N-CSR 1 i00420_bny-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: John M. Perlowski, Chief Executive Officer, BlackRock New York Municipal Income Trust, 55 East 52 nd Street, New York, NY 10055

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

Date of fiscal year end: 07/31/2011

Date of reporting period: 07/31/2011

Item 1 – Report to Stockholders

insert

July 31, 2011

Annual Report
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 § No Bank Guarantee § May Lose Value

Table of Contents
	Page
Dear
Shareholder	3
Annual
Report:
Municipal
Market Overview	4
Trust
Summaries	5
The
Benefits and Risks of Leveraging	13
Derivative
Financial Instruments	13
Financial Statements:
Schedules of Investments	14
Statements of Assets and Liabilities	40
Statements of Operations	42
Statements of Changes in Net Assets	44
Statements of Cash Flows	46
Financial
Highlights	47
Notes
to Financial Statements	55
Report
of Independent Registered Public Accounting Firm	63
Important
Tax Information	64
Disclosure
of Investment Advisory Agreements and Sub-Advisory Agreements	65
Automatic
Dividend Reinvestment Plan	69
Officers
and Trustees	70
Additional
Information	73

2 ANNUAL REPORT JULY 31, 2011

D ear Shareholder

Financial markets have been extremely volatile in the wake of the Standard & Poors downgrade of US Treasury debt. While the August 5 announcement was the catalyst for the market turmoil, weaker-than-expected economic data and Europes deepening financial crisis further compounded investor uncertainty as the future direction of the global economy became increasingly questionable. Although markets remain highly volatile and conditions are highly uncertain, BlackRock remains focused on finding opportunities in this environment.

The pages that follow reflect your mutual funds reporting period ended July 31, 2011. Accordingly, the below discussion is intended to provide you with additional perspective on the performance of your investments during that period.

During the summer of 2010, investors were in risk-off mode as the global economy was sputtering and the sovereign debt crisis was spreading across Europe. But markets were revived toward the end of the summer on positive economic news and robust corporate earnings. The global economy had finally gained traction and fear turned to optimism with the anticipation of a second round of quantitative easing (QE2) from the US Federal Reserve (the Fed). Stock markets rallied even though the European debt crisis continued and inflationary pressures loomed over emerging markets. Fixed income markets, however, saw yields move sharply upward (pushing prices down) especially on the long end of the historically steep yield curve. While high yield bonds benefited from the risk rally, most fixed income sectors declined in the fourth quarter. The tax-exempt municipal market faced additional headwinds as it became evident that the Build America Bond program would not be extended and municipal finance troubles abounded.

The new year brought spikes of volatility as political turmoil swept across the Middle East/North Africa region and as prices of oil and other commodities soared. Natural disasters in Japan disrupted industrial supply chains and concerns mounted over US debt and deficit issues. Equities quickly rebounded as investors chose to focus on the continuing stream of strong corporate earnings and positive economic data. Credit markets were surprisingly resilient in this environment and yields regained relative stability in 2011. The tax-exempt market saw relief from its headwinds and steadily recovered from its fourth-quarter lows. Equities, commodities and high yield bonds outpaced higher-quality assets as investors increased their risk tolerance.

However, longer-term headwinds had been brewing. Inflationary pressures intensified in emerging economies, many of which were overheating, and the European debt crisis continued to escalate. Markets were met with a sharp reversal in May when political unrest in Greece pushed the nation closer to defaulting on its debt. This development rekindled fears about the broader debt crisis and its further contagion among peripheral European countries. Concurrently, it became evident that the pace of global economic growth had slowed. Higher oil prices and supply chain disruptions finally showed up in economic data. In the final month of the reporting period, the prolonged debt ceiling debate in Washington, DC led to a loss of confidence in policymakers. Stocks generally declined from May through the end of the period, but 6- and 12-month returns through the end of July remained in positive territory. In bond markets, yields were volatile but generally moved lower for the period as a whole (pushing prices up). Continued low short-term interest rates kept yields on money market securities near their all-time lows.

Sincerely,

| ● |
| --- |
| Rob Kapito |
| President, BlackRock
Advisors, LLC |
| ● |
| Although
markets remain highly volatile and conditions are highly uncertain, BlackRock
remains focused on finding opportunities in this environment. |
| Rob Kapito |
| President, BlackRock
Advisors, LLC |

Total Returns as of July 31, 2011

	6-month	12-month
US
large cap equities (S&P 500 ® Index)	1.46 %	19.65 %
US
small cap equities (Russell 2000 ® Index)	2.63	23.92
International
equities (MSCI Europe, Australasia, Far East Index)	0.93	17.17
Emerging
market equities (MSCI Emerging Markets Index)	3.23	17.45
3-month
Treasury bill (BofA Merrill Lynch 3-Month Treasury Bill Index)	0.07	0.14
US
Treasury securities (BofA Merrill Lynch 10- Year US Treasury Index)	6.93	4.53
US
investment grade bonds (Barclays Capital US Aggregate Bond Index)	4.23	4.44
Tax-exempt
municipal bonds (Barclays Capital Municipal Bond Index)	6.27	3.24
US
high yield bonds (Barclays Capital US Corporate High Yield 2% Issuer Capped Index)	3.90	12.89

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

THIS PAGE NOT PART OF YOUR FUND REPORT 3

| M unicipal Market
Overview |
| --- |
| For the 12-Month Period Ended July 31, 2011 |

At the outset of the 12-month period, investor concerns were focused on the possibility of deflation and a double-dip in the US economy thus leading to a flatter municipal yield curve at that time as compared to July 31, 2011. From July through September 2010, rates moved lower (and prices higher) across the curve, reaching historic lows in August when the yield on 5-year issues touched 1.06%, the 10-year reached 2.18%, and the 30-year closed at 3.67%. However, the market took a turn in October amid a perfect storm of events that ultimately resulted in the worst quarterly performance for municipals since the Fed tightening cycle of 1994. Treasury yields lost support due to concerns over the US deficit and municipal valuations suffered a quick and severe setback as it became evident that the Build America Bond (BAB) program would expire at the end of 2010. The BAB program opened the taxable market to municipal issuers, which had successfully alleviated supply pressure in the traditional tax-exempt marketplace, bringing down yields in that space.

Towards the end of the fourth quarter 2010, news about municipal finance troubles mounted and damaged confidence among retail investors. From mid-November through year end, weekly outflows from municipal mutual funds averaged over $2.5 billion. Political uncertainty surrounding the midterm elections and tax policies along with the expiration of the BAB program exacerbated the situation. These conditions combined with seasonal illiquidity sapped willful market participation from the trading community. December brought declining demand with no comparable reduction in supply as issuers rushed their deals to market before the BAB program was retired. This supply-demand imbalance led to wider quality spreads and higher yields.

Demand is usually strong at the beginning of a new year, but retail investors continued to move away from municipal mutual funds in 2011. From mid-November, outflows persisted for 29 consecutive weeks, totaling $35.1 billion before the trend finally broke in June. Weak demand has been counterbalanced by lower supply in 2011. According to Thomson Reuters, year-to-date through July, new issuance was down 40% compared to the same period last year. Issuers have been reluctant to bring new deals to the market due to higher interest rates, fiscal policy changes and a reduced need for municipal borrowing. In this positive technical environment, the S&P/Investortools Main Municipal Bond Index gained 4.22% for the second quarter of 2011, its best second-quarter performance since 1992, and municipals outperformed most other fixed income asset classes for the quarter.

Municipals displayed an impressive degree of resiliency throughout the month of July as Moodys Investors Service signaled that its potential downgrade of US government debt could also result in downgrades of a number of triple A-rated states and nearly 200 local general obligation issues. July also brought weaker US economic data. The housing market remained sluggish, fewer jobs were created and consumer confidence declined. US Treasury yields moved lower, dragging municipal yields down, which pushed bond prices up.

Overall, the municipal yield curve steepened during the period from July 31, 2010 to July 31, 2011. As measured by Thomson Municipal Market Data, yields on AAA quality-rated 30-year municipals rose 38 basis points (bps) to 4.35%, while yields for 5-year maturities rallied by 13 bps to 1.16%, and 10-year maturities increased by 10 bps to 2.67%. With the exception of the 2- to 5-year range, the yield spread between maturities increased over the past year, with the greatest increase seen in the 5- to 30-year range, where the spread widened by 51 bps, while overall the slope between 2- and 30-year maturities increased by 35 bps to 3.95%.

The fundamental picture for municipalities is improving as most states began their new fiscal year with a balanced budget. Austerity is the general theme across the country, while a small number of states continue to rely on the kick the can approach, using aggressive revenue projections and accounting gimmicks to close their shortfalls. As long as economic growth stays positive, tax receipts for states should continue to rise and lead to better credit fundamentals. BlackRock maintains a constructive view of the municipal market, recognizing that careful credit research and security selection remain imperative amid uncertainty in the economic environment.

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

4 ANNUAL REPORT JULY 31, 2011

T rust Summary as of July 31, 2011 BlackRock California Municipal Income Trust

Trust Overview

BlackRock California Municipal Income Trusts (BFZ) (the Trust) investment objective is to provide current income exempt from regular US federal income and California income taxes. The Trust seeks to achieve its investment objective by investing primarily in municipal obligations exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax) and California income taxes. The Trust invests, under normal market conditions, at least 80% of its assets in municipal obligations that are investment grade quality. The Trust may invest directly in such securities or synthetically through the use of derivatives.

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

Performance

For the 12 months ended July 31, 2011, the Trust returned (0.86)% based on market price and 4.05% based on net asset value (NAV). For the same period, the closed-end Lipper California Municipal Debt Funds category posted an average return of (1.84)% based on market price and 3.16% based on NAV. 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. The following discussion relates to performance based on NAV. The Trusts slightly long duration posture benefited performance as bonds with longer maturities experienced the greatest price appreciation as the yield curve flattened amid the investor flight-to-quality in the latter half of the period. Increased exposure to inverse floating rate instruments (tender option bonds) while the municipal yield curve was historically steep boosted the Trusts income accrual. Holdings of higher quality essential service revenue bonds had a positive impact on performance as investors favored these securities versus general obligation bonds and school district credits, which lagged due to budget concerns in California. Conversely, some widening of credit spreads, especially among California school district and health care issues, had a negative impact on returns. In addition, the Trusts cash reserves detracted as cash underperformed longer maturity, coupon bonds as yields fell and spreads tightened.

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
New York Stock Exchange (NYSE) | BFZ |
| Initial
Offering Date | July 27, 2001 |
| Yield on
Closing Market Price as of July 31, 2011 ($13.16) 1 | 6.90% |
| Tax
Equivalent Yield 2 | 10.62% |
| Current
Monthly Distribution per Common Share 3 | $0.0757 |
| Current
Annualized Distribution per Common Share 3 | $0.9084 |
| Leverage as
of July 31, 2011 4 | 42% |

| 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 rate is
not constant and is subject to change. |
| 4 | Represents Auction Market
Preferred Shares (AMPS) 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 AMPS 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:

	7/31/11	7/31/10	Change	High	Low
Market Price	$13.16	$14.21	(7.39)%	$14.99	$12.02
Net Asset
Value	$13.88	$14.28	(2.80)%	$14.88	$12.17

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

| Sector
Allocations | 7/31/11 | | 7/31/10 |
| --- | --- | --- | --- |
| County/City/Special
District/School District | 39 | % | 37 % |
| Utilities | 29 | | 27 |
| Health | 11 | | 9 |
| Education | 7 | | 10 |
| Transportation | 7 | | 6 |
| State | 5 | | 7 |
| Housing | 2 | | 3 |
| Corporate | | 5 | 1 |

5 Amount rounds to less than 1%.

Credit Quality Allocations 6	7/31/11	7/31/10
AAA/Aaa	11 %	24 %
AA/Aa	67	46
A	20	26
BBB/Baa	2	3
Not Rated		1 7

| 6 | Using the higher of
Standard & Poors (S&Ps) or Moodys Investors Service (Moodys)
ratings. |
| --- | --- |
| 7 | The investment advisor has
deemed certain of these non-rated securities to be of investment grade
quality. As of July 31, 2010, the market value of these securities was
$5,717,100, representing 1% of the Trusts long-term investments. |

ANNUAL REPORT JULY 31, 2011 5

Trust Summary as of July 31, 2011 BlackRock Florida Municipal 2020 Term Trust

Trust Overview

BlackRock Florida Municipal 2020 Term Trusts (BFO) (the Trust) investment objectives are to provide current income exempt from regular federal income tax and Florida intangible personal property tax and to return $15.00 per Common Share (the initial offering price per share) to holders of Common Shares on or about December 31, 2020. The Trust seeks to achieve its investment objectives by investing at least 80% of its assets in municipal bonds exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax) and Florida intangible personal property tax. The Trust invests at least 80% of its assets in municipal bonds that are investment grade quality at the time of investment. The Trust actively manages the maturity of its bonds to seek to have a dollar weighted average effective maturity approximately equal to the Trusts maturity date. The Trust may invest directly in such securities or synthetically through the use of derivatives. Effective January 1, 2007, the Florida intangible personal property tax was repealed.

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

Performance

For the 12 months ended July 31, 2011, the Trust returned 2.00% based on market price and 5.07% based on NAV. For the same period, the closed-end Lipper Other States Municipal Debt Funds category posted an average return of (3.65)% based on market price and 3.25% based on NAV. 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. The following discussion relates to performance based on NAV. The Trust benefited from its exposure to pre-refunded bonds and escrow bonds, which performed well due to their shorter maturities when long-term interest rates climbed toward the end of 2010 and into the early part of 2011. Conversely, the Trusts holdings in health care bonds detracted from performance due to the sectors underperformance versus the broader municipal market in the first half of the reporting period.

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, 2011 ($13.91) 1 | 4.83% |
| Tax
Equivalent Yield 2 | 7.43% |
| Current
Monthly Distribution per Common Share 3 | $0.056 |
| Current
Annualized Distribution per Common Share 3 | $0.672 |
| Leverage as
of July 31, 2011 4 | 34% |

| 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 rate is
not constant and is subject to change. |
| 4 | Represents AMPS and TOBs as
a percentage of total managed assets, which is the total assets of the Trust,
including any assets attributable to AMPS 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:

	7/31/11	7/31/10	Change	High	Low
Market Price	$13.91	$14.30	(2.73)%	$14.87	$13.01
Net Asset
Value	$14.94	$14.91	0.20%	$15.40	$13.86

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

Sector Allocations

	7/31/11	7/31/10
County/City/Special
District/School District	46 %	45 %
Utilities	18	20
Health	12	12
State	11	10
Corporate	6	7
Transportation	4	2
Housing	2	3
Education	1	1

Credit Quality Allocations 5

	7/31/11	7/31/10
AAA/Aaa	7 %	32 %
AA/Aa	40	19
A	23	23
BBB/Baa	12	7
BB/Ba	1
Not Rated 6	17	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, 2011 and July 31, 2010, the market value of these
securities was $10,771,005, representing 8%, and $15,832,064, representing
13%, respectively, of the Trusts long-term investments. |

6 ANNUAL REPORT JULY 31, 2011

Trust Summary as of July 31, 2011 BlackRock Investment Quality Municipal Income Trust

Trust Overview

BlackRock Investment Quality Municipal Income Trusts (RFA) (the Trust) investment objective is to provide high current income exempt from regular federal income tax and to provide an exemption from Florida intangible personal property taxes consistent with preservation of capital. The Trust seeks to achieve its investment objective by investing at least 80% of its assets in municipal obligations exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax) and Florida intangible personal property tax. Under normal market conditions, the Trust invests at least 80% of its assets in municipal bonds rated investment grade at the time of investment. The Trust may invest directly in such securities or synthetically through the use of derivatives. Due to the repeal of the Florida intangible personal property tax, the Board approved an amended policy in September 2008 allowing the Trust the flexibility to invest in municipal obligations regardless of geographical location.

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

Performance

For the 12 months ended July 31, 2011, the Trust returned (0.66)% based on market price and 2.90% based on NAV. For the same period, the closed-end Lipper General & Insured Municipal Debt Funds (Leveraged) category posted an average return of (2.24)% based on market price and 4.19% based on NAV. 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 following discussion relates to performance based on NAV. The Trusts holdings in spread sectors, including housing and health care bonds, enhanced performance as these sectors provided a relatively high degree of incremental income in the low interest rate environment. In addition, the Trusts holdings of premium coupon bonds (6% or higher) and shorter-duration bonds (bonds with lower sensitivity to interest rate movements) performed well as long-term interest rates climbed toward the end of 2010 and into the early part of 2011. Conversely, the Trusts exposure to bonds with longer duration (greater sensitivity to interest rate movements) and bonds with longer-dated maturities detracted from performance as the municipal yield curve steepened over the 12-month period. The surprise non-extension of the BAB program at the end of 2010 put additional upward pressure on the long end of the yield curve, where most of the BAB supply was issued.

Trust Information

| Symbol on
NYSE Amex | RFA |
| --- | --- |
| Initial
Offering Date | May 28, 1993 |
| Yield on
Closing Market Price as of July 31, 2011 ($11.65) 1 | 7.21% |
| Tax
Equivalent Yield 2 | 11.09% |
| Current
Monthly Distribution per Common Share 3 | $0.07 |
| Current
Annualized Distribution per Common Share 3 | $0.84 |
| Leverage as
of July 31, 2011 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 rate is
not constant and is subject to change. |
| 4 | Represents AMPS and TOBs as
a percentage of total managed assets, which is the total assets of the Trust,
including any assets attributable to AMPS 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:

	7/31/11	7/31/10	Change	High	Low
Market Price	$11.65	$12.60	(7.54)%	$13.20	$10.40
Net Asset
Value	$11.77	$12.29	(4.23)%	$12.76	$10.54

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

Sector Allocations

	7/31/11	7/31/10
Transportation	20 %	19 %
Utilities	20	19
County/City/Special
District/School District	19	19
Health	17	17
State	8	10
Education	7	7
Housing	6	6
Corporate	2	2
Tobacco	1	1

Credit Quality Allocations 5

	7/31/11	7/31/10
AAA/Aaa	8 %	16 %
AA/Aa	57	57
A	25	22
BBB/Baa	8	4
BB/Ba	1
Not Rated	1	1

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

ANNUAL REPORT JULY 31, 2011 7

Trust Summary as of July 31, 2011 BlackRock Municipal Income Investment Trust

Trust Overview

BlackRock Municipal Income Investment Trusts (BBF) (the Trust) investment objective is to provide current income exempt from regular federal income tax and Florida intangible personal property tax. The Trust seeks to achieve its investment objective by investing primarily in municipal bonds exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax) and Florida intangible personal property tax. The Trust invests at least 80% of its assets in municipal bonds that are investment grade quality at the time of investment. The Trust may invest directly in such securities or synthetically through the use of derivatives. Due to the repeal of the Florida intangible personal property tax, the Board approved an amended policy in September 2008 allowing the Trust the flexibility to invest in municipal obligations regardless of geographical location.

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

Performance

For the 12 months ended July 31, 2011, the Trust returned (1.86)% based on market price and 3.15% based on NAV. For the same period, the closed-end Lipper General & Insured Municipal Debt Funds (Leveraged) category posted an average return of (2.24)% based on market price and 4.19% based on NAV. 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. The following discussion relates to performance based on NAV. The Trusts holdings in spread sectors, including corporate-backed municipal and health care bonds, enhanced performance as these sectors provided a relatively high degree of incremental income in the low interest rate environment. In addition, the Trusts holdings of premium coupon bonds (6% or higher) and shorter-duration bonds (bonds with lower sensitivity to interest rate movements) performed well as long-term interest rates climbed toward the end of 2010 and into the early part of 2011. Conversely, the Trusts exposure to bonds with longer duration (greater sensitivity to interest rate movements) and bonds with longer-dated maturities detracted from performance as the municipal yield curve steepened over the 12-month period. The surprise non-extension of the BAB program at the end of 2010 put additional upward pressure on the long end of the yield curve, where most of the BAB supply was issued. US Treasury financial futures contracts used to hedge interest rate risk in the portfolio had a negative impact on performance.

Trust Information

| Symbol on
NYSE | BBF |
| --- | --- |
| Initial
Offering Date | July 27, 2001 |
| Yield on
Closing Market Price as of July 31, 2011 ($12.74) 1 | 7.10% |
| Tax
Equivalent Yield 2 | 10.92% |
| Current
Monthly Distribution per Common Share 3 | $0.075375 |
| Current
Annualized Distribution per Common Share 3 | $0.904500 |
| Leverage as
of July 31, 2011 4 | 42% |

| 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 rate is
not constant and is subject to change. |
| 4 | Represents AMPS and TOBs as
a percentage of total managed assets, which is the total assets of the Trust,
including any assets attributable to AMPS 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:

	7/31/11	7/31/10	Change	High	Low
Market Price	$12.74	$13.90	(8.35)%	$14.60	$11.13
Net Asset
Value	$13.40	$13.91	(3.67)%	$14.47	$11.82

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

Sector Allocations

	7/31/11	7/31/10
Health	21 %	24 %
County/City/Special
District/School District	19	19
Utilities	18	20
Transportation	16	17
State	9	9
Corporate	8	1
Education	7	9
Housing	1	1
Tobacco	1

Credit Quality Allocations 5

	7/31/11	7/31/10
AAA/Aaa	10 %	11 %
AA/Aa	55	58
A	26	25
BBB/Baa	7	4
BB/Ba	1
Not Rated	1	2

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

8 ANNUAL REPORT JULY 31, 2011

Trust Summary as of July 31, 2011 BlackRock New Jersey Investment Quality Municipal Trust Inc.

Trust Overview

BlackRock New Jersey Investment Quality Municipal Trust Inc.s (RNJ) (the Trust) investment objective is to provide high current income exempt from regular federal income tax and New Jersey gross income tax consistent with preservation of capital. The Trust seeks to achieve its investment objective by investing at least 80% of its assets in a portfolio of investment grade New Jersey municipal obligations exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax) and New Jersey gross income taxes. Under normal market conditions, the Trust invests at least 80% of its assets in securities rated investment grade at the time of investment. The Trust may invest directly in such securities or synthetically through the use of derivatives.

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

Performance

For the 12 months ended July 31, 2011, the Trust returned (0.99)% based on market price and 4.63% based on NAV. For the same period, the closed-end Lipper New Jersey Municipal Debt Funds category posted an average return of (3.20)% based on market price and 3.20% based on NAV. 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 following discussion relates to performance based on NAV. The Trusts holdings in spread sectors, including housing, health care and corporate-backed municipal bonds, enhanced performance as these sectors provided a relatively high degree of incremental income in the low interest rate environment. In addition, the Trusts holdings of premium coupon bonds (6% or higher) and shorter-duration bonds (bonds with lower sensitivity to interest rate movements) performed well as long-term interest rates climbed toward the end of 2010 and into the early part of 2011. Conversely, the Trusts exposure to bonds with longer duration (greater sensitivity to interest rate movements) and bonds with longer-dated maturities detracted from performance as the municipal yield curve steepened over the 12-month period. The surprise non-extension of the BAB program at the end of 2010 put additional upward pressure on the long end of the yield curve, where most of the BAB supply was issued.

Trust Information

| Symbol on
NYSE Amex | RNJ |
| --- | --- |
| Initial
Offering Date | May 28, 1993 |
| Yield on
Closing Market Price as of July 31, 2011 ($12.02) 1 | 6.54% |
| Tax
Equivalent Yield 2 | 10.06% |
| Current
Monthly Distribution per Common Share 3 | $0.0655 |
| Current
Annualized Distribution per Common Share 3 | $0.7860 |
| Leverage as
of July 31, 2011 4 | 36% |

| 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 rate is
not constant and is subject to change. |
| 4 | Represents AMPS and TOBs as
a percentage of total managed assets, which is the total assets of the Trust,
including any assets attributable to AMPS 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:

	7/31/11	7/31/10	Change	High	Low
Market Price	$12.02	$12.96	(7.25)%	$14.39	$10.94
Net Asset
Value	$12.32	$12.57	(1.99)%	$13.01	$11.09

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

Sector Allocations	7/31/11	7/31/10
Education	19 %	15 %
Transportation	18	14
State	17	18
County/City/Special
District/School District	13	8
Health	11	16
Corporate	10	10
Housing	9	11
Utilities	2	7
Tobacco	1	1
Credit Quality Allocations 5
	7/31/11	7/31/10
AAA/Aaa		12 %
AA/Aa	39 %	28
A	42	27
BBB/Baa	10	21
BB/Ba		3
B	5	4
Not Rated 6	4	5

| 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, 2011 and July 31, 2010, the market value of these
securities was $884,636, representing 4%, and $500,505, representing 3%, respectively,
of the Trusts long-term investments. |

ANNUAL REPORT JULY 31, 2011 9

Trust Summary as of July 31, 2011 BlackRock New Jersey Municipal Income Trust

Trust Overview

BlackRock New Jersey Municipal Income Trusts (BNJ) (the Trust) investment objective is to provide current income exempt from regular federal income tax and New Jersey gross income tax. The Trust seeks to achieve its investment objective by investing primarily in municipal bonds exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax) and New Jersey gross income taxes. The Trust invests at least 80% of its assets in municipal bonds that are investment grade quality at the time of investment. The Trust may invest directly in such securities or synthetically through the use of derivatives.

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

Performance

For the 12 months ended July 31, 2011, the Trust returned 1.85% based on market price and 4.74% based on NAV. For the same period, the closed-end Lipper New Jersey Municipal Debt Funds category posted an average return of (3.20)% based on market price and 3.20% based on NAV. 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. The following discussion relates to performance based on NAV. The Trusts holdings in spread sectors, including housing, health care and corporate-backed municipal bonds, enhanced performance as these sectors provided a relatively high degree of incremental income in the low interest rate environment. In addition, the Trusts holdings of premium coupon bonds (6% or higher) and shorter-duration bonds (bonds with lower sensitivity to interest rate movements) performed well as long-term interest rates climbed toward the end of 2010 and into the early part of 2011. Conversely, the Trusts exposure to bonds with longer duration (greater sensitivity to interest rate movements) and bonds with longer-dated maturities detracted from performance as the municipal yield curve steepened over the 12-month period. The surprise non-extension of the BAB program at the end of 2010 put additional upward pressure on the long end of the yield curve, where most of the BAB supply was issued.

Trust Information

| Symbol on
NYSE | BNJ |
| --- | --- |
| Initial
Offering Date | July 27, 2001 |
| Yield on
Closing Market Price as of July 31, 2011 ($14.10) 1 | 6.73% |
| Tax
Equivalent Yield 2 | 10.35% |
| Current
Monthly Distribution per Common Share 3 | $0.0791 |
| Current
Annualized Distribution per Common Share 3 | $0.9492 |
| Leverage as
of July 31, 2011 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 rate is
not constant and is subject to change. |
| 4 | Represents AMPS and TOBs as
a percentage of total managed assets, which is the total assets of the Trust,
including any assets attributable to AMPS 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:

	7/31/11	7/31/10	Change	High	Low
Market Price	$14.10	$14.82	(4.86)%	$16.02	$12.50
Net Asset
Value	$14.07	$14.38	(2.16)%	$14.86	$12.72

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

Sector Allocations	7/31/11	7/31/10
State	22 %	23 %
Transportation	18	13
Health	15	18
Housing	13	19
County/City/Special
District/School District	12	9
Education	11	8
Corporate	7	7
Utilities	1	2
Tobacco	1	1
Credit Quality Allocations 5
	7/31/11	7/31/10
AAA/Aaa	5 %	25 %
AA/Aa	33	25
A	33	28
BBB/Baa	12	11
BB/Ba	5	2
B	3	3
Not Rated 6	9	6

| 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, 2011 and July 31, 2010, the market value of these
securities was $13,046,133, representing 8%, and $4,086,005, representing 2%,
respectively, of the Trusts long-term investments. |

10 ANNUAL REPORT JULY 31, 2011

Trust Summary as of July 31, 2011 BlackRock New York Investment Quality Municipal Trust Inc.

Trust Overview

BlackRock New York Investment Quality Municipal Trust Inc.s (RNY) (the Trust) investment objective is to provide high current income exempt from regular federal, New York State and New York City income tax consistent with the preservation of capital. The Trust seeks to achieve its investment objective by investing at least 80% of its assets in municipal obligations exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax) and New York State and New York City income taxes. Under normal market conditions, the Trust invests at least 80% of its assets in securities rated investment grade at the time of investment. The Trust may invest directly in such securities or synthetically through the use of derivatives.

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

Performance

For the 12 months ended July 31, 2011, the Trust returned (2.14)% based on market price and 3.63% based on NAV. For the same period, the closed-end Lipper New York Municipal Debt Funds category posted an average return of (0.55)% based on market price and 3.05% based on NAV. 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 following discussion relates to performance based on NAV. Yields on the long end of the municipal yield curve were ultimately higher at the close of the period than where they started. Therefore, positive performance came mostly from the Trusts exposure to higher-yielding sectors including housing, health care and corporate/industrial development bonds, which provided incremental income. The Trust also benefited from its exposure to lower-quality bonds, which, in addition to offering higher embedded yields, experienced some price appreciation due to spread compression during the period. The Trust was most heavily invested in tax-backed credits, where performance was moderately positive during the period. Low exposure to the short end of the yield curve and high-quality pre-refunded bonds proved beneficial as performance was weak in those issues. Detracting from performance was the Trusts allocation to Puerto Rico credits, which underperformed New York issues during the period. Low exposure to tobacco, the strongest performing sector, was a disadvantage. The Trusts holdings of higher education bonds hindered returns; however, we increased exposure to the sector despite its recent under-performance as these holdings help diversify the portfolio and we believe they will benefit the Trust during periods of scarce new-issue supply. For most of the period, the Trust maintained a slightly long duration bias and exposure to the long end of the yield curve, which also detracted from performance.

Trust Information

| Symbol on
NYSE Amex | RNY |
| --- | --- |
| Initial
Offering Date | May 28, 1993 |
| Yield on
Closing Market Price as of July 31, 2011 ($13.49) 1 | 6.49% |
| Tax
Equivalent Yield 2 | 9.98% |
| Current
Monthly Distribution per Common Share 3 | $0.073 |
| Current
Annualized Distribution per Common Share 3 | $0.876 |
| Leverage as
of July 31, 2011 4 | 36% |

| 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 rate is
not constant and is subject to change. |
| 4 | Represents AMPS and TOBs as
a percentage of total managed assets, which is the total assets of the Trust,
including any assets attributable to AMPS 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:

	7/31/11	7/31/10	Change	High	Low
Market Price	$13.49	$14.70	(8.23)%	$15.05	$12.39
Net Asset
Value	$13.75	$14.15	(2.83)%	$14.66	$12.37

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

Sector Allocations	7/31/11		7/31/10
County/City/Special
District/School District	25	%	28 %
Utilities	16		16
Health	14		10
Education	13		12
Corporate	11		12
State	9		10
Housing	7		7
Transportation	3		3
Tobacco	2		2
Credit Quality Allocations 5
	7/31/11		7/31/10
AAA/Aaa	17	%	24 %
AA/Aa	26		19
A	28		38
BBB/Baa	14		6
BB/Ba	6		4
B	4		7
Not Rated	5	6	2

| 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, 2011, the market value of these securities was
$1,312,653, representing 5% of the Trusts long-term investments. |

ANNUAL REPORT JULY 31, 2011 11

Trust Summary as of July 31, 2011 BlackRock New York Municipal Income Trust

Trust Overview

BlackRock New York Municipal Income Trusts (BNY) (the Trust) investment objective is to provide current income exempt from regular federal income tax and New York State and New York City personal income taxes. The Trust seeks to achieve its investment objective by investing primarily in municipal bonds exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax) and New York State and New York City personal income taxes. The Trust invests at least 80% of its assets in municipal bonds that are investment grade quality at the time of investment. The Trust may invest directly in such securities or synthetically through the use of derivatives.

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

Performance

For the 12 months ended July 31, 2011, the Trust returned 0.94% based on market price and 4.39% based on NAV. For the same period, the closed-end Lipper New York Municipal Debt Funds category posted an average return of (0.55)% based on market price and 3.05% based on NAV. 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. The following discussion relates to performance based on NAV. Yields on the long end of the municipal yield curve were ultimately higher at the close of the period than where they started. Therefore, positive performance came mostly from the Trusts exposure to higher-yielding sectors including housing, health care and corporate/industrial development bonds, which provided incremental income. The Trust also benefited from its exposure to lower-quality bonds, which, in addition to offering higher embedded yields, experienced some price appreciation due to spread compression during the period. The Trust was most heavily invested in tax-backed credits, where performance was moderately positive during the period. Low exposure to the short end of the yield curve and high-quality pre-refunded bonds proved beneficial as performance was weak in those issues. Detracting from performance was the Trusts allocation to Puerto Rico credits, which underperformed New York issues during the period. Low exposure to tobacco, the strongest performing sector, was a disadvantage. The Trusts holdings of higher education bonds hindered returns; however, we increased exposure to the sector despite its recent underperformance as these holdings help diversify the portfolio and we believe they will benefit the Trust during periods of scarce new-issue supply. For most of the period, the Trust maintained a slightly long duration bias and exposure to the long end of the yield curve, which also detracted from performance.

Trust Information

| Symbol on
NYSE | BNY |
| --- | --- |
| Initial
Offering Date | July 27, 2001 |
| Yield on
Closing Market Price as of July 31, 2011 ($14.20) 1 | 6.97% |
| Tax
Equivalent Yield 2 | 10.72% |
| Current
Monthly Distribution per Common Share 3 | $0.0825 |
| Current
Annualized Distribution per Common Share 3 | $0.9900 |
| Leverage as
of July 31, 2011 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 rate is
not constant and is subject to change. |
| 4 | Represents AMPS and TOBs as
a percentage of total managed assets, which is the total assets of the Trust,
including any assets attributable to AMPS 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:

	7/31/11	7/31/10	Change	High	Low
Market Price	$14.20	$15.11	(6.02)%	$15.74	$12.97
Net Asset
Value	$13.87	$14.27	(2.80)%	$14.67	$12.53

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

Sector Allocations	7/31/11	7/31/10
County/City/Special
District/School District	18 %	16 %
Education	17	15
Transportation	17	14
Corporate	11	12
Housing	10	14
Utilities	10	12
State	7	8
Health	6	4
Tobacco	4	5
Credit
Quality Allocations 5
	7/31/11	7/31/10
AAA/Aaa	11 %	23 %
AA/Aa	33	19
A	27	29
BBB/Baa	20	16
BB/Ba	2	3
B	3	6
Not Rated 6	4	4

| 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, 2011 and July 31, 2010, the market value of these
securities was $11,121,550, representing 4%, and $2,474,600, representing 1%,
respectively, of the Trusts long-term investments. |

12 ANNUAL REPORT JULY 31, 2011

T he Benefits and Risks of Leveraging

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

To leverage, the Trusts issue AMPS, 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 financing cost of assets to be obtained from leverage, which will be based on short-term interest rates, will normally be lower than the income earned by each Trust on its longer-term portfolio investments. To the extent that the total assets of each Trust (including the assets obtained from leverage) are invested in higher-yielding portfolio investments, each Trusts holders of Common Shares (Common Shareholders) will benefit from the incremental net income.

To illustrate these concepts, assume a Trusts Common Shares capitalization is $100 million and it issues AMPS 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 AMPS based on the lower short-term interest rates. At the same time, the securities purchased by the Trust with assets received from the AMPS issuance earn income based on long-term interest rates. In this case, the dividends paid to holders of AMPS (AMPS 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.

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, if prevailing short-term interest rates rise above long-term interest rates, the yield curve has a negative slope. In this case, the Trust pays dividends to AMPS Shareholders on the higher short-term interest rate whereas the Trusts total portfolio earns income based on lower long-term interest rates.

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 AMPS 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 AMPS discussed above.

The Trusts may also leverage their assets through the use of TOBs, 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 AMPS issued by the Trusts, as described above. Additionally, fluctuations in the market value of municipal bonds deposited into the TOB trust may adversely affect each Trusts NAV per share.

The use of leverage may enhance opportunities for increased income 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 NAVs, market prices and dividend rates than comparable portfolios without leverage. If the income derived from securities purchased with assets received from leverage exceeds the cost of leverage, each 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, each 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. Each Trust 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 a Trust to incur losses. The use of leverage may limit each 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 AMPS issued by the Trusts. Each Trust will incur expenses in connection with the use of leverage, all of which are borne by Common Shareholders and may reduce income to the Common Shares.

Under the Investment Company Act of 1940, the Trusts are permitted to issue AMPS in an amount of up to 50% of their total managed assets at the time of issuance. Under normal circumstances, each Trust anticipates that the total economic leverage from AMPS and/or TOBs will not exceed 50% of its total managed assets at the time such leverage is incurred. As of July 31, 2011, the Trusts had economic leverage from AMPS and/or TOBs as a percentage of their total managed assets as follows:

| | Percent
of Leverage |
| --- | --- |
| BFZ | 42 % |
| BFO | 34 % |
| RFA | 40 % |
| BBF | 42 % |
| RNJ | 36 % |
| BNJ | 37 % |
| RNY | 36 % |
| BNY | 37 % |

D erivative Financial Instruments

The Trusts may invest in various derivative financial instruments, including financial futures contracts as specified in Note 2 of the Notes to Financial Statements, which may constitute forms of economic leverage. Such derivative financial 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. Derivative financial instruments involve risks, including the imperfect correlation between the value of a derivative financial instrument and the underlying asset, possible default of the counterparty to the transaction or illiquidity of the derivative financial instrument. The Trusts ability to use a derivative financial instrument successfully depends on the investment advisors ability to predict pertinent market movements accurately, which cannot be assured. The use of derivative financial instruments may result in losses greater than if they had not been used, may require a Trust to sell or purchase portfolio investments at inopportune times or for distressed values, may limit the amount of appreciation a Trust can realize on an investment, may result in lower dividends paid to shareholders or may cause a Trust to hold an investment 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, 2011 13

| S chedule
of Investments July 31,
2011 |
| --- |
| (Percentages
shown are based on Net Assets) |

| Municipal
Bonds | Par (000) | Value |
| --- | --- | --- |
| California 105.3% | | |
| Corporate 0.2% | | |
| City of Chula Vista California, Refunding RB, San Diego Gas & Electric, Series A, 5.88%, 2/15/34 | $ 680 | $ 732,761 |
| County/City/Special District/School District 40.8% | | |
| Butte-Glenn Community College District, GO, Election of 2002, Series C, 5.50%, 8/01/30 | 8,425 | 9,271,291 |
| California State Public Works Board, RB, Various Capital Projects, Sub-Series I-1, 6.63%, 11/01/34 | 8,000 | 8,661,600 |
| Central Unified School District, GO, Election of 2008, Series A (AGC), 5.63%, 8/01/33 | 400 | 420,636 |
| Cerritos Community College District, GO, Election of 2004, Series C, 5.25%, 8/01/31 | 3,000 | 3,158,070 |
| City & County of San Francisco California, COP, Refunding, Series A, 5.00%, 10/01/31 | 7,730 | 7,814,489 |
| City of Los Angeles, RB, Series A, 5.00%, 6/01/39 | 2,000 | 2,034,900 |
| City of San Jose California, RB, Convention Center Expansion & Renovation Project: | | |
| 6.13%, 5/01/31 | 500 | 519,090 |
| 6.50%, 5/01/36 | 1,210 | 1,256,767 |
| 6.50%, 5/01/42 | 2,225 | 2,299,359 |
| County of Kern California, COP, Capital Improvements Projects, Series A (AGC), 6.00%, 8/01/35 | 2,000 | 2,164,160 |
| El Dorado Union High School District, GO, Election of 2008, 5.00%, 8/01/35 | 5,020 | 5,238,169 |
| Evergreen Elementary School District, GO, Election of 2006, Series B (AGC), 5.13%, 8/01/33 | 2,500 | 2,561,825 |
| Grossmont Healthcare District, GO, Election of 2006, Series B, 6.13%, 7/15/40 | 2,000 | 2,173,980 |
| Long Beach Unified School District California, GO, Refunding, Election of 2008, Series A, 5.75%, 8/01/33 | 4,135 | 4,485,028 |
| Los Alamitos Unified School District California, GO, School Facilities Improvement District No. 1, 5.50%, 8/01/33 | 5,675 | 6,014,535 |
| Los Angeles Municipal Improvement Corp., Refunding RB, Real Property, Series B (AGC), 5.50%, 4/01/30 | 4,975 | 5,222,009 |
| Modesto Irrigation District, COP, Capital Improvements, Series A: | | |
| 5.75%, 10/01/29 | 3,000 | 3,194,760 |
| 5.75%, 10/01/34 | 180 | 185,953 |
| Murrieta Valley Unified School District Public Financing Authority, Special Tax Bonds, Refunding, Series A (AGC), 5.13%, 9/01/26 | 1,000 | 1,029,940 |
| Oak Grove School District California, GO, Election of 2008, Series A, 5.50%, 8/01/33 | 6,000 | 6,395,460 |

| Municipal
Bonds | Par (000) | Value |
| --- | --- | --- |
| California (continued) | | |
| County/City/Special
District/School District (continued) | | |
| Orange County Sanitation District, COP (NPFGC), 5.00%, 2/01/33 | $ 3,600 | $ 3,630,708 |
| Orange County Water District, COP, Refunding, 5.25%, 8/15/34 | 2,000 | 2,105,840 |
| Pico Rivera Public Financing Authority, RB, 5.75%, 9/01/39 | 2,000 | 2,030,880 |
| Pittsburg Redevelopment Agency, Tax Allocation Bonds, Refunding, Subordinate, Los Medanos Community Project, Series A, 6.50%, 9/01/28 | 5,500 | 5,454,845 |
| Pittsburg Unified School District, GO, Election of 2006, Series B (FSA), 5.50%, 8/01/34 | 2,000 | 2,105,540 |
| Port of Oakland, Refunding RB, Series M (FGIC), 5.38%, 11/01/27 | 4,800 | 4,808,496 |
| San Diego Community College District California, GO, Election of 2002, 5.25%, 8/01/33 | 1,500 | 1,580,070 |
| San Diego Regional Building Authority California, RB, County Operations Center & Annex, Series A, 5.38%, 2/01/36 | 6,500 | 6,745,635 |
| San Jose Financing Authority, Refunding RB, Civic Center Project, Series B (AMBAC), 5.00%, 6/01/37 | 6,000 | 5,888,640 |
| San Leandro Unified School District California, GO: | | |
| Election of 2006, Series B (AGM), 6.25%, 8/01/29 | 1,150 | 1,279,260 |
| Election of 2010, Series A, 5.75%, 8/01/41 | 3,060 | 3,236,470 |
| San Marcos Unified School District, GO, Election of 2010, Series A: | | |
| 5.00%, 8/01/34 | 3,735 | 3,758,381 |
| 5.00%, 8/01/38 | 3,520 | 3,499,338 |
| Santa Ana Unified School District, GO, Election of 2008, Series A: | | |
| 5.50%, 8/01/30 | 6,455 | 6,807,443 |
| 5.13%, 8/01/33 | 10,000 | 10,227,200 |
| Santa Clara County Financing Authority, Refunding LRB, Series L, 5.25%, 5/15/36 | 21,000 | 21,177,240 |
| Santa Cruz County Redevelopment Agency California, Tax Allocation Bonds, Live Oak/Soquel Community Improvement, Series A: | | |
| 6.63%, 9/01/29 | 1,000 | 1,093,750 |
| 7.00%, 9/01/36 | 1,700 | 1,846,098 |
| Snowline Joint Unified School District, COP, Refunding, Refining Project (AGC), 5.75%, 9/01/38 | 2,250 | 2,427,750 |
| Torrance Unified School District California, GO, Election of 2008, Measure Z, 6.00%, 8/01/33 | 4,000 | 4,368,680 |
| Tustin Unified School District, GO, Election of 2008, Series B, 5.25%, 8/01/31 | 3,445 | 3,634,268 |

Portfolio Abbreviations

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

| ACA | ACA Financial Guaranty
Corp. |
| --- | --- |
| AGC | Assured Guaranty Corp. |
| AGM | Assured Guaranty Municipal
Corp. |
| AMBAC | American Municipal Bond
Assurance Corp. |
| AMT | Alternative Minimum Tax
(subject to) |
| BHAC | Berkshire Hathaway
Assurance Corp. |
| CAB | Capital Appreciation Bonds |
| CIFG | CDC IXIS Financial Guaranty |
| COP | Certificates of
Participation |
| EDA | Economic Development
Authority |
| EDC | Economic Development Corp. |
| ERB | Education Revenue Bonds |
| FGIC | Financial Guaranty
Insurance Co. |
| FHA | Federal Housing
Administration |
| FSA | Financial Security
Assurance, Inc. |
| GO | General Obligation Bonds |
| HFA | Housing Finance Agency |
| HRB | Housing Revenue Bonds |
| IDA | Industrial Development
Authority |
| ISD | Independent School District |
| LRB | Lease Revenue Bonds |
| MRB | Mortgage Revenue Bonds |
| NPFGC | National Public Finance
Guarantee Corp. |
| PILOT | Payment in Lieu of Taxes |
| RB | Revenue Bonds |
| S/F | Single-Family |
| SONYMA | State of New York Mortgage
Agency |
| VHA | Veterans Health
Administration |

| See Notes to Financial
Statements. — 14 | ANNUAL REPORT | JULY 31, 2011 |
| --- | --- | --- |

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

| Municipal
Bonds | Par (000) | Value |
| --- | --- | --- |
| California (continued) | | |
| County/City/Special
District/School District (concluded) | | |
| Westminster Redevelopment Agency California, Tax Allocation Bonds, Subordinate, Commercial Redevelopment Project No. 1 (AGC), 6.25%, 11/01/39 | $ 7,750 | $ 8,617,767 |
| | | 180,426,320 |
| Education 1.6% | | |
| California Educational Facilities Authority, Refunding RB, San Francisco University, 6.13%, 10/01/36 | 6,280 | 6,708,296 |
| University of California, RB, Series O, 5.38%, 5/15/34 | 460 | 482,485 |
| | | 7,190,781 |
| Health 18.7% | | |
| ABAG Finance Authority for Nonprofit Corps, Refunding RB, Sharp Healthcare: | | |
| 6.38%, 8/01/34 | 3,055 | 3,168,279 |
| 6.25%, 8/01/39 | 3,760 | 3,923,334 |
| Series A, 6.00%, 8/01/30 | 2,250 | 2,376,450 |
| California Health Facilities Financing Authority, RB: | | |
| Adventist Health System-West, Series A, 5.75%, 9/01/39 | 6,000 | 6,092,640 |
| Catholic Healthcare West, Series J, 5.63%, 7/01/32 | 8,300 | 8,388,146 |
| Providence Health, 6.50%, 10/01/18 (a) | 25 | 32,510 |
| California Health Facilities Financing Authority, Refunding RB: | | |
| Catholic Healthcare West, Series A, 6.00%, 7/01/29 | 1,000 | 1,061,350 |
| Catholic Healthcare West, Series A, 6.00%, 7/01/34 | 4,400 | 4,628,888 |
| Catholic Healthcare West, Series A, 6.00%, 7/01/39 | 2,500 | 2,620,125 |
| Providence Health, 6.50%, 10/01/38 | 4,090 | 4,478,796 |
| Sutter Health, Series B, 6.00%, 8/15/42 | 6,015 | 6,407,659 |
| California Infrastructure & Economic Development Bank, RB, Kaiser Hospital Assistance I-LLC, Series A, 5.55%, 8/01/31 | 10,000 | 10,003,000 |
| California Statewide Communities Development Authority, RB, Series A: | | |
| Health Facility Memorial Health Services, 5.50%, 10/01/33 | 8,310 | 8,371,245 |
| Kaiser Permanente, 5.50%, 11/01/32 | 11,090 | 11,112,956 |
| California Statewide Communities Development Authority, Catholic Healthcare West, Refunding RB: | | |
| Series B, 5.50%, 7/01/30 | 2,980 | 3,023,419 |
| Series E, 5.50%, 7/01/31 | 4,255 | 4,304,018 |
| Grossmont Healthcare District, GO, Election of 2006, Series B, 6.00%, 7/15/34 | 2,250 | 2,452,455 |
| | | 82,445,270 |
| Housing 0.9% | | |
| California Statewide Communities Development Authority, Multifamily Housing Revenue Bond Pass-Through Certificates, RB, Series 3, Westgate Courtyards Apartments, Mandatory Put Bonds, AMT, 5.80%, 11/01/34 (b) | 2,180 | 2,122,819 |
| City of Los Angeles, Multifamily Housing Revenue Bond Pass-Through Certificates, RB, Series 5, San Lucas Apartments, AMT, 5.95%, 11/01/34 (b) | 2,035 | 1,992,163 |
| | | 4,114,982 |

| Municipal
Bonds | Par (000) | Value |
| --- | --- | --- |
| California (continued) | | |
| State 8.9% | | |
| California State Public Works Board, RB: | | |
| Department of Education, Riverside Campus Project, Series B, 6.50%, 4/01/34 | $ 9,000 | $ 9,608,490 |
| Various Capital Projects-Sub-Series I-1, 6.38%, 11/01/34 | 2,475 | 2,627,856 |
| State of California, GO, Various Purpose, 6.50%, 4/01/33 | 20,500 | 22,950,160 |
| University of California, RB, Limited Project, Series D (NPFGC), 5.00%, 5/15/41 | 4,315 | 4,261,969 |
| | | 39,448,475 |
| Transportation 12.0% | | |
| City of San Jose California, RB, Series A-1, AMT: | | |
| 5.75%, 3/01/34 | 895 | 887,124 |
| 6.25%, 3/01/34 | 1,650 | 1,713,756 |
| County of Orange California, RB, Series B, 5.75%, 7/01/34 | 8,000 | 8,531,600 |
| County of Sacramento California, RB, Senior Series B, 5.75%, 7/01/39 | 1,850 | 1,906,259 |
| Los Angeles Department of Airports, RB, Series A, 5.00%, 5/15/34 | 6,000 | 6,119,820 |
| Los Angeles Department of Airports, Refunding RB, Los Angeles International Airport, Sub-Series C, 5.25%, 5/15/38 | 400 | 405,440 |
| Los Angeles Harbor Department, RB, Series B, 5.25%, 8/01/34 | 5,530 | 5,719,790 |
| Palm Springs Unified School District, GO, Election of 2004, Series A (AGM), 5.00%, 8/01/31 | 11,625 | 11,935,271 |
| Port of Oakland, RB, Series K, AMT (FGIC), 5.75%, 11/01/29 | 5,300 | 5,301,060 |
| San Francisco City & County Airports Commission, RB, Series E, 6.00%, 5/01/39 | 6,750 | 7,259,760 |
| San Joaquin County Transportation Authority, RB, Limited Tax, Measure K, Series A, 6.00%, 3/01/36 | 2,880 | 3,154,550 |
| | | 52,934,430 |
| Utilities 22.2% | | |
| Anaheim Public Financing Authority, RB: | | |
| Anaheim Electric System Distribution, 5.25%, 10/01/39 | 1,500 | 1,540,860 |
| Electric System Distribution Facilities, Series A, 5.38%, 10/01/36 | 7,690 | 8,004,214 |
| California Infrastructure & Economic Development Bank, RB, California Independent System Operator, Series A, 6.25%, 2/01/39 | 5,500 | 5,845,565 |
| Calleguas-Las Virgines Public Financing Authority California, RB, Calleguas Municipal Water District Project, Series A (NPFGC), 5.13%, 7/01/32 | 5,475 | 5,617,076 |
| City of Chula Vista California, San Diego Gas & Electric, Refunding RB: | | |
| Series D, 5.88%, 1/01/34 | 1,000 | 1,077,590 |
| Series E, 5.88%, 1/01/34 | 6,500 | 7,004,335 |
| City of Los Angeles California, Refunding RB, Sub-Series A, 5.00%, 6/01/32 | 4,000 | 4,153,160 |
| City of Petaluma California, Refunding RB, 6.00%, 5/01/36 | 5,625 | 6,159,206 |
| Dublin-San Ramon Services District, Refunding RB, 6.00%, 8/01/41 | 2,425 | 2,582,140 |
| East Bay Municipal Utility District, RB, Series A (NPFGC), 5.00%, 6/01/32 | 4,660 | 4,863,269 |
| Los Angeles Department of Water & Power, RB: | | |
| Power System, Sub-Series A-1, 5.25%, 7/01/38 | 11,215 | 11,582,179 |
| Series A, 5.38%, 7/01/34 | 3,050 | 3,210,796 |

| See Notes to Financial
Statements. — ANNUAL REPORT | JULY 31, 2011 | 15 |
| --- | --- | --- |

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

Municipal Bonds	Par (000)	Value
California (concluded)
Utilities (concluded)
Los Angeles Department of Water & Power, Refunding RB, Power System, Sub-Series A-2, 5.00%, 7/01/30	$ 2,200	$ 2,237,400
San Diego Public Facilities Financing Authority, Refunding RB:
Senior Series A, 5.25%, 5/15/34	9,500	9,906,315
Series A, 5.25%, 8/01/38	3,255	3,372,603
San Francisco City & County Public Utilities Commission, RB:
Series A (NPFGC), 5.00%, 11/01/32	4,000	4,025,800
WSIP Sub-Series A, 5.00%, 11/01/37 (c)	5,695	5,809,128
San Francisco City & County Public Utilities Commission, Refunding RB, Series A, 5.00%, 11/01/35	10,625	10,832,931
		97,824,567
Total Municipal Bonds in California		465,117,586
Multi-State 1.9%
Housing 1.9%
Centerline Equity Issuer Trust (d)(e):
5.75%, 5/15/15	500	537,870
6.00%, 5/15/15	1,500	1,630,845
6.00%, 5/15/19	1,000	1,091,540
6.30%, 5/15/19	1,000	1,095,270
7.20%, 11/15/52	3,500	3,847,865
Total Municipal Bonds in Multi-State		8,203,390
Puerto Rico 0.7%
County/City/Special District/School District 0.7%
Puerto Rico Sales Tax Financing Corp., RB, First Sub-Series A, 6.50%, 8/01/44	3,000	3,242,550
Total Municipal Bonds 107.9%		476,563,526

| Municipal
Bonds Transferred to Tender Option Bond Trusts (f) | | |
| --- | --- | --- |
| California 63.2% | | |
| County/City/Special District/School District 25.0% | | |
| Los Angeles Community College District California, GO: | | |
| Election of 2001, Series A (AGM), 5.00%, 8/01/32 | 8,000 | 8,200,000 |
| Election of 2008, Series A, 6.00%, 8/01/33 | 20,131 | 22,428,136 |
| Election of 2008, Series C, 5.25%, 8/01/39 | 12,900 | 13,561,125 |
| Los Angeles Unified School District California, GO, Series I, 5.00%, 1/01/34 | 5,000 | 5,038,850 |
| Mount San Antonio Community College District California, GO, Election of 2001, Series C (AGM), 5.00%, 9/01/31 | 10,770 | 11,012,110 |
| Ohlone Community College District, GO, Ohlone, Series B (AGM), 5.00%, 8/01/30 | 12,499 | 12,688,787 |
| San Bernardino Community College District California, GO, Election of 2002, Series C (AGM), 5.00%, 8/01/31 | 2,000 | 2,023,820 |
| San Diego Community College District California, GO: | | |
| Election of 2002, 5.25%, 8/01/33 | 10,484 | 11,043,880 |
| Election of 2006 (AGM), 5.00%, 8/01/32 | 9,000 | 9,277,470 |

Municipal Bonds Transferred to Tender Option Bond Trusts (f)	Par (000)	Value
California (concluded)
County/City/Special
District/School District (concluded)
San Jose Unified School District Santa Clara County California, GO, Election of 2002, Series D, 5.00%, 8/01/32	$ 14,625	$ 14,998,354
		110,272,532
Education 11.1%
California Educational Facilities Authority, RB, University of Southern California, Series A, 5.25%, 10/01/39	10,395	10,887,203
Grossmont Union High School District California, GO, Election of 2004, 5.00%, 8/01/33	13,095	13,241,388
San Mateo County Community College District, GO, Election of 2005, Series B, 5.00%, 9/01/31	8,630	8,863,442
University of California, RB:
Limited Project, Series D (AGM), 5.00%, 5/15/41	2,600	2,568,046
Series O, 5.75%, 5/15/34	12,300	13,300,482
		48,860,561
Utilities 27.1%
California State Department of Water Resources, Refunding RB, Central Valley Project, Series AE, 5.00%, 12/01/29	7,000	7,488,320
City of Napa California, RB (AMBAC), 5.00%, 5/01/35	3,000	3,041,700
East Bay Municipal Utility District, RB, Sub-Series A (NPFGC), 5.00%, 6/01/35	3,000	3,058,710
Eastern Municipal Water District, COP, Series H, 5.00%, 7/01/33	18,002	18,200,996
Los Angeles Department of Water & Power, RB:
Power System, Sub-Series A-1 (AMBAC), 5.00%, 7/01/37	15,998	16,168,584
System, Sub-Series A-2 (AGM), 5.00%, 7/01/35	2,000	2,025,140
Metropolitan Water District of Southern California, RB, Series A, 5.00%, 7/01/37	11,180	11,467,438
Orange County Sanitation District, COP, Series B (AGM), 5.00%, 2/01/37	14,700	14,983,122
Orange County Water District, COP, Refunding, 5.00%, 8/15/39	10,480	10,686,037
San Diego County Water Authority, COP, Refunding:
Series 2002-A (NPFGC), 5.00%, 5/01/32	5,292	5,331,206
Series 2008-A (AGM), 5.00%, 5/01/33	14,290	14,592,662
San Diego Public Facilities Financing Authority, Refunding RB, Senior Series A, 5.25%, 5/15/39	12,457	12,842,161
		119,886,076
Total
Municipal Bonds Transferred to Tender Option Bond Trusts 63.2%		279,019,169
Total
Long-Term Investments (Cost $736,064,449) 171.1%		755,582,695

| Short-Term
Securities — BIF California Municipal Money Fund, 0.00% (g)(h) | 2,720,243 | 2,720,243 | |
| --- | --- | --- | --- |
| Total
Short-Term Securities (Cost $2,720,243) 0.6% | | 2,720,243 | |
| Total Investments (Cost $738,784,692*) 171.7% | | 758,302,938 | |
| Liabilities in Excess of Other Assets (0.3)% | | (1,396,156 | ) |
| Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable (32.6)% | | (143,834,366 | ) |
| AMPS, at Redemption Value (38.8)% | | (171,327,730 | ) |
| Net Assets Applicable to Common Shares 100.0% | $ | 441,744,686 | |

See Notes to Financial Statements. — 16	ANNUAL REPORT	JULY 31, 2011

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

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

Aggregate cost	$
Gross unrealized
appreciation	$ 22,075,580
Gross unrealized
depreciation	(3,054,525	)
Net unrealized appreciation	$ 19,021,055

| (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) | Variable rate security.
Rate shown is as of report date. |
| (c) | When-issued security.
Unsettled when-issued transactions were as follows: |

Counterparty	Value	Unrealized Appreciation
Bank of America Merrill
Lynch	$ 5,809,128	$ 171

| (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. |
| (f) | Securities represent bonds
transferred to a TOB 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 TOBs. |
| (g) | Investments in companies
considered to be an affiliate of the Trust during the year, for purposes of
Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as
follows: |

Affiliate — BIF California Municipal Money Fund	26,178,133	(23,457,890	)	2,720,243	$3,543

| (h) | Represents the current
yield as of report date. | |
| --- | --- | --- |
| | For Trust compliance
purposes, the Trusts sector classifications refer to any one or more of the sector sub-classifications used by one
or more widely recognized market indexes or ratings group indexes, and/or as
defined by Trust management. These definitions may not apply for purposes of
this report, which may combine such sector sub-classifications for reporting
ease. | |
| | Fair Value Measurements
Various inputs are used in determining the fair value of investments. These inputs are categorized in
three broad levels for financial statement purposes as follows: | |
| | | Level 1 price quotations
in active markets/exchanges for identical assets and liabilities |
| | | Level 2 other observable
inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are
active, quoted prices for identical or similar assets or liabilities in
markets that are not active, inputs other than quoted prices that are
observable for the assets or liabilities (such as interest rates, yield
curves, volatilities, prepayment speeds, loss severities, credit risks and
default rates) or other market-corroborated inputs) |
| | | Level 3 unobservable
inputs based on the best information available in the circumstances, to the extent observable
inputs are not available (including the Trusts own assumptions used in
determining the fair value of investments) |

The categorization of a value determined for investments is based on the pricing transparency of the investment and does not necessarily correspond to the Trusts perceived risk of 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, 2011 in determining the fair valuation of the Trusts investments:

Valuation Inputs	Level 1	Level 2	Total
Assets:
Investments:
Long-Term Investments 1		$ 755,582,695	$ 755,582,695
Short-Term Securities	$ 2,720,243		2,720,243
Total	$ 2,720,243	$ 755,582,695	$ 758,302,938

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

See Notes to Financial Statements. — ANNUAL REPORT	JULY 31, 2011	17

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

Municipal Bonds	Par (000)	Value
Florida 149.0%
Corporate 8.6%
County of Escambia Florida, Refunding RB, Environment, Series A, AMT, 5.75%, 11/01/27	$ 4,000	$ 4,022,240
Hillsborough County IDA, Refunding RB, Tampa Electric Co. Project:
5.50%, 10/01/23	1,955	1,986,339
Series A, 5.65%, 5/15/18	1,000	1,144,100
		7,152,679
County/City/Special District/School District 69.5%
Broward County School Board Florida, COP, Refunding, Series A, 5.00%, 7/01/20	2,000	2,172,220
Broward County School Board Florida, COP, Series A (AGM), 5.25%, 7/01/22	2,500	2,671,650
County of Hillsborough Florida, RB (AMBAC), 5.00%, 11/01/20	5,545	6,006,122
County of Miami-Dade Florida, RB, Sub-Series B (NPFGC), 5.63%, 10/01/32 (a)	7,560	1,794,215
County of Miami-Dade Florida, Refunding RB, Sub-Series A (NPFGC) (a):
5.33%, 10/01/19	5,365	3,480,919
5.31%, 10/01/20	10,000	5,989,100
County of Orange Florida, Refunding RB, Series A (NPFGC), 5.13%, 1/01/22	2,200	2,290,838
Florida State Board of Education, GO, Refunding, Capital Outlay, Series B, 5.00%, 6/01/20	485	564,108
Hillsborough County School Board, COP (NPFGC), 5.00%, 7/01/27	1,000	1,012,380
Miami-Dade County Educational Facilities Authority Florida, RB, University of Miami, Series A (AMBAC), 5.00%, 4/01/24 (b)	1,000	1,111,370
Miami-Dade County School Board, COP, Refunding, Series B (AGC), 5.25%, 5/01/21	4,000	4,388,440
Northern Palm Beach County Improvement District, RB, Water Control & Improvement:
Series 43, 6.10%, 8/01/21	195	192,990
Unit of Development No. 43, 6.10%, 8/01/11 (b)	2,735	2,763,198
Northern Palm Beach County Improvement District, Special Assessment Bonds, Refunding, Water Control & Improvement District No. 43, Series B (ACA):
4.50%, 8/01/22	1,000	860,080
5.00%, 8/01/31	1,000	820,820
Palm Beach County School District, COP, Refunding, Series D (AGM), 5.00%, 8/01/28	6,500	6,596,915
Sterling Hill Community Development District, Special Assessment Bonds, Series A, 6.10%, 5/01/23	3,705	3,423,568
Stevens Plantation Improvement Project Dependent Special District, RB, 6.38%, 5/01/13	2,425	2,176,971
Tolomato Community Development District, Special Assessment Bonds, 6.38%, 5/01/17	1,150	817,558
Village Center Community Development District, RB:
(NPFGC), 5.25%, 10/01/23	5,000	4,843,200
Sub-Series B, 6.35%, 1/01/18	2,000	2,008,300
Village Community Development District No. 5 Florida, Special Assessment Bonds, Series A, 6.00%, 5/01/22	1,100	1,115,180
Watergrass Community Development District, Special Assessment Bonds, Series B, 5.13%, 11/01/14	1,000	652,890
		57,753,032
Education 0.9%
Orange County Educational Facilities Authority, RB, Rollins College Project (AMBAC), 5.25%, 12/01/22	725	784,406

| Municipal
Bonds | Par (000) | Value |
| --- | --- | --- |
| Florida (continued) | | |
| Health 17.6% | | |
| Escambia County Health Facilities Authority, RB, Florida Health Care Facility Loan, VHA Program (AMBAC), 5.95%, 7/01/20 | $ 416 | $ 429,874 |
| Halifax Hospital Medical Center, Refunding RB, Series A, 5.25%, 6/01/26 | 2,500 | 2,474,425 |
| Highlands County Health Facilities Authority, Refunding RB, Hospital, Adventist Health, Series I, 5.00%, 11/15/20 | 2,155 | 2,398,989 |
| Hillsborough County IDA, RB, H. Lee Moffitt Cancer Center Project, Series A, 5.25%, 7/01/22 | 1,500 | 1,550,775 |
| Marion County Hospital District Florida, Refunding RB, Health System, Munroe Regional, 5.00%, 10/01/22 | 1,500 | 1,536,285 |
| Orange County Health Facilities Authority, RB, Hospital, Adventist Health System, 5.63%, 11/15/32 (b) | 4,450 | 4,785,664 |
| Palm Beach County Health Facilities Authority, Refunding RB, Bethesda Healthcare System Project, Series A (AGM), 5.00%, 7/01/20 | 1,285 | 1,428,470 |
| | | 14,604,482 |
| Housing 2.8% | | |
| Florida Housing Finance Corp., RB, Homeowner Mortgage, Series 2, AMT (Ginnie Mae), 4.70%, 7/01/22 | 1,065 | 1,076,747 |
| Jacksonville Housing Finance Authority, Refunding RB, Series A-1, AMT (Ginnie Mae), 5.63%, 10/01/39 | 570 | 611,553 |
| Manatee County Housing Finance Authority, RB, Series A, AMT (Fannie Mae), 5.90%, 9/01/40 | 575 | 624,341 |
| | | 2,312,641 |
| State 15.0% | | |
| Florida Municipal Loan Council, RB: | | |
| CAB, Series A (NPFGC), 5.22%, 4/01/20 (a) | 4,000 | 2,595,080 |
| Series D (AGM), 5.00%, 10/01/19 | 1,050 | 1,179,538 |
| Series D (AGM), 4.00%, 10/01/20 | 1,105 | 1,147,985 |
| Series D (AGM), 4.00%, 10/01/21 | 500 | 514,180 |
| Florida State Board of Education, GO, Public Education, Series J (AMBAC), 5.00%, 6/01/24 | 6,150 | 6,465,433 |
| Florida State Board of Education, GO, Refunding, Public Education, Series I, 5.00%, 6/01/18 | 500 | 539,660 |
| | | 12,441,876 |
| Transportation 6.5% | | |
| County of Lee Florida, Refunding RB, Series B (AMBAC): | | |
| 5.00%, 10/01/20 | 2,250 | 2,336,670 |
| 5.00%, 10/01/22 | 3,000 | 3,082,080 |
| | | 5,418,750 |
| Utilities 28.1% | | |
| City of Deltona Florida, RB (NPFGC), 5.00%, 10/01/23 | 1,095 | 1,123,240 |
| City of Lakeland Florida, Refunding RB, 5.00%, 10/01/27 | 1,000 | 1,011,010 |
| City of Marco Island Florida, RB (NPFGC): | | |
| 5.25%, 10/01/21 | 1,000 | 1,067,350 |
| 5.00%, 10/01/22 | 2,000 | 2,094,100 |
| 5.00%, 10/01/23 | 1,375 | 1,424,445 |
| City of Palm Coast Florida, RB (NPFGC): | | |
| 5.00%, 10/01/22 | 1,770 | 1,807,860 |
| 5.00%, 10/01/23 | 1,485 | 1,512,116 |
| 5.00%, 10/01/24 | 1,500 | 1,523,490 |
| County of Miami-Dade Florida, Refunding RB, System, Series B (AGM), 5.25%, 10/01/19 | 4,000 | 4,683,560 |

See Notes to Financial Statements. — 18	ANNUAL REPORT	JULY 31, 2011

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

Municipal Bonds	Par (000)	Value
Florida (concluded)
Utilities (concluded)
Tohopekaliga Water Authority, RB, Series B (AGM):
5.00%, 10/01/22	$ 1,975	$ 2,106,812
5.00%, 10/01/23	1,180	1,258,753
Tohopekaliga Water Authority, Refunding RB, Series A (AGM), 5.00%, 10/01/21	3,630	3,776,543
		23,389,279
Total Municipal Bonds in Florida		123,857,145
Puerto Rico 1.4%
State 1.4%
Commonwealth of Puerto Rico, GO, Public Improvement (AGM), 5.50%, 7/01/19	1,000	1,109,550
U.S. Virgin Islands 1.2%
Corporate 1.2%
Virgin Islands Public Finance Authority, Refunding RB, Senior Secured, Hovensa Coker Project, AMT, 6.50%, 7/01/21	1,000	987,660
Total Municipal Bonds 151.6%		125,954,355

Municipal Bonds Transferred to Tender Option Bond Trusts (c)
Florida 1.0%
Housing 1.0%
Lee County Housing Finance Authority, RB, Multi-County Program, Series A-2 (Ginnie Mae), 6.00%, 9/01/40	750	826,770
Total
Municipal Bonds Transferred to Tender Option Bond Trusts 1.0%		826,770
Total
Long-Term Investments (Cost $126,160,555) 152.6%		126,781,125

| Short-Term
Securities — BIF Florida Municipal Money Fund, 0.00% (d)(e) | 1,843,816 | 1,843,816 | |
| --- | --- | --- | --- |
| Total
Short-Term Securities (Cost $1,843,816) 2.2% | | 1,843,816 | |
| Total Investments (Cost $128,004,371*) 154.8% | | 128,624,941 | |
| Liabilities in Excess of Other Assets (2.5)% | | (2,111,706 | ) |
| Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable (0.6)% | | (500,874 | ) |
| AMPS, at Redemption Value (51.6)% | | (42,900,915 | ) |
| Net Assets Applicable to Common Shares 100.0% | $ | 83,111,446 | |

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

Aggregate cost	$
Gross unrealized
appreciation	$ 3,298,277
Gross unrealized
depreciation	(2,654,237	)
Net unrealized appreciation	$ 644,040

| (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) | Securities represent bonds
transferred to a TOB 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 TOBs. |
| (d) | Investments in companies
considered to be an affiliate of the Trust during the year, for purposes of
Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as
follows: |

Affiliate — BIF Florida Municipal Money Fund	5,065,158	(3,221,342	)	1,843,816

| (e) | Represents the current
yield as of report date. | |
| --- | --- | --- |
| | For Trust compliance
purposes, the Trusts sector classifications refer to any one or more of the sector sub-classifications used by one
or more widely recognized market indexes or rating group indexes, and/or as
defined by Trust management. These definitions may not apply for purposes of
this report, which may combine such sector sub-classifications for reporting
ease. | |
| | Fair Value Measurements
Various inputs are used in determining the fair value of investments. These inputs are categorized in
three broad levels for financial statement purposes as follows: | |
| | | Level 1 price quotations
in active markets/exchanges for identical assets and liabilities |
| | | Level 2 other observable
inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are
active, quoted prices for identical or similar assets or liabilities in
markets that are not active, inputs other than quoted prices that are
observable for the assets or liabilities (such as interest rates, yield
curves, volatilities, prepayment speeds, loss severities, credit risks and
default rates) or other market-corroborated inputs) |
| | | Level 3 unobservable
inputs based on the best information available in the circumstances, to the extent observable
inputs are not available (including the Trusts own assumptions used in
determining the fair value of investments) |

The following table summarizes the inputs used as of July 31, 2011 in determining the fair valuation of the Trusts investments:

Valuation Inputs	Level 1	Level 2	Total
Assets:
Investments:
Long-Term Investments 1		$ 126,781,125	$ 126,781,125
Short-Term Securities	$ 1,843,816		1,843,816
Total	$ 1,843,816	$ 126,781,125	$ 128,624,941

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

See Notes to Financial Statements. — ANNUAL REPORT	JULY 31, 2011	19

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

Municipal Bonds	Par (000)	Value
Alaska 0.3%
Northern Tobacco Securitization Corp., RB, Series A, 5.00%, 6/01/46	$ 50	$ 32,999
California 13.1%
Bay Area Toll Authority, Refunding RB, San Francisco Bay Area, Series F-1, 5.63%, 4/01/44	195	205,466
California Educational Facilities Authority, RB, University of Southern California, Series A, 5.25%, 10/01/38	200	210,096
California Health Facilities Financing Authority, Refunding RB:
Catholic Healthcare West, Series A, 6.00%, 7/01/39	130	136,246
Sutter Health, Series B, 6.00%, 8/15/42	120	127,834
Los Angeles Department of Airports, Refunding RB, Senior, Los Angeles International Airport, Series A, 5.00%, 5/15/35	395	400,870
Los Angeles Department of Water & Power, RB, Power System, Sub-Series A-1, 5.25%, 7/01/38	200	206,548
San Diego Regional Building Authority California, RB, County Operations Center & Annex, Series A, 5.38%, 2/01/36	240	249,070
State of California, GO, Various Purpose, 6.00%, 3/01/33	185	202,099
		1,738,229
Colorado 1.2%
Colorado Health Facilities Authority, Refunding RB, Catholic Healthcare, Series A, 5.50%, 7/01/34	155	159,909
Delaware 1.3%
County of Sussex Delaware, RB, NRG Energy, Inc., Indian River Project, 6.00%, 10/01/40	175	176,356
Florida 5.3%
Arborwood Community Development District, Special Assessment Bonds, Master Infrastructure Projects, Series B, 5.10%, 5/01/14	195	162,412
Manatee County Housing Finance Authority, RB, Series A, AMT (Ginnie Mae), 5.90%, 9/01/40	145	157,442
Village Center Community Development District, RB, Series A (NPFGC), 5.00%, 11/01/32	450	388,075
		707,929
Georgia 4.6%
City of Atlanta Georgia, RB, Refunding, General, Series B, AMT, 5.00%, 1/01/29 (a)	45	45,335
Municipal Electric Authority of Georgia, Refunding RB, Project One, Sub-Series D, 6.00%, 1/01/23	500	565,735
		611,070
Illinois 11.1%
City of Chicago Illinois, Refunding RB, General, Third Lien, Series C, 6.50%, 1/01/41	445	489,727
County of Cook Illinois, GO, Refunding, Series A, 5.25%, 11/15/33	100	103,867
Illinois Finance Authority, RB, Navistar International, Recovery Zone, 6.50%, 10/15/40	75	77,081
Illinois Finance Authority, Refunding RB, Series A:
Carle Foundation, 6.00%, 8/15/41	250	252,242
Northwestern Memorial Hospital, 6.00%, 8/15/39	250	266,897
OSF Healthcare System, 6.00%, 5/15/39	150	152,546
Railsplitter Tobacco Settlement Authority, RB:
5.50%, 6/01/23	100	103,605
6.00%, 6/01/28	30	30,896
		1,476,861

Municipal Bonds	Par (000)	Value
Indiana 2.7%
Indiana Municipal Power Agency, RB, Series B, 6.00%, 1/01/39	$ 335	$ 355,546
Iowa 0.2%
Iowa Tobacco Settlement Authority, RB, Series C, 5.63%, 6/01/46	40	29,803
Kansas 2.0%
Kansas Development Finance Authority, Refunding RB, Adventist Health, 5.50%, 11/15/29	250	268,560
Kentucky 4.2%
Kentucky Economic Development Finance Authority, Refunding RB, Owensboro Medical Health System, Series A, 6.38%, 6/01/40	100	101,916
Louisville & Jefferson County Metropolitan Government Parking Authority, RB, Series A, 5.75%, 12/01/34	220	237,659
Louisville/Jefferson County Metropolitan Government, Refunding RB, Jewish Hospital & St. Marys HealthCare, 6.13%, 2/01/37	215	215,742
		555,317
Louisiana 0.8%
Louisiana Local Government Environmental Facilities & Community Development Authority, RB, Westlake Chemical Corp., Series A-1, 6.50%, 11/01/35	100	103,493
Maine 1.5%
Maine Health & Higher Educational Facilities Authority, RB, Maine General Medical Center, 7.50%, 7/01/32 (a)	190	204,296
Maryland 1.1%
Maryland EDC, Refunding RB, CNX Marine Terminals, Inc., 5.75%, 9/01/25	145	143,066
Massachusetts 7.4%
Massachusetts Development Finance Agency, Refunding RB, Trustees Deerfield Academy, 5.00%, 10/01/40	125	130,029
Massachusetts HFA, HRB, Series B, AMT, 5.50%, 6/01/41	220	220,288
Massachusetts HFA, Refunding HRB, Series F, AMT, 5.70%, 6/01/40	250	253,568
Massachusetts HFA, Refunding RB, Series C, AMT, 5.35%, 12/01/42	120	116,791
Massachusetts State College Building Authority, RB, Series A, 5.50%, 5/01/39	250	262,687
		983,363
Michigan 7.4%
Kalamazoo Hospital Finance Authority, Refunding RB, Bronson Methodist Hospital, 5.50%, 5/15/36	200	199,446
Lansing Board of Water & Light Utilities, RB, Series A, 5.50%, 7/01/41	130	137,743
Michigan State Building Authority, Refunding RB, Facilities Program, Series I, 6.00%, 10/15/38	250	263,412
Royal Oak Hospital Finance Authority Michigan, Refunding RB, William Beaumont Hospital, 8.25%, 9/01/39	325	375,209
		975,810
Nevada 5.5%
City of Las Vegas Nevada, GO, Limited Tax, Performing Arts Center, 6.00%, 4/01/34	250	271,382
County of Clark Nevada, RB, Series B, 5.75%, 7/01/42	440	456,619
		728,001

| See Notes to Financial
Statements. — 20 | ANNUAL REPORT | JULY 31, 2011 |
| --- | --- | --- |

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

Municipal Bonds	Par (000)	Value
New Jersey 6.1%
New Jersey EDA, Refunding RB:
New Jersey American Water Co., Inc., Series A, AMT, 5.70%, 10/01/39	$ 175	$ 176,829
School Facilities Construction, Series AA, 5.50%, 12/15/29	250	265,392
New Jersey State Housing & Mortgage Finance Agency, RB, S/F Housing, Series CC, 5.25%, 10/01/29	165	169,494
New Jersey Transportation Trust Fund Authority, RB, Transportation System, Series A, 5.88%, 12/15/38	190	203,895
		815,610
New York 4.8%
New York City Municipal Water Finance Authority, RB, Second General Resolution, Series EE, 5.38%, 6/15/43	55	58,343
New York City Transitional Finance Authority, RB, Fiscal 2009, Series S-3, 5.25%, 1/15/39	250	259,680
New York Liberty Development Corp., Refunding RB, Second Priority, Bank of America Tower at One Bryant Park Project, 6.38%, 7/15/49	85	87,429
Triborough Bridge & Tunnel Authority, RB, General, Series A-2, 5.38%, 11/15/38	225	237,112
		642,564
Ohio 0.3%
Buckeye Tobacco Settlement Financing Authority, RB, Senior Series A-2, 6.50%, 6/01/47	45	36,404
Pennsylvania 10.6%
Pennsylvania Economic Development Financing Authority, RB, American Water Co. Project, 6.20%, 4/01/39	300	321,105
Pennsylvania HFA, Refunding RB, Series 99A, AMT, 5.15%, 4/01/38	200	198,552
Pennsylvania Turnpike Commission, RB:
Sub-Series A, 5.63%, 12/01/31	275	289,779
Sub-Series A, 6.00%, 12/01/41	350	364,367
Sub-Series C (AGC), 6.25%, 6/01/38	215	237,788
		1,411,591
Texas 14.2%
Central Texas Regional Mobility Authority, RB, Senior Lien, 6.00%, 1/01/41	240	236,724
City of Houston Texas, Refunding RB, Series B, 5.25%, 9/01/27 (a)	260	263,809
Conroe ISD Texas, GO, School Building, Series A, 5.75%, 2/15/35	140	155,467
Harris County Health Facilities Development Corp., Refunding RB, Memorial Hermann Healthcare System, Series B, 7.13%, 12/01/31	250	278,383
Lower Colorado River Authority, RB, 5.75%, 5/15/28	120	127,447
North Texas Tollway Authority, RB, Special Projects System, Series A, 5.50%, 9/01/41	250	265,293
Tarrant County Cultural Education Facilities Finance Corp., RB, Scott & White Healthcare, 6.00%, 8/15/45	280	293,521
Texas Private Activity Bond Surface Transportation Corp., RB, Senior Lien, NTE Mobility Partners LLC, North Tarrant Express Managed Lanes Project, 6.88%, 12/31/39	250	263,435
		1,884,079
Virginia 2.1%
Virginia Public School Authority, RB, School Financing, 6.50%, 12/01/35	250	280,440
Total Municipal Bonds 107.8%		14,321,296

Municipal Bonds Transferred to Tender Option Bond Trusts (b)	Par (000)	Value
California 20.6%
California Educational Facilities Authority, RB, University of Southern California, Series A, 5.25%, 10/01/39	$ 300	$ 314,205
Grossmont Union High School District, GO, Election of 2008, Series B, 5.00%, 8/01/40	300	298,632
Los Angeles Community College District California, GO:
Election of 2008, Series C, 5.25%, 8/01/39	390	409,988
Series A, 6.00%, 8/01/33	700	779,528
Los Angeles Unified School District California, GO, Series I, 5.00%, 1/01/34	60	60,466
San Diego Public Facilities Financing Authority, Refunding RB, Series B, 5.50%, 8/01/39	615	646,880
University of California, RB, Series O, 5.75%, 5/15/34	210	227,081
		2,736,780
District of Columbia 4.1%
District of Columbia, RB, Series A, 5.50%, 12/01/30	195	217,458
District of Columbia Water & Sewer Authority, RB, Series A, 5.50%, 10/01/39	300	318,737
		536,195
Florida 4.1%
Hillsborough County Aviation Authority, RB, Series A, AMT (AGC), 5.50%, 10/01/38	280	277,556
Lee County Housing Finance Authority, RB, Multi-County Program, Series A-2 (Ginnie Mae), 6.00%, 9/01/40	240	264,566
		542,122
Illinois 5.3%
Illinois Finance Authority, RB, University of Chicago, Series B, 6.25%, 7/01/38	400	449,308
Illinois State Toll Highway Authority, RB, Series B, 5.50%, 1/01/33	250	258,127
		707,435
Nevada 4.1%
Clark County Water Reclamation District, GO, Limited Tax, 6.00%, 7/01/38	500	548,210
New Hampshire 1.3%
New Hampshire Health & Education Facilities Authority, Refunding RB, Dartmouth College, 5.25%, 6/01/39	165	174,682
New Jersey 2.3%
New Jersey Transportation Trust Fund Authority, RB, Transportation System, Series A (AGM), 5.00%, 12/15/32	300	305,556
New York 6.4%
New York City Municipal Water Finance Authority, RB:
Fiscal 2009, Series A, 5.75%, 6/15/40	240	263,753
Series FF-2, 5.50%, 6/15/40	255	272,718
New York State Dormitory Authority, ERB, Series B, 5.25%, 3/15/38	300	314,769
		851,240
Ohio 1.8%
County of Allen Ohio, Refunding RB, Catholic Healthcare, Series A, 5.25%, 6/01/38	230	230,789
South Carolina 4.1%
South Carolina State Public Service Authority, RB, Santee Cooper, Series A, 5.50%, 1/01/38	510	543,186
Texas 5.5%
City of San Antonio Texas, Refunding RB, Series A, 5.25%, 2/01/31	300	322,831
Harris County Cultural Education Facilities Finance Corp., RB, Hospital, Texas Childrens Hospital Project, 5.50%, 10/01/39	400	412,172
		735,003

See Notes to Financial Statements. — ANNUAL REPORT	JULY 31, 2011	21

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

Municipal Bonds Transferred to Tender Option Bond Trusts (b)	Par (000)	Value
Virginia
1.0%
Fairfax County IDA Virginia, Refunding RB, Health Care, Inova Health System, Series A, 5.50%, 5/15/35	$ 130	$ 134,815
Wisconsin 1.8%
Wisconsin Health & Educational Facilities Authority, Refunding RB, Froedtert & Community Health, Inc., 5.25%, 4/01/39	240	240,830
Total
Municipal Bonds Transferred to Tender Option Bond Trusts 62.4%		8,286,843
Total
Long-Term Investments (Cost $21,751,350) 170.2%		22,608,139

| Short-Term
Securities — FFI Institutional Tax-Exempt Fund, 0.01% (c)(d) | 302,911 | 302,911 | |
| --- | --- | --- | --- |
| Total
Short-Term Securities (Cost $302,911) 2.3% | | 302,911 | |
| Total Investments (Cost $22,054,261*) 172.5% | | 22,911,050 | |
| Liabilities in Excess of Other Assets (4.4)% | | (590,195 | ) |
| Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable (33.6)% | | (4,462,033 | ) |
| AMPS, at Redemption Value (34.4)% | | (4,575,047 | ) |
| Net Assets Applicable to Common Shares 100.0% | $ | 13,283,775 | |

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

Aggregate cost	$
Gross unrealized
appreciation	$ 995,029
Gross unrealized
depreciation	(203,713	)
Net unrealized appreciation	$ 791,316

(a) When-issued security. Unsettled when-issued transactions were as follows:

Counterparty	Value	Unrealized Appreciation (Depreciation)
Bank of America Merrill
Lynch	$ 204,296	$ 3,031
National Financial
Securities	$ 45,335	$ 904
Piper Jaffray	$ 263,809	$ (68	)

| (b) | Securities represent bonds
transferred to a TOB 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 TOBs. |
| --- | --- |
| (c) | Investments in companies
considered to be an affiliate of the Trust during the year, for purposes of
Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as
follows: |

Affiliate — FFI Institutional Tax-Exempt Fund	353,621	(50,710	)	302,911	Income — $ 377

| (d) | Represents the current
yield as of report date. |
| --- | --- |
| | Financial futures
contracts sold as of July 31,2011 were as follows: |

| Contracts — 5 | 10-Year
US Treasury Note | Chicago Board of Trade | September 2011 | Notional Value — $ 613,037 | Unrealized Depreciation — $ (15,400 | ) |
| --- | --- | --- | --- | --- | --- | --- |


	Level 1 price quotations
in active markets/exchanges for identical assets and liabilities
	Level 2 other observable
inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are
active, quoted prices for identical or similar assets or liabilities in
markets that are not active, inputs other than quoted prices that are
observable for the assets or liabilities (such as interest rates, yield
curves, volatilities, prepayment speeds, loss severities, credit risks and
default rates) or other market-corroborated inputs)
	Level 3 unobservable
inputs based on the best information available in the circumstances, to the extent observable
inputs are not available (including the Trusts own assumptions used in
determining the fair value of investments and derivative financial
instruments)
The categorization of a
value determined for investments and derivative financial instruments is
based on the pricing transparency of the investment and derivative financial
instrument and does not necessarily correspond to the Trusts perceived risk
of investing in those securities. For information about the Trusts policy
regarding valuation of investments and derivative financial instruments 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, 2011 in determining the fair
valuation of the Trusts investments and derivative financial instruments:

Valuation Inputs	Level 1	Level 2	Total
Assets:
Investments:
Long-Term Investments 1		$ 22,608,139	$ 22,608,139
Short-Term Securities	$ 302,911		302,911
Total	$ 302,911	$ 22,608,139	$ 22,911,050

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

| Valuation
Inputs | Level 1 | | | Total | |
| --- | --- | --- | --- | --- | --- |
| Derivative Financial Instruments 2 | | | | | |
| Liabilities: | | | | | |
| Interest rate contracts | $ (15,400) | | | $ (15,400 | ) |

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

| See Notes to Financial
Statements. — 22 | ANNUAL REPORT | JULY 31, 2011 |
| --- | --- | --- |

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

Municipal Bonds	Par (000)	Value
Alaska
0.2%
Northern Tobacco Securitization Corp., RB, Asset Backed, Series A, 5.00%, 6/01/46	$ 330	$ 217,797
California 14.7%
Bay Area Toll Authority, Refunding RB, San Francisco Bay Area, Series F-1, 5.63%, 4/01/44	1,355	1,427,723
California Educational Facilities Authority, RB, University of Southern California, Series A, 5.25%, 10/01/38	1,315	1,381,381
California Health Facilities Financing Authority, Refunding RB, Series A:
Catholic Healthcare West, 6.00%, 7/01/39	890	932,765
St. Joseph Health System, 5.75%, 7/01/39
Grossmont Union High School District, GO, Election of 2008, Series B, 4.75%, 8/01/45	1,910	1,782,183
Los Angeles Department of Airports, Refunding RB, Senior, Los Angeles International Airport, Series A, 5.00%, 5/15/35	2,725	2,765,493
Los Angeles Department of Water & Power, RB, Power System, Sub-Series A-1, 5.25%, 7/01/38	1,750	1,807,295
San Diego Regional Building Authority California, RB, County Operations Center & Annex, Series A, 5.38%, 2/01/36	1,600	1,660,464
State of California, GO, Various Purpose, 6.00%, 3/01/33	1,275	1,392,848
		13,150,152
Colorado 3.3%
City & County of Denver Colorado, Refunding RB, Series A, 5.25%, 11/15/36	1,810	1,847,666
Colorado Health Facilities Authority, Refunding RB, Catholic Healthcare, Series A, 5.50%, 7/01/34	1,095	1,129,679
		2,977,345
Delaware 1.4%
County of Sussex Delaware, RB, NRG Energy, Inc., Indian River Project, 6.00%, 10/01/40	1,230	1,239,532
District of Columbia 1.2%
District of Columbia Water & Sewer Authority, RB, Series A, 5.25%, 10/01/29	1,000	1,076,570
Florida 3.1%
Escambia County Health Facilities Authority, RB, Florida Health Care Facility Loan, VHA Program (AMBAC), 5.95%, 7/01/20	579	597,693
Village Center Community Development District, RB, Series A (NPFGC), 5.00%, 11/01/32	1,795	1,547,990
Watergrass Community Development District, Special Assessment Bonds, Series B, 5.13%, 11/01/14	1,000	652,890
		2,798,573
Georgia 3.7%
Municipal Electric Authority of Georgia, Refunding RB, Project One, Sub-Series D, 6.00%, 1/01/23	2,900	3,281,263
Illinois 15.1%
Chicago Park District, GO, Harbor Facilities, Series C, 5.25%, 1/01/40	1,105	1,130,514
City of Chicago Illinois, Refunding RB, General, Third Lien, Series C, 6.50%, 1/01/41	2,955	3,252,007
County of Cook Illinois, GO, Refunding, Series A, 5.25%, 11/15/33	1,685	1,750,159
Illinois Finance Authority, RB:
Navistar International, Recovery Zone, 6.50%, 10/15/40	510	524,153
Rush University Medical Center Obligation Group, Series B, 7.25%, 11/01/30	1,600	1,788,784

| Municipal
Bonds | Par (000) | Value |
| --- | --- | --- |
| Illinois (concluded) | | |
| Illinois Finance Authority, Refunding RB, Series A: | | |
| Carle Foundation, 6.00%, 8/15/41 | $ 1,000 | $ 1,008,970 |
| Northwestern Memorial Hospital, 6.00%, 8/15/39 | 1,900 | 2,028,421 |
| OSF Healthcare System, 6.00%, 5/15/39 | 990 | 1,006,800 |
| Railsplitter Tobacco Settlement Authority, RB: | | |
| 5.50%, 6/01/23 | 690 | 714,874 |
| 6.00%, 6/01/28 | 195 | 200,821 |
| State of Illinois, RB, Build Illinois, Series B, 5.25%, 6/15/34 | 125 | 126,844 |
| | | 13,532,347 |
| Indiana 2.6% | | |
| Indiana Municipal Power Agency, RB, Series B, 6.00%, 1/01/39 | 2,210 | 2,345,539 |
| Iowa 0.2% | | |
| Iowa Tobacco Settlement Authority, RB, Asset Backed, Series C, 5.63%, 6/01/46 | 270 | 201,172 |
| Kansas 1.9% | | |
| Kansas Development Finance Authority, Refunding RB, Adventist Health, 5.50%, 11/15/29 | 1,600 | 1,718,784 |
| Kentucky 4.2% | | |
| Kentucky Economic Development Finance Authority, Refunding RB, Owensboro Medical Health System, Series A, 6.38%, 6/01/40 | 660 | 672,646 |
| Louisville & Jefferson County Metropolitan Government Parking Authority, RB, Series A, 5.75%, 12/01/34 | 1,500 | 1,620,405 |
| Louisville/Jefferson County Metropolitan Government, Refunding RB, Jewish Hospital & St. Marys HealthCare, 6.13%, 2/01/37 | 1,450 | 1,455,002 |
| | | 3,748,053 |
| Louisiana 0.8% | | |
| Louisiana Local Government Environmental Facilities & Community Development Authority, RB, Westlake Chemical Corp., Series A-1, 6.50%, 11/01/35 | 715 | 739,975 |
| Maine 1.5% | | |
| Maine Health & Higher Educational Facilities Authority, RB, Maine General Medical Center, 7.50%, 7/01/32 (a) | 1,270 | 1,365,555 |
| Maryland 1.1% | | |
| Maryland EDC, Refunding RB, CNX Marine Terminals, Inc., 5.75%, 9/01/25 | 985 | 971,860 |
| Massachusetts 2.0% | | |
| Massachusetts Health & Educational Facilities Authority, RB, Tufts University, 5.38%, 8/15/38 | 1,000 | 1,055,390 |
| Massachusetts State College Building Authority, RB, Series A, 5.50%, 5/01/39 | 750 | 788,062 |
| | | 1,843,452 |
| Michigan 5.4% | | |
| Kalamazoo Hospital Finance Authority, Refunding RB, Bronson Methodist Hospital, 5.50%, 5/15/36 | 1,665 | 1,660,388 |
| Lansing Board of Water & Light Utilities, RB, Series A, 5.50%, 7/01/41 | 915 | 969,497 |
| Michigan State Building Authority, Refunding RB, Facilities Program, Series I, 6.00%, 10/15/38 | 1,000 | 1,053,650 |
| Royal Oak Hospital Finance Authority Michigan, Refunding RB, William Beaumont Hospital, 8.25%, 9/01/39 | 995 | 1,148,718 |
| | | 4,832,253 |

| See Notes to Financial
Statements. — ANNUAL REPORT | JULY 31, 2011 | 23 |
| --- | --- | --- |

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

Municipal Bonds	Par (000)	Value
Nevada
7.1%
City of Las Vegas Nevada, GO, Limited Tax, Performing Arts Center, 6.00%, 4/01/34	$ 1,600	$ 1,736,848
County of Clark Nevada, GO, Refunding, Transportation, Series A, 5.00%, 12/01/29	1,400	1,455,048
County of Clark Nevada, RB, Series B, 5.75%, 7/01/42	3,075	3,191,143
		6,383,039
New Jersey 2.9%
New Jersey State Housing & Mortgage Finance Agency, RB, S/F Housing, Series CC, 5.25%, 10/01/29	1,165	1,196,735
New Jersey Transportation Trust Fund Authority, RB, Transportation System, Series A, 5.88%, 12/15/38	1,295	1,389,703
		2,586,438
New York 8.5%
New York City Municipal Water Finance Authority, RB, Second General Resolution, Series EE, 5.38%, 6/15/43	385	408,404
New York City Transitional Finance Authority, RB, Fiscal 2009, Series S-3, 5.25%, 1/15/39	1,500	1,558,080
New York Liberty Development Corp., Refunding RB, Second Priority, Bank of America Tower at One Bryant Park Project, 6.38%, 7/15/49	605	622,285
New York State Dormitory Authority, ERB, Series B, 5.25%, 3/15/38	3,250	3,409,998
Triborough Bridge & Tunnel Authority, RB, General, Series A-2, 5.38%, 11/15/38	1,510	1,591,283
		7,590,050
North Carolina 2.6%
North Carolina Medical Care Commission, RB, Novant Health Obligation, Series A, 4.75%, 11/01/43	2,735	2,324,941
Ohio 0.3%
Buckeye Tobacco Settlement Financing Authority, RB, Asset-Backed, Senior Series A-2, 6.50%, 6/01/47	295	238,646
Pennsylvania 4.4%
Pennsylvania Economic Development Financing Authority, RB, American Water Co. Project, 6.20%, 4/01/39	500	535,175
Pennsylvania Turnpike Commission, RB, Sub-Series A:
5.63%, 12/01/31	1,775	1,870,388
6.00%, 12/01/41	1,500	1,561,575
		3,967,138
Puerto Rico 3.0%
Puerto Rico Sales Tax Financing Corp., RB, First Sub-Series A, 5.75%, 8/01/37	2,605	2,670,412
Texas 17.8%
Central Texas Regional Mobility Authority, RB, Senior Lien, 6.00%, 1/01/41	1,670	1,647,205
Conroe ISD Texas, GO, School Building, Series A, 5.75%, 2/15/35	890	988,327
Harris County Health Facilities Development Corp., Refunding RB, Memorial Hermann Healthcare System, Series B, 7.13%, 12/01/31	500	556,765
Houston Texas Hotel Occupancy, RB, Refunding, Series B, 5.25%, 9/01/27 (a)	1,800	1,826,370
Lower Colorado River Authority, RB:
5.75%, 5/15/28	810	860,269
5.50%, 5/15/33	2,000	2,113,526
North Texas Tollway Authority, RB:
Special Projects System, Series A, 5.50%, 9/01/41	1,670	1,772,154
System, First Tier, Series K-1 (AGC), 5.75%, 1/01/38	1,000	1,038,450
Tarrant County Cultural Education Facilities Finance Corp., RB, Scott & White Healthcare, 6.00%, 8/15/45	1,905	1,996,992

| Municipal
Bonds | Par (000) | Value |
| --- | --- | --- |
| Texas (concluded) | | |
| Texas Private Activity Bond Surface Transportation Corp., RB, Senior Lien, NTE Mobility Partners LLC, North Tarrant Express Managed Lanes Project, 6.88%, 12/31/39 | $ 2,980 | $ 3,140,145 |
| | | 15,940,203 |
| Virginia 1.2% | | |
| Virginia Public School Authority, RB, School Financing, 6.50%, 12/01/35 | 1,000 | 1,121,760 |
| Total Municipal Bonds 110.2% | | 98,862,849 |
| Municipal
Bonds Transferred to Tender Option Bond Trusts (b) | | |
| California 20.1% | | |
| California Educational Facilities Authority, RB, University of Southern California, Series A, 5.25%, 10/01/39 | 1,995 | 2,089,463 |
| Grossmont Union High School District, GO, Election of 2008, Series B, 5.00%, 8/01/40 | 2,400 | 2,389,056 |
| Los Angeles Community College District California, GO: | | |
| Election of 2008, Series C, 5.25%, 8/01/39 | 2,630 | 2,764,787 |
| Series A, 6.00%, 8/01/33 | 3,898 | 4,343,085 |
| Los Angeles Unified School District California, GO, Series I, 5.00%, 1/01/34 | 400 | 403,108 |
| San Diego Public Facilities Financing Authority, Refunding RB, Series B, 5.50%, 8/01/39 | 4,214 | 4,433,493 |
| University of California, RB, Series O, 5.75%, 5/15/34 | 1,500 | 1,622,010 |
| | | 18,045,002 |
| District Of Columbia 3.9% | | |
| District of Columbia, RB, Series A, 5.50%, 12/01/30 | 1,395 | 1,555,662 |
| District of Columbia Water & Sewer Authority, RB, Series A, 5.50%, 10/01/39 | 1,799 | 1,912,421 |
| | | 3,468,083 |
| Florida 8.4% | | |
| Jacksonville Economic Development Commission, RB, Mayo Clinic Jacksonville, Series B, 5.50%, 11/15/36 | 7,490 | 7,544,153 |
| Illinois 3.5% | | |
| Illinois Finance Authority, RB, University of Chicago, Series B, 6.25%, 7/01/38 | 2,800 | 3,145,156 |
| Nevada 5.5% | | |
| Clark County Water Reclamation District, GO: | | |
| Limited Tax, 6.00%, 7/01/38 | 2,500 | 2,741,050 |
| Series B, 5.50%, 7/01/29 | 1,994 | 2,167,536 |
| | | 4,908,586 |
| New Hampshire 1.3% | | |
| New Hampshire Health & Education Facilities Authority, Refunding RB, Dartmouth College, 5.25%, 6/01/39 | 1,094 | 1,159,255 |
| New Jersey 2.3% | | |
| New Jersey Transportation Trust Fund Authority, RB, Transportation System, Series A (AGM), 5.00%, 12/15/32 | 2,000 | 2,037,040 |
| New York 6.4% | | |
| New York City Municipal Water Finance Authority, RB: | | |
| Fiscal 2009, Series A, 5.75%, 6/15/40 | 1,410 | 1,549,546 |
| Series FF-2, 5.50%, 6/15/40 | 1,994 | 2,133,618 |
| New York State Dormitory Authority, ERB, Series B, 5.25%, 3/15/38 | 2,000 | 2,098,460 |
| | | 5,781,624 |

| See Notes to Financial
Statements. — 24 | ANNUAL REPORT | JULY 31, 2011 |
| --- | --- | --- |

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

Municipal Bonds Transferred to Tender Option Bond Trusts (b)	Par (000)	Value
Ohio
1.7%
County of Allen Ohio, Refunding RB, Catholic Healthcare, Series A, 5.25%, 6/01/38	$ 1,560	$ 1,565,351
South Carolina 2.1%
South Carolina State Public Service Authority, RB, Santee Cooper, Series A, 5.50%, 1/01/38	1,755	1,869,198
Texas 5.6%
City of San Antonio Texas, Refunding RB, Series A, 5.25%, 2/01/31	2,025	2,179,108
Harris County Cultural Education Facilities Finance Corp., RB, Hospital, Texas Childrens Hospital Project, 5.50%, 10/01/39	2,750	2,833,682
		5,012,790
Virginia 1.0%
Fairfax County IDA Virginia, Refunding RB, Health Care, Inova Health System, Series A, 5.50%, 5/15/35	899	933,337
Wisconsin 1.9%
Wisconsin Health & Educational Facilities Authority, Refunding RB, Froedtert & Community Health Inc., 5.25%, 4/01/39	1,680	1,685,810
Total
Municipal Bonds Transferred to Tender Option Bond Trusts 63.7%		57,155,385
Total
Long-Term Investments (Cost $151,252,212) 173.9%		156,018,234

| Short-Term
Securities — FFI Institutional Tax-Exempt Fund, 0.01% (c)(d) | 2,119,108 | 2,119,108 | |
| --- | --- | --- | --- |
| Total
Short-Term Securities (Cost $2,119,108) 2.3% | | 2,119,108 | |
| Total Investments (Cost $153,371,320*) 176.2% | | 158,137,342 | |
| Liabilities in Excess of Other Assets (3.9)% | | (3,523,166 | ) |
| Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable (34.1)% | | (30,638,088 | ) |
| AMPS, at Redemption Value (38.2)% | | (34,250,572 | ) |
| Net Assets Applicable to Common Shares 100.0% | $ | 89,725,516 | |

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

Aggregate cost	$
Gross unrealized
appreciation	$ 6,336,567
Gross unrealized
depreciation	(2,072,637	)
Net unrealized appreciation	$ 4,263,930

(a) When-issued security. Unsettled when-issued transactions were as follows:

| Bank of America Merrill
Lynch | Value — $ 1,365,555 | Unrealized Appreciation (Depreciation) — $ 20,257 | |
| --- | --- | --- | --- |
| Piper Jaffray | $ 1,826,370 | $ (468 | ) |

Affiliate — FFI Institutional Tax-Exempt Fund	4,963,552	(2,844,444	)	2,119,108	Income — $ 3,536

| (d) | Represents the current
yield as of report date. |
| --- | --- |
| | Financial futures
contracts sold as of July 31, 2011 were as follows: |

| Contracts — 43 | 10-Year
US Treasury Note | Chicago Board of Trade | September 2011 | Notional Value — $ 5,268,348 | Unrealized Depreciation — $ (136,215 | ) |
| --- | --- | --- | --- | --- | --- | --- |


	Level 1 price quotations
in active markets/exchanges for identical assets and liabilities
	Level 2 other observable
inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are
active, quoted prices for identical or similar assets or liabilities in
markets that are not active, inputs other than quoted prices that are
observable for the assets or liabilities (such as interest rates, yield
curves, volatilities, prepayment speeds, loss severities, credit risks and
default rates) or other market-corroborated inputs)
	Level 3 unobservable
inputs based on the best information available in the circumstances, to the extent observable
inputs are not available (including the Trusts own assumptions used in
determining the fair value of investments and derivative financial
instruments)
The categorization of a
value determined for investments and derivative financial instruments is
based on the pricing transparency of the investment and derivative financial
instrument and does not necessarily correspond to the Trusts perceived risk
of investing in those securities. For information about the Trust s policy
regarding valuation of investments and derivative financial instruments and
other significant accounting policies, please refer to Note 1 of the Notes to
Financial Statements.
The following tables
summarize the inputs used as of July 31, 2011 in determining the fair
valuation of the Trusts investments and derivative financial instruments:

Valuation Inputs	Level 1	Level 2	Total
Assets:
Investments:
Long-Term Investments 1		$ 156,018,234	$ 156,018,234
Short-Term Securities	$ 2,119,108		2,119,108
Total	$ 2,119,108	$ 156,018,234	$ 158,137,342

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

Valuation Inputs	Level 1		Total
Derivative Financial Instruments 2
Liabilities:
Interest rate contracts	$ (136,215	)	$ (136,215	)

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

| See Notes to Financial
Statements. — ANNUAL REPORT | JULY 31, 2011 | 25 |
| --- | --- | --- |

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

Municipal Bonds	Par (000)	Value
New Jersey 141.3%
Corporate
15.5%
New Jersey EDA, RB, AMT
(a):
Continental Airlines, Inc. Project, 7.00%, 11/15/30	$ 925	$ 925,472
Disposal Waste Management of New Jersey, Series A, Mandatory Put Bonds, 5.30%, 6/01/15	500	539,545
New Jersey EDA, Refunding RB, New Jersey American Water Co., Inc. Project, Series A, AMT, 5.70%, 10/01/39	175	176,829
Salem County Utilities Authority, Refunding RB, Atlantic City Electric, Series A, 4.88%, 6/01/29	300	304,731
		1,946,577
County/City/Special District/School District 17.1%
City of Margate City New Jersey, GO, Improvement, 5.00%, 1/15/27	125	132,639
City of Perth Amboy New Jersey, GO, CAB (AGM), 4.50%, 7/01/34 (b)	100	96,104
Essex County Improvement Authority, RB, Newark Project, Series A (AGM):
5.00%, 11/01/20	190	197,113
6.00%, 11/01/30	275	292,636
Essex County Improvement Authority, Refunding RB, Project Consolidation (NPFGC):
5.50%, 10/01/28	300	339,849
5.50%, 10/01/29	260	292,716
Hudson
County Improvement Authority, RB:
CAB, Series A-1 (NPFGC), 4.52%, 12/15/32 (c)	1,000	258,260
Harrison Parking Facility Project, Series C (AGC), 5.38%, 1/01/44	340	354,875
Middlesex County Improvement Authority, RB, Subordinate, Heldrich Center Hotel, Series B, 6.25%, 1/01/37 (d)(e)	200	18,000
State of New Jersey, COP, Equipment Lease Purchase, Series A, 5.13%, 6/15/24	150	155,176
		2,137,368
Education 29.2%
New Jersey EDA, RB, School Facilities Construction:
Series CC-2, 5.00%, 12/15/31	200	203,722
Series CC-2, 5.00%, 12/15/32	200	202,708
Series S, 5.00%, 9/01/36	200	200,080
Series Y, 5.00%, 9/01/33	400	402,828
New Jersey EDA, Refunding RB, School Facilities, Series GG, 5.25%, 9/01/27	255	266,919
New Jersey Educational Facilities Authority, RB:
Montclair State University, Series J, 5.25%, 7/01/38	100	102,088
Refunding Kean University, Series A, 5.50%, 9/01/36	240	251,304
New Jersey Educational Facilities Authority, Refunding RB:
Georgian Court University, Series D, 5.00%, 7/01/33	100	92,831
New Jersey Institute of Technology, Series H, 5.00%, 7/01/31	80	81,496
Rowan University, Series B (AGC), 5.00%, 7/01/24	255	273,064
University of Medicine & Dentistry, Series B, 7.50%, 12/01/32	175	200,261
New Jersey Higher Education Assistance Authority, Refunding RB, Series 1A:
5.00%, 12/01/25	65	65,703
5.00%, 12/01/26	50	50,472
5.13%, 12/01/27	200	204,134
5.25%, 12/01/32	300	303,615
New Jersey Higher Education Student Assistance Authority, RB, Series 1, AMT, 5.75%, 12/01/29	240	244,094
Rutgers-State University of New Jersey, Refunding RB, Series F, 5.00%, 5/01/39	500	515,190
		3,660,509

Municipal Bonds	Par (000)	Value
New Jersey (continued)
Health
18.1%
Burlington County Bridge Commission, Refunding RB, The Evergreens Project, 5.63%, 1/01/38	$ 150	$ 125,939
New Jersey EDA, RB, First Mortgage, Lions Gate Project, Series A:
5.75%, 1/01/25	60	55,001
5.88%, 1/01/37	110	94,235
New Jersey EDA, Refunding RB:
First Mortgage, Winchester, Series A, 5.80%, 11/01/31	500	486,030
Seabrook Village Inc. Facility, 5.25%, 11/15/26	140	123,431
New Jersey Health Care Facilities Financing Authority, RB:
AHS Hospital Corp., 6.00%, 7/01/41	230	241,744
Hospital Asset Transformation Program, Series A, 5.25%, 10/01/38	250	252,360
Meridian Health, Series I (AGC), 5.00%, 7/01/38	100	99,556
Virtua Health (AGC), 5.50%, 7/01/38	150	154,554
New Jersey Health Care Facilities Financing Authority, Refunding RB:
CAB, St. Barnabas Health, Series B, 5.89%, 7/01/30 (c)	500	142,110
CAB, St. Barnabas Health, Series B, 5.68%, 7/01/36 (c)	840	140,683
CAB, St. Barnabas Health, Series B, 5.74%, 7/01/37 (c)	900	139,599
St. Barnabas Health Care System, Series A, 5.00%, 7/01/29	250	212,035
		2,267,277
Housing 13.7%
New Jersey State Housing & Mortgage Finance Agency, RB:
S/F Housing, Series CC, 5.00%, 10/01/34	210	211,048
S/F Housing, Series X, AMT, 4.85%, 4/01/16	500	513,140
S/F Housing, Series X, AMT, 5.05%, 4/01/18	215	224,359
Series A, 4.75%, 11/01/29	140	139,432
Series AA, 6.38%, 10/01/28	235	252,326
Series AA, 6.50%, 10/01/38	140	151,595
Newark Housing Authority, RB, South Ward Police Facility (AGC), 6.75%, 12/01/38	200	226,378
		1,718,278
State 20.3%
New Jersey EDA, RB:
Motor Vehicle Surcharge, Series A (NPFGC), 5.25%, 7/01/24	300	322,161
Motor Vehicle Surcharge, Series A (NPFGC), 5.25%, 7/01/25	570	606,548
Newark Downtown District Management Corp., 5.13%, 6/15/37	100	86,918
School Facilities Construction, Series Z (AGC), 5.50%, 12/15/34	500	522,450
School Facilities Construction, Series Z (AGC), 6.00%, 12/15/34	300	323,091
New Jersey EDA, Refunding RB:
New Jersey American Water Co., Inc., Project, Series B, AMT, 5.60%, 11/01/34	150	152,267
School Facilities Construction, Series AA, 5.50%, 12/15/29	200	212,314
School Facilities Construction, Series N-1 (NPFGC), 5.50%, 9/01/28	100	108,952
New Jersey Transportation Trust Fund Authority, RB, Transportation System, Series A (AGC), 5.63%, 12/15/28	100	106,153
State of New Jersey, COP, Equipment Lease Purchase, Series A, 5.25%, 6/15/28	100	102,719
		2,543,573

| See Notes to Financial
Statements. — 26 | ANNUAL
REPORT | JULY 31,
2011 |
| --- | --- | --- |

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

Municipal Bonds	Par (000)	Value
New Jersey (concluded)
Tobacco
1.1%
Tobacco Settlement Financing Corporation of New Jersey, Asset-Backed Revenue Refunding Bonds, Series 1A, 5.00%, 6/01/29	$ 170	$ 133,766
Transportation 26.3%
Delaware River Port Authority of Pennsylvania and New Jersey, RB:
Port District Project, Series B (AGM), 5.70%, 1/01/22	400	400,660
Series D, 5.00%, 1/01/40	95	95,385
New Jersey State Turnpike Authority, RB, Series E, 5.25%, 1/01/40	300	306,456
New Jersey State Turnpike Authority, Refunding RB (AMBAC):
Series C, 6.50%, 1/01/16	160	190,325
Series C, 6.50%, 1/01/16 (f)	485	539,999
Series C-2005, 6.50%, 1/01/16 (f)	55	66,148
New Jersey Transportation Trust Fund Authority, RB, Transportation System:
6.00%, 12/15/38	100	108,214
Series A, 6.00%, 6/15/35	450	499,158
Series A, 5.88%, 12/15/38	175	187,798
Port Authority of New York & New Jersey, RB, JFK International Air Terminal, 6.00%, 12/01/42	170	171,982
Port Authority of New York & New Jersey, Refunding RB, Consolidated, 152nd Series, AMT, 5.75%, 11/01/30	250	268,480
South Jersey Transportation Authority, RB, Series A (NPFGC), 4.50%, 11/01/35	490	455,107
		3,289,712
Total Municipal Bonds in New Jersey		17,697,060
Puerto Rico 12.7%
County/City/Special District/School District 3.8%
Puerto Rico Sales Tax Financing Corp., RB, First Sub-Series A, 6.00%, 8/01/42	250	261,295
Puerto Rico Sales Tax Financing Corp., Refunding RB, First Sub-Series C, 6.00%, 8/01/39	205	215,170
		476,465
State 6.1%
Puerto Rico Commonwealth Infrastructure Financing Authority, RB, CAB, Series A (AMBAC), 4.37%, 7/01/37 (c)	795	124,990
Puerto Rico Highway & Transportation Authority, Refunding RB, Series CC (AGM), 5.50%, 7/01/30	250	267,713
Puerto Rico Sales Tax Financing Corp., RB, First Sub-Series A, 5.75%, 8/01/37	365	374,165
		766,868
Utilities 2.8%
Puerto Rico Electric Power Authority, RB, Series WW, 5.50%, 7/01/38	350	350,780
Total Municipal Bonds in Puerto Rico		1,594,113
Total Municipal Bonds 154.0%		19,291,173
Municipal Bonds Transferred to Tender Option Bond Trusts (g)	Par (000)	Value
New Jersey 2.0%
Transportation 2.0%
Port Authority of New York & New Jersey, Refunding RB, Consolidated, 152nd Series, AMT, 5.25%, 11/01/35	$ 240	$ 244,957
Total
Municipal Bonds Transferred to Tender Option Bond Trusts 2.0%		244,957
Total
Long-Term Investments (Cost $19,798,402) 156.0%		19,536,130
Short-Term
Securities	Shares
BIF New Jersey Municipal Money Fund 0.00% (h)(i)	209,983	209,983
Total
Short-Term Securities (Cost $209,983) 1.7%		209,983
Total Investments (Cost $20,008,385*) 157.7%		19,746,113
Liabilities in Excess of Other Assets (1.3)%		(161,040	)
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable (1.3)%		(160,038	)
AMPS, at Redemption Value (55.1)%		(6,900,115	)
Net Assets Applicable to Common Shares 100.0%		$ 12,524,920

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

Aggregate cost	$
Gross unrealized
appreciation	$ 587,636
Gross unrealized
depreciation	(841,050	)
Net unrealized depreciation	$ (253,414	)

| (a) | Variable rate security.
Rate shown is as of report date. |
| --- | --- |
| (b) | 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. |
| (c) | Represents a zero-coupon
bond. Rate shown reflects the current yield as of report date. |
| (d) | Issuer filed for bankruptcy
and/or is in default of interest payments. |
| (e) | Non-income producing
security. |
| (f) | Security is collateralized
by municipal or US Treasury obligations. |
| (g) | Securities represent bonds
transferred to a TOB 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 TOBs. |
| (h) | Investments in companies
considered to be an affiliate of the Trust during the year, for purposes of
Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as
follows: |

Affiliate — BIF New Jersey Municipal Money Fund	413,597	(203,614	)	209,983	Income — $ 208

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

| See Notes to Financial
Statements. — ANNUAL REPORT | JULY 31, 2011 | 27 |
| --- | --- | --- |

Schedule of Investments (concluded) BlackRock New Jersey Investment Quality Municipal Trust Inc. (RNJ)

Financial futures contracts sold as of July 31,2011 were as follows:

Contracts	Issue	Exchange	Expiration
	10-Year
US	Chicago	September
5	Treasury
Note	Board
of Trade	2011	$ 613,037	$ (15,400)


	Level 1 price quotations
in active markets/exchanges for identical assets and liabilities
	Level 2 other observable
inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are
active, quoted prices for identical or similar assets or liabilities in
markets that are not active, inputs other than quoted prices that are
observable for the assets or liabilities (such as interest rates, yield
curves, volatilities, prepayment speeds, loss severities, credit risks and
default rates) or other market-corroborated inputs)
	Level 3 unobservable
inputs based on the best information available in the circumstances, to the extent observable
inputs are not available (including the Trusts own assumptions used in
determining the fair value of investments and derivative financial
instruments)
The categorization of a
value determined for investments and derivative financial instruments is
based on the pricing transparency of the investment and derivative financial
instrument and does not necessarily correspond to the Trusts perceived risk
of investing in those securities. For information about the Trusts policy
regarding valuation of investments and derivative financial instruments and
other significant accounting policies, please refer to Note 1 of the Notes to
Financial Statements.
The following tables
summarize the inputs used as of July 31, 2011 in determining the fair
valuation of the Trusts investments and derivative financial instruments:

Valuation Inputs	Level 1	Level 2	Total
Assets:
Investments:
Long-Term Investments 1		$ 19,536,130	$ 19,536,130
Short-Term Securities	$ 209,983		209,983
Total	$ 209,983	$ 19,536,130	$ 19,746,113

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

Valuation Inputs	Level 1		Total
Derivative Financial Instruments 2
Liabilities:
Interest rate contracts	$ (15,400	)	$ (15,400	)

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

| See Notes to Financial
Statements. — 28 | ANNUAL REPORT | JULY 31, 2011 |
| --- | --- | --- |

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

Municipal Bonds	Par (000)	Value
New Jersey 124.1%
Corporate
10.8%
New Jersey EDA, RB, AMT
(a):
Continental
Airlines, Inc. Project, 7.00%, 11/15/30	$ 3,450	$ 3,451,760
Continental
Airlines, Inc. Project, 7.20%, 11/15/30	2,000	2,002,160
Disposal Waste Management of New Jersey, Series A, 5.30%, 6/01/15	2,000	2,158,180
New Jersey EDA, Refunding RB, New Jersey American Water Co., Inc. Project, Series A, AMT, 5.70%, 10/01/39	1,500	1,515,675
Salem County Utilities Authority, Refunding RB, Atlantic City Electric, Series A, 4.88%, 6/01/29	2,400	2,437,848
		11,565,623
County/City/Special
District/School District 14.9%
City of Margate City New Jersey, GO, Improvement, 5.00%, 1/15/28	1,085	1,143,503
City of Perth Amboy New
Jersey, GO, CAB (AGM) (b):
4.50%,
7/01/34	1,075	1,033,118
4.50%,
7/01/35	175	167,563
Essex County Improvement Authority, RB, Newark Project, Series A (AGM):
5.00%,
11/01/20	735	762,518
6.00%,
11/01/30	1,090	1,159,902
Essex County Improvement Authority, Refunding RB, Project Consolidation (NPFGC):
5.50%,
10/01/28	1,440	1,631,275
5.50%,
10/01/29	2,630	2,960,933
Hudson County Improvement Authority, RB, Harrison Parking Facility Project, Series C (AGC):
5.25%,
1/01/39	2,000	2,075,800
5.38%,
1/01/44	2,400	2,505,000
Middlesex County Improvement Authority, RB, Subordinate, Heldrich Center Hotel, Series B, 6.25%, 1/01/37 (c)(d)	1,790	161,100
Newark Housing Authority, Refunding RB, Newark Redevelopment Project (NPFGC), 4.38%, 1/01/37	2,600	2,397,746
		15,998,458
Education
16.9%
New Jersey EDA, RB, School Facilities Construction, Series CC-2, 5.00%, 12/15/31	1,525	1,553,380
New Jersey EDA, Refunding RB, School Facilities, Series GG, 5.25%, 9/01/27	1,800	1,884,132
New Jersey Educational
Facilities Authority, RB:
Montclair State University, Series J, 5.25%, 7/01/38	580	592,110
Refunding Kean University, Series A, 5.50%, 9/01/36	2,060	2,157,026
New Jersey Educational Facilities Authority, Refunding RB:
College of New Jersey, Series D (AGM), 5.00%, 7/01/35	3,230	3,271,344
Fairleigh Dickinson University, Series C, 6.00%, 7/01/20	1,000	1,047,020
Georgian Court University, Series D, 5.00%, 7/01/33 (e)	250	232,078
New Jersey Institute of Technology, Series H, 5.00%, 7/01/31	660	672,342
University of Medicine & Dentistry, Series B, 7.50%, 12/01/32	1,450	1,659,308
Municipal Bonds	Par (000)	Value
New Jersey (continued)
Education
(concluded)
New Jersey Higher Education Assistance Authority, Refunding RB, Series 1A:
5.00%,
12/01/25	$ 535	$ 540,783
5.00%,
12/01/26	350	353,304
5.25%,
12/01/32	500	506,025
New Jersey Higher Education Student Assistance Authority, RB, Series 1, AMT, 5.75%, 12/01/29	2,055	2,090,058
Rutgers-State University of New Jersey, Refunding RB, Series F, 5.00%, 5/01/39	1,500	1,545,570
		18,104,480
Health
22.4%
Burlington County Bridge Commission, Refunding RB, The Evergreens Project, 5.63%, 1/01/38	1,000	839,590
New Jersey EDA, RB:
First Mortgage, Lions Gate Project, Series A, 5.75%, 1/01/25	500	458,345
First Mortgage, Lions Gate Project, Series A, 5.88%, 1/01/37	855	732,461
Masonic Charity Foundation Project, 5.50%, 6/01/31	875	879,935
New Jersey EDA, Refunding
RB:
First Mortgage, Winchester, Series A, 5.75%, 11/01/24	4,050	4,022,541
Seabrook
Village Inc. Facility, 5.25%, 11/15/26	1,790	1,578,153
New Jersey Health Care Facilities Financing Authority, RB:
AHS
Hospital Corp., 6.00%, 7/01/37	900	950,931
AHS
Hospital Corp., 6.00%, 7/01/41	1,045	1,098,358
Hospital Asset Transformation Program, Series A, 5.25%, 10/01/38	2,350	2,372,184
Kennedy
Health System, 5.63%, 7/01/31	2,030	2,029,858
Meridian
Health, Series I (AGC), 5.00%, 7/01/38	750	746,670
Virtua
Health (AGC), 5.50%, 7/01/38	1,250	1,287,950
New Jersey Health Care Facilities Financing Authority, Refunding RB:
Atlantic
City Medical System, 5.75%, 7/01/25	1,255	1,269,809
CAB, St. Barnabas Health, Series B, 5.89%, 7/01/30 (f)	2,500	710,550
CAB, St. Barnabas Health, Series B, 5.68%, 7/01/36 (f)	7,700	1,289,596
CAB, St. Barnabas Health, Series B, 5.74%, 7/01/37 (f)	7,250	1,124,548
Robert
Wood Johnson, 5.00%, 7/01/31	500	505,460
South
Jersey Hospital, 5.00%, 7/01/46	1,650	1,541,579
St. Barnabas Health Care System, Series A, 5.00%, 7/01/29	750	636,105
		24,074,623
Housing
16.0%
Middlesex County Improvement Authority, RB, AMT (Fannie Mae):
Administration Building Residential Project, 5.35%, 7/01/34	1,400	1,400,042
New Brunswick Apartments Rental Housing, 5.30%, 8/01/35	4,360	4,368,023

| See Notes to Financial
Statements. — ANNUAL REPORT | JULY 31, 2011 | 29 |
| --- | --- | --- |

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

Municipal Bonds	Par (000)	Value
New Jersey (continued)
Housing
(concluded)
New Jersey State Housing & Mortgage Finance Agency, RB:
S/F
Housing, Series CC, 5.00%, 10/01/34	$ 1,775	$ 1,783,857
S/F
Housing, Series X, AMT, 4.85%, 4/01/16	1,750	1,795,990
Series
A, 4.75%, 11/01/29	1,185	1,180,189
Series
AA, 6.38%, 10/01/28	1,395	1,497,853
Series
AA, 6.50%, 10/01/38	1,720	1,862,450
New Jersey State Housing & Mortgage Finance Agency, Refunding RB, S/F Housing, Series T, AMT, 4.70%, 10/01/37	665	621,296
Newark Housing Authority, RB, South Ward Police Facility (AGC):
5.75%,
12/01/30	580	619,921
6.75%,
12/01/38	1,850	2,093,997
		17,223,618
State
20.4%
Garden State Preservation Trust, RB, CAB, Series B (AGM), 5.22%, 11/01/26 (f)	6,000	2,901,300
New Jersey EDA, RB:
Kapkowski Road Landfill Project, Series 1998B, AMT, 6.50%, 4/01/31	5,000	4,892,050
Motor Vehicle Surcharge, Series A (NPFGC), 5.25%, 7/01/24	1,000	1,073,870
Motor Vehicle Surcharge, Series A (NPFGC), 5.25%, 7/01/25	1,365	1,452,524
School Facilities Construction, Series Z (AGC), 5.50%, 12/15/34	3,000	3,134,700
New Jersey EDA, Refunding
RB:
New Jersey American Water Co., Inc. Project, Series B, AMT, 5.60%, 11/01/34	1,275	1,294,265
School Facilities Construction, Series AA, 5.50%, 12/15/29	2,000	2,123,140
New Jersey EDA, Special Assessment Bonds, Refunding, Kapkowski Road Landfill Project, 6.50%, 4/01/28	2,500	2,562,825
New Jersey Transportation Trust Fund Authority, RB, Transportation System:
CAB,
Series C (AGM), 4.85%, 12/15/32 (f)	4,000	1,076,760
Series
A (AGC), 5.63%, 12/15/28	670	711,225
State of New Jersey, COP, Equipment Lease Purchase, Series A, 5.25%, 6/15/28	600	616,314
		21,838,973
Tobacco
1.1%
Tobacco Settlement Financing Corporation of New Jersey, Asset-Backed Revenue Refunding Bonds, Series 1A, 5.00%, 6/01/29	1,470	1,156,684
Transportation
21.1%
Delaware River Port Authority of Pennsylvania and New Jersey, RB:
Port District Project, Series B (AGM), 5.70%, 1/01/22	1,000	1,001,650
Series D, 5.00%, 1/01/40	800	803,240
New Jersey State Turnpike Authority, RB, Series E, 5.25%, 1/01/40	3,205	3,273,972
New Jersey Transportation Trust Fund Authority, RB, Transportation System:
6.00%,
12/15/38	945	1,022,622
Series
A, 6.00%, 6/15/35	3,845	4,265,028
Series
A, 5.88%, 12/15/38	1,770	1,899,440
Series
A (AGC), 5.50%, 12/15/38	1,000	1,044,260
Municipal Bonds	Par (000)	Value
New Jersey (concluded)
Transportation
(concluded)
Port Authority of New York & New Jersey, RB, JFK International Air Terminal, Special Project, Series 6:
AMT
(NPFGC), 5.75%, 12/01/22	$ 6,000	$ 5,966,940
6.00%,
12/01/42	1,430	1,446,674
Port Authority of New York & New Jersey, Refunding RB, Consolidated, 152nd Series, AMT, 5.75%, 11/01/30	1,750	1,879,360
		22,603,186
Utilities
0.5%
Rahway Valley Sewerage Authority, RB, CAB, Series A (NPFGC), 4.42%, 9/01/33 (f)	2,000	514,820
Total
Municipal Bonds in New Jersey		133,080,465
Puerto Rico 22.7%
County/City/Special
District/School District 3.9%
Puerto Rico Sales Tax Financing Corp., RB, First Sub-Series A, 6.00%, 8/01/42	2,250	2,351,655
Puerto Rico Sales Tax Financing Corp., Refunding RB, First Sub, Series C, 6.00%, 8/01/39	1,740	1,826,321
		4,177,976
Housing
4.2%
Puerto Rico Housing Finance Authority, RB, Mortgage-Backed Securities, Series B, AMT (Ginnie Mae), 5.30%, 12/01/28	2,260	2,260,429
Puerto Rico Housing Finance Authority, Refunding RB, Mortgage-Backed Securities, Series A (Ginnie Mae), 5.20%, 12/01/33	2,260	2,260,814
		4,521,243
State
10.4%
Puerto Rico Commonwealth Infrastructure Financing Authority, RB, CAB, Series A (AMBAC), 4.37%, 7/01/37 (f)	6,000	943,320
Puerto Rico Highway & Transportation Authority, Refunding RB, Series CC (AGM), 5.50%, 7/01/30	1,680	1,799,028
Puerto Rico Public Buildings Authority, RB, CAB, Series D (AMBAC) (b):
5.45%,
7/01/12	1,335	1,150,036
5.45%,
7/01/17	3,665	4,080,611
Puerto Rico Sales Tax Financing Corp., RB, First Sub-Series A, 5.75%, 8/01/37	3,075	3,152,213
		11,125,208
Transportation
2.3%
Puerto Rico Highway & Transportation Authority, Refunding RB:
Series
AA-1 (AGM), 4.95%, 7/01/26	500	505,735
Series
CC (AGC), 5.50%, 7/01/31	935	991,063
Series
M, 5.00%, 7/01/32	1,000	957,430
		2,454,228
Utilities
1.9%
Puerto Rico Electric Power Authority, RB, Series WW, 5.50%, 7/01/38	2,000	2,004,460
Total
Municipal Bonds in Puerto Rico		24,283,115
Total
Municipal Bonds 146.8%		157,363,580

| See Notes to Financial
Statements. — 30 | ANNUAL REPORT | JULY 31, 2011 |
| --- | --- | --- |

Schedule of Investments (concluded) BlackRock New Jersey Municipal Income Trust (BNJ) (Percentages shown are based on Net Assets)

Municipal Bonds Transferred to Tender Option Bond Trusts (g)	Par (000)	Value
New Jersey 6.8%
State 3.0%
New Jersey EDA, RB, School Facilities Construction, Series Z (AGC), 6.00%, 12/15/34	$ 3,000	$ 3,230,910
Transportation 3.8%
New Jersey Transportation Trust Fund Authority, RB, Transportation System, Series A (AGM), 5.00%, 12/15/32	2,000	2,037,040
Port Authority of New York & New Jersey, Refunding RB, Consolidated, 152nd Series, AMT, 5.25%, 11/01/35	2,039	2,082,136
		4,119,176
Total
Municipal Bonds Transferred to Tender Option Bond Trusts 6.8%		7,350,086
Total
Long-Term Investments (Cost $165,839,721) 153.6%		164,713,666
Short-Term Securities	Shares
BIF New Jersey Municipal
Money Fund, 0.00% (h)(i)	5,114,806	5,114,806
Total
Short-Term Securities (Cost
$5,114,806) 4.8%		5,114,806
Total
Investments (Cost $170,954,527*) 158.4%		169,828,472
Other
Assets Less Liabilities 0.3%		358,773
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable (3.6)%		(3,860,674	)
AMPS, at
Redemption Value (55.1)%		(59,100,593	)
Net Assets
Applicable to Common Shares 100.0%		$ 107,225,978

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

Aggregate cost	$
Gross unrealized
appreciation	$ 5,250,111
Gross unrealized
depreciation	(6,232,637	)
Net unrealized depreciation	$ (982,526	)

| (a) | Variable rate security.
Rate shown is as of report date. |
| --- | --- |
| (b) | 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. |
| (c) | Issuer filed for bankruptcy
and/or is in default of interest payments. |
| (d) | Non-income producing
security. |
| (e) | 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. |
| (f) | Represents a zero-coupon
bond. Rate shown reflects the current yield as of report date. |
| (g) | Securities represent bonds
transferred to a TOB 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 TOBs. |
| (h) | Investments in companies
considered to be an affiliate of the Trust during the year, for purposes of
Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as
follows: |

Affiliate — BIF New Jersey Municipal Money Fund	5,032,609	82,197	5,114,806	Income — $ 1,412

| Contracts — 28 | 10-Year
US Treasury Note | Chicago Board of Trade | September 2011 | Notional Value — $ 3,428,416 | Unrealized Depreciation — $ (90,834 | ) |
| --- | --- | --- | --- | --- | --- | --- |


	Level 1 price quotations
in active markets/exchanges for identical assets and liabilities
	Level 2 other observable
inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are
active, quoted prices for identical or similar assets or liabilities in
markets that are not active, inputs other than quoted prices that are
observable for the assets or liabilities (such as interest rates, yield
curves, volatilities, prepayment speeds, loss severities, credit risks and
default rates) or other market-corroborated inputs)
	Level 3 unobservable
inputs based on the best information available in the circumstances, to the extent observable
inputs are not available (including the Trusts own assumptions used in
determining the fair value of investments and derivative financial
instruments)
The categorization of a
value determined for investments and derivative financial instruments is
based on the pricing transparency of the investment and derivative financial
instrument and does not necessarily correspond to the Trusts perceived risk
of investing in those securities. For information about the Trusts policy
regarding valuation of investments and derivative financial instruments and
other significant accounting policies, please refer to Note 1 of the Notes to
Financial Statements.
The following tables
summarize the inputs used as of July 31, 2011 in determining the fair
valuation of the Trusts investments and derivative financial instruments:

Valuation Inputs	Level 1	Level 2	Total
Assets:
Investments:
Long-Term Investments 1		$ 164,713,666	$ 164,713,666
Short-Term Securities	$ 5,114,806		5,114,806
Total	$ 5,114,806	$ 164,713,666	$ 169,828,472

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

Valuation Inputs	Level 1		Total
Derivative Financial Instruments 2
Liabilities:
Interest rate contracts	$ (90,834	)	$ (90,834	)

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

| See Notes to Financial
Statements. — ANNUAL REPORT | JULY 31, 2011 | 31 |
| --- | --- | --- |

Schedule of Investments July 31, 2011 BlackRock New York Investment Quality Municipal Trust Inc. (RNY) (Percentages shown are based on Net Assets)

Municipal Bonds	Par (000)	Value
New York 89.4%
Corporate 11.0%
Chautauqua County Industrial Development Agency, RB, NRG Dunkirk Power Project, 5.88%, 4/01/42	$ 130	$ 127,738
Essex County Industrial Development Agency New York, RB, International Paper Co., Series A, AMT, 6.63%, 9/01/32	100	104,881
Jefferson County Industrial Development Agency New York, Refunding RB, Solid Waste, Series A, AMT, 5.20%, 12/01/20	150	147,920
New York City Industrial Development Agency, RB, American Airlines Inc., JFK International Airport, AMT (a):
7.63%, 8/01/25	800	823,400
7.75%, 8/01/31	300	309,507
New York Liberty Development Corp., RB, Goldman Sachs Headquarters:
5.25%, 10/01/35	550	548,762
5.50%, 10/01/37	200	205,038
Port Authority of New York & New Jersey, RB, Continental Airlines Inc. and Eastern Air Lines Inc. Project,
LaGuardia, AMT, 9.13%, 12/01/15	790	798,690
		3,065,936
County/City/Special District/School District 24.8%
Amherst Development Corp., RB, University at Buffalo Foundation Faculty-Student Housing Corp., Series A (AGM):
4.38%, 10/01/30	250	240,405
4.63%, 10/01/40	275	250,990
Hudson Yards Infrastructure Corp., RB, Series A:
5.00%, 2/15/47	1,200	1,097,520
(NPFGC), 4.50%, 2/15/47	60	50,651
New York City Industrial Development Agency, RB, PILOT:
CAB, Yankee Stadium (AGC), 5.86%, 3/01/35 (b)	400	101,712
CAB, Yankee Stadium (AGC), 6.20%, 3/01/45 (b)	345	45,250
Queens Baseball Stadium (AGC), 6.38%, 1/01/39	100	105,830
Queens Baseball Stadium (AMBAC), 5.00%, 1/01/39	650	549,997
Yankee Stadium (FGIC), 5.00%, 3/01/46	100	89,748
New York City Transitional Finance Authority, RB, Fiscal 2009, Series S-3, 5.25%, 1/15/39	150	155,808
New York Convention Center Development Corp., RB, Hotel Unit Fee Secured (AMBAC), 5.00%, 11/15/44	685	674,026
New York Liberty Development Corp., Refunding RB, Second Priority, Bank of America Tower at One Bryant Park Project:
5.63%, 7/15/47	1,100	1,112,881
6.38%, 7/15/49	100	102,857
New York State Dormitory Authority, RB, State University Dormitory Facilities, Series A, 5.00%, 7/01/39	100	101,763
Saint Lawrence County Industrial Development Agency, RB, Clarkson University Project, 6.00%, 9/01/34	150	159,563
Sales Tax Asset Receivable Corp., RB, Series A (AMBAC), 5.00%, 10/15/32	2,000	2,052,920
		6,891,921
Education 12.9%
Albany Industrial Development Agency, RB, New Covenant Charter School Project, Series A (c)(d):
7.00%, 5/01/25	95	23,760
7.00%, 5/01/35	60	15,007
City of Troy New York, Refunding RB, Rensselaer Polytechnic, Series A, 5.13%, 9/01/40	100	97,995

| Municipal
Bonds | Par (000) | Value |
| --- | --- | --- |
| New York (continued) | | |
| Education (concluded) | | |
| Nassau County Industrial Development Agency, Refunding RB, New York Institute of Technology Project, Series A, 4.75%, 3/01/26 | $ 100 | $ 98,753 |
| New York State Dormitory Authority, RB: | | |
| Convent of the Sacred Heart (AGM), 5.75%, 11/01/40 | 150 | 157,761 |
| Cornell University, Series A, 5.00%, 7/01/40 | 100 | 103,340 |
| Fordham University, Series A, 5.50%, 7/01/36 | 50 | 52,174 |
| New School University (AGM), 5.50%, 7/01/43 | 200 | 207,264 |
| New York University, Series 1 (AMBAC), 5.50%, 7/01/40 | 250 | 278,195 |
| Rochester Institute of Technology, Series A, 6.00%, 7/01/33 | 175 | 189,700 |
| University of Rochester, Series A, 5.13%, 7/01/39 | 200 | 203,970 |
| University of Rochester, Series A, 5.75%, 7/01/39 (e) | 175 | 154,007 |
| New York State Dormitory Authority, Refunding RB: | | |
| Brooklyn Law School, 5.75%, 7/01/33 | 75 | 78,940 |
| Skidmore College, Series A, 5.25%, 7/01/30 | 250 | 265,275 |
| Teachers College, 5.50%, 3/01/39 | 200 | 207,392 |
| Schenectady County Industrial Development Agency, Refunding RB, Union College Project, 5.00%, 7/01/31 | 400 | 401,020 |
| Suffolk County Industrial Development Agency, Refunding RB, New York Institute of Technology Project, 5.00%, 3/01/26 | 100 | 100,910 |
| Tompkins County Development Corp., RB, Ithaca College Project (AGM), 5.50%, 7/01/33 | 50 | 52,859 |
| Trust for Cultural Resources, RB, Series A: | | |
| Carnegie Hall, 4.75%, 12/01/39 | 375 | 365,287 |
| Carnegie Hall, 5.00%, 12/01/39 | 150 | 150,802 |
| Juilliard School, 5.00%, 1/01/39 | 250 | 256,852 |
| Yonkers Industrial Development Agency New York, RB, Sarah Lawrence College Project, Series A, 6.00%, 6/01/41 | 125 | 129,893 |
| | | 3,591,156 |
| Health 13.8% | | |
| Dutchess County Local Development Corp., Refunding RB, Health Quest System Inc., Series A, 5.75%, 7/01/30 | 150 | 155,715 |
| Genesee County Industrial Development Agency New York, Refunding RB, United Memorial Medical Center Project, 5.00%, 12/01/27 | 100 | 81,459 |
| Monroe County Industrial Development Corp., RB, Unity Hospital of Rochester Project (FHA), 5.50%, 8/15/40 | 100 | 105,140 |
| New York State Dormitory Authority, MRB, Hospital, Lutheran Medical (NPFGC), 5.00%, 8/01/31 | 250 | 251,005 |
| New York State Dormitory Authority, RB: | | |
| New York State Association for Retarded Children, Inc., Series A, 6.00%, 7/01/32 | 75 | 79,853 |
| New York University Hospital Center, Series A, 5.75%, 7/01/31 | 100 | 103,233 |
| New York University Hospital Center, Series A, 5.00%, 7/01/36 | 500 | 482,715 |
| New York University Hospital Center, Series B, 5.63%, 7/01/37 | 150 | 152,595 |
| North Shore-Long Island Jewish Health System, Series A, 5.50%, 5/01/37 | 175 | 176,412 |
| North Shore-Long Island Jewish Health System, Series A, 5.75%, 5/01/37 | 250 | 255,938 |

| See Notes to Financial
Statements. — 32 | ANNUAL REPORT | JULY 31, 2011 |
| --- | --- | --- |

Schedule of Investments (continued) BlackRock New York Investment Quality Municipal Trust Inc. (RNY) (Percentages shown are based on Net Assets)

Municipal Bonds	Par (000)	Value
New York (concluded)
Health (concluded)
New York State Dormitory Authority, Refunding RB:
Kateri Residence, 5.00%, 7/01/22	$ 1,000	$ 1,028,750
Mount Sinai Hospital, Series A, 5.00%, 7/01/26	140	143,437
North Shore-Long Island Jewish Health System, Series E, 5.50%, 5/01/33	150	152,064
St. Lukes Roosevelt Hospital (FHA), 4.90%, 8/15/31	100	99,492
Saratoga County Industrial Development Agency New York, RB, Saratoga Hospital Project, Series B, 5.25%, 12/01/32	100	97,734
Suffolk County Industrial Development Agency New York, Refunding RB, Jeffersons Ferry Project, 5.00%, 11/01/28	115	105,277
Westchester County Healthcare Corp. New York, Refunding RB, Senior Lien, Series B, 6.00%, 11/01/30	100	103,067
Westchester County Industrial Development Agency New York, MRB, Kendal on Hudson Project, Series A, 6.38%, 1/01/24	250	248,145
		3,822,031
Housing 6.7%
New York City Housing Development Corp., RB:
Series A (Ginnie Mae), 5.25%, 5/01/30	1,000	1,012,700
Series B1, AMT, 5.15%, 11/01/37	250	248,200
Series J-2-A, AMT, 4.75%, 11/01/27	500	487,960
New York Mortgage Agency, Refunding RB, Series 143, AMT, 4.90%, 10/01/37	100	95,180
		1,844,040
State 5.9%
New York State Dormitory Authority, ERB:
Series B, 5.75%, 3/15/36	150	165,135
Series C, 5.00%, 12/15/31	150	156,377
New York State Dormitory Authority, LRB, Municipal Health Facilities, Sub-Series 2-4, 4.75%, 1/15/30	200	201,434
New York State Dormitory Authority, Refunding RB, State University Educational Facilities, Series A (AMBAC), 5.25%, 5/15/15	1,005	1,123,479
		1,646,425
Transportation 3.1%
Hudson Yards Infrastructure Corp., RB, Series A (AGM), 5.00%, 2/15/47	160	153,014
Metropolitan Transportation Authority, RB, Series 2008C, 6.50%, 11/15/28	250	289,185
Port Authority of New York & New Jersey, RB:
Consolidated, 116th Series, 4.13%, 9/15/32	125	120,631
JFK International Air Terminal, 6.00%, 12/01/42	150	151,749
Triborough Bridge & Tunnel Authority, RB, General Purpose, Series A (NPFGC), 5.00%, 1/01/32	155	155,504
		870,083
Utilities 11.2%
Albany Municipal Water Finance Authority, RB, Series B (NPFGC), 5.00%, 12/01/33	1,000	1,000,650
New York City Municipal Water Finance Authority, RB:
Second General Resolution, Series HH, 5.00%, 6/15/32	900	948,744
Series B, 5.00%, 6/15/36	150	152,981
Series C, 5.13%, 6/15/33	1,000	1,008,270
		3,110,645
Total Municipal Bonds in New York		24,842,237

| Municipal
Bonds | Par (000) | Value |
| --- | --- | --- |
| Guam 1.2% | | |
| State 0.4% | | |
| Territory of Guam, GO, Series A, 7.00%, 11/15/39 | $ 100 | $ 103,167 |
| Tobacco 0.3% | | |
| Guam Economic Development & Commerce Authority, Refunding RB, Tobacco Settlement Asset Backed, 5.63%, 6/01/47 | 100 | 84,867 |
| Utilities 0.5% | | |
| Guam Government Waterworks Authority, Refunding RB, Water, 5.88%, 7/01/35 | 150 | 145,956 |
| Total Municipal Bonds in Guam | | 333,990 |
| Puerto Rico 6.4% | | |
| County/City/Special District/School District 3.2% | | |
| Puerto Rico Sales Tax Financing Corp., RB, CAB, Series A, 4.99%, 8/01/32 (b) | 750 | 195,667 |
| Puerto Rico Sales Tax Financing Corp., Refunding RB, CAB, Series A (NPFGC), 5.76%, 8/01/41 (b) | 550 | 78,491 |
| | | 274,158 |
| Housing 0.2% | | |
| Puerto Rico Housing Finance Authority, Refunding RB, Subordinate, Capital Fund Modernization, 5.13%, 12/01/27 | 50 | 50,930 |
| State 3.3% | | |
| Commonwealth of Puerto Rico, GO, Refunding, Sub-Series C-7 (NPFGC), 6.00%, 7/01/28 | 250 | 262,825 |
| Puerto Rico Commonwealth Infrastructure Financing Authority, RB, CAB, Series A (AMBAC), 6.40%, 7/01/44 (b) | 395 | 37,217 |
| Puerto Rico Sales Tax Financing Corp., RB, First Sub-Series A, 5.75%, 8/01/37 | 600 | 615,066 |
| | | 915,108 |
| Tobacco 1.5% | | |
| Childrens Trust Fund, Refunding RB, Asset-Backed, 5.63%, 5/15/43 | 500 | 427,855 |
| Transportation 0.4% | | |
| Puerto Rico Highway & Transportation Authority, Refunding RB, Series AA-1 (AGM), 4.95%, 7/01/26 | 100 | 101,147 |
| Total Municipal Bonds in Puerto Rico | | 1,769,198 |
| Total Municipal Bonds 97.0% | | 26,945,425 |
| Municipal Bonds Transferred to Tender Option Bond Trusts (f) | | |
| New York 4.1% | | |
| Utilities 4.1% | | |
| New York City Municipal Water Finance Authority, RB, Fiscal 2009, Series A, 5.75%, 6/15/40 | 105 | 115,392 |
| New York City Municipal Water Finance Authority, Refunding RB, Series A, 4.75%, 6/15/30 | 1,000 | 1,028,340 |
| Total
Municipal Bonds Transferred to Tender Option Bond Trusts 4.1% | | 1,143,732 |
| Total
Long-Term Investments (Cost $27,849,059) 101.1% | | 28,089,157 |

| See Notes to Financial
Statements. — ANNUAL REPORT | JULY 31, 2011 | 33 |
| --- | --- | --- |

Schedule of Investments (concluded) BlackRock New York Investment Quality Municipal Trust Inc. (RNY) (Percentages shown are based on Net Assets)

| Short-Term Securities — BIF New York Municipal
Money Fund, 0.00% (g)(h) | Value — $ 88,605 | |
| --- | --- | --- |
| Total
Short-Term Securities (Cost $88,605) 0.3% | 88,605 | |
| Total
Investments (Cost $27,937,664*) 101.4% | 28,177,762 | |
| Other
Assets Less Liabilities 35.7% | 194,678 | |
| Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable (2.1)% | (570,180 | ) |
| AMPS, at
Redemption Value (35.0)% | (9,725,205 | ) |
| Net Assets
Applicable to Common Shares 100.0% | $ 18,077,055 | |

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

Aggregate cost	$
Gross unrealized
appreciation	$ 242,461
Gross unrealized
depreciation	(840	)
Net unrealized appreciation	$ 241,621

| (a) | Variable rate security.
Rate shown is as of report date. |
| --- | --- |
| (b) | Represents a zero-coupon
bond. Rate shown reflects the current yield as of report date. |
| (c) | Issuer filed for bankruptcy
and/or is in default of interest payments. |
| (d) | Non-income producing
security. |
| (e) | 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. |
| (f) | Securities represent bonds
transferred to a TOB 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 TOBs. |
| (g) | Investments in companies
considered to be an affiliate of the Trust during the year, for purposes of
Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as
follows: |

Affiliate — BIF New York Municipal Money Fund	177,010	(88,405	)	88,605

| (h) | Represents the current
yield as of report date. |
| --- | --- |
| | For Trust compliance
purposes, the Trusts sector classifications refer to any one or more of the sector sub-classifications used by one
or more widely recognized market indexes or ratings group indexes, and/or as
defined by Trust management. These definitions may not apply for purposes of
this report, which may combine such sector sub-classifications for reporting
ease. |
| | Financial futures
contracts sold as of July 31,2011 were as follows: |

| Contracts — 5 | 30-Year
US Treasury Bond | Chicago Board of Trade | September 2011 | Notional Value — $ 622,842 | Unrealized Depreciation — $ (17,783 | ) |
| --- | --- | --- | --- | --- | --- | --- |


	Level 1 price quotations
in active markets/exchanges for identical assets and liabilities
	Level 2 other observable
inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are
active, quoted prices for identical or similar assets or liabilities in
markets that are not active, inputs other than quoted prices that are
observable for the assets or liabilities (such as interest rates, yield
curves, volatilities, prepayment speeds, loss severities, credit risks and
default rates) or other market-corroborated inputs)
	Level 3 unobservable
inputs based on the best information available in the circumstances, to the extent observable
inputs are not available (including the Trusts own assumptions used in
determining the fair value of investments and derivative financial
instruments)
The categorization of a
value determined for investments and derivative financial instruments is
based on the pricing transparency of the investment and derivative financial
instrument and does not necessarily correspond to the Trusts perceived risk
of investing in those securities. For information about the Trusts policy
regarding valuation of investments and derivative financial instruments and
other significant accounting policies, please refer to Note 1 of the Notes to
Financial Statements.
The following tables
summarize the inputs used as of July 31, 2011 in determining the fair
valuation of the Trusts investments and derivative financial instruments:

Valuation Inputs	Level 1	Level 2	Total
Assets:
Investments:
Long-Term Investments 1		$ 28,089,157	$ 28,089,157
Short-Term Securities	$ 88,605		88,605
Total	$ 88,605	$ 28,089,157	$ 28,177,762

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

Valuation Inputs	Level 1		Total
Derivative Financial Instruments 2
Liabilities:
Interest rate contracts	$ (17,783	)	$ (17,783	)

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

| See Notes to Financial
Statements. — 34 | ANNUAL REPORT | JULY 31, 2011 |
| --- | --- | --- |

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

Municipal Bonds	Par (000)	Value
New York 130.9%
Corporate 16.9%
Chautauqua County Industrial Development Agency, RB, NRG Dunkirk Power Project, 5.88%, 4/01/42	$ 1,000	$ 982,600
Essex County Industrial Development Agency New York, RB, International Paper Co. Project, Series A, AMT, 6.63%, 9/01/32	550	576,846
New York City Industrial Development Agency, RB, American Airlines Inc., JFK International Airport, AMT (a):
7.63%, 8/01/25	3,200	3,293,600
7.75%, 8/01/31	4,000	4,126,760
New York Liberty Development Corp., RB, Goldman Sachs Headquarters, 5.25%, 10/01/35	6,850	6,834,587
Port Authority of New York & New Jersey, RB, Continental Airlines Inc. and Eastern Air Lines Inc. Project, LaGuardia, AMT, 9.13%, 12/01/15	7,250	7,329,750
Suffolk County Industrial Development Agency New York, RB, KeySpan, Port Jefferson, AMT, 5.25%, 6/01/27	7,000	6,984,600
		30,128,743
County/City/Special District/School District 26.9%
Amherst Development Corp., RB, University at Buffalo Foundation Faculty-Student Housing Corp., Series A (AGM), 4.63%, 10/01/40	1,100	1,003,959
Buffalo & Erie County Industrial Land Development Corp., RB, Buffalo State College Foundation Housing Corp., 5.38%, 10/01/41	140	140,146
City of New York, GO, Series A-1, 5.00%, 8/01/35 (b)	1,000	1,035,030
City of New York New York, GO:
Series A-1, 4.75%, 8/15/25	750	792,945
Series C, 5.38%, 3/15/12 (c)	5,000	5,163,550
Series D, 5.38%, 6/01/12 (c)	15	15,651
Series D, 5.38%, 6/01/32	3,985	4,090,563
Sub-Series G-1, 6.25%, 12/15/31	500	569,865
Sub-Series I-1, 5.38%, 4/01/36	1,750	1,839,040
Hudson Yards Infrastructure Corp., RB, Series A:
5.00%, 2/15/47	7,425	6,790,905
(NPFGC), 4.50%, 2/15/47	970	818,855
Metropolitan Transportation Authority, RB, Transportation, Series D, 5.00%, 11/15/34	800	799,944
New York City Industrial Development Agency, RB:
CAB, Yankee Stadium, PILOT, 6.20%, 3/01/45 (d)	1,500	196,740
CAB, Yankee Stadium, PILOT (AGC), 6.07%, 3/01/42 (d)	1,960	314,678
Marymount School of New York Project (ACA), 5.13%, 9/01/21	750	765,757
Marymount School of New York Project (ACA), 5.25%, 9/01/31	500	501,445
Queens Baseball Stadium, PILOT (AGC), 6.38%, 1/01/39	150	158,745
Queens Baseball Stadium, PILOT (AMBAC), 5.00%, 1/01/36	4,900	4,203,220
Queens Baseball Stadium, PILOT (AMBAC), 5.00%, 1/01/39	500	423,075
Royal Charter, New York Presbyterian (AGM), 5.25%, 12/15/32	1,550	1,570,057
New York City Transitional Finance Authority, RB:
Fiscal 2009, Series S-3, 5.25%, 1/15/39	650	675,168
Series S-2 (NPFGC), 4.25%, 1/15/34	1,700	1,582,037
New York Convention Center Development Corp., RB, Hotel Unit Fee Secured (AMBAC):
5.00%, 11/15/35	250	249,632
5.00%, 11/15/44	9,660	9,505,247

| Municipal
Bonds | Par (000) | Value |
| --- | --- | --- |
| New York (continued) | | |
| County/City/Special
District/School District (concluded) | | |
| New York Liberty Development Corp., Refunding RB, Second Priority, Bank of America Tower at One Bryant Park Project: | | |
| 5.63%, 7/15/47 | $ 2,000 | $ 2,023,420 |
| 6.38%, 7/15/49 | 1,200 | 1,234,284 |
| New York State Dormitory Authority, RB, State University Dormitory Facilities, Series A, 5.00%, 7/01/39 | 750 | 763,222 |
| New York State Dormitory Authority, Refunding RB, School Districts Financing Program, Series A (AGM), 5.00%, 10/01/35 | 395 | 401,158 |
| Saint Lawrence County Industrial Development Agency, RB, Clarkson University Project, 5.38%, 9/01/41 | 275 | 274,090 |
| | | 47,902,428 |
| Education 26.2% | | |
| Albany Industrial Development Agency, RB, New Covenant Charter School Project, Series A (e)(f): | | |
| 7.00%, 5/01/25 | 910 | 227,600 |
| 7.00%, 5/01/35 | 590 | 147,565 |
| City of Troy New York, Refunding RB, Rensselaer Polytechnic, Series A, 5.13%, 9/01/40 | 875 | 857,456 |
| Dutchess County Industrial Development Agency New York, Refunding RB, Bard College Civic Facility, Series A-2, 4.50%, 8/01/36 | 7,000 | 6,080,620 |
| Madison County Industrial Development Agency New York, RB: | | |
| Colgate University Project, Series B, 5.00%, 7/01/33 | 2,000 | 2,019,240 |
| Commons II LLC, Student Housing, Series A (CIFG), 5.00%, 6/01/33 | 275 | 250,465 |
| Nassau County Industrial Development Agency, Refunding RB, New York Institute of Technology Project, Series A, 4.75%, 3/01/26 | 1,165 | 1,150,472 |
| New York City Trust for Cultural Resources, Refunding RB, Museum of Modern Art, Series 1A, 5.00%, 4/01/31 | 1,000 | 1,052,840 |
| New York State Dormitory Authority, RB: | | |
| Convent of the Sacred Heart (AGM), 5.25%, 11/01/24 | 155 | 164,212 |
| Convent of the Sacred Heart (AGM), 5.63%, 11/01/32 | 750 | 800,700 |
| Convent of the Sacred Heart (AGM), 5.75%, 11/01/40 | 210 | 220,865 |
| Cornell University, Series A, 5.00%, 7/01/40 | 1,000 | 1,033,400 |
| Mount Sinai School of Medicine, 5.13%, 7/01/39 | 2,000 | 2,001,840 |
| New School University: | | |
| (AGM), 5.50%, 7/01/43 | 1,950 | 2,020,824 |
| (NPFGC), 5.00%, 7/01/41 | 7,500 | 7,396,575 |
| New York University (AMBAC): | | |
| Series 1, 5.50%, 7/01/40 | 2,190 | 2,436,988 |
| Series 2, 5.00%, 7/01/41 | 4,000 | 3,981,360 |
| Series A, 5.00%, 7/01/37 | 1,000 | 1,015,310 |
| Rochester Institute of Technology, Series A, 6.00%, 7/01/33 | 1,000 | 1,084,000 |
| University of Rochester: | | |
| Series A, 5.13%, 7/01/39 | 850 | 866,872 |
| Series A, 5.75%, 7/01/39 (g) | 650 | 572,026 |
| Series B, 5.00%, 7/01/39 | 500 | 501,155 |

| See Notes to Financial
Statements. — ANNUAL REPORT | JULY 31, 2011 | 35 |
| --- | --- | --- |

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

Municipal Bonds	Par (000)	Value
New York (continued)
Education (concluded)
New York State Dormitory Authority, Refunding RB:
Brooklyn Law School, 5.75%, 7/01/33	$ 475	$ 499,952
Skidmore College, Series A, 5.00%, 7/01/27	190	202,065
Skidmore College, Series A, 5.00%, 7/01/28	75	79,264
Skidmore College, Series A, 5.25%, 7/01/29	85	90,896
Teachers College, 5.50%, 3/01/39	450	466,632
Yeshiva University, 5.00%, 9/01/34	275	280,115
Suffolk County Industrial Development Agency, Refunding RB, New York Institute of Technology Project, 5.00%, 3/01/26	1,000	1,009,100
Tompkins County Development Corp., RB, Ithaca College Project (AGM), 5.50%, 7/01/33	700	740,026
Trust for Cultural Resources, RB, Series A:
Carnegie Hall, 4.75%, 12/01/39	2,250	2,191,725
Juilliard School, 5.00%, 1/01/39	2,100	2,157,561
Westchester County Industrial Development Agency New York, RB, Windward School Civic Facility (Radian), 5.25%, 10/01/31	2,500	2,391,925
Yonkers Industrial Development Agency New York, RB, Sarah Lawrence College Project, Series A, 6.00%, 6/01/41	625	649,463
		46,641,109
Health 9.1%
Dutchess County Local Development Corp., Refunding RB, Health Quest System Inc., Series A, 5.75%, 7/01/40	300	302,901
Genesee County Industrial Development Agency New York, Refunding RB, United Memorial Medical Center Project, 5.00%, 12/01/27	500	407,295
Monroe County Industrial Development Corp., RB, Unity Hospital of Rochester Project (FHA), 5.50%, 8/15/40	1,050	1,103,970
New York State Dormitory Authority, RB:
Hudson Valley Hospital (BHAC), 5.00%, 8/15/36	750	760,522
New York State Association for Retarded Children, Inc., Series B (AMBAC), 6.00%, 7/01/32	200	213,210
New York University Hospital Center, Series A, 5.00%, 7/01/36	2,890	2,790,093
New York University Hospital Center, Series A, 6.00%, 7/01/40	500	514,575
New York University Hospital Center, Series B, 5.63%, 7/01/37	530	539,169
North Shore-Long Island Jewish Health System, 5.50%, 5/01/13 (c)	2,000	2,180,580
North Shore-Long Island Jewish Health System, Series A, 5.50%, 5/01/37	1,775	1,789,324
Nysarc Inc., Series A, 6.00%, 7/01/32	575	612,208
New York State Dormitory Authority, Refunding RB:
Mount Sinai Hospital, Series A, 5.00%, 7/01/26	1,385	1,419,002
North Shore-Long Island Jewish Health System, Series E, 5.50%, 5/01/33	1,100	1,115,136
Suffolk County Industrial Development Agency New York, Refunding RB, Jeffersons Ferry Project, 5.00%, 11/01/28	1,175	1,075,654
Westchester County Healthcare Corp. New York, Refunding RB, Senior Lien, Series B, 6.00%, 11/01/30	375	386,501
Westchester County Industrial Development Agency New York, MRB, Kendal on Hudson Project, Series A, 6.38%, 1/01/24	1,000	992,580
		16,202,720

| Municipal
Bonds | Par (000) | Value |
| --- | --- | --- |
| New York (continued) | | |
| Housing 4.9% | | |
| New York Mortgage Agency, Refunding RB, AMT: | | |
| Homeowner Mortgage, Series 97, 5.50%, 4/01/31 | $ 1,905 | $ 1,905,248 |
| Series 101, 5.40%, 4/01/32 | 4,465 | 4,465,714 |
| New York State HFA, RB, Highland Avenue Senior Apartments, Series A AMT (SONYMA), 5.00%, 2/15/39 | 1,500 | 1,354,920 |
| Yonkers EDC, Refunding RB, Riverview II (Freddie Mac), 4.50%, 5/01/25 | 1,000 | 999,940 |
| | | 8,725,822 |
| State 4.2% | | |
| New York State Dormitory Authority, ERB, Series B, 5.75%, 3/15/36 | 600 | 660,540 |
| New York State Dormitory Authority, LRB, Municipal Health Facilities, Sub-Series 2-4, 4.75%, 1/15/30 | 1,850 | 1,863,265 |
| New York State Dormitory Authority, RB, Mental Health Services Facilities Improvement, Series B (AMBAC), 5.00%, 2/15/35 | 4,855 | 4,887,771 |
| | | 7,411,576 |
| Tobacco 6.8% | | |
| New York Counties Tobacco Trust III, RB, Tobacco Settlement Pass-Thru, Turbo, 6.00%, 6/01/43 | 6,700 | 5,784,981 |
| Rensselaer Tobacco Asset Securitization Corp., RB, Asset-Backed, Series A, 5.75%, 6/01/43 | 2,500 | 2,080,000 |
| Rockland Tobacco Asset Securitization Corp., RB, Asset-Backed, 5.75%, 8/15/43 | 5,000 | 4,158,850 |
| | | 12,023,831 |
| Transportation 25.6% | | |
| Hudson Yards Infrastructure Corp., RB: | | |
| (AGC), 5.00%, 2/15/47 | 1,000 | 956,340 |
| Series A (AGM), 5.00%, 2/15/47 | 1,000 | 956,340 |
| Metropolitan Transportation Authority, RB, Series 2008C, 6.50%, 11/15/28 | 1,000 | 1,156,740 |
| Metropolitan Transportation Authority, Refunding RB: | | |
| Series A, 5.13%, 1/01/29 | 2,000 | 2,011,100 |
| Series A, 5.00%, 11/15/30 | 12,000 | 12,162,840 |
| Series A, 5.13%, 11/15/31 | 8,000 | 8,040,640 |
| Transportation, Series F (NPFGC), 5.00%, 11/15/31 | 1,000 | 1,003,530 |
| New York City Industrial Development Agency, RB, Airis JFK I LLC Project, Series A, AMT, 5.50%, 7/01/28 | 9,000 | 7,878,870 |
| Port Authority of New York & New Jersey, RB: | | |
| Consolidated, 116th Series, 4.13%, 9/15/32 | 500 | 482,525 |
| Consolidated, 124th Series, AMT, 5.00%, 8/01/36 | 2,000 | 2,000,000 |
| JFK International Air Terminal, 6.00%, 12/01/42 | 1,000 | 1,011,660 |
| Special Project, JFK International Air Terminal, Series 6, AMT (NPFGC), 6.25%, 12/01/13 | 1,000 | 1,049,880 |
| Special Project, JFK International Air Terminal, Series 6, AMT (NPFGC), 5.75%, 12/01/22 | 7,000 | 6,961,430 |
| | | 45,671,895 |

See Notes to Financial Statements. — 36	ANNUAL REPORT	JULY 31, 2011

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

Municipal Bonds	Par (000)	Value
New York (concluded)
Utilities 10.3%
Long Island Power Authority, RB, General, Series C (CIFG), 5.25%, 9/01/29	$ 2,000	$ 2,184,220
Long Island Power Authority, Refunding RB, Series A, 5.75%, 4/01/39	4,000	4,294,240
New York City Municipal Water Finance Authority, RB:
Second General Resolution, Fiscal 2011, Series HH, 5.00%, 6/15/32	4,300	4,532,888
Series B, 5.00%, 6/15/36	750	764,902
New York City Municipal Water Finance Authority, Refunding RB:
Second General Resolution, Fiscal 2011, Series BB, 5.00%, 6/15/31	1,000	1,056,450
Series D, 5.00%, 6/15/39	5,000	5,103,850
New York State Environmental Facilities Corp., RB, Revolving Funds, New York City Municipal Water, 5.00%, 6/15/36	350	363,248
		18,299,798
Total Municipal Bonds in New York		226,046,492
Guam 0.9%
State 0.6%
Territory of Guam, GO, Series A, 7.00%, 11/15/39	970	1,000,720
Utilities 0.3%
Guam Government Waterworks Authority, Refunding RB, Water, 5.88%, 7/01/35	600	583,824
Total Municipal Bonds in Guam		1,584,544
Puerto Rico 10.3%
County/City/Special District/School District 1.1%
Puerto Rico Sales Tax Financing Corp., RB:
CAB, Series A, 6.40%, 8/01/32 (d)	1,685	439,600
First Sub-Series A (AGM), 5.00%, 8/01/40	1,000	987,920
Puerto Rico Sales Tax Financing Corp., Refunding RB, CAB, Series A (NPFGC), 5.77%, 8/01/41 (d)	3,500	499,485
		1,927,005
Housing 1.7%
Puerto Rico Housing Finance Authority, Refunding RB, Subordinate, Capital Fund Modernization, 5.13%, 12/01/27	3,000	3,055,800

| Municipal
Bonds | Par (000) | Value |
| --- | --- | --- |
| Puerto Rico (concluded) | | |
| State 6.4% | | |
| Puerto Rico Highway & Transportation Authority, Refunding RB, Series CC (AGM), 5.50%, 7/01/30 | $ 2,750 | $ 2,944,837 |
| Puerto Rico Public Buildings Authority, Refunding RB, Government Facilities, Series D: | | |
| 5.25%, 7/01/12 (c) | 3,400 | 3,554,870 |
| 5.25%, 7/01/36 | 1,600 | 1,518,992 |
| Puerto Rico Public Finance Corp., RB, Commonwealth Appropriation, Series E, 5.50%, 2/01/12 (c) | 1,000 | 1,026,680 |
| Puerto Rico Sales Tax Financing Corp., RB, First Sub-Series A, 5.75%, 8/01/37 | 2,000 | 2,050,220 |
| Puerto Rico Sales Tax Financing Corp., Refunding RB, CAB, Series A (NPFGC), 5.98%, 8/01/43 (d) | 2,500 | 311,225 |
| | | 11,406,824 |
| Transportation 0.2% | | |
| Puerto Rico Highway & Transportation Authority, Refunding RB, Series AA-1 (AGM), 4.95%, 7/01/26 | 250 | 252,868 |
| Utilities 0.9% | | |
| Puerto Rico Aqueduct & Sewer Authority, RB, Senior Lien, Series A, 6.00%, 7/01/38 | 1,100 | 1,106,424 |
| Puerto Rico Electric Power Authority, Refunding RB, Series VV (NPFGC), 5.25%, 7/01/29 | 500 | 504,615 |
| | | 1,611,039 |
| Total Municipal Bonds in Puerto Rico | | 18,253,536 |
| Total Municipal Bonds 142.1% | | 252,846,002 |

Municipal Bonds Transferred to Tender Option Bond Trusts (h)
New York 12.2%
Housing 8.7%
New York Mortgage Agency, RB, 31st Series A, AMT, 5.30%, 10/01/31	15,500	15,500,930
Utilities 3.5%
New York City Municipal Water Finance Authority, RB:
Fiscal 2009, Series A, 5.75%, 6/15/40	1,200	1,318,762
Series FF-2, 5.50%, 6/15/40	810	866,281
New York City Municipal Water Finance Authority, Refunding RB, Series A, 4.75%, 6/15/30	4,000	4,113,360
		6,298,403
Total
Municipal Bonds Transferred to Tender Option Bond Trusts 12.2%		21,799,333
Total
Long-Term Investments (Cost $275,842,427) 154.3%		274,645,335

| See Notes to Financial
Statements. — ANNUAL REPORT | JULY 31, 2011 | 37 |
| --- | --- | --- |

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

| Short-Term Securities — BIF New York Municipal
Money Fund, 0.00% (i)(j) | Value — $ 10,549,049 | |
| --- | --- | --- |
| Total
Short-Term Securities (Cost $10,549,049) 5.9% | 10,549,049 | |
| Total
Investments (Cost $286,391,476*) 160.2% | 285,194,384 | |
| Liabilities
in Excess of Other Assets (1.8)% | (1,603,676 | ) |
| Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable (6.2)% | (11,096,166 | ) |
| AMPS, at
Redemption Value (52.2)% | (94,501,629 | ) |
| Net Assets
Applicable to Common Shares 100.0% | $ 177,992,913 | |

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

Aggregate cost	$
Gross unrealized
appreciation	$ 6,891,543
Gross unrealized
depreciation	(7,372,832	)
Net unrealized depreciation	$ (481,289	)

| (a) | Variable rate security.
Rate shown is as of report date. |
| --- | --- |
| (b) | When-issued security.
Unsettled when-issued transactions were as follows: |

Counterparty	Value	Unrealized Appreciation
Citigroup Global Markets	$ 1,035,030	$ 2,520

| (c) | 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. |
| --- | --- |
| (d) | Represents a zero-coupon
bond. Rate shown reflects the current yield as of report date. |
| (e) | Issuer filed for bankruptcy
and/or is in default of interest payments. |
| (f) | Non-income producing
security. |
| (g) | 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. |
| (h) | Securities represent bonds
transferred to a TOB 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 TOBs. |
| (i) | Investments in companies
considered to be an affiliate of the Trust during the year, for purposes of
Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as
follows: |

Affiliate — BIF New York Municipal Money Fund	414,030	10,135,019	10,549,049

| (j) | Represents the current
yield as of report date. |
| --- | --- |
| | For Trust compliance purposes, the
Trusts sector classifications refer to any one or more of the sector sub-classifications used by one
or more widely recognized market indexes or ratings group indexes, and/or as
defined by Trust management. These definitions may not apply for purposes of
this report, which may combine such sector sub-classifications for reporting
ease. |
| | Financial futures
contracts sold as of July 31,2011 were as follows: |

| Contracts — 49 | 30-Year
US Treasury Bond | Chicago Board of Trade | September 2011 | Notional Value — $ 6,103,852 | Unrealized Depreciation — $ (174,273 | ) |
| --- | --- | --- | --- | --- | --- | --- |


	Level 1 price quotations
in active markets/exchanges for identical assets and liabilities
	Level 2 other observable
inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are
active, quoted prices for identical or similar assets or liabilities in
markets that are not active, inputs other than quoted prices that are
observable for the assets or liabilities (such as interest rates, yield
curves, volatilities, prepayment speeds, loss severities, credit risks and
default rates) or other market-corroborated inputs)
	Level 3 unobservable inputs
based on the best information available in the circumstances, to the extent observable
inputs are not available (including the Trusts own assumptions used in
determining the fair value of investments and derivative financial
instruments)

The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and does not necessarily correspond to the Trusts perceived risk of investing in those securities. For information about the Trusts policy regarding valuation of investments and derivative financial instruments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

See Notes to Financial Statements. — 38	ANNUAL REPORT	JULY 31, 2011

Schedule of Investments (concluded) BlackRock New York Municipal Income Trust (BNY)

The following tables summarize the inputs used as of July 31, 2011 in determining the fair valuation of the Trusts investments and derivative financial instruments:

Valuation Inputs	Level 1	Level 2	Total
Assets:
Investments:
Long-Term Investments 1		$ 274,645,335	$ 274,645,335
Short-Term Securities	$ 10,549,049		10,549,049
Total	$ 10,549,049	$ 274,645,335	$ 285,194,384

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

Valuation Inputs	Level 1		Total
Derivative Financial Instruments 2
Liabilities:
Interest rate contracts	$ (174,273	)	$ (174,273	)

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

| See Notes to Financial
Statements. — ANNUAL REPORT | JULY 31, 2011 | 39 |
| --- | --- | --- |

St atements of Assets and Liabilities

| July
31, 2011 | BlackRock California Municipal Income Trust (BFZ) | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Assets | | | | | | | | |
| Investments at
value unaffiliated 1 | $ 755,582,695 | $ | 126,781,125 | $ | 22,608,139 | $ | 156,018,234 | |
| Investments at
value affiliated 2 | 2,720,243 | | 1,843,816 | | 302,911 | | 2,119,108 | |
| Cash pledged as
collateral for financial futures contracts | | | | | 6,600 | | 57,000 | |
| Interest
receivable | 12,495,619 | | 1,540,391 | | 305,027 | | 2,102,374 | |
| TOB trust
receivable | | | | | | | | |
| Investments sold
receivable | | | 40,742 | | 10,187 | | | |
| Income receivable
affiliated | 205 | | 30 | | 25 | | 62 | |
| Prepaid expenses | 38,797 | | 11,705 | | 1,920 | | 14,916 | |
| Other assets | 52,795 | | 5,128 | | 4,239 | | 11,076 | |
| Total assets | 770,890,354 | | 130,222,937 | | 23,239,048 | | 160,322,770 | |
| Accrued
Liabilities | | | | | | | | |
| Investments
purchased payable | 10,990,112 | | | | 778,062 | | 4,965,645 | |
| Income dividends
payable Common Shares | 2,409,290 | | 311,479 | | 78,973 | | 504,794 | |
| TOB trust payable | | | 3,255,000 | | | | | |
| Investment
advisory fees payable | 352,088 | | 54,873 | | 2,913 | | 78,530 | |
| Margin variation
payable | | | | | 5,938 | | 51,063 | |
| Interest expense
and fees payable | 121,429 | | 874 | | 3,313 | | 21,050 | |
| Officers and
Trustees fees payable | 58,208 | | 7,552 | | 5,747 | | 13,520 | |
| Administration
fees payable | | | | | 5,585 | | | |
| Other accrued
expenses payable | 173,874 | | 80,798 | | 40,975 | | 95,042 | |
| Total accrued
liabilities | 14,105,001 | | 3,710,576 | | 921,506 | | 5,729,644 | |
| Other
Liabilities | | | | | | | | |
| TOB trust
certificates | 143,712,937 | | 500,000 | | 4,458,720 | | 30,617,038 | |
| Total
Liabilities | 157,817,938 | | 4,210,576 | | 5,380,226 | | 36,346,682 | |
| AMPS
at Redemption Value | | | | | | | | |
| $25,000 per share
liquidation preference, plus unpaid dividends 3,4 | 171,327,730 | | 42,900,915 | | 4,575,047 | | 34,250,572 | |
| Net
Assets Applicable to Common Shareholders | $ 441,744,686 | $ | 83,111,446 | $ | 13,283,775 | $ | 89,725,516 | |
| Net
Assets Applicable to Common Shareholders Consist of | | | | | | | | |
| Paid-in capital 5,6,7 | $ 448,594,118 | $ | 78,891,300 | $ | 15,025,325 | $ | 95,030,429 | |
| Undistributed net
investment income | 6,097,121 | | 4,397,433 | | 109,092 | | 1,004,384 | |
| Accumulated net
realized loss | (32,464,799 | ) | (797,857 | ) | (2,692,031 | ) | (10,939,104 | ) |
| Net unrealized
appreciation/depreciation | 19,518,246 | | 620,570 | | 841,389 | | 4,629,807 | |
| Net
Assets Applicable to Common Shareholders | $ 441,744,686 | $ | 83,111,446 | $ | 13,283,775 | $ | 89,725,516 | |
| Net asset value
per Common Share | $ 13.88 | $ | 14.94 | $ | 11.77 | $ | 13.40 | |
| 1 Investments at cost unaffiliated | $ 736,064,449 | $ | 126,160,555 | $ | 21,751,350 | $ | 151,252,212 | |
| 2 Investments at cost affiliated | $ 2,720,243 | $ | 1,843,816 | $ | 302,911 | $ | 2,119,108 | |
| 3 AMPS outstanding, par value $0.001 per
share | 6,853 | | 1,716 | | 183 | | 1,370 | |
| 4 AMPS authorized | unlimited | | unlimited | | 100 million | | unlimited | |
| 5 Par value per Common Share | $ 0.001 | $ | 0.001 | $ | 0.01 | $ | 0.001 | |
| 6 Common Shares outstanding | 31,826,816 | | 5,562,128 | | 1,128,190 | | 6,697,105 | |
| 7 Common Shares authorized | unlimited | | unlimited | | 200 million | | unlimited | |

| See Notes to Financial
Statements. — 40 | ANNUAL REPORT | JULY 31, 2011 |
| --- | --- | --- |

Statements of Assets and Liabilities

| July
31, 2011 | BlackRock New Jersey Investment Quality Municipal Trust Inc. (RNJ) | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Assets | | | | | | | | |
| Investments at
value unaffiliated 1 | $ 19,536,130 | $ | 164,713,666 | $ | 28,089,157 | $ | 274,645,335 | |
| Investments at
value affiliated 2 | 209,983 | | 5,114,806 | | 88,605 | | 10,549,049 | |
| Cash pledged as
collateral for financial futures contracts | 6,600 | | 36,960 | | 12,000 | | 125,000 | |
| Interest
receivable | 224,729 | | 1,806,334 | | 326,580 | | 3,512,147 | |
| TOB trust
receivable | | | 1,500,000 | | | | | |
| Investments sold
receivable | | | 23,420 | | 1,028,272 | | | |
| Income receivable
affiliated | 38 | | 65 | | 15 | | 86 | |
| Prepaid expenses | 1,244 | | 14,319 | | 2,884 | | 21,490 | |
| Other assets | 6,390 | | 13,204 | | 4,084 | | 21,913 | |
| Total assets | 19,985,114 | | 173,222,774 | | 29,551,597 | | 288,875,020 | |
| Accrued
Liabilities | | | | | | | | |
| Investments
purchased payable | 256,636 | | 2,202,799 | | 1,013,761 | | 3,835,017 | |
| Income dividends
payable Common Shares | 66,589 | | 602,674 | | 95,993 | | 1,058,439 | |
| TOB trust payable | | | | | | | | |
| Investment
advisory fees payable | 4,150 | | 84,915 | | 8,404 | | 143,924 | |
| Margin variation
payable | 5,938 | | 33,250 | | 10,313 | | 101,063 | |
| Interest expense
and fees payable | 121 | | 1,378 | | 206 | | 6,692 | |
| Officers and
Trustees fees payable | 8,260 | | 507 | | 5,613 | | 24,231 | |
| Administration fees
payable | 3,253 | | | | 2,404 | | | |
| Other accrued
expenses payable | 55,215 | | 111,384 | | 42,669 | | 121,638 | |
| Total accrued
liabilities | 400,162 | | 3,036,907 | | 1,179,363 | | 5,291,004 | |
| Other
Liabilities | | | | | | | | |
| TOB trust certificates | 159,917 | | 3,859,296 | | 569,974 | | 11,089,474 | |
| Total
Liabilities | 560,079 | | 6,896,203 | | 1,749,337 | | 16,380,478 | |
| AMPS
at Redemption Value | | | | | | | | |
| $25,000 per share
liquidation preference, plus unpaid dividends 3,4 | 6,900,115 | | 59,100,593 | | 9,725,205 | | 94,501,629 | |
| Net
Assets Applicable to Common Shareholders | $ 12,524,920 | $ | 107,225,978 | $ | 18,077,055 | $ | 177,992,913 | |
| Net
Assets Applicable to Common Shareholders Consist of | | | | | | | | |
| Paid-in capital 5,6,7 | $ 13,217,478 | $ | 108,265,648 | $ | 17,777,099 | $ | 182,138,460 | |
| Undistributed net
investment income | 191,756 | | 2,271,967 | | 330,090 | | 3,953,452 | |
| Accumulated net realized
loss | (606,642 | ) | (2,094,748 | ) | (252,449 | ) | (6,727,634 | ) |
| Net unrealized
appreciation/depreciation | (277,672 | ) | (1,216,889 | ) | 222,315 | | (1,371,365 | ) |
| Net
Assets Applicable to Common Shareholders | $ 12,524,920 | $ | 107,225,978 | $ | 18,077,055 | $ | 177,992,913 | |
| Net asset value
per Common Share | $ 12.32 | $ | 14.07 | $ | 13.75 | $ | 13.87 | |
| 1 Investments at cost unaffiliated | $ 19,798,402 | $ | 165,839,721 | $ | 27,849,059 | $ | 275,842,427 | |
| 2 Investments at cost affiliated | $ 209,983 | $ | 5,114,806 | $ | 88,605 | $ | 10,549,049 | |
| 3 AMPS outstanding, par value $0.001 per
share | 276 | | 2,364 | | 389 | | 3,780 | |
| 4 AMPS authorized | 300 | | unlimited | | 392 | | unlimited | |
| 5 Par value per Common Share | $ 0.01 | $ | 0.001 | $ | 0.01 | $ | 0.001 | |
| 6 Common Shares outstanding | 1,016,634 | | 7,619,144 | | 1,314,975 | | 12,829,569 | |
| 7 Common Shares authorized | 200 million | | unlimited | | 200 million | | unlimited | |

| See Notes to Financial
Statements. — ANNUAL REPORT | JULY 31, 2011 | 41 |
| --- | --- | --- |

St atements of Operations

| Year
Ended July 31, 2011 | BlackRock California Municipal Income Trust (BFZ) | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Investment
Income | | | | | | | | |
| Interest | $ 37,150,161 | $ | 6,035,034 | $ | 1,163,466 | $ | 7,907,657 | |
| Income
affiliated | 7,888 | | 362 | | 661 | | 4,345 | |
| Total income | 37,158,049 | | 6,035,396 | | 1,164,127 | | 7,912,002 | |
| Expenses | | | | | | | | |
| Investment
advisory | 4,371,166 | | 640,563 | | 77,645 | | 917,681 | |
| Administration | | | | | 22,184 | | | |
| Commissions for AMPS | 226,992 | | 64,247 | | 6,947 | | 47,013 | |
| Professional | 220,109 | | 61,788 | | 39,812 | | 69,664 | |
| Printing | 86,655 | | 17,278 | | 5,962 | | 18,002 | |
| Accounting
services | 40,688 | | 27,303 | | 9,078 | | 36,091 | |
| Officer and
Trustees | 54,764 | | 11,835 | | 2,143 | | 11,401 | |
| Transfer agent | 38,586 | | 18,424 | | 11,669 | | 11,688 | |
| Custodian | 34,584 | | 9,290 | | 5,953 | | 10,942 | |
| Registration | 11,142 | | 9,372 | | 489 | | 9,397 | |
| Miscellaneous | 86,636 | | 33,819 | | 23,404 | | 44,303 | |
| Total expenses
excluding interest expense and fees | 5,171,322 | | 893,919 | | 205,286 | | 1,176,182 | |
| Interest expense
and fees 1 | 1,163,424 | | 26,876 | | 35,939 | | 240,708 | |
| Total expenses | 6,334,746 | | 920,795 | | 241,225 | | 1,416,890 | |
| Less fees waived
and reimbursed by advisor | (315,713 | ) | (5,160 | ) | (134 | ) | (1,256 | ) |
| Total expenses
after fees waived and reimbursed | 6,019,033 | | 915,635 | | 241,091 | | 1,415,634 | |
| Net investment
income | 31,139,016 | | 5,119,761 | | 923,036 | | 6,496,368 | |
| Realized
and Unrealized Gain (Loss) | | | | | | | | |
| Net realized gain
(loss) from: | | | | | | | | |
| Investments | (6,618,817 | ) | (290,392 | ) | (245,250 | ) | (1,084,925 | ) |
| Financial futures
contracts | (1,738,793 | ) | | | (47,741 | ) | (416,639 | ) |
| | (8,357,610 | ) | (290,392 | ) | (292,991 | ) | (1,501,564 | ) |
| Net change in
unrealized appreciation/depreciation on: | | | | | | | | |
| Investments | (5,999,388 | ) | (751,097 | ) | (228,041 | ) | (2,090,869 | ) |
| Financial futures
contracts | 40,714 | | | | (15,400 | ) | (136,215 | ) |
| | (5,958,674 | ) | (751,097 | ) | (243,441 | ) | (2,227,084 | ) |
| Total realized
and unrealized loss | (14,316,284 | ) | (1,041,489 | ) | (536,432 | ) | (3,728,648 | ) |
| Dividends
to AMPS Shareholders From | | | | | | | | |
| Net investment
income | (627,551 | ) | (157,673 | ) | (16,673 | ) | (125,459 | ) |
| Net
Increase in Net Assets Applicable to Common Shareholders Resulting from Operations | $ 16,195,181 | $ | 3,920,599 | $ | 369,931 | $ | 2,642,261 | |

1 Related to TOBs.

| See Notes to Financial
Statements. — 42 | ANNUAL REPORT | JULY 31, 2011 |
| --- | --- | --- |

Statements of Operations

Year Ended July 31, 2011	BlackRock New Jersey Investment Quality Municipal Trust Inc. (RNJ)
Investment Income
Interest	$ 991,416	$	8,750,655	$	1,478,328	$	15,147,837
Income affiliated	729		2,354		370		1,738
Total income	992,145		8,753,009		1,478,698		15,149,575
Expenses
Investment advisory	67,622		998,493		98,369		1,684,441
Administration	19,321				28,105
Commissions for AMPS	8,809		71,386		15,050		130,142
Professional	34,765		75,022		41,488		127,495
Printing	4,628		22,817		5,493		36,027
Accounting services	9,138		37,653		8,693		53,688
Officer and Trustees	2,064		13,202		2,333		21,867
Transfer agent	12,006		19,100		11,928		25,741
Custodian	5,127		12,068		5,577		17,818
Registration	440		9,464		570		9,542
Miscellaneous	24,901		36,848		25,799		48,076
Total expenses excluding interest expense and fees	188,821		1,296,053		243,405		2,154,837
Interest expense and fees 1	1,293		18,784		4,506		82,867
Total expenses	190,114		1,314,837		247,911		2,237,704
Less fees waived and reimbursed by advisor	(1,693	)	(12,037	)	(672	)	(5,544	)
Total expenses after fees waived and reimbursed	188,421		1,302,800		247,239		2,232,160
Net investment income	803,724		7,450,209		1,231,459		12,917,415
Realized and Unrealized Gain (Loss)
Net realized gain (loss) from:
Investments	60,998		251,734		(143,487	)	(1,881,933	)
Financial futures contracts	(47,741	)	(302,747	)	(57,535	)	(595,052	)
	13,257		(51,013	)	(201,022	)	(2,476,985	)
Net change in unrealized appreciation/depreciation on:
Investments	(232,530	)	(2,229,172	)	(359,488	)	(2,372,937	)
Financial futures contracts	(15,400	)	(90,834	)	(12,649	)	(126,785	)
	(247,930	)	(2,320,006	)	(372,137	)	(2,499,722	)
Total realized and unrealized loss	(234,673	)	(2,371,019	)	(573,159	)	(4,976,707	)
Dividends to AMPS Shareholders From
Net investment income	(25,275	)	(215,849	)	(35,976	)	(347,184	)
Net Increase in Net Assets Applicable to Common Shareholders Resulting from Operations	$ 543,776	$	4,863,341	$	622,324	$	7,593,524

1 Related to TOBs.

| See Notes to Financial
Statements. — ANNUAL REPORT | JULY 31, 2011 | 43 |
| --- | --- | --- |

S tatements of Changes in Net Assets

| | BlackRock
California Municipal Income Trust (BFZ) | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | Year
Ended July 31, | | | Year
Ended July 31, | | | | |
| Increase (Decrease) in Net Assets
Applicable to Common Shareholders: | 2011 | 2010 | | 2011 | | 2010 | | |
| Operations | | | | | | | | |
| Net investment income | $ 31,139,016 | $ | 22,567,795 | $ | 5,119,761 | $ | 5,308,173 | |
| Net realized loss | (8,357,610 | ) | (6,857,759 | ) | (290,392 | ) | (3,583 | ) |
| Net change in unrealized appreciation/depreciation | (5,958,674 | ) | 38,735,800 | | (751,097 | ) | 7,283,510 | |
| Dividends to AMPS Shareholders from net investment income | (627,551 | ) | (494,675 | ) | (157,673 | ) | (177,702 | ) |
| Net increase in net assets
applicable to Common Shareholders resulting from operations | 16,195,181 | | 53,951,161 | | 3,920,599 | | 12,410,398 | |
| Dividends to Common Shareholders From | | | | | | | | |
| Net investment income | (28,943,204 | ) | (21,334,104 | ) | (3,737,750 | ) | (3,737,750 | ) |
| Capital Share Transactions | | | | | | | | |
| Common Shares issued from reorganization | | | 228,998,766 | | | | | |
| Reinvestment of common dividends | 194,043 | | 132,023 | | | | | |
| Net increase in net assets derived from capital share transactions | 194,043 | | 229,130,789 | | | | | |
| Net Assets Applicable to Common Shareholders | | | | | | | | |
| Total increase (decrease) in net assets applicable to Common
Shareholders | (12,553,980 | ) | 261,747,846 | | 182,849 | | 8,672,648 | |
| Beginning of year | 454,298,666 | | 192,550,820 | | 82,928,597 | | 74,255,949 | |
| End of year | $ 441,744,686 | $ | 454,298,666 | $ | 83,111,446 | $ | 82,928,597 | |
| Undistributed net investment income | $ 6,097,121 | $ | 4,789,170 | $ | 4,397,433 | $ | 3,169,845 | |
| | BlackRock
Investment Quality Municipal Income Trust (RFA) | | | BlackRock
Municipal Income Investment Trust (BBF) | | | | |
| | Year
Ended July 31, | | | Year
Ended July 31, | | | | |
| Increase (Decrease) in Net Assets
Applicable to Common Shareholders: | 2011 | 2010 | | 2011 | | 2010 | | |
| Operations | | | | | | | | |
| Net investment income | $ 923,036 | $ | 897,744 | $ | 6,496,368 | $ | 6,186,309 | |
| Net realized loss | (292,991 | ) | (371,435 | ) | (1,501,564 | ) | (1,576,745 | ) |
| Net change in unrealized appreciation/depreciation | (243,441 | ) | 1,707,371 | | (2,227,084 | ) | 9,562,974 | |
| Dividends to AMPS Shareholders from net investment income | (16,673 | ) | (18,365 | ) | (125,459 | ) | (143,487 | ) |
| Net increase in net assets applicable to Common Shareholders resulting
from operations | 369,931 | | 2,215,315 | | 2,642,261 | | 14,029,051 | |
| Dividends to Common Shareholders From | | | | | | | | |
| Net investment income | (947,484 | ) | (932,299 | ) | (6,056,216 | ) | (6,050,943 | ) |
| Capital Share Transactions | | | | | | | | |
| Reinvestment of common dividends | 6,427 | | 6,619 | | 66,589 | | 44,565 | |
| Net Assets Applicable to Common Shareholders | | | | | | | | |
| Total increase (decrease) in net assets applicable to Common
Shareholders | (571,126 | ) | 1,289,635 | | (3,347,366 | ) | 8,022,673 | |
| Beginning of year | 13,854,901 | | 12,565,266 | | 93,072,882 | | 85,050,209 | |
| End of year | $ 13,283,775 | $ | 13,854,901 | $ | 89,725,516 | $ | 93,072,882 | |
| Undistributed net investment income | $ 109,092 | $ | 147,128 | $ | 1,004,384 | $ | 689,752 | |

| See Notes to Financial
Statements. — 44 | ANNUAL REPORT | JULY 31, 2011 |
| --- | --- | --- |

Statements of Changes in Net Assets

	BlackRock New Jersey Investment Quality Municipal Trust Inc. (RNJ)
	Year
Ended July 31,			Year
Ended July 31,
Increase (Decrease) in Net Assets
Applicable to Common Shareholders:	2011	2010		2011		2010
Operations
Net investment income	$ 803,724	$	833,885	$	7,450,209	$	7,784,301
Net realized gain (loss)	13,257		(75,070	)	(51,013	)	114,395
Net change in unrealized appreciation/depreciation	(247,930	)	1,310,034		(2,320,006	)	11,576,851
Dividends to AMPS Shareholders from net investment income	(25,275	)	(28,907	)	(215,849	)	(243,304	)
Net increase in net assets applicable to Common Shares resulting from
operations	543,776		2,039,942		4,863,341		19,232,243
Dividends to Common Shareholders From
Net investment income	(798,842	)	(783,778	)	(7,208,599	)	(7,062,352	)
Capital Share Transactions
Reinvestment of common dividends	15,882		33,509		314,646		390,663
Net Assets Applicable to Common Shareholders
Total increase (decrease) in net assets applicable to Common
Shareholders	(239,184	)	1,289,673		(2,030,612	)	12,560,554
Beginning of year	12,764,104		11,474,431		109,256,590		96,696,036
End of year	$ 12,524,920	$	12,764,104	$	107,225,978	$	109,256,590
Undistributed net investment income	$ 191,756	$	211,016	$	2,271,967	$	2,242,557
	BlackRock
New York Investment Quality Municipal Trust Inc. (RNY)			BlackRock
New York Municipal Income Trust (BNY)
	Year
Ended July 31,			Year
Ended July 31,
Increase (Decrease) in Net Assets
Applicable to Common Shareholders:	2011	2010		2011		2010
Operations
Net investment income	$ 1,231,459	$	1,243,056	$	12,917,415	$	13,233,625
Net realized gain (loss)	(201,022	)	36,426		(2,476,985	)	162,795
Net change in unrealized appreciation/depreciation	(372,137	)	1,655,207		(2,499,722	)	19,527,175
Dividends and distributions to AMPS Shareholders from:
Net investment income	(35,976	)	(38,597	)	(347,184	)	(393,227	)
Net realized gain			(2,688	)
Net increase in net assets applicable to Common Shareholders resulting
from operations	622,324		2,893,404		7,593,524		32,530,368
Dividends and Distributions to Common Shareholders
From
Net investment income	(1,151,343	)	(1,096,393	)	(12,677,483	)	(12,596,574	)
Net realized gain			(32,629	)
Decrease in net assets resulting from dividends and distributions to
Common Shareholders	(1,151,343	)	(1,129,022	)	(12,677,483	)	(12,596,574	)
Capital Share Transactions
Reinvestment of common dividends and distributions	28,773		16,795		704,984		711,029
Net Assets Applicable to Common Shareholders
Total increase (decrease) in net assets applicable to Common
Shareholders	(500,246	)	1,781,177		(4,378,975	)	20,644,823
Beginning of year	18,577,301		16,796,124		182,371,888		161,727,065
End of year	$ 18,077,055	$	18,577,301	$	177,992,913	$	182,371,888
Undistributed net investment income	$ 330,090	$	285,950	$	3,953,452	$	4,064,226

| See Notes to Financial
Statements. — ANNUAL REPORT | JULY 31, 2011 | 45 |
| --- | --- | --- |

S tatements of Cash Flows

Year Ended July 31, 2011	BlackRock California Municipal Income Trust (BFZ)
Cash Provided by Operating Activities
Net increase in net assets resulting from operations, excluding
dividends to AMPS Shareholders	$ 16,822,732	$	386,604	$	2,767,720
Adjustments to reconcile net increase in net assets resulting from
operations to net cash provided by operating activities:
Increase in interest receivable	(2,109,584	)	(34,430	)	(328,206	)
Increase in income receivable affiliated	(12	)	(9	)	(23	)
(Increase) decrease in prepaid expenses	549		384		(60	)
(Increase) decrease in cash pledged as collateral for financial
futures contracts	27,000		(6,600	)	(57,000	)
Increase in other assets	(2,958	)	(92	)	(476	)
Increase (decrease) in investment advisory fees payable	12,390		(3,891	)	5,149
Increase in interest expense and fees payable	52,172		124		3,963
Decrease in other affiliates payable	(4,532	)			(919	)
Increase in other accrued expenses payable	17,702		1,924		25,525
Increase in administration fees payable			3,637
Increase (decrease) in margin variation payable	(13,656	)	5,938		51,063
Increase in Officers and Trustees fees payable	2,970		473		1,383
Net realized and unrealized loss on investments	12,621,163		473,383		3,176,270
Amortization of premium and accretion of discount on investments	1,545,428		23,374		146,071
Proceeds from sales of long-term investments	261,994,348		6,187,012		38,258,208
Purchases of long-term investments	(300,667,965	)	(6,575,552	)	(45,131,594	)
Net proceeds from sales of short-term securities	23,457,890		50,710		2,844,444
Cash provided by operating activities	13,755,637		512,989		1,761,518
Cash Used for Financing Activities
Cash receipts from TOB trust certificates	50,653,895		614,949		4,354,636
Cash payments for TOB trust certificates	(35,005,578	)	(170,138	)
Cash dividends paid to Common Shareholders	(28,748,161	)	(941,019	)	(5,989,265	)
Cash dividends paid to AMPS Shareholders	(634,793	)	(16,781	)	(126,889	)
Decrease in bank overdraft	(21,000	)
Cash used for financing activities	(13,755,637	)	(512,989	)	(1,761,518	)
Cash
Net change in cash
Cash at beginning of year
Cash at end of year
Cash Flow Information
Cash paid during the year for interest and fees	$ 1,111,252	$	35,815	$	236,745
Noncash Financing Activities
Capital shares issued in reinvestment of dividends paid to Common
Shareholders	$ 194,043	$	6,427	$	66,589

A Statement of Cash Flows is presented when a Trust has 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, 2011 |
| --- | --- | --- |

F inancial Highlights BlackRock California Municipal Income Trust (BFZ)


	Year
Ended July 31,							Year
Ended October 31,
	2011	2010		2009				2007		2006
Per Share Operating Performance
Net asset value, beginning
of period	$ 14.28	$	12.71	$	13.98	$	14.97	$	15.74	$	15.18
Net investment income	0.98	1	1.00	1	1.03	1	0.82	1	1.08		1.11
Net realized and unrealized
gain (loss)	(0.45	)	1.50		(1.35	)	(0.90	)	(0.64	)	0.62
Dividends to AMPS
Shareholders from net investment income	(0.02	)	(0.02	)	(0.12	)	(0.22	)	(0.30	)	(0.26	)
Net increase (decrease)
from investment operations	0.51		2.48		(0.44	)	(0.30	)	0.14		1.47
Dividends to Common
Shareholders from net investment income	(0.91	)	(0.91	)	(0.83	)	(0.69	)	(0.91	)	(0.91	)
Net asset value, end of
period	$ 13.88	$	14.28	$	12.71	$	13.98	$	14.97	$	15.74
Market price, end of period	$ 13.16	$	14.21	$	12.40	$	13.99	$	15.82	$	17.12
Total Investment Return 2
Based on net asset value	4.05	%	20.15	%	(2.36	)%	(2.09	)% 3	0.77	%	9.93	%
Based on market price	(0.86	)%	22.55	%	(4.81	)%	(7.29	)% 3	(2.09	)%	21.65	%
Ratios to Average Net Assets Applicable to Common
Shareholders
Total expenses 4	1.46	%	1.36	%	1.54	%	1.25	% 5	1.21	%	1.25	%
Total expenses after fees
waived and before fees paid indirectly 4	1.39	%	1.27	%	1.35	%	0.98	% 5	0.91	%	0.87	%
Total expenses after fees
waived and paid indirectly 4	1.39	%	1.27	%	1.35	%	0.98	% 5	0.91	%	0.87	%
Total expenses after fees waived and paid indirectly and excluding
interest expense and fees and reorganization expense 4,6	1.12	%	1.04	%	1.08	%	0.91	% 5	0.91	%	0.87	%
Net investment income 4	7.19	%	6.94	%	8.27	%	7.39	% 5	7.09	%	7.26	%
Dividends to AMPS Shareholders	0.15	%	0.15	%	1.00	%	1.95	% 5	1.98	%	1.71	%
Net investment income to Common Shareholders	7.04	%	6.79	%	7.27	%	5.44	% 5	5.11	%	5.55	%
Supplemental Data
Net assets applicable to Common Shareholders, end of period (000)	$ 441,745	$	454,299	$	192,551	$	211,671	$	225,939	$	236,573
AMPS outstanding at $25,000 liquidation preference, end of period
(000)	$ 171,325	$	171,325	$	71,000	$	100,900	$	131,950	$	131,950
Portfolio turnover	36	%	47	%	58	%	26	%	26	%	17	%
Asset coverage per AMPS at $25,000 liquidation preference, end of
period	$ 89,460	$	91,293	$	92,801	$	77,457	$	67,816	$	69,836

| See Notes to Financial
Statements. — ANNUAL REPORT | JULY 31, 2011 | 47 |
| --- | --- | --- |

Financial Highlights BlackRock Florida Municipal 2020 Term Trust (BFO)


	Year
Ended July 31,							Year
Ended December 31,
	2011	2010		2009				2007		2006
Per Share Operating Performance
Net asset value, beginning of period	$ 14.91	$	13.35	$	14.16	$	14.72	$	15.16	$	14.90
Net investment income	0.92	1	0.95	1	0.96	1	0.58	1	0.99		0.98
Net realized and unrealized gain (loss)	(0.19	)	1.31		(1.00	)	(0.62	)	(0.45	)	0.23
Dividends and distributions to AMPS Shareholders from:
Net investment income	(0.03	)	(0.03	)	(0.15	)	(0.16	)	(0.31	)	(0.29	)
Net realized gain									(0.02	)
Net increase (decrease) from investment operations	0.70		2.23		(0.19	)	(0.20	)	0.21		0.92
Dividends and distributions to Common Shareholders from:
Net investment income	(0.67	)	(0.67	)	(0.62	)	(0.36	)	(0.61	)	(0.66	)
Net realized gain									(0.04	)
Total dividends and distributions to Common Shareholders	(0.67	)	(0.67	)	(0.62	)	(0.36	)	(0.65	)	(0.66	)
Net asset value, end of period	$ 14.94	$	14.91	$	13.35	$	14.16	$	14.72	$	15.16
Market price, end of period	$ 13.91	$	14.30	$	12.31	$	12.50	$	12.93	$	13.85
Total Investment Return 2
Based on net asset value	5.07	%	17.35	%	(0.48	)%	(1.12	)% 3	1.86	%	6.73	%
Based on market price	2.00	%	22.05	%	3.95	%	(0.63	)% 3	(2.06	)%	8.83	%
Ratios to Average Net Assets Applicable to Common
Shareholders
Total expenses 4	1.13	%	1.14	%	1.29	%	1.22	% 5	1.16	%	1.20	%
Total expenses after fees waived and before fees paid indirectly 4	1.13	%	1.13	%	1.26	%	1.22	% 5	1.16	%	1.20	%
Total expenses after fees waived and paid indirectly 4	1.13	%	1.13	%	1.26	%	1.22	% 5	1.16	%	1.18	%
Total expenses after fees waived and paid indirectly and excluding
interest expense and fees 4,6	1.09	%	1.09	%	1.13	%	1.17	% 5	1.16	%	1.18	%
Net investment income 4	6.29	%	6.72	%	7.39	%	6.74	% 5	6.63	%	6.54	%
Dividends to AMPS Shareholders	0.19	%	0.22	%	1.13	%	1.92	% 5	2.07	%	1.96	%
Net investment income to Common Shareholders	6.10	%	6.50	%	6.26	%	4.82	% 5	4.56	%	4.58	%
Supplemental Data
Net assets applicable to Common Shareholders, end of period (000)	$ 83,111	$	82,929	$	74,256	$	78,747	$	81,896	$	84,300
AMPS outstanding at $25,000 liquidation preference, end of period
(000)	$ 42,900	$	42,900	$	42,900	$	42,900	$	48,900	$	48,900
Portfolio turnover	6	%	6	%	9	%	6	%	17	%
Asset coverage per AMPS at $25,000 liquidation preference, end of
period	$ 73,433	$	73,329	$	68,275	$	70,900	$	66,872	$	68,114

| See Notes to Financial
Statements. — 48 | ANNUAL REPORT | JULY 31, 2011 |
| --- | --- | --- |

Financial Highlights BlackRock Investment Quality Municipal Income Trust (RFA)


	Year
Ended July 31,							Year
Ended October 31,
	2011	2010		2009				2007		2006
Per Share Operating Performance
Net asset value, beginning of period	$ 12.29	$	11.15	$	12.31	$	13.43	$	14.24	$	14.39
Net investment income	0.82	1	0.80	1	0.84	1	0.62	1	0.83		0.82
Net realized and unrealized gain (loss)	(0.49	)	1.19		(1.32	)	(1.14	)	(0.69	)	0.40
Dividends and distributions to AMPS Shareholders from:
Net investment income	(0.01	)	(0.02	)	(0.12	)	(0.20	)	(0.26	)	(0.21	)
Net realized gain									(0.04	)	(0.05	)
Net increase (decrease) from investment operations	0.32		1.97		(0.60	)	(0.72	)	(0.16	)	0.96
Dividends and distributions to Common Shareholders from:
Net investment income	(0.84	)	(0.83	)	(0.56	)	(0.40	)	(0.60	)	(0.85	)
Net realized gain									(0.05	)	(0.26	)
Total dividends and distributions to Common Shareholders	(0.84	)	(0.83	)	(0.56	)	(0.40	)	(0.65	)	(1.11	)
Net asset value, end of period	$ 11.77	$	12.29	$	11.15	$	12.31	$	13.43	$	14.24
Market price, end of period	$ 11.65	$	12.60	$	10.08	$	10.93	$	11.86	$	16.00
Total Investment Return 2
Based on net asset value	2.90	%	18.09	%	(3.68	)%	(5.03	)% 3	(1.02	)%	6.46	%
Based on market price	(0.66	)%	33.92	%	(1.93	)%	(4.51	)% 3	(22.21	)%	15.91	%
Ratios to Average Net Assets Applicable to Common
Shareholders
Total expenses 4	1.84	%	1.69	%	1.72	%	1.60	% 5,6	1.44	%	1.43	%
Total expenses after fees waived and before fees paid indirectly 4	1.84	%	1.69	%	1.68	%	1.58	% 5,6	1.43	%	1.43	%
Total expenses after fees waived and paid indirectly 4	1.84	%	1.69	%	1.68	%	1.58	% 5,6	1.39	%	1.37	%
Total expenses after fees waived and paid indirectly and excluding
interest expense and fees 4,7	1.56	%	1.47	%	1.56	%	1.53	% 5,6	1.39	%	1.37	%
Net investment income 4	7.03	%	6.66	%	7.79	%	6.42	% 5,6	6.03	%	5.80	%
Dividends to AMPS Shareholders	0.13	%	0.13	%	1.10	%	2.03	% 5	1.88	%	1.49	%
Net investment income to Common Shareholders	6.90	%	6.53	%	6.69	%	4.39	% 5,6	4.15	%	4.31	%
Supplemental Data
Net assets applicable to Common Shareholders, end of period (000)	$ 13,284	$	13,855	$	12,565	$	13,871	$	15,134	$	16,054
AMPS outstanding at $25,000 liquidation preference, end of period
(000)	$ 4,575	$	4,575	$	4,575	$	7,125	$	8,500	$	8,500
Portfolio turnover	27	%	44	%	88	%	29	%	40	%	57	%
Asset coverage per AMPS at $25,000 liquidation preference, end of
period	$ 97,589	$	100,711	$	93,664	$	73,687	$	69,526	$	72,229

| 1 | Based on average Common
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. Where
applicable, total investment returns exclude the effects of any sales charges
and include the reinvestment of dividends and distributions. |
| 3 | Aggregate total investment
return. |
| 4 | Do not reflect the effect of
dividends to AMPS 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 TOBs. See Note 1 of the Notes to Financial Statements for details
of municipal bonds transferred to TOBs. |

| See Notes to Financial
Statements. — ANNUAL REPORT | JULY 31, 2011 | 49 |
| --- | --- | --- |

Financial Highlights BlackRock Municipal Income Investment Trust (BBF)


	Year
Ended July 31,							Year
Ended October 31,
	2011	2010		2009				2007		2006
Per Share Operating Performance
Net asset value, beginning of period	$ 13.91	$	12.71	$	14.08	$	15.05	$	15.68	$	15.48
Net
investment income	0.97	1	0.92	1	1.01	1	0.80	1	1.07		1.11
Net realized and unrealized gain (loss)	(0.56	)	1.20		(1.36	)	(0.89	)	(0.49	)	0.26
Dividends to AMPS Shareholders from net investment income	(0.02	)	(0.02	)	(0.14	)	(0.22	)	(0.31	)	(0.27	)
Net increase (decrease) from investment operations	0.39		2.10		(0.49	)	(0.31	)	0.27		1.10
Dividends to Common Shareholders from net investment income	(0.90	)	(0.90	)	(0.88	)	(0.66	)	(0.90	)	(0.90	)
Net asset value, end of period	$ 13.40	$	13.91	$	12.71	$	14.08	$	15.05	$	15.68
Market price, end of period	$ 12.74	$	13.90	$	12.49	$	13.68	$	15.10	$	16.30
Total Investment Return 2
Based on net asset value	3.15	%	17.04	%	(2.57	)%	(2.04	)% 3	1.78	%	7.34	%
Based on market price	(1.86	)%	19.01	%	(1.46	)%	(5.14	)% 3	(1.76	)%	13.26	%
Ratios to Average Net Assets Applicable to Common
Shareholders
Total expenses 4	1.60	%	1.46	%	1.47	%	1.31	% 5	1.28	%	1.30	%
Total expenses after fees waived and before fees paid indirectly 4	1.60	%	1.37	%	1.27	%	1.06	% 5	0.97	%	0.93	%
Total expenses after fees waived and paid indirectly 4	1.60	%	1.37	%	1.27	%	1.06	% 5	0.96	%	0.92	%
Total expenses after fees waived and paid indirectly and excluding
interest expense and fees 4,6	1.33	%	1.17	%	1.16	%	1.02	% 5	0.96	%	0.92	%
Net investment income 4	7.35	%	6.84	%	8.13	%	7.26	% 5	7.02	%	7.12	%
Dividends to AMPS Shareholders	0.14	%	0.16	%	1.11	%	1.96	% 5	2.04	%	1.75	%
Net investment income to Common Shareholders	7.21	%	6.68	%	7.02	%	5.30	% 5	4.98	%	5.37	%
Supplemental Data
Net assets applicable to Common Shareholders, end of period (000)	$ 89,726	$	93,073	$	85,050	$	94,176	$	100,564	$	104,451
AMPS outstanding at $25,000 liquidation preference, end of period
(000)	$ 34,250	$	34,250	$	34,250	$	49,550	$	57,550	$	57,550
Portfolio turnover	24	%	46	%	66	%	13	%	25	%	20	%
Asset coverage per AMPS at $25,000 liquidation preference, end of
period	$ 90,493	$	92,938	$	87,082	$	72,521	$	68,688	$	70,391

| See Notes to Financial
Statements. — 50 | ANNUAL REPORT | JULY 31, 2011 |
| --- | --- | --- |

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

| | Year
Ended July 31, — 2011 | 2010 | | 2009 | | 2008 | | 2007 | | 2006 | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Per
Share Operating Performance | | | | | | | | | | | | |
| Net asset value,
beginning of period | $ 12.57 | $ | 11.33 | $ | 12.20 | $ | 13.57 | $ | 14.47 | $ | 14.48 | |
| Net investment income | 0.79 | 1 | 0.82 | 1 | 0.86 | 1 | 0.66 | 1 | 0.91 | | 0.85 | |
| Net realized and
unrealized gain (loss) | (0.23 | ) | 1.22 | | (0.96 | ) | (1.26 | ) | (0.70 | ) | 0.34 | |
| Dividends and
distributions to AMPS Shareholders from: | | | | | | | | | | | | |
| Net investment
income | (0.02 | ) | (0.03 | ) | (0.13 | ) | (0.16 | ) | (0.23 | ) | (0.20 | ) |
| Net realized gain | | | | | | | | | (0.02 | ) | (0.03 | ) |
| Net increase
(decrease) from investment operations | 0.54 | | 2.01 | | (0.23 | ) | (0.76 | ) | (0.04 | ) | 0.96 | |
| Dividends and
distributions to Common Shareholders from: | | | | | | | | | | | | |
| Net investment
income | (0.79 | ) | (0.77 | ) | (0.64 | ) | (0.61 | ) | (0.82 | ) | (0.84 | ) |
| Net realized gain | | | | | | | | | (0.04 | ) | (0.13 | ) |
| Total dividends
and distributions to Common Shareholders | (0.79 | ) | (0.77 | ) | (0.64 | ) | (0.61 | ) | (0.86 | ) | (0.97 | ) |
| Net asset value,
end of period | $ 12.32 | $ | 12.57 | $ | 11.33 | $ | 12.20 | $ | 13.57 | $ | 14.47 | |
| Market price, end
of period | $ 12.02 | $ | 12.96 | $ | 11.68 | $ | 11.96 | $ | 14.96 | $ | 15.95 | |
| Total
Investment Return 2 | | | | | | | | | | | | |
| Based on net
asset value | 4.63 | % | 18.01 | % | (1.09 | )% | (6.10 | )% 3 | (1.03 | )% | 6.14 | % |
| Based on market
price | (0.99 | )% | 18.02 | % | 4.01 | % | (16.50 | )% 3 | (1.02 | )% | 15.25 | % |
| Ratio
to Average Net Assets Applicable to Common Shareholders | | | | | | | | | | | | |
| Total expenses 4 | 1.55 | % | 1.59 | % | 1.70 | % | 1.88 | % 5,6 | 1.48 | % | 1.51 | % |
| Total expenses
after fees waived and before fees paid indirectly 4 | 1.53 | % | 1.57 | % | 1.67 | % | 1.86 | % 5,6 | 1.47 | % | 1.51 | % |
| Total expenses
after fees waived and paid indirectly 4 | 1.53 | % | 1.57 | % | 1.67 | % | 1.86 | % 5,6 | 1.40 | % | 1.41 | % |
| Total expenses
after fees waived and paid indirectly and excluding interest expense and fees 4,7 | 1.52 | % | 1.56 | % | 1.64 | % | 1.84 | % 5,6 | 1.40 | % | 1.41 | % |
| Net investment
income 4 | 6.55 | % | 6.75 | % | 7.91 | % | 6.97 | % 5,6 | 6.49 | % | 5.91 | % |
| Dividends to AMPS
Shareholders | 0.20 | % | 0.23 | % | 1.20 | % | 1.89 | % 5 | 1.67 | % | 1.41 | % |
| Net investment
income to Common Shareholders | 6.35 | % | 6.52 | % | 6.71 | % | 5.08 | % 5,6 | 4.82 | % | 4.50 | % |
| Supplemental
Data | | | | | | | | | | | | |
| Net assets
applicable to Common Shareholders, end of period (000) | $ 12,525 | $ | 12,764 | $ | 11,474 | $ | 12,351 | $ | 13,694 | $ | 14,576 | |
| AMPS outstanding
at $25,000 liquidation preference, end of period (000) | $ 6,900 | $ | 6,900 | $ | 6,900 | $ | 7,075 | $ | 7,500 | $ | 7,500 | |
| Portfolio
turnover | 26 | % | 23 | % | 32 | % | 18 | % | 31 | % | 27 | % |
| Asset coverage
per AMPS at $25,000 liquidation preference, end of period | $ 70,381 | $ | 71,248 | $ | 66,576 | $ | 68,647 | $ | 70,649 | $ | 73,603 | |

| 1 | Based on average Common
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. Where applicable,
total investment returns exclude the effects of any sales charges and include
the reinvestment of dividends and distributions. |
| 3 | Aggregate total investment
return. |
| 4 | Do not reflect the effect
of dividends to AMPS 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 expense, total expenses after
fees waived and before fees paid indirectly, total expenses after fees waived
and paid indirectly, total expense 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 TOBs. See Note 1 of the Notes to Financial Statements for details
of municipal bonds transferred to TOBs. |

| See Notes to Financial
Statements. — ANNUAL REPORT | JULY 31, 2011 | 51 |
| --- | --- | --- |

Financial Highlights BlackRock New Jersey Municipal Income Trust (BNJ)


	Year
Ended July 31,							Year
Ended October 31,
	2011	2010		2009				2007		2006
Per Share Operating Performance
Net asset value, beginning of period	$ 14.38	$	12.78	$	14.15	$	15.49	$	16.35	$	15.87
Net investment income	0.98	1	1.02	1	1.05	1	0.89	1	1.14		1.17
Net realized and unrealized gain (loss)	(0.32	)	1.54		(1.38	)	(1.24	)	(0.74	)	0.52
Dividends to AMPS Shareholders from net investment income	(0.03	)	(0.03	)	(0.11	)	(0.24	)	(0.30	)	(0.26	)
Net increase (decrease) from investment operations	0.63		2.53		(0.44	)	(0.59	)	0.10		1.43
Dividends to Common Shareholders from net investment income	(0.94	)	(0.93	)	(0.93	)	(0.75	)	(0.96	)	(0.95	)
Net asset value, end of period	$ 14.07	$	14.38	$	12.78	$	14.15	$	15.49	$	16.35
Market price, end of period	$ 14.10	$	14.82	$	14.00	$	15.09	$	16.90	$	18.40
Total Investment Return 2
Based on net asset value	4.74	%	20.22	%	(2.62	)%	(4.12	)% 3	0.17	%	9.18	%
Based on market price	1.85	%	13.11	%	0.04	%	(6.28	)% 3	(2.89	)%	22.56	%
Ratio to Average Net Assets Applicable to Common
Shareholders
Total expenses 4	1.25	%	1.23	%	1.38	%	1.28	% 5	1.24	%	1.27	%
Total expenses after fees waived and before fees paid indirectly 4	1.24	%	1.13	%	1.17	%	1.03	% 5	0.94	%	0.91	%
Total expenses after fees waived and paid indirectly 4	1.24	%	1.13	%	1.17	%	1.03	% 5	0.93	%	0.89	%
Total expenses after fees waived and paid indirectly and excluding
interest expense and fees 4,6	1.22	%	1.12	%	1.14	%	1.02	% 5	0.93	%	0.89	%
Net investment income 4	7.09	%	7.42	%	8.49	%	7.92	% 5	7.18	%	7.31	%
Dividends to AMPS Shareholders	0.21	%	0.23	%	1.22	%	1.94	% 5	1.86	%	1.63	%
Net investment income to Common Shareholders	6.88	%	7.19	%	7.27	%	5.98	% 5	5.32	%	5.68	%
Supplemental Data
Net assets applicable to Common Shareholders, end of period (000)	$ 107,226	$	109,257	$	96,696	$	106,596	$	116,152	$	121,987
AMPS Shares outstanding at $25,000 liquidation preference, end of period
(000)	$ 59,100	$	59,100	$	59,100	$	60,475	$	63,800	$	63,800
Portfolio turnover	20	%	11	%	29	%	12	%	23	%	2	%
Asset coverage per AMPS at $25,000 liquidation preference, end of
period	$ 70,358	$	71,218	$	65,905	$	69,083	$	70,528	$	72,812

| See Notes to Financial
Statements. — 52 | ANNUAL REPORT | JULY 31, 2011 |
| --- | --- | --- |

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


	Year
Ended July 31,							Year
Ended October 31,
	2011	2010		2009				2007		2006
Per Share Operating Performance
Net asset value, beginning of period	$ 14.15	$	12.81	$	13.30	$	14.40	$	15.18	$	15.03
Net investment income	0.94	1	0.95	1	0.95	1	0.67	1	0.95		0.97
Net realized and unrealized gain (loss)	(0.43	)	1.28		(0.61	)	(0.89	)	(0.61	)	0.37
Dividends and distributions to AMPS Shareholders from:
Net investment income	(0.03	)	(0.03	)	(0.10	)	(0.15	)	(0.25	)	(0.21	)
Net realized gain			(0.00	) 2	(0.00	) 2	(0.04	)	(0.01	)	(0.02	)
Net increase (decrease) from investment operations	0.48		2.20		0.24		(0.41	)	0.08		1.11
Dividends and distributions to Common Shareholders from:
Net investment income	(0.88	)	(0.84	)	(0.72	)	(0.60	)	(0.85	)	(0.88	)
Net realized gain			(0.02	)	(0.01	)	(0.09	)	(0.01	)	(0.08	)
Total dividends and distributions to Common Shareholders	(0.88	)	(0.86	)	(0.73	)	(0.69	)	(0.86	)	(0.96	)
Net asset value, end of period	$ 13.75	$	14.15	$	12.81	$	13.30	$	14.40	$	15.18
Market price, end of period	$ 13.49	$	14.70	$	12.61	$	12.83	$	15.39	$	16.65
Total Investment Return 3
Based on net asset value	3.63	%	17.60	%	2.71	%	(2.98	)% 4	0.10	%	7.32	%
Based on market price	(2.14	)%	24.11	%	4.81	%	(12.43	)% 4	(2.46	)%	19.95	%
Ratio to Average Net Assets Applicable to Common
Shareholders
Total expenses 5	1.39	%	1.31	%	1.42	%	1.48	% 6,7	1.29	%	1.33	%
Total expenses after fees waived and before fees paid indirectly 5	1.39	%	1.30	%	1.41	%	1.47	% 6,7	1.29	%	1.33	%
Total expenses after fees waived and paid indirectly 5	1.39	%	1.30	%	1.41	%	1.47	% 6,7	1.24	%	1.25	%
Total expenses after fees waived and paid indirectly and excluding
interest expense and fees 5,8	1.36	%	1.30	%	1.41	%	1.47	% 6,7	1.24	%	1.25	%
Net investment income 5	6.90	%	6.92	%	7.72	%	6.53	% 6,7	6.42	%	6.48	%
Dividends to AMPS Shareholders	0.20	%	0.21	%	1.14	%	1.47	% 6	1.72	%	1.42	%
Net investment income to Common Shareholders	6.70	%	6.71	%	6.58	%	5.06	% 6,7	4.70	%	5.06	%
Supplemental Data
Net assets applicable to Common Shareholders, end of period (000)	$ 18,077	$	18,577	$	16,796	$	17,448	$	18,848	$	19,839
AMPS outstanding at $25,000 liquidation preference, end of period
(000)	$ 9,725	$	9,725	$	9,725	$	9,800	$	9,800	$	9,800
Portfolio turnover	19	%	35	%	24	%	8	%	37	%	24	%
Asset coverage per AMPS at $25,000 liquidation preference, end of
period	$ 71,471	$	72,758	$	68,180	$	69,521	$	73,090	$	75,614

| 1 | Based on average Common
Shares outstanding. |
| --- | --- |
| 2 | Amount is less than $(0.01)
per share. |
| 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. Where
applicable, total investment returns exclude the effects of any sales charges
and include the reinvestment of dividends and distributions. |
| 4 | Aggregate total investment
return. |
| 5 | Do not reflect the effect
of dividends to AMPS Shareholders. |
| 6 | Annualized. |
| 7 | Certain non-recurring
expense have been include in the ratio but not annualized. If these expenses
were annualized, the ratios of total expenses, total expense 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 TOBs. See Note 1 of the Notes to Financial Statements for details
of municipal bonds transferred to TOBs. |

| See Notes to Financial
Statements. — ANNUAL REPORT | JULY 31, 2011 | 53 |
| --- | --- | --- |

Financial Highlights BlackRock New York Municipal Income Trust (BNY)


	Year
Ended July 31,							Year
Ended October 31,
	2011	2010		2009				2007		2006
Per Share Operating Performance
Net asset value, beginning of period	$ 14.27	$	12.71	$	13.88	$	15.11	$	15.88	$	15.44
Net investment income	1.01	1	1.04	1	1.06	1	0.86	1	1.11		1.13
Net realized and unrealized gain (loss)	(0.39	)	1.54		(1.22	)	(1.17	)	(0.70	)	0.47
Dividends to AMPS Shareholders from net investment income	(0.03	)	(0.03	)	(0.10	)	(0.21	)	(0.28	)	(0.26	)
Net increase (decrease) from investment operations	0.59		2.55		(0.26	)	(0.52	)	0.13		1.34
Dividends to Common Shareholders from net investment income	(0.99	)	(0.99	)	(0.91	)	(0.71	)	(0.90	)	(0.90	)
Net asset value, end of period	$ 13.87	$	14.27	$	12.71	$	13.88	$	15.11	$	15.88
Market price, end of period	$ 14.20	$	15.11	$	13.95	$	15.26	$	15.55	$	17.35
Total Investment Return 2
Based on net asset value	4.39	%	20.35	%	(1.28	)%	(3.71	)% 3	0.64	%	8.91	%
Based on market price	0.94	%	16.11	%	(1.44	)%	2.87	% 3	(5.20	)%	20.95	%
Ratios to Average Net Assets Applicable to Common
Shareholders
Total expenses 4	1.27	%	1.25	%	1.43	%	1.25	% 5	1.22	%	1.25	%
Total expenses after fees waived and before fees paid indirectly 4	1.27	%	1.16	%	1.25	%	1.00	% 5	0.92	%	0.88	%
Total expenses after fees waived and paid indirectly 4	1.27	%	1.16	%	1.25	%	1.00	% 5	0.92	%	0.87	%
Total expenses after fees waived and paid indirectly and excluding
interest expense and fees 4,6	1.22	%	1.11	%	1.13	%	0.97	% 5	0.92	%	0.87	%
Net investment income 4	7.35	%	7.50	%	8.67	%	7.79	% 5	7.23	%	7.30	%
Dividends to AMPS Shareholders	0.20	%	0.22	%	1.17	%	1.91	% 5	1.84	%	1.69	%
Net investment income to Common Shareholders	7.15	%	7.28	%	7.50	%	5.88	% 5	5.39	%	5.61	%
Supplemental Data
Net assets applicable to Common Shareholders, end of period (000)	$ 177,993	$	182,372	$	161,727	$	175,927	$	190,962	$	199,717
AMPS outstanding at $25,000 liquidation preference, end of period
(000)	$ 94,500	$	94,500	$	94,500	$	95,850	$	109,750	$	109,750
Portfolio turnover	17	%	16	%	18	%	5	%	23	%	27	%
Asset coverage per AMPS at $25,000 liquidation preference, end of
period	$ 72,089	$	73,248	$	67,787	$	70,892	$	68,509	$	70,502

| See Notes to Financial
Statements. — 54 | ANNUAL REPORT | JULY 31, 2011 |
| --- | --- | --- |

N otes to Financial Statements

1. Organization and Significant Accounting Policies:

BlackRock New Jersey Investment Quality Municipal Trust Inc. (RNJ) and BlackRock New York Investment Quality Municipal Trust Inc. (RNY) are organized as Maryland corporations. BlackRock Investment Quality Municipal Income Trust (RFA) is organized as a Massachusetts business trust. RNJ, RNY and RFA are herein referred to as the Investment Quality Trusts. BlackRock California Municipal Income Trust (BFZ), BlackRock Municipal Income Investment Trust (BBF), BlackRock New Jersey Municipal Income Trust (BNJ), BlackRock New York Municipal Income Trust (BNY) (collectively, the Income Trusts) and BlackRock Florida Municipal 2020 Term Trust (BFO) are organized as Delaware statutory trusts. The Investment Quality Trusts, Income Trusts and BFO 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 (US GAAP), which may require management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. The Board of Directors and the Board 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 NAV of their Common Shares on a daily basis.

Reorganization: The Board and shareholders of BFZ and the Board and shareholders of each of BlackRock California Insured Municipal Income Trust (BCK), BlackRock California Municipal Bond Trust (BZA) and BlackRock California Municipal Income Trust II (BCL) (individually, a Target Fund and collectively the Target Funds) approved the reorganizations of BCK, BZA and BCL into BFZ, pursuant to which BFZ acquired substantially all of the assets and substantially all of the liabilities of BCK, BZA and BCL in exchange for an equal aggregate value of newly-issued Common Shares and AMPS Shares of BFZ.

Each Common Shareholder of a Target Fund received Common Shares of BFZ in an amount equal to the aggregate net asset value of such Common Shareholders Target Fund Common Shares, as determined at the close of business on January 29, 2010 less the costs of the Target Funds reorganization (although cash was distributed for any fractional Common Shares).

Each AMPS Shareholder of a Target Fund received AMPS of BFZ in an amount equal to the aggregate liquidation preference of the Target Fund AMPS held by such AMPS Shareholder prior to the Target Funds reorganization.

The reorganizations were accomplished by a tax-free exchange of Common Shares and AMPS of BFZ in the following amounts and at the following conversion ratios:

| Shares Prior to Reorganization | Conversion Ratio | Shares
of BFZ | |
| --- | --- | --- | --- |
| BCK | 5,278,087 | 0.97546003 | 5,148,524 |
| BZA | 3,409,668 | 1.04505055 | 3,563,251 |
| BCL | 7,999,789 | 0.99301767 | 7,943,897 |

| Series
F-7 | Series
R-7 | Series
T-7 | |
| --- | --- | --- | --- |
| BCK | 1,253 | | |
| BZA | 898 | | |
| BCL | | 931 | 931 |

Each Target Funds net assets and composition of net assets on January 29, 2010, the date of the merger, were as follows:

| | Net
Assets Applicable to Common Shareholders | AMPS at Liquidation Preference | Paid-in Capital |
| --- | --- | --- | --- |
| BCK | $ 70,787,151 | $ 31,325,000 | $ 4,722,726 |
| BZA | $ 48,990,979 | $ 22,450,000 | $ 48,275,547 |
| BCL | $ 109,220,636 | $ 46,550,000 | $ 113,337,925 |

BCK	Undistributed Net Investment Income — $ 13,660	Accumulated Net Realized Loss — $ (2,517,189	)	Net Unrealized Appreciation/ Depreciation — $ (1,432,046
BZA	$ 8,847	$ (560,343	)	$ 1,266,928
BCL	$ 67,073	$ (7,251,617	)	$ 3,067,255

For financial reporting purposes, assets received and shares issued by BFZ were recorded at fair value; however, the cost basis of the investments received from the Target Funds were carried forward to align ongoing reporting of BFZs realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes.

The aggregate net assets of BFZ immediately after the acquisition amounted to $437,406,830. Each Target Funds fair value and cost of investments prior to the reorganization were as follows:

| | Fair
Value of Investments | Cost of Investments |
| --- | --- | --- |
| BCK | $ 108,191,823 | $ 109,623,869 |
| BZA | $ 76,672,439 | $ 75,405,511 |
| BCL | $ 175,462,460 | $ 172,395,205 |

The purpose of these transactions was to combine four funds managed by the Manager with the same or substantially similar (but not identical) investment objectives, investment policies, strategies, risks and restrictions. Each reorganization was a tax-free event and was effective on February 1, 2010.

In connection with the reorganizations, BFZs investment advisory fee was reduced by 2 basis points, from 0.60% of BFZs average weekly net assets to 0.58% of BFZs average weekly net assets as defined in Note 3. In addition to this reduction, BFZs contractual investment advisory fee waiver, as a percentage of average weekly net assets, was extended for an additional two years as follows: (i) 0.05% through December 31, 2010, (ii) 0.03% through December 31, 2011 and (iii) 0.01% through December 31, 2012.

ANNUAL REPORT JULY 31, 2011 55

Notes to Financial Statements (continued)

Assuming the acquisition had been completed on August 1, 2009, the beginning of the annual reporting period of BFZ, the pro forma results of operations for the year ended July 31, 2010, are as follows:

| | Net investment income:
$30,885,392 |
| --- | --- |
| | Net realized and change in
unrealized gain on investments: $41,142,437 |
| | Dividends to AMPS
Shareholders from net investment
income: $(711,091) |
| | Net increase in net assets
applicable to Common Shareholders resulting from operations: $71,316,738 |

Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of BFZ that have been included in BFZs Statement of Operations since January 29, 2010 to July 31, 2010.

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

Valuation: US GAAP defines fair value as the price the Trusts would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Trusts fair value their financial instruments at market value using independent dealers or pricing services under policies approved by each Trusts Board. 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. 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. Financial futures contracts traded on exchanges are valued at their last sale price. Investments in open-end registered investment companies are valued at net asset value each business day. Short-term securities with remaining maturities of 60 days or less may be valued at amortized cost, which approximates fair value.

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 or is not available, the investment will be valued in accordance with a policy approved by the 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.

Zero-Coupon Bonds: The Trusts 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.

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 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 Trusts are 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 appreciation of unsettled when-issued transactions, which is shown in the Schedules of Investments.

Municipal Bonds Transferred to TOBs: The Trusts leverage their assets through the use of 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 a Trust (1) to cause the holders of a proportional share of the short-term floating rate certificates to tender their certificates at par, including during instances of a rise in short-term interest rates, and (2) to transfer, within seven days, a corresponding share of the municipal bonds from the TOB to a Trust. The TOB may also be terminated without the consent of a 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. During the year ended July 31, 2011, no TOBs that the Trusts participated in were terminated without the consent of the Trusts.

The cash received by the TOB from the sale of the short-term floating rate certificates, less transaction expenses, is paid to a 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 TOB trust certificates under other liabilities in the Statements of Assets and Liabilities.

Interest income, including amortization and accretion of premiums and discounts, from the underlying municipal bonds 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 shown as interest expense and fees in the Statements of Operations. The short-term floating rate certificates have interest rates that generally reset weekly and their holders have the option to tender certificates to the TOB for redemption at par at each reset date. At July 31, 2011, the aggregate value

56 ANNUAL REPORT JULY 31, 2011

Notes to Financial Statements (continued)

of the underlying municipal bonds transferred to TOBs, the related liability for TOB trust certificates and the range of interest rates on the liability for TOB trust certificates were as follows:

| BFZ | Underlying Municipal Bonds Transferred to TOBs — $ 279,019,169 | Liability
for TOB Trust Certificates — $ 143,712,937 | 0.08%
0.14 % |
| --- | --- | --- | --- |
| BFO | $ 826,770 | $ 500,000 | 0.14%
0.22 % |
| RFA | $ 8,286,843 | $ 4,458,720 | 0.08%
0.22 % |
| BBF | $ 57,155,385 | $ 30,617,038 | 0.08%
0.12 % |
| RNJ | $ 244,957 | $ 159,917 | 0.17% |
| BNJ | $ 7,350,086 | $ 3,859,296 | 0.11%
0.17 % |
| RNY | $ 1,143,732 | $ 569,974 | 0.11%
0.12 % |
| BNY | $ 21,799,333 | $ 11,089,474 | 0.11%
0.22 % |

For the year ended July 31, 2011, the Trusts average TOB trust certificates outstanding and the daily weighted average interest rate, including fees, were as follows:

| BFZ | Average
TOB Trust Certificates Outstanding — $ 149,992,763 | 0.78 % |
| --- | --- | --- |
| BFO | $ 3,983,121 | 0.68 % |
| RFA | $ 4,503,523 | 0.80 % |
| BBF | $ 30,484,928 | 0.79 % |
| RNJ | $ 159,917 | 0.81 % |
| BNJ | $ 2,371,659 | 0.79 % |
| RNY | $ 569,974 | 0.79 % |
| BNY | $ 11,474,403 | 0.72 % |

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

Segregation and Collateralization: In cases in which the 1940 Act and the interpretive positions of the Securities and Exchange Commission (SEC) require that the Trusts either deliver collateral or segregate assets in connection with certain investments (e.g., financial futures contracts), the Trusts will, consistent with SEC rules and/or certain interpretive letters issued by the SEC, segregate collateral or designate on their books and records cash or 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 to such transactions has requirements to deliver/deposit securities as collateral for certain investments.

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 investment transactions are determined on the identified cost basis. Dividend income is recorded on the ex-dividend dates. Interest income, including amortization and accretion of premiums and discounts on debt securities, is recognized on the accrual basis.

Dividends and Distributions: Dividends from net investment income are declared and paid monthly. Distributions of capital gains are recorded on the ex-dividend dates. The amount and timing of dividends and distributions are determined in accordance with federal income tax regulations, which may differ from US GAAP. Dividends and distributions to AMPS Shareholders are accrued and determined as described in Note 7.

I ncome Taxes: It is each Trusts policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies and to distribute substantially all of its taxable income to its shareholders. Therefore, no 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 statutes of limitations on Investment Quality Trusts and Income Trusts US federal tax returns remains open for each of the three years ended July 31, 2011, 2010 and 2009, and the period ended July 31, 2008. The statutes of limitations on BFOs US federal tax returns remain open for the three years ended July 31, 2011, 2010 and 2009 and the period ended July 31, 2008. The statutes of limitations on each Trusts state and local tax returns may remain open for an additional year depending upon the jurisdiction. Management does not believe there are any uncertain tax positions that require recognition of a tax liability.

Recent Accounting Standard: In May 2011, the Financial Accounting Standards Board issued amended guidance to improve disclosure about fair value measurements which will require the following disclosures for fair value measurements categorized as Level 3: quantitative information about the unobservable inputs and assumptions used in the fair value measurement, a description of the valuation policies and procedures and a narrative description of sensitivity of the fair value measurement to changes in unobservable inputs and the interrelationships between those unobservable inputs. In addition, the amounts and reasons for all transfers in and out of Level 1 and Level 2 will be required to be disclosed. The amended guidance is effective for financial statements for fiscal years beginning after December 15, 2011, and interim periods within those fiscal years. Management is evaluating the impact of this guidance on the Trusts financial statements and disclosures.

Deferred Compensation and BlackRock Closed-End Share Equivalent Investment Plan: Under the deferred compensation plan approved by each Trusts Board, independent 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 certain other BlackRock Closed-End Funds 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 certain other 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 certain other 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, if any, are included in other assets in the Statements of Assets and Liabilities. Dividends and distributions from

ANNUAL REPORT JULY 31, 2011 57

Notes to Financial Statements (continued)

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 pro rated among those funds on the basis of relative net assets or other appropriate methods.

The Trusts have an arrangement with the custodians whereby fees may be reduced by credits earned on uninvested cash balances, which, if applicable, are shown as fees paid indirectly in the Statements of Operations. The custodians impose fees on overdrawn cash balances, which can be offset by accumulated credits earned or may result in additional custody charges.

2. Derivative Financial Instruments:

The Trusts engage in various portfolio investment strategies using derivative contracts both to increase the returns of the Trusts and to economically hedge, or protect, their exposure to certain risks such as interest rate risk. These contracts may be transacted on an exchange.

Losses may arise if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument or if the counterparty does not perform under the contract. Counterparty risk related to exchange-traded financial futures contracts is deemed to be minimal due to the protection against defaults provided by the exchange on which these contracts trade.

Financial Futures Contracts: The Trusts 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 agreements between the Trusts and the coun-terparty to buy or sell a specific quantity of an underlying instrument at a specified price and at a specified date. Depending on the terms of the particular contract, futures contracts are settled either through physical delivery of the underlying instrument on the settlement date of by payment of a cash settlement amount on the settlement date. 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 recorded by the Trusts as unrealized appreciation or depreciation. 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 contracts involves the risk of an imperfect correlation in the movements in the price of financial futures contracts, interest rates and the underlying assets.

| Derivative Financial Instruments
Categorized by Risk Exposure: | | | | | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | Fair
Values of Derivative Financial Instruments as of July 31, 2011 | | | | | | | | | | | | |
| | Liability
Derivatives | | | | | | | | | | | | |
| | | RFA | | BBF | | RNJ | | BNJ | | RNY | | BNY | |
| | Statement
of Assets and Liabilities Location | Value | | | | | | | | | | | |
| Interest rate contracts | Net unrealized appreciation/depreciation* | $ (15,400 | ) | $ (136,215 | ) | $ (15,400 | ) | $ (90,834 | ) | $ (17,783 | ) | $ (174,273 | ) |

Includes cumulative appreciation/depreciation on financial futures contracts as reported in the Schedules of Investments. Only current days margin variation is reported within the Statements of Assets and Liabilities.

| The
Effect of Derivative Financial Instruments in the Statements of Operations Year Ended July 31, 2011 | | | | | | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | Net
Realized Loss From | | | | | | | | | | | | | |
| | BFZ | | RFA | | BBF | | RNJ | | BNJ | | RNY | | BNY | |
| Interest rate contracts: | | | | | | | | | | | | | | |
| Financial futures contracts | $ (1,738,793 | ) | $ (47,741 | ) | $ (416,639 | ) | $ (47,741 | ) | $ (302,747 | ) | $ (57,535 | ) | $ (595,052 | ) |

| | Net
Change in Unrealized Appreciation/Depreciation on — BFZ | RFA | | BBF | | RNJ | | BNJ | | RNY | | BNY | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Interest rate contracts: | | | | | | | | | | | | | |
| Financial futures contracts | $ 40,714 | $ (15,400 | ) | $ (136,215 | ) | $ (15,400 | ) | $ (90,834 | ) | $ (12,649 | ) | $ (126,785 | ) |

For the year ended July 31, 2011, the average quarterly balances of outstanding derivative financial instruments were as follows:

	BFZ	RFA	BBF	RNJ	BNJ	RNY	BNY
Financial futures contracts:
Average number of contracts sold	40	3	27	3	17	3	31
Average notional value of contracts sold	$ 4,740,549	$ 360,658	$ 3,183,678	$ 360,658	$ 2,071,870	$ 364,207	$ 3,700,264

58 ANNUAL REPORT JULY 31, 2011

Notes to Financial Statements (continued)

3. Investment Advisory Agreement and Other Transactions with Affiliates:

The PNC Financial Services Group, Inc. (PNC) and Barclays Bank PLC (Barclays) are the largest stockholders of BlackRock, Inc. (BlackRock). Due to the ownership structure, PNC is an affiliate of the Trusts for 1940 Act purposes, but Barclays is not.

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 based on a percentage of each Trusts average weekly net assets at the following annual rates:

BFZ	0.58
BFO	0.50 %
RFA	0.35 %
BBF	0.60 %
RNJ	0.35 %
BNJ	0.60 %
RNY	0.35 %
BNY	0.60 %

Average weekly net assets is the average weekly value of each Trusts total assets minus the sum of its accrued liabilities.

The Manager contractually agreed to waive a portion of the investment advisory fee on BFZ at an annual rate of 0.05% of average weekly net assets through December 31, 2010, 0.03% through December 31, 2011 and 0.01% through December 31, 2012. For the year ended July 31, 2011, the Manager waived $291,212, which is included in fees waived by advisor in the Statements of Operations.

The Manager voluntarily agreed to waive its investment advisory fees by the amount of investment advisory fees each Trust pays to the Manager indirectly through its investment in affiliated money market funds, however the Manager does not waive its investment advisory fees by the amount of investment advisory fees paid through each Trusts investment in other affiliated investment companies, if any. These amounts are shown as, or included in, fees waived by advisor in the Statements of Operations. For the year ended July 31, 2011, the amounts waived were as follows:

BFZ	$
BFO	$ 5,160
RFA	$ 134
BBF	$ 1,256
RNJ	$ 1,693
BNJ	$ 12,037
RNY	$ 672
BNY	$ 5,544

Each Investment Quality Trust has an Administration Agreement with the Manager. The administration fee paid 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.

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

For the year ended July 31, 2011, the Trusts reimbursed the Manager for certain accounting services, which are included in accounting services in the Statements of Operations. The reimbursements were as follows:

BFZ	$
BFO	$ 1,062
BBF	$ 1,297
BNJ	$ 1,365
BNY	$ 2,305

Effective January 1, 2011, the Trusts no longer reimburse the Manager for accounting services.

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, 2011, were as follows:

	Purchases	Sales
BFZ	$ 288,046,468	$ 261,230,636
BFO	$ 11,601,605	$ 7,648,078
RFA	$ 6,543,484	$ 5,984,740
BBF	$ 44,533,611	$ 36,758,913
RNJ	$ 5,172,892	$ 4,835,883
BNJ	$ 34,587,107	$ 33,144,630
RNY	$ 5,556,598	$ 5,190,993
BNY	$ 45,800,339	$ 52,995,112

ANNUAL REPORT JULY 31, 2011 59

Notes to Financial Statements (continued)

5. Income Tax Information:

Reclassifications: US GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. The following permanent differences as of July 31, 2011 attributable to amortization methods on fixed income securities, the expiration of capital loss carryforwards and income recognized from pass-through entities were reclassified to the following accounts:

Paid-in capital	BFZ — $ (3,015,822	)	BFO —		RFA —		BBF —		RNJ —		BNJ —			BNY —
Undistributed net investment income	$ (260,310	)	$ 3,250		$ 3,085		$ (61	)	$ 1,133		$ 3,649			$ (3,522	)
Accumulated net realized loss	$ 3,276,132		$ (3,250	)	$ (3,085	)	$ 61		$ (1,133	)	$ (3,649	)		$ 3,522

The tax character of distributions paid during the fiscal years ended July 31, 2011 and July 31, 2010 was as follows:

		BFZ	BFO	RFA	BBF	RNJ	BNJ	RNY	BNY
Tax-exempt income	7/31/2011	$ 29,537,062	$ 3,895,423	$ 964,157	$ 6,181,675	$ 824,117	$ 7,392,033	$ 1,187,319	$ 13,024,667
	7/31/2010	21,828,779	3,915,452	950,664	6,194,430	812,685	7,305,656	1,134,990	12,989,801
Ordinary income	7/31/2011	33,693					32,415
	7/31/2010							35,317
Total
distributions	7/31/2011	$ 29,570,755	$ 3,895,423	$ 964,157	$ 6,181,675	$ 824,117	$ 7,424,448	$ 1,187,319	$ 13,024,667
	7/31/2010	$ 21,828,779	$ 3,915,452	$ 950,664	$ 6,194,430	$ 812,685	$ 7,305,656	$ 1,170,307	$ 12,989,801

As of July 31, 2011, the tax components of accumulated net earnings (losses) were as follows:

Undistributed tax-exempt income	BFZ — $ 5,873,401		BFO — $ 4,430,622	$	93,382		BBF — $ 826,658		RNJ — $ 197,540		BNJ — $ 2,150,688		RNY — $ 334,851	$	4,031,038
Undistributed ordinary income	4,796		312		234		694		1,732		1,313		1,643		4,618
Capital loss carryforwards	(21,060,618	)	(583,106	)	(2,410,810	)	(9,320,918	)	(595,385	)	(2,030,067	)	(150,605	)	(6,719,796	)
Net unrealized gains (losses)*	8,332,989		372,318		575,644		3,188,653		(296,445	)	(1,161,604	)	114,067		(1,461,407	)
Total	$ (6,849,432	)	$ 4,220,146	$	(1,741,550	)	$ (5,304,913	)	$ (692,558	)	$ (1,039,670	)	$ 299,956	$	(4,145,547	)

The differences between book-basis and tax-basis net unrealized gains (losses) were attributable primarily to the tax deferral of losses on wash sales, amortization methods for premiums and discounts on fixed income securities, the accrual of income on securities in default, the realization for tax purposes of unrealized gains/losses on certain futures contracts, the deferral of post-October capital losses for tax purposes, the tax treatment of residual interests in TOBs and the deferral of compensation to trustees.

As of July 31, 2011, the Trusts had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates:

Expires July 31,	BFZ	BFO	RFA	BBF	RNJ	BNJ	RNY	BNY
2012	$ 2,050,253			$ 518,297		$ 3,833		$ 151,220
2014	1,681,553
2015	465,742		$ 137,267	426,674		592,744
2016	186,028		389,530	866,417	$ 223,484	15,502		505,354
2017	3,782,470	$ 521,006	299,461					2,599,716
2018	12,894,572	62,100	1,266,317	6,858,066	345,722	1,390,524		1,480,575
2019			318,235	651,464	26,179	27,464	$ 150,605	1,982,931
Total	$ 21,060,618	$ 583,106	$ 2,410,810	$ 9,320,918	$ 595,385	$ 2,030,067	$ 150,605	$ 6,719,796

Under the recently enacted Regulated Investment Company Modernization Act of 2010, capital losses incurred by the Trusts after July 31, 2011 will not be subject to expiration. In addition, these losses must be utilized prior to the losses incurred in pre-enactment taxable years.

60 ANNUAL REPORT JULY 31, 2011

Notes to Financial Statements (continued)

6. Concentration, Market and Credit Risk:

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

Many municipalities insure repayment of their bonds, which may reduce the potential for loss due to credit risk. 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 (issuer 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 issuer credit risk, the Trusts may be exposed to counterparty credit risk, or the risk that an entity with which the Trusts have unsettled or open transactions may fail to or be unable to perform on its commitments. The Trusts manage coun-terparty credit risk by entering into transactions only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Trusts to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Trusts exposure to market, issuer and coun-terparty credit risks with respect to these financial assets is generally approximated by their value recorded in the Trusts Statements of Assets and Liabilities, less any collateral held by the Trusts.

As of July 31, 2011, BFZ invested a significant portion of its assets in securities in the County/City/Special District/School District and Utilities sectors. BFO and RNY invested a significant portion of their assets in securities in the County/City/Special District/School District sector. RFA invested a significant portion of its assets in securities in the Utilities sector. BBF invested a significant portion of its assets in securities in the Health, County/City/Special District/School District and Utilities sectors. RNJ invested a significant portion of its assets in securities in the Education sector, BNJ invested a significant portion of their assets in securities in the State sector. Changes in economic conditions affecting the Utilities, County/City/Special District/School District, Health and State sectors would have a greater impact on the Trusts and could affect the value, income and/or liquidity of positions in such securities.

7. Capital Share Transactions:

Each Investment Quality Trust is authorized to issue 200 million 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 BFO. Each Trusts Board is authorized, however, to reclassify any unissued shares without approval of Common Shareholders. At July 31, 2011, Common Shares of BFO owned by affiliates of the Manager was 8,028 shares.

Common Shares

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

BFZ	13,214	10,114
RFA	546	551
BBF	4,809	3,240
RNJ	1,268	2,699
BNJ	22,508	28,026
RNY	2,077	1,225
BNY	50,883	50,502

Shares issued and outstanding remained constant for BFO for the year ended July 31, 2011 and July 31, 2010.

AMPS

The AMPS 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 and unpaid dividends whether or not declared. The AMPS are also subject to mandatory redemption at their liquidation preference plus any accumulated and 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 Articles of Amendment/Statement of Preferences (the Governing Instrument) are not satisfied.

From time to time in the future, each Trust may effect repurchases of its AMPS at prices below their liquidation preference as agreed upon by the Trust and seller. Each Trust also may redeem its AMPS from time to time as provided in the applicable Governing Instrument. Each Trust intends to effect 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.

The Trusts had the following series of AMPS outstanding, effective yields and reset frequency as of July 31, 2011:

BFZ	F7	2,151	Effective Yield — 0.12 %	7
	R7	2,351	0.12 %	7
	T7	2,351	0.12 %	7
BFO	F7	1,716	0.12 %	7
RFA	R7	183	0.12 %	7
BBF	T7	1,370	0.12 %	7
RNJ	T7	276	0.12 %	7
BNJ	R7	2,364	0.12 %	7
RNY	F7	389	0.12 %	7
BNY	F7	1,890	0.12 %	7
	W7	1,890	0.12 %	7

ANNUAL REPORT JULY 31, 2011 61

Notes to Financial Statements (concluded)

Dividends on seven-day AMPS are cumulative at a rate, which is reset every seven days based on the results of an auction. If the AMPS fail to clear the auction on an auction date, each Trust is required to pay the maximum applicable rate on the AMPS 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 AMPS is the higher of 110% of the AA commercial paper rate or 100% 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 AMPS for each Trust for the year ended July 31, 2011 were as follows:

BFZ	F7	0.12%	0.50%	Average — 0.36%
	R7	0.11%	0.50%	0.36%
	T7	0.11%	0.50%	0.37%
BFO	F7	0.11%	0.50%	0.36%
RFA	R7	0.11%	0.50%	0.36%
BBF	Y7	0.11%	0.50%	0.37%
RNJ	Y7	0.11%	0.50%	0.37%
BNJ	R7	0.11%	0.50%	0.36%
RNY	F7	0.11%	0.50%	0.36%
BNY	F7	0.11%	0.50%	0.36%
	W7	0.11%	0.50%	0.37%

Since February 13, 2008, the AMPS of the Trusts failed to clear any of their auctions. As a result, the AMPS dividend rates were reset to the maximum applicable rate, which ranged from 0.11% to 0.50% for the year ended July 31, 2011. A failed auction is not an event of default for the Trusts but it has a negative impact on the liquidity of AMPS. A failed auction occurs when there are more sellers of a Trusts AMPS than buyers. A successful auction for the Trusts AMPS may not occur for some time, if ever, and even if liquidity does resume, AMPS Shareholders may not have the ability to sell the AMPS at their liquidation preference.

The Trusts 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 AMPS is less than 200%.

The Trusts pay commissions of 0.15% on the aggregate principal amount of all shares that fail to clear their auctions and 0.25% on the aggregate principal amount of all shares that successfully clear their auctions. Certain broker dealers have individually agreed to reduce commissions for failed auctions.

AMPS issued and outstanding remained constant during the year ended July 31, 2011 and during the year ended July 31, 2010 for all Trusts, except BFZ which increased the amount of shares received from the reorganization as disclosed in Note 1.

8. Subsequent Events:

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

The Trusts paid a net investment income dividend in the following amounts per share on September 1, 2011 to Common Shareholders of record on August 15, 2011:

BFZ	$ 0.075700
BFO	$ 0.056000
RFA	$ 0.070000
BBF	$ 0.075375
RNJ	$ 0.065500
BNJ	$ 0.079100
RNY	$ 0.073000
BNY	$ 0.082500

The dividends declared on AMPS for the period August 1, 2011 to August 31, 2011 were as follows:

BFZ	F7	Dividends Declared — $ 11,336
	R7	$ 11,144
	T7	$ 14,247
BFO	F7	$ 9,043
RFA	R7	$ 867
BBF	Y7	$ 8,302
RNJ	Y7	$ 1,673
BNJ	R7	$ 11,205
RNY	F7	$ 2,050
BNY	F7	$ 9,960
	W7	$ 8,694

On September 15, 2011, BBF issued 342 Series W-7 VRDP Shares, $100,000 liquidation value per share with a maturity date of October 1, 2041 and total proceeds received of $34,200,000 in a private offering of VRDP Shares to qualified institutional buyers, as defined in Rule 144A under the Securities Act of 1933, to finance the AMPS redemption.

BBF entered into a Fee Agreement (the Agreement) with a financial institution in relation to the refinancing of AMPS. Pursuant to the terms of the Agreement, effective September 15, 2011, BBF will pay a liquidity fee to provide a liquidity feature in the event of a failed remarketing.

On September 16, 2011, BBF announced the redemption of all of the outstanding AMPS at a price of $25,000 per share plus any accrued and unpaid dividends through the expected redemption date of October 12, 2011.

62 ANNUAL REPORT JULY 31, 2011

R eport of Independent Registered Public Accounting Firm

To the Shareholders and Board of Directors of BlackRock New Jersey Investment Quality Municipal Trust Inc. and BlackRock New York Investment Quality Municipal Trust Inc. and to the Shareholders and Board of Trustees of 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 Municipal Income Trust and BlackRock New York Municipal Income Trust:

We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of 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 (the Trusts) as of July 31, 2011, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the periods presented. We have also audited the statements of cash flows of BlackRock California Municipal Income Trust, BlackRock Investment Quality Municipal Income Trust, and BlackRock Municipal Income Investment Trust for the year ended July 31, 2011. 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, 2011, 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 positions of 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 as of July 31, 2011, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the statements of cash flows referred to above present fairly, in all material respects, the cash flows of BlackRock California Municipal Income Trust, BlackRock Investment Quality Municipal Income Trust, and BlackRock Municipal Income Investment Trust for the year ended July 31, 2011.

Deloitte & Touche LLP Boston, Massachusetts September 28, 2011

ANNUAL REPORT JULY 31, 2011 63

I mportant Tax Information (Unaudited)

The following table summarizes the taxable per share distributions paid by BFZ and BNJ during the taxable year ended July 31, 2011.


BFZ
Common Shareholders	12/31/10	$0.001032
AMPS Shareholders:
Series T-7	11/24/10	$0.13
Series R-7	11/26/10	$0.13
Series F-7	11/29/10	$0.11
BNJ
Common Shareholders	12/31/10	$0.004118
AMPS Shareholders:
Series R-7	11/26/10	$0.35
Series R-7	12/17/10	$0.11

All other net investment income distributions paid by BFZ and BNJ during the taxable year ended July 31, 2011 qualify as tax-exempt interest dividends for federal income tax purposes.

All of the net investment income distributions paid by BFO, RFA, BBF, RNJ, RNY and BNY during the taxable year ended July 31, 2011 qualify as tax-exempt interest dividends for federal income tax purposes.

64 ANNUAL REPORT JULY 31, 2011

D isclosure of Investment Advisory Agreements and Sub-Advisory Agreements

The Board of Directors or Trustees, as applicable (each, a Board, collectively, the Boards, and the members of which are referred to as Board Members) of 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) and BlackRock New York Municipal Income Trust (BNY) and together with BFZ, BFO, RFA, BBF, RNJ, BNJ and RNY, each a Fund, and, collectively, the Funds) met on April 14, 2011 and May 1213, 2011 to consider the approval of each Funds investment advisory agreement (each, an Advisory Agreement) with BlackRock Advisors, LLC (the Manager), each Funds investment advisor. The Board of each Fund also considered the approval of the sub-advisory agreement (each, a Sub-Advisory Agreement) between the Manager and BlackRock Financial Management, Inc. (the Sub-Advisor), with respect to each Fund. 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.

Activities and Composition of the Board

Each Board consists of eleven individuals, nine of whom are not interested persons of such Fund as defined in the Investment Company Act of 1940 (the 1940 Act) (the Independent Board Members). The Board Members are responsible for the oversight of the operations of the Funds 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 the 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 also has one interested Board Member) and is chaired by an Independent Board Member. Each Board also established a Committee on Auction Market Preferred Shares. Further, each Board established an ad hoc committee, the Joint Product Pricing Committee, which consisted of Independent Board Members and the directors/trustees of the boards of certain other BlackRock-managed funds, who were not interested persons of their respective funds.

The Agreements

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

The Boards, acting directly and through their respective committees, considered at each of their meetings, and from time to time as appropriate, factors that are relevant to its 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 managements and portfolio managers analysis of the reasons for any overperformance or underperformance against their peers and/or benchmark, as applicable; (b) fees, including advisory fees and, with respect to RFA, RNJ and RNY, administration fees, and other amounts paid to BlackRock and its affiliates by the Funds for services such as call center and fund accounting; (c) Fund operating expenses and how BlackRock allocates expenses to the Funds; (d) the resources devoted to, risk oversight of, and compliance reports relating to, implementation of the Funds investment objectives, policies and restrictions; (e) the Funds compliance with its Code of Ethics and other 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 and risk and compliance oversight mechanisms; (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; (k) an analysis of contractual and actual management fee ratios for products with similar investment objectives across the open-end fund, closed-end fund and institutional account product channels, as applicable; (l) BlackRocks compensation methodology for its investment professionals and the incentives it creates; and (m) periodic updates on BlackRocks business.

ANNUAL REPORT JULY 31, 2011 65

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

Board Considerations in Approving the Agreements

The Approval Process: Prior to the April 14, 2011 meeting, the Boards requested and received materials specifically relating to the Agreements. The Boards are engaged in a process with BlackRock to review periodically 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 the Funds as compared with a peer group of funds as determined by Lipper and, with respect to BFZ, RFA, BBF, RNY and BNY, a customized peer group selected by BlackRock (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 management fees (a combination of the advisory fee and the administration fee, if any) charged to other clients, such as institutional clients and open-end funds, under similar investment mandates, as applicable; (d) the impact of economies of scale; (e) a summary of aggregate amounts paid by each Fund to BlackRock and (f) if applicable, a comparison of management fees to similar BlackRock closed-end funds, as classified by Lipper.

At an in-person meeting held on April 14, 2011, the Boards reviewed materials relating to their consideration of the Agreements. As a result of the discussions that occurred during the April 14, 2011 meeting, and as a culmination of the Boards year-long deliberative process, the Boards presented BlackRock with questions and requests for additional information. BlackRock responded to these requests with additional written information in advance of the May 1213, 2011 Board meeting.

At an in-person meeting held on May 1213, 2011, each Board, including the Independent Board Members, unanimously approved the continuation of the Advisory Agreement between the Manager and its Fund and the Sub-Advisory Agreement between the Manager and the Sub-Advisor with respect to its Fund, each for a one-year term ending June 30, 2012. In approving the continuation of the Agreements, the Boards considered: (a) the nature, extent and quality of the services provided by BlackRock; (b) the investment performance of the Funds and BlackRock; (c) the advisory fee and the cost of the services and profits to be realized by BlackRock and its affiliates from their relationship with the Funds; (d) economies of scale; (e) fall-out benefits to BlackRock as a result of its relationship with the Funds; and (f) other factors deemed relevant by the Board Members.

The Boards also considered other matters they deemed important to the approval process, such as services related to the valuation and pricing of Fund portfolio holdings, direct and indirect benefits to BlackRock and its affiliates and significant shareholders from their relationship with Funds 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 Provided by BlackRock: The Boards, including the Independent Board Members, reviewed the nature, extent and quality of services provided by BlackRock, including the investment advisory services and the resulting performance of the Funds. Throughout the year, the Boards compared Fund performance to the performance of a comparable group of closed-end funds and/or the performance of a 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 Funds portfolio management team discussing Fund performance and the Funds investment objective, strategies and outlook.

The Boards considered, among other factors, the number, education and experience of BlackRocks investment personnel generally and their Funds portfolio management teams, investments by portfolio managers in the funds they manage, BlackRocks portfolio trading capabilities, BlackRocks use of technology, BlackRocks commitment to compliance, BlackRocks credit analysis capabilities, BlackRocks risk analysis capabilities and BlackRocks approach to training and retaining portfolio managers and other research, advisory and management personnel. The Boards engaged in a review of BlackRocks compensation structure with respect to their Funds portfolio management teams and BlackRocks ability to attract and retain high-quality talent and create performance incentives.

In addition to advisory services, the Boards considered the quality of the administrative and non-investment advisory services provided to the Funds. 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 J68assuring compliance with applicable laws and regulations.

66 ANNUAL REPORT JULY 31, 2011

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

B. The Investment Performance of the Fund and BlackRock: The Boards, including the Independent Board Members, also reviewed and considered the performance history of their Funds. In preparation for the April 14, 2011 meeting, the Boards worked with BlackRock and Lipper to develop a template for, and was 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 their review, each Board received and reviewed information regarding the investment performance of its Fund as compared to funds in that Funds applicable Lipper category and, with respect to BFZ, RFA, BBF, RNY and BNY, a customized peer group selected by BlackRock. The Boards were provided with a description of the methodology used by Lipper to select peer funds. The Boards and each Boards Performance Oversight Committee regularly review, and meet with Fund management to discuss, the performance of the Funds throughout the year.

The Board of BFO noted that BFO performed below the median of its Lipper Performance Composite in the three- and five-year periods reported, but that BFO performed at or above the median of its Lipper Performance Composite in the one-year period reported. The Board of BFO and BlackRock reviewed and discussed the reasons for BFOs underperformance during the three- and five-year periods compared with its Peers. The Board of BFO was informed that, among other things, BFO has a targeted maturity, and as such is managed to achieve the specific maturity goal.

The Boards of BFZ, RNY and BNY noted that, in general, each of BFZ, RNY and BNY performed better than its respective Peers in that each of BFZs, RNYs and BNYs performance was at or above the median of its respective Customized Lipper Peer Group Composite in each of the one-, three- and five-year periods reported.

The Board of RFA noted that RFA performed below the median of its Customized Lipper Peer Group Composite in the three- and five-year periods reported, but that RFA performed at or above the median of its Customized Lipper Peer Group Composite in the one-year period reported. The Board of RFA and BlackRock reviewed and discussed the reasons for RFAs underper-formance during the three- and five-year periods compared with its Peers. The Board was informed that, among other things, performance was hindered by exposure to Florida insured bonds backed by monoline insurers.

The Board of RNJ noted that RNJ performed below the median of its Lipper Performance Composite in the three- and five-year periods reported, but that RNJ performed at or above the median of its Lipper Performance Composite in the one-year period reported. The Board of RNJ and BlackRock reviewed and discussed the reasons for RNJs underperformance during the three- and five-year periods compared with its Peers. The Board of RNJ was informed that, among other things, that over the three-year period performance was hindered by high yield holdings.

The Boards of RFA and RNJ and BlackRock discussed BlackRocks strategy for improving each Funds performance and BlackRocks commitment to providing the resources necessary to assist each Funds portfolio managers and to improve each Funds performance, in part through the repositioning of each Funds respective portfolio.

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 Composite in each of the one-, three- and five-year periods reported.

The Board of BBF noted that, in general, BBF performed better than its Peers in that BBFs performance was at or above the median of its Customized Lipper Peer Group Composite in two of the one-, three- and five-year periods reported.

The Boards noted that BlackRock has made changes to the organization of the overall fixed income group management structure designed to result in a strengthened leadership team.

C. Consideration of the Advisory/Management Fees and the Cost of the Services and Profits to be Realized by BlackRock and its Affiliates from their Relationship with the Fund: Each Board, including the Independent Board Members, reviewed its Funds contractual management fee ratio compared with the other funds in its Lipper category. It also compared the Funds total expense ratio, as well as actual management fee ratio, to those of other funds in its Lipper category. The Boards 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, 2010 compared to available aggregate profitability data provided for the years ended December 31, 2009, and December 31, 2008. 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 and expense reimbursements by the Manager, the types of funds managed, expense allocations and business mix, and the difficulty of comparing profitability as a result of those factors.

The Boards noted that, in general, individual fund or product line profitability of other advisors is not publicly available. The Boards considered BlackRocks overall operating margin, in general, compared to the operating margin for leading investment management firms whose operations include advising closed-end funds, among other product types. That data indicates that operating margins for BlackRock, in general and with respect to its registered funds, are generally 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. That third party data indicates that larger asset bases do not, in themselves, translate to higher profit margins.

ANNUAL REPORT JULY 31, 2011 67

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

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 of the Funds and the other funds advised by BlackRock and its affiliates. As part of its 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.

The Board of each of BFO, BFZ, RFA, BBF, RNJ, RNY and BNY noted that its Funds contractual management fee ratio (a combination of the advisory fee and the administration fee, if any) was lower than or equal to the median contractual management fee ratio paid by such Funds Peers, in each case before taking into account any expense reimbursements or fee waivers.

The Board of BNJ noted that BNJs contractual management fee ratio (a combination of the advisory fee and the administration fee, if any) was above the median contractual management fee ratio paid by the BNJs Peers, in each case before taking into account any expense reimbursements or fee waivers. The Board of BNJ also noted, however, that the BNJs contractual management fee ratio was reasonable relative to the median contractual management fee ratio paid by the BNJs peers.

D. Economies of Scale: Each Board, including the Independent Board Members, considered the extent to which economies of scale might be realized as the assets of its Fund increase. Each Board also considered the extent to which its Fund benefits from such economies and whether there should be changes in the advisory fee rate or structure in order to enable the Fund to participate in these economies of scale, for example through the use of breakpoints in the advisory fee based upon the asset level of the Fund. Based on the ad hoc Joint Product Pricing Committees and the Boards review and consideration of this issue, the Boards concluded that closed-end funds are typically priced at scale at a funds inception; therefore, the implementation of breakpoints was not necessary.

The Boards noted that most closed-end funds do not have fund level breakpoints because closed-end funds generally do not experience substantial growth after the initial public offering. The Boards noted that only one closed-end fund in the Fund Complex has breakpoints in its advisory fee structure.

E. Other Factors Deemed Relevant by the Board Members: The Boards, including the Independent Board Members, also took into account other ancillary or fall-out benefits that BlackRock or its affiliates and significant shareholders may derive from their respective relationships with the Funds, both tangible and intangible, such as BlackRocks ability to leverage its investment professionals who manage other portfolios and risk management personnel, an increase in BlackRocks profile in the investment advisory community, and the engagement of BlackRocks affiliates as service providers to the Funds, including for securities lending services. The Boards also considered BlackRocks overall operations and its efforts to expand the scale of, and improve the quality of, its operations. The Boards also noted that BlackRock may use and benefit from third party research obtained by soft dollars generated by certain registered fund transactions to assist in managing all or a number of its other client accounts. The Boards further noted that BlackRocks funds may invest in affiliated ETFs without any offset against the management fees payable by the funds to BlackRock.

In connection with its 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.

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

Conclusion

Each Board, including the Independent Board Members, unanimously approved the continuation of the Advisory Agreement between the Manager and its Fund for a one-year term ending June 30, 2012 and the Sub-Advisory Agreement between the Manager and the Sub-Advisor, with respect to its Fund, for a one-year term ending June 30, 2012. As part of its approval, the Boards considered the detailed review of BlackRocks fee structure, as it applies to the Funds, conducted by the ad hoc Joint Product Pricing Committee. Based upon their evaluations of all of the aforementioned factors in their totality, the Boards, including the Independent Board Members, were satisfied that the terms of the Agreements were fair and reasonable and in the best interest of the Funds and their shareholders. In arriving at their decision to approve the Agreements, the Boards 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 these determinations. The contractual fee arrangements for the Funds reflect the results of several years of review by the Board Members and predecessor Board Members, and discussions between such Board Members (and predecessor Board Members) and BlackRock. As a result, the Board Members conclusions may be based in part on their consideration of these arrangements in prior years.

68 ANNUAL REPORT JULY 31, 2011

A utomatic Dividend Reinvestment Plan

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

After BFZ, RFA, BBF, RNJ, BNJ, RNY and BNY declares a dividend or determines to make a capital gain distribution, the Reinvestment Plan Agent will acquire shares for the participants account, depending upon the following circumstances, either (i) through receipt of unissued but authorized shares from the Trust (newly issued shares) or (ii) by purchase of outstanding shares on the open market or on the Trusts primary exchange. If, on the dividend payment date, the NAV is equal to or less than the market price per share plus estimated brokerage commissions (such condition often referred to as a market premium), the Reinvestment Plan Agent will invest the dividend amount in newly issued shares on behalf of the participants. The number of newly issued shares to be credited to each participants account will be determined by dividing the dollar amount of the dividend by the NAV on the date the shares are issued. However, if the NAV is less than 95% of the market price on the dividend payment date, the dollar amount of the dividend will be divided by 95% of the market price on the dividend payment date. If, on the dividend payment date, the NAV is greater than the market value per share plus estimated brokerage commissions (such condition often referred to as a market discount), the Reinvestment Plan Agent will invest the dividend amount in shares acquired on behalf of the participants in open market purchases. If the Reinvestment Plan Agent is unable to invest the full dividend amount in open market purchases, or if the market discount shifts to a market premium during the purchase period, the Reinvestment Plan Agent will invest any un-invested portion in newly issued shares.

After BFO declares a dividend or determines to make a capital gain distribution, the Reinvestment Plan Agent will acquire shares for the participants account by the purchase of outstanding shares on the open market or on BFOs primary exchange. BFO will not issue any new shares under the Reinvestment Plan.

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

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

ANNUAL REPORT JULY 31, 2011 69

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 Registered Investment Companies (RICs) Consisting of Investment Portfolios (Portfolios) Overseen | Public Directorships |
| --- | --- | --- | --- | --- | --- |
| Independent
Trustees 1 | | | | | |
| Richard E. Cavanagh 55 East 52nd
Street New York, NY 10055 1946 | Chairman of the Board and Trustee | Since 1994 | Trustee, Aircraft Finance Trust from 1999 to 2009;
Director, The Guardian Life Insurance Company of America since 1998; Trustee,
Educational Testing Service from 1997 to 2009 and Chairman thereof from 2005
to 2009; Senior Advisor, The Fremont Group since 2008 and Director thereof
since 1996; Adjunct Lecturer, Harvard University since 2007; President and
Chief Executive Officer, The Conference Board, Inc. (global business research
organization) from 1995 to 2007. | 95 RICs consisting of 95 Portfolios | Arch Chemical (chemical and allied products) |
| Karen P. Robards 55 East 52nd
Street New York, NY 10055 1950 | Vice Chairperson of the Board, Chairperson 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 Develop- ment (a not-for-profit organization) since 1987;
Director of Care Invest- ment Trust, Inc. (health care real estate investment
trust) from 2007 to 2010; Director of Enable Medical Corp. from 1996 to 2005;
Investment Banker at Morgan Stanley from 1976 to 1987. | 95 RICs consisting of 95 Portfolios | AtriCure, Inc. (medical devices) |
| Michael J. Castellano 55 East 52nd
Street New York, NY 10055 1946 | Trustee and Member of the Audit Committee | Since 2011 | Managing Director and Chief Financial Officer of
Lazard Group LLC from 2001 to 2011; Chief Financial Officer of Lazard Ltd
from 2004 to 2011; Director, Support Our Aging Religions (non-profit) since
2009; Director, National Advisory Board of Church Management at Villanova
University since 2010. | 95 RICs consisting of 95 Portfolios | None |
| Frank J. Fabozzi 55 East 52nd
Street New York, NY 10055 1948 | Trustee and Member of the Audit Committee | Since 1988 | Editor of and Consultant for The Journal of Portfolio
Management since 1986; Professor of Finance, EDHEC Business School since
2011; Professor in the Practice of Finance and Becton Fellow, Yale University
School of Management from 2006 to 2011; Adjunct Professor of Finance and
Becton Fellow, Yale University from 1994 to 2006. | 95 RICs consisting of 95 Portfolios | None |
| Kathleen F. Feldstein 55 East 52nd
Street New York, NY 10055 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. from 2005 to 2009; 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; Director, Catholic Charities of Boston since
2009. | 95 RICs consisting of 95 Portfolios | The McClatchy Company (publishing); BellSouth
(telecom- munications); Knight Ridder (publishing) |
| James T. Flynn 55 East 52nd
Street New York, NY 10055 1939 | Trustee and Member of the Audit Committee | Since 2007 | Chief Financial Officer of JPMorgan & Co., Inc.
from 1990 to 1995. | 95 RICs consisting of 95 Portfolios | None |
| Jerrold B. Harris 55 East 52nd
Street New York, NY 10055 1942 | Trustee | Since 2007 | Trustee, Ursinus College since 2000; Director,
Troemner LLC (scientific equipment) since 2000; Director of Delta Waterfowl
Foundation since 2001; President and Chief Executive Officer, VWR Scientific
Products Corporation from 1990 to 1999. | 95 RICs consisting of 95 Portfolios | BlackRock Kelso Capital Corp. (business develop- ment
company) |

70 ANNUAL REPORT JULY 31, 2011

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 Registered Investment Companies (RICs) Consisting of Investment Portfolios (Portfolios) Overseen | Public Directorships |
| --- | --- | --- | --- | --- | --- |
| Independent
Trustees 1 (concluded) | | | | | |
| R. Glenn Hubbard 55 East 52nd
Street New York, NY 10055 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; Chairman, US Council of Economic
Advisers under the President of the United States from 2001 to 2003;
Chairman, Economic Policy Committee of the OECD from 2001 to 2003. | 95 RICs consisting of 95 Portfolios | ADP (data and information services); KKR Financial
Corporation (finance); Metropolitan Life Insurance Company (insurance) |
| W. Carl Kester 55 East 52nd
Street New York, NY 10055 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
from 2006 to 2010; Chairman of the Finance Department, 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. | 95 RICs consisting of 95 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 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: Richard E.
Cavanagh, 1994; 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 | | | | | |
| Paul L. Audet 55 East 52nd
Street New York, NY 10055 1953 | Trustee | Since 2011 | Senior Managing Director, BlackRock, Inc., and Head
of BlackRocks Real Estate business from 2008 to 2011; Member of BlackRocks
Global Oper- ating and Corporate Risk Management Committees and of the
BlackRock Alternative Investors Executive Committee and Investment Committee
for the Private Equity Fund of Funds business since 2008; Head of BlackRocks
Global Cash Management business from 2005 to 2010; Acting Chief Financial
Officer of BlackRock from 2007 to 2008; Chief Financial Officer of BlackRock
from 1998 to 2005; Senior Vice President of Finance at PNC Bank Corp. and
Chief Financial Officer of the Investment Management and Mutual Fund
Processing businesses from 1996 to 1998 and Head of PNCs Mergers &
Acquisitions unit from 1992 to 1998; Member of PNCs Corpo- rate
Asset-Liability Committee and Marketing Committees from 1992 to 1998; Chief
Financial Officer of PNCs eastern operations from 1991 to 1992; Senior Vice
President of First Fidelity Bancorporation, responsible for the Corporate
Finance, Asset-Liability Committee, and Mergers & Acquisitions functions
from 1986 to 1991. | 95 RICs consisting of 95 Portfolios | None |
| Henry Gabbay 55 East 52nd Street New York, NY 10055 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. | 162 RICs consisting of 293 Portfolios | None |
| | 3 | Mr. Audet is an interested person, as defined in
the 1940 Act, 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 The PNC Financial Services Group, Inc.
securities. Trustees serve until their resignation, removal or death, or
until December 31 of the year in which they turn 72. | | | |

ANNUAL REPORT JULY 31, 2011 71

Officers and Trustees (concluded)

| Name, Address and Year of Birth | Position(s) Held with Trusts | | Principal Occupation(s) During Past
Five Years |
| --- | --- | --- | --- |
| Trusts
Officers 1 | | | |
| John M. Perlowski 55 East 52nd
Street New York, NY 10055 1964 | President and Chief Executive Officer | Since 2011 | Managing Director of BlackRock, Inc. since 2009;
Global Head of BlackRock Fund Administration since 2009; Managing Director
and Chief Operating Officer of the Global Product Group at Goldman Sachs
Asset Management, L.P. from 2003 to 2009; Treasurer of Goldman Sachs Mutual
Funds from 2003 to 2009 and Senior Vice President thereof from 2007 to 2009;
Director of Goldman Sachs Offshore Funds from 2002 to 2009; Director of
Family Resource Network (charitable foundation) since 2009. |
| Anne Ackerley 55 East 52nd
Street New York, NY 10055 1962 | Vice President | Since 2007 2 | Managing Director of BlackRock, Inc. since 2000;
President and Chief Executive Officer of the BlackRock-advised funds from
2009 to 2011; Vice President of the BlackRock-advised funds from 2007 to
2009; Chief Operating Officer of BlackRocks Global Client Group since 2009;
Chief Operating Officer of BlackRocks U.S. Retail Group from 2006 to 2009;
Head of BlackRocks Mutual Fund Group from 2000 to 2006. |
| Brendan Kyne 55 East 52nd
Street New York, NY 10055 1977 | Vice President | Since 2009 | Managing Director of BlackRock, Inc. since 2010;
Director of BlackRock, Inc. from 2008 to 2009; Head of Product Development
and Management for BlackRocks US Retail Group since 2009, Co-head thereof
from 2007 to 2009; Vice President of BlackRock, Inc. from 2005 to 2008. |
| Neal Andrews 55 East 52nd
Street New York, NY 10055 1966 | Chief Financial Officer | Since 2007 | Managing Director of BlackRock, Inc. since 2006;
Senior Vice President and Line of Business Head of Fund Accounting and
Administration at PNC Global Investment Servicing (US) Inc. from 1992 to
2006. |
| Jay Fife 55 East 52nd
Street New York, NY 10055 1970 | Treasurer | Since 2007 | Managing Director of BlackRock, Inc. since 2007 and
Director of BlackRock, Inc. in 2006; Assistant Treasurer of the MLIM and Fund
Asset Management, L.P.-advised funds from 2005 to 2006; Director of MLIM Fund
Services Group from 2001 to 2006. |
| Brian Kindelan 55 East 52nd
Street New York, NY 10055 1959 | Chief Compliance Officer and Anti-Money Laundering Officer | Since 2007 | Chief Compliance Officer of the BlackRock-advised
Funds since 2007; Managing Director and Senior Counsel of BlackRock, Inc.
since 2005. |
| Ira P. Shapiro 55 East 52nd
Street New York, NY 10055 1963 | Secretary | Since 2010 | Managing Director of BlackRock, Inc. since 2009;
Managing Director and Associate General Counsel of Barclays Global Investors
from 2008 to 2009 and Principal thereof from 2004 to 2008. |
| | 1 | Officers of the Trusts serve at the pleasure of the
Board of Trustees. | |
| | 2 | Ms. Ackerley was President and Chief Executive Officer
from 2009 to 2011. | |

| Investment
Advisor |
| --- |
| BlackRock Advisors, LLC |
| Wilmington, DE 19809 |
| Sub-Advisor |
| BlackRock Financial Management, Inc. |
| New York, NY 10055 |
| Custodian |
| State Street Bank and Trust Company |
| Boston, MA 02111 |
| Transfer
Agent |
| Common
Shares: |
| Computershare Trust
Company, N.A. |
| Providence, RI 02940 |
| Auction
Agent |
| AMPS: |
| BNY Mellon Shareowner
Services |
| Jersey City, NJ 07310 |
| Accounting
Agent |
| State Street Bank and Trust Company |
| Boston, MA 02116 |
| Independent Registered Public Accounting Firm |
| Deloitte & Touche LLP |
| Boston, MA 02116 |
| Legal
Counsel |
| Skadden, Arps, Slate, Meagher & Flom LLP |
| New York, NY 10036 |
| Address of
the Trusts |
| 100 Bellevue Parkway |
| Wilmington, DE 19809 |

| Effective April 14, 2011,
Michael J. Castellano became Trustee of the Trusts and Member of the Audit
Committee. |
| --- |
| Effective July 28, 2011,
Richard S. Davis resigned as Trustee of the Trusts, and Paul L. Audet became
Trustee of the Trusts. |

72 ANNUAL REPORT JULY 31, 2011

| A dditional
Information |
| --- |
| Proxy Results |

The Annual Meeting of Shareholders was held on July 28, 2011 for shareholders of record on May 31, 2011 to elect trustee nominees for each Trust. There were no broker non-votes with regard to any of the Trusts.

Approved the Class I Trustees as follows:

| Votes
For | Votes Withheld | Abstain | Votes
For | Votes Withheld | Abstain | Votes For | Votes Withheld | Abstain | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| BFZ | 26,719,826 | 448,117 | 0 | 26,701,972 | 465,971 | 0 | 26,582,545 | 585,398 | 0 |
| BFO | 4,816,716 | 389,250 | 0 | 4,810,951 | 395,015 | 0 | 4,816,451 | 389,515 | 0 |
| RFA | 1,044,132 | 14,872 | 0 | 1,044,191 | 14,813 | 0 | 1,044,191 | 14,813 | 0 |
| BBF | 5,880,103 | 160,207 | 0 | 5,880,103 | 160,207 | 0 | 5,877,828 | 162,482 | 0 |
| RNJ | 854,649 | 80,135 | 0 | 854,649 | 80,135 | 0 | 852,459 | 82,325 | 0 |
| BNJ | 6,477,765 | 332,957 | 0 | 6,476,512 | 334,210 | 0 | 6,500,276 | 310,446 | 0 |
| RNY | 1,174,460 | 53,744 | 0 | 1,179,793 | 48,411 | 0 | 1,179,793 | 48,411 | 0 |
| BNY | 11,106,001 | 402,645 | 0 | 11,268,947 | 239,699 | 0 | 11,242,597 | 266,049 | 0 |
| W. Carl
Kester 1 | | | | | | | | | |
| Votes
For | Votes Withheld | Abstain | | | | | | | |
| BFZ | 4,148 | 65 | 0 | | | | | | |
| BFO | 1,288 | 4 | 0 | | | | | | |
| RFA | 117 | 0 | 0 | | | | | | |
| BBF | 1,366 | 0 | 0 | | | | | | |
| RNJ | 236 | 0 | 0 | | | | | | |
| BNJ | 1,533 | 772 | 0 | | | | | | |
| RNY | 324 | 0 | 0 | | | | | | |
| BNY | 2,922 | 33 | 0 | | | | | | |

1 Voted on by holders of Preferred Shares only.

For the Trusts listed above, Trustees whose term of office continued after the Annual Meeting of Shareholders because they were not up for election are Richard E. Cavanagh, Frank J. Fabozzi, Kathleen F. Feldstein, James T. Flynn, Henry Gabbay, Jerrold B. Harris and Karen P. Robards.

ANNUAL REPORT JULY 31, 2011 73

| Additional Information
(continued) |
| --- |
| Dividend Policy |

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

General Information

On July 29, 2010, the Manager announced that a shareholder derivative complaint was filed on July 27, 2010 in the Supreme Court of the State of New York, New York County with respect to BFZ and BNJ, which had previously received a demand letter from a law firm on behalf of each trusts common shareholders. The complaint was filed against the Manager, BlackRock, BFZ, BNJ and certain of the directors, officers and portfolio managers (collectively, the BlackRock Parties) in connection with the redemption of auction-market preferred shares, auction rate preferred shares, auction preferred shares and auction rate securities (collectively, AMPS). The complaint alleges, among other things, that the BlackRock Parties breached their fiduciary duties to the common shareholders of BFZ and BNJ (the Shareholders) by redeeming AMPS at their liquidation preference and alleges that such redemptions caused losses to the Shareholders. The plaintiffs are seeking monetary damages for the alleged losses suffered and to enjoin BFZ and BNJ from future redemptions of AMPS at their liquidation preference. The BlackRock Parties believe that the claims asserted in the complaint are without merit and intend to vigorously defend themselves in the litigation.

On March 29, 2011, the Manager announced that BBF received a demand letter from a law firm on behalf of BBFs common shareholders. The demand letter alleges that the Manager and BBFs officers and Board of Trustees (the Board) breached their fiduciary duties by redeeming at par certain of BBFs AMPS, and demanded that the Board take action to remedy those alleged breaches. A committee consisting of the Independent Directors, with the assistance of their independent counsel, reviewed these demands. Based on the committees investigation and unanimous recommendation, the Board rejected these demands as inconsistent with the best interests of BBF and its shareholders.

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 the Trusts Statement of Additional Information may have become outdated.

During the period there were no material changes in the Trusts investment objectives or policies or to the Trusts charters or by-laws that would delay or prevent a change of control of the Trusts 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 portfolios.

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 in 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 is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please call (800) 441-7762.

74 ANNUAL REPORT JULY 31, 2011

| Additional Information
(concluded) |
| --- |
| General Information (concluded) |

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, D.C. Information on how to access documents on the SECs website without charge may be obtained by calling (800) SEC-0330. 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 (800) 441-7762; (2) at http://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 http://www.blackrock.com or by calling (800) 441-7762 and (2) on the SECs website at http://www.sec.gov.

Availability of Trust Updates BlackRock will update performance and certain other data for the Trusts on a monthly basis on its website in the Closed-end Funds section of http://www.blackrock.com. Investors and others are advised to periodically check the website for updated performance information and the release of other material information about the Trusts.

Fund Certification

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

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, 2011 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 AMPS, currently set at the maximum reset rate as a result of failed auctions, may reduce the Common Shares yield. Statements and other information herein are as dated and are subject to change.

CEF-BK8-07/11

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 registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, 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 registrant’s board of directors (the “board of directors”), has determined that (i) the registrant has the following audit committee financial experts serving on its audit committee and (ii) each audit committee financial expert is independent: |
| | Frank J. Fabozzi |
| | James T. Flynn |
| | W. Carl Kester |
| | Karen P. Robards |
| | The registrant’s 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. Kester’s 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 registrant’s 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. The designation or identification of a person as an audit committee financial expert does not affect the duties, obligations, or liability of any other member of the audit committee or board of
directors. |

Item 4 –
The following table presents fees billed by Deloitte & Touche LLP (“D&T”) in each of the last two fiscal years for the services rendered to the Fund:

Entity Name	(a) Audit Fees — Current Fiscal Year End	Previous Fiscal Year End	(b) Audit-Related Fees 1 — Current Fiscal Year End	Previous Fiscal Year End	(c) Tax Fees 2 — Current Fiscal Year End	Previous Fiscal Year End	(d) All Other Fees 3 — Current Fiscal Year End	Previous Fiscal Year End
BlackRock New York Municipal Income Trust	$29,200	$28,200	$3,500	$3,500	$11,400	$6,100	$0	$0

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

	Current Fiscal Year End	Previous Fiscal Year End
(b) Audit-Related Fees 1	$0	$0
(c) Tax Fees 2	$0	$0
(d) All Other Fees 3	$3,030,000	$2,950,000

1 The nature of the services includes 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 includes tax compliance, tax advice and tax planning.

3 The nature of the services includes a review of the Fund’s compliance procedures and attestation thereto.

| (e)(1) Audit Committee Pre-Approval Policies and Procedures: |
| --- |
| The Committee has adopted policies and procedures with regard to the pre-approval of services. Audit, audit-related and tax compliance services provided to the registrant on an annual basis require specific pre-approval by the Committee. The Committee also must approve other non-audit services provided to the registrant and those non-audit services provided to the Investment Adviser and Fund
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 SEC’s auditor independence rules and b) routine and recurring services that will not impair the independence of the independent accountants may be approved by the Committee without consideration on a specific case-by-case basis (“general pre-approval”). The term
of any general pre-approval is 12 months from the date of the pre-approval, unless the Committee provides for a different period. Tax or other non-audit services provided to the registrant which have a direct impact on the operations or financial reporting of the registrant will only be deemed pre-approved provided that any individual project does not exceed $10,000 attributable to the registrant or $50,000 per project. For this purpose, multiple projects will be
aggregated to determine if they exceed the previously mentioned cost levels. |

| Any proposed services exceeding the pre-approved cost levels will require specific pre-approval by the Committee, as will any other services not subject to general pre-approval (e.g., unanticipated but permissible services). The Committee is informed of each service approved subject to general pre-approval at the next regularly scheduled in-person board meeting. At this
meeting, an analysis of such services is presented to the Committee for ratification. The Committee may delegate to the Committee Chairman the authority to approve the provision of and fees for any specific engagement of permitted non-audit services, including services exceeding pre-approved cost levels. |
| --- |
| (e)(2) None of the services described in each of Items 4(b) through (d) were approved by the Committee pursuant to the de minimis exception in paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X. |
| (f) Not Applicable |
| (g) The aggregate non-audit fees paid to the accountant for services rendered by the accountant to the registrant, the Investment Adviser and the Fund Service Providers were: |

Entity Name	Current Fiscal Year End	Previous Fiscal Year End
BlackRock New York Municipal Income Trust	$14,900	$20,377

	Additionally, SAS No. 70 fees for the current and previous fiscal years of $3,030,000 and $2,950,000, respectively, were billed by D&T to the Investment Adviser.
	(h) The Committee has considered and determined that the provision of non-audit services that were rendered to the Investment Adviser, and the Fund Service Providers that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.
Item 5 –	Audit Committee of Listed Registrants

(a)	The following individuals are members of the registrant’s separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(58)(A)):
	Michael Castellano
	Frank J. Fabozzi
	James T. Flynn
	W. Carl Kester
	Karen P. Robards
(b)	Not Applicable

Item 6 –
(a) The registrant’s 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’s portfolio securities to the Investment Adviser pursuant to the Investment Adviser’s 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 Fund’s 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 Adviser’s 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 Adviser’s 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 Adviser’s Portfolio Management Group and/or the Investment Adviser’s Legal and Compliance Department and concluding that the vote cast is in its client’s best interest notwithstanding the conflict. A copy of
the Fund’s 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 SEC’s website at http://www.sec.gov . |
| --- | --- |
| Item 8 – | Portfolio Managers of Closed-End Management Investment Companies – as of July 31, 2011. |

(a)(1) The registrant 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 O’Connor, Managing Director at BlackRock. Each is a member of BlackRock’s municipal tax-exempt management group. Each is jointly responsible for the day-to-day management of the registrant’s portfolio, which includes setting the registrant’s overall investment strategy, overseeing the management of the registrant and/or selection of its investments. Messrs. Browse, Jaeckel and O’Connor have been members of the registrant’s portfolio management team since 2006, 2006 and 2006, respectively.

Portfolio Manager	Biography
Timothy Browse	Director of BlackRock since 2008; Vice President of BlackRock from 2006 to 2007; Vice President of Merrill Lynch Investment Managers, L.P. (“MLIM”) from 2004 to 2006.
Theodore R. Jaeckel, Jr.	Managing Director at BlackRock since 2006; Managing Director of MLIM from 2005 to 2006; Director of MLIM from 1997 to 2005.
Walter O’Connor	Managing Director of BlackRock since 2006; Managing Director of MLIM from 2003 to 2006; Director of MLIM from 1998 to 2003.

(a)(2) As of July 31, 2011:

(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
Timothy Browse	13	0	0	0	0	0
	$3.01 Billion	$0	$0	$0	$0	$0
Theodore R. Jaeckel, Jr.	65	0	0	0	0	0
	$20.38 Billion	$0	$0	$0	$0	$0
Walter O’Connor	64	0	0	0	0	0
	$19.21 Billion	$0	$0	$0	$0	$0

(iv) Potential Material Conflicts of Interest

BlackRock, Inc. 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, Inc. 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, Inc. furnishes investment management and advisory services to numerous clients in addition to the Fund, and BlackRock, Inc. 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, Inc., or in which portfolio managers have a personal interest in the receipt of such fees), which may be the same as or different from those made to the Fund. In addition, BlackRock, Inc., its affiliates and significant shareholders and any officer, director, shareholder or employee may or may not have an interest in the securities whose purchase and sale BlackRock, Inc. recommends to the Fund. BlackRock, Inc., or any of its affiliates or significant shareholders, or any officer, director, shareholder, employee or any member of their families may take different actions than those recommended to the Fund by BlackRock, Inc. with respect to the same securities. Moreover, BlackRock, Inc. may refrain from rendering any advice or services concerning securities of companies of which any of BlackRock, Inc.’s (or its affiliates’ or significant shareholders’) officers, directors or employees are directors or officers, or companies as to which BlackRock, Inc. or any of its affiliates or significant shareholders or the officers, directors and employees of any of them has any substantial economic interest or possesses material non-public information. Certain portfolio managers also may manage accounts whose investment strategies may at times be opposed to the strategy utilized for a fund. It should also be noted that a portfolio manager may be managing hedge fund and/or long only accounts, or may be part of a team managing hedge fund and/or long only accounts, subject to incentive fees. Such portfolio managers may therefore be entitled to receive a portion of any incentive fees earned on such accounts. 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, Inc. owes a duty of loyalty to its clients and must treat each client fairly. When BlackRock, Inc. purchases or sells securities for more than one account, the trades must be allocated in a manner consistent with its fiduciary duties. BlackRock, Inc. attempts to allocate investments in a fair and equitable manner among client accounts, with no account receiving preferential treatment. To this end, BlackRock, Inc. has adopted policies that are intended to ensure reasonable efficiency in client transactions and provide BlackRock, Inc. with sufficient flexibility to allocate investments in a manner that is consistent with the particular investment discipline and client base, as appropriate.

(a)(3) As of July 31, 2011:

| Portfolio Manager Compensation Overview |
| --- |
| BlackRock’s financial arrangements with its portfolio managers, its competitive compensation and its career path emphasis at all levels reflect the value senior management places on key resources. Compensation may include a variety of components and may vary from year to year based on a number of factors. The principal components of compensation include a base salary, a performance-based
discretionary bonus, participation in various benefits programs and one or more of the incentive compensation programs established by BlackRock. |
| Base compensation. Generally, portfolio managers receive base compensation based on their position with the BlackRock, Inc. |
| Discretionary Incentive Compensation. Discretionary incentive compensation is a function of several components: the performance of BlackRock, Inc., the performance of the portfolio manager’s group within BlackRock, the investment performance, including risk-adjusted returns, of the firm’s assets under management or supervision by
that portfolio manager relative to predetermined benchmarks, and the individual’s performance and contribution to the overall performance of these portfolios and BlackRock. In most cases, these benchmarks are the same as the benchmark or benchmarks against which the performance of the Fund or other accounts managed by the portfolio managers are measured. BlackRock’s 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 include the following: |

Portfolio Manager	Benchmarks Applicable to Each Manager
Theodore R. Jaeckel, Jr. Walter O’Connor	A combination of market-based indices (e.g., Barclays Capital Municipal Bond Index), certain customized indices and certain fund industry peer groups.
Timothy T. Browse	A combination of the MSCI EAFE Index and other relevant peer groups.

Among other things, BlackRock’s Chief Investment Officers make a subjective determination with respect to each portfolio manager’s compensation based on the performance of the Funds and other accounts managed by each portfolio manager relative to the various benchmarks.
Performance of fixed income funds is measured on both a pre-tax and after-tax basis over various time periods including 1-, 3- and 5-year periods, as applicable. With respect to the performance of the other listed Index and Multi-Asset Funds, performance is measured on, among other things, a pre-tax basis over various time periods including 1-, 3- and 5-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. For some portfolio managers, discretionary incentive compensation is also distributed in deferred cash awards that notionally track the returns of select BlackRock investment products they manage and that vest
ratably over a number of years. The BlackRock, Inc. restricted stock units, upon vesting, 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 BlackRock’s ability to sustain and improve its
performance over future periods. Providing a portion of annual bonuses in deferred cash awards that notionally track the BlackRock investment products they manage provides direct alignment with investment product results. |
| Long-Term Incentive Plan Awards — From time to time long-term incentive equity awards are granted to certain key employees to aid in retention, align their interests with long-term shareholder interests and motivate performance. Equity awards are generally granted in the form of BlackRock, Inc. restricted stock units that, once vested, settle in
BlackRock, Inc. common stock. Messrs. Jaeckel and O’Connor have each received long-term incentive awards. |
| 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 firm’s investment products. Each participant in the deferred compensation program is permitted to allocate his deferred amounts among various BlackRock investment
options. Messrs. Browse, Jaeckel and O’Connor 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, Inc. employees are eligible to participate, including a
401(k) plan, the BlackRock Retirement Savings Plan (RSP), and the BlackRock Employee Stock Purchase Plan (ESPP). The employer contribution components of the RSP include a company match equal to 50% of the first 8% of eligible pay contributed to the plan capped at $5,000 per year, and a company retirement contribution equal to 3-5% of eligible compensation. The RSP offers a range of investment options, including registered investment companies and collective
investment funds managed by the firm. BlackRock contributions follow the investment direction set by participants for their own contributions or, absent participant investment direction, are invested into an index target date fund that corresponds to, or is closest to, the year in which the participant attains age 65. The ESPP allows for investment in BlackRock, Inc. common stock at a 5% discount on the fair market value of the stock on the purchase date.
Annual participation in the ESPP is limited to the purchase of 1,000 shares or a dollar value of $25,000. Each portfolio manager is eligible to participate in these plans. |

(a)(4) Beneficial Ownership of Securities – As of July 31, 2011.

Portfolio Manager	Dollar Range of Equity Securities of the Fund Beneficially Owned
Timothy Browse	None
Theodore R. Jaeckel, Jr.	None
Walter O’Connor	None

(b) Not Applicable

Item 9 –	Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not Applicable due to no such purchases during the period covered by this report.
Item 10 –	Submission of Matters to a Vote of Security Holders – There have been no material changes to these procedures.
Item 11 –	Controls and Procedures
	(a) – The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing
of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended.
	(b) – There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial
reporting.
Item 12 –	Exhibits attached hereto
	(a)(1) – Code of Ethics – See Item 2
	(a)(2) – Certifications – Attached hereto
	(a)(3) – Not Applicable
	(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/ John M. Perlowski
	John M. Perlowski
	Chief Executive Officer (principal executive officer) of
	BlackRock New York Municipal Income Trust
Date: October 4, 2011
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By:	/s/ John M. Perlowski
	John M. Perlowski
	Chief Executive Officer (principal executive officer) of
	BlackRock New York Municipal Income Trust
Date: October 4, 2011
By:	/s/ Neal J. Andrews
	Neal J. Andrews
	Chief Financial Officer (principal financial officer) of
	BlackRock New York Municipal Income Trust
Date: October 4, 2011

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