense and fees	186,122		2,407,604		842,043		194,096		1,129,864
Interest expense and fees 1	6,674		505,595		90,979		14,984		92,390
Total expenses	192,796		2,913,199		933,022		209,080		1,222,254
Less fees waived by advisor	(4,233	)	(372,175	)	(24,898	)	(4,629	)	(167,747	)
Total expenses after fees waived	188,563		2,541,024		908,124		204,451		1,054,507
Net investment income	820,424		15,604,620		5,334,086		948,055		6,772,595
Realized and Unrealized Gain (Loss)
Net realized gain (loss)
from:
Investments	(415,855	)	(4,580,301	)	(542,712	)	(1,446,402	)	(5,674,598	)
Financial futures contracts and forward interest rate swaps	5,894		88,403				(46,216	)
	(409,961	)	(4,491,898	)	(542,712	)	(1,492,618	)	(5,674,598	)
Net change in unrealized
appreciation/depreciation on:
Investments	(261,443	)	(15,831,689	)	(5,010,059	)	(28,439	)	(3,424,220	)
Financial futures contracts and forward interest rate swaps							31,016
	(261,443	)	(15,831,689	)	(5,010,059	)	2,577		(3,424,220	)
Total realized and unrealized loss	(671,404	)	(20,323,587	)	(5,552,771	)	(1,490,041	)	(9,098,818	)
Dividends and Distributions to Preferred Shareholders
From
Net investment income	(129,647	)	(1,891,066	)	(812,866	)	(133,806	)	(928,185	)
Net realized gain
Total dividends and distributions to Preferred Shareholders	(129,647	)	(1,891,066	)	(812,866	)	(133,806	)	(928,185	)
Net Increase (Decrease) in Net Assets Applicable to
Common Shareholders Resulting from Operations	$ 19,373	$	(6,610,033	)	$ (1,031,551	)	$ (675,792	)	$ (3,254,408	)

1 Related to tender option bond trusts.

| See Notes to Financial
Statements. — 40 | ANNUAL REPORT | JULY 31, 2009 |
| --- | --- | --- |

Year Ended July 31, 2009	BlackRock New Jersey Investment Quality Municipal Trust Inc. (RNJ)		BlackRock New Jersey Municipal Income Trust (BNJ)		BlackRock New York Investment Quality Municipal Trust Inc. (RNY)
Investment Income
Interest	$ 1,051,119		$ 8,945,379		$ 1,471,387	$	15,452,988
Income affiliated	6,822		69,942		4,518		30,368
Total income	1,057,941		9,015,321		1,475,905		15,483,356
Expenses
Investment advisory	63,970		930,160		91,068		1,581,128
Professional	37,037		60,980		37,831		63,662
Administration	18,277				26,019
Commissions for Preferred Shares	13,292		116,534		18,621		181,269
Transfer agent	12,380		18,007		12,500		23,701
Custodian	2,862		9,296		3,470		15,732
Accounting services	2,993		26,172		2,959		53,611
Printing	2,256		28,959		6,467		45,966
Officer and Trustees	741		10,931		1,749		17,049
Registration	401		9,305		520		9,357
Miscellaneous	29,758		45,772		28,646		56,294
Total expenses excluding interest expense and fees	183,967		1,256,116		229,850		2,047,769
Interest expense and fees 1	3,715		28,906		36		186,516
Total expenses	187,682		1,285,022		229,886		2,234,285
Less fees waived by advisor	(2,951	)	(192,379	)	(1,856	)	(278,778	)
Total expenses after fees
waived	184,731		1,092,643		228,030		1,955,507
Net investment income	873,210		7,922,678		1,247,875		13,527,849
Realized and Unrealized Gain (Loss)
Net realized gain (loss)
from:
Investments	(239,482	)	(863,424	)	9,613		(2,110,857	)
Financial futures contracts and forward interest rate swaps					2,987		26,881
	(239,482	)	(863,424	)	12,600		(2,083,976	)
Net change in unrealized appreciation/depreciation on:
Investments	(738,822	)	(9,243,381	)	(776,965	)	(12,836,387	)
Financial futures contracts and forward interest rate swaps
	(738,822	)	(9,243,381	)	(776,965	)	(12,836,387	)
Total realized and unrealized loss	(978,304	)	(10,106,805	)	(764,365	)	(14,920,363	)
Dividends and Distributions to Preferred Shareholders
From
Net investment income	(132,892	)	(1,141,652	)	(183,809	)	(1,818,574	)
Net realized gain					(2,815	)
Total dividends and distributions to Preferred Shareholders	(132,892	)	(1,141,652	)	(186,624	)	(1,818,574	)
Net Increase (Decrease) in Net Assets Applicable to
Common Shareholders Resulting from Operations	$ (237,986	)	$ (3,325,779	)	$ 296,886	$	(3,211,088	)

ANNUAL REPORT JULY 31, 2009 41

S tatements of Changes in Net Assets

| Increase (Decrease) in Net Assets: | BlackRock
California Investment Quality Municipal Trust Inc. (RAA) — Year
Ended July 31, 2009 | Period November 1, 2007 to July 31, 2008 | | | Year
Ended October 31, 2007 | |
| --- | --- | --- | --- | --- | --- | --- |
| Operations | | | | | | |
| Net investment income | $ 820,424 | $ | 602,581 | | $ 842,673 | |
| Net realized gain (loss) | (409,961 | ) | (109,585 | ) | (7,880 | ) |
| Net change in unrealized
appreciation/depreciation | (261,443 | ) | (846,985 | ) | (582,095 | ) |
| Dividends and distributions
to Preferred Shareholders from: | | | | | | |
| Net investment income | (129,647 | ) | (177,511 | ) | (240,350 | ) |
| Net realized gain | | | | | (16,752 | ) |
| Net increase (decrease) in net assets applicable to Common
Shareholders resulting from operations | 19,373 | | (531,500 | ) | (4,404 | ) |
| Dividends and Distributions to Common Shareholders
From | | | | | | |
| Net investment income | (572,070 | ) | (432,060 | ) | (602,846 | ) |
| Net realized gain | | | | | (51,877 | ) |
| Decrease in net assets resulting from dividends and distributions to
Common Shareholders | (572,070 | ) | (432,060 | ) | (654,723 | ) |
| Capital Share Transactions | | | | | | |
| Reinvestment of common dividends | | | 943 | | | |
| Net Assets Applicable to Common Shareholders | | | | | | |
| Total decrease in net assets applicable to Common Shareholders | (552,697 | ) | (962,617 | ) | (659,127 | ) |
| Beginning of period | 12,993,540 | | 13,956,157 | | 14,615,284 | |
| End of period | $ 12,440,843 | $ | 12,993,540 | | $ 13,956,157 | |
| Undistributed (distributions in excess of) net investment income | $ 108,164 | $ | (10,829 | ) | $ (3,826 | ) |
| | BlackRock
Investment Quality Municipal Income Trust (RFA) | | | | | |
| Increase (Decrease) in Net Assets: | Year Ended July 31, 2009 | Period November
1, 2007 to July 31, 2008 | | | Year
Ended October 31, 2007 | |
| Operations | | | | | | |
| Net investment income | $ 948,055 | $ | 693,948 | | $ 940,777 | |
| Net realized loss | (1,492,618 | ) | (396,129 | ) | (137,267 | ) |
| Net change in unrealized appreciation/depreciation | 2,577 | | (882,071 | ) | (659,452 | ) |
| Dividends and distributions to Preferred Shareholders from: | | | | | | |
| Net investment income | (133,806 | ) | (223,179 | ) | (292,680 | ) |
| Net realized gain | | | | | (42,977 | ) |
| Net increase (decrease) in net assets applicable to Common
Shareholders resulting from operations | (675,792 | ) | (807,431 | ) | (191,599 | ) |
| Dividends and Distributions to Common Shareholders
From | | | | | | |
| Net
investment income | (630,045 | ) | (455,346 | ) | (674,882 | ) |
| Net
realized gain | | | | | (53,470 | ) |
| Decrease in net assets resulting from dividends and distributions to
Common Shareholders | (630,045 | ) | (455,346 | ) | (728,352 | ) |
| Capital Share Transactions | | | | | | |
| Reinvestment of common
dividends | | | | | | |
| Net Assets Applicable to Common Shareholders | | | | | | |
| Total decrease in net assets applicable to Common Shareholders | (1,305,837 | ) | (1,262,777 | ) | (919,951 | ) |
| Beginning of period | 13,871,103 | | 15,133,880 | | 16,053,831 | |
| End of period | $ 12,565,266 | $ | 13,871,103 | | $ 15,133,880 | |
| Undistributed net investment income | $ 199,992 | $ | 17,338 | | $ 1,915 | |

| See Notes to Financial
Statements. — 42 | ANNUAL REPORT | JULY 31, 2009 |
| --- | --- | --- |

| Increase (Decrease) in Net Assets: | BlackRock
California Municipal Income Trust (BFZ) — Year Ended July 31, 2009 | Period November 1, 2007 to July 31, 2008 | | Year
Ended October 31, 2007 | | Year
Ended July 31, 2009 | | Period January 1, 2008 to July 31, 2008 | | Year
Ended December 31, 2007 | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Operations | | | | | | | | | | | | |
| Net investment income | $ 15,604,620 | $ | 12,399,272 | $ | 16,381,853 | $ | 5,334,086 | $ | 3,205,031 | $ | 5,510,035 | |
| Net realized gain (loss) | (4,491,898 | ) | 1,644,668 | | 506,163 | | (542,712 | ) | 43,162 | | 1,545,672 | |
| Net change in unrealized appreciation/depreciation | (15,831,689 | ) | (15,257,013 | ) | (10,163,939 | ) | (5,010,059 | ) | (3,498,822 | ) | (4,021,372 | ) |
| Dividends and distributions to Preferred Shareholders from: | | | | | | | | | | | | |
| Net investment income | (1,891,066 | ) | (3,277,663 | ) | (4,587,525 | ) | (812,866 | ) | (912,876 | ) | (1,722,437 | ) |
| Net realized gain | | | | | | | | | | | (104,875 | ) |
| Net increase (decrease) in net assets applicable to Common
Shareholders resulting from operations | (6,610,033 | ) | (4,490,736 | ) | 2,136,552 | | (1,031,551 | ) | (1,163,505 | ) | 1,207,023 | |
| Dividends and Distributions to Common Shareholders From | | | | | | | | | | | | |
| Net investment income | (12,623,286 | ) | (10,463,776 | ) | (13,751,528 | ) | (3,459,643 | ) | (1,985,680 | ) | (3,404,022 | ) |
| Net realized gain | | | | | | | | | | | (206,833 | ) |
| Decrease in net assets resulting from dividends and distributions to
Common Shareholders | (12,623,286 | ) | (10,463,776 | ) | (13,751,528 | ) | (3,459,643 | ) | (1,985,680 | ) | (3,610,855 | ) |
| Capital Share Transactions | | | | | | | | | | | | |
| Reinvestment of common dividends | 113,246 | | 686,118 | | 981,552 | | | | | | | |
| Net Assets Applicable to Common Shareholders | | | | | | | | | | | | |
| Total decrease in net assets applicable to Common Shareholders | (19,120,073 | ) | (14,268,394 | ) | (10,633,424 | ) | (4,491,194 | ) | (3,149,185 | ) | (2,403,832 | ) |
| Beginning of period | 211,670,893 | | 225,939,287 | | 236,572,711 | | 78,747,143 | | 81,896,328 | | 84,300,160 | |
| End of period | $ 192,550,820 | $ | 211,670,893 | $ | 225,939,287 | $ | 74,255,949 | $ | 78,747,143 | $ | 81,896,328 | |
| Undistributed (distributions in excess of) net investment income | $ 3,757,416 | $ | 2,700,372 | $ | 4,037,754 | $ | 1,776,506 | $ | 714,465 | $ | 414,384 | |
| | BlackRock
Municipal Income Investment Trust (BBF) | | | | | BlackRock
New Jersey Investment Quality Municipal Trust Inc. (RNJ) | | | | | | |
| Increase (Decrease) in Net Assets: | Year Ended July 31, 2009 | Period November 1, 2007 to July 31, 2008 | | Year
Ended October 31, 2007 | | Year
Ended July 31, 2009 | | Period November
1, 2007 to July 31, 2008 | | Year
Ended October 31, 2007 | | |
| Operations | | | | | | | | | | | | |
| Net investment income | $ 6,772,595 | $ | 5,362,831 | $ | 7,189,178 | $ | 873,210 | $ | 671,005 | $ | 917,642 | |
| Net realized loss | (5,674,598 | ) | (970,330 | ) | (426,708 | ) | (239,482 | ) | (251,633 | ) | (55,198 | ) |
| Net change in unrealized appreciation/depreciation | (3,424,220 | ) | (5,046,482 | ) | (2,783,039 | ) | (738,822 | ) | (1,006,647 | ) | (650,877 | ) |
| Dividends and distributions to Preferred Shareholders from: | | | | | | | | | | | | |
| Net investment income | (928,185 | ) | (1,449,340 | ) | (2,093,225 | ) | (132,892 | ) | (184,793 | ) | (236,547 | ) |
| Net realized gain | | | | | | | | | | | (17,621 | ) |
| Net increase (decrease) in net assets applicable to Common
Shareholders resulting from operations | (3,254,408 | ) | (2,103,321 | ) | 1,886,206 | | (237,986 | ) | (772,068 | ) | (42,601 | ) |
| Dividends and Distributions to Common Shareholders From | | | | | | | | | | | | |
| Net investment income | (5,882,637 | ) | (4,401,018 | ) | (6,035,745 | ) | (644,573 | ) | (614,432 | ) | (830,797 | ) |
| Net realized gain | | | | | | | | | | | (38,111 | ) |
| Decrease in net assets resulting from dividends and distributions to
Common Shareholders | (5,882,637 | ) | (4,401,018 | ) | (6,035,745 | ) | (644,573 | ) | (614,432 | ) | (868,908 | ) |
| Capital Share Transactions | | | | | | | | | | | | |
| Reinvestment of common dividends | 10,803 | | 117,011 | | 262,307 | | 6,227 | | 43,041 | | 29,674 | |
| Net Assets Applicable to Common Shareholders | | | | | | | | | | | | |
| Total decrease in net assets applicable to Common Shareholders | (9,126,242 | ) | (6,387,328 | ) | (3,887,232 | ) | (876,332 | ) | (1,343,459 | ) | (881,835 | ) |
| Beginning of period | 94,176,451 | | 100,563,779 | | 104,451,011 | | 12,350,763 | | 13,694,222 | | 14,576,057 | |
| End of period | $ 85,050,209 | $ | 94,176,451 | $ | 100,563,779 | $ | 11,474,431 | $ | 12,350,763 | $ | 13,694,222 | |
| Undistributed net investment income | $ 698,408 | $ | 743,165 | $ | 1,230,692 | $ | 189,816 | $ | 96,556 | $ | 224,395 | |

ANNUAL REPORT JULY 31, 2009 43

Statements of Changes in Net Assets (concluded)

| Increase (Decrease) in Net Assets: | BlackRock
New Jersey Municipal Income Trust (BNJ) — Year
Ended July 31, 2009 | Period November
1, 2007 to July 31, 2008 | | Year
Ended October 31, 2007 | | |
| --- | --- | --- | --- | --- | --- | --- |
| Operations | | | | | | |
| Net investment income | $ 7,922,678 | $ | 6,675,884 | $ | 8,571,202 | |
| Net realized gain (loss) | (863,424 | ) | (66,308 | ) | (615,269 | ) |
| Net change in unrealized appreciation/depreciation | (9,243,381 | ) | (9,362,431 | ) | (5,097,663 | ) |
| Dividends and distributions to Preferred Shareholders from: | | | | | | |
| Net investment income | (1,141,652 | ) | (1,636,690 | ) | (2,223,503 | ) |
| Net realized gain | | | | | | |
| Net increase (decrease) in net assets applicable to Common
Shareholders resulting from operations | (3,325,779 | ) | (4,389,545 | ) | 634,767 | |
| Dividends and Distributions to Common Shareholders
From | | | | | | |
| Net investment income | (7,033,018 | ) | (5,666,616 | ) | (7,148,582 | ) |
| Net realized gain | | | | | | |
| Decrease in net assets resulting from dividends and distributions to
Common Shareholders | (7,033,018 | ) | (5,666,616 | ) | (7,148,582 | ) |
| Capital Share Transactions | | | | | | |
| Reinvestment of common dividends | 459,252 | | 499,535 | | 679,024 | |
| Net Assets Applicable to Common Shares | | | | | | |
| Total decrease in net assets applicable to Common Shareholders | (9,899,545 | ) | (9,556,626 | ) | (5,834,791 | ) |
| Beginning of period | 106,595,581 | | 116,152,207 | | 121,986,998 | |
| End of period | $ 96,696,036 | $ | 106,595,581 | $ | 116,152,207 | |
| Undistributed net investment income | $ 1,763,915 | $ | 2,016,467 | $ | 2,639,891 | |

| See Notes to Financial
Statements. — 44 | ANNUAL REPORT | JULY 31, 2009 |
| --- | --- | --- |

| Increase
(Decrease) in Net Assets: | BlackRock
New York Investment Quality Municipal Trust Inc. (RNY) — Year
Ended July 31, 2009 | Period November
1, 2007 to July 31, 2008 | | Year
Ended October 31, 2007 | | Year
Ended July 31, 2009 | | Period November
1, 2007 to July 31, 2008 | | Year
Ended October 31, 2007 | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Operations | | | | | | | | | | | | |
| Net investment income | $ 1,247,875 | $ | 882,236 | $ | 1,241,769 | $ | 13,527,849 | $ | 10,889,657 | $ | 14,157,520 | |
| Net realized gain (loss) | 12,600 | | (55,630 | ) | 174,369 | | (2,083,976 | ) | (1,592,525 | ) | (532,770 | ) |
| Net change in unrealized appreciation/depreciation | (776,965 | ) | (1,113,273 | ) | (959,807 | ) | (12,836,387 | ) | (13,359,690 | ) | (8,294,012 | ) |
| Dividends and distributions to Preferred Shareholders from: | | | | | | | | | | | | |
| Net investment income | (183,809 | ) | (201,030 | ) | (332,059 | ) | (1,818,574 | ) | (2,666,298 | ) | (3,596,912 | ) |
| Net realized gain | (2,815 | ) | (48,505 | ) | (8,495 | ) | | | | | | |
| Net increase (decrease) in net assets applicable to Common
Shareholders resulting from operations | 296,886 | | (536,202 | ) | 115,777 | | (3,211,088 | ) | (6,728,856 | ) | 1,733,826 | |
| Dividends and Distributions to Common Shareholders
From | | | | | | | | | | | | |
| Net investment income | (942,306 | ) | (771,183 | ) | (1,114,664 | ) | (11,605,688 | ) | (8,970,500 | ) | (11,399,449 | ) |
| Net realized gain | (6,697 | ) | (133,308 | ) | (17,872 | ) | | | | | | |
| Decrease in net assets resulting from dividends and distributions to
Common Shareholders | (949,003 | ) | (904,491 | ) | (1,132,536 | ) | (11,605,688 | ) | (8,970,500 | ) | (11,399,449 | ) |
| Capital Share Transactions | | | | | | | | | | | | |
| Reinvestment of common dividends | | | 40,519 | | 26,224 | | 616,838 | | 664,800 | | 910,003 | |
| Net Assets Applicable to Common Shares | | | | | | | | | | | | |
| Total decrease in net assets applicable to Common Shareholders | (652,117 | ) | (1,400,174 | ) | (990,535 | ) | (14,199,938 | ) | (15,034,556 | ) | (8,755,620 | ) |
| Beginning of period | 17,448,241 | | 18,848,415 | | 19,838,950 | | 175,927,003 | | 190,961,559 | | 199,717,179 | |
| End of period | $ 16,796,124 | $ | 17,448,241 | $ | 18,848,415 | $ | 161,727,065 | $ | 175,927,003 | $ | 190,961,559 | |
| Undistributed net investment income | $ 177,886 | $ | 56,130 | $ | 146,107 | $ | 3,820,768 | $ | 3,705,423 | $ | 4,448,108 | |

ANNUAL REPORT JULY 31, 2009 45

S tatement of Cash Flows BlackRock California Municipal Income Trust (BFZ)

Year ended July 31, 2009
Cash Provided by Operating Activities
Net decrease in net assets resulting from operations, excluding
dividends to Preferred Shareholders	$ (4,718,967	)
Adjustments to reconcile net decrease in net assets resulting from
operations to net cash provided by operating activities:
Decrease in interest receivable	238,682
Decrease in income receivable affiliated	26
Increase in prepaid expenses	(55,643	)
Decrease in other assets	4,018
Increase in investment advisory fees payable	14,373
Decrease in other affiliates payable	(1,425	)
Decrease in other accrued expenses payable	(27,960	)
Decrease in Officers and Trustees fees payable	(4,426	)
Decrease in interest expense and fees payable	(50,576	)
Net realized and unrealized loss	20,411,990
Amortization of premium and discount on investments	(901,973	)
Proceeds from sales of long-term investments	171,163,120
Purchases of long-term investments	(195,860,580	)
Net proceeds from sales of short-term securities	28,825,340
Cash provided by operating activities	19,035,999
Cash Used for Financing Activities
Payments on redemption of Preferred Shares	(29,900,000	)
Cash receipts from trust certificates	29,868,779
Cash payments for trust certificates	(4,534,490	)
Cash dividends paid to Common Shareholders	(12,395,855	)
Cash dividends paid to Preferred Shareholders	(1,930,868	)
Decrease in bank overdraft	(76,742	)
Cash used for financing activities	(18,969,176	)
Cash
Net increase in cash	66,823
Cash at beginning of year
Cash at end of year	$ 66,823
Cash Flow Information
Cash paid during the year for interest	$ 556,171
Noncash Financing Activities
Capital shares issued in reinvestment of common dividends paid to
shareholders	$ 113,246

A Statement of Cash Flows is presented when a Trust had a significant amount of borrowing during the period, based on the average borrowing outstanding in relation to average total assets.

| See Notes to Financial
Statements. — 46 | ANNUAL REPORT | JULY 31, 2009 |
| --- | --- | --- |

F inancial Highlights BlackRock California Investment Quality Municipal Trust Inc. (RAA)

	Year Ended July 31, 2009
				Year Ended
October 31,
				2007		2006		2005		2004
Per Share Operating Performance
Net asset value, beginning of period	$ 12.90	$	13.86	$	14.51	$	14.20	$	14.43	$	14.56
Net investment income	0.81	1	0.60	1	0.84		0.87		0.78		0.92
Net realized and unrealized gain (loss)	(0.66	)	(0.95	)	(0.58	)	0.50		(0.03	)	(0.09	)
Dividends and distributions to Preferred Shareholders from:
Net investment income	(0.13	)	(0.18	)	(0.24	)	(0.21	)	(0.13	)	(0.06	)
Net realized gain					(0.02	)
Net increase (decrease) from investment operations	0.02		(0.53	)			1.16		0.62		0.77
Dividends and distributions to Common Shareholders from:
Net investment income	(0.57	)	(0.43	)	(0.60	)	(0.85	)	(0.85	)	(0.85	)
Net realized gain					(0.05	)					(0.05	)
Total dividends and distributions to Common Shareholders	(0.57	)	(0.43	)	(0.65	)	(0.85	)	(0.85	)	(0.90	)
Net asset value, end of period	$ 12.35	$	12.90	$	13.86	$	14.51	$	14.20	$	14.43
Market price, end of period	$ 11.20	$	11.96	$	12.57	$	15.80	$	15.75	$	14.30
Total Investment Return 2
Based on net asset value	1.28	%	(3.68	)% 3	0.01	%	7.87	%	4.32	%	5.77	%
Based on market price	(0.93	)%	(1.53	)% 3	(16.71	)%	5.90	%	16.76	%	8.78	%
Ratios to Average Net Assets Applicable to Common
Shares
Total expenses 4	1.60	%	1.62	% 5,6	1.47	%	1.50	%	1.39	%	1.40	%
Total expenses after fees waived and before fees paid indirectly 4	1.57	%	1.59	% 5,6	1.46	%	1.50	%	1.39	%	1.40	%
Total expenses after fees waived and paid indirectly 4	1.57	%	1.59	% 5,6	1.39	%	1.41	%	1.35	%	1.35	%
Total expenses after fees waived and paid indirectly and excluding
interest expense and fees 4,7	1.51	%	1.56	% 5,6	1.39	%	1.41	%	1.35	%	1.35	%
Net investment income 4	6.82	%	6.00	% 5,6	5.90	%	6.11	%	5.38	%	6.37	%
Dividends paid to Preferred Shareholders	1.08	%	1.74	% 5	1.68	%	1.50	%	0.88	%	0.42	%
Net investment income to Common Shareholders	5.74	%	4.26	% 5,6	4.22	%	4.61	%	4.50	%	5.95	%
Supplemental Data
Net assets applicable to Common Shareholders, end of period (000)	$ 12,441	$	12,994	$	13,956	$	14,615	$	14,299	$	14,529
Preferred Shares outstanding at $25,000 liquidation preference, end of
period (000)	$ 5,925	$	6,825	$	7,500	$	7,500	$	7,500	$	7,500
Portfolio turnover	68	%	14	%	38	%	49	%	20	%	15	%
Asset coverage per Preferred Share at $25,000 liquidation preference,
end of period	$ 77,495	$	72,598	$	71,534	$	73,731	$	72,671	$	73,433

| 1 | Based on average shares
outstanding. |
| --- | --- |
| 2 | Total investment returns
based on market value, which can be significantly greater or lesser than the
net asset value, may result in substantially different returns. Total
investment returns exclude the effects of sales charges. |
| 3 | Aggregate total investment
return. |
| 4 | Do not reflect the effect
of dividends to Preferred Shareholders. |
| 5 | Annualized. |
| 6 | Certain non-recurring
expenses have been included in the ratio but not annualized. If these
expenses were annualized, the ratios of total expenses, total expenses after
fees waived and before fees paid indirectly, total expenses after fees waived
and paid indirectly, total expenses after fees waived and paid indirectly and
excluding interest expense and fees, net investment income and net investment
income available to Common Shareholders would have been 1.73%, 1.70%, 1.70%,
1.67%, 5.90% and 4.16%, respectively. |
| 7 | Interest expense and fees
relate to tender option bond trusts. See Note 1 of the Notes to Financial
Statements for details of municipal bonds transferred to tender option bond
trusts. |

| See Notes to Financial
Statements. — ANNUAL REPORT | JULY 31, 2009 | 47 |
| --- | --- | --- |

Financial Highlights BlackRock California Municipal Income Trust (BFZ)

	Year Ended July 31, 2009
				Year
Ended October 31,
				2007		2006		2005		2004
Per Share Operating Performance
Net asset value, beginning of period	$ 13.98	$	14.97	$	15.74	$	15.18	$	14.77	$	13.97
Net investment income	1.03	1	0.82	1	1.08		1.11		1.12		1.15
Net realized and unrealized gain (loss)	(1.35	)	(0.90	)	(0.64	)	0.62		0.36		0.65
Dividends to Preferred Shareholders from net investment income	(0.12	)	(0.22	)	(0.30	)	(0.26	)	(0.16	)	(0.09	)
Net increase (decrease) from investment operations	(0.44	)	(0.30	)	0.14		1.47		1.32		1.71
Dividends to Common Shareholders from net investment income	(0.83	)	(0.69	)	(0.91	)	(0.91	)	(0.91	)	(0.91	)
Net asset value, end of period	$ 12.71	$	13.98	$	14.97	$	15.74	$	15.18	$	14.77
Market price, end of period	$ 12.40	$	13.99	$	15.82	$	17.12	$	14.92	$	13.65
Total Investment Return 2
Based on net asset value	(2.36	)%	(2.09	)% 3	0.77	%	9.93	%	9.47	%	13.14	%
Based on market price	(4.81	)%	(7.29	)% 3	(2.09	)%	21.65	%	16.42	%	10.58	%
Ratios to Average Net Assets Applicable to Common
Shares
Total expenses 4	1.54	%	1.25	% 5	1.21	%	1.25	%	1.25	%	1.28	%
Total expenses after fees waived and before fees paid indirectly 4	1.35	%	0.98	% 5	0.91	%	0.87	%	0.86	%	0.88	%
Total expenses after fees waived and paid indirectly 4	1.35	%	0.98	% 5	0.91	%	0.87	%	0.85	%	0.87	%
Total expenses after fees waived and paid indirectly and excluding
interest expense and fees 4,6	1.08	%	0.91	% 5	0.91	%	0.87	%	0.85	%	0.87	%
Net investment income 4	8.27	%	7.39	% 5	7.09	%	7.26	%	7.35	%	7.96	%
Dividends paid to Preferred Shareholders	1.00	%	1.95	% 5	1.98	%	1.71	%	1.04	%	0.59	%
Net investment income to Common Shareholders	7.27	%	5.44	% 5	5.11	%	5.55	%	6.31	%	7.37	%
Supplemental Data
Net assets applicable to Common Shareholders, end of period (000)	$ 192,551	$	211,671	$	225,939	$	236,573	$	227,472	$	221,371
Preferred Shares outstanding at $25,000 liquidation preference, end of
period (000)	$ 71,000	$	100,900	$	131,950	$	131,950	$	131,950	$	131,950
Portfolio turnover	58	%	26	%	26	%	17	%	28	%	15	%
Asset coverage per Preferred Share at $25,000 liquidation preference,
end of period	$ 92,801	$	77,457	$	67,816	$	69,836	$	68,107	$	66,945

| See Notes to Financial
Statements. — 48 | ANNUAL REPORT | JULY 31, 2009 |
| --- | --- | --- |

Financial Highlights BlackRock Florida Municipal 2020 Term Trust (BFO)

	Year Ended July 31, 2009
				Year
Ended December 31,
				2007		2006		2005		2004
Per Share Operating Performance
Net asset value, beginning of period	$ 14.16	$	14.72	$	15.16	$	14.90	$	14.63	$	14.50
Net
investment income	0.96	1	0.58	1	0.99		0.98		0.98		0.99
Net
realized and unrealized gain (loss)	(1.00	)	(0.62	)	(0.45	)	0.23		0.31		0.14
Dividends and distributions to Preferred Shareholders from:
Net investment income	(0.15	)	(0.16	)	(0.31	)	(0.29	)	(0.20	)	(0.10	)
Net realized gain					(0.02	)			(0.01	)
Net increase (decrease) from investment operations	(0.19	)	(0.20	)	0.21		0.92		1.08		1.03
Dividends and distributions to Common Shareholders from:
Net investment income	(0.62	)	(0.36	)	(0.61	)	(0.66	)	(0.75	)	(0.90	)
Net realized gain					(0.04	)			(0.06	)
Total dividends and distributions to Common Shareholders	(0.62	)	(0.36	)	(0.65	)	(0.66	)	(0.81	)	(0.90	)
Net asset value, end of period	$ 13.35	$	14.16	$	14.72	$	15.16	$	14.90	$	14.63
Market price, end of period	$ 12.31	$	12.50	$	12.93	$	13.85	$	13.35	$	15.08
Total Investment Return 2
Based on net asset value	(0.48	)%	(1.12	)% 3	1.86	%	6.73	%	7.71	%	7.19	%
Based on market price	3.95	%	(0.63	)% 3	(2.06	)%	8.83	%	(6.76	)%	4.10	%
Ratios to Average Net Assets Applicable to Common
Shares
Total expenses 4	1.29	%	1.22	% 5	1.16	%	1.20	%	1.26	%	1.25	%
Total expenses after fees waived and before fees paid indirectly 4	1.26	%	1.22	% 5	1.16	%	1.20	%	1.26	%	1.21	%
Total expenses after fees waived and paid indirectly 4	1.26	%	1.22	% 5	1.16	%	1.18	%	1.24	%	1.21	%
Total expenses after fees waived and paid indirectly and excluding
interest expense and fees 4,6	1.13	%	1.17	% 5	1.16	%	1.18	%	1.24	%	1.21	%
Net investment income 4	7.39	%	6.74	% 5	6.63	%	6.54	%	6.57	%	6.93	%
Dividends to Preferred Shareholders	1.13	%	1.92	% 5	2.07	%	1.96	%	1.32	%	0.68	%
Net investment income to Common Shareholders	6.26	%	4.82	% 5	4.56	%	4.58	%	5.25	%	6.25	%
Supplemental Data
Net assets applicable to Common Shareholders, end of period (000)	$ 74,256	$	78,747	$	81,896	$	84,300	$	82,875	$	81,391
Preferred Shares outstanding at $25,000 liquidation preference, end of
period (000)	$ 42,900	$	42,900	$	48,900	$	48,900	$	48,900	$	48,900
Portfolio turnover	9	%	6	%	17	%					9	%
Asset coverage per Preferred Share at $25,000 liquidation preference,
end of period	$ 68,275	$	70,900	$	66,872	$	68,114	$	67,379	$	66,617

| See Notes to Financial
Statements. — ANNUAL REPORT | JULY 31, 2009 | 49 |
| --- | --- | --- |

Financial Highlights BlackRock Investment Quality Municipal Income Trust (RFA)

	Year Ended July 31, 2009
				Year
Ended October 31,
				2007		2006		2005		2004
Per Share Operating Performance
Net asset value, beginning of period	$ 12.31	$	13.43	$	14.24	$	14.39	$	15.02	$	15.39
Net investment income	0.84	1	0.62	1	0.83		0.82		0.84		0.98
Net realized and unrealized gain (loss)	(1.32	)	(1.14	)	(0.69	)	0.40		(0.35	)	(0.18	)
Dividends and distributions to Preferred Shareholders from:
Net investment income	(0.12	)	(0.20	)	(0.26	)	(0.21	)	(0.15	)	(0.07	)
Net realized gain					(0.04	)	(0.05	)	(0.01	)	(0.02	)
Net increase (decrease) from investment operations	(0.60	)	(0.72	)	(0.16	)	0.96		0.33		0.71
Dividends and distributions to Common Shareholders from:
Net investment income	(0.56	)	(0.40	)	(0.60	)	(0.85	)	(0.85	)	(0.85	)
Net realized gain					(0.05	)	(0.26	)	(0.11	)	(0.23	)
Total dividends and distributions to Common Shareholders	(0.56	)	(0.40	)	(0.65	)	(1.11	)	(0.96	)	(1.08	)
Net asset value, end of period	$ 11.15	$	12.31	$	13.43	$	14.24	$	14.39	$	15.02
Market price, end of period	$ 10.08	$	10.93	$	11.86	$	16.00	$	14.85	$	14.30
Total Investment Return 2
Based on net asset value	(3.68	)%	(5.03	)% 3	(1.02	)%	6.46	%	2.19	%	5.00	%
Based on market price	(1.93	)%	(4.51	)% 3	(22.21	)%	15.91	%	10.76	%	6.32	%
Ratios to Average Net Assets Applicable to Common
Shares
Total expenses 4	1.72	%	1.60	% 5,6	1.44	%	1.43	%	1.32	%	1.31	%
Total expenses after fees waived and before fees paid indirectly 4	1.68	%	1.58	% 5,6	1.43	%	1.43	%	1.32	%	1.31	%
Total expenses after fees waived and paid indirectly 4	1.68	%	1.58	% 5,6	1.39	%	1.37	%	1.29	%	1.27	%
Total expenses after fees waived and paid indirectly and excluding
interest expense and fees 4,7	1.56	%	1.53	% 5,6	1.39	%	1.37	%	1.29	%	1.27	%
Net investment income 4	7.79	%	6.42	% 5,6	6.03	%	5.80	%	5.69	%	6.48	%
Dividends to Preferred Shareholders	1.10	%	2.03	% 5	1.88	%	1.49	%	1.05	%	0.46	%
Net investment income to Common Shareholders	6.69	%	4.39	% 5,6	4.15	%	4.31	%	4.64	%	6.02	%
Supplemental Data
Net assets applicable to Common Shareholders, end of period (000)	$ 12,565	$	13,871	$	15,134	$	16,054	$	16,214	$	16,929
Preferred Shares outstanding at $25,000 liquidation preference, end of
period (000)	$ 4,575	$	7,125	$	8,500	$	8,500	$	8,500	$	8,500
Portfolio turnover	88	%	29	%	40	%	57	%	15	%	13	%
Asset coverage per Preferred Share at $25,000 liquidation preference,
end of period	$ 93,664	$	73,687	$	69,526	$	72,229	$	72,696	$	74,795

| 1 | Based on average shares
outstanding. |
| --- | --- |
| 2 | Total investment returns
based on market value, which can be significantly greater or lesser than the
net asset value, may result in substantially different returns. Total
investment returns exclude the effects of sales charges. |
| 3 | Aggregate total investment
return. |
| 4 | Do not reflect the effect
of dividends to Preferred Shareholders. |
| 5 | Annualized. |
| 6 | Certain non-recurring
expenses have been included in the ratio but not annualized. If these
expenses were annualized, the ratios of total expenses, total expenses after
fees waived and before fees paid indirectly, total expenses after fees waived
and paid indirectly, total expenses after fees waived and paid indirectly and
excluding interest expense and fees, net investment income and net investment
income to Common Shareholders would have been 1.71%, 1.68%, 1.68%, 1.63%,
6.31% and 4.28%, respectively. |
| 7 | Interest expense and fees
relate to tender option bond trusts. See Note 1 of the Notes to Financial
Statements for details of municipal bonds transferred to tender option bond
trusts. |

| See Notes to Financial
Statements. — 50 | ANNUAL REPORT | JULY 31, 2009 |
| --- | --- | --- |

Financial Highlights BlackRock Municipal Income Investment Trust (BBF)

	Year Ended July 31, 2009
				Year
Ended October 31,
				2007		2006		2005		2004
Per Share Operating Performance
Net asset value, beginning of period	$ 14.08	$	15.05	$	15.68	$	15.48	$	15.27	$	14.68
Net investment income	1.01	1	0.80	1	1.07		1.11		1.11		1.12
Net realized and unrealized gain (loss)	(1.36	)	(0.89	)	(0.49	)	0.26		0.17		0.45
Dividends to Preferred Shareholders from net investment income	(0.14	)	(0.22	)	(0.31	)	(0.27	)	(0.17	)	(0.08	)
Net increase (decrease) from investment operations	(0.49	)	(0.31	)	0.27		1.10		1.11		1.49
Dividends to Common Shareholders from net investment income	(0.88	)	(0.66	)	(0.90	)	(0.90	)	(0.90	)	(0.90	)
Net asset value, end of period	$ 12.71	$	14.08	$	15.05	$	15.68	$	15.48	$	15.27
Market price, end of period	$ 12.49	$	13.68	$	15.10	$	16.30	$	15.25	$	14.40
Total Investment Return 2
Based on net asset value	(2.57	)%	(2.04	)% 3	1.78	%	7.34	%	7.63	%	11.02	%
Based on market price	(1.46	)%	(5.14	)% 3	(1.76	)%	13.26	%	12.44	%	15.04	%
Ratios to Average Net Assets Applicable to Common
Shares
Total expenses 4	1.47	%	1.31	% 5	1.28	%	1.30	%	1.30	%	1.32	%
Total expenses after fees waived and before fees paid indirectly 4	1.27	%	1.06	% 5	0.97	%	0.93	%	0.91	%	0.93	%
Total expenses after fees waived and paid indirectly 4	1.27	%	1.06	% 5	0.96	%	0.92	%	0.90	%	0.93	%
Total expenses after fees waived and paid indirectly and excluding
interest expense and fees 4,6	1.16	%	1.02	% 5	0.96	%	0.92	%	0.90	%	0.93	%
Net investment income 4	8.13	%	7.26	% 5	7.02	%	7.12	%	7.16	%	7.49	%
Dividends paid to Preferred Shareholders	1.11	%	1.96	% 5	2.04	%	1.75	%	1.11	%	0.55	%
Net investment income to Common Shareholders	7.02	%	5.30	% 5	4.98	%	5.37	%	6.05	%	6.94	%
Supplemental Data
Net assets applicable to Common Shareholders, end of period (000)	$ 85,050	$	94,176	$	100,564	$	104,451	$	102,944	$	101,512
Preferred Shares outstanding at $25,000 liquidation preference, end of
period (000)	$ 34,250	$	49,550	$	57,550	$	57,550	$	57,550	$	57,550
Portfolio turnover	66	%	13	%	25	%	20	%	10	%	10	%
Asset coverage per Preferred Share at $25,000 liquidation preference,
end of period	$ 87,082	$	72,521	$	68,688	$	70,391	$	69,729	$	69,101

| See Notes to Financial
Statements. — ANNUAL REPORT | JULY 31, 2009 | 51 |
| --- | --- | --- |

Financial Highlights BlackRock New Jersey Investment Quality Municipal Trust Inc. (RNJ)

	Year Ended July 31, 2009
				Year
Ended October 31,
				2007		2006		2005		2004
Per Share Operating Performance
Net asset value, beginning of period	$ 12.20	$	13.57	$	14.47	$	14.48	$	14.79	$	14.90
Net investment income	0.86	1	0.66	1	0.91		0.85		0.87		0.97
Net realized and unrealized gain (loss)	(0.96	)	(1.26	)	(0.70	)	0.34		(0.21	)	(0.20	)
Dividends and distributions to Preferred Shareholders from:
Net investment income	(0.13	)	(0.16	)	(0.23	)	(0.20	)	(0.15	)	(0.07	)
Net realized gain					(0.02	)	(0.03	)
Net increase (decrease) from investment operations	(0.23	)	(0.76	)	(0.04	)	0.96		0.51		0.70
Dividends and distributions to Common Shareholders from:
Net investment income	(0.64	)	(0.61	)	(0.82	)	(0.84	)	(0.82	)	(0.81	)
Net realized gain					(0.04	)	(0.13	)
Total dividends and distributions to Common Shareholders	(0.64	)	(0.61	)	(0.86	)	(0.97	)	(0.82	)	(0.81	)
Net asset value, end of period	$ 11.33	$	12.20	$	13.57	$	14.47	$	14.48	$	14.79
Market price, end of period	$ 11.68	$	11.96	$	14.96	$	15.95	$	14.70	$	15.00
Total Investment Return 2
Based on net asset value	(1.09	)%	(6.10	)% 3	(1.03	)%	6.14	%	3.43	%	5.00	%
Based on market price	4.01	%	(16.50	)% 3	(1.02	)%	15.25	%	3.53	%	7.14	%
Ratios to Average Net Assets Applicable to Common
Shares
Total expenses 4	1.70	%	1.88	% 5,6	1.48	%	1.51	%	1.37	%	1.37	%
Total expenses after fees waived and before fees paid indirectly 4	1.67	%	1.86	% 5,6	1.47	%	1.51	%	1.37	%	1.37	%
Total expenses after fees waived and paid indirectly 4	1.67	%	1.86	% 5,6	1.40	%	1.41	%	1.34	%	1.34	%
Total expenses after fees waived and paid indirectly and excluding
interest expense and fees 4,7	1.64	%	1.84	% 5,6	1.40	%	1.41	%	1.34	%	1.34	%
Net investment income 4	7.91	%	6.97	% 5,6	6.49	%	5.91	%	5.89	%	6.50	%
Dividends paid to Preferred Shareholders	1.20	%	1.89	% 5	1.67	%	1.41	%	1.00	%	0.47	%
Net investment income to Common Shareholders	6.71	%	5.08	% 5,6	4.82	%	4.50	%	4.89	%	6.03	%
Supplemental Data
Net assets applicable to Common Shareholders, end of period (000)	$ 11,474	$	12,351	$	13,694	$	14,576	$	14,581	$	14,900
Preferred Shares outstanding at $25,000 liquidation preference, end of
period (000)	$ 6,900	$	7,075	$	7,500	$	7,500	$	7,500	$	7,500
Portfolio turnover	32	%	18	%	31	%	27	%	19	%	12	%
Asset coverage per Preferred Share at $25,000 liquidation preference,
end of period	$ 66,576	$	68,647	$	70,649	$	73,603	$	73,612	$	74,670

| 1 | Based on average shares
outstanding. |
| --- | --- |
| 2 | Total investment returns
based on market value, which can be significantly greater or lesser than the
net asset value, may result in substantially different returns. Total
investment returns exclude the effects of sales charges. |
| 3 | Aggregate total investment
return. |
| 4 | Do not reflect the effect
of dividends to Preferred Shareholders. |
| 5 | Annualized. |
| 6 | Certain non-recurring
expenses have been included in the ratio but not annualized. If these
expenses were annualized, the ratios of total expenses, total expenses after
fees waived and before fees paid indirectly, total expenses after fees waived
and paid indirectly, total expenses after fees waived and paid indirectly and
excluding interest expense and fees, net investment income and net investment
income to Common Shareholders would have been 2.00%, 1.98%, 1.98%, 1.96%,
6.85% and 4.96%, respectively. |
| 7 | Interest expense and fees
relate to tender option bond trusts. See Note 1 of the Notes to Financial
Statements for details of municipal bonds transferred to tender option bond
trusts. |

| See Notes to Financial
Statements. — 52 | ANNUAL REPORT | JULY 31, 2009 |
| --- | --- | --- |

Financial Highlights BlackRock New Jersey Municipal Income Trust (BNJ)

	Year Ended July 31, 2009
				Year
Ended October 31,
				2007		2006		2005		2004
Per Share Operating Performance
Net asset value, beginning of period	$ 14.15	$	15.49	$	16.35	$	15.87	$	15.38	$	14.59
Net investment income	1.05	1	0.89	1	1.14		1.17		1.17		1.16
Net realized and unrealized gain (loss)	(1.38	)	(1.24	)	(0.74	)	0.52		0.42		0.61
Dividends to Preferred Shareholders from net investment income	(0.11	)	(0.24	)	(0.30	)	(0.26	)	(0.18	)	(0.08	)
Net increase (decrease) from investment operations	(0.44	)	(0.59	)	0.10		1.43		1.41		1.69
Dividends to Common Shareholders from net investment income	(0.93	)	(0.75	)	(0.96	)	(0.95	)	(0.92	)	(0.90	)
Net asset value, end of period	$ 12.78	$	14.15	$	15.49	$	16.35	$	15.87	$	15.38
Market price, end of period	$ 14.00	$	15.09	$	16.90	$	18.40	$	15.91	$	14.45
Total Investment Return 2
Based on net asset value	(2.62	)%	(4.12	)% 3	0.17	%	9.18	%	9.60	%	12.29	%
Based on market price	0.04	%	(6.28	)% 3	(2.89	)%	22.56	%	16.95	%	9.63	%
Ratios to Average Net Assets Applicable to Common
Shares
Total expenses 4	1.38	%	1.28	% 5	1.24	%	1.27	%	1.28	%	1.30	%
Total expenses after fees waived and before fees paid indirectly 4	1.17	%	1.03	% 5	0.94	%	0.91	%	0.90	%	0.91	%
Total expenses after fees waived and paid indirectly 4	1.17	%	1.03	% 5	0.93	%	0.89	%	0.89	%	0.91	%
Total expenses after fees waived and paid indirectly and excluding
interest expense and fees 4,6	1.14	%	1.02	% 5	0.93	%	0.89	%	0.89	%	0.91	%
Net investment income 4	8.49	%	7.92	% 5	7.18	%	7.31	%	7.37	%	7.74	%
Dividends paid to Preferred Shareholders	1.22	%	1.94	% 5	1.86	%	1.63	%	1.12	%	0.56	%
Net investment income to Common Shareholders	7.27	%	5.98	% 5	5.32	%	5.68	%	6.25	%	7.18	%
Supplemental Data
Net assets applicable to Common Shareholders, end of period (000)	$ 96,696	$	106,596	$	116,152	$	121,987	$	117,739	$	114,019
Preferred Shares outstanding at $25,000 liquidation preference, end of
period (000)	$ 59,100	$	60,475	$	63,800	$	63,800	$	63,800	$	63,800
Portfolio turnover	29	%	12	%	23	%	2	%	6	%	16	%
Asset coverage per Preferred Share at $25,000 liquidation preference,
end of period	$ 65,905	$	69,083	$	70,528	$	72,812	$	71,142	$	69,682

| See Notes to Financial
Statements. — ANNUAL REPORT | JULY 31, 2009 | 53 |
| --- | --- | --- |

Financial Highlights BlackRock New York Investment Quality Municipal Trust Inc. (RNY)

	Year Ended July 31, 2009
				Year
Ended October 31,
				2007		2006		2005		2004
Per Share Operating Performance
Net asset value, beginning of period	$ 13.30	$	14.40	$	15.18	$	15.03	$	15.35	$	15.34
Net investment income	0.95	1	0.67	1	0.95		0.97		0.96		0.96
Net realized and unrealized gain (loss)	(0.61	)	(0.89	)	(0.61	)	0.37		(0.26	)
Dividends and distributions to Preferred Shareholders from:
Net investment income	(0.10	)	(0.15	)	(0.25	)	(0.21	)	(0.14	)	(0.07	)
Net realized gain	(0.00	) 2	(0.04	)	(0.01	)	(0.02	)
Net increase (decrease) from investment operations	0.24		(0.41	)	0.08		1.11		0.56		0.89
Dividends and distributions to Common Shareholders from:
Net investment income	(0.72	)	(0.60	)	(0.85	)	(0.88	)	(0.88	)	(0.88	)
Net realized gain	(0.01	)	(0.09	)	(0.01	)	(0.08	)
Total dividends and distributions to Common Shareholders	(0.73	)	(0.69	)	(0.86	)	(0.96	)	(0.88	)	(0.88	)
Net asset value, end of period	$ 12.81	$	13.30	$	14.40	$	15.18	$	15.03	$	15.35
Market price, end of period	$ 12.61	$	12.83	$	15.39	$	16.65	$	14.75	$	14.50
Total Investment Return 3
Based on net asset value	2.71	%	(2.98	)% 4	0.10	%	7.32	%	3.97	%	6.48	%
Based on market price	4.81	%	(12.43	)% 4	(2.46	)%	19.95	%	8.01	%	8.81	%
Ratios to Average Net Assets Applicable to Common
Shares
Total expenses 5	1.42	%	1.48	% 6,7	1.29	%	1.33	%	1.24	%	1.24	%
Total expenses after fees waived and before fees paid indirectly 5	1.41	%	1.47	% 6,7	1.29	%	1.33	%	1.24	%	1.24	%
Total expenses after fees waived and paid indirectly 5	1.41	%	1.47	% 6,7	1.24	%	1.25	%	1.20	%	1.21	%
Total expenses after fees waived and paid indirectly and excluding
interest expense and fees 5,8	1.41	%	1.47	% 6,7	1.24	%	1.25	%	1.20	%	1.21	%
Net investment income 5	7.72	%	6.53	% 6,7	6.42	%	6.48	%	6.30	%	6.29	%
Dividends to Preferred Shareholders	1.14	%	1.47	% 6	1.72	%	1.42	%	0.91	%	0.46	%
Net investment income to Common Shareholders	6.58	%	5.06	% 6,7	4.70	%	5.06	%	5.39	%	5.83	%
Supplemental Data
Net assets applicable to Common Shareholders, end of period (000)	$ 16,796	$	17,448	$	18,848	$	19,839	$	19,643	$	20,066
Preferred Shares outstanding at $25,000 liquidation preference, end of
period (000)	$ 9,725	$	9,800	$	9,800	$	9,800	$	9,800	$	9,800
Portfolio turnover	24	%	8	%	37	%	24	%	10	%	23	%
Asset coverage per Preferred Share at $25,000 liquidation preference,
end of period	$ 68,180	$	69,521	$	73,090	$	75,614	$	75,111	$	76,195

| 1 | Based on average shares
outstanding. |
| --- | --- |
| 2 | Amount is less than
$(0.01). |
| 3 | Total investment returns
based on market value, which can be significantly greater or lesser than the
net asset value, may result in substantially different returns. Total
investment returns exclude the effects of sales charges. |
| 4 | Aggregate total investment
return. |
| 5 | Do not reflect the effect
of dividends to Preferred Shareholders. |
| 6 | Annualized. |
| 7 | Certain non-recurring
expenses have been included in the ratio but not annualized. If these
expenses were annualized, the ratios of total expenses, total expenses after
fees waived and before fees paid indirectly, total expenses after fees waived
and paid indirectly, total expenses after fees waived and paid indirectly and
excluding interest expense and fees, net investment income and net investment
income to Common Shareholders would have been 1.56%, 1.55%, 1.55%, 1.55%,
6.46% and 4.99%, respectively. |
| 8 | Interest expense and fees
relate to tender option bond trusts. See Note 1 of the Notes to Financial
Statements for details of municipal bonds transferred to tender option bond
trusts. |

| See Notes to Financial
Statements. — 54 | ANNUAL REPORT | JULY 31, 2009 |
| --- | --- | --- |

Financial Highlights BlackRock New York Municipal Income Trust (BNY)

	Year Ended July 31, 2009
				Year
Ended October 31,
				2007		2006		2005		2004
Per Share Operating Performance
Net asset value, beginning of period	$ 13.88	$	15.11	$	15.88	$	15.44	$	15.28	$	14.76
Net investment income	1.06	1	0.86	1	1.11		1.13		1.14		1.14
Net realized and unrealized gain (loss)	(1.22	)	(1.17	)	(0.70	)	0.47		0.09		0.36
Dividends to Preferred Shareholders from net investment income	(0.10	)	(0.21	)	(0.28	)	(0.26	)	(0.17	)	(0.08	)
Net increase (decrease) from investment operations	(0.26	)	(0.52	)	0.13		1.34		1.06		1.42
Dividends to Common Shareholders from net investment income	(0.91	)	(0.71	)	(0.90	)	(0.90	)	(0.90	)	(0.90	)
Net asset value, end of period	$ 12.71	$	13.88	$	15.11	$	15.88	$	15.44	$	15.28
Market price, end of period	$ 13.95	$	15.26	$	15.55	$	17.35	$	15.19	$	13.99
Total Investment Return 2
Based on net asset value	(1.28	)%	(3.71	)% 3	0.64	%	8.91	%	7.38	%	10.46	%
Based on market price	(1.44	)%	2.87	% 3	(5.20	)%	20.95	%	15.38	%	10.99	%
Ratios to Average Net Assets Applicable to Common
Shares
Total expenses 4	1.43	%	1.25	% 5	1.22	%	1.25	%	1.26	%	1.27	%
Total expenses after fees waived and before fees paid indirectly 4	1.25	%	1.00	% 5	0.92	%	0.88	%	0.87	%	0.87	%
Total expenses after fees waived and paid indirectly 4	1.25	%	1.00	% 5	0.92	%	0.87	%	0.86	%	0.87	%
Total expenses after fees waived and paid indirectly and excluding
interest expense and fees 4,6	1.13	%	0.97	% 5	0.92	%	0.87	%	0.86	%	0.87	%
Net investment income 4	8.67	%	7.79	% 5	7.23	%	7.30	%	7.35	%	7.62	%
Dividends paid to Preferred Shareholders	1.17	%	1.91	% 5	1.84	%	1.69	%	1.08	%	0.56	%
Net investment income to Common Shareholders	7.50	%	5.88	% 5	5.39	%	5.61	%	6.27	%	7.06	%
Supplemental Data
Net assets applicable to Common Shares, end of period (000)	$ 161,727	$	175,927	$	190,962	$	199,717	$	193,457	$	191,274
Preferred Shares outstanding at $25,000 liquidation preference, end of
period (000)	$ 94,500	$	95,850	$	109,750	$	109,750	$	109,750	$	109,750
Portfolio turnover	18	%	5	%	23	%	27	%	24	%	13	%
Asset coverage per Preferred Share at $25,000 liquidation preference,
end of period	$ 67,787	$	70,892	$	68,509	$	70,502	$	69,073	$	68,575

| See Notes to Financial
Statements. — ANNUAL REPORT | JULY 31, 2009 | 55 |
| --- | --- | --- |

Notes to Financial Statements

1. Organization and Significant Accounting Policies:

BlackRock California Investment Quality Municipal Trust Inc. (California Investment Quality), BlackRock New Jersey Investment Quality Municipal Trust Inc. (New Jersey Investment Quality) and BlackRock New York Investment Quality Municipal Trust Inc. (New York Investment Quality) are organized as Maryland corporations. BlackRock Investment Quality Municipal Income Trust (formerly BlackRock Florida Investment Quality Municipal Trust) (Investment Quality) was organized as a Massachusetts business trust. California Investment Quality, Investment Quality, New Jersey Investment Quality and New York Investment Quality are herein referred to as the Investment Quality Trusts. BlackRock California Municipal Income Trust (California Income), BlackRock Municipal Income Investment Trust (formerly BlackRock Florida Municipal Income Trust) (Municipal Income Investment), BlackRock New Jersey Municipal Income Trust (New Jersey Income), BlackRock New York Municipal Income Trust (New York Income) (collectively, the Income Trusts) and BlackRock Florida Municipal 2020 Term Trust (Florida 2020) are organized as Delaware statutory trusts. The Investment Quality Trusts, Income Trusts and Florida 2020 are referred to herein collectively as the Trusts. The Trusts are registered under the Investment Company Act of 1940, as amended (the 1940 Act), as non-diversified, closed-end management investment companies. The Trusts financial statements are prepared in conformity with accounting principles generally accepted in the United States of America, which may require the use of management accruals and estimates. Actual results may differ from these estimates. The Boards of Directors and the Boards of Trustees of the Trusts are referred to throughout this report as the Board of Trustees or the Board. The Trusts determine and make available for publication the net asset value of their Common Shares on a daily basis.

The following is a summary of significant accounting policies followed by the Trusts:

Valuation of Investments: Municipal investments (including commitments to purchase such investments on a when-issued basis) are valued on the basis of prices provided by dealers or pricing services selected under the supervision of each Trusts Board. In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, pricing matrixes, market transactions in comparable investments and information with respect to various relationships between investments. Swap agreements are valued by utilizing quotes received daily by each Trusts pricing service or through brokers, which are derived using daily swap curves and trades of underlying securities. Financial futures contracts traded on exchanges are valued at their last price. Short-term securities with maturities less than 60 days may be valued at amortized cost, which approximates fair value. Investments in open-end investment companies are valued at net asset value each business day.

In the event that application of these methods of valuation results in a price for an investment which is deemed not to be representative of the market value of such investment, the investment will be valued by a method approved by each Trusts Board as reflecting fair value (Fair Value Assets). When determining the price for Fair Value Assets, the investment advisor and/or the sub-advisor seeks to determine the price that each Trust might reasonably expect to receive from the current sale of that asset in an arms-length transaction. Fair value determinations shall be based upon all available factors that the investment advisor and/or sub-advisor deems relevant. The pricing of all Fair Value Assets is subsequently reported to the Board or a committee thereof.

Forward Commitments and When-Issued Delayed Delivery Securities: The Trusts 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 Trusts may purchase securities under such conditions only with the intention of actually acquiring them, but may enter into a separate agreement to sell the securities before the settlement date. Since the value of securities purchased may fluctuate prior to settlement, the Trusts may be required to pay more at settlement than the security is worth. In addition, the purchaser is not entitled to any of the interest earned prior to settlement. When purchasing a security on a delayed-delivery basis the Trusts 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 Trusts maximum amount of loss is the unrealized gain of the commitment.

Municipal Bonds Transferred to Tender Option Bond Trusts: The Trusts leverage their assets through the use of tender option bond trusts (TOBs). A TOB is established by a third party sponsor forming a special purpose entity, into which one or more funds, or an agent on behalf of the funds, transfers municipal bonds. Other funds managed by the investment advisor may also contribute municipal bonds to a TOB into which a Trust has contributed bonds. A TOB typically issues two classes of beneficial interests: short-term floating rate certificates, which are sold to third party investors, and residual certificates (TOB Residuals), which are generally issued to the participating funds that made the transfer. The TOB Residuals held by a Trust include the right of the Trust (1) to cause the holders of a proportional share of the floating rate certificates to tender their certificates at par, and (2) to transfer, within seven days, a corresponding share of the municipal bonds from the TOB to the Trust. The TOB may also be terminated without the consent of the Trust upon the occurrence of certain events as defined in the TOB agreements. Such termination events may include the bankruptcy or default of the municipal bond, a substantial downgrade in credit quality of the municipal bond, the inability of the TOB to obtain quarterly or annual renewal of the liquidity support agreement, a substantial decline in market value of the municipal bond or the inability to remarket the short-term floating rate certificates to third party investors.

The cash received by the TOB from the sale of the short-term floating rate certificates, less transaction expenses, is paid to the Trust, which typically invests the cash in additional municipal bonds. Each Trusts transfer of the municipal bonds to a TOB is accounted for as a secured borrowing, therefore the municipal bonds deposited into a TOB are presented in the Trusts Schedules of Investments and the proceeds from the issuance of the short term floating rate certificates are shown as trust certificates in the Statements of Assets and Liabilities.

Interest income from the underlying securities is recorded by the Trusts on an accrual basis. Interest expense incurred on the secured borrowing and other expenses related to remarketing, administration and trustee services to a TOB are reported as expenses of the Trusts. The floating rate certificates have interest rates that generally reset weekly and their holders have the option

56 ANNUAL REPORT JULY 31, 2009

Notes to Financial Statements (continued)

to tender certificates to the TOB for redemption at par at each reset date. At of July 31, 2009, the aggregate value of the underlying municipal bonds transferred to TOBs, the related liability for trust certificates and the range of interest rates on the liability for trust certificates were as follows:

| California Investment
Quality | Underlying Municipal Bonds Transferred to TOBs — $ 2,087,028 | Liability for Trust Certificates — $ 1,232,883 | 0.24 % |
1.11 % |
| --- | --- | --- | --- | --- |
| California Income | $ 90,959,136 | $ 56,378,777 | 0.22 % |
1.58 % |
| Florida 2020 | $ 8,917,860 | $ 4,633,573 | 1.39 % |
1.58 % |
| Investment Quality | $ 6,336,003 | $ 3,524,110 | 0.22 % |
1.80 % |
| Municipal Income Investment | $ 40,418,178 | $ 22,228,764 | 0.22 % |
1.22 % |
| New Jersey Investment
Quality | $ 234,875 | $ 159,917 | | 0.41 % |
| New Jersey Income | $ 1,996,436 | $ 1,359,296 | | 0.41 % |
| New York Investment Quality | $ 112,458 | $ 69,974 | | 0.25 % |
| New York Income | $ 22,150,799 | $ 11,629,889 | 0.25 % |
1.29 % |

For the year ended July 31, 2009, the Trusts average trust certificates outstanding and the daily weighted average interest rate were as follows:

| California Investment
Quality | $ 483,440 | 1.37 % |
| --- | --- | --- |
| California Income | $ 31,342,970 | 1.60 % |
| Florida 2020 | $ 5,077,636 | 1.78 % |
| Investment Quality | $ 1,188,668 | 1.25 % |
| Municipal Income Investment | $ 8,268,486 | 1.11 % |
| New Jersey Investment
Quality | $ 131,218 | 2.82 % |
| New Jersey Income | $ 1,011,268 | 2.84 % |
| New York Investment Quality | $ 6,292 | 0.57 % |
| New York Income | $ 11,098,605 | 1.67 % |

Financial transactions executed through TOBs generally will underperform the market for fixed rate municipal bonds when short-term interest rates rise, but tend to outperform the market for fixed rate bonds when short-term interest rates decline or remain relatively stable. Should short-term interest rates rise, the Trusts investments in TOBs may adversely affect the Trusts investment income and distributions to Common Shareholders. Also, fluctuations in the market value of municipal bonds deposited into the TOB may adversely affect the Trusts net asset value per share.

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

Segregation and Collateralization: In cases in which the 1940 Act and the interpretive positions of the Securities and Exchange Commission (SEC) require that each Trust either receive collateral or segregate assets in connection with certain investments (e.g., financial futures contracts and swaps) each Trust will, consistent with SEC rules and/or certain interpretive letters issued by the SEC, segregate collateral or designate on its books and records cash or other liquid securities having a market value at least equal to the amount that would otherwise be required to be physically segregated. Furthermore, based on requirements and agreements with certain exchanges and third party broker-dealers, each party has requirements to deliver/deposit securities as collateral for certain investments (e.g., financial futures contracts and swaps). As part of these agreements, when the value of these investments achieves a previously agreed upon value (minimum transfer amount), each party may be required to deliver additional collateral.

Investment Transactions and Investment Income: For financial reporting purposes, investment transactions are recorded on the dates the transactions are entered into (the trade dates). Realized gains and losses on security transactions are determined on the identified cost basis. Dividend income is recorded on the ex-dividend dates. Interest income is recognized on the accrual method. Each Trust amortizes all premiums and discounts on debt securities.

Dividends and Distributions: Dividends from net investment income are declared and paid monthly. Distributions of capital gains are recorded on the ex-dividend dates. Dividends and distributions to Preferred Shareholders are accrued and determined as described in Note 7.

Income Taxes: It is each Trusts policy to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its taxable income to its shareholders. Therefore, no federal income tax provision is required.

Each Trust files US federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on Investment Quality Trusts and Income Trusts US federal tax returns remain open for the periods ended July 31, 2009 and 2008 and October 31, 2007 and 2006. The statutes of limitations on Florida 2020s US federal tax returns remain open for the periods ended July 31, 2009 and 2008 and December 31, 2007 and 2006. The statutes of limitations on the Trusts state and local tax returns may remain open for an additional year depending upon the jurisdiction.

Recent Accounting Pronouncement: In June 2009, Statement of Financial Accounting Standards No. 166,Accounting for Transfers of Financial Assets an amendment of FASB Statement No. 140 (FAS 166), was issued. FAS 166 is intended to improve the relevance, representational faithfulness and comparability of the information that a reporting entity provides in its financial statements about a transfer of financial assets; the effects of a transfer on its financial position, financial performance, and cash flows; and a transferors continuing involvement, if any, in transferred financial assets. FAS 166 is effective for financial statements issued for fiscal years and interim periods beginning after November 15, 2009. Earlier application is prohibited. The recognition and measurement provisions of FAS 166 must be applied to transfers occurring on or after the effective date. Additionally, the disclosure provisions of FAS 166 should be applied to transfers that occurred both before and after the effective date of FAS 166. The impact of FAS 166 on the Trusts statement disclosures, if any, is currently being assessed.

Deferred Compensation and BlackRock Closed-End Share Equivalent Investment Plan: Under the deferred compensation plan approved by each Trusts Board, non-interested Trustees (Independent Trustees) 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 other certain BlackRock Closed-End Funds

ANNUAL REPORT JULY 31, 2009 57

Notes to Financial Statements (continued)

selected by the Independent Trustees. This has approximately the same economic effect for the Independent Trustees as if the Independent Trustees had invested the deferred amounts directly in other certain BlackRock Closed-End Funds.

The deferred compensation plan is not funded and obligations thereunder represent general unsecured claims against the general assets of each Trust. Each Trust may, however, elect to invest in common shares of other certain BlackRock Closed-End Funds selected by the Independent Trustees in order to match its deferred compensation obligations. Investments to cover each Trusts deferred compensation liability are included in other assets in the Statements of Assets and Liabilities. Dividends and distributions from the BlackRock Closed-End Fund investments under the plan are included in income affiliated in the Statements of Operations.

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

2. Derivative Financial Instruments:

The Trusts may engage in various portfolio investment strategies both to increase the returns of the Trusts and to economically hedge, or protect, their exposure to interest rate movements and movements in the securities markets. Losses may arise if the value of the contract decreases due to an unfavorable change in the price of the underlying security, or if the counterparty does not perform under the contract. The Trusts may mitigate these losses through master netting agreements included within an International Swap and Derivatives Association, Inc. (ISDA) Master Agreement between the Trusts and their counterparties. The ISDA Master Agreement allows each Trust to offset with its counterparty each Trusts certain derivative financial instruments payables and/or receivables with collateral held. To the extent amounts due to the Trusts from their counterparties are not fully collateralized contractually or otherwise, the Trusts bear the risk of loss from counterparty non-performance. See Note 1 Segregation and Collateralization for information with respect to collateral practices.

The Trusts are subject to interest rate risk in the normal course of pursuing its investment objectives by investing in various derivative instruments, as described below.

Financial Futures Contracts: The Trusts may purchase or sell financial futures contracts and options on financial futures contracts to gain exposure to, or economically hedge against, changes in interest rates (interest rate risk). Financial futures contracts are contracts for delayed delivery of securities at a specific future date and at a specific price or yield. Pursuant to the contract, the Trusts agree to receive from, or pay to, the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as margin variation and are recognized by the Trusts as unrealized gains or losses. When the contract is closed, the Trusts record a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. The use of financial futures transactions involves the risk of an imperfect correlation in the movements in the price of financial futures contracts, interest rates and the underlying assets. Financial futures transactions involve minimal counterparty risk since financial futures contracts are guaranteed against default by the exchange on which they trade. Counterparty risk is also minimized by the daily margin variation.

Swaps: The Trusts may enter into swap agreements, in which a Trust and a counterparty agree to make periodic net payments on a specified notional amount. These periodic payments received or made by the Trusts are recorded in the Statements of Operations as realized gains or losses, respectively. Swaps are marked-to-market daily and changes in value are recorded as unrealized appreciation (depreciation). When the swap is terminated, the Trusts will record a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transaction and the Trusts basis in the contract, if any. Swap transactions involve, to varying degrees, elements of interest rate, credit and market risk in excess of the amounts recognized on the Statements of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform or disagree as to the meaning of the contractual terms in the agreements, and that there may be unfavorable changes in interest rates and/or market values associated with these transactions.

Forward interest rate swaps The Trusts may enter into forward interest rate swaps to manage duration, the yield curve or interest rate risk by economically hedging the value of the fixed rate bonds which may decrease when interest rates rise (interest rate risk). In a forward interest rate swap, each Trust and the counterparty agree to make periodic net payments on a specified notional contract amount, commencing on a specified future effective date, unless terminated earlier. The Trusts generally intend to close each forward interest rate swap before the effective date specified in the agreement and therefore avoid entering into the interest rate swap underlying each forward interest rate swap. The Trusts maximum risk of loss due to counterparty default is the amount of the unrealized gain on the contract.

58 ANNUAL REPORT JULY 31, 2009

Notes to Financial Statements (continued)

Derivatives Not Accounted for as Hedging Instruments under Financial Accounting Standards Board Statement of Financial Accounting Standards No. 133, Accounting for Derivative Instruments and Hedging Activities:


		Net
Realized Gain (Loss) From Derivatives Recognized in Income
California Investment Quality		California Income	Investment
Quality	New
York Investment Quality		New
York Income
Interest rate contracts:
Financial futures contracts	$ 5,894	$ 88,403		$	2,987	$ 26,881
Forward interest rate swaps			$ (46,216	)

	Net Change in Unrealized Appreciation on Derivatives Recognized in Income
	Investment Quality
Interest rate contracts:
Forward interest rate swaps	$ 31,016

As of July 31, 2009, there were no financial futures contracts or forward interest rate swaps outstanding. During the year ended July 31, 2009, the Trusts had limited activity in these transactions.

3. Investment Advisory Agreement and Other Transactions with Affiliates:

The PNC Financial Services Group, Inc. (PNC) and Bank of America Corporation (BAC) are the largest stockholders of BlackRock, Inc. (BlackRock). BAC became a stockholder of BlackRock following its acquisition of Merrill Lynch & Co., Inc. (Merrill Lynch) on January 1, 2009. Prior to that date, both PNC and Merrill Lynch were considered affiliates of the Trusts under the 1940 Act. Subsequent to the acquisition, PNC remains an affiliate, but due to the restructuring of Merrill Lynchs ownership interest of BlackRock, BAC is not deemed to be an affiliate under the 1940 Act.

Each Trust entered into an Investment Advisory Agreement with BlackRock Advisors, LLC (the Manager) the Trusts investment advisor, an indirect, wholly owned subsidiary of BlackRock, to provide investment advisory and administration services.

The Manager is responsible for the management of each Trusts portfolio and provides the necessary personnel, facilities, equipment and certain other services necessary to the operations of each Trust. For such services, each Trust pays the Manager a monthly fee at an annual rate of 0.35% for the Investment Quality Trusts, 0.60% for the Income Trusts and 0.50% for Florida 2020 of each Trusts average weekly net assets. Average weekly net assets is the average weekly value of each Trusts total assets minus the sum of its accrued liabilities.

The Manager has voluntarily agreed to waive a portion of the investment advisory fee on the Income Trusts as a percentage of average daily net assets as follows: 0.10% through July 31, 2009 and 0.05% through July 31, 2010. For the year ended July 31, 2009, the Manager waived the following amounts, which are included in fees waived by advisor in the Statements of Operations:

	Fees Waived by Manager
California Income	$ 318,685
Municipal Income Investment	$ 140,216
New Jersey Income	$ 154,597
New York Income	$ 262,789

The Manager has agreed to waive its advisory fees by the amount of investment advisory fees each Trust pays to the Manager indirectly through its investment in affiliated money market funds, which are included in fees waived by advisor in the Statements of Operations. For the year ended July 31, 2009, the amounts waived were as follows:

	Fees Waived by Manager
California Investment
Quality	$ 4,233
California Income	$ 53,490
Florida 2020	$ 24,898
Investment Quality	$ 4,629
Municipal Income Investment	$ 27,531
New Jersey Investment
Quality	$ 2,951
New Jersey Income	$ 37,782
New York Investment Quality	$ 1,856
New York Income	$ 15,989

Each Investment Quality Trust has an Administration Agreement with the Manager. The administration fee to the Manager is computed weekly and payable monthly based on an annual rate of 0.10% of each respective Trusts average weekly net assets for the Investment Quality Trusts.

ANNUAL REPORT JULY 31, 2009 59

Notes to Financial Statements (continued)

The Manager has entered into a separate sub-advisory agreement with BlackRock Financial Management, Inc. (BFM), an affiliate of the Manager, with respect to each Trust, under which the Manager pays BFM for services it provides, a monthly fee that is a percentage of the investment advisory fee paid by each Trust to the Manager.

For the year ended July 31, 2009, certain Trusts reimbursed the Manager for certain accounting services in the following amounts, which are included in accounting services in the Statements of Operations:

California Income	$ 5,874
Florida 2020	$ 2,295
Municipal Income Investment	$ 2,653
New Jersey Income	$ 3,004
New York Income	$ 5,017

Certain officers and/or trustees of the Trusts are officers and/or directors of BlackRock or its affiliates. The Trusts reimburse the Manager for compensation paid to the Trusts Chief Compliance Officer.

4. Investments:

Purchases and sales of investments, excluding short-term securities, for the year ended July 31, 2009 were as follows:

	Purchases	Sales
California Investment
Quality	$ 12,195,309	$ 12,761,936
California Income	$ 196,727,458	$ 171,181,495
Florida 2020	$ 10,621,714	$ 10,518,138
Investment Quality	$ 17,106,161	$ 16,975,599
Municipal Income Investment	$ 92,007,385	$ 87,874,263
New Jersey Investment
Quality	$ 5,505,396	$ 6,334,077
New Jersey Income	$ 42,551,565	$ 55,811,932
New York Investment Quality	$ 6,222,096	$ 6,144,517
New York Income	$ 47,745,443	$ 45,557,350

5. Income Tax Information:

Reclassifications: Accounting principles generally accepted in the United States of America require 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 net asset values per share. The following permanent differences as of July 31, 2009 attributable to amortization methods on fixed income securities and the tax classification of distributions received from a regulated investment company were reclassified to the following accounts:

Undistributed net investment income	California Investment Quality — $ 286		California Income — $ (33,224	Florida 2020 — $ 464
Accumulated net realized
loss	$ (286	)	$ 33,224	$ (464	)

| Undistributed net
investment income | Investment Quality — $ (1,550 | Municipal Income Investment — $ (6,530 | New
Jersey Investment Quality — $ (2,485 |
| --- | --- | --- | --- |
| Accumulated net realized
loss | $ 1,550 | $ 6,530 | $ 2,485 |

| Undistributed net investment income | New
Jersey Income — $ (560 | New
York Investment Quality — $ (4 | New
York Income — $ 11,758 | |
| --- | --- | --- | --- | --- |
| Accumulated
net realized loss | $ 560 | $ 4 | $ (11,758 | ) |

The tax character of distributions paid during the periods ended July 31, 2009 and 2008 and October 31, 2007 (December 31, 2007 for Florida 2020) were as follows:

	California Investment Quality	California Income	Florida 2020
Tax-exempt income
2009	$ 701,717	$ 14,514,352	$ 4,272,509
2008	$ 609,571	$ 13,255,742	$ 2,898,556
2007	$ 843,196	$ 18,399,053	$ 5,124,598
Ordinary income
2008		$ 485,697
2007			$ 5,472
Long-term capital gains
2007	$ 68,629		$ 308,097
Total
2009	$ 701,717	$ 14,514,352	$ 4,272,509
2008	$ 609,571	$ 13,741,439	$ 2,898,556
2007	$ 911,825	$ 18,399,053	$ 5,438,167

60 ANNUAL REPORT JULY 31, 2009

Notes to Financial Statements (continued)

	Investment Quality	Municipal Income Investment	New Jersey Investment Quality
Tax-exempt income
2009	$ 763,851	$ 6,810,822	$ 777,465
2008	$ 678,525	$ 5,850,358	$ 759,306
2007	$ 967,562	$ 8,128,970	$ 1,067,344
Ordinary income
2008			$ 39,919
Long-term capital gains
2007	$ 96,447		$ 55,732
Total
2009	$ 763,851	$ 6,810,822	$ 777,465
2008	$ 678,525	$ 5,850,358	$ 799,225
2007	$ 1,064,009	$ 8,128,970	$ 1,123,076

| | New
Jersey Income | New
York Investment Quality | New
York Income |
| --- | --- | --- | --- |
| Tax-exempt income | | | |
| 2009 | $ 8,174,670 | $ 1,125,603 | $ 13,424,262 |
| 2008 | $ 6,885,946 | $ 972,213 | $ 11,129,098 |
| 2007 | $ 9,372,085 | $ 1,446,723 | $ 14,996,361 |
| Ordinary income | | | |
| 2009 | | $ 516 | |
| 2008 | $ 417,360 | $ 14,189 | $ 507,700 |
| Long-term capital gains | | | |
| 2009 | | $ 9,508 | |
| 2008 | | $ 167,624 | |
| 2007 | | $ 26,367 | |
| Total | | | |
| 2009 | $ 8,174,670 | $ 1,135,627 | $ 13,424,262 |
| 2008 | $ 7,303,306 | $ 1,154,026 | $ 11,636,798 |
| 2007 | $ 9,372,085 | $ 1,473,090 | $ 14,996,361 |

As of July 31, 2009, the tax components of accumulated net losses were as follows:

| Undistributed tax-exempt
income | California Investment Quality — $ 104,564 | | California Income — $ 2,903,071 | | Florida 2020 — $ 1,793,810 | |
| --- | --- | --- | --- | --- | --- | --- |
| Undistributed ordinary
income | 5,017 | | | | | |
| Undistributed long-term net
capital gains or capital loss carryforwards | (71,669 | ) | (3,128,061 | ) | (567,168 | ) |
| Net unrealized losses* | (1,000,797 | ) | (22,353,187 | ) | (5,861,993 | ) |
| Total accumulated net
losses | $ (962,885 | ) | $ (22,578,177 | ) | $ (4,635,351 | ) |

| Undistributed tax-exempt
income | Investment Quality — $ 205,404 | | Municipal Income Investment — $ 675,657 | | New
Jersey Investment Quality — $ 185,935 | |
| --- | --- | --- | --- | --- | --- | --- |
| Undistributed ordinary
income | | | | | | |
| Undistributed long-term net
capital gains or capital loss carryforwards | (826,258 | ) | (1,811,388 | ) | (223,484 | ) |
| Net unrealized losses* | (1,826,159 | ) | (8,733,335 | ) | (1,656,107 | ) |
| Total accumulated net
losses | $ (2,447,013 | ) | $ (9,869,066 | ) | $ (1,693,656 | ) |

| Undistributed tax-exempt
income | New
Jersey Income — $ 1,088,600 | | New
York Investment Quality — $ 181,045 | | New
York Income — $ 3,051,801 | |
| --- | --- | --- | --- | --- | --- | --- |
| Undistributed ordinary
income | | | | | | |
| Undistributed long-term net
capital gains or capital loss carryforwards | (612,079 | ) | | | (3,256,290 | ) |
| Net unrealized losses* | (11,340,824 | ) | (1,116,452 | ) | (18,790,893 | ) |
| Total accumulated net
losses | $ (10,864,303 | ) | $ (935,407 | ) | $ (18,995,382 | ) |

The differences between book-basis and tax-basis net unrealized losses were attributable primarily to the tax deferral of losses on wash sales, the difference between book and tax amortization methods for premiums and discounts on fixed income securities, the deferral of post-October capital losses for tax purposes, the timing and recognition of partnership income, the difference between the book and tax treatment of residual interests in tender option bond trusts and the deferral of compensation to trustees.

As of July 31, 2009, the Funds had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates:

Expires	California Investment Quality	California Income	Florida 2020
2012		$ 1,807,297
2014		1,320,764
2015
2016	$ 71,669		$ 28,100
2017			539,068
Total	$ 71,669	$ 3,128,061	$ 567,168

ANNUAL REPORT JULY 31, 2009 61

Notes to Financial Statements (continued)

Expires	Investment Quality	Municipal Income Investment	New Jersey Investment Quality
2012		$ 518,297
2014
2015	$ 137,267	426,674
2016	389,530	866,417	$ 223,484
2017	299,461
Total	$ 826,258	$ 1,811,388	$ 223,484

| Expires | New
Jersey Income | New
York Income |
| --- | --- | --- |
| 2012 | $ 3,833 | $ 151,220 |
| 2014 | | |
| 2015 | 592,744 | |
| 2016 | 15,502 | 505,354 |
| 2017 | | 2,599,716 |
| Total | $ 612,079 | $ 3,256,290 |

6. Concentration, Market and Credit Risk:

Each Trust invests a substantial amount of its assets in issuers located in a single state or limited number of states. Please see the Schedules of Investments for concentration in specific states.

Many municipalities insure repayment of their bonds, which reduces the risk of loss due to issuer default. The market value of these bonds may fluctuate for other reasons, including market perception of the value of such insurance, and there is no guarantee that the insurer will meet its obligation.

In the normal course of business, the Trusts invest in securities and enter into transactions where risks exist due to fluctuations in the market (market risk) or failure of the issuer of a security to meet all its obligations (credit risk). The value of securities held by the Trusts may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Trusts; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations. Similar to credit risk, the Trusts may be exposed to counterparty risk, or the risk that an entity with which the Trusts have unsettled or open transactions may default. Financial assets, which potentially expose the Trusts to credit and counterparty risks, consist principally of investments and cash due from counterparties. The extent of the Trusts exposure to credit and counterparty risks with respect to these financial assets is approximated by their value recorded in the Trusts Statements of Assets and Liabilities.

7. Capital Share Transactions:

Each Investment Quality Trust is authorized to issue 200 million shares, including Preferred Shares, par value $0.01 per share, all of which were initially classified as Common Shares. There are an unlimited number of $0.001 par value common shares authorized for the Income Trusts and Florida 2020. Each Trusts Board is authorized, however, to reclassify any unissued shares of shares without approval of Common Shareholders. At July 31, 2009 the Common Shares owned by affiliates of the Manager for Florida 2020 was 8,028 shares.

Common Shares

During the year ended July 31, 2009, the period November 1, 2007 to July 31, 2008 and the year ended October 31, 2007 the shares issued and outstanding increased by the following amounts as a result of dividend reinvestment:

California Investment Quality		73
California Income	8,447	46,329	61,958
Municipal Income Investment	887	8,026	16,959
New Jersey Investment
Quality	562	3,040	1,972
New Jersey Income	36,407	31,657	39,482
New York Investment Quality		2,856	1,724
New York Income	48,952	44,125	56,191

Shares issued and outstanding for Florida 2020 and Investment Quality remained constant for the year ended July 31, 2009, the period ended July 31, 2008 and the year ended December 31, 2007 (October 31, 2007 for Investment Quality).

Preferred Shares

The Preferred Shares are redeemable at the option of each Trust, in whole or in part, on any dividend payment date at their liquidation preference per share plus any accumulated but unpaid dividends whether or not declared. The Preferred Shares are also subject to mandatory redemption at their liquidation preference plus any accumulated but unpaid dividends, whether or not declared, if certain requirements relating to the composition of the assets and liabilities of a Trust, as set forth in each Trusts Statement of Preferences or Articles Supplementary, as applicable (the Governing Instrument) are not satisfied.

From time to time in the future, each Trust that has issued Preferred Shares may affect repurchases of such shares at prices below its liquidation preferences as agreed upon by the Trust and seller. Each Trust also may redeem its respective Preferred Shares from time to time as provided in the applicable Governing Instrument. Each Trust intends to affect such redemptions and/or repurchases to the extent necessary to maintain applicable asset coverage requirements or for such other reasons as the Board may determine.

62 ANNUAL REPORT JULY 31, 2009

Notes to Financial Statements (continued)

The holders of Preferred Shares have voting rights equal to the holders of Common Shares (one vote per share) and will vote together with holders of Common Shares (one vote per share) as a single class. However, the holders of Preferred Shares, voting as a separate class, are also entitled to elect two Trustees for each Trust. In addition, the 1940 Act requires that along with approval by shareholders that might otherwise be required, the approval of the holders of a majority of any outstanding Preferred Shares, voting separately as a class would be required to (a) adopt any plan of reorganization that would adversely affect the Preferred Shares, (b) change a Trusts 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.

The Trusts had the following series of Preferred Shares outstanding, effective yields and reset frequency as of July 31, 2009:

| California Investment
Quality | W7 | 237 | 0.58 % | 7 |
| --- | --- | --- | --- | --- |
| California Income | T7 | 1,420 | 0.58 % | 7 |
| | R7 | 1,420 | 0.58 % | 7 |
| Florida 2020 | F7 | 1,716 | 0.52 % | 7 |
| Investment Quality | R7 | 183 | 0.58 % | 7 |
| Municipal Income Investment | T7 | 1,370 | 0.58 % | 7 |
| New Jersey Investment
Quality | T7 | 276 | 0.58 % | 7 |
| New Jersey Income | R7 | 2,364 | 0.58 % | 7 |
| New York Investment Quality | F7 | 389 | 0.52 % | 7 |
| New York Income | W7 | 1,890 | 0.58 % | 7 |
| | F7 | 1,890 | 0.52 % | 7 |

Dividends on 7-day Preferred Shares are cumulative at a rate, which is reset every 7 days based on the results of an auction. If the Preferred Shares fail to clear the auction on an auction date, the affected Trust is required to pay the maximum applicable rate on the Preferred Shares to holders of such shares for successive dividend periods until such time as the shares are successfully auctioned. The maximum applicable rate on all series of Preferred Shares is the higher of 110% of the AA commercial paper rate or 110% of 90% of the Kenny S&P 30-day High Grade Index rate divided by 1.00 minus the marginal tax rate. The low, high and average dividend rates on the Preferred Shares for each Trust for the year ended July 31, 2009 were as follows:

| California Investment
Quality | W7 | 0.38 % | 12.57 % | 1.89 % |
| --- | --- | --- | --- | --- |
| California Income | T7 | 0.40 % | 11.35 % | 1.88 % |
| | R7 | 0.35 % | 12.26 % | 1.84 % |
| Florida 2020 | F7 | 0.35 % | 11.73 % | 1.87 % |
| Investment Quality | R7 | 0.35 % | 12.26 % | 1.89 % |
| Municipal Income Investment | T7 | 0.40 % | 11.35 % | 1.89 % |
| New Jersey Investment
Quality | T7 | 0.40 % | 11.35 % | 1.83 % |
| New Jersey Income | R7 | 0.35 % | 12.26 % | 1.88 % |
| New York Investment Quality | F7 | 0.35 % | 11.73 % | 1.87 % |
| New York Income | W7 | 0.38 % | 12.57 % | 1.89 % |
| | F7 | 0.35 % | 11.73 % | 1.86 % |

Since February 13, 2008, the Preferred Shares of each Trust failed to clear any of their auctions. As a result, the Preferred Share dividend rates were reset to the maximum applicable rate that ranged from 0.35% to 12.57%. A failed auction is not an event of default for the Trusts but it has a negative impact on the liquidity of the Preferred Shares. A failed auction occurs when there are more sellers of a trusts auction rate Preferred Shares than buyers. It is impossible to predict how long this imbalance will last. A successful auction for each Trusts Preferred Shares may not occur for some time, if ever, and even if liquidity does resume, Preferred Shareholders may not have the ability to sell the Preferred Shares at their liquidation preference.

A Trust may not declare dividends or make other distributions on Common Shares or purchase any such shares if, at the time of the declaration, distribution or purchase, asset coverage with respect to the outstanding Preferred Shares is less than 200%.

Prior to December 22, 2008, the Trusts paid commissions to certain broker dealers at the end of each auction at an annual rate of 0.25%, calculated on the aggregate principal amount. As of December 22, 2008, commissions paid to broker-dealers on preferred shares that experienced a failed auction were reduced to 0.15% on the aggregate principal amount. The Trusts will pay commissions of 0.25% on the aggregate principal amount of all shares that successfully clear their auctions. Merrill Lynch, Pierce, Fenner & Smith, Incorporated, a wholly owned subsidiary of Merrill Lynch, earned commissions for the period August 1, 2008 to December 31, 2008 (after which time Merrill Lynch was no longer considered an affiliate) as follows:

California Income	$
Municipal Income Investment	$ 36,726
New Jersey Income	$ 18,367
New York Income	$ 61,654

During the year ended July 31, 2009, certain Trusts announced the following redemptions of Preferred Shares at a price of $25,000 per share plus any accrued and unpaid dividends through the redemption dates:

| California Investment
Quality | W7 | 7/09/09 | 36 | Aggregate Principal — $ 900,000 |
| --- | --- | --- | --- | --- |
| California Income | R7 | 7/10/09 | 598 | $ 14,950,000 |
| | T7 | 7/08/09 | 598 | $ 14,950,000 |
| Investment Quality | R7 | 7/10/09 | 102 | $ 2,550,000 |
| Municipal Income Investment | T7 | 7/08/09 | 612 | $ 15,300,000 |
| New Jersey Investment
Quality | T7 | 7/08/09 | 7 | $ 175,000 |
| New Jersey Income | R7 | 7/10/09 | 55 | $ 1,375,000 |
| New York Investment Quality | F7 | 7/13/09 | 3 | $ 75,000 |
| New York Income | F7 | 7/13/09 | 27 | $ 675,000 |
| | W7 | 7/09/09 | 27 | $ 675,000 |

ANNUAL REPORT JULY 31, 2009 63

Notes to Financial Statements (concluded)

During the year ended July 31, 2008, certain Trusts announced the following redemptions of Preferred Shares at a price of $25,000 per share plus any accrued and unpaid dividends through the redemption dates:

| California Investment
Quality | W7 | 6/26/08 | 27 | Aggregate Principal — $ 675,000 |
| --- | --- | --- | --- | --- |
| California Income | R7 | 6/27/08 | 621 | $ 15,525,000 |
| | T7 | 6/25/08 | 621 | $ 15,525,000 |
| Florida 2020 | F7 | 6/30/08 | 240 | $ 6,000,000 |
| Investment Quality | R7 | 6/27/08 | 55 | $ 1,375,000 |
| Municipal Income Investment | T7 | 6/25/08 | 320 | $ 8,000,000 |
| New Jersey Investment
Quality | T7 | 6/25/08 | 17 | $ 425,000 |
| New Jersey Income | R7 | 6/27/08 | 133 | $ 3,325,000 |
| New York Income | F7 | 6/30/08 | 278 | $ 6,950,000 |
| | W7 | 6/26/08 | 278 | $ 6,950,000 |

The Trusts financed the Preferred Share redemptions with cash received from TOB transactions.

Shares issued and outstanding remained constant for Florida 2020 during the year ended July 31, 2009, for New York Investment Quality for the period ended July 31, 2008 and for all Trusts during the year ended October 31, 2007 (December 31, 2007 for Florida 2020).

8. Plan of Reorganization:

On May 28, 2009, the Board of each of California Investment Quality and California Income approved an agreement and plan of reorganization for each of California Investment Quality and California Income, expected to be concluded in the fourth quarter of 2009, subject to shareholder approval and certain other conditions, whereby each of California Investment Quality, BlackRock California Municipal Income Trust II (BCL), BlackRock California Insured Municipal Income Trust (BCK) and BlackRock California Municipal Bond Trust (BZA) (each, a Target Fund) will merge with and into a new wholly owned subsidiary of California Income (each, a Reorganization). The outstanding Common Shares and Preferred Shares held by each Target Funds shareholders will be exchanged for Common Shares or Preferred Shares of California Income, respectively, pursuant to each Reorganization.

9. Subsequent Events:

Each Trust paid a net investment income dividend on September 1, 2009 to Common Shareholders of record on August 14, 2009 as follows:

| California Investment
Quality | $ 0.051500 |
| --- | --- |
| California Income | $ 0.075700 |
| Florida 2020 | $ 0.056000 |
| Investment Quality | $ 0.057000 |
| Municipal Income Investment | $ 0.075375 |
| New Jersey Investment
Quality | $ 0.061400 |
| New Jersey Income | $ 0.077600 |
| New York Investment Quality | $ 0.068200 |
| New York Income | $ 0.080000 |

The dividends declared on Preferred Shares for the period August 1, 2009 to August 31, 2009 were as follows:

| California Investment
Quality | W7 | $ 2,505 |
| --- | --- | --- |
| California Income | T7 | $ 14,839 |
| | R7 | $ 14,214 |
| Florida 2020 | F7 | $ 17,736 |
| Investment Quality | R7 | $ 1,858 |
| Municipal Income
Investment | T7 | $ 17,824 |
| New Jersey Investment
Quality | T7 | $ 2,943 |
| New Jersey Income | R7 | $ 23,997 |
| New York Investment Quality | F7 | $ 4,022 |
| New York Income | W7 | $ 19,973 |
| | F7 | $ 19,534 |

Managements evaluation of the impact of all subsequent events on the Trusts financial statements was completed through September 28, 2009, the date the financial statements were issued.

64 ANNUAL REPORT JULY 31, 2009

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Trustees/Directors of BlackRock California Investment Quality Municipal Trust Inc., BlackRock California Municipal Income Trust, BlackRock Florida Municipal 2020 Term Trust, BlackRock Investment Quality Municipal Income Trust, BlackRock Municipal Income Investment Trust, BlackRock New Jersey Investment Quality Municipal Trust Inc., BlackRock New Jersey Municipal Income Trust, BlackRock New York Investment Quality Municipal Trust Inc., and BlackRock New York Municipal Income Trust (collectively, the Trusts):

We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of BlackRock California Investment Quality Municipal Trust Inc., BlackRock California Municipal Income Trust, BlackRock Investment Quality Municipal Income Trust (formerly BlackRock Florida Investment Quality Municipal Trust), BlackRock Municipal Income Investment Trust (formerly BlackRock Florida Municipal Income Trust), BlackRock New Jersey Investment Quality Municipal Trust Inc., BlackRock New Jersey Municipal Income Trust, BlackRock New York Investment Quality Municipal Trust Inc., and BlackRock New York Municipal Income Trust as of July 31, 2009, and the related statements of operations for the year then ended, the statements of changes in net assets for the year then ended, for the period November 1, 2007 to July 31, 2008, and for the year ended October 31, 2007, the financial highlights for the respective periods presented, and the statement of cash flows for BlackRock California Municipal Income Trust for the year then ended. We have also audited the accompanying statement of assets and liabilities, including the schedule of investments, of BlackRock Florida Municipal 2020 Term Trust as of July 31, 2009, and the related statement of operations for the year then ended, the statements of changes in net assets for the year then ended, for the period January 1, 2008 to July 31, 2008, and for the year ended December 31, 2007, and the financial highlights for the respective periods presented. These financial statements and financial highlights are the responsibility of the Trusts management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Trusts are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Trusts internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of July 31, 2009, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of BlackRock California Investment Quality Municipal Trust Inc., BlackRock California Municipal Income Trust, BlackRock Investment Quality Municipal Income Trust, BlackRock Municipal Income Investment Trust, BlackRock New Jersey Investment Quality Municipal Trust Inc., BlackRock New Jersey Municipal Income Trust, BlackRock New York Investment Quality Municipal Trust Inc., and BlackRock New York Municipal Income Trust as of July 31, 2009, the results of their operations for the year then ended, the statements of changes in net assets for the year then ended, for the period November 1, 2007 to July 31, 2008, and for the year ended October 31, 2007, the financial highlights for the respective periods presented, and the statement of cash flows for BlackRock California Municipal Income Trust for the year then ended, in conformity with accounting principles generally accepted in the United States of America. Additionally, in our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of BlackRock Florida Municipal 2020 Term Trust as of July 31, 2009, the results of its operations for the year then ended, the statements of changes in net assets for the year then ended, for the period January 1, 2008 to July 31, 2008, and for the year ended December 31, 2007, and the financial highlights for the respective periods presented, in conformity with accounting principles generally accepted in the United States of America.

Deloitte & Touche LLP Princeton, New Jersey September 28, 2009

Important Tax Information (Unaudited)

The following table summarizes the taxable per share distributions paid by BlackRock New York Investment Quality Municipal Trust Inc. during the taxable year ended July 31, 2009.

Common Shares	12/15/08	12/31/08	$ 0.005106
Preferred Shares Series
F7	12/12/08	12/15/08	$ 7.180000

All of the net investment income distributions paid by BlackRock California Investment Quality Municipal Trust Inc., BlackRock California Municipal Income Trust, BlackRock Florida Municipal 2020 Term Trust, BlackRock Investment Quality Municipal Income Trust, BlackRock Municipal Income Investment Trust, BlackRock New Jersey Investment Quality Municipal Trust Inc., BlackRock New Jersey Municipal Income Trust, BlackRock New York Investment Quality Municipal Trust Inc. and BlackRock New York Municipal Income Trust during the taxable year ended July 31, 2009 qualify as tax-exempt interest dividends for federal income tax purposes.

ANNUAL REPORT JULY 31, 2009 65

D isclosure of Investment Advisory Agreements and Sub-Advisory Agreements

The Board of Directors or the Board of Trustees, as the case may be (each, a Board and, collectively, the Boards, the members of which are referred to as Board Members) of each of BlackRock California Investment Quality Municipal Trust, Inc. (RAA), BlackRock California Municipal Income Trust (BFZ), BlackRock Florida Municipal 2020 Term Trust (BFO), BlackRock Investment Quality Municipal Income Trust (RFA), BlackRock Municipal Income Investment Trust (BBF), BlackRock New Jersey Investment Quality Municipal Trust, Inc. (RNJ), BlackRock New Jersey Municipal Income Trust (BNJ), BlackRock New York Investment Quality Municipal Trust, Inc. (RNY), BlackRock New York Municipal Income Trust (BNY and, together with RAA, BFZ, BFO, RFA, BBF, RNJ, BNJ and RNY, each a Fund and, collectively, the Funds) met on April 14, 2009 and May 28 29, 2009 to consider the approval of its respective Funds investment advisory agreement (each, an Advisory Agreement) with BlackRock Advisors, LLC (the Manager), the Funds investment advisor. Each Board also considered the approval of the sub-advisory agreement (each, a Sub-Advisory Agreement) between its respective Fund, the Manager and BlackRock Financial Management, Inc. (the Sub-Advisor). The Manager and the Sub-Advisor are referred to herein as BlackRock. The Advisory Agreements and the Sub-Advisory Agreements are referred to herein as the Agreements. Unless otherwise indicated, references to actions taken by the Board or the Boards shall mean each Board acting independently with respect to its respective Fund.

Activities and Composition of the Boards

Each Board consists of twelve individuals, ten of whom are not interested persons as defined in the Investment Company Act of 1940, as amended (the 1940 Act) (the Independent Board Members). The Board Members of each Fund are responsible for the oversight of the operations of such Fund and perform the various duties imposed on the directors of investment companies by the 1940 Act. The Independent Board Members have retained independent legal counsel to assist them in connection with their duties. The Chairman of each Board is an Independent Board Member. Each Board has established five standing committees: an Audit Committee, a Governance and Nominating Committee, a Compliance Committee, a Performance Oversight Committee and an Executive Committee, each of which is composed of Independent Board Members (except for the Executive Committee, which has one interested Board Member) and is chaired by an Independent Board Member. In addition, each Board has established an Ad Hoc Committee on Auction Market Preferred Shares.

The Agreements

Pursuant to the 1940 Act, each Board is required to consider the continuation of the Agreements on an annual basis. In connection with this process, each Board assessed, among other things, the nature, scope and quality of the services provided to its respective Fund by the personnel of BlackRock and its affiliates, including investment management, administrative services, shareholder services, oversight of fund accounting and custody, marketing services and assistance in meeting legal and regulatory requirements.

Throughout the year, the Boards, acting directly and through their committees, considers at each of their meetings factors that are relevant to their annual consideration of the renewal of the Agreements, including the services and support provided by BlackRock to the Funds and their shareholders. Among the matters the Boards considered were: (a) investment performance for one-, three- and five-year periods, as applicable, against peer funds, and applicable benchmarks, if any, as well as senior management and portfolio managers analysis of the reasons for any underperformance against its peers; (b) fees, including advisory fees, administration fees with respect to RNJ, RAA, RFA and RNY, and other amounts paid to BlackRock and its affiliates by the Funds for services such as call center and fund accounting; (c) the Funds operating expenses; (d) the resources devoted to, and compliance reports relating to, the Funds investment objectives, policies and restrictions; (e) the Funds compliance with their Code of Ethics and compliance policies and procedures; (f) the nature, cost and character of non-investment management services provided by BlackRock and its affiliates; (g) BlackRocks and other service providers internal controls; (h) BlackRocks implementation of the proxy voting policies approved by the Boards; (i) execution quality of portfolio transactions; (j) BlackRocks implementation of the Funds valuation and liquidity procedures; and (k) periodic updates on BlackRocks business.

Board Considerations in Approving the Agreements

The Approval Process: Prior to the April 14, 2009 meeting, each Board requested and received materials specifically relating to the Agreements. Each Board is engaged in an ongoing process with BlackRock to continuously review the nature and scope of the information provided to better assist their deliberations. The materials provided in connection with the April meeting included: (a) information independently compiled and prepared by Lipper, Inc. (Lipper) on Fund fees and expenses, and the investment performance of each Fund as compared with a peer group of funds as determined by Lipper and a customized peer group selected by BlackRock, as applicable (collectively, Peers); (b) information on the profitability of the Agreements to BlackRock and a discussion of fall-out benefits to BlackRock and its affiliates and significant shareholders; (c) a general analysis provided by BlackRock concerning investment advisory fees charged to other clients, such as institutional and open-end funds, under similar investment mandates, as well as the performance of such other clients; (d) the impact of economies of scale; (e) a summary of aggregate amounts paid by each Fund to BlackRock; and (f) an internal comparison of management fees classified by Lipper, if applicable.

At an in-person meeting held on April 14, 2009, each Board reviewed materials relating to its consideration of the Agreements. As a result of the discussions that occurred during the April 14, 2009 meeting, the Boards presented BlackRock with questions and requests for additional information and BlackRock responded to these requests with additional written information in advance of the May 28 29, 2009 Board meeting.

At an in-person meeting held on May 28 29, 2009, each Funds Board, including the Independent Board Members, unanimously approved the continuation of the Advisory Agreement between the Manager and such Fund and the Sub-Advisory Agreement between such Fund, the Manager and the Sub-Advisor, each for a one-year term ending June 30, 2010. The Boards considered all factors they believed relevant with respect to the Funds, including, among other factors: (a) the nature, extent and quality of the

66 ANNUAL REPORT JULY 31, 2009

Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements (continued)

services provided by BlackRock; (b) the investment performance of the Funds and BlackRock portfolio management; (c) the advisory fee and the cost of the services and profits to be realized by BlackRock and certain affiliates from the relationship with the Funds; (d) economies of scale; and (e) other factors.

Each Board also considered other matters it deemed important to the approval process, such as services related to the valuation and pricing of its respective Funds portfolio holdings, direct and indirect benefits to BlackRock and its affiliates from their relationship with such Fund and advice from independent legal counsel with respect to the review process and materials submitted for the Boards review. The Boards noted the willingness of BlackRock personnel to engage in open, candid discussions with the Boards. The Boards did not identify any particular information as controlling, and each Board Member may have attributed different weights to the various items considered.

A. Nature, Extent and Quality of the Services: Each Board, including its Independent Board Members, reviewed the nature, extent and quality of services provided by BlackRock, including the investment advisory services and the resulting performance of its respective Fund. Throughout the year, each Board compared its respective Funds performance to the performance of a comparable group of closed-end funds, and the performance of at least one relevant benchmark, if any. The Boards met with BlackRocks senior management personnel responsible for investment operations, including the senior investment officers. Each Board also reviewed the materials provided by its respective Funds portfolio management team discussing such Funds performance and such Funds investment objective, strategies and outlook.

Each Board considered, among other factors, the number, education and experience of BlackRocks investment personnel generally and its respective Funds portfolio management team, investments by portfolio managers in the funds they manage, BlackRocks portfolio trading capabilities, BlackRocks use of technology, BlackRocks commitment to compliance and BlackRocks approach to training and retaining portfolio managers and other research, advisory and management personnel. Each Board also reviewed a general description of BlackRocks compensation structure with respect to its respective Funds portfolio management team and BlackRocks ability to attract and retain high-quality talent.

In addition to advisory services, each Board considered the quality of the administrative and non-investment advisory services provided to its respective Fund. BlackRock and its affiliates provide the Funds with certain administrative and other services (in addition to any such services provided to the Funds by third parties) and officers and other personnel as are necessary for the operations of the Funds. In addition to investment advisory services, BlackRock and its affiliates provide the Funds with other services, including: (i) preparing 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 the Funds; (iii) assisting with daily accounting and pricing; (iv) preparing periodic filings with regulators and stock exchanges; (v) overseeing and coordinating the activities of other service providers; (vi) organizing Board meetings and preparing the materials for such Board meetings; (vii) providing legal and compliance support; and (viii) performing other administrative functions necessary for the operation of the Funds, such as tax reporting, fulfilling regulatory filing requirements, and call center services. The Boards reviewed the structure and duties of BlackRocks fund administration, accounting, legal and compliance departments and considered BlackRocks policies and procedures for assuring compliance with applicable laws and regulations.

B. The Investment Performance of the Funds and BlackRock: Each Board, including its Independent Board Members, also reviewed and considered the performance history of its respective Fund. In preparation for the April 14, 2009 meeting, the Boards were provided with reports, independently prepared by Lipper, which included a comprehensive analysis of each Funds performance. The Boards also reviewed a narrative and statistical analysis of the Lipper data that was prepared by BlackRock, which analyzed various factors that affect Lippers rankings. In connection with its review, each Board received and reviewed information regarding the investment performance of its respective Fund as compared to a representative group of similar funds as determined by Lipper and to all funds in such Funds applicable Lipper category and customized peer group selected by BlackRock, as applicable. Each Board was provided with a description of the methodology used by Lipper to select peer funds. Each Board regularly reviews the performance of its respective Fund throughout the year.

The Board of RAA noted that RAA performed below the median of its customized Lipper peer group composite in the one-, three- and five-year periods reported. The Board of RAA and BlackRock reviewed the reasons for RAAs underperformance during these periods compared with its Peers. The Board of RAA was informed that, among other things, although RAAs non-competitive yield distribution continues to hinder performance, progress has been made with respect to RAAs duration management and credit selection components.

The Board of BFO noted that BFO performed below the median of its Lipper performance universe composite in the one- and three-year periods reported and BFO performed above the median of its Lipper performance universe composite in the five-year period reported. The Board of BFO and BlackRock reviewed the reasons for BFOs underperformance during these periods compared with its Peers. The Board of BFO was informed that, among other things, performance was heavily influenced by BFOs sector allocation with volatile market movement last year.

The Board of RFA noted that RFA performed below the median of its customized Lipper peer group composite in the one-, three- and five-year periods reported. The Board of RFA and BlackRock reviewed the reasons for RFAs underperformance during these periods compared with its Peers. The Board of RFA was informed that, among other things, overweight positions in the hospital and housing sectors and poor performance of some insured and AMT bonds held by RFA negatively impacted RFAs performance.

The Board of RNJ noted that RNJ performed below the median of its Lipper performance universe composite in the three- and five-year periods reported and RNJ performed above the median of its Lipper performance universe

ANNUAL REPORT JULY 31, 2009 67

Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements (continued)

composite in the one-year period reported. The Board of RNJ and BlackRock reviewed the reasons for RNJs underperformance during these periods compared with its Peers. The Board of RNJ was informed that, among other things, RNJs overweight positions in the hospital and housing sectors and poor performance of some insured and AMT bonds held by RNJ negatively impacted RNJs performance.

For RAA, BFO, RFA and RNJ, the Board of each respective Fund and BlackRock discussed BlackRocks commitment to providing the resources necessary to assist the portfolio managers and to improve each such Funds performance.

The Boards of BFZ, BBF, RNY and BNY noted that, in general, BFZ, BBF, RNY and BNY performed better than their respective Peers in that the performance of each of BFZ, BBF, RNY and BNY were at or above the median of their respective customized Lipper peer group composite in each of the one-, three- and five-year periods reported.

The Board of BNJ noted that, in general, BNJ performed better than its Peers in that BNJs performance was at or above the median of its Lipper performance universe composite in each of the one-, three- and five-year periods reported.

C. Consideration of the Advisory Fees and the Cost of the Services and Profits to be Realized by BlackRock and its Affiliates from their Relationship with the Funds : Each Board, including its Independent Board Members, reviewed its respective Funds contractual advisory fee rates compared with the other funds in its respective Lipper category. Each Board also compared its respective Funds total expenses, as well as actual management fees, to those of other comparable funds. Each Board considered the services provided and the fees charged by BlackRock to other types of clients with similar investment mandates, including separately managed institutional accounts.

The Boards received and reviewed statements relating to BlackRocks financial condition and profitability with respect to the services it provided the Funds. The Boards were also provided with a profitability analysis that detailed the revenues earned and the expenses incurred by BlackRock for services provided to the Funds. The Boards reviewed BlackRocks profitability with respect to the Funds and other funds the Boards currently oversee for the year ended December 31, 2008 compared to available aggregate profitability data provided for the year ended December 31, 2007. The Boards reviewed BlackRocks profitability with respect to other fund complexes managed by the Manager and/or its affiliates. The Boards reviewed BlackRocks assumptions and methodology of allocating expenses in the profitability analysis, noting the inherent limitations in allocating costs among various advisory products. The Boards recognized that profitability may be affected by numerous factors including, among other things, fee waivers by the Manager, the types of funds managed, expense allocations and business mix, and therefore comparability of profitability is somewhat limited.

The Boards noted that, in general, individual fund or product line profitability of other advisors is not publicly available. Nevertheless, to the extent such information is available, the Boards considered BlackRocks overall operating margin compared to the operating margin for leading investment management firms whose operations include advising closed-end funds, among other product types. The comparison indicated that operating margins for BlackRock with respect to its registered funds are consistent with margins earned by similarly situated publicly traded competitors. In addition, the Boards considered, among other things, certain third-party data comparing BlackRocks operating margin with that of other publicly-traded asset management firms, which concluded that larger asset bases do not, in themselves, translate to higher profit margins.

In addition, the Boards considered the cost of the services provided to the Funds by BlackRock, and BlackRocks and its affiliates profits relating to the management and distribution of the Funds and the other funds advised by BlackRock and its affiliates. As part of their analysis, the Boards reviewed BlackRocks methodology in allocating its costs to the management of the Funds. The Boards also 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 Boards.

Each Board noted that its respective Fund paid contractual management fees, which do not take into account any expense reimbursement or fee waivers, lower than or equal to the median contractual management fees paid by such Funds Peers.

D. Economies of Scale: Each Board, including its Independent Board Members, considered the extent to which economies of scale might be realized as the assets of its respective Fund increase and whether there should be changes in the advisory fee rate or structure in order to enable such Fund to participate in these economies of scale, for example through the use of breakpoints in the advisory fee based upon the assets of such Fund. The Boards considered that the funds in the BlackRock fund complex share some common resources and, as a result, an increase in the overall size of the complex could permit each fund to incur lower expenses than it would otherwise as a stand-alone entity. The Boards also considered BlackRocks overall operations and its efforts to expand the scale of, and improve the quality of, its operations.

The Boards noted that most closed-end fund complexes do not have fund level breakpoints because closed-end funds generally do not experience substantial growth after the initial public offering and each fund is managed independently consistent with its own investment objectives. The Boards noted that only one closed-end fund in the Fund Complex has breakpoints in its fee structure. Information provided by Lipper also revealed that only one closed-end fund complex used a complex-level breakpoint structure.

E. Other Factors: The Boards also took into account other ancillary or fallout benefits that BlackRock or its affiliates and significant shareholders may derive from their relationship with the Funds, both tangible and intangible, such as BlackRocks ability to leverage its investment professionals who manage other portfolios, an increase in BlackRocks profile in the investment advisory community, and the engagement of BlackRocks affiliates as service providers to the Funds, including for administrative and distribution services. The Boards also noted that BlackRock may use third-party research obtained by soft dollars generated by certain mutual fund transactions to assist itself in managing all or a number of its other client accounts.

68 ANNUAL REPORT JULY 31, 2009

Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements (concluded)

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

Conclusion

Each Board, including its Independent Board Members, unanimously approved the continuation of the Advisory Agreement between its respective Fund and the Manager for a one-year term ending June 30, 2010 and the Sub-Advisory Agreement between such Fund, the Manager and Sub-Advisor for a one-year term ending June 30, 2010. Based upon its evaluation of all these factors in their totality, each Board, including its Independent Board Members, was satisfied that the terms of the Agreements were fair and reasonable and in the best interest of its respective Fund and its shareholders. In arriving at a decision to approve the Agreements, each 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. The contractual fee arrangements for each Fund reflects the results of several years of review by such Funds Board Members and predecessor Board Members, and discussions between such Board Members (and predecessor Board Members) and BlackRock. Certain aspects of the arrangements may be the subject of more attention in some years than in others, and the Board Members conclusions may be based in part on their consideration of these arrangements in prior years.

ANNUAL REPORT JULY 31, 2009 69

A utomatic Dividend Reinvestment Plan

Pursuant to each Trusts Dividend Reinvestment Plan (the Plan), common shareholders are automatically enrolled to have all distributions of dividends and capital gains reinvested by Computershare Trust Company, N.A. (the Plan Agent) in the respective Trusts shares pursuant to the Plan. Shareholders who elect not to participate in the 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 or other nominee name, then to the nominee) by the Plan Agent, which serves as agent for the shareholders in administering the Plan.

At present, after Florida 2020 declares a dividend or determines to make a capital gain distribution, the Plan Agent will acquire shares for the participants account, by the purchase of outstanding shares on the open market, on the Trusts primary exchange or elsewhere (open market purchases).

After the Investment Quality Trusts and Income Trusts declare a dividend or determine to make a capital gain distribution, the Plan Agent will acquire shares for the participants accounts, depending upon the circumstances described below, either (i) through receipt of unissued but authorized shares from the Trust (newly issued shares) or (ii) by open market purchases. If, on the dividend payment date, the net asset value per share (NAV) is equal to or less than the market price per share plus estimated brokerage commissions (such condition being referred to herein as market premium), the Plan Agent will invest the dividend amount in newly issued shares 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 payment date, the dollar amount of the dividend will be divided by 95% of the market price on the payment date. If, on the dividend payment date, the NAV is greater than the market value per share plus estimated brokerage commissions (such condition being referred to herein as market discount), the Plan Agent will invest the dividend amount in shares acquired on behalf of the participants in open market purchases.

Participation in the Plan is completely voluntary and may be terminated or resumed at any time without penalty by notice if received and processed by the Plan Agent prior to the dividend record date; otherwise such termination or resumption will be effective with respect to any subsequently declared dividend or other distribution.

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

Each Trust reserves the right to amend or terminate the Plan. There is no direct service charge to participants in the Plan, however, each Trust reserves the right to amend the Plan to include a service charge payable by the participants. Participants that request a sale of shares through the Plan Agent are subject to a $2.50 sales fee and a $0.15 per share sold brokerage commission. All correspondence concerning the Plan should be directed to the Plan Agent at P.O. Box 43078, Providence, RI 02940-3078 or by calling (800) 699-1BFM. All overnight correspondence should be directed to the Plan Agent at 250 Royall Street, Canton, MA 02021.

70 ANNUAL REPORT JULY 31, 2009

O fficers and Trustees

| Name, Address and Year of Birth | Position(s) Held with Trusts | Length of Time Served as a Trustee 2 | Principal Occupation(s) During Past
Five Years | Number of BlackRock- Advised Funds and Portfolios Overseen | Public Directorships |
| --- | --- | --- | --- | --- | --- |
| Non-Interested
Trustees 1 | | | | | |
| Richard E. Cavanagh 40 East 52nd
Street New York, NY 10022 1946 | Chairman of the Board and Trustee | Since 1994 | Trustee, Aircraft Finance Trust since 1999; Director,
The Guardian Life Insurance Company of America since 1998; Trustee,
Educational Testing Service from 1997 to 2009 and Chairman from 2005 to 2009;
Senior Advisor, The Fremont Group since 2008 and Director thereof since 1996;
Adjunct Lecturer, Harvard University since 2007; President and Chief
Executive Officer of The Conference Board, Inc. (global business research
organization) from 1995 to 2007. | 104 Funds 101 Portfolios | Arch Chemical (chemical and allied products) |
| Karen P. Robards 40 East 52nd
Street New York, NY 10022 1950 | Vice Chair of the Board, Chair of the Audit Committee and Trustee | Since 2007 | Partner of Robards & Company, LLC (financial
advisory firm) since 1987; Co-founder and Director of the Cooke Center for
Learning and Development, (a not-for-profit organization) since 1987;
Director of Enable Medical Corp. from 1996 to 2005. | 104 Funds 101 Portfolios | AtriCure, Inc. (medical devices); Care Investment
Trust, Inc. (health care real estate investment trust) |
| G. Nicholas Beckwith, III 40 East 52nd
Street New York, NY 10022 1945 | Trustee | Since 2007 | Chairman and Chief Executive Officer, Arch Street
Management, LLC (Beckwith Family Foundation) and various Beckwith property
companies since 2005; Chairman of the Board of Directors, University of
Pittsburgh Medical Center since 2002; Board of Directors, Shady Side Hospital
Foundation since 1977; Board of Directors, Beckwith Institute for Innovation
In Patient Care since 1991; Member, Advisory Council on Biology and Medicine,
Brown University since 2002; Trustee, Claude Worthington Benedum Foundation
(charitable foundation) since 1989; Board of Trustees, Chatham University
since 1981; Board of Trustees, University of Pittsburgh since 2002; Emeritus
Trustee, Shady Side Academy since 1977; Chairman and Manager, Penn West
Industrial Trucks LLC (sales, rental and servicing of material handling
equipment) from 2005 to 2007; Chairman, President and Chief Executive
Officer, Beckwith Machinery Company (sales, rental and servicing of
construction and equipment) from 1985 to 2005; Member of the Board of
Directors, National Retail Properties (REIT) from 2006 to 2007. | 104 Funds 101 Portfolios | None |
| Kent Dixon 40 East 52nd
Street New York, NY 10022 1937 | Trustee and Member of the Audit Committee | Since 1988 | Consultant/Investor since 1988. | 104 Funds 101 Portfolios | None |
| Frank J. Fabozzi 40 East 52nd
Street New York, NY 10022 1948 | Trustee and Member of the Audit Committee | Since 1988 | Consultant/Editor of The Journal of Portfolio
Management since 2006; Professor in the Practice of Finance and Becton
Fellow, Yale University, School of Management, since 2006; Adjunct Professor
of Finance and Becton Fellow, Yale University from 1994 to 2006. | 104 Funds 101 Portfolios | None |
| Kathleen F. Feldstein 40 East 52nd
Street New York, NY 10022 1941 | Trustee | Since 2005 | President of Economics Studies, Inc. (private
economic consulting firm) since 1987; Chair, Board of Trustees, McLean
Hospital from 2000 to 2008 and Trustee Emeritus thereof since 2008; Member of
the Board of Partners Community Healthcare, Inc. since 2005; Member of the
Corporation of Partners HealthCare since 1995; Trustee, Museum of Fine Arts,
Boston since 1992; Member of the Visiting Committee to the Harvard University
Art Museum since 2003. | 104 Funds 101 Portfolios | The McClatchy Company (publishing) |
| James T. Flynn 40 East 52nd
Street New York, NY 10022 1939 | Trustee | Since 2007 | Chief Financial Officer of JPMorgan & Co., Inc.
from 1990 to 1995. | 104 Funds 101 Portfolios | None |
| Jerrold B. Harris 40 East 52nd
Street New York, NY 10022 1942 | Trustee | Since 2007 | Trustee, Ursinus College since 2000; Director,
Troemner LLC (scientific equipment) since 2000. | 104 Funds 101 Portfolios | BlackRock Kelso Capital Corp. |

ANNUAL REPORT JULY 31, 2009 71

Officers and Trustees (continued)

| Name, Address and Year of Birth | Position(s) Held with Trusts | | Principal Occupation(s) During Past
Five Years | Number of BlackRock- Advised Funds and Portfolios Overseen | Public Directorships |
| --- | --- | --- | --- | --- | --- |
| Non-Interested
Trustees 1 (concluded) | | | | | |
| R. Glenn Hubbard 40 East 52nd
Street New York, NY 10022 1958 | Trustee | Since 2004 | Dean, Columbia Business School since 2004; Columbia
faculty member since 1988; Co-Director, Columbia Business Schools
Entrepreneurship Program from 1997 to 2004; Visiting Professor, John F.
Kennedy School of Government at Harvard University and the Harvard Business
School since 1985 and at the University of Chicago since 1994; Chairman, U.S.
Council of Economic Advisers under the President of the United States from
2001 to 2003. | 104 Funds 101 Portfolios | ADP (data and information services); KKR Financial
Corporation (finance); Metropolitan Life Insurance Company (insurance) |
| W. Carl Kester 40 East 52nd
Street New York, NY 10022 1951 | Trustee and Member of the Audit Committee | Since 2007 | George Fisher Baker Jr. Professor of Business
Administration, Harvard Business School; Deputy Dean for Academic Affairs
since 2006; Unit Head, Finance, Harvard Business School from 2005 to 2006;
Senior Associate Dean and Chairman of the MBA Program of Harvard Business
School from 1999 to 2005; Member of the faculty of Harvard Business School
since 1981; Independent Consultant since 1978. | 104 Funds 101 Portfolios | None |
| | 1 | Trustees serve until their resignation, removal or
death, or until December 31 of the year in which they turn 72. | | | |
| | 2 | Date shown is the earliest date a person has served
for any of the Trusts covered by this annual report. Following the
combination of Merrill Lynch Investment Managers, L.P. (MLIM) and
BlackRock, Inc. (BlackRock) in September 2006, the various legacy MLIM and
legacy BlackRock Fund boards were realigned and consolidated into three new
Fund boards in 2007. As a result, although the chart shows trustees as
joining the Trusts board in 2007, each trustee first became a member of the
board of directors of other legacy MLIM or legacy BlackRock Funds as follows:
G. Nicholas Beckwith, III, 1999; Richard E. Cavanagh, 1994; Kent Dixon, 1988;
Frank J. Fabozzi, 1988; Kathleen F. Feldstein, 2005; James T. Flynn, 1996;
Jerrold B. Harris, 1999; R. Glenn Hubbard, 2004; W. Carl Kester, 1995 and
Karen P. Robards, 1998. | | | |
| Interested
Trustees 3 | | | | | |
| Richard S. Davis 40 East 52nd
Street New York, NY 10022 1945 | Trustee | Since 2007 | Managing Director, BlackRock, Inc. since 2005; Chief
Executive Officer, State Street Research & Management Company from 2000
to 2005; Chairman of the Board of Trustees, State Street Research Mutual
Funds from 2000 to 2005; Chairman, SSR Realty from 2000 to 2004. | 173 Funds 283 Portfolios | None |
| Henry Gabbay 40 East 52nd
Street New York, NY 10022 1947 | Trustee | Since 2007 | Consultant, BlackRock, Inc. from 2007 to 2008;
Managing Director, BlackRock, Inc. from 1989 to 2007; Chief Administrative
Officer, BlackRock Advisors, LLC from 1998 to 2007; President of BlackRock
Funds and BlackRock Bond Allocation Target Shares from 2005 to 2007;
Treasurer of certain closed-end Funds in the BlackRock fund complex from 1989
to 2006. | 173 Funds 283 Portfolios. | None |
| | 3 | Mr. Davis is an interested person, as defined in
the Investment Company Act of 1940, of the Trusts based on his position with
BlackRock, Inc. and its affiliates. Mr. Gabbay is an interested person of
the Trusts based on his former positions with BlackRock, Inc. and its
affiliates as well as his ownership of BlackRock, Inc. and PNC securities.
Trustees serve until their resignation, removal or death, or until December
31 of the year in which they turn 72. | | | |

72 ANNUAL REPORT JULY 31, 2009

Officers and Trustees (concluded)

| Name, Address and Year of Birth | Position(s) Held with Trusts | Length of Time Served | Principal Occupation(s) During Past
Five Years |
| --- | --- | --- | --- |
| Trusts
Officers 1 | | | |
| Donald C. Burke 40 East 52nd
Street New York, NY 10022 1960 | President and Chief Executive Officer | Since 2007 | Managing Director of BlackRock, Inc. since 2006;
Managing Director of Merrill Lynch Investment Managers, L.P. (MLIM) and
Fund Asset Management, L.P. (FAM) in 2006, First Vice President thereof
from 1997 to 2005, Treasurer thereof from 1999 to 2006 and Vice President
thereof from 1990 to 1997. |
| Anne F. Ackerley 40 East 52nd
Street New York, NY 10022 1962 | Vice President | Since 2003 | Managing Director of BlackRock, Inc. since 2000; Vice
President of BlackRock-advised funds from 2007 to 2009; Chief Operating
Officer of BlackRocks Account Management Group (AMG) since 2009; Chief
Operating Officer of BlackRocks U.S. Retail Group since 2006 to 2009; Head
of BlackRocks Mutual Fund Group from 2000 to 2006. |
| Neal J. Andrews 40 East 52nd
Street New York, NY 10022 1966 | Chief Financial Officer | Since 2007 | Managing Director of BlackRock, Inc. since 2006;
Formerly Senior Vice President and Line of Business Head of Fund Accounting
and Administration at PNC Global Investment Servicing (U.S.) Inc. from 1992
to 2006. |
| Jay M. Fife 40 East 52nd
Street New York, NY 10022 1970 | Treasurer | Since 2007 | Managing Director of BlackRock, Inc. since 2007 and
Director in 2006; Formerly Assistant Treasurer of the MLIM/FAM- advised Funds
from 2005 to 2006; Director of MLIM Fund Services Group from 2001 to 2006. |
| Brian P. Kindelan 40 East 52nd
Street New York, NY 10022 1959 | Chief Compliance Officer | Since 2007 | Chief Compliance Officer of the BlackRock-advised
Funds since 2007; Managing Director and Senior Counsel of BlackRock, Inc.
since 2005; Formerly Director and Senior Counsel of BlackRock Advisors, LLC
from 2001 to 2004. |
| Howard B. Surloff 40 East 52nd
Street New York, NY 10022 1965 | Secretary | Since 2007 | Managing Director of BlackRock, Inc. and General
Counsel of U.S. Funds at BlackRock, Inc. since 2006; Formerly General Counsel
(U.S.) of Goldman Sachs Asset Management, L.P. from 1993 to 2006. |
| | 1 Officers of the Trusts serve at the pleasure of the Board of Trustees. | | |

| Investment
Advisor BlackRock Advisors, LLC Wilmington, DE 19809 | |
| --- | --- |
| Custodian State Street Bank and Trust Company Boston, MA 02101 | |
| Sub-Advisor BlackRock Financial Management, Inc. New York, NY 10022 | |
| Transfer
Agent Common Shares: Computershare Trust Company, N.A. Providence, RI 02940 | |
| Auction
Agent: BNY Mellon Shareowner Services 2 Jersey City, NJ 07310 Deutsche Bank Trust Company Americas 3 New York, NY 10005 | |
| Accounting
Agent State Street Bank and Trust Company Princeton, NJ 08540 | |
| Independent
Registered Public Accounting Firm Deloitte & Touche LLP Princeton, NJ 08540 | |
| Legal
Counsel Skadden, Arps, Slate, Meagher & Flom LLP New York, NY 10036 | |
| Address of
the Trusts BlackRock Closed-End Funds c/o BlackRock Advisors, LLC 100 Bellevue Parkway Wilmington, DE 19809 | |
| 2 | For the Income Trusts and Florida Municipal 2020 Term
Trust |
| 3 | For the Investment Quality Trusts |

| Effective July 31, 2009,
Donald C. Burke, President and Chief Executive Officer of the Trusts retired.
The Trusts Boards of Trustees wish Mr. Burke well in his retirement. |
| --- |
| Effective August 1, 2009,
Anne F. Ackerley became President and Chief Executive Officer of the Trusts,
and Brendan Kyne became Vice President of the Trusts. |

ANNUAL REPORT JULY 31, 2009 73

Additional Information
General Information

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

Other than the revisions discussed in Board Approvals on page 75, there were no material changes in the Trusts investment objectives or policies or to the Trusts charters or by-laws that were not approved by the shareholders or in the principal risk factors associated with investment in the Trusts. There have been no changes in the persons who are primarily responsible for the day-to-day management of the Trusts portfolio.

Quarterly performance, semi-annual and annual reports and other information regarding the Trusts may be found on BlackRocks website, which can be accessed at http://www.blackrock.com. This reference to BlackRocks website is intended to allow investors public access to information regarding the Trusts and does not, and is not intended to, incorporate BlackRocks website into this report.

Electronic Delivery

Electronic copies of most financial reports are available on the Trusts websites or shareholders can sign up for e-mail notifications of quarterly statements, annual and semi-annual reports by enrolling in the Trusts electronic delivery program.

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

Please contact your financial advisor to enroll. Please note that not all investment advisors, banks or brokerages may offer this service.

Householding

The Trusts will mail only one copy of shareholder documents, including annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called householding and it 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 contact the Trusts at (800) 441-7762.

Availability of Quarterly Schedule of Investments

Each Trust files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Trusts Forms N-Q are available on the SECs website at http://www.sec.gov and may also be reviewed and copied at the SECs Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling (202) 551-8090. Each Trusts Forms N-Q may also be obtained upon request and without charge by calling (800) 441-7762.

Availability of Proxy Voting Policies and Procedures

A description of the policies and procedures that the Trusts use to determine how to vote proxies relating to portfolio securities is available (1) without charge, upon request, by calling toll-free (800) 441-7762; (2) at www.blackrock.com; and (3) on the SECs website at http://www.sec.gov.

Availability of Proxy Voting Record

Information about how the Trusts voted proxies relating to securities held in the Trusts portfolios during the most recent 12-month period ended June 30 is available upon request and without charge (1) at www.blackrock.com or by calling (800) 441-7762 and (2) on the SECs website at http://www.sec.gov.

Section 19 Notices

These amounts and sources of distributions reported are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon each Trusts investment experience during the year and may be subject to changes based on the tax regulations. The Trusts will send you a Form 1099-DIV each calendar year that will tell you how to report these distributions for federal income tax purposes.

| | Total
Fiscal Year-to-Date Cumulative Distributions by Character — Net Investment Income | Net Realized Capital Gains | Return of Capital | Total
Per Common Share | Net Investment Income | Net Realized Capital Gains | Return of Capital | Total
Per Common Share |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| California Investment
Quality | $ 0.568000 | | | $0.568000 | 100% | 0% | 0% | 100% |
| New York Investment Quality | $ 0.718400 | $ 0.005106 | | $0.723506 | 99% | 1% | 0% | 100% |

Fund Certification

Certain Trusts are listed for trading on the New York Stock Exchange (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.

74 ANNUAL REPORT JULY 31, 2009

Additional Information (concluded)
Board
Approvals

On September 12, 2008, the Board of Trustees of BlackRock Florida Investment Quality Municipal Trust and BlackRock Florida Municipal Income Trust voted unanimously to change a non-fundamental investment policy of the Trusts, and to rename the Trusts BlackRock Investment Quality Municipal Income Trust and BlackRock Municipal Income Investment Trust, respectively. The Trusts previous non-fundamental investment policy required BlackRock Florida Investment Quality Municipal Trust to invest at least 80% of its assets, and BlackRock Florida Municipal Income Trust to invest at least 80% of its total assets, in Florida municipal bonds rated investment grade at the time of investment. Due to the repeal of the Florida Intangible Personal Property Tax as of January 2007, the Board has approved an amended policy allowing the Trusts flexibility to invest in municipal obligations regardless of geographic location. The Trusts new investment policy, under normal market conditions, is to invest at least 80% of their assets or total assets, as the case may be, in municipal bonds rated investment grade at the time of investment. The approved changes will not alter the Trusts investment objectives.

Under current market conditions, the Manager anticipates that it will gradually reposition the Trusts portfolios over time and that during such period the Trusts may continue to hold a substantial portion of its assets in Florida municipal bonds. At this time, it is uncertain how long the repositioning may take, and the Trusts will continue to be subject to risks associated with investing a substantial portion of its assets in Florida municipal bonds until the repositioning is complete.

The Manager and the Board believe the amended policy will allow the Manager to better manage the Trusts portfolios in the best interests of the Trusts shareholders and to better meet the Trusts investment objectives.

Effective September 12, 2008, following approval by the Trusts Board, the Board ratified the amendment of the terms of the Trusts Preferred Shares in order to allow the Trusts to enter into TOB transactions, the proceeds of which were used to redeem a portion of the Trusts Preferred Shares. Accordingly, the definition of Inverse Floaters was amended to incorporate the Trusts permissible ratio of floating rate instruments into inverse floating rate instruments. Additionally, conforming changes and certain formula modifications concerning inverse floaters were made to the definitions of Moodys Discount Factor and S&P Discount Factor, as applicable, to integrate the Trusts investments in TOBs into applicable calculations.

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.

ANNUAL REPORT JULY 31, 2009 75

This report is transmitted to shareholders only. It is not a prospectus. Past performance results shown in this report should not be considered a representation of future performance. The Trusts have leveraged their Common Shares, which creates risks for Common Shareholders, including the likelihood of greater volatility of net asset value and market price of the Common Shares, and the risk that fluctuations in short-term dividend rates of the Preferred Shares, currently set at the maximum reset rate as a result of failed auctions, may affect the yield to Common Shareholders. Statements and other information herein are as dated and are subject to change.

CEF-SAR-BK9-07/09

end

| 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 and principal accounting officer, or persons performing
similar functions. During the period covered by this report, there have been
no amendments to or waivers granted under the code of ethics. A copy of the
code of ethics is available without charge at www.blackrock.com. |
| --- | --- |
| Item 3 | Audit
Committee Financial Expert The registrants board of directors or trustees,
as applicable (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: Kent Dixon Frank J. Fabozzi James T. Flynn W. Carl Kester Karen P. Robards Robert S. Salomon, Jr. (retired effective December 31, 2008) |
| | The
registrants board of directors has determined that W. Carl Kester and Karen
P. Robards qualify as financial experts pursuant to Item 3(c)(4) of Form
N-CSR. |
| | Prof. Kester has a thorough understanding of generally accepted
accounting principles, financial statements and internal control over
financial reporting as well as audit committee functions. Prof. Kester has
been involved in providing valuation and other financial consulting services
to corporate clients since 1978. Prof. Kesters financial consulting services
present a breadth and level of complexity of accounting issues that are
generally comparable to the breadth and complexity of issues that can
reasonably be expected to be raised by the registrants financial statements. |
| | 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 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. |

Item 4 Principal Accountant Fees and Services

| 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 3 — Current Fiscal Year End | Previous Fiscal Year End |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| BlackRock New York
Municipal Income Trust | $28,200 | $27,300 | $3,500 | $3,500 | $6,100 | $6,100 | $1,028 | $1,049 |

1 The nature of the services include assurance and related services reasonably related to the performance of the audit of financial statements not included in Audit Fees.

2 The nature of the services include tax compliance, tax advice and tax planning.

3 The nature of the services include a review of compliance procedures and attestation thereto.

| (e)(1) Audit
Committee Pre-Approval Policies and Procedures: |
| --- |
| The
registrants audit committee (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 registrants 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 operation 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 for all of the registrants
the Committee oversees. 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 one or more of its members
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 audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of
Regulation S-X. |
| (f) Not
Applicable |

(g) Affiliates Aggregate Non-Audit Fees:

| Entity
Name | Current
Fiscal Year End | Previous
Fiscal Year End |
| --- | --- | --- |
| BlackRock
New York Municipal Income Trust | $418,128 | $415,649 |

| | (h) The
registrants audit committee has considered and determined that the provision
of non-audit services that were rendered to the registrants investment
adviser (not including any non-affiliated sub-adviser whose role is primarily
portfolio management and is subcontracted with or overseen by the
registrants investment adviser), and any entity controlling, controlled by,
or under common control with the investment adviser that provides ongoing
services to the registrant 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. |
| --- | --- |
| | Regulation
S-X Rule 2-01(c)(7)(ii) $407,500, 0% |
| Item 5 | Audit
Committee of Listed Registrants 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)): |
| | Kent Dixon |
| | Frank J.
Fabozzi |
| | James T.
Flynn |
| | W. Carl
Kester |
| | Karen P.
Robards |
| | Robert S.
Salomon, Jr. (retired effective December 31, 2008) |
| Item 6 | Investments |
| | (a) The
registrants Schedule of Investments is included as part of the Report to
Stockholders filed under Item 1 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 Fund
securities to the Funds investment adviser (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. 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. — Portfolio
Managers of Closed-End Management Investment Companies as of July 31, 2009. | |
| --- | --- |
| (a)(1) | The
registrant (or Fund) is managed by a team of investment professionals comprised of Timothy
Browse, Director at BlackRock, Theodore R. Jaeckel, Jr., CFA, Managing
Director at BlackRock and Walter OConnor, Managing Director 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. Browse,
Jaeckel and OConnor have been members of the registrants portfolio
management team since 2006, 2006 and 2006, respectively. |

| Portfolio
Manager | Biography |
| --- | --- |
| Timothy
Browse | Director of
BlackRock, Inc. since 2008; Vice President of BlackRock, Inc. from 2006 to
2007; Vice President of Merrill Lynch Investment Management, L.P. (MLIM)
from 2004 to 2006. |
| Theodore R.
Jaeckel, Jr. | Managing
Director at BlackRock, Inc. since 2006; Managing Director of MLIM from 2005
to 2006; Director of MLIM from 1997 to 2005. |
| Walter
OConnor | Managing
Director of BlackRock, Inc. since 2006; Managing Director of MLIM from 2003
to 2006; Director of MLIM from 1998 to 2003. |

(a)(2) As of July 31, 2009:

| (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 | 76 | 0 | 0 | 0 | 0 | 0 |
| | $17.7
Billion | $0 | $0 | $0 | $0 | $0 |
| Theodore R. Jaeckel, Jr. | 76 | 0 | 0 | 0 | 0 | 0 |
| | $17.7
Billion | $0 | $0 | $0 | $0 | $0 |
| Timothy Browse | 14 | 0 | 0 | 0 | 0 | 0 |
| | $3.24
Billion | $0 | $0 | $0 | $0 | $0 |

| (iv) Potential Material
Conflicts of Interest |
| --- |
| BlackRock and its
affiliates (collectively, herein 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, its affiliates and
significant shareholders and any officer, director, stockholder or employee
may or may not have an interest in the securities whose purchase and sale
BlackRock recommends to the Fund. BlackRock, or any of its affiliates or
significant shareholders, or any officer, director, stockholder, 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 BlackRocks (or its
affiliates or significant shareholders) officers, directors or employees
are directors or officers, or companies as to which BlackRock 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. Each portfolio manager also may manage
accounts whose investment strategies may at times be opposed to the strategy
utilized for a fund. In this connection, it should be noted that a portfolio
manager may currently manage certain accounts that are subject to performance
fees. In addition, a portfolio manager may assist in managing certain hedge
funds and may be entitled to receive a portion of any incentive fees earned
on such funds and a portion of such incentive fees may be voluntarily or involuntarily
deferred. Additional portfolio managers may in the future manage other such
accounts or funds and may be entitled to receive incentive fees. |
| --- |
| 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 has adopted a policy that is intended to ensure that investment
opportunities are allocated fairly and equitably among client accounts over
time. This policy also seeks to achieve 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. |
| (a)(3) As of July 31,
2009: |
| Portfolio Manager Compensation Overview |
| 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 such as
its Long-Term Retention and Incentive Plan. |

| Base compensation. Generally, portfolio managers receive base compensation based on
their seniority and/or their position with the firm. Senior portfolio
managers who perform additional management functions within the portfolio
management group or within BlackRock may receive additional compensation for
serving in these other capacities. |
| --- |
| 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 seniority, role
within the portfolio management team, teamwork and contribution to the
overall performance of these portfolios and BlackRock. In most cases,
including for the portfolio managers of the Fund, these benchmarks are the
same as the benchmark or benchmarks against which the performance of the Fund
or other accounts managed by the portfolio managers are measured. BlackRocks
Chief Investment Officers determine the benchmarks against which the
performance of funds and other accounts managed by each portfolio manager is
compared and the period of time over which performance is evaluated. With
respect to the portfolio managers, such benchmarks for the Fund include a
combination of market-based indices (e.g. Barclays Capital Municipal Bond
Index), certain customized indices and certain fund industry peer groups. |
| BlackRocks Chief
Investment Officers make a subjective determination with respect to the
portfolio managers compensation based on the performance of the funds and
other accounts managed by each portfolio manager relative to the various
benchmarks noted above. Performance is measured on both a pre-tax and
after-tax basis over various time periods including 1, 3, 5 and 10-year
periods, as applicable. |
| Distribution
of Discretionary Incentive Compensation |
| Discretionary incentive
compensation is distributed to portfolio managers in a combination of cash
and BlackRock, Inc. restricted stock units which vest ratably over a number
of years. The BlackRock, Inc. restricted stock units, if properly vested,
will be settled in BlackRock, Inc. common stock. Typically, the cash bonus,
when combined with base salary, represents more than 60% of total
compensation for the portfolio managers. Paying a portion of annual bonuses
in 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. |
| Long-Term
Retention and Incentive Plan (LTIP) The LTIP is a long-term incentive plan that
seeks to reward certain key employees. Beginning in 2006, awards are granted
under the LTIP in the form of BlackRock, Inc. restricted stock units that, if
properly vested and subject to the attainment of certain performance goals,
will be settled in BlackRock, Inc. common stock. Messrs. OConnor and Jaeckel
have each received awards under the LTIP. |
| Deferred
Compensation Program A portion of the compensation paid to eligible BlackRock employees
may be voluntarily deferred into an account that tracks the performance of
certain of the firms investment products. Each participant in the deferred
compensation program is permitted to allocate his deferred amounts among the
various investment options. Messrs. OConnor, Jaeckel and Browse have each
participated in the deferred compensation program. |

| Other compensation benefits. In addition to base compensation 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 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 6% of
eligible pay contributed to the plan capped at $4,000 per year, and a company
retirement contribution equal to 3-5% of eligible compensation. The RSP
offers a range of investment options, including registered investment
companies managed by the firm. BlackRock contributions follow the investment
direction set by participants for their own contributions or, absent employee
investment direction, are invested into a balanced portfolio. The ESPP allows
for investment in BlackRock 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 or a dollar value of $25,000. Each
portfolio manager is eligible to participate in these plans. |
| (a)(4) Beneficial Ownership of Securities July 31, 2009 . |

Portfolio Manager	Dollar Range of Equity Securities Beneficially Owned
Walter OConnor	None
Theodore R. Jaeckel, Jr.	None
Timothy Browse	None

| 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 The registrants Nominating and
Governance Committee will consider nominees to the board of directors
recommended by shareholders when a vacancy becomes available. Shareholders
who wish to recommend a nominee should send nominations that include
biographical information and set forth the qualifications of the proposed
nominee to the registrants Secretary. There have been no material changes to
these procedures. |
| Item 11 | Controls and
Procedures |
| 11(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
13(a)-15(b) under the Securities Exchange Act of 1934, as amended. |
| 11(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 second
fiscal quarter of 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 | Exhibits
attached hereto |
| --- | --- |
| 12(a)(1) | Code of
Ethics See Item 2 |
| 12(a)(2) | Certifications
Attached hereto |
| 12(a)(3) | Not
Applicable |
| 12(b) | Certifications
Attached hereto |

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

| BlackRock
New York Municipal Income Trust | |
| --- | --- |
| By: | /s/ Anne F.
Ackerley |
| | Anne F.
Ackerley |
| | Chief
Executive Officer of |
| | BlackRock
New York Municipal Income Trust |

Date: September 22, 2009

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:
Anne F.
Ackerley
Chief
Executive Officer (principal executive officer) of
BlackRock
New York Municipal Income Trust

Date: September 22, 2009

By:
Neal J.
Andrews
Chief
Financial Officer (principal financial officer) of
BlackRock
New York Municipal Income Trust

Date: September 22, 2009

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BLACKROCK NEW YORK MUNICIPAL INCOME TRUST

CEF-SAR-BK9-07/09

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