BLACKROCK VIRGINIA MUNICIPAL BOND TRUST

Regulatory Filings • May 5, 2009

N-CSRS 1 c57435_ncsrs.htm c57435_ncsrs.htm

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549

FORM N-CSRS

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-21053

Name of Fund: BlackRock Virginia Municipal Bond Trust (BHV)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: Donald C. Burke, Chief Executive Officer, BlackRock Virginia Municipal Bond Trust, 800 Scudders Mill Road, Plainsboro, NJ 08536. Mailing address: P.O. Box 9011, Princeton, NJ 08543-9011

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

Date of fiscal year end: 08/31/2009 Date of reporting period: 02/28/2009

Item 1 – Report to Stockholders

EQUITIES FIXED INCOME REAL ESTATE LIQUIDITY ALTERNATIVES BLACKROCK SOLUTIONS

Semi-Annual Report
FEBRUARY 28, 2009 |
(UNAUDITED)

BlackRock California Insured Municipal Income Trust (BCK)
BlackRock California Municipal Bond Trust (BZA)
BlackRock California Municipal Income Trust II (BCL)
BlackRock Maryland Municipal Bond Trust (BZM)
BlackRock MuniHoldings New York Insured Fund, Inc. (MHN)
BlackRock New Jersey Municipal Bond Trust (BLJ)
BlackRock New York Insured Municipal Income Trust (BSE)
BlackRock New York Municipal Bond Trust (BQH)
BlackRock New York Municipal Income Trust II (BFY)
BlackRock Virginia Municipal Bond Trust (BHV)
The Massachusetts Health & Education Tax-Exempt Trust
(MHE)

NOT FDIC INSURED
MAY LOSE VALUE
NO BANK GUARANTEE

Table of Contents

	Page
A Letter to
Shareholders	3
Semi-Annual
Report:
Trust Summaries	4
The Benefits and
Risks of Leveraging	15
Derivative
Instruments	15
Financial Statements:
Schedules of Investments	16
Statements of Assets and
Liabilities	42
Statements of Operations	44
Statements of Changes in Net
Assets	46
Financial
Highlights	48
Notes to
Financial Statements	59
Officers and
Directors/Trustees	65
Additional
Information	66

2 SEMI-ANNUAL REPORT FEBRUARY 28, 2009

A Letter to Shareholders

Dear Shareholder

The present time may well be remembered as one of the most tumultuous periods in financial market history. Over the past year, the housing market collapse and the ensuing credit crisis swelled into an all-out global financial market meltdown, featuring the collapse of storied financial firms, volatile swings in the world’s financial markets and monumental government actions, including the recent passage of the nearly $800 billion American Recovery and Reinvestment Act of 2009.

The US economy appeared somewhat resilient through the first few months of 2008 before becoming mired in the worst recession in decades. The economic data was dire across the board, but worse was the intensifying pace of deterioration in consumer spending, employment, manufacturing and other key indicators. US gross domestic product (GDP) contracted at an annual rate of 6.3% in the 2008 fourth quarter—substantially below forecast and the worst reading since 1982. The Federal Reserve Board (the “Fed”) took forceful action to revive the global economy and financial system. In addition to slashing the federal funds target rate from 3% to a record low range of 0% to 0.25%, the central bank provided enormous cash injections and significantly expanded its balance sheet via various lending and acquisition programs.

Against this backdrop, US equities contended with relentless market volatility, and the sentiment turned decisively negative toward period end. Declines were significant and broad based, with little divergence among the returns for large and small cap stocks. Non-US stocks were not spared either, as the credit crisis revealed itself to be global in nature and economic activity slowed dramatically.

Risk aversion remained the dominant theme in fixed income markets, leading the Treasury sector to top all other asset classes. The high yield market was particularly hard hit in this environment, as economic turmoil, combined with frozen credit markets and substantial technical pressures, took a heavy toll. Meanwhile, tax-exempt issues posted positive returns for the period, but the sector was not without significant challenges, including a shortage of market participants, lack of liquidity, difficult funding environment and backlog of new-issue supply.

In all, investors continued to gravitate toward relative safety, as evidenced in the six- and 12-month returns of the major benchmark indexes:

| Total Returns as of February 28, 2009 — US equities
(S&P 500 Index) | 6-month — (41.82 | )% | 12-month — (43.32 | )% |
| --- | --- | --- | --- | --- |
| Small cap
US equities (Russell 2000 Index) | (46.91 | ) | (42.38 | ) |
| International
equities (MSCI Europe, Australasia, Far East Index) | (44.58 | ) | (50.22 | ) |
| US Treasury
securities (Merrill Lynch 10-Year US Treasury Index) | 8.52 | | 8.09 | |
| Taxable
fixed income (Barclays Capital US Aggregate Bond Index) | 1.88 | | 2.06 | |
| Tax-exempt
fixed income (Barclays Capital Municipal Bond Index) | 0.05 | | 5.18 | |
| High yield
bonds (Barclays Capital US Corporate High Yield 2% Issuer Capped Index*) | (21.50 | ) | (20.92 | ) |

• Formerly a Lehman Brothers index.

Past performance is no guarantee of future results. Index performance shown for illustrative purposes only.

You cannot invest directly in an index.

Through periods of market turbulence, as ever, BlackRock’s full resources are dedicated to the management of our clients’ assets. For our most current views on the economy and financial markets, we invite you to visit www.blackrock.com/funds . We thank you for entrusting BlackRock with your investments, and we look forward to continuing to serve you in the months and years ahead.

Sincerely,

Rob Kapito President, BlackRock Advisors, LLC

THIS PAGE NOT PART OF YOUR FUND REPORT

3

T rust Summary as of February 28, 2009 BlackRock California Insured Municipal Income Trust

Investment Objective

BlackRock California Insured Municipal Income Trust (BCK) (the “Trust”) seeks to provide high current income exempt from regular federal income taxes and California income taxes. The Trust will invest at least 80% of its total assets in municipal obligations that are insured as to the timely payment of both principal and interest.

Performance

For the six months ended February 28, 2009, the Trust returned (14.11)% based on market price and (4.29)% based on net asset value (“NAV”). For the same period, the closed-end Lipper Single-State Insured Municipal Debt Funds category posted an average return of (10.41)% on a market price basis and (6.22)% on a NAV basis. All returns reflect reinvestment of dividends. The Trust’s discount to NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV. The range of states included in the insured Lipper category makes return comparisons inherently difficult. The Trust benefited from the outperformance of California credits, which occurred in spite of the negative fundamental backdrop involving the state’s budget finances. The Trust’s underweight in lower-rated credits was also additive, as a return to risk aversion caused credit spreads to widen during the six-month period.

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	BCK
Initial Offering Date	October 31, 2002
Yield on Closing Market Price as
of February 28, 2009 ($10.78) 1	6.23%
Tax Equivalent Yield 2	9.58%
Current Monthly Distribution per
Common Share 3	$0.056
Current Annualized Distribution
per Common Share 3	$0.672
Leverage as of February 28, 2009 4	38%

| 1 | Yield on closing market price is calculated by dividing
the current annualized distribution per share by the closing market price.
Past performance does not guarantee future results. |
| --- | --- |
| 2 | Tax equivalent yield assumes the maximum federal tax rate
of 35%. |
| 3 | The distribution is not constant and is subject to change. |
| 4 | Represents Auction Market Preferred Shares (“Preferred
Shares”) and tender option bond trusts (“TOBs”) as a percentage of total
managed assets, which is the total assets of the Trust, including any assets
attributable to Preferred Shares and TOBs, minus the sum of accrued
liabilities. For a discussion of leveraging techniques utilized by the Trust,
please see The Benefits and Risks of Leveraging on page 15. |

The table below summarizes the changes in the Trust’s market price and NAV per share:

	2/28/09	8/31/08	Change		High	Low
Market Price	$ 10.78	$ 12.95	(16.76	)%	$ 13.32	$ 7.15
Net Asset Value	$ 13.06	$ 14.08	(7.24	)%	$ 14.26	$ 10.43

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

Sector Allocations

	2/28/09	8/31/08
County/City/Special District/School District	44 %	38 %
Utilities	35	39
Health	7	8
Education	6	6
State	5	4
Transportation	3	5

Credit Quality Allocations 5

	2/28/09	8/31/08
AAA/Aaa	35 %	31 %
AA/Aa	58	58
A/A	7	11

5 Using the higher of Standard & Poor’s (“S&P’s”) or Moody’s Investors Service (“Moody’s”) ratings.

4 SEMI-ANNUAL REPORT FEBRUARY 28, 2009

Trust Summary as of February 28, 2009 BlackRock California Municipal Bond Trust

Investment Objective

BlackRock California Municipal Bond Trust (BZA) (the “Trust”) seeks to provide current income exempt from regular federal income taxes and California income taxes. Under normal market conditions, the Trust will invest at least 80% of its total assets in municipal bonds that are investment grade quality, or determined by the Advisor to be of equivalent credit quality at time of purchase. The Trust may invest up to 20% of its total assets in municipal bonds that are rated, at the time of investment, Ba/BB or B by Moody’s, S&P or Fitch or that are unrated but judged to be of comparable quality by BlackRock.

Performance

For the six months ended February 28, 2009, the Trust returned (21.61)% based on market price and (6.71)% based on NAV. For the same period, the closed-end Lipper California Municipal Debt Funds category posted an average return of (17.21)% on a market price basis and (11.72)% on a NAV basis. All returns reflect reinvestment of dividends. The Trust’s discount to NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV. The Trust’s performance benefited from the tightening of spreads in certain sectors specifically held in the Trust, such as corporate-backed securities, some land-based community facilities districts and alternative minimum tax paper. Tightening of credit spreads in the Trust’s lower-quality holdings muted the interest rate volatility that normally would have resulted from a negative rate environment.

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	BZA
Initial Offering Date	April 30, 2002
Yield on Closing Market Price as
of February 28, 2009 ($10.97) 1	6.78%
Tax Equivalent Yield 2	10.43%
Current Monthly Distribution per
Common Share 3	$0.062
Current Annualized Distribution
per Common Share 3	$0.744
Leverage as of February 28, 2009 4	40%

| 1 | Yield on closing market price is calculated by dividing
the current annualized distribution per share by the closing market price.
Past performance does not guarantee future results. |
| --- | --- |
| 2 | Tax equivalent yield assumes the maximum federal tax rate
of 35%. |
| 3 | The distribution is not constant and is subject to change. |
| 4 | Represents Preferred Shares and TOBs as a percentage of
total managed assets, which is the total assets of the Trust, including any
assets attributable to Preferred Shares and TOBs, minus the sum of accrued
liabilities. For a discussion of leveraging techniques utilized by the Trust,
please see The Benefits and Risks of Leveraging on page 15. |

The table below summarizes the changes in the Trust’s market price and NAV per share:

	2/28/09	8/31/08	Change		High	Low
Market Price	$ 10.97	$ 14.48	(24.24	)%	$ 14.57	$ 7.66
Net Asset Value	$ 13.39	$ 14.85	(9.83	)%	$ 15.05	$ 11.24

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

Sector Allocations

	2/28/09	8/31/08
County/City/Special District/School District	39 %	31 %
Health	17	23
Education	16	10
Housing	12	14
Transportation	5	6
Utilities	5	3
Corporate	4	5
State	2	—
Tobacco	—	8

Credit Quality Allocations 5

	2/28/09	8/31/08
AAA/Aaa	28 %	29 %
AA/Aa	27	18
A	31	35
BBB/Baa	8	11
B	1	1
Not Rated	5	6

5 Using the higher of S&P’s or Moody’s ratings.

SEMI-ANNUAL REPORT FEBRUARY 28, 2009 5

Trust Summary as of February 28, 2009
Investment Objective

BlackRock California Municipal Income Trust II (BCL) (the “Trust”) seeks to provide high current income exempt from regular federal income taxes and California income taxes. Under normal market conditions, the Trust will invest at least 80% of its total assets in municipal bonds that are investment grade quality, or determined by the Advisor to be of equivalent credit quality at the time of purchase. The Trust may invest up to 20% of its total assets in municipal bonds that are rated, at the time of investment, Ba/BB or B by Moody’s, S&P or Fitch or that are unrated but judged to be of comparable quality by BlackRock.

Performance

| For the six months
ended February 28, 2009, the Trust returned (16.04)% based on market price
and (5.87)% based on NAV. For the same period, the closed-end Lipper
California Municipal Debt Funds category posted an average return of (17.21)%
on a market price basis and (11.72)% on a NAV basis. All returns reflect
reinvestment of dividends. The Trust’s discount to NAV, which widened during
the period, accounts for the difference between performance based on price
and performance based on NAV. The Trust’s performance benefited from the
tightening of spreads in certain sectors specifically held in the Trust, such
as corporate-backed securities, some land-based community facilities
districts and alternative minimum tax paper. Tightening of credit spreads in
the Trust’s lower-quality holdings muted the interest rate volatility that
normally would have resulted from a negative rate environment. |
| --- |
| 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 American
Stock Exchange | BCL |
| --- | --- |
| Initial Offering
Date | July 30, 2002 |
| Yield on Closing
Market Price as of February 28, 2009 ($10.31) 1 | 6.63% |
| Tax Equivalent
Yield 2 | 10.20% |
| Current Monthly
Distribution per Common Share 3 | $0.057 |
| Current Annualized
Distribution per Common Share 3 | $0.684 |
| Leverage as of
February 28, 2009 4 | 41% |

| 1 | Yield on closing market price is calculated by dividing
the current annualized distribution per share by the closing market price. Past performance does not guarantee future results. |
| --- | --- |
| 2 | Tax equivalent yield assumes the maximum federal tax rate
of 35%. |
| 3 | The distribution is not constant and is subject to change. |
| 4 | Represents Preferred Shares and TOBs as a percentage of
total managed assets, which is the total assets of the Trust, including any
assets attributable to Preferred Shares and TOBs, minus the sum of accrued
liabilities. For a discussion of leveraging techniques utilized by the Trust,
please see The Benefits and Risks of Leveraging on page 15. |
| The table below
summarizes the changes in the Trust’s market price and NAV per share: | |

Market Price	2/28/09 — $ 10.31	8/31/08 — $ 12.70	(18.82	)%	High — $ 13.00	Low — $ 6.85
Net Asset Value	$ 12.77	$ 14.03	(8.98	)%	$ 14.20	$ 10.50

| The following
charts show the sector and credit quality allocations of the Trust’s
long-term investments: |
| --- |
| Sector Allocations |

	2/28/09	8/31/08
County/City/Special District/School
District	37 %	34 %
Utilities	16	12
Health	14	14
Transportation	8	10
Tobacco	7	11
Education	6	6
State	5	5
Corporate	4	4
Housing	3	4

Credit Quality Allocations 5

	2/28/09	8/31/08
AAA/Aaa	21 %	27 %
AA/Aa	45	35
A/A	27	25
BBB/Baa	4	6
B/B	1	1
Not Rated 6	2	6

5	Using the higher of S&P’s or Moody’s ratings.
6	The investment advisor has deemed certain of these
non-rated securities to be of investment grade quality. As of February 28,
2009 and August 31, 2008, the market value of these securities was $1,019,889
representing 1%, and $1,173,229 representing 1% respectively, of the Trust’s
long-term investments.

6 SEMI-ANNUAL REPORT FEBRUARY 28, 2009

Trust Summary as of February 28, 2009
Investment Objective

BlackRock Maryland Municipal Bond Trust (BZM) (the “Trust”) seeks to provide current income exempt from regular federal income taxes and Maryland personal income taxes. Under normal market conditions, the Trust will invest at least 80% of its total assets in municipal bonds that are investment grade quality, or determined by the Advisor to be of equivalent credit quality at the time of purchase. The Trust may invest up to 20% of its total assets in municipal bonds that are rated, at the time of investment, Ba/BB or B by Moody’s, S&P or Fitch or that are unrated but judged to be of comparable quality by BlackRock.

Performance

| For the six months
ended February 28, 2009, the Trust returned (13.78)% based on market price
and (11.58)% based on NAV. For the same period, the closed-end Lipper Other
States Municipal Debt Funds category posted an average return of (8.43)% on a
market price basis and (5.85)% on a NAV basis. All returns reflect
reinvestment of dividends. The Trust’s premium to NAV, which narrowed during
the period, accounts for the difference between performance based on price
and performance based on NAV. The Trust’s performance was hampered by its
exposure to the long end of the municipal yield curve, which underperformed
as the curve steepened. Also detracting from results was a widening in credit
spreads, which had a negative impact on weaker credits in the Trust. |
| --- |
| 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 American
Stock Exchange | BZM |
| --- | --- |
| Initial Offering
Date | April 30, 2002 |
| Yield on Closing
Market Price as of February 28, 2009 ($13.17) 1 | 5.96% |
| Tax Equivalent Yield 2 | 9.17% |
| Current Monthly
Distribution per Common Share 3 | $0.0654 |
| Current Annualized
Distribution per Common Share 3 | $0.7848 |
| Leverage as of
February 28, 2009 4 | 41% |

| 1 | Yield on closing market price is calculated by dividing
the current annualized distribution per share by the closing market price. Past performance does not guarantee future results. |
| --- | --- |
| 2 | Tax equivalent yield assumes the maximum federal tax rate
of 35%. |
| 3 | The distribution is not constant and is subject to change. |
| 4 | Represents Preferred Shares and TOBs as a percentage of
total managed assets, which is the total assets of the Trust, including any
assets attributable to Preferred Shares and TOBs, minus the sum of accrued liabilities.
For a discussion of leveraging techniques utilized by the Trust, please see
The Benefits and Risks of Leveraging on page 15. |
| The table below
summarizes the changes in the Trust’s market price and NAV per share: | |

Market Price	2/28/09 — $ 13.17	8/31/08 — $ 15.75	(16.38	)%	High — $ 16.65	Low — $ 8.70
Net Asset Value	$ 12.39	$ 14.45	(14.26	)%	$ 14.63	$ 10.51

| The following
charts show the sector and credit quality allocations of the Trust’s long-term
investments: |
| --- |
| Sector Allocations |

	2/28/09	8/31/08
County/City/Special
District/School District	27 %	28 %
Transportation	19	21
Health	20	19
Utilities	12	12
Education	11	11
Housing	7	5
Tobacco	3	3
State	1	1

Credit Quality Allocations 5

	2/28/09	8/31/08
AAA/Aaa	31 %	31 %
AA/Aa	19	21
A	36	27
BBB/Baa	5	10
Not Rated	9	11

5 Using the higher of S&P’s or Moody’s ratings.

SEMI-ANNUAL REPORT FEBRUARY 28, 2009 7

Trust Summary as of February 28, 2009
Investment Objective

BlackRock MuniHoldings New York Insured Fund, Inc. (MHN) (the “Trust”) seeks to provide shareholders with current income exempt from federal income taxes and New York State and New York City personal income taxes by investing primarily in a portfolio of long-term, investment grade municipal obligations, the interest on which, in the opinion of bond counsel to the issuer, is exempt from federal income taxes and New York State and New York City personal income taxes.

Performance

| For the six months
ended February 28, 2009, the Trust returned (11.14)% based on market price
and (6.29)% based on NAV. For the same period, the closed-end Lipper
Single-State Insured Municipal Debt Funds category posted an average return
of (10.41)% on a market price basis and (6.22)% on a NAV basis. All returns
reflect reinvestment of dividends. The Trust’s discount to NAV, which widened
during the period, accounts for the difference between performance based on
price and performance based on NAV. Trust performance was adversely affected
by its slightly below-average distribution rate. During the first half of the
period, an overweight in longer-maturity insured bonds with weaker underlying
ratings hampered results, as the municipal market became increasingly
dysfunctional and illiquid and these issues significantly underperformed.
This positioning proved beneficial during the second half, however, as the
selling pressure in municipals abated and the absolute yield levels attracted
strong retail demand, pushing yields to their lows for the period. Portfolio
turnover was very low through the end of 2008, but increased in the new year
as new issues offered compelling opportunities to add credits and yield. |
| --- |
| 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 | MHN |
| --- | --- |
| Initial Offering
Date | September 19, 1997 |
| Yield on Closing
Market Price as of February 28, 2009 ($10.42) 1 | 6.10% |
| Tax Equivalent
Yield 2 | 9.38% |
| Current Monthly
Distribution per Common Share 3 | $0.053 |
| Current Annualized
Distribution per Common Share 3 | $0.636 |
| Leverage as of
February 28, 2009 4 | 44% |

| 1 | Yield on closing market price is calculated by dividing
the current annualized distribution per share by the closing market price. Past performance does not guarantee future results. |
| --- | --- |
| 2 | Tax equivalent yield assumes the maximum federal tax rate
of 35%. |
| 3 | The distribution is not constant and is subject to change. |
| 4 | Represents Preferred Shares and TOBs as a percentage of
managed assets, which is the total assets of the Trust, including any assets
attributable to Preferred Shares and TOBs, minus the sum of accrued
liabilities. For a discussion of leveraging techniques utilized by the Trust,
please see The Benefits and Risks of Leveraging on page 15. |
| The table below
summarizes the changes in the Trust’s market price and NAV per share: | |

Market Price	2/28/09 — $ 10.42	8/31/08 — $ 12.12	(14.03	)%	High — $ 12.23	Low — $ 6.50
Net Asset Value	$ 12.62	$ 13.92	(9.34	)%	$ 14.12	$ 10.28

| The following
charts show the sector and credit quality allocations of the Trust’s
long-term investments: |
| --- |
| Sector Allocations |

	2/28/09	8/31/08
County/City/Special
District/School District	27 %	28 %
Transportation	27	28
State	12	10
Utilities	10	12
Education	7	6
Corporate	7	7
Health	4	3
Housing	3	3
Tobacco	3	3

Credit Quality Allocations 5

	2/28/09	8/31/08
AAA/Aaa	41 %	41 %
AA/Aa	33	49
A/A	20	5
BBB/Baa	6	5

5 Using the higher of S&P’s or Moody’s ratings.

8 SEMI-ANNUAL REPORT FEBRUARY 28, 2009

Trust Summary as of February 28, 2009
Investment Objective

BlackRock New Jersey Municipal Bond Trust (BLJ) (the “Trust”) seeks to provide current income exempt from regular federal income taxes and New Jersey gross income taxes. Under normal market conditions, the Trust will invest at least 80% of its total assets in municipal bonds that are investment grade quality, or determined by the Advisor to be of equivalent credit quality at the time of purchase. The Trust may invest up to 20% of its total assets in municipal bonds that are rated, at the time of investment, Ba/BB or B by Moody’s, S&P or Fitch or that are unrated but judged to be of comparable quality by BlackRock.

Performance

| For the six months
ended February 28, 2009, the Trust returned (15.67)% based on market price
and (12.46)% based on NAV. For the same period, the closed-end Lipper New
Jersey Municipal Debt Funds category posted an average return of (13.71)% on
a market price basis and (9.34)% on a NAV basis. All returns reflect
reinvestment of dividends. The Trust’s premium to NAV, which narrowed during
the period, accounts for the difference between performance based on price
and performance based on NAV. Sector allocation was a primary factor in the
Trust’s performance during the period. Spread products, such as healthcare,
housing and corporate-backed bonds, significantly underperformed, as the
economic downturn continued to put more stress on the fundamental credit
quality for these sectors. Additionally, the Trust’s alternative minimum tax
bond holdings underperformed, as spreads widened during the six-month period. |
| --- |
| 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 American
Stock Exchange | BLJ |
| --- | --- |
| Initial Offering
Date | April 30, 2002 |
| Yield on Closing
Market Price as of February 28, 2009 ($12.00) 1 | 7.05% |
| Tax Equivalent
Yield 2 | 10.85% |
| Current Monthly
Distribution per Common Share 3 | $0.0705 |
| Current Annualized
Distribution per Common Share 3 | $0.8460 |
| Leverage as of
February 28, 2009 4 | 41% |

| 1 | Yield on closing market price is calculated by dividing
the current annualized distribution per share by the closing market price. Past performance does not guarantee future results. |
| --- | --- |
| 2 | Tax equivalent yield assumes the maximum federal tax rate
of 35%. |
| 3 | The distribution is not constant and is subject to change. |
| 4 | Represents Preferred Shares and TOBs as a percentage of
total managed assets, which is the total assets of the Trust, including any
assets attributable to Preferred Shares, 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 15. |
| The table below
summarizes the changes in the Trust’s market price and NAV per share: | |

Market Price	2/28/09 — $ 12.00	8/31/08 — $ 14.76	(18.70	)%	High — $ 16.00	Low — $ 8.20
Net Asset Value	$ 11.95	$ 14.16	(15.61	)%	$ 14.42	$ 10.32

| The following
charts show the sector and credit quality allocations of the Trust’s
long-term investments: |
| --- |
| Sector Allocations |

	2/28/09	8/31/08
Health	27 %	35 %
State	20	15
Transportation	15	17
Education	10	10
Housing	9	5
County/City/Special
District/ School District	8	6
Corporate	6	6
Utilities	5	4
Tobacco	—	2

Credit Quality Allocations 5

	2/28/09	8/31/08
AAA/Aaa	41 %	29 %
AA/Aa	15	10
A	19	31
BBB/Baa	9	14
B	4	4
Not Rated	12	12

5 Using the higher of S&P’s or Moody’s ratings.

SEMI-ANNUAL REPORT FEBRUARY 28, 2009 9

Trust Summary as of February 28, 2009 BlackRock New York Insured Municipal Income Trust

| Investment Objective |
| --- |
| BlackRock
New York Insured Municipal Income Trust (BSE) (the “Trust”) seeks to provide high current
income exempt from regular federal income taxes and New York State and New
York City personal income taxes. The Trust will invest at least 80% of its
total assets in municipal obligations that are insured as to the timely
payment of both principal and interest. BSE is currently 100% invested in
securities which are not subject to the alternative minimum tax. |
| Performance |
| For the six months
ended February 28, 2009, the Trust returned (8.90)% based on market price and
(7.40)% based on NAV. For the same period, the closed-end Lipper Single-State
Insured Municipal Debt Funds category posted an average return of (10.41)% on
a market price basis and (6.22)% on a NAV basis. All returns reflect
reinvestment of dividends. The Trust’s discount to NAV, which widened during
the period, accounts for the difference between performance based on price
and performance based on NAV. An above-average distribution rate benefited
the Trust’s performance. During the first half of the period, an overweight
in longer-maturity insured bonds with weaker underlying ratings hampered
results, as the municipal market became increasingly dysfunctional and
illiquid and these issues significantly underperformed. However, this
positioning proved beneficial during the second half, as the selling pressure
in municipals abated and the absolute yield levels attracted strong retail
demand. Though the demand drove yields to their lows for the period, which
helped the long end of the curve, it did not fully erase the damage of the
credit spread widening. Portfolio turnover was very low through the end of
2008, but increased in the new year as new issues offered compelling
opportunities to add credits and yield. |
| 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 | BSE |
| --- | --- |
| Initial Offering
Date | October 31, 2002 |
| Yield on Closing
Market Price as of February 28, 2009 ($11.68) 1 | 5.96% |
| Tax Equivalent
Yield 2 | 9.17% |
| Current Monthly
Distribution per Common Share 3 | $0.058 |
| Current Annualized
Distribution per Common Share 3 | $0.696 |
| Leverage as of February
28, 2009 4 | 39% |

| 1 | Yield on closing market price is calculated by dividing
the current annualized distribution per share by the closing market price.
Past performance does not guarantee future results. |
| --- | --- |
| 2 | Tax equivalent yield assumes the maximum federal tax rate
of 35%. |
| 3 | The distribution is not constant and is subject to change. |
| 4 | Represents Preferred Shares and TOBs as a percentage of
total managed assets, which is the total assets of the Trust, including any
assets attributable to Preferred Shares and TOBs, minus the sum of accrued
liabilities. For a discussion of leveraging techniques utilized by the Trust,
please see The Benefits and Risks of Leveraging on page 15. |
| The table below
summarizes the changes in the Trust’s market price and NAV per share: | |

	2/28/09	8/31/08	Change		High	Low
Market Price	$ 11.68	$ 13.26	(11.92	)%	$ 13.79	$ 6.90
Net Asset Value	$ 12.49	$ 13.95	(10.47	)%	$ 14.19	$ 9.44
The following
charts show the sector and credit quality allocations of the Trust’s
long-term investments.

| Sector
Allocations | 2/28/09 | 8/31/08 |
| --- | --- | --- |
| Transportation | 28 % | 27 % |
| Education | 23 | 21 |
| County/City/Special
District/School District | 18 | 19 |
| Health | 13 | 14 |
| State | 11 | 9 |
| Utilities | 7 | 7 |
| Tobacco | — | 2 |
| Housing | — | 1 |

| Credit Quality
Allocations 5 | 2/28/09 | 8/31/08 |
| --- | --- | --- |
| AAA/Aaa | 36 % | 36 % |
| AA/Aa | 37 | 47 |
| A | 18 | 7 |
| BBB/Baa | 7 | 8 |
| Not Rated | 2 | 2 |

5 Using the higher of S&P’s or Moody’s ratings.

10 SEMI-ANNUAL REPORT FEBRUARY 28, 2009

Trust Summary as of February 28, 2009 BlackRock New York Municipal Bond Trust

| Investment
Objective |
| --- |
| BlackRock
New York Municipal Bond Trust (BQH) (the “Trust”) seeks to provide current income
exempt from regular federal income taxes and New York State and New York City
personal income taxes. Under normal market conditions, the Trust will invest
at least 80% of its total assets in municipal bonds that are investment grade
quality, or determined by the Advisor to be of equivalent credit quality at
the time of purchase. The Trust may invest up to 20% of its total assets in
municipal bonds that are rated, at the time of investment, Ba/BB or B by
Moody’s, S&P or Fitch or that are unrated but judged to be of comparable
quality by BlackRock. |
| Performance |
| For the six months
ended February 28, 2009, the Trust returned (12.97)% based on market price
and (5.54)% based on NAV. For the same period, the closed-end Lipper New York
Municipal Debt Funds category posted an average return of (13.42)% on a
market price basis and (11.21)% on a NAV basis. All returns reflect
reinvestment of dividends. The Trust’s discount to NAV, which widened during
the period, accounts for the difference between performance based on price
and performance based on NAV. Detracting from the Trust’s performance was its
underweight in both utilities and tax-backed credits. Over the period, the
Trust was positioned with a barbell-type structure, meaning it was overweight
in both shorter- and longer-maturity holdings, while maintaining an
underweight in the belly of the curve. The shorter-maturity and pre-refunded
holdings managed well through the market turmoil. Longer-maturity bonds
underperformed during the first half of the period; however, these issues
outperformed in the second half, as the selling pressure in municipals abated
and the absolute yield levels attracted strong retail demand, pushing yields
to their lows for the period. Portfolio turnover was very low through the end
of 2008, but increased in the new year as new issues offered compelling
opportunities to add credits and yield. |
| 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 | BQH |
| --- | --- |
| Initial Offering
Date | April 30, 2002 |
| Yield on Closing
Market Price as of February 28, 2009 ($12.28) 1 | 6.64% |
| Tax Equivalent
Yield 2 | 10.22% |
| Current Monthly
Distribution per Common Share 3 | $0.068 |
| Current Annualized
Distribution per Common Share 3 | $0.816 |
| Leverage as of
February 28, 2009 4 | 39% |

| 1 | Yield on closing market price is calculated by dividing
the current annualized distribution per share by the closing market price.
Past performance does not guarantee future results. |
| --- | --- |
| 2 | Tax equivalent yield assumes the maximum federal tax rate
of 35%. |
| 3 | The distribution is not constant and is subject to change. |
| 4 | Represents Preferred Shares and TOBs as a percentage of
total managed assets, which is the total assets of the Trust, including any
assets attributable to Preferred Shares and TOBs, minus the sum of accrued
liabilities. For a discussion of leveraging techniques utilized by the Trust,
please see The Benefits and Risks of Leveraging on page 15. |
| The table below
summarizes the changes in the Trust’s market price and NAV per share: | |

	2/28/09	8/31/08	Change		High	Low
Market Price	$ 12.28	$ 14.62	(16.01	)%	$ 14.76	$ 8.01
Net Asset Value	$ 13.41	$ 14.71	(8.84	)%	$ 14.92	$ 11.52
The following
charts show the sector and credit quality allocations of the Trust’s
long-term investments.

| Sector
Allocations | 2/28/09 | 8/31/08 |
| --- | --- | --- |
| State | 22 % | 21 % |
| Education | 14 | 12 |
| Housing | 14 | 17 |
| County/City/Special
District/School District | 13 | 11 |
| Transportation | 12 | 13 |
| Utilities | 10 | 9 |
| Corporate | 7 | 7 |
| Tobacco | 7 | 9 |
| Health | 1 | 1 |
| Credit Quality
Allocations 5 | | |
| | 2/28/09 | 8/31/08 |
| AAA/Aaa | 31 % | 38 % |
| AA/Aa | 30 | 25 |
| A | 15 | 12 |
| BBB/Baa | 16 | 17 |
| BB/Ba | 1 | — |
| B | 6 | 7 |
| Not Rated | 1 | 1 |

5 Using the higher of S&P’s or Moody’s ratings.

SEMI-ANNUAL REPORT FEBRUARY 28, 2009 11

Trust Summary as of February 28, 2009 BlackRock New York Municipal Income Trust II

| Investment
Objective |
| --- |
| BlackRock
New York Municipal Income Trust II (BFY) (the “Trust”) seeks to provide high current
income exempt from regular federal income taxes and New York State and New York
City personal income taxes. Under normal market conditions, the Trust will
invest at least 80% of its total assets in municipal bonds that are
investment grade quality, or determined by the Advisor to be of equivalent
credit quality at the time of purchase. The Trust may invest up to 20% of its
total assets in municipal bonds that are rated, at the time of investment,
Ba/BB or B by Moody’s, S&P or Fitch or that are unrated but judged to be
of comparable quality by BlackRock. |
| Performance |
| For the six months
ended February 28, 2009, the Trust returned (17.48)% based on market price
and (5.66)% based on NAV. For the same period, the closed-end Lipper New York
Municipal Debt Funds category posted an average return of (13.42)% on a
market price basis and (11.21)% on a NAV basis. All returns reflect
reinvestment of dividends. The Trust’s discount to NAV, which widened during
the period, accounts for the difference between performance based on price
and performance based on NAV. Detracting from the Trust’s performance were
its below-average distribution rate, as well as its underweight in both
utilities and tax-backed credits. Over the period, the Trust was positioned
with a barbell-type structure, meaning it was overweight in both shorter-and
longer-maturity holdings, while maintaining an underweight in the belly of
the curve. The shorter-maturity and pre-refunded holdings managed well
through the market turmoil. Longer-maturity bonds underperformed during the
first half of the period; however, these issues outperformed in the second
half, as the selling pressure in municipals abated and the absolute yield
levels attracted strong retail demand, pushing yields to their lows for the
period. Portfolio turnover was very low through the end of 2008, but increased
in the new year as new issues offered compelling opportunities to add credits
and yield. |
| 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 American
Stock Exchange | BFY |
| --- | --- |
| Initial Offering
Date | July 30, 2002 |
| Yield on Closing
Market Price as of February 28, 2009 ($10.83) 1 | 6.93% |
| Tax Equivalent
Yield 2 | 10.66% |
| Current Monthly
Distribution per Common Share 3 | $0.0625 |
| Current Annualized
Distribution per Common Share 3 | $0.7500 |
| Leverage as of
February 28, 2009 4 | 41% |

| 1 | Yield on closing market price is calculated by dividing
the current annualized distribution per share by the closing market price.
Past performance does not guarantee future results. |
| --- | --- |
| 2 | Tax equivalent yield assumes the maximum federal tax rate
of 35%. |
| 3 | The distribution is not constant and is subject to change. |
| 4 | Represents Preferred Shares and TOBs as a percentage of
total managed assets, which is the total assets of the Trust, including any
assets attributable to Preferred Shares, 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 15. |
| The table below
summarizes the changes in the Trust’s market price and NAV per share: | |

	2/28/09	8/31/08	Change		High	Low
Market Price	$ 10.83	$ 13.60	(20.37	)%	$ 14.00	$ 7.53
Net Asset Value	$ 13.00	$ 14.28	(8.96	)%	$ 14.48	$ 10.81
The following
charts show the sector and credit quality allocations of the Trust’s
long-term investments:

| Sector
Allocations | 2/28/09 | 8/31/08 |
| --- | --- | --- |
| County/City/Special
District/School District | 22 % | 20 % |
| Education | 15 | 15 |
| Corporate | 15 | 15 |
| Transportation | 12 | 13 |
| Utilities | 9 | 8 |
| Health | 8 | 8 |
| Tobacco | 8 | 11 |
| Housing | 7 | 6 |
| State | 4 | 4 |
| Credit Quality
Allocations 5 | | |
| | 2/28/09 | 8/31/08 |
| AAA/Aaa | 28 % | 30 % |
| AA/Aa | 31 | 40 |
| A/A | 27 | 14 |
| BBB/Baa | 7 | 7 |
| BB/Ba | 1 | 2 |
| B/B | 5 | 6 |
| Not Rated | 1 | 1 |

5 Using the higher of S&P’s or Moody’s ratings.

12 SEMI-ANNUAL REPORT FEBRUARY 28, 2009

Trust Summary as of February 28, 2009 BlackRock Virginia Municipal Bond Trust

| Investment
Objective |
| --- |
| BlackRock
Virginia Municipal Bond Trust (BHV) (the “Trust”) seeks to provide current income
exempt from regular federal income taxes and Virginia personal income taxes.
Under normal market conditions, the Trust will invest at least 80% of its
total assets in municipal bonds that are investment grade quality, or
determined by the Advisor to be of equivalent credit quality at time of
purchase. The Trust may invest up to 20% of its total assets in municipal
bonds that are rated, at the time of investment, Ba/BB or B by Moody’s,
S&P or Fitch or that are unrated but judged to be of comparable quality
by BlackRock. |
| Performance |
| For the six months
ended February 28, 2009, the Trust returned (11.08)% based on market price
and (6.95)% based on NAV, both with dividends reinvested. For the same
period, the closed-end Lipper Other States Municipal Debt Funds category
posted an average return of (8.43)% on a market price basis and (5.85)% on a
NAV basis. All returns reflect reinvestment of dividends. The Trust’s premium
to NAV, which narrowed during the period, accounts for the difference between
performance based on price and performance based on NAV. The Trust’s
performance was hampered by its exposure to the long end of the municipal
yield curve, which underperformed as the curve steepened. Also detracting
from results was a widening in credit spreads, which had a negative impact on
weaker credits in the Trust. |
| 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 American
Stock Exchange | BHV |
| --- | --- |
| Initial Offering
Date | April 30, 2002 |
| Yield on Closing
Market Price as of February 28, 2009 ($16.70) 1 | 5.20% |
| Tax Equivalent
Yield 2 | 8.00% |
| Current Monthly
Distribution per Common Share 3 | $0.072428 |
| Current Annualized
Distribution per Common Share 3 | $0.869136 |
| Leverage as of
February 28, 2009 4 | 39% |

| 1 | Yield on closing market price is calculated by dividing
the current annualized distribution per share by the closing market price.
Past performance does not guarantee future results. |
| --- | --- |
| 2 | Tax equivalent yield assumes the maximum federal tax rate
of 35%. |
| 3 | The distribution is not constant and is subject to change. |
| 4 | Represents Preferred Shares and TOBs as a percentage of
total managed assets, which is the total assets of the Trust, including any
assets attributable to Preferred Shares and TOBs, minus the sum of accrued
liabilities. For a discussion of leveraging techniques utilized by the Trust,
please see The Benefits and Risks of Leveraging on page 15. |
| The table below
summarizes the changes in the Trust’s market price and NAV per share: | |

	2/28/09	8/31/08	Change		High	Low
Market Price	$ 16.70	$ 19.50	(14.36	)%	$ 22.75	$ 12.50
Net Asset Value	$ 13.47	$ 15.03	(10.38	)%	$ 15.25	$ 11.62
The following
charts show the sector and credit quality allocations of the Trust’s
long-term investments:

| Sector
Allocations | 2/28/09 | 8/31/08 |
| --- | --- | --- |
| Health | 16 % | 20 % |
| Utilities | 16 | 8 |
| Transportation | 14 | 24 |
| Housing | 14 | 14 |
| County/City/Special
District/School District | 13 | 15 |
| Education | 11 | 11 |
| Corporate | 7 | 5 |
| State | 6 | — |
| Tobacco | 3 | 3 |
| Credit Quality
Allocations 5 | | |
| | 2/28/2009 | 8/31/2008 |
| AAA/Aaa | 34 % | 34 % |
| AA/Aa | 34 | 27 |
| A/A | 18 | — |
| A | — | 17 |
| BBB/Baa | 5 | 7 |
| Not Rated 6 | 9 | 15 |

5	Using the higher of S&P’s or Moody’s ratings.
6	The investment advisor has deemed certain of these
non-rated securities to be of investment grade quality. As of February 28,
2009 and August 31, 2008, the market value of these securities was $651,700,
representing 2%, and $2,170,858, representing 6%, respectively, of the
Trust’s long-term investments.

SEMI-ANNUAL REPORT FEBRUARY 28, 2009 13

Trust Summary as of February 28, 2009 The Massachusetts Health & Education Tax-Exempt Trust

| Investment
Objective |
| --- |
| The
Massachusetts Health & Education Tax-Exempt Trust (MHE) (the “Trust”) seeks to provide
shareholders with
as high a level of current income exempt from both regular federal income
taxes and Massachusetts personal income taxes as is consistent with the
preservation of shareholders’ capital. The Trust seeks to achieve its
investment objective by investing primarily in Massachusetts tax-exempt
obligations issued on behalf of participating not-for-profit institutions.
The Trust will continue to invest primarily in investment-grade obligations.
The Trust is intended to be a long-term investment and not a short-term
trading vehicle. |
| Performance |
| For the six months
ended February 28, 2009, the Trust returned (5.17)% based on market price and
(10.94)% based on NAV. For the same period, the closed-end Lipper Other
States Municipal Debt Funds category posted an average return of (8.43)% on a
market price basis and (5.85)% on a NAV basis. All returns reflect
reinvestment of dividends. The Trust’s discount to NAV, which narrowed during
the period, accounts for the difference between performance based on price
and performance based on NAV. The range of states included in the Lipper
category makes return comparisons inherently difficult. Since 80% of the
Trust’s assets must be allocated to education and healthcare bonds,
naturally, the Trust was overweight in both of these sectors. Healthcare
bonds and the weaker bonds in the education sector would be classified as
spread product. These spread products significantly underperformed, as the
economic downturn continued to put more stress on the fundamental credit
quality of these sectors over the six-month period. |
| 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 American
Stock Exchange | MHE |
| --- | --- |
| Initial Offering
Date | July 23, 1993 |
| Yield on Closing
Market Price as of February 28, 2009 ($10.30) 1 | 5.71% |
| Tax Equivalent
Yield 2 | 8.78% |
| Current Monthly
Distribution per Common Share 3 | $0.049 |
| Current Annualized
Distribution per Common Share 3 | $0.588 |
| Leverage as of
February 28, 2009 4 | 44% |

| 1 | Yield on closing market price is calculated by dividing
the current annualized distribution per share by the closing market price.
Past performance does not guarantee future results. |
| --- | --- |
| 2 | Tax equivalent yield assumes the maximum federal tax rate
of 35%. |
| 3 | The distribution is not constant and is subject to change. |
| 4 | Represents Preferred Shares and TOBs as a percentage of
managed assets, which is the total assets of the Trust, including any assets
attributable to Preferred Shares and TOBs, minus the sum of accrued
liabilities. For a discussion of leveraging techniques utilized by the Trust,
please see The Benefits and Risks of Leveraging on page 15. |
| The table below
summarizes the changes in the Trust’s market price and NAV per share: | |

	2/28/09	8/31/08	Change		High	Low
Market Price	$ 10.30	$ 11.22	(8.20	)%	$ 11.40	$ 7.18
Net Asset Value	$ 10.82	$ 12.55	(13.78	)%	$ 12.72	$ 9.08
The following
charts show the sector and credit quality allocations of the Trust’s
long-term investments:

| Sector
Allocations | 2/28/09 | 8/31/08 |
| --- | --- | --- |
| Education | 62 % | 59 % |
| Health | 26 | 28 |
| State | 7 | 5 |
| Housing | 2 | 3 |
| Corporate | 2 | 4 |
| Transportation | 1 | 1 |
| Credit Quality
Allocations 5 | | |
| | 2/28/09 | 8/31/08 |
| AAA/Aaa | 19 % | 20 % |
| AA/Aa | 18 | 22 |
| A/A | 38 | 29 |
| BBB/Baa | 14 | 12 |
| BB/Ba | 2 | 3 |
| B/B | — | 2 |
| C/C | 1 | — |
| Not Rated 6 | 8 | 12 |

5	Using the higher of S&P’s or Moody’s ratings.
6	The investment advisor has deemed certain of these
non-rated securities to be of investment grade quality. As of February 28,
2009 and August 31, 2008, the market value of these securities was $952,910,
representing 2% and 1,139,707 representing 2%, respectively, of the Trust’s
long-term investments.

14 SEMI-ANNUAL REPORT FEBRUARY 28, 2009

The Benefits and Risks of Leveraging

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

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

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

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

Furthermore, the value of the Trust’s portfolio investments generally varies inversely with the direction of long-term interest rates, although other factors also influence the value of portfolio investments. In contrast, the redemption value of the Trust’s Preferred Shares does not fluctuate in relation to interest rates. As a result, changes in interest rates can influence the Trust’s NAV positively or negatively in addition to the impact on Trust performance from leverage from Preferred Shares discussed above.

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

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

Under the Investment Company Act of 1940, the Trusts are permitted to issue Preferred Shares 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 Preferred Shares and TOBs will not exceed 50% of its total managed assets at the time such leverage is incurred. As of February 28, 2009, the Trusts had economic leverage from Preferred Shares and TOBs as a percentage of their total managed assets as follows:

	Percent of Leverage
BlackRock California Insured Municipal Income Trust	38 %
BlackRock California Municipal Bond Trust	40 %
BlackRock California Municipal Income Trust II	41 %
BlackRock Maryland Municipal Bond Trust	41 %
BlackRock MuniHoldings New York Insured Fund, Inc.	44 %
BlackRock New Jersey Municipal Bond Trust	41 %
BlackRock New York Insured Municipal Income Trust	39 %
BlackRock New York Municipal Bond Trust	39 %
BlackRock New York Municipal Income Trust II	41 %
BlackRock Virginia Municipal Bond Trust	39 %
The Massachusetts Health & Education Tax-Exempt Trust	44 %

Derivative Instruments

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

SEMI-ANNUAL REPORT FEBRUARY 28, 2009 15

| Schedule of
Investments February 28,
2009 (Unaudited) |
| --- |
| (Percentages shown are based on Net Assets) |

Municipal Bonds	Par (000)	Value
California—136.0%
County/City/Special District/School
District—65.8%
Alameda
County, California, Joint Powers Authority, Lease Revenue Refunding Bonds, 5%, 12/01/34 (a)	$ 1,200	$ 1,161,420
Benicia,
California, Unified School District, GO, Series B, 5.528%, 8/01/23 (b)(c)	6,500	2,980,900
Central
Unified School District, California, GO (Election of 2008), Series A, 5.625%, 8/01/33 (d)	400	405,492
Ceres,
California, Unified School District, GO (Election of 2001), Series B (b)(c)(e):
5.905%,
8/01/30	3,055	879,626
5.914%,
8/01/31	3,180	862,066
5.918%,
8/01/32	3,300	842,820
5.923%,
8/01/33	3,440	827,182
5.892%,
8/01/34	3,575	818,604
5.895%,
8/01/35	3,275	706,876
Evergreen,
California, Elementary School District, GO (Election of 2006), Series B, 5.125%, 8/01/33 (d)	5,000	4,900,850
Fontana
Unified School District, California, GO (Election of 2006), Series B, 5.25%, 8/01/26 (a)	5,400	5,598,936
Glendale,
California, Community College District, GO (Election of 2002), Series D, 5%, 11/01/31 (b)	2,500	2,433,675
Hemet,
California, Unified School District, GO, Series B, 5.125%, 8/01/37 (d)	2,140	2,063,923
Los
Angeles, California, Unified School District, GO:
Series D,
5%, 7/01/26	600	594,467
Series I,
5%, 7/01/27	1,000	976,470
Morongo,
California, Unified School District, GO (Election of 2005), Series A, 5.25%, 8/01/38 (d)	2,775	2,721,887
Murrieta
Valley, California, Unified School District, Public Financing Authority, Special Tax Revenue Bonds, Series A, 5.125%, 9/01/26 (d)	1,000	939,980
Riverside,
California, Unified School District, GO (Election of 2001), Series A, 5%, 2/01/27 (b)(e)	5,000	4,935,750
San Jose,
California, Financing Authority, Lease Revenue Refunding Bonds (Civic Center Project), Series B, 5%, 6/01/37 (f)	6,000	5,762,760
Stockton,
California, Unified School District, GO (Election of 2005), 5%, 8/01/31 (a)	3,000	2,882,610
West Contra
Costa, California, Unified School District, GO (Election of 2005), Series B, 5.625%, 8/01/35 (g)	2,000	2,050,640
		45,346,934
Education—9.4%
California
Educational Facilities Authority Revenue Bonds (Scripps College), 5%, 8/01/31 (b)	2,385	2,599,984
California
State University, Systemwide Revenue Refunding Bonds, Series A, 5%, 11/01/30 (f)	4,000	3,901,480
		6,501,464
Municipal Bonds	Par (000)	Value
California (concluded)
Health—11.1%
California
Statewide Communities Development Authority Revenue Bonds:
(Adventist),
Series B, 5%, 3/01/37 (d)	$ 1,000	$ 886,090
(Sutter
Health), Series D, 5.05%, 8/15/38 (a)	5,000	4,447,550
Kaweah
Delta Health Care District, California, Revenue Refunding Bonds, 6%, 8/01/12 (h)	2,000	2,333,160
		7,666,800
State—6.7%
California
State Public Works Board, Lease Revenue Bonds (Department of General Services—Capitol East End Complex), Series A, 5%, 12/01/27 (f)	5,000	4,615,700
Transportation—5.1%
San Joaquin
Hills, California, Transportation Corridor Agency, Toll Road Revenue Refunding Bonds, Series A, 5.488%, 1/15/31 (b)(c)	20,000	3,516,600
Utilities—37.9%
California
State Department of Water Resources, Water System Revenue Refunding Bonds (Central Valley Project), Series AE, 5%, 12/01/28	2,500	2,531,250
East Bay,
California, Municipal Utility District, Water System Revenue Refunding Bonds, Series A, 5%, 6/01/37 (b)(e)	4,000	3,905,040
Imperial
Irrigation District, California, Electric Revenue Refunding Bonds, 5%, 11/01/33	1,275	1,232,798
Los
Angeles, California, Department of Water and Power, Waterworks Revenue Refunding Bonds, Series A, 5.125%, 7/01/41 (b)(e)	5,000	4,857,400
Los
Angeles, California, Wastewater System Revenue Refunding Bonds (b):
Series A,
5%, 6/01/32 (e)	6,025	5,800,087
Sub-Series
A, 5%, 6/01/27	5,000	4,934,800
Napa,
California, Water Revenue Bonds, 5%, 5/01/35 (f)	3,000	2,848,740
		26,110,115
Total Municipal Bonds—136.0%		93,757,613
Municipal Bonds Transferred to Tender Option Bond Trusts (i)
California—13.6%
Utilities—13.6%
San Diego
County, California, Water Authority, Water Revenue Refunding Bonds, COP, Series A:
5%, 5/01/32
(b)	5,292	5,248,418
5%, 5/01/33
(a)	4,250	4,150,635
Total Municipal Bonds Transferred to Tender Option Bond Trusts—13.6%		9,399,053
Total Long-Term Investments (Cost—$107,723,093)—149.6%		103,156,666

Portfolio Abbreviations

To simplify the listings of the Trusts’ portfolio holdings in the Schedules of Investments, the names and descriptions of many of the securities have been abbreviated according to the list on the right.

AMT	Alternative Minimum Tax (subject to)
CABS	Capital Appreciation Bonds
COP	Certificates of Participation
EDA	Economic Development Authority
EDR	Economic Development Revenue Bonds
GO	General Obligation Bonds
HDA	Housing Development Authority
HFA	Housing Finance Agency
IDA	Industrial Development Authority
IDR	Industrial Development Revenue Bonds
M/F	Multi-Family
PCR	Pollution Control Revenue Bonds
PILOT	Payment in Lieu of Taxes
S/F	Single-Family
TFABS	Tobacco Flexible Amortization Bonds
VRDN	Variable Rate Demand Notes

| See Notes to Financial Statements. — 16 | SEMI-ANNUAL
REPORT | FEBRUARY 28, 2009 |
| --- | --- | --- |

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

Short-Term Securities	Par (000)	Value
California—4.4%
Los Angeles County, California, Metropolitan Transportation Authority, Sales Tax Revenue Refunding Bonds, Proposition C, VRDN, Second Senior Series A, 6%, 3/05/09 (b)(j)	$ 3,000	$ 3,000,000
	Shares
Money Market Funds—13.6%
CMA California Municipal Money Fund, 0.26% (k)(l)	9,410,597	9,410,597
Total Short-Term Securities (Cost—$12,410,597)—18.0%		12,410,597
Total Investments
(Cost—$120,133,690*)—167.6%		115,567,263
Liabilities in Excess of Other
Assets—(6.2)%		(4,267,677	)
Liability for Trust Certificates, Including Interest Expense and Fees Payable—(6.9)%		(4,798,695	)
Preferred Shares, at Redemption
Value—(54.5)%		(37,556,582	)
Net Assets Applicable to Common
Shares—100.0%		$ 68,944,309

• The cost and unrealized appreciation (depreciation) of investments as of February 28, 2009, as computed for federal income tax purposes, were as follows:

Aggregate cost	$
Gross unrealized appreciation	$ 848,865
Gross unrealized depreciation	(5,444,993	)
Net unrealized depreciation	$ (4,596,128	)

(a)	FSA Insured.
(b)	NPFGC Insured.
(c)	Represents a zero-coupon bond. Rate shown reflects the
current yield as of report date.
(d)	Assured Guaranty Insured.
(e)	FGIC Insured.
(f)	AMBAC Insured.
(g)	BHAC Insured.
(h)	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.
(i)	Securities represent bonds transferred to a tender option
bond trust in exchange for which the Trust acquired residual interest
certificates. These securities serve as collateral in a financing
transaction. See Note 1 of the Notes to Financial Statements for details of
municipal bonds transferred to tender option bond trusts.
(j)	Security may have a maturity of more than one year at time
of issuance, but has variable rate and demand features that qualify it as a
short-term security. Rate shown is as of report date. This rate changes
periodically based upon prevailing market rates.
(k)	Investments in companies considered to be an affiliate of
the Trust, for purposes of Section 2(a)(3) of the Investment Company Act of
1940, were as follows:

Affiliate		Income
CMA California Municipal Money Fund	3,137,730	$ 34,712

(l)	Represents the current yield as of report date.
•	For Trust compliance purposes, the Trust’s industry
classifications refer to any one or more of the industry sub-classifications
used by one or more widely recognized market indexes or ratings group
indexes, and/or as defined by Trust management. This definition may not apply
for purposes of this report which may combine industry sub-classifications
for reporting ease.
•	Effective September 1, 2008, the Trust adopted Financial
Accounting Standards Board Statement of Financial Accounting Standards No.
157, “Fair Value Measurements” (“FAS 157”). FAS 157 clarifies the definition
of fair value, establishes a framework for measuring fair values and requires
additional disclosures about the use of fair value measurements. Various
inputs are used in determining the fair value of investments, which are as
follows:
	•	Level 1 - price quotations in active markets/exchanges for
identical securities
	•	Level 2 - other observable inputs (including, but not
limited to: quoted prices for similar assets or liabilities in markets that
are 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 circumstance, to the extent observable inputs
are not available (including the Trust’s own assumption used in determining
the fair value of investments)
	The inputs or methodology used for valuing securities are
not necessarily an indication of the risk associated with investing in those
securities. For information about the Trust’s 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
February 28, 2009 in determining the fair valuation of the Trust’s
investments:

| Valuation Inputs | Investments
in Securities |
| --- | --- |
| | Assets |
| Level 1 | $ 9,410,597 |
| Level 2 | 106,156,666 |
| Level 3 | — |
| Total | $ 115,567,263 |

| See Notes to Financial Statements. — SEMI-ANNUAL
REPORT | FEBRUARY 28, 2009 | 17 |
| --- | --- | --- |

Schedule of Investments February 28, 2009 (Unaudited) BlackRock California Municipal Bond Trust (BZA) (Percentages shown are based on Net Assets)

Municipal Bonds	Par (000)	Value
California—136.4%
Corporate—5.4%
California
Pollution Control Financing Authority, Solid Waste Disposal Revenue Bonds (Waste Management, Inc. Project), AMT, Series C, 5.125%, 11/01/23	$ 1,530	$ 1,269,303
California
Pollution Control Financing Authority, Solid Waste Disposal Revenue Refunding Bonds (Republic Services, Inc. Project), AMT, Series C, 5.25%, 6/01/23	500	436,505
Los Angeles,
California, Regional Airports Improvement Corporation, Lease Revenue Bonds (American Airlines Inc.), AMT, Series B, 7.50%, 12/01/24	1,000	758,540
		2,464,348
County/City/Special District/School
District—52.2%
Chino Basin,
California, Desalter Authority, Revenue Refunding Bonds, Series A, 5%, 6/01/35 (a)	2,000	1,912,560
Lathrop,
California, Financing Authority Revenue Bonds (Water Supply Project):
5.90%,
6/01/27	655	512,498
6%, 6/01/35	1,180	870,781
Live Oak Unified
School District, California, GO (Election of 2004), Series B (b)(c):
5.568%,
8/01/18 (d)	905	291,292
5.578%,
8/01/18 (d)	945	287,450
5.528%,
8/01/29	705	204,549
5.538%,
8/01/30	795	213,084
5.548%,
8/01/31	830	206,048
5.558%,
8/01/32	865	199,383
Los Angeles,
California, Unified School District, GO:
Series D,
5.30%, 1/01/34	500	497,230
Series I,
5%, 7/01/26	650	644,007
Modesto,
California, Irrigation District, COP, Series B,
5.50%,
7/01/35	750	751,028
Orange County,
California, Community Facilities District,
Special Tax
Bonds (Number 01-1 Ladera Ranch),
Series A,
6%, 8/15/10 (d)	2,400	2,596,296
Pittsburg,
California, Redevelopment Agency, Tax Allocation Refunding Bonds (Los Medanos Community Development Project), Series A, 6.50%, 9/01/28	1,000	994,530
San Diego, California,
Regional Building Authority, Lease Revenue Bonds (County Operations Center and Annex Redevelopment Project) Series A, 5.375%, 2/01/36	2,000	1,959,500
San Francisco,
California, City and County Redevelopment Agency, Community Facilities District Number 1, Special Tax Bonds (Mission Bay South Public Improvements Project), 6.25%, 8/01/33	2,500	2,132,425
Santa Ana,
California, Unified School District, COP (Financing Program), 5.838%, 4/01/29 (c)(e)	15,000	4,992,900
Santa Ana, California,
Unified School District, GO, 5.375%, 8/01/27 (f)	500	499,690
Santa Cruz County,
California, Redevelopment Agency, Tax Allocation Bonds (Live Oak/Soquel Community Improvement Project Area), Series A, 7%, 9/01/36	500	517,280
Stockton, California,
Unified School District, GO (Election of 2005), 5%, 8/01/31 (e)	2,000	1,921,740
Val Verde,
California, Unified School District, GO (Election of 2008), Series A, 5.50%, 8/01/33	1,615	1,629,115
		23,833,386
Education—24.7%
California
Educational Facilities Authority Revenue Bonds:
(Stanford
University), Series Q, 5.25%, 12/01/32	4,000	4,083,680
(University
of San Diego), Series A, 5.25%, 10/01/30	4,000	3,913,840
California
Infrastructure and Economic Development Bank Revenue Bonds (J. David Gladstone Institute Project), 5.25%, 10/01/34	3,750	3,261,075
		11,258,595

Municipal Bonds	Par (000)	Value
California (concluded)
Health—25.7%
California
Statewide Communities Development Authority Revenue Bonds:
(Catholic
Healthcare West), Series E, 5.50%	$ 1,250	$ 1,140,612
(Daughters of Charity National
Health System), Series A, 5.25%, 7/01/30	1,500	993,090
(Kaiser
Permanente), Series A, 5.50%	5,000	4,476,950
(Sutter
Health), Series B, 5.625%, 8/15/42	3,250	3,061,532
Kaweah Delta
Health Care District, California, Revenue Refunding Bonds, 6%, 8/01/12 (d)	1,745	2,035,682
		11,707,866
Housing—9.4%
California M/F
Housing Revenue Bonds (San Lucas Apartments), AIG SunAmerica, Inc., Pass-Through Certificates of Beneficial Ownership, AMT, Series 5, 5.95%, 11/01/34	2,120	2,025,957
Santa Maria,
California, M/F Housing Revenue Bonds (Westgate Courtyards Apartments), AIG SunAmerica, Inc., Pass-Through Certificates of Beneficial Ownership, AMT, Series 3, 5.80%, 11/01/34	2,280	2,280,342
		4,306,299
State—3.4%
California State
Department of Water Resources, Power Supply Revenue Refunding Bonds, Sub-Series F-5, 5%, 5/01/22	1,500	1,558,530
Transportation—8.2%
Foothill/Eastern
Corridor Agency, California, Toll Road Revenue Refunding Bonds, 5.75%, 1/15/40	3,845	2,743,061
San Francisco,
California, City and County Airport Commission, International Airport Revenue Refunding Bonds, AMT, Second Series, 6.75%, 5/01/19	950	984,685
		3,727,746
Utilities—7.4%
Chino Basin,
California, Regional Financing Authority, Revenue Refunding Bonds (Inland Empire Utility Agency), Series A, 5%, 11/01/33 (g)	1,000	945,740
Eastern Municipal
Water District, California, Water and Sewer, COP, Series H, 5%, 7/01/33	2,545	2,437,728
		3,383,468
Multi-State—8.3%
Housing—8.3%
Charter Mac Equity
Issuer Trust, 7.20%, 10/31/52 (h)(i)	3,500	3,790,045
Total Municipal Bonds—144.7%		66,030,283

Municipal Bonds Transferred to Tender Option Bond Trusts (j)
California—6.4%
County/City/Special District/School
District—6.4%
Santa Clara
County, California, Financing Authority, Lease Revenue Refunding Bonds, Series L, 5.25%, 5/15/36	2,999	2,930,627
Total Municipal Bonds Transferred to Tender Option Bond Trusts—6.4%		2,930,627
Total Long-Term Investments
(Cost—$72,108,281)—151.1%		68,960,910

See Notes to Financial Statements. — 18	SEMI-ANNUAL REPORT	FEBRUARY 28, 2009

Schedule of Investments (concluded) BlackRock California Municipal Bond Trust (BZA) (Percentages shown are based on Net Assets)

| Short-Term
Securities | Par (000) | Value |
| --- | --- | --- |
| California—4.4% | | |
| Los Angeles County, California, Metropolitan
Transportation Authority, Sales Tax Revenue Refunding Bonds, Proposition C, VRDN, Second Senior Series A, 6%, 3/05/09 (f)(k) | $ 2,000 | $ 2,000,000 |

Money Market
Funds—4.9%
CMA California Municipal Money
Fund, 0.26% (l)(m)	2,248,240	2,248,240
Total
Short-Term Securities (Cost—$4,248,240)—9.3%		4,248,240
Total
Investments (Cost—$76,356,521*)—160.4%		73,209,150
Other Assets
Less Liabilities—5.3%		2,429,324
Liability for Trust Certificates,
Including Interest Expense and Fees Payable—(4.4)%		(2,002,786	)
Preferred
Shares, at Redemption Value—(61.3)%		(27,979,904	)
Net Assets
Applicable to Common Shares—100.0%	$	45,655,784

• The cost and unrealized appreciation (depreciation) of investments as of February 28, 2009, as computed for federal income tax purposes, were as follows:

Aggregate cost	$
Gross unrealized appreciation	$ 1,574,936
Gross unrealized depreciation	(4,546,169	)
Net unrealized depreciation	$ (2,971,233	)

(a)	Assured Guaranty Insured.
(b)	XL Capital Insured.
(c)	Represents a zero-coupon bond. Rate shown reflects the
current yield as of report date.
(d)	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.
(e)	FSA Insured.
(f)	NPFGC Insured.
(g)	AMBAC Insured.
(h)	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.
(i)	Securities represent a beneficial interest in a trust. The
collateral deposited into the trust is federally tax-exempt revenue bonds
issued by various state or local governments, or their respective agencies or
authorities. The security is subject to remarketing prior to its stated
maturity, and is subject to mandatory redemption at maturity.
(j)	Securities represent bonds transferred to a tender option
bond trust in exchange for which the Trust acquired residual interest
certificates. These securities serve as collateral in a financing
transaction. See Note 1 of the Notes to Financial Statements for details of
municipal bonds transferred to tender option bond trusts.
(k)	Security may have a maturity of more than one year at time
of issuance, but has variable rate and demand features that qualify it as a
short-term security. Rate shown is as of report date. This rate changes
periodically based upon prevailing market rates.
(l)	Investments in companies considered to be an affiliate of
the Trust, for purposes of Section 2(a)(3) of the Investment Company Act of
1940, were as follows:

Affiliate		Income
CMA California Municipal Money
Fund	114,135	$ 13,721

(m)	Represents the current yield as of report date.
•	For Trust compliance purposes, the Trust’s industry
classifications refer to any one or more of the industry sub-classifications
used by one or more widely recognized market indexes or ratings group
indexes, and/or as defined by Trust management. This definition may not apply
for purposes of this report which may combine industry sub-classifications
for reporting ease.
•	Effective September 1, 2008, the Trust adopted Financial
Accounting Standards Board Statement of Financial Accounting Standards No.
157, “Fair Value Measurements” (“FAS 157”). FAS 157 clarifies the definition
of fair value, establishes a framework for measuring fair values and requires
additional disclosures about the use of fair value measurements. Various
inputs are used in determining the fair value of investments, which are as
follows:
	•	Level 1 - price quotations in active markets/exchanges for
identical securities
	•	Level 2 - other observable inputs (including, but not
limited to: quoted prices for similar assets or liabilities in markets that
are 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 circumstance, to the extent observable inputs
are not available (including the Trust’s own assumption used in determining
the fair value of investments)
	The inputs or methodology used
for valuing securities are not necessarily an indication of the risk
associated with investing in those securities. For information about the
Trust’s 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 February 28, 2009 in determining the fair valuation of
the Trust’s investments:

| Valuation Inputs | Investments
in Securities |
| --- | --- |
| | Assets |
| Level 1 | $ 2,248,240 |
| Level 2 | 70,960,910 |
| Level 3 | — |
| Total | $ 73,209,150 |

See Notes to Financial Statements. — SEMI-ANNUAL REPORT	FEBRUARY 28, 2009	19

Schedule of Investments February 28, 2009 (Unaudited) BlackRock California Municipal Income Trust II (BCL) (Percentages shown are based on Net Assets)

Municipal Bonds	Par (000)	Value
California—134.9%
Corporate—5.9%
California
Pollution Control Financing Authority, Solid Waste Disposal Revenue Bonds (Waste Management, Inc. Project), AMT, Series C:
5.125%,
11/01/23	$ 4,180	$ 3,467,770
6.75%,
12/01/27	1,225	1,221,827
Los
Angeles, California, Regional Airports Improvement Corporation, Lease Revenue Bonds (American Airlines Inc.), AMT, Series C, 7.50%, 12/01/24	1,785	1,353,994
		6,043,591
County/City/Special District/School
District—50.8%
Alameda
County, California, Joint Powers Authority, Lease Revenue Refunding Bonds, 5%, 12/01/34 (a)	3,500	3,387,475
Corona-Norco
Unified School District, California, Community Facilities District Number 98-1, Special Tax Bonds, 5.10%, 9/01/32 (b)	6,000	5,824,020
La Quinta,
California, Redevelopment Agency, Tax Allocation Bonds (Redevelopment Project Area Number 1), 5.125%, 9/01/32 (b)	4,000	3,480,360
Los
Angeles, California, Community College District, GO, Series F-1, 5%, 8/01/33	1,500	1,462,755
Los
Alamitos, California, Unified School District, GO (School Facilities Improvement Project Number 1), 5.50%, 8/01/33	3,500	3,594,150
Los
Angeles, California, Unified School District, GO: Series D, 5.30%, 1/01/34	2,100	2,088,366
Series I,
5%, 7/01/26	3,100	3,071,418
Modesto,
California, Irrigation District, COP, Series B, 5.50%, 7/01/35	1,650	1,652,260
Pittsburg,
California, Redevelopment Agency, Tax Allocation Refunding Bonds (Los Medanos Community Development Project), Series A, 6.50%, 9/01/28	2,000	1,989,060
San Diego,
California, Regional Building Authority, Lease Revenue Bonds (County Operations Center and Annex Redevelopment Project) Series A, 5.375%, 2/01/36	1,600	1,567,600
San
Francisco, California, City and County Redevelopment Agency, Community Facilities District Number 1, Special Tax Bonds (Mission Bay South Public Improvements Project), 6.25%, 8/01/33	3,000	2,558,910
San Jose,
California, Unified School District, Santa Clara County, GO (Election of 2002), Series D, 5%, 8/01/32	2,750	2,708,860
Santa Ana,
California, Unified School District, GO (Election of 2008), Series A:
5.50%,
8/01/30	5,830	5,945,726
5.125%,
8/01/33	2,000	1,949,600
Santa Cruz
County, California, Redevelopment Agency, Tax Allocation Bonds (Live Oak/Soquel Community Improvement Project Area), Series A, 6.625%, 9/01/29	1,000	1,020,390
Stockton,
California, Unified School District, GO (Election of 2005), 5%, 8/01/31 (a)	2,000	1,921,740
Torrance,
California, Unified School District, GO, (Election of 2008 - Measure Z), 6%, 8/01/33	1,500	1,577,085
Val Verde,
California, Unified School District, GO (Election of 2008), Series A, 5.50%, 8/01/33	5,000	5,043,700
Val Verde,
California, Unified School District Financing Authority, Special Tax Refunding Bonds, Junior Lien, 6.25%, 10/01/28	1,170	1,019,889
		51,863,364

Municipal Bonds	Par (000)	Value
California (concluded)
Education—7.7%
California
Educational Facilities Authority Revenue Bonds (University of Southern California), Series A, 5.25%, 10/01/39	$ 3,500	$ 3,563,210
University
of California Revenue Bonds, Series D, 5%, 5/15/32 (c)(d)	2,500	2,374,700
University
of California, General Revenue Bonds, Series A, 5%, 5/15/33 (b)	2,000	1,950,480
		7,888,390
Health—21.5%
California
Health Facilities Financing Authority, Revenue Refunding Bonds (Providence Health and Services), Series C, 6.50%, 10/01/38	1,000	1,047,140
California
Infrastructure and Economic Development Bank Revenue Bonds (Kaiser Hospital Assistance I-LLC), Series A, 5.55%, 8/01/31	1,735	1,554,890
California
Statewide Communities Development Authority Revenue Bonds:
(Catholic
Healthcare West), Series E, 5.50%, 7/01/31	1,250	1,140,612
(Kaiser
Permanente), Series A, 5.50%, 11/01/32	5,000	4,476,950
(Sutter
Health), Series B, 5.50%, 8/15/34	8,000	7,570,720
California
Statewide Communities Development Authority, Health Facility Revenue Bonds (Memorial Health Services), Series A, 5.50%, 10/01/33	7,000	6,145,930
		21,936,242
State—7.8%
California
State Department of Water Resources, Power Supply Revenue Refunding Bonds, Sub-Series F-5, 5%, 5/01/22	7,650	7,948,503
Tobacco—10.4%
Golden
State Tobacco Securitization Corporation of California, Tobacco Settlement Revenue Bonds, Series A-1, 6.75%, 6/01/13 (e)	9,000	10,593,540
Transportation—12.9%
Foothill/Eastern
Corridor Agency, California, Toll Road Revenue Bonds, Senior Lien, Series A, 4.118%, 1/01/26 (f)(g)	10,000	4,602,700
Foothill/Eastern
Corridor Agency, California, Toll Road Revenue Refunding Bonds, 5.023%, 1/15/30 (f)	6,550	1,084,418
Port of
Oakland, California, Revenue Bonds, AMT, Series K, 5.75%, 11/01/29 (c)(d)	2,000	1,709,340
San
Francisco, California, City and County Airport Commission, International Airport Revenue Refunding Bonds, AMT, Second Series, 6.75%, 5/01/19	1,575	1,632,503
San Joaquin
Hills, California, Transportation Corridor Agency, Toll Road Revenue Refunding Bonds, Series A, 4.344%, 1/15/34 (c)(f)	30,000	4,136,700
		13,165,661
Utilities—17.9%
Eastern
Municipal Water District, California, Water and Sewer, COP, Series H, 5%, 7/01/33	7,100	6,800,735
Los
Angeles, California, Department of Water and Power, Waterworks Revenue Bonds, Series A, 5.375%, 7/01/34	1,600	1,615,104
Los
Angeles, California, Department of Water and Power, Waterworks Revenue Refunding Bonds, Series A, 5.125%, 7/01/41 (c)(d)	5,500	5,343,140
San Diego,
California, Public Facilities Financing Authority, Water Revenue Refunding Bonds, Series A:
5%, 8/01/26	1,000	1,013,470
5.25%,
8/01/38	2,500	2,496,175
Santa Rosa,
California, Wastewater Revenue Refunding Bonds, Series B, 3.921%, 9/01/25 (b)(f)	2,685	1,058,132
		18,326,756
Total Municipal Bonds in California		137,766,047

See Notes to Financial Statements. — 20	SEMI-ANNUAL REPORT	FEBRUARY 28, 2009

Schedule of Investments (concluded) BlackRock California Municipal Income Trust II (BCL) (Percentages shown are based on Net Assets)

Municipal Bonds	Par (000)	Value
Multi-State—4.0%
Housing—4.0%
Charter Mac Equity Issuer Trust (h)(i):
5.75%,
4/30/15	$ 500	$ 507,075
6%, 4/30/15	1,500	1,538,775
6%, 4/30/19	1,000	1,012,490
6.30%,
4/30/19	1,000	1,017,640
Total Municipal Bonds in Multi-State		4,075,980
Total Municipal Bonds—138.9%		141,842,027
Municipal Bonds Transferred to Tender Option Bond Trusts (j)
California—16.8%
County/City/Special
District/School District—7.7%
Santa Clara
County, California, Financing Authority, Lease Revenue Refunding Bonds, Series L, 5.25%, 5/15/36	8,005	7,823,144
Education—2.2%
California
State University, Systemwide Revenue Bonds, Series A, 5%, 11/01/39 (a)	2,400	2,298,264
Utilities—6.9%
California
State Department of Water Resources Revenue Bonds (Central Valley Project), Series AE, 5%, 12/01/29	7,000	7,061,460
Total Municipal Bonds Transferred to Tender Option Bond Trusts—16.8%		17,182,868
Total Long-Term Investments (Cost—$165,621,334)—155.7%		159,024,895
Short-Term Securities
California—3.9%
Los Angeles
County, California, Metropolitan Transportation Authority, Sales Tax Revenue Refunding Bonds, Proposition C, VRDN, Second Senior Series A, 6%, 3/05/09 (c)(m)	4,000	4,000,000
	Shares
Money Market
Fund—6.0%
CMA California Municipal Money Fund, 0.26% (k)(l)	6,141,300	6,141,300
Total Short-Term Securities (Cost—$10,141,300)—9.9%		10,141,300
Total Investments
(Cost—$175,762,634*)—165.6%		169,166,195
Other Assets Less Liabilities—2.7%		2,784,682
Liability for Trust Certificates, Including Interest Expense and Fees Payable—(9.8)%		(10,056,672	)
Preferred Shares, at Redemption
Value—(58.5)%		(59,756,135	)
Net Assets Applicable to Common
Shares—100.0%		$ 102,138,070

• The cost and unrealized appreciation (depreciation) of investments as of February 28, 2009, as computed for federal income tax purposes, were as follows:

Aggregate cost	$
Gross unrealized appreciation	$ 2,973,904
Gross unrealized depreciation	(9,489,865	)
Net unrealized depreciation	$ (6,515,961	)

(a)	FSA Insured.
(b)	AMBAC Insured.
(c)	NPFGC Insured.
(d)	FGIC Insured.
(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)	Security is collateralized by Municipal or U.S. Treasury
Obligations.
(h)	Security represents a beneficial interest in a trust. The
collateral deposited into the trust is federally tax-exempt revenue bonds
issued by various state or local governments, or their respective agencies or
authorities. The security is subject to remarketing prior to its stated maturity,
and is subject to mandatory redemption at maturity.
(i)	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.
(j)	Securities represent bonds transferred to a tender option
bond trust in exchange for which the Trust acquired residual interest
certificates. These securities serve as collateral in a financing
transaction. See Note 1 of the Notes to Financial Statements for details of
municipal bonds transferred to tender option bond trusts.
(k)	Investments in companies considered to be an affiliate of
the Trust, for purposes of Section 2(a)(3) of the Investment Company Act of
1940, were as follows:

Affiliate	Net Activity	Income
CMA California Municipal Money Fund	6,141,056	$ 38,270

(l)	Represents the current yield as of report date.
(m)	Security may have a maturity of more than one year at time
of issuance, but has variable rate and demand features that qualify it as a
short-term security. Rate shown is as of report date. This rate changes
periodically based upon prevailing market rates.

| • | For Trust compliance purposes, the Trust’s industry
classifications refer to any one or more of the industry sub-classifications
used by one or more widely recognized market indexes or ratings group
indexes, and/or as defined by Trust management. This definition may not apply
for purposes of this report which may combine industry sub-classifications
for reporting ease. | |
| --- | --- | --- |
| • | Effective September 1, 2008, the Trust adopted Financial
Accounting Standards Board Statement of Financial Accounting Standards No.
157, “Fair Value Measurements” (“FAS 157”). FAS 157 clarifies the definition
of fair value, establishes a framework for measuring fair values and requires
additional disclosures about the use of fair value measurements. Various
inputs are used in determining the fair value of investments, which are as
follows: | |
| | • | Level 1 - price quotations in active markets/exchanges for
identical securities |
| | • | Level 2 - other observable inputs (including, but not
limited to: quoted prices for similar assets or liabilities in markets that
are 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 circumstance, to the extent observable inputs
are not available (including the Trust’s own assumption used in determining
the fair value of investments) |
| | The inputs or methodology used for valuing securities are
not necessarily an indication of the risk associated with investing in those
securities. For information about the Trust’s policy regarding valuation of
investments and other significant accounting policies, please refer to the
Trust’s most recent financial statements as contained in its semi-annual
report. | |
| | The following table summarizes the inputs used as of
February 28, 2009 in determining the fair valuation of the Trust’s
investments: | |

| Valuation Inputs | Investments
in Securities |
| --- | --- |
| | Assets |
| Level 1 | $ 6,141,300 |
| Level 2 | 163,024,895 |
| Level 3 | — |
| Total | $ 169,166,195 |

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2009 21

Schedule of Investments February 28, 2009 (Unaudited) BlackRock Maryland Municipal Bond Trust (BZM) (Percentages shown are based on Net Assets)

Municipal Bonds	Par (000)	Value
Maryland—114.5%
County/City/Special
District/School District—34.1%
Annapolis,
Maryland, Special Obligation Revenue Bonds (Park Place Project), Series A, 5.35%, 7/01/34	$ 500	$ 291,775
Baltimore County, Maryland, Metropolitan District, GO:
67th Issue,
5%, 6/01/22	2,000	2,071,500
68th Issue,
5%, 8/01/28	2,000	2,014,940
Baltimore,
Maryland, Special Obligation Tax Bonds (Harborview Lot Number 2), 6.50%, 7/01/31	1,000	703,490
Frederick
County, Maryland, Special Obligation Tax Bonds (Urbana Community Development Authority), 6.625%, 7/01/25	1,000	753,010
Montgomery
County, Maryland, Lease Revenue Bonds (Metrorail Garage Projects):
5%, 6/01/23	500	512,805
5%, 6/01/24	1,435	1,459,051
Prince
Georges County, Maryland, Special Obligation Bonds (National Harbor Project), 5.20%, 7/01/34	1,500	820,260
		8,626,831
Education—24.0%
Anne
Arundel County, Maryland, EDR (Community College Project), 5.25%, 9/01/28	1,870	1,730,217
Maryland
State Health and Higher Educational Facilities Authority Revenue Bonds:
(Baltimore
Board of Child Care), 5.375%, 7/01/32	2,000	1,806,780
(Loyola
College), 5%, 10/01/39	2,000	1,653,720
Maryland
State Industrial Development Financing Authority, EDR (Our Lady of Good Counsel School), Series A, 6%, 5/01/35	1,000	653,690
University
System of Maryland, Auxiliary Facility and Tuition Revenue Bonds, Series A, 4.50%, 4/01/28	250	246,212
		6,090,619
Health—29.8%
Baltimore
County, Maryland, Revenue Refunding Bonds (Oak Crest Village, Inc.), Series A, 5%, 1/01/37	1,000	703,290
Howard
County, Maryland, Retirement Community Revenue Refunding Bonds (Columbia Vantage House Corporation), Series A, 5.25%, 4/01/33	500	278,960
Maryland
State Health and Higher Educational Facilities Authority Revenue Bonds:
(Carroll
County General Hospital), 6%, 7/01/37	1,990	1,774,921
(Union
Hospital of Cecil County), 5.625%, 7/01/32	2,000	1,797,680
(University
of Maryland Medical System), 5.25%, 7/01/11 (a)	2,000	2,167,760
Maryland
State Health and Higher Educational Facilities Authority, Revenue Refunding Bonds (Peninsula Regional Medical Center), 5%, 7/01/36	1,000	820,230
		7,542,841
Housing—1.9%
Maryland
State Community Development Administration, Department of Housing and Community Development, Residential Revenue Refunding Bonds, AMT, Series A, 5.75%, 9/01/39	500	490,005
Transportation—7.0%
Maryland
State Transportation Authority, Parking Revenue Bonds (Baltimore/Washington International Airport), AMT, Series B, 5.125%, 3/01/24 (b)	2,000	1,786,480

Municipal Bonds	Par (000)	Value
Maryland
(concluded)
Utilities—17.7%
Baltimore,
Maryland, Wastewater Project Revenue Refunding Bonds, Series A (c)(d):
5.20%,
7/01/32	$ 2,500	$ 2,521,325
5.125%,
7/01/42	2,000	1,954,540
		4,475,865
Total Municipal Bonds in Maryland		29,012,641
Multi-State—8.5%
Housing—8.5%
Charter Mac Equity Issuer Trust, 7.20%, 10/31/52 (e)(f)	2,000	2,165,740
Puerto
Rico—15.1%
State—1.2%
Puerto Rico
Public Buildings Authority, Government Facilities Revenue Refunding Bonds, Series D, 5.375%, 7/01/33	350	294,665
Tobacco—4.0%
Children’s
Trust Fund Project of Puerto Rico, Tobacco Settlement Revenue Refunding Bonds, 5.50%, 5/15/39	1,500	1,005,015
Transportation—9.9%
Puerto Rico
Commonwealth Highway and Transportation Authority, Highway Revenue Refunding Bonds:
Series CC,
5.25%, 7/01/36 (g)	895	856,166
Series D,
5.25%, 7/01/12 (a)	1,500	1,661,010
		2,517,176
Total Municipal Bonds in Puerto Rico		3,816,856
Total Municipal Bonds—138.1%		34,995,237
Municipal Bonds Transferred to Tender Option Bond Trusts (h)
Maryland—11.9%
Transportation—11.9%
Maryland
State Transportation Authority, Transportation Facilities Projects Revenue Bonds, 5%, 7/01/41 (g)	3,000	3,008,700
Total Municipal Bonds Transferred to Tender Option Bond Trusts		3,008,700
Total Long-Term Investments (Cost—$41,417,253)—150.0%		38,003,937

Short-Term Securities
Money
Market Funds—17.8%
Merrill Lynch Institutional Tax-Exempt Fund, 0.66% (i)(j)	4,502,411	4,502,411
Total Short-Term Securities (Cost—$4,502,411)—17.8%		4,502,411
Total Investments
(Cost—$45,919,664*)—167.8%		42,506,348
Other Assets Less Liabilities—1.3%		335,705
Liability for Trust Certificates, Including Interest Expense and Fees Payable—(5.9)%		(1,502,578	)
Preferred Shares, at Redemption
Value—(63.2)%		(16,001,184	)
Net Assets Applicable to Common
Shares—100.0%	$	25,338,291

See Notes to Financial Statements.

22 SEMI-ANNUAL REPORT FEBRUARY 28, 2009

Schedule of Investments (concluded) BlackRock Maryland Municipal Bond Trust (BZM)

• The cost and unrealized appreciation (depreciation) of investments as of February 28, 2009 as computed for federal income tax purposes, were as follows:

Aggregate cost	$
Gross unrealized appreciation	$ 887,230
Gross unrealized depreciation	(4,218,827	)
Net unrealized depreciation	$ (3,331,597	)

| (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) | AMBAC Insured. |
| (c) | FGIC Insured. |
| (d) | NPFGC Insured. |
| (e) | Security exempt from registration under Rule 144A of the
Securities Act of 1933. These securities may be resold in transactions exempt
from registration to qualified institutional investors. |
| (f) | Security represents a beneficial interest in a trust. The
collateral deposited into the trust is federally tax-exempt revenue bonds
issued by various state or local governments, or their respective agencies or
authorities. The security is subject to remarketing prior to its stated
maturity, and is subject to mandatory redemption at maturity. |
| (g) | FSA Insured. |
| (h) | Securities represent bonds transferred to a tender option
bond trust in exchange for which the Trust acquired residual interest
certificates. These securities serve as collateral in a financing
transaction. See Note 1 of the Notes to Financial Statements for details of
municipal bonds transferred to tender option bond trusts. |
| (i) | Investments in companies considered to be an affiliate of
the Trust, for purposes of Section 2(a)(3) of the Investment Company Act of
1940, were as follows: |

Affiliate	Net Activity	Income
Merrill Lynch Institutional Tax-Exempt Fund	2,398,985	$ 21,217

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

| • | For Trust compliance purposes, the Trust’s industry
classifications refer to any one or more of the industry sub-classifications
used by one or more widely recognized market indexes or ratings group
indexes, and/or as defined by Trust management. This definition may not apply
for purposes of this report which may combine industry sub-classifications
for reporting ease. | |
| --- | --- | --- |
| • | Effective September 1, 2008, the Trust adopted Financial
Accounting Standards Board Statement of Financial Accounting Standards No.
157, “Fair Value Measurements” (“FAS 157”). FAS 157 clarifies the definition
of fair value, establishes a framework for measuring fair values and requires
additional disclosures about the use of fair value measurements. Various
inputs are used in determining the fair value of investments, which are as follows: | |
| | • | Level 1 - price quotations in active markets/exchanges for
identical securities |
| | • | Level 2 - other observable inputs (including, but not
limited to: quoted prices for similar assets or liabilities in markets that
are 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 circumstance, to the extent observable inputs
are not available (including the Trust’s own assumption used in determining
the fair value of investments) |
| | The inputs or methodology used for valuing securities are
not necessarily an indication of the risk associated with investing in those
securities. For information about the Trust’s 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
February 28, 2009 in determining the fair valuation of the Trust’s
investments: | |

| Valuation Inputs | Investments
in Securities |
| --- | --- |
| | Assets |
| Level 1 | $ 4,502,411 |
| Level 2 | 38,003,937 |
| Level 3 | — |
| Total | $ 42,506,348 |

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2009 23

Schedule of Investments February 28, 2009 (Unaudited)
(Percentages shown
are based on Net Assets)

Municipal Bonds	Par (000)	Value
New York—134.8%
Corporate—12.2%
New York
City, New York, City IDA, IDR (Japan Airlines Company), AMT, 6%, 11/01/15 (a)	$ 9,640	$ 9,652,436
New York
City, New York, City IDA, Special Facility Revenue Refunding Bonds (Terminal One Group Association Project), AMT, 5.50%, 1/01/24	1,500	1,291,680
New York
State Energy Research and Development Authority, Gas Facilities Revenue Refunding Bonds (Brooklyn Union Gas Company/Keyspan), AMT, Series A, 4.70%, 2/01/24 (b)	15,090	13,086,501
New York
State Energy Research and Development Authority, PCR, Refunding (Central Hudson Gas and Electric), Series A, 5.45%, 8/01/27 (c)	6,000	6,026,700
Suffolk
County, New York, IDA, IDR (Keyspan-Port Jefferson), AMT, 5.25%, 6/01/27	4,355	3,533,299
Suffolk
County, New York, IDA, Solid Waste Disposal Facility, Revenue Refunding Bonds (Ogden Martin System Huntington Project), AMT (c):
6%,
10/01/10	4,660	4,816,576
6.15%,
10/01/11	5,000	5,227,700
6.25%,
10/01/12	3,530	3,726,727
		47,361,619
County/City/Special District/School
District—41.6%
Buffalo,
New York, GO, Series D (a)(d):
6%,
12/01/09	2,000	2,104,640
Erie
County, New York, Public Improvement, GO, Series A, 5.75%, 10/01/13 (b)(e)	1,025	1,048,636
Hudson
Yards Infrastructure Corporation, New York, Revenue Bonds, Series A,:
4.50%,
2/15/47 (e)	13,750	10,155,337
5%, 2/15/47
(b)	10,250	8,304,447
Nassau
Health Care Corporation, New York, Health System Revenue Bonds, 5.75%, 8/01/09 (a)(d)	4,210	4,382,526
New York
City, New York, City Health and Hospital Corporation, Health System Revenue Refunding Bonds, Series A, 5.25%, 2/15/17 (e)	2,000	2,019,200
New York
City, New York, City IDA, PILOT Revenue Bonds:
(Queens
Baseball Stadium Project) 5%, 1/01/31 (c)	4,000	3,374,640
(Queens
Baseball Stadium Project) 5%, 1/01/36 (c)	12,740	10,354,435
(Queens
Baseball Stadium Project) 5%, 1/01/39 (c)	4,000	3,213,400
(Queens
Baseball Stadium Project) 6.375%, 1/01/39 (f)	800	846,360
(Queens
Baseball Stadium Project) 5%, 1/01/46 (c)	7,800	6,107,634
(Yankee
Stadium Project) 5%, 3/01/36 (e)	3,950	3,208,941
(Yankee
Stadium Project) 5%, 3/01/46 (b)	10,500	7,809,480
New York
City, New York, City Transitional Finance Authority, Building Aid Revenue Bonds, Series S-1, 5.50%, 7/15/38 (f):
Series S-1,
5.50%, 7/15/38 (f)	4,000	4,020,120
Series S-2,
4.25%, 1/15/34 (b)(e)	4,830	3,935,436
Series S-2,
5%, 1/15/37 (a)(b)	3,750	3,640,013
New York
City, New York, City Transitional Finance Authority, Building Aid Revenue Refunding Bonds, Series S-1, 4.50%, 1/15/38	1,760	1,491,195
New York
City, New York, City Transitional Finance Authority, Future Tax Secured Revenue Bonds, Series B:
5.50%,
2/01/12 (e)	1,145	1,232,341
5.50%,
2/01/13 (e)	805	861,374
6.25%,
11/15/18 (b)	6,405	6,886,272
Municipal Bonds	Par (000)	Value
New York (continued)
County/City/Special District/School
District (concluded)
New York
City, New York, City Transitional Finance Authority, Future Tax Secured Revenue Bonds:
Series C,
5%, 2/01/33 (b)	$ 16,200	$ 15,758,712
Series E,
5.25%, 2/01/22 (e)	2,500	2,590,950
New York
City, New York, City Transitional Finance Authority, Future Tax Secured, Revenue Refunding Bonds, Series A, 5%, 11/15/26 (b)	1,000	1,006,660
New York
City, New York, GO, Refunding, Series A, 6.25%, 5/15/26 (a)	3,700	3,944,163
New York
City, New York, GO, Series B, 5.75%, 8/01/13 (e)	2,280	2,422,204
New York
City, New York, Sales Tax Asset Receivable Corporation Revenue Bonds:
DRIVERS,
Series 1438Z, 11.763%, 10/15/12 (c)(g)	1,250	1,315,888
Series A,
5%, 10/15/32 (c)	14,175	14,277,911
New York
Convention Center Development Corporation, New York, Revenue Bonds (Hotel Unit Fee Secured) (c):
5%,
11/15/30	2,100	1,988,049
5%,
11/15/35	21,000	19,620,720
5%,
11/15/44	2,055	1,877,633
Oneida-Herkimer,
New York, Solid Waste Management Authority, Solid Waste Revenue Refunding Bonds, 5.50%, 4/01/13 (a)	1,800	2,004,786
Syracuse,
New York, IDA, PILOT Revenue Bonds (Carousel Center Project), AMT, Series A, 5%, 1/01/36 (h)	10,000	7,781,600
Yonkers,
New York, GO, Series A, 5.75%, 10/01/10 (b)	1,795	1,945,080
		161,530,783
Education—10.8%
Albany, New
York, IDA, Civic Facility Revenue Bonds (The University Heights Association-Albany Law School), Series A, 6.75%, 12/01/09 (d)(i)	3,375	3,569,974
Madison
County, New York, IDA, Civic Facility Revenue Bonds (Colgate University Project), Series A (c):
5%, 7/01/30	4,000	3,897,320
5%, 7/01/35	750	712,080
New York
City, New York, City IDA, Civic Facility Revenue Refunding Bonds:
(Nightingale-Bamford
School), 5.25%, 1/15/17 (c)	1,200	1,275,948
(Polytechnic
University), 5.25%, 11/01/37 (j)	2,160	1,596,197
New York
City, New York, Trust for Cultural Resources Revenue Refunding Bonds (American Museum of Natural History), Series A, (e):
5%, 7/01/36	3,800	3,678,704
5%, 7/01/44	1,500	1,423,770
New York
State Dormitory Authority, Non-State Supported Debt, Revenue Refunding Bonds (Mount Sinai School of Medicine of New York University), 5%, 7/01/35 (e)	2,100	1,982,505
New York
State Dormitory Authority Revenue Bonds:
(853 Schools Program), Issue 2,
Series E, 5.75%, 7/01/19 (c)	1,340	1,368,555
(Cooper Union
of Advance Science), 6.25%, 7/01/09 (d)(e)	1,200	1,235,472
(Pace
University), 6%, 7/01/10 (d)(e)	5,345	5,756,672
Schenectady,
New York, IDA, Civic Facility Revenue Bonds (Union College Project), Series A, 5.45%, 12/01/09 (c)(d)	5,000	5,290,550
Schenectady,
New York, IDA, Civic Facility Revenue Refunding Bonds (Union College Project), Series A, 5.625%, 7/01/11 (c)(d)	3,000	3,363,510

See Notes to Financial Statements. — 24	SEMI-ANNUAL REPORT	FEBRUARY 28, 2009

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

Municipal Bonds	Par (000)	Value
New York (continued)
Education (concluded)
Westchester
County, New York, IDA, Civic Facility Revenue Bonds (Purchase College Foundation Housing Project), Series A, 5.75%, 12/01/31 (c)	$ 7,000	$ 6,964,090
		42,115,347
Health—7.4%
New York
City, New York, City IDA, Parking Facility Revenue Bonds (Royal Charter Properties Inc.-The New York and Pennsylvania Hospital Leasehold Project), 5.75%, 12/15/29 (a)	7,965	8,124,619
New York
State Dormitory Authority, Hospital Revenue Refunding Bonds (New York and Presbyterian Hospital), 5.50%, 8/01/11 (c)(k)	1,000	1,076,500
New York
State Dormitory Authority, Mortgage Revenue Bonds (Montefiore Medical Center), 5%, 8/01/33 (b)(e)(k)	1,000	929,650
New York
State Dormitory Authority, Non-State Supported Debt Revenue Bonds (Presbyterian Hospital of New York), 5%, 8/15/36 (a)(k)	4,000	3,860,960
New York
State Dormitory Authority Revenue Bonds:
(Gustavus Adolphus Child &
Family Services, Inc.), Series B, 5.50%, 7/01/18 (c)	2,058	2,099,016
(Hudson Valley Hospital Center, 5%,
8/15/36 (a)(k)	5,000	4,911,950
(New York State Rehabilitation
Association), Series A, 5.25%, 7/01/19 (l)	1,180	1,213,087
(New York State Rehabilitation
Association), Series A, 5.125%, 7/01/23 (l)	1,000	1,020,990
(Saint Barnabas Hospital), 5.45%,
8/01/35 (c)(k)	2,150	2,046,005
New York
State Dormitory Authority, Revenue Refunding Bonds (Saint Charles Hospital and Rehabilitation Center), Series A, 5.625%, 7/01/12 (e)	3,400	3,443,010
		28,725,787
Housing—5.2%
New York
City, New York, City Housing Development Corporation, M/F Housing Revenue Bonds, AMT:
Series C,
5%, 11/01/26	1,250	1,161,125
Series C,
5.05%, 11/01/36	2,000	1,623,520
Series H-1,
4.70%, 11/01/40	1,000	797,010
Series H-2,
5.125%, 11/01/34	2,340	2,071,391
New York
State, HFA, M/F Housing Revenue Bonds (Saint Philips Housing), AMT, Series A, 4.65%, 11/15/38 (m)	3,250	2,739,295
New York
State Mortgage Agency, Homeowner Mortgage Revenue Bonds, AMT:
Series 143,
4.90%, 10/01/37	1,000	842,060
Series 145,
5.125%, 10/01/37	1,000	884,730
New York
State Mortgage Agency, Homeowner Mortgage Revenue Refunding Bonds:
AMT Series
67, 5.70%, 10/01/17 (e)	2,140	2,151,770
AMT Series
133, 4.95%, 10/01/21	1,500	1,484,010
AMT Series
143, 4.85%, 10/01/27 (e)	2,000	1,794,060
Series 83,
5.55%, 10/01/27 (e)	2,100	2,100,966
New York
State Mortgage Agency Revenue Refunding Bonds, AMT, Series 82, 5.65%, 4/01/30 (e)	1,035	983,964
Yonkers,
New York, IDA, Revenue Bonds (Monastery Manor associates LP Project), AMT, 5.25%, 4/01/37	2,000	1,658,980
		20,292,881
State—14.7%
New York
State Dormitory Authority, Hospital Revenue Refunding Bonds (North General Hospital), 5.75%, 2/15/17 (h)	2,000	2,100,600
Municipal Bonds	Par (000)	Value
New York (continued)
State (concluded)
New York
State Dormitory Authority, Lease Revenue Bonds:
(Municipal Health Facilities
Improvement Program), Series 1, 5.50%, 1/15/14 (a)	$ 1,535	$ 1,642,450
(Office
Facilities Audit and Control), 5.50%, 4/01/23 (e)	645	646,071
(State University
Dormitory Facilities), 5%, 7/01/37 (c)	1,000	956,180
New York
State Dormitory Authority, Non-State Supported Debt Revenue Bonds (School District Financing Program) (a):
Series A,
5%, 10/01/35	450	435,200
Series C,
5%, 10/01/37	2,500	2,407,875
New York
State Dormitory Authority, Non-State Supported Debt, Revenue Refunding Bonds (a):
(NYS Association for Retarded
Children, Inc.), Series A, 5%, 7/01/26	1,500	1,498,170
(School District Financing
Program), Series A, 5%, 10/01/35	5,000	4,835,550
New York
State Dormitory Authority Revenue Bonds (School Districts Financing Program), (e):
Series D,
5%, 10/01/30	1,240	1,186,283
Series E,
5.75%, 10/01/30	6,900	7,000,050
New York
State Dormitory Authority, Revenue Refunding Bonds (School District Financing Program), Series I, 5.75%, 10/01/18 (e)	1,370	1,500,219
New York
State Dormitory Authority, State Personal Income Tax Revenue Bonds (Education), Series B, 5.75%, 3/15/36	5,000	5,354,450
New York
State Dormitory Authority, State Supported Debt Revenue Bonds (Mental Health Services Facilities),:
AMT, Series
C, 5.40%, 2/15/33 (a)	5,650	5,122,177
Series B,
5.25%, 2/15/14 (d)	1,550	1,792,823
Series B,
5%, 2/15/33 (a)	4,650	4,395,552
Series D,
5.875%, 8/15/10 (a)(d)	1,060	1,136,288
New York
State Thruway Authority, Highway and Bridge Trust Fund, Second Generation Revenue Bonds, Series B, 5%, 4/01/27	1,000	997,590
New York
State Thruway Authority, Second General Highway and Bridge Trust Fund Revenue Bonds, Series A, 5%, 4/01/26 (c)	8,700	8,761,596
New York
State Urban Development Corporation, Personal Income Tax Revenue Bonds (e):
Series C-1,
5%, 3/15/13 (d)	3,000	3,384,090
(State Facilities),
Series A-1, 5%, 3/15/29 (b)	2,000	2,001,720
		57,154,934
Tobacco—5.2%
Tobacco
Settlement Financing Corporation of New York Revenue Bonds, Series A-1 (c):
5.25%,
6/01/20	5,000	5,034,250
5.25%,
6/01/21	13,275	13,286,417
5.25%,
6/01/22	2,000	1,983,820
		20,304,487
Transportation—22.2%
Metropolitan
Transportation Authority, New York, Dedicated Tax Fund Revenue Bonds, Series A, 5%, 11/15/35 (e)	2,000	1,911,860
Metropolitan
Transportation Authority, New York, Revenue Bonds, Series C, 6.50%, 11/15/28	6,015	6,621,853
Metropolitan
Transportation Authority, New York, Revenue Refunding Bonds, Series A:
5.125%,
11/15/31 (f)	2,425	2,378,536
5.25%,
11/15/31 (b)(e)	2,500	2,483,400

See Notes to Financial Statements. — SEMI-ANNUAL REPORT	FEBRUARY 28, 2009	25

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

Municipal Bonds	Par (000)	Value
New York (concluded)
Transportation
(concluded)
Metropolitan
Transportation Authority, New York, Transit Facilities Revenue Bonds, Series C, 4.75%, 7/01/12 (a)(d)	$ 2,535	$ 2,804,470
Metropolitan
Transportation Authority, New York, Transportation Revenue Refunding Bonds, Series F, 5.25%, 11/15/12 (d)(e)	6,300	7,143,443
New York
State Thruway Authority, General Revenue Bonds, Series F, 5%, 1/01/30 (c)	5,000	4,793,500
New York
State Thruway Authority, General Revenue Refunding Bonds (a):
Series G,
4.75%, 1/01/29	1,250	1,206,300
Series G,
4.75%, 1/01/30	1,000	952,860
Series H,
5%, 1/01/37 (b)	8,500	8,130,420
Port
Authority of New York and New Jersey, Consolidated Revenue Bonds, AMT, 141st Series, 4.50%, 9/01/35 (l)	1,000	759,000
Port
Authority of New York and New Jersey, Special Obligation Revenue Bonds (JFK International Air Terminal LLC), AMT, Series 6 (e):
6.25%,
12/01/11	3,000	3,005,130
6.25%,
12/01/15	7,830	7,384,707
5.90%,
12/01/17	7,000	6,402,550
5.75%,
12/01/22	26,725	21,548,635
Triborough
Bridge and Tunnel Authority, New York, Subordinate Revenue Bonds:
5%,
11/15/28 (c)	2,465	2,475,082
Series A,
5.25%, 11/15/30 (e)	6,000	6,054,360
		86,056,106
Utilities—15.5%
Long Island
Power Authority, New York, Electric System Revenue Bonds:
Series A,
5%, 9/01/29 (c)	3,000	2,855,820
Series A,
6%, 5/01/33 (f)	1,500	1,582,860
Series A,
5%, 9/01/34 (c)	4,700	4,466,175
Series A,
5.75%, 4/01/39 (f)	1,000	1,050,740
Series B,
5%, 12/01/35 (a)	3,500	3,384,464
New York
City, New York, City Municipal Water Finance Authority, Water and Sewer System Revenue Bonds, Series A, 4.25%, 6/15/39 (a)	2,900	2,404,360
New York
City, New York, City Municipal Water Finance Authority, Water and Sewer System, Revenue Refunding Bonds:
Series A,
5.125%, 6/15/34 (e)	1,250	1,242,013
Series A,
5%, 6/15/35 (c)	3,500	3,409,805
Series C,
5%, 6/15/35 (e)	1,000	974,230
Series F,
5%, 6/15/29 (a)	500	500,500
New York
State Environmental Facilities Corporation, Water Facilities Revenue Bonds (Long Island Water Corp. Project), AMT, Series A, 4.90%, 10/01/34 (e)	6,000	4,614,000
New York
State Environmental Facilities Corporation, Water Facilities Revenue Refunding Bonds (Spring Valley Water Company), Series B, 6.15%, 8/01/24 (c)	4,400	4,405,940
New York
City, New York, City Municipal Water Finance Authority, Second General Resolution, Water and Sewer System Revenue Bonds, Series FF-2, 5.50%, 6/15/40	2,400	2,478,888
New York
City, New York, City Municipal Water Finance Authority, Water and Sewer System Revenue Bonds, Series A:
5.75%,
6/15/11 (d)(e)	23,000	25,338,410
5.75%,
6/15/40	1,400	1,491,685
		60,199,890
Total Municipal Bonds in New York		523,741,834
Municipal Bonds	Par (000)	Value
Guam—1.2%
Transportation—1.2%
A.B. Won
Guam International Airport Authority, General Revenue Refunding Bonds, AMT, Series C (e):
5.25%,
10/01/21	$ 3,700	$ 3,468,750
5.25%,
10/01/22	1,050	967,354
Total Municipal Bonds in Guam		4,436,104
Puerto Rico—15.3%
Housing—0.8%
Puerto Rico
Housing Financing Authority, Capital Funding Program, Subordinate Revenue Refunding Bonds, 5.125%, 12/01/27	3,000	2,962,380
State—5.9%
Puerto Rico
Commonwealth, GO, Refunding, Sub-Series C-7 (e):
6%, 7/01/27	2,000	1,960,620
6%, 7/01/28	4,000	3,888,240
Puerto Rico
Commonwealth Highway and Transportation Authority, Highway Revenue Refunding Bonds, Series CC, 5.50%, 7/01/31 (a)	4,000	4,035,680
Puerto Rico
Commonwealth Infrastructure Financing Authority, Special Tax and Capital Appreciation Revenue Bonds, Series A (n):
4.62%,
7/01/31 (b)	10,280	1,842,690
4.66%,
7/01/33 (b)	5,500	835,450
4.66%,
7/01/34 (c)	9,300	1,304,232
4.67%,
7/01/37 (c)	2,200	246,400
Puerto Rico
Commonwealth, Public Improvement, GO, Refunding, Series A, 5.50%, 7/01/20 (e)	1,970	1,851,032
Puerto Rico
Convention Center District Authority, Hotel Occupancy Tax Revenue Bonds, Series A, 5%, 7/01/31 (c)	3,270	2,659,491
Puerto Rico
Municipal Finance Agency, GO, Series A, 5%, 8/01/30 (a)	2,000	1,877,340
Puerto Rico
Public Buildings Authority, Government Facilities Revenue Refunding Bonds, Series M-3, 6%, 7/01/28 (e)(o)	2,500	2,430,150
		22,931,325
Transportation—6.2%
Puerto Rico
Commonwealth Highway and Transportation Authority, Highway Revenue Refunding Bonds, Series CC (a):
5.25%,
7/01/33	1,000	964,000
5.25%,
7/01/34	3,895	3,746,990
5.25%,
7/01/36	3,750	3,587,288
Puerto Rico
Commonwealth Highway and Transportation Authority, Transportation Revenue Bonds, 5.25%, 7/01/17 (b)	4,800	4,565,952
Puerto Rico
Commonwealth Highway and Transportation Authority, Transportation Revenue Refunding Bonds, Series D, 5.75%, 7/01/12 (d)	10,000	11,234,600
		24,098,830
Utilities—2.4%
Puerto Rico
Commonwealth Aqueduct and Sewer Authority, Senior Lien Revenue Bonds, Series A, 5.125%, 7/01/47 (f)	9,950	8,433,023
Puerto Rico
Electric Power Authority, Power Revenue Bonds, Series NN, 5.125%, 7/01/13 (d)	940	1,068,338
		9,501,361
Total Municipal Bonds in Puerto Rico		59,493,896
Total Municipal Bonds—151.3%		587,671,834

See Notes to Financial Statements. — 26	SEMI-ANNUAL REPORT	FEBRUARY 28, 2009

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

Municipal Bonds Transferred to Tender Option Bond Trusts (p)	Par (000)	Value
New York—22.5
County/City/Special District/ School
District—4.7%
Erie
County, New York, IDA, School Facility Revenue Bonds (City of Buffalo Project), 5.75%, 5/01/24 (i)	$ 4,158	$ 4,192,413
New York
City, New York, GO, Series J, 5%, 5/15/23	6,800	6,723,840
New York
City, New York, Sales Tax Asset Receivable Corporation Revenue Bonds, Series A, 5%, 10/15/32 (c)	7,000	7,184,485
		18,100,738
Education—1.4%
New York
State Dormitory Authority, Non-State Supported Debt Revenue Bonds (New York University), Series A, 5%, 07/01/38	5,498	5,293,394
Transportation—16.4%
Metropolitan
Transportation Authority, New York, Dedicated Tax Fund Revenue Bonds, Series A, 5%, 11/15/31 (d)	7,002	6,770,743
Metropolitan
Transportation Authority, New York, Revenue Refunding Bonds, Series A (i):
5%,
11/15/30	5,010	4,886,453
5.75%,
11/15/32	29,000	29,432,390
Port
Authority of New York and New Jersey, Consolidated Revenue Bonds, AMT, 137th Series, 5.125%, 7/15/30 (i)	2,500	2,241,000
Triborough
Bridge and Tunnel Authority, New York, Revenue Refunding Bonds:
5.25%,
11/15/23 (d)	12,000	12,448,560
5%,
11/15/32 (d)	8,309	8,160,968
		63,940,114
Total Municipal Bonds Transferred to Tender Option Bond Trusts—22.5%		87,334,246
Total Long-Term Investments (Cost—$716,021,291)—173.8%		675,006,080
Short-Term Securities
New York—0.1%
New York
City, New York, GO, VRDN, Sub-Series A-6, 0.65%, 3/02/09 (a)(q)	375	375,000
	Shares
Money Market
Fund—4.1%
CMA New
York Municipal Money Fund, 0.29% (r)(s)	16,044,997	16,044,997
Total Short-Term Securities (Cost—$16,417,493)—4.2%		16,419,997
Total Investments
(Cost—$732,438,784*)—178.0%		691,426,077
Other Assets Less Liabilities—1.7%		6,754,688
Liability for Trust Certificates, Including Interest Expense Payable—(14.6)%		(56,744,031	)
Preferred Shares, at Redemption
Value—(65.1)%		(252,909,375	)
Net Assets Applicable to Common
Shares—100.0%		$ 388,527,359

• The cost and unrealized appreciation (depreciation) of investments as of February 28, 2009, as computed for federal income tax purposes, were as follows:

Aggregate cost	$
Gross unrealized appreciation	$ 10,450,614
Gross unrealized depreciation	(52,057,314	)
Net unrealized depreciation	$ (41,606,700	)

(a)	FSA Insured.
(b)	FGIC Insured.
(c)	AMBAC Insured.
(d)	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.
(e)	NPFGC Insured.
(f)	Assured Guaranty Insured.
(g)	Variable rate security. Rate shown is as of report date.
(h)	XL Capital Insured.
(i)	Radian Insured.
(j)	ACA Insured.
(k)	FHA Insured.
(l)	CIFG Insured.
(m)	FNMA Collateralized.
(n)	Represents a zero-coupon bond. Rate shown reflects the
current yield as of report date.
(o)	Commonwealth Guaranteed.
(p)	Securities represent bonds transferred to a tender option
bond trust in exchange for which the Trust acquired residual interest
certificates. These securities serve as collateral in a financing
transaction. See Note 1 of the Notes to Financial Statements for details of
municipal bonds transferred to tender option bond trusts.
(q)	Security may have a maturity date of more than one year at
time of issuance, but has various rate and demand features that qualify it as
a short-term security. Rate shown is as of report date. This rate changes
periodically based on prevailing market rates.
(r)	Investments in companies considered to be an affiliate of
the Trust, for purposes of Section 2(a)(3) of the Investment Company Act of
1940, were as follows:

Affiliate	Net Activity	Income
CMA New York Municipal Money Fund	12,575,524	$ 78,960

(s)	Represents the current yield as of report date.
•	For Trust compliance purposes, the Trust’s industry
classifications refer to any one or more of the industry sub-classifications
used by one or more widely recognized market indexes or ratings group
indexes, and/or as defined by Trust management. This definition may not apply
for purposes of this report which may combine industry sub-classifications
for reporting ease.
•	Effective September 1, 2008, the Trust adopted Financial
Accounting Standards Board Statement of Financial Accounting Standards No.
157, “Fair Value Measurements” (“FAS 157”). FAS 157 clarifies the definition
of fair value, establishes a framework for measuring fair values and requires
additional disclosures about the use of fair value measurements. Various
inputs are used in determining the fair value of investments, which are as
follows:
	•	Level 1 - price quotations in active markets/exchanges for
identical securities
	•	Level 2 - other observable inputs (including, but not
limited to: quoted prices for similar assets or liabilities in markets that
are 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 circumstance, to the extent observable inputs
are not available (including the Trust’s own assumption used in determining
the fair value of investments)
	The inputs or methodology used for valuing securities are
not necessarily an indication of the risk associated with investing in those
securities. For information about the Trust’s 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
February 28, 2009 in determining the fair valuation of the Trust’s
investments:

| Valuation Inputs | Investments
in Securities |
| --- | --- |
| | Assets |
| Level 1 | $ 16,044,997 |
| Level 2 | 675,381,079 |
| Level 3 | — |
| Total | $ 691,426,076 |

See Notes to Financial Statements. — SEMI-ANNUAL REPORT	FEBRUARY 28, 2009	27

Schedule of Investments February 28, 2009 (Unaudited)
(Percentages
shown are based on Net Assets)

Municipal Bonds	Par (000)	Value
New
Jersey—132.9%
Corporate—9.6%
New Jersey
EDA, Solid Waste Disposal Facilities Revenue Bonds (Waste Management Inc.), AMT, Series A, 5.30%, 6/01/15	$ 1,000	$ 919,940
New Jersey
EDA, Special Facility Revenue Bonds (Continental Airlines Inc. Project), AMT, 7%, 11/15/30	2,335	1,603,748
Port
Authority of New York and New Jersey, Special Obligation Revenue Bonds (Continental Airlines, Inc. - LaGuardia Project), AMT, 9.125%, 12/01/15	120	120,162
		2,643,850
County/City/Special District/School
District—12.5%
Essex
County, New Jersey, Improvement Authority, Project Consolidation Revenue Refunding Bonds, 5.50%, 10/01/29 (a)	790	808,620
Middlesex
County, New Jersey, Improvement Authority, Subordinate Revenue Bonds (Heldrich Center Hotel/ Conference Project), Series B, 6.25%, 1/01/37	560	317,313
Salem
County, New Jersey, Improvement Authority Revenue Bonds (Finlaw State Office Building Project), 5.25%, 8/15/38 (b)	100	101,087
Vineland,
New Jersey, Electric Utility, GO, Refunding, AMT (a):
5.30%,
5/15/29	1,000	896,980
5.375%,
5/15/32	1,500	1,310,355
		3,434,355
Education—15.6%
New Jersey
State Educational Facilities Authority Revenue Bonds:
(Fairleigh
Dickinson University), Series D, 6%, 7/01/25	1,000	880,440
(Georgian
Court College Project), Series C, 6.50%, 7/01/13 (c)	630	752,604
(Montclair
State University), Series J, 5.25%, 7/01/38	180	179,186
New Jersey
State Educational Facilities Authority, Revenue Refunding Bonds:
(College of
New Jersey), Series D, 5%, 7/01/35 (b)	1,010	1,008,465
(Fairleigh
Dickinson University), Series C, 6%, 7/01/20	1,000	933,600
(Fairleigh
Dickinson University), Series C, 5.50%, 7/01/23	500	425,885
(Georgian
Court University), Series D, 5%, 7/01/33	150	114,020
		4,294,200
Health—42.4%
New Jersey
EDA, First Mortgage Revenue Bonds (Lions Gate Project), Series A:
5.75%,
1/01/25	150	103,392
5.875%,
1/01/37	265	164,446
New Jersey
EDA, First Mortgage Revenue Refunding Bonds (The Winchester Gardens at Ward Homestead Project), Series A, 5.80%, 11/01/31	2,500	1,894,525
New Jersey
EDA, Retirement Community Revenue Refunding Bonds (Seabrook Village, Inc.), 5.25%, 11/15/26	470	323,811
New Jersey
Health Care Facilities Financing Authority, Health System Revenue Bonds (Catholic Health East), Series A, 5.375%, 11/15/12 (c)	2,000	2,267,440
New Jersey
Health Care Facilities Financing Authority Revenue Bonds:
(Kennedy
Health System), 5.625%, 7/01/31	2,000	1,790,720
(Meridian
Health), Series I, 5%, 7/01/38 (d)	250	240,317
(South
Jersey Hospital System), 6%, 7/01/12 (c)	2,500	2,840,125
New Jersey
Health Care Facilities Financing Authority, Revenue Refunding Bonds:
(Atlantic
City Medical Center), 5.75%, 7/01/25	1,110	1,096,025
Municipal Bonds	Par (000)	Value
New Jersey (concluded)
Health (concluded)
(Saint
Barnabas Health Care System), Series B, 5.902%, 7/01/30 (e)	$ 500	$ 66,345
(Saint
Barnabas Health Care System), Series B, 5.697%, 7/01/36 (e)	3,600	257,652
(Saint
Barnabas Health Care System), Series B, 5.763%, 7/01/37 (e)	3,600	233,352
(South
Jersey Hospital System), 5%, 7/01/46	500	388,015
		11,666,165
Housing—6.3%
New Jersey
State Housing and Mortgage Finance Agency Revenue Bonds, Series AA:
6.375%,
10/01/28	1,000	1,059,520
6.50%,
10/01/38	450	469,201
New Jersey
State Housing and Mortgage Finance Agency, S/F Housing Revenue Refunding Bonds, AMT, Series T, 4.70%, 10/01/37	250	204,932
		1,733,653
State—26.7%
Garden
State Preservation Trust of New Jersey, Capital Appreciation Revenue Bonds, Series B, 5.238%, 11/01/27 (b)(e)	4,000	1,467,320
New Jersey
EDA, Cigarette Tax Revenue Bonds, 5.75%, 6/15/34 (f)	2,000	1,452,320
New Jersey
EDA, EDR, Refunding (Kapkowski Road Landfill Reclamation Improvement District Project), 6.50%, 4/01/28	2,250	1,689,637
New Jersey
EDA, Revenue Bonds (Newark Downtown District Management Corporation), 5.125%, 6/15/37	250	167,452
New Jersey
EDA, School Facilities Construction Revenue Bonds:
Series U, 5%,
9/01/37 (g)	500	484,495
Series Z,
6%, 12/15/34 (d)	1,000	1,071,120
New Jersey
State Transportation Trust Fund Authority, Transportation System Revenue Bonds:
Series A,
5.625%, 12/15/28 (d)	200	208,630
Series A,
6%, 12/15/38	500	527,220
Series C,
4.836%, 12/15/32 (b)(e)	1,250	290,200
		7,358,394
Transportation—19.3%
Hudson
County, New Jersey, Improvement Authority, Parking Revenue Bonds (Harrison Parking Facility Project), Series C, 5.375%, 1/01/44 (d)	800	805,352
Port Authority of New York and New Jersey, Consolidated Revenue Bonds, AMT, 126th Series, 5.25%, 5/15/37 (a)(h)	2,250	1,939,928
Port
Authority of New York and New Jersey, Consolidated Revenue Refunding Bonds:
125th
Series, 5%, 4/15/32 (b)	1,500	1,499,505
AMT, 152nd
Series, 5.75%, 11/01/30	525	509,765
AMT, 152nd
Series, 5.25%, 11/01/35	630	556,070
		5,310,620
Utilities—0.5%
Rahway
Valley Sewerage Authority, New Jersey, Sewer Revenue Bonds, CABS, Series A, 4.384%, 9/01/33 (a)(e)	650	145,217
Total Municipal Bonds in New Jersey		36,586,454
Multi-State—7.8%
Housing—7.8%
Charter Mac
Equity Issuer Trust, 7.20%, 10/31/52 (i)(j)	2,000	2,165,740

| See Notes to Financial Statements. — 28 | SEMI-ANNUAL
REPORT | FEBRUARY 28, 2009 |
| --- | --- | --- |

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

Municipal Bonds	Par (000)	Value
Puerto Rico—16.2%
Housing—0.9%
Puerto Rico
Housing Financing Authority, Capital Funding Program, Subordinate Revenue Refunding Bonds, 5.125%, 12/01/27	$ 265	$ 261,677
State—4.4%
Puerto Rico
Commonwealth Infrastructure Financing Authority, Special Tax and Capital Appreciation Revenue Bonds, Series A (e)(g):
4.353%,
7/01/37	1,750	196,000
4.523%,
7/01/43	1,000	70,950
Puerto Rico
Public Buildings Authority, Government Facilities Revenue Refunding Bonds:
Series D,
5.25%, 7/01/27	615	532,073
Series M-3,
6%, 7/01/27 (a)(k)	425	416,632
		1,215,655
Transportation—3.7%
Puerto Rico
Commonwealth Highway and Transportation Authority, Highway Revenue Refunding Bonds, Series CC, 5.50%, 7/01/31 (d)	1,000	1,008,920
Utilities—7.2%
Puerto Rico
Electric Power Authority, Power Revenue Bonds, Series II, 5.25%, 7/01/12 (c)	1,750	1,978,060
Total Municipal Bonds in Puerto Rico		4,464,312
Total Long-Term Investments (Cost—$48,426,748)—156.9%		43,216,506
Short-Term Securities	Shares
Money Market
Funds—11.1%
CMA New
Jersey Municipal Money Fund, 0.55% (l)(m)	3,049,223	3,049,223
Total Short-Term Securities
(Cost—$3,049,223)—11.1%		3,049,223
Total Investments
(Cost—$51,475,971*)—168.0%		46,265,729
Other Assets Less Liabilities—1.7%		471,892
Preferred Shares, at Redemption
Value—(69.7)%		(19,202,885	)
Net Assets Applicable to Common
Shares—100.0%		$ 27,534,736

• The cost and unrealized appreciation (depreciation) of investments as of February 28, 2009, as computed for federal income tax purposes, were as follows:

Aggregate cost	$
Gross unrealized appreciation	$ 1,586,805
Gross unrealized depreciation	(6,684,224	)
Net unrealized depreciation	$ (5,097,419	)

(a)	NPFGC Insured.
(b)	FSA Insured.
(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)	Assured Guaranty Insured.
(e)	Represents a zero-coupon bond. Rate shown reflects the
current yield as of report date.
(f)	Radian Insured.
(g)	AMBAC Insured.
(h)	FGIC Insured.
(i)	Security represents a beneficial interest in a trust. The
collateral deposited into the trust is federally tax-exempt revenue bonds
issued by various state or local governments, or their respective agencies or
authorities. The security is subject to remarketing prior to its stated
maturity, and is subject to mandatory redemption at maturity.
(j)	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.
(k)	Commonwealth Guaranteed.
(l)	Represents the current yield as of report date.
(m)	Investments in companies considered to be an affiliate of
the Trust, for purposes of Section 2(a)(3) of the Investment Company Act of
1940, were as follows:

Affiliate	Net Activity	Income
CMA New Jersey Municipal Money Fund	2,221,016	$ 37,573

| • | For Trust compliance purposes, the Trust’s industry
classifications refer to any one or more of the industry sub-classifications
used by one or more widely recognized market indexes or ratings group
indexes, and/or as defined by Trust management. This definition may not apply
for purposes of this report which may combine industry sub-classifications
for reporting ease. | |
| --- | --- | --- |
| • | Effective September 1, 2008, the Trust adopted Financial
Accounting Standards Board Statement of Financial Accounting Standards No.
157, “Fair Value Measurements” (“FAS 157”). FAS 157 clarifies the definition
of fair value, establishes a framework for measuring fair values and requires
additional disclosures about the use of fair value measurements. Various
inputs are used in determining the fair value of investments, which are as
follows: | |
| | • | Level 1 - price quotations in active markets/exchanges for
identical securities |
| | • | Level 2 - other observable inputs (including, but not
limited to: quoted prices for similar assets or liabilities in markets that
are 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 circumstance, to the extent observable inputs
are not available (including the Trust’s own assumption used in determining
the fair value of investments) |
| | The inputs or methodology used for valuing securities are
not necessarily an indication of the risk associated with investing in those
securities. For information about the Trust’s 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
February 28, 2009 in determining the fair valuation of the Trust’s
investments: | |

| Valuation Inputs | Investments
in Securities |
| --- | --- |
| | Assets |
| Level 1 | $ 3,049,223 |
| Level 2 | 43,216,506 |
| Level 3 | — |
| Total | $ 46,265,729 |

| See Notes to Financial Statements. — SEMI-ANNUAL
REPORT | FEBRUARY 28, 2009 | 29 |
| --- | --- | --- |

| Schedule of Investments February 28, 2009
(Unaudited) |
| --- |
| (Percentages
shown are based on Net Assets) |

Municipal Bonds	Par (000)	Value
New
York—125.4%
County/City/Special District/School
District—28.0%
Erie
County, New York, IDA, School Facility Revenue Bonds (City of Buffalo Project), Series A, 5.75%, 5/01/25 (a)	$ 1,000	$ 1,035,500
Hudson
Yards Infrastructure Corporation, New York, Revenue Bonds, Series A, 5%, 2/15/47 (b)	3,000	2,430,570
New York
City, New York, City IDA, PILOT Revenue Bonds:
(Queens
Baseball Stadium Project), 6.375%, 1/01/39 (c)	150	158,692
(Queens
Baseball Stadium Project), 5%, 1/01/46 (d)	3,225	2,525,272
(Yankee
Stadium Project), 4.75%, 3/01/46 (e)	1,000	742,770
New York
City, New York, City Transitional Finance Authority, Building Aid Revenue Bonds, Series S-2, 5%, 1/15/37 (a)(b)	850	825,069
New York
City, New York, City Transitional Finance Authority, Future Tax Secured, Revenue Refunding Bonds, Series B, 5%, 5/01/30 (d)	3,265	3,214,458
New York
City, New York, Sales Tax Asset Receivable Corporation Revenue Bonds, Series A, 5%, 10/15/32 (d)	6,000	6,043,560
New York Convention
Center Development Corporation, New York, Revenue Bonds (Hotel Unit Fee Secured), 5%, 11/15/44 (d)	6,175	5,642,036
		22,617,927
Education—32.0%
Herkimer
County, New York, IDA, Civic Facility Revenue Bonds (Herkimer College Foundation Inc.), 6.25%, 8/01/34	1,000	743,380
Madison
County, New York, IDA, Civic Facility Revenue Bonds (Colgate University Project), Series A, 5%, 7/01/30 (d)	1,000	974,330
New York
City, New York, IDA, Civic Facility Revenue Bonds (Lycee Francais de New York Project), Series A, 5.375%, 6/01/23 (f)	2,500	2,037,325
New York
City, New York, Trust for Cultural Resources Revenue Refunding Bonds (American Museum of Natural History), Series A, 5%, 7/01/44 (e)	4,100	3,891,638
New York
State Dormitory Authority, Non-State Supported Debt, Revenue Refunding Bonds (Mount Sinai School of Medicine of New York University), 5%, 7/01/35 (e)	2,500	2,360,125
New York
State Dormitory Authority Revenue Bonds:
(Brooklyn
Law School), Series B, 5.125%, 7/01/30 (g)	4,000	3,599,280
(Fashion
Institute of Technology Student Housing Corporation), 5.125%, 7/01/14 (b)(h)	2,500	2,887,200
(New York
University), Series 2, 5%, 7/01/41 (d)	7,000	6,665,890
(SS Joachim
and Anne Residence), 5.25%, 7/01/27	3,000	2,708,280
		25,867,448
Health—20.6%
New York
State Dormitory Authority, Hospital Revenue Bonds (Lutheran Medical Center), 5%, 8/01/31 (e)(i)	4,500	4,250,610
New York
State Dormitory Authority, Hospital Revenue Refunding Bonds (New York and Presbyterian Hospital), 5%, 8/01/32 (d)(i)	4,000	3,758,240
New York
State Dormitory Authority, Mortgage Hospital Revenue Bonds (Saint Barnabas Hospital), Series A, 5%, 2/01/31 (d)(i)	5,000	4,726,150
New York
State Dormitory Authority Revenue Bonds (Hudson Valley Hospital Center), 5%, 8/15/36 (a)(i)(j)	2,000	1,964,780
New York
State Dormitory Authority, Revenue Refunding Bonds (Winthrop S. Nassau University), Series A, 5.25%, 7/01/31 (d)	2,000	1,962,460
		16,662,240
Municipal Bonds	Shares	Value
New York
(concluded)
State—12.7%
New York
State Dormitory Authority, Lease Revenue Bonds (State University Dormitory Facilities), 5%, 7/01/37 (d)	$ 500	$ 478,090
New York
State Dormitory Authority, Non-State Supported Debt, Revenue Refunding Bonds, Series A (a):
(NYS
Association for Retarded Children, Inc.), 5%, 7/01/26	2,000	1,997,560
(School
District Financing Program), 5%, 10/01/35	1,000	967,110
New York
State Dormitory Authority Revenue Bonds (School Districts Financing Program), Series D, 5%, 10/01/30 (e)	3,500	3,348,380
New York
State Dormitory Authority, Revenue Refunding Bonds (School District Financing Program), Series A, 5%, 4/01/31 (e)	2,000	1,904,820
New York
State Dormitory Authority, State Personal Income Tax Revenue Bonds (Education), Series B, 5.75%, 3/15/36	600	642,534
New York
State Dormitory Authority, State Supported Debt Revenue Bonds (Mental Health Services Facilities), Series A, 5%, 2/15/33 (a)	1,000	945,280
		10,283,774
Transportation—23.8%
Metropolitan
Transportation Authority, New York, Revenue Bonds, Series C, 6.50%, 11/15/28	750	825,667
Metropolitan
Transportation Authority, New York, Revenue Refunding Bonds (b)(e):
Series A,
5.25%, 11/15/31	4,250	4,221,780
Series E,
5.25%, 11/15/31	2,660	2,628,479
Metropolitan
Transportation Authority, New York, Service Contract Revenue Refunding Bonds, Series A, 5%, 7/01/30 (d)	8,000	7,764,480
New York
State Thruway Authority, General Revenue Refunding Bonds, Series H, 5%, 1/01/37 (a)(b)	4,000	3,826,080
		19,266,486
Utilities—8.3%
Long Island
Power Authority, New York, Electric System Revenue Bonds, Series C, 5.25%, 9/01/29 (k)	1,000	980,310
Long Island
Power Authority, New York, Electric System Revenue Refunding Bonds:
Series A,
6%, 5/01/33 (c)	2,000	2,110,480
Series A,
5.75%, 4/01/39 (c)	1,690	1,775,751
Series F,
4.25%, 5/01/33 (e)	1,415	1,158,673
New York
City, New York, City Municipal Water Finance Authority, Second General Resolution, Water and Sewer System Revenue Bonds, Series FF-2, 5.50%, 6/15/40	400	413,148
New York
City, New York, City Municipal Water Finance Authority, Water and Sewer System Revenue Bonds, Series A, 5.75%, 6/15/40	300	319,647
		6,758,009
Total Municipal Bonds in New York		101,455,884
Puerto
Rico—12.6%
Education—4.1%
Puerto Rico
Industrial, Tourist, Educational, Medical and Environmental Control Facilities Revenue Bonds (University Plaza Project), Series A, 5%, 7/01/33 (e)	1,000	805,330
Puerto Rico
Industrial, Tourist, Educational, Medical and Environmental Control Facilities, Revenue Refunding Bonds (Polytechnic University), Series A, 5%, 8/01/32 (f)	4,000	2,491,160
		3,296,490

| See Notes to Financial Statements. — 30 | SEMI-ANNUAL
REPORT | FEBRUARY 28, 2009 |
| --- | --- | --- |

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

Municipal Bonds	Par (000)	Value
Puerto Rico
(concluded)
State—4.2%
Puerto Rico
Commonwealth, GO, Refunding, Sub-Series C-7, 6%, 7/01/27 (e)	$ 1,000	$ 980,310
Puerto Rico
Commonwealth Highway and Transportation Authority, Highway Revenue Refunding Bonds, Series CC 5.50%, 7/01/31 (a)	1,000	1,008,920
Puerto Rico
Municipal Finance Agency, GO, Series A, 5%, 8/01/30 (a)	1,000	938,670
Puerto Rico
Public Buildings Authority, Government Facilities Revenue Refunding Bonds, Series M-3, 6%, 7/01/28 (e)(l)	500	486,030
		3,413,930
Transportation—1.2%
Puerto Rico
Commonwealth Highway and Transportation Authority, Highway Revenue Refunding Bonds, Series CC 5.25%, 7/01/34 (a)	1,000	962,000
Utilities—3.1%
Puerto Rico
Commonwealth Aqueduct and Sewer Authority, Senior Lien Revenue Bonds, Series A, 5.125%, 7/01/47 (c)	1,925	1,631,515
Puerto Rico
Electric Power Authority, Power Revenue Refunding Bonds, Series SS, 5%, 7/01/25 (e)	1,000	901,500
		2,533,015
Total Municipal Bonds in Puerto Rico		10,205,435
Total Municipal Bonds—138.0%		111,661,319
Municipal Bonds Transferred to Tender Option Bond Trusts (m)
New
York—18.8%
Transportation—18.8%
Metropolitan
Transportation Authority, New York, Revenue Refunding Bonds, Series A, 5%, 11/15/30 (a)	6,080	5,930,067
Triborough
Bridge and Tunnel Authority, New York, Revenue Refunding Bonds, 5%, 11/15/32 (e)	9,404	9,236,331
Total Municipal Bonds Transferred to Tender Option Bond Trusts—18.8%		15,166,398
Total Long-Term Investments (Cost—$135,418,807)—156.8%		126,827,717
Short-Term Securities
New
York—0.1%
New York
City, New York, GO, Refunding, VRDN, Series H, Sub-Series H-3, 0.60%, 3/02/09 (a)(n)	50	50,000
	Shares
Money Market
Funds—7.4%
CMA New York Municipal Money Fund, 0.29% (o)(p)	6,009,862	6,009,862
Total Short-Term Securities
(Cost—$6,059,862)—7.5%		6,059,862
Total Investments
(Cost—$141,428,669*)—164.3%		132,887,579
Liabilities in Excess of Other
Assets—(1.2)%		(952,923	)
Liability for Trust Certificates, Including Interest Expense and Fees Payable—(11.6)%		(9,366,554	)
Preferred Shares, at Redemption
Value—(51.5)%		(41,678,083	)
Net Assets Applicable to Common
Shares—100.0%		$ 80,890,019

• The cost and unrealized appreciation (depreciation) of investments as of February 28, 2009, as computed for federal income tax purposes, were as follows:

Aggregate cost	$
Gross unrealized appreciation	$ 754,569
Gross unrealized depreciation	(9,554,526	)
Net unrealized depreciation	$ (8,799,957	)

(a)	FSA Insured.
(b)	FGIC Insured.
(c)	Assured Guaranty Insured.
(d)	AMBAC Insured.
(e)	MBIA Insured.
(f)	ACA Insured.
(g)	XL Capital Insured.
(h)	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.
(i)	FHA Insured.
(j)	BHAC Insured.
(k)	CIFG Insured.
(l)	Commonwealth Guaranteed.
(m)	Securities represent bonds transferred to a tender option
bond trust in exchange for which the Trust acquired residual interest
certificates. These securities serve as a collateral in a financing
transaction. See Note 1 of the Notes to Financial Statements for details of
municipal bonds transferred to tender option bond trusts.
(n)	Security may have a maturity of more than one year at time
of issuance, but has variable rate and demand features that qualify it as a
short-term security. Rate shown is as of report date. This rate changes
periodically based upon prevailing market rates.
(o)	Represents the current yield as of report date.
(p)	Investments in companies considered to be an affiliate of
the Trust, for purposes of Section 2(a)(3) of the Investment Company Act of
1940, were as follows:

Affiliate	Net — Activity	Income
CMA New York Municipal Money Fund	6,009,562	$ 10,895

| • | For Trust compliance purposes, the Trust’s industry
classifications refer to any one or more of the industry sub-classifications
used by one or more widely recognized market indexes or ratings group
indexes, and/or as defined by Trust management. This definition may not apply
for purposes of this report which may combine industry sub-classifications
for reporting ease. | |
| --- | --- | --- |
| • | Effective September 1, 2008, the Trust adopted Financial
Accounting Standards Board Statement of Financial Accounting Standards No.
157, “Fair Value Measurements” (“FAS 157”). FAS 157 clarifies the definition
of fair value, establishes a framework for measuring fair values and requires
additional disclosures about the use of fair value measurements. Various
inputs are used in determining the fair value of investments, which are as
follows: | |
| | • | Level 1 - price quotations in active markets/exchanges for
identical securities |
| | • | Level 2 - other observable inputs (including, but not
limited to: quoted prices for similar assets or liabilities in markets that
are 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 circumstance, to the extent observable inputs
are not available (including the Trust’s own assumption used in determining
the fair value of investments) |

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Trust’s 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 February 28, 2009 in determining the fair valuation of the Trust’s investments:

| Valuation Inputs | Investments
in Securities |
| --- | --- |
| | Assets |
| Level 1 | $ 6,009,862 |
| Level 2 | 126,877,717 |
| Level 3 | — |
| Total | $ 132,887,579 |

See Notes to Financial Statements. — SEMI-ANNUAL REPORT	FEBRUARY 28, 2009	31

| Schedule of Investments February 28, 2009
(Unaudited) |
| --- |
| (Percentages shown
are based on Net Assets) |

Municipal Bonds	Par (000)	Value
New York—125.2%
Corporate—11.1%
Essex
County, New York, IDA, Environmental Improvement Revenue Bonds (International Paper Company Project), AMT, Series A, 6.625%, 9/01/32	$ 100	$ 68,277
New York
City, New York, City IDA, Special Facility Revenue Bonds, AMT:
(American Airlines, Inc. - JFK
International Airport), 7.625%, 8/01/25	750	563,978
(Continental
Airlines Inc. Project), 7.75%, 8/01/31	1,000	737,620
Port
Authority of New York and New Jersey, Special Obligation Revenue Bonds (Continental Airlines, Inc. - LaGuardia Project), AMT, 9.125%, 12/01/15	2,340	2,343,159
Suffolk
County, New York, IDA, IDR (Keyspan-Port Jefferson), AMT, 5.25%, 6/01/27	500	405,660
		4,118,694
County/City/Special District/School
District—20.5%
Hudson Yards
Infrastructure Corporation, New York, Revenue Bonds, Series A:
4.50%,
2/15/47 (a)	1,000	738,570
5%, 2/15/47
(b)	500	405,095
New York
City, New York, City Health and Hospital Corporation, Health System Revenue Bonds, Series A, 5.375%, 2/15/26	1,100	1,089,715
New York
City, New York, City IDA, PILOT Revenue Bonds:
(Queens
Baseball Stadium Project), 5%, 1/01/39 (c)	250	200,838
(Queens
Baseball Stadium Project), 6.375%, 1/01/39 (d)	100	105,795
(Queens
Baseball Stadium Project), 5%, 1/01/46 (c)	150	117,454
(Yankee
Stadium Project), 5%, 3/01/46 (b)	500	371,880
New York
City, New York, City Transitional Finance Authority, Building Aid Revenue Bonds, Series S-3, 5.25%, 1/15/39	500	482,445
New York
City, New York, City Transitional Finance Authority, Building Aid Revenue Refunding Bonds, Series S-1, 4.50%, 1/15/38	250	211,817
New York
City, New York, GO:
Series A-1,
4.75%, 8/15/25	1,000	943,000
Series D,
5.375%, 6/01/32	2,040	2,019,784
New York
Convention Center Development Corporation, New York, Revenue Bonds (Hotel Unit Fee Secured), 5%, 11/15/44 (c)	1,000	913,690
		7,600,083
Education—21.9%
Albany, New
York, IDA, Civic Facility Revenue Bonds (New Covenant Charter School Project), Series A:
7%, 5/01/25	200	133,654
7%, 5/01/35	130	81,055
Dutchess
County, New York, IDA, Civic Facility Revenue Bonds (Vassar College Project), 5.35%, 8/01/11 (e)	1,000	1,108,460
Dutchess County,
New York, IDA, Civic Facility Revenue Refunding Bonds (Bard College), Series A-2, 4.50%, 8/01/36	500	375,835
New York
City, New York, IDA, Civic Facility Revenue Bonds (Lycee Francais de New York Project), Series A, 5.50%, 6/01/15 (f)	250	237,502
New York
City, New York, City IDA, Civic Facility Revenue Refunding Bonds (Polytechnic University), 5.25%, 11/01/37 (f)	250	184,745
New York
Liberty Development Corporation Revenue Bonds (National Sports Museum Project), Series A, 6.125%, 2/15/19 (g)	385	385
New York
State Dormitory Authority, Consolidated Fourth General Resolution Revenue Bonds (City University System), Series A, 5.25%, 7/01/11 (e)	2,215	2,421,194

Municipal Bonds
New York (continued)
Education (concluded)
New York
State Dormitory Authority, Non-State Supported Debt Revenue Bonds:
(Manhattan
College), Series B, 5.30%, 7/01/37 (h)	$ 200	$ 157,706
(Rochester Institute of
Technology), Series A, 6%, 7/01/33	325	339,134
New York
State Dormitory Authority, Non-State Supported Debt, Revenue Refunding Bonds:
(Mount Sinai School of Medicine of
New York University), 5%, 7/01/35 (a)	150	141,608
(Teachers
College), 5.50%, 3/01/39	350	352,272
New York
State Dormitory Authority Revenue Bonds (Iona College), 5.125%, 7/01/32 (i)	2,500	2,201,300
Rensselaer
County, New York, IDA, Civic Facility Revenue Bonds (Rensselaer Polytechnic Institute), 5%, 3/01/36	400	371,500
		8,106,350
Health—2.3%
Genesee
County, New York, IDA, Civic Facility Revenue Refunding Bonds (United Memorial Medical Center Project), 5%, 12/01/27	150	89,326
New York
State Dormitory Authority, Non-State Supported Debt Revenue Bonds (New York University Hospitals Center), Series B, 5.625%, 7/01/37	260	170,508
New York
State Dormitory Authority Revenue Bonds (Hudson Valley Hospital Center), 5%, 8/15/36 (j)(k)(l)	250	245,598
Saratoga
County, New York, IDA, Civic Facility Revenue Bonds (The Saratoga Hospital Project), Series B, 5.25%, 12/01/32	200	153,482
Suffolk
County, New York, IDA, Continuing Care and Retirement, Revenue Refunding Bonds (Jeffersons Ferry Project), 5%, 11/01/28	260	183,698
		842,612
Housing—7.2%
New York
City, New York, City Housing Development Corporation, M/F Housing Revenue Bonds, AMT, Series A, 5.50%, 11/01/34	2,500	2,276,350
New York
State, HFA, M/F Housing Revenue Bonds (Highland Avenue Senior Apartments), AMT, Series A, 5%, 2/15/39	500	408,305
		2,684,655
State—22.3%
New York
State Dormitory Authority, Non-State Supported Debt, Lease Revenue Bonds (Municipal Health Facilities Improvement Program), Sub-Series 2-4, 4.75%, 1/15/30	500	463,110
New York
State Dormitory Authority, Non-State Supported Debt, Revenue Refunding Bonds (School District Financing Program), Series B, 5%, 4/01/36 (j)	500	482,715
New York
State Dormitory Authority, State Personal Income Tax Revenue Bonds (Education):
Series A,
5%, 3/15/38	125	121,271
Series B,
5.75%, 3/15/36	300	321,267
New York
State Dormitory Authority, State Supported Debt Revenue Bonds (Mental Health Services Facilities), Series B, 5%, 2/15/33 (j)	350	330,848
New York
State Urban Development Corporation, Personal Income Tax Revenue Bonds:
Series A,
5.25%, 3/15/12 (e)	5,000	5,547,750
Series B,
5%, 3/15/37	1,000	973,500
		8,240,461

See Notes to Financial Statements. — 32	SEMI-ANNUAL REPORT	FEBRUARY 28, 2009

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

Municipal Bonds	Par (000)	Value
New York (concluded)
Tobacco—9.0%
New York
Counties Tobacco Trust III, Tobacco Settlement Pass-Through Bonds, 6%, 6/01/43	$ 1,445	$ 1,051,006
TSASC,
Inc., New York, TFABS, Series 1, 5.75%, 7/15/12 (e)	2,000	2,272,960
		3,323,966
Transportation—15.8%
Metropolitan
Transportation Authority, New York, Revenue Bonds, Series C, 6.50%, 11/15/28	500	550,445
Metropolitan
Transportation Authority, New York, Revenue Refunding Bonds, Series A, 5.125%, 11/15/31	3,000	2,930,880
Port
Authority of New York and New Jersey, Consolidated Revenue Bonds, AMT, 126th Series, 5.25%, 5/15/37 (a)(b)	2,750	2,371,023
		5,852,348
Utilities—15.1%
Long Island
Power Authority, New York, Electric System Revenue Bonds, Series C, 5.25%, 9/01/29 (m)	500	490,155
Long Island
Power Authority, New York, Electric System Revenue Refunding Bonds, Series A, 6.25%, 4/01/33	100	106,863
New York
City, New York, City Municipal Water Finance Authority, Second General Resolution, Water and Sewer System Revenue Bonds, Series AA, 4.50%, 6/15/37 (a)	250	216,695
New York
City, New York, City Municipal Water Finance Authority, Second General Resolution, Water and Sewer System, Revenue Refunding Bonds, Series DD, 4.75%, 6/15/35	1,000	925,040
New York
City, New York, City Municipal Water Finance Authority, Water and Sewer System Revenue Bonds, Series A:
5.25%,
6/15/11 (b)(e)	2,500	2,725,925
5.75%,
6/15/40	100	106,549
New York
State Environmental Facilities Corporation, State Clean Water and Drinking Revenue Refunding Bonds (New York City Water Project), Series D, 5.125%, 6/15/31	1,000	1,004,590
		5,575,817
Total Municipal Bonds in New York		46,344,986
Multi-State—7.3%
Housing—7.3%
Charter Mac
Equity Issuer Trust, 7.20%, 10/31/52 (n)(o)	2,500	2,707,175
Guam—0.4%
Tobacco—0.4%
Guam
Economic Development and Commerce Authority, Tobacco Settlement Asset-Backed Revenue Refunding Bonds, 5.625%, 6/01/47	200	133,544

Municipal Bonds	Par (000)	Value
Puerto Rico—15.7%
State—12.6%
Puerto Rico
Commonwealth Infrastructure Financing Authority, Special Tax and Capital Appreciation Revenue Bonds, Series A (c)(p):
4.353%,
7/01/37	$ 2,000	$ 224,000
4.998%,
7/01/44	2,000	131,380
Puerto Rico
Commonwealth, Public Improvement, GO, Series A, 5.125%, 7/01/31	1,825	1,507,030
Puerto Rico
Public Buildings Authority, Government Facilities Revenue Refunding Bonds, Series D:
5.25%,
7/01/12 (e)	1,980	2,167,605
5.25%,
7/01/27	720	622,915
		4,652,930
Tobacco—0.9%
Children’s
Trust Fund Project of Puerto Rico, Tobacco Settlement Revenue Refunding Bonds, 5.625%, 5/15/43	500	334,715
Transportation—2.2%
Puerto Rico
Commonwealth Highway and Transportation Authority, Transportation Revenue Refunding Bonds, Series D, 5.25%, 7/01/12 (e)	750	830,505
Total Municipal Bonds in Puerto Rico		5,818,150
Total Municipal Bonds—148.6%		55,003,855
Municipal Bonds Transferred to Tender Option Bond Trusts (q)
New York—6.6%
Housing—6.6%
New York
State Mortgage Agency Revenue Bonds, AMT, Series 101, 5.40%, 4/01/32	2,641	2,435,231
Total Municipal Bonds Transferred to Tender Option Bond Trusts—6.6%		2,435,231
Total Long-Term Investments (Cost—$59,945,589)—155.2%		57,439,086
Short-Term Securities	Shares
Money Market
Funds—7.4%
CMA New
York Municipal Money Fund, 0.29% (r)(s)	2,736,776	2,736,776
Total Short-Term Securities (Cost—$2,736,776)—7.4%		2,736,776
Total Investments
(Cost—$62,682,365*)—162.6%		60,175,862
Other Assets Less Liabilities—1.5%		573,127
Liability for Trust Certificates, Including Interest Expense and Fees Payable—(3.6)%		(1,329,607	)
Preferred Shares, at Redemption
Value—(60.5)%		(22,402,946	)
Net Assets Applicable to Common
Shares—100.0%		$ 37,016,436

See Notes to Financial Statements. — SEMI-ANNUAL REPORT	FEBRUARY 28, 2009	33

Schedule of Investments (concluded) BlackRock New York Municipal Bond Trust (BQH)

• The cost and unrealized appreciation (depreciation) of investments as of February 28, 2009, as computed for federal income tax purposes, were as follows:

Aggregate cost	$
Gross unrealized appreciation	$ 2,318,398
Gross unrealized depreciation	(4,695,018	)
Net unrealized depreciation	$ (2,376,620	)

(a)	MBIA Insured.
(b)	FGIC Insured.
(c)	AMBAC Insured.
(d)	Assured Guaranty Insured.
(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)	ACA Insured.
(g)	Issuer filed for bankruptcy and/or is in default of
interest payments.
(h)	Radian Insured.
(i)	XL Capital Insured.
(j)	FSA Insured.
(k)	FHA Insured.
(l)	BHAC Insured.
(m)	CIFG Insured.
(n)	Security represents a beneficial interest in a trust. The
collateral deposited into the trust is federally tax-exempt revenue bonds
issued by various state or local governments, or their respective agencies or
authorities. The security is subject to remarketing prior to its stated
maturity, and is subject to mandatory redemption at maturity.
(o)	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.
(p)	Represents a zero-coupon bond. Rate shown is the current
yield as of report date.
(q)	Securities represent underlying bonds transferred to a
tender option bond trust in exchange for which the Trust acquired residual
interest certificates. These securities serve as a collateral in a financing
transaction. See Note 1 of the Notes to Financial Statements for details of
municipal bonds transferred to tender option bond trusts.
(r)	Represents the current yield as of report date.
(s)	Investments in companies considered to be an affiliate of
the Trust, for purposes of Section 2(a)(3) of the Investment Company Act of
1940, were as follows:

Affiliate		Income
CMA New York Municipal Money Fund	1,608,182	$ 1,784

| • | For Trust compliance purposes, the Trust’s industry
classifications refer to any one or more of the industry sub-classifications
used by one or more widely recognized market indexes or ratings group
indexes, and/or as defined by Trust management. This definition may not apply
for purposes of this report which may combine industry sub-classifications
for reporting ease. | |
| --- | --- | --- |
| • | Effective September 1, 2008, the Trust adopted Financial
Accounting Standards Board Statement of Financial Accounting Standards No.
157, “Fair Value Measurements” (“FAS 157”). FAS 157 clarifies the definition
of fair value, establishes a framework for measuring fair values and requires
additional disclosures about the use of fair value measurements. Various
inputs are used in determining the fair value of investments, which are as
follows: | |
| | • | Level 1 - price quotations in active markets/exchanges for
identical securities |
| | • | Level 2 - other observable inputs (including, but not
limited to: quoted prices for similar assets or liabilities in markets that
are 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 circumstance, to the extent observable inputs
are not available (including the Trust’s own assumption used in determining
the fair value of investments) |

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Trust’s 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 February 28, 2009 in determining the fair valuation of the Trust’s investments:

| Valuation Inputs | Investments
in Securities |
| --- | --- |
| | Assets |
| Level 1 | $ 2,736,776 |
| Level 2 | 57,439,086 |
| Level 3 | — |
| Total | $ 60,175,862 |

See Notes to Financial Statements. — 34	SEMI-ANNUAL REPORT	FEBRUARY 28, 2009

| Schedule of
Investments February 28, 2009 (Unaudited) |
| --- |
| (Percentages shown are based on Net Assets) |

Municipal Bonds	Par (000)	Value
New
York—151.3%
Corporate—24.3%
Essex
County, New York, IDA, Environmental Improvement Revenue Bonds (International Paper Company Project), AMT, Series A, 6.625%, 9/01/32	$ 200	$ 136,554
Essex
County, New York, IDA, Solid Waste Disposal, Revenue Refunding Bonds (International Paper Company), AMT, Series A, 5.50%, 10/01/26	625	390,200
New York
City, New York, City IDA, Revenue Bonds (IAC/InterActiveCorp Project), 5%, 9/01/35	1,000	603,990
New York
City, New York, City IDA, Special Facility Revenue Bonds, AMT:
(American Airlines, Inc. - JFK
International Airport), 7.625%, 8/01/25	1,600	1,203,152
(Continental
Airlines Inc. Project), AMT, 7.75%, 8/01/31	1,500	1,106,430
New York
State Energy Research and Development Authority, Facilities Revenue Bonds (Consolidated Edison Company of New York, Inc. Project), VRDN, AMT, 4.70%, 6/01/36	5,500	5,501,210
New York
State Energy Research and Development Authority, Gas Facilities Revenue Refunding Bonds (Brooklyn Union Gas Company/Keyspan), AMT, Series A, 4.70%, 2/01/24 (a)	1,500	1,300,845
Port
Authority of New York and New Jersey, Special Obligation Revenue Bonds (Continental Airlines, Inc. - LaGuardia Project), AMT, 9.125%, 12/01/15	3,310	3,314,469
Suffolk
County, New York, IDA, IDR (Keyspan-Port Jefferson), AMT, 5.25%, 6/01/27	2,500	2,028,300
		15,585,150
County/City/Special District/School
District—36.6%
New York
City, New York, City IDA, PILOT Revenue Bonds (Queens Baseball Stadium Project):
5%, 1/01/39
(b)	500	401,675
6.375%,
1/01/39 (c)	100	105,795
5%, 1/01/46
(b)	2,050	1,605,211
New York
City, New York, City Transit Authority, Metropolitan Transportation Authority, Triborough COP, Series A, 5.25%, 1/01/10 (b)(d)	5,000	5,244,350
New York
City, New York, City Transitional Finance Authority, Building Aid Revenue Bonds:
Series S-2,
4.50%, 1/15/31 (a)(e)	2,500	2,178,225
Series S-2,
4.25%, 1/15/34 (a)(e)	250	203,697
Series S-3,
5.25%, 1/15/39	1,300	1,254,357
New York
City, New York, City Transitional Finance Authority, Building Aid Revenue Refunding Bonds, Series S-1, 4.50%, 1/15/38	500	423,635
New York
City, New York, City Transitional Finance Authority, Future Tax Secured, Revenue Refunding Bonds, Series B, 5%, 11/01/27	5,000	5,024,650
New York
City, New York, GO:
Series A-1,
4.75%, 8/15/25	1,000	943,000
Series B,
5.75%, 12/01/11 (d)	3,000	3,356,160
New York
Convention Center Development Corporation, New York, Revenue Bonds (Hotel Unit Fee Secured), 5%, 11/15/35 (b)	3,000	2,802,960
		23,543,715
Education—25.4%
Albany, New
York, IDA, Civic Facility Revenue Bonds (New Covenant Charter School Project), Series A:
7%, 5/01/25	345	230,553
7%, 5/01/35	220	137,170
Municipal Bonds	Par (000)	Value
New
York (continued)
Education (concluded)
Dutchess
County, New York, IDA, Civic Facility Revenue Bonds (Vassar College Project), 5.35%, 8/01/11 (d)	$ 4,000	$ 4,433,840
Dutchess
County, New York, IDA, Civic Facility Revenue Refunding Bonds (Bard College), Series A-2, 4.50%, 8/01/36	755	567,511
Geneva, New
York, IDA, Civic Facility Revenue Refunding Bonds (Hobart and William Smith Project), Series A, 5.375%, 2/01/33	3,250	3,056,333
Herkimer
County, New York, IDA, Civic Facility Revenue Bonds (Herkimer College Foundation Inc.), 6.25%, 8/01/34	385	286,201
New York
City, New York, City IDA, Civic Facility Revenue Refunding Bonds (Polytechnic University), 5.25%, 11/01/37 (f)	460	339,931
New York
City, New York, IDA, Civic Facility Revenue Bonds (Lycee Francais de New York Project), Series A, 5.375%, 6/01/23 (f)	1,500	1,222,395
New York
Liberty Development Corporation Revenue Bonds (National Sports Museum Project), Series A, 6.125%, 2/15/19	675	675
New York
State Dormitory Authority, Non-State Supported Debt Revenue Bonds:
(Manhattan
College), Series B, 5.30%, 7/01/37 (g)	250	197,133
(Rochester Institute of
Technology), Series A, 6%, 7/01/33	625	652,181
New York
State Dormitory Authority, Non-State Supported Debt, Revenue Refunding Bonds:
(Mount Sinai School of Medicine of
New York University), 5%, 7/01/35 (e)	500	472,025
(Teachers
College), 5.50%, 3/01/39	650	654,219
New York
State Dormitory Authority Revenue Bonds:
(Brooklyn
Law School), Series B, 5.125%, 7/01/30 (h)	2,000	1,799,640
(New School University), 5%, 7/01/31 (e)	1,425	1,356,757
Rensselaer
County, New York, IDA, Civic Facility Revenue Bonds (Rensselaer Polytechnic Institute), 5%, 3/01/36	950	882,313
		16,288,877
Health—13.7%
Clarence,
New York, IDA, Civic Facility Revenue Bonds (Bristol Village Project), 6%, 1/20/44 (i)	1,695	1,718,696
Genesee
County, New York, IDA, Civic Facility Revenue Refunding Bonds (United Memorial Medical Center Project), 5%, 12/01/27	250	148,877
New York
City, New York, City IDA, Mortgage Revenue Bonds (Eger Harbor House Inc. Project), Series A (i):
4.95%,
11/20/32	980	882,823
5.875%,
5/20/44	975	981,776
New York
State Dormitory Authority, Mortgage Hospital Revenue Bonds (Saint Barnabas Hospital), Series A, 5%, 2/01/31 (b)(i)	1,500	1,417,845
New York
State Dormitory Authority, Non-State Supported Debt Revenue Bonds:
(New York Hospital Medical Center
of Queens), 4.75%, 2/15/37 (j)	315	271,826
(New York University Hospitals
Center), Series B, 5.625%, 7/01/37	530	347,574
New York
State Dormitory Authority Revenue Bonds (Hudson Valley Hospital Center), 5%, 8/15/36 (j)(k)(l)	500	491,195
New York
State Dormitory Authority, Revenue Refunding Bonds (Kateri Residence), 5%, 7/01/22	2,000	1,959,840
Saratoga
County, New York, IDA, Civic Facility Revenue Bonds (The Saratoga Hospital Project), Series B, 5.25%, 12/01/32	350	268,594

See Notes to Financial Statements. — SEMI-ANNUAL REPORT	FEBRUARY 28, 2009	35

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

Municipal Bonds	Par (000)	Value
New
York (continued)
Health (concluded)
Suffolk
County, New York, IDA, Continuing Care and Retirement, Revenue Refunding Bonds (Jeffersons Ferry Project), 5%, 11/01/28	$ 450	$ 317,939
		8,806,985
Housing—3.2%
New York
City, New York, City Housing Development Corporation, M/F Housing Revenue Bonds, AMT, Series J-2, 4.75%, 11/01/27	1,420	1,248,677
New York
State, HFA, M/F Housing Revenue Bonds (Highland Avenue Senior Apartments), AMT, Series A, 5%, 2/15/39	1,000	816,610
		2,065,287
State—7.0%
New York
State Dormitory Authority, Non-State Supported Debt, Lease Revenue Bonds (Municipal Health Facilities Improvement Program), Sub-Series 2-4, 4.75%, 1/15/30	1,000	926,220
New York
State Dormitory Authority, Non-State Supported Debt, Revenue Refunding Bonds (School District Financing Program), Series B, 5%, 4/01/36 (l)	750	724,073
New York
State Dormitory Authority, State Personal Income Tax Revenue Bonds (Education), Series B, 5.75%, 3/15/36	300	321,267
New York
State Dormitory Authority, State Supported Debt Revenue Bonds (Mental Health Services Facilities), Series A, 5%, 2/15/33 (l)	600	567,168
New York
State Urban Development Corporation, Personal Income Tax Revenue Bonds, Series B, 5%, 3/15/35	2,000	1,962,800
		4,501,528
Tobacco—11.7%
New York
Counties Tobacco Trust III, Tobacco Settlement Pass-Through Bonds, 6%, 6/01/43	2,535	1,843,807
TSASC,
Inc., New York, TFABS, Series 1, 5.75%, 7/15/12 (d)	5,000	5,682,400
		7,526,207
Transportation—15.6%
Metropolitan
Transportation Authority, New York, Dedicated Tax Fund Revenue Refunding Bonds, Series A, 5%, 11/15/30	5,000	4,857,700
Metropolitan
Transportation Authority, New York, Revenue Bonds, Series C, 6.50%, 11/15/28	750	825,667
Metropolitan
Transportation Authority, New York, Revenue Refunding Bonds, Series A, 5.25%, 11/15/31 (a)(e)	1,250	1,241,700
Metropolitan
Transportation Authority, New York, Service Contract Revenue Refunding Bonds, Series A, 5.125%, 1/01/29	3,000	2,975,820
Triborough
Bridge and Tunnel Authority, New York, Revenue Refunding Bonds, Series A, 5%, 1/01/32	150	147,384
		10,048,271
Utilities—13.8%
Long Island
Power Authority, New York, Electric System Revenue Bonds:
5.189%,
6/01/28 (l)(m)	3,515	1,226,911
Series C,
5.25%, 9/01/29 (n)	1,000	980,310
Long Island
Power Authority, New York, Electric System Revenue Refunding Bonds, Series A, 6.25%, 4/01/33	150	160,294
New York
City, New York, City Municipal Water Finance Authority, Second General Resolution, Water and Sewer System Revenue Bonds, Series AA, 4.50%, 6/15/37 (e)	850	736,763
New York
City, New York, City Municipal Water Finance Authority, Water and Sewer System Revenue Bonds, Series A, 5.75%, 6/15/40	250	266,372
Municipal Bonds	Par (000)	Value
New
York (concluded)
Utilities (concluded)
New York
City, New York, City Municipal Water Finance Authority, Water and Sewer System, Revenue Refunding Bonds, Series A, 5.125%, 6/15/34	$ 4,000	$ 3,974,440
New York
State Environmental Facilities Corporation, State Clean Water and Drinking Water, Revenue Refunding Bonds (New York City Municipal Water Finance Authority), Series A, 5%, 6/15/37	1,500	1,497,630
		8,842,720
Total Municipal Bonds in New York		97,208,740
Multi-State—6.4%
Housing—6.4%
Charter Mac
Equity Issuer Trust (o)(p):
5.75%,
4/30/15	500	507,075
6%, 4/30/15	1,500	1,538,775
6%, 4/30/19	1,000	1,012,490
6.30%,
4/30/19	1,000	1,017,640
Total Municipal Bonds in Multi-State		4,075,980
Guam—0.4%
Tobacco—0.4%
Guam
Economic Development and Commerce Authority, Tobacco Settlement Asset-Backed Revenue Refunding Bonds, 5.625%, 6/01/47	375	250,395
Puerto
Rico—6.5%
Housing—1.5%
Puerto Rico
Housing Financing Authority, Capital Funding Program, Subordinate Revenue Refunding Bonds, 5.125%, 12/01/27	1,000	987,460
State—0.3%
Puerto Rico
Sales Tax Financing Corporation, Sales Tax Revenue Refunding Bonds, Series A, 5.139%, 8/01/54 (b)(m)	5,000	195,050
Tobacco—0.5%
Children’s
Trust Fund Project of Puerto Rico, Tobacco Settlement Revenue Refunding Bonds, 5.625%, 5/15/43	500	334,715
Transportation—3.5%
Puerto Rico
Commonwealth Highway and Transportation Authority, Transportation Revenue Refunding Bonds, Series D, 5.375%, 7/01/12 (d)	2,000	2,222,740
Utilities—0.7%
Puerto Rico
Electric Power Authority, Power Revenue Refunding Bonds, Series VV, 5.25%, 7/01/29 (e)	500	454,050
Total Municipal Bonds in Puerto Rico		4,194,015
Total Long-Term Investments (Cost—$111,452,133)—164.6%		105,729,130
Short-Term Securities	Shares
Money Market
Funds—3.2%
CMA New
York Municipal Money Fund, 0.29% (q)(r)	2,055,271	2,055,271
Total Short-Term Securities (Cost—$2,055,271)—3.2%		2,055,271
Total Investments
(Cost—$113,507,404*)—167.8%		107,784,401
Other Assets Less Liabilities—1.7%		1,114,524
Preferred Shares, at Redemption
Value—(69.5)%		(44,654,619	)
Net Assets Applicable to Common
Shares—100.0%		$ 64,244,306

See Notes to Financial Statements. — 36	SEMI-ANNUAL REPORT	FEBRUARY 28, 2009

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

• The cost and unrealized appreciation (depreciation) of investments as of February 28, 2009, as computed for federal income tax purposes, were as follows:

Aggregate cost	$
Gross unrealized appreciation	$ 2,480,317
Gross unrealized depreciation	(8,036,743	)
Net unrealized depreciation	$ (5,556,426	)

(a)	FGIC Insured.
(b)	AMBAC Insured.
(c)	Assured Guaranty Insured.
(d)	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.
(e)	MBIA Insured.
(f)	ACA Insured.
(g)	Radian Insured.
(h)	XL Capital Insured.
(i)	GNMA Collateralized.
(j)	FHA Insured.
(k)	BHAC Insured.
(l)	FSA Insured.
(m)	Represents a zero-coupon bond. Rate shown is the current
yield as of report date.
(n)	CIFG Insured.
(o)	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.
(p)	Security represents a beneficial interest in a trust. The
collateral deposited into the trust is federally tax-exempt revenue bonds
issued by various state or local governments, or their respective agencies or
authorities. The security is subject to remarketing prior to its stated
maturity, and is subject to mandatory redemption at maturity.
(q)	Represents the current yield as of report date.
(r)	Investments in companies considered to be an affiliate of
the Trust, for purposes of Section 2(a)(3) of the Investment Company Act of
1940, were as follows:

Affiliate		Income
CMA New York Municipal Money Fund	1,208,837	$ 12,867

| • | For Trust compliance purposes, the Trust’s industry
classifications refer to any one or more of the industry sub-classifications
used by one or more widely recognized market indexes or ratings group indexes,
and/or as defined by Trust management. This definition may not apply for
purposes of this report which may combine industry sub-classifications for
reporting ease. | |
| --- | --- | --- |
| • | Effective September 1, 2008, the Trust adopted Financial
Accounting Standards Board Statement of Financial Accounting Standards No.
157, “Fair Value Measurements” (“FAS 157”). FAS 157 clarifies the definition
of fair value, establishes a framework for measuring fair values and requires
additional disclosures about the use of fair value measurements. Various
inputs are used in determining the fair value of investments, which are as
follows: | |
| | • | Level 1 - price quotations in active markets/exchanges for
identical securities |
| | • | Level 2 - other observable inputs (including, but not
limited to: quoted prices for similar assets or liabilities in markets that
are 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 circumstance, to the extent observable inputs
are not available (including the Trust’s own assumption used in determining
the fair value of investments) |
| | The inputs or methodology used for valuing securities are
not necessarily an indication of the risk associated with investing in those
securities. For information about the Trust’s 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
February 28, 2009 in determining the fair valuation of the Trust’s
investments: | |

| Valuation Inputs | Investments
in Securities |
| --- | --- |
| | Assets |
| Level 1 | $ 2,055,271 |
| Level 2 | 105,729,130 |
| Level 3 | — |
| Total | $ 107,784,401 |

See Notes to Financial Statements. — SEMI-ANNUAL REPORT	FEBRUARY 28, 2009	37

Schedule of Investments February 28, 2009 (Unaudited)
(Percentages shown are based on Net Assets)

Municipal Bonds	Par (000)	Value
District of
Columbia—7.3%
Transportation—7.3%
Metropolitan
Washington Airports Authority, D.C., Airport System Revenue Bonds, AMT:
Series A,
5.25%, 10/01/32 (a)(b)	$ 1,500	$ 1,314,420
Series B,
5%, 10/01/34 (c)	250	212,872
Total Municipal Bonds in the District of
Columbia		1,527,292
Multi-State—7.7%
Housing—7.7%
Charter Mac
Equity Issuer Trust, 7.20%, 10/31/52 (d)(e)	1,500	1,624,305
Virginia—124.8%
Corporate—10.4%
Chesterfield
County, Virginia, EDA, Solid Waste and Sewer Disposal Revenue Bonds (Virginia Electric Power Company), AMT, Series A, 5.60%, 11/01/31	500	339,585
Isle Wight
County, Virginia, IDA, Environmental Improvement Revenue Bonds, AMT, Series A, 5.70%, 11/01/27	1,300	817,232
Louisa,
Virginia, IDA, PCR, Refunding (Virginia Electric and Power Company Project), Series A, 5.375%, 11/01/35	1,000	1,031,580
		2,188,397
County/City/Special District/School
District—20.5%
Celebrate
North Community Development Authority, Virginia, Special Assessment Revenue Bonds, Series B, 6.75%, 3/01/34	1,500	1,024,425
Dulles Town
Center, Virginia, Community Development Authority, Special Assessment Tax (Dulles Town Center Project), 6.25%, 3/01/26	955	676,379
Hampton,
Virginia, Public Improvement, GO, 5%, 4/01/20	1,000	1,064,850
Prince
William County, Virginia, Lease Participation Certificates, 5%, 12/01/21	1,275	1,321,831
The Shops
at White Oak Village Community Development Authority, Virginia, Special Assessment Revenue Bonds, 5.30%, 3/01/17	250	205,587
		4,293,072
Education—7.6%
Virginia
College Building Authority, Educational Facilities Revenue Refunding Bonds (Washington and Lee University Project) (b):
5.25%,
1/01/26	500	546,405
5.25%,
1/01/31	1,000	1,054,020
		1,600,425
Health—24.9%
Arlington
County, Virginia, IDA, Hospital Facilities Revenue Bonds (Virginia Hospital Center - Arlington Health System), 5.25%, 7/01/11 (f)	1,150	1,253,627
Danville,
Virginia, IDA, Hospital Revenue Refunding Bonds (Danville Regional Medical Center), 5.25%, 10/01/28 (g)(h)	1,500	1,631,655
Fairfax
County, Virginia, EDA, Residential Care Facilities, Mortgage Revenue Refunding Bonds (Goodwin House, Inc.), 5.125%, 10/01/37	1,000	651,700
Henrico
County, Virginia, EDA, Revenue Refunding Bonds (Bon Secours Health System, Inc.), Series A:
5.60%,
11/15/12 (f)	60	68,392
5.60%,
11/15/30	1,440	1,313,525
Peninsula
Ports Authority, Virginia, Residential Care Facilities, Revenue Refunding Bonds (Baptist Homes), Series C, 5.40%, 12/01/33	500	297,965
		5,216,864

Municipal Bonds	Par (000)	Value
Virginia (concluded)
Housing—14.0%
Virginia
State, HDA, Commonwealth Mortgage Revenue Bonds, Series H, Sub-Series H-1, 5.375%, 7/01/36 (b)	$ 3,000	$ 2,926,350
State—9.1%
Virginia
College Building Authority, Educational Facilities Revenue Bonds (Public Higher Education Financing Program), Series A, 5%, 9/01/33	1,000	1,006,010
Virginia
State Public School Authority Revenue Bonds, Series B, 5.25%, 8/01/33	500	513,065
Virginia
State Public School Authority, Special Obligation School Financing Bonds (Fluvanna County), 6.50%, 12/01/35	360	400,097
		1,919,172
Transportation—14.7%
Norfolk,
Virginia, Airport Authority Revenue Bonds, Series A, 5.125%, 7/01/31 (a)(b)	1,500	1,389,885
Richmond,
Virginia, Metropolitan Authority, Expressway Revenue Refunding Bonds, 5.25%, 7/15/22 (a)(b)	1,250	1,304,837
Virginia
Port Authority, Port Facilities Revenue Bonds, AMT, 4.75%, 7/01/31 (a)(b)	500	390,220
		3,084,942
Utilities—23.6%
Fairfax
County, Virginia, Water Authority, Water Revenue Refunding Bonds, 5%, 4/01/27	1,205	1,216,279
Henrico
County, Virginia, Water and Sewer Revenue Refunding Bonds, 5%, 5/01/25	1,000	1,062,240
Virginia
State Resources Authority, Infrastructure Revenue Bonds (Pooled Financing Program):
Series A,
5.125%, 5/01/27	635	644,150
Senior
Series B, 5%, 11/01/33	2,000	2,024,360
		4,947,029
Total Municipal Bonds in Virginia		26,176,251
Puerto Rico—4.4%
Tobacco—4.4%
Children’s
Trust Fund Project of Puerto Rico, Tobacco Settlement Revenue Refunding Bonds, 5.375%, 5/15/33	1,285	916,770
Total Municipal Bonds—144.2%		30,244,618
Municipal Bonds Transferred to Tender Option Bond Trusts (i)
Virginia—9.6%
Education—9.6%
Education
University of Virginia, Revenue Refunding Bonds, 5%, 6/01/40	2,000	2,025,000
Total Municipal Bonds Transferred to Tender Option Bond Trusts—9.6%		2,025,000
Total Long-Term Investments (Cost—$34,205,204)—153.8%		32,269,618

| See Notes to Financial Statements. — 38 | SEMI-ANNUAL
REPORT | FEBRUARY 28, 2009 |
| --- | --- | --- |

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

Short-Term Securities	Par (000)	Value
Virginia—11.9%
Alexandria,
Virginia, IDA, Revenue Bonds (American Correctional Association Project), VRDN, 0.65%, 3/05/09 (j)	$ 1,800	$ 1,800,000
Virginia
Small Business Financing Authority, Hospital Revenue Bonds (Carilion Clinic Center Project), VRDN, Series B, 0.60%, 3/02/09 (j)	700	700,000
Total Short-Term Securities
(Cost—$2,500,000)—11.9%		2,500,000
Total Investments
(Cost—$36,705,204*)—165.7%		34,769,618
Liabilities in Excess of Other
Assets—(2.9)%		(613,786	)
Liability for Trust Certificates, Including Interest Expense and Fees Payable—(4.8)%		(1,001,956	)
Preferred Shares, at Redemption
Value—(58.0)%		(12,175,900	)
Net Assets Applicable to Common
Shares—100.0%		$ 20,977,976

• The cost and unrealized appreciation (depreciation) of investments as of February 28, 2009, as computed for federal income tax purposes, were as follows:

Aggregate cost	$
Gross unrealized appreciation	$ 879,771
Gross unrealized depreciation	(2,796,035	)
Net unrealized depreciation	$ (1,916,264	)

(a)	FGIC Insured.
(b)	MBIA Insured.
(c)	FSA Insured.
(d)	Security exempt from registration under Rule 144A of the
Securities Act of 1933. These securities may be resold in transactions exempt
from registration to qualified institutional investors.
(e)	Security represents a beneficial interest in a trust. The
collateral deposited into the trust is federally tax-exempt revenue bonds
issued by various state or local governments, or their respective agencies or
authorities. The security is subject to remarketing prior to its stated
maturity, and is subject to mandatory redemption at maturity.
(f)	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.
(g)	AMBAC Insured.
(h)	Security is collateralized by Municipal or US Treasury
Obligations.
(i)	Securities represent underlying bonds transferred to a
tender option bond trust in exchange for which the Trust acquired residual
interest certificates. These securities serve as collateral in a financing
transaction. See Note 1 of the Notes to Financial Statements for details of
municipal bonds transferred to tender option bond trusts.
(j)	Security may have a maturity of more than one year at time
of issuance, but has variable rate and demand features that qualify it as a
short-term security. Rate shown is as of report date. This rate changes
periodically based upon prevailing market rates.
•	For Trust compliance purposes, the Trust’s industry
classifications refer to any one or more of the industry sub-classifications
used by one or more widely recognized market indexes or ratings group
indexes, and/or as defined by Trust management. This definition may not apply
for purposes of this report which may combine industry sub-classifications
for reporting ease.
•	Effective September 1, 2008, the Trust adopted Financial
Accounting Standards Board Statement of Financial Accounting Standards No.
157, “Fair Value Measurements” (“FAS 157”). FAS 157 clarifies the definition
of fair value, establishes a framework for measuring fair values and requires
additional disclosures about the use of fair value measurements. Various
inputs are used in determining the fair value of investments, which are as
follows:

| • | Level 1 - price quotations in active markets/exchanges for
identical securities |
| --- | --- |
| • | Level 2 - other observable inputs (including, but not
limited to: quoted prices for similar assets or liabilities in markets that
are 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 circumstance, to the extent observable inputs
are not available (including the Trust’s own assumption used in determining
the fair value of investments) |

| The inputs or methodology used for valuing securities are
not necessarily an indication of the risk associated with investing in those
securities. For information about the Trust’s 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
February 28, 2009 in determining the fair valuation of the Trust’s
investments: |

| Valuation Inputs | Investments
in Securities |
| --- | --- |
| | Assets |
| Level 1 | — |
| Level 2 | $ 34,769,618 |
| Level 3 | — |
| Total | $ 34,769,618 |

See Notes to Financial Statements. — SEMI-ANNUAL REPORT	FEBRUARY 28, 2009	39

| Schedule of
Investments February 28,
2009 (Unaudited) |
| --- |
| (Percentages shown are based on Net Assets) |

Municipal Bonds	Par (000)	Value
Massachusetts—151.1%
Corporate—3.0%
Massachusetts
State Development Finance Agency, Resource Recovery Revenue Bonds (Ogden Haverhill Associates), AMT, Series A, 6.70%, 12/01/14	$ 555	$ 513,691
Massachusetts
State Industrial Finance Agency, PCR (General Motors Corporation), 5.55%, 4/01/09	1,000	250,000
		763,691
Education—94.8%
Massachusetts
State College Building Authority, Project Revenue Refunding Bonds, Series B, 5.50%, 5/01/39 (b)	825	839,627
Massachusetts
State Development Finance Agency, Education Revenue Bonds:
(Belmont
Hill School), 5%, 9/01/11 (c)	1,100	1,208,856
(Xaverian
Brothers High School), 5.65%, 7/01/29	250	197,508
Massachusetts
State Development Finance Agency, Educational Facility Revenue Bonds (Academy of the Pacific Rim), Series A, 5.125%, 6/01/31 (d)	1,000	590,290
Massachusetts
State Development Finance Agency Revenue Bonds:
(Boston
University), Series T-1, 5%, 10/01/39 (a)	1,000	935,850
(College of Pharmacy and Allied
Health Services), Series D, 5%, 7/01/27 (e)	500	502,125
(Franklin
W. Olin College), Series B, 5.25%, 7/01/33 (b)	400	390,836
(Massachusetts College of Pharmacy
and Health Sciences), 5.75%, 7/01/13 (c)	1,000	1,173,580
(Smith
College), 5%, 7/01/35	2,000	1,991,160
(WGBH
Educational Foundation), Series A, 5.75%, 1/01/42 (a)	1,100	1,096,678
(The
Wheeler School), 6.50%, 12/01/29	540	497,335
(Williston
Northampton School Project), 5%, 10/01/25 (b)	500	431,805
(Worcester
Polytechnic Institute), 5%, 9/01/27 (f)	1,985	1,959,056
Massachusetts
State Development Finance Agency, Revenue Refunding Bonds:
(Boston
University, Series P, 5.45%, 5/15/59	1,500	1,487,115
(Clark
University), 5.125%, 10/01/35 (b)	500	479,325
(Western New England College),
Series A, 5%, 9/01/33 (e)	1,500	1,418,970
(Wheelock
College), Series C, 5.25%, 10/01/37	1,000	745,760
Massachusetts
State Health and Educational Facilities Authority Revenue Bonds:
(Harvard
University), Series FF, 5.125%, 7/15/37	850	858,755
(Northeastern
University), Series R, 5%, 10/01/33	225	204,017
(Simmons
College), Series F, 5%, 10/01/13 (c)(g)	1,000	1,130,580
(Tufts
University), 5.375%, 8/15/38	1,000	1,023,440
(University of Massachusetts),
Series C, 5.125%, 10/01/34 (f)(g)	230	221,269
(Wheaton
College), Series D, 6%, 1/01/18	1,040	952,910
Massachusetts
State Health and Educational Facilities Authority, Revenue Refunding Bonds:
(Berklee College
of Music), Series A, 5%, 10/01/37	1,000	848,400
(Boston
College), Series N, 5.125%, 6/01/37	1,000	1,000,870
(Learning Center For Deaf
Children), Series C, 6.125%, 7/01/29	495	349,079
(Wellesley
College), 5%, 7/01/33	1,500	1,511,550
		24,046,746

Municipal Bonds	Par (000)	Value
Massachusetts (concluded)
Health—40.4%
Massachusetts
State Development Finance Agency, First Mortgage Revenue Bonds:
(Edgecombe
Project), Series A, 6.75%, 7/01/21	$ 855	$ 767,080
(Overlook Communities Inc.), Series
A, 6.125%, 7/01/24	850	614,099
Massachusetts
State Development Finance Agency, First Mortgage Revenue Refunding Bonds (Symmes Life Care, Inc.—Brookhaven at Lexington), Series A, 5%, 3/01/35 (h)	1,250	839,163
Massachusetts
State Development Finance Agency, Human Service Provider Revenue Bonds (Seven Hills Foundation & Affiliates), 5%, 9/01/35 (h)	500	365,085
Massachusetts
State Development Finance Agency Revenue Bonds (Massachusetts Council of Human Service Providers, Inc.), Series C, 6.60%, 8/15/29	425	295,379
Massachusetts
State Health and Educational Facilities Authority Revenue Bonds:
(Baystate
Medical Center), Series F, 5.75%, 7/01/33	1,000	896,510
(Berkshire
Health System), Series E, 6.25%, 10/01/31	350	286,104
(Berkshire
Health System), Series F, 5%, 10/01/19 (e)	1,000	997,760
(Lahey
Clinic Medical Center), Series D, 5.25%, 8/15/37	1,000	838,800
(Milford-Whitinsville Hospital),
Series D, 6.35%, 7/15/12 (c)	750	861,608
Massachusetts
State Health and Educational Facilities Authority, Healthcare System Revenue Refunding Bonds (Covenant Health System):
6%, 1/01/12
(c)	255	287,288
6%, 7/01/22	630	642,380
6%, 7/01/31	315	296,188
Massachusetts
State Health and Educational Facilities Authority, Revenue Refunding Bonds:
(Bay Cove Human Services Issue),
Series A, 5.90%, 4/01/28	775	538,594
(Caregroup,
Inc.), Series E-1, 5%, 7/01/28	500	390,420
(Christopher
House), Series A, 6.875%, 1/01/29	480	373,229
(Valley Regional Health System),
Series C, 5.75%, 7/01/18 (i)	395	347,414
Massachusetts
State Industrial Finance Agency, Health Care Facility Revenue Bonds (Age Institute of Massachusetts Project), 8.05%, 11/01/25	695	620,878
		10,257,979
Housing—3.7%
Massachusetts
State, HFA, Housing Revenue Refunding Bonds, AMT, Series F, 5.70%, 6/01/40 (j)	1,000	936,420
State—7.2%
Massachusetts
State College Building Authority, Project Revenue Bonds, Series A:
5%, 5/01/31
(a)	1,000	952,300
5.50%,
5/01/39	500	497,040
Massachusetts
State Development Finance Agency, Education Revenue Bonds (Middlesex School Project), 5%, 9/01/33	400	366,220
		1,815,560
Transportation—2.0%
Rail
Connections, Inc., Massachusetts, Capital Appreciation Revenue Bonds (Route 128 Parking Garage), Series B, 6.527%, 7/01/09 (c)(d)(k)	1,000	501,220
Total Municipal Bonds—151.1%		38,321,616

| See Notes to Financial Statements. — 40 | SEMI-ANNUAL
REPORT | FEBRUARY 28, 2009 |
| --- | --- | --- |

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

Municipal Bonds Transferred to Tender Option Bond Trusts (l)	Par (000)	Value
State—8.0%
Massachusetts
State School Building Authority, Dedicated Sales Tax Revenue Bonds, Series A, 5%, 8/15/30 (m)	$ 2,010	$ 2,030,559
Total Municipal Bonds Transferred to Tender Option Bond Trusts—8.0%		2,030,559
Total Long-Term Investments (Cost—$44,123,072)—159.1%		40,352,175
Short-Term Securities
Massachusetts—4.7%
Massachusetts
State Health and Educational Facilities Authority, Revenue Refunding Bonds
(Partners Healthcare System), VRDN, Series D-1, 0.30%, 3/02/09 (n)	1,200	1,200,000
Total Short-Term Securities (Cost—$1,200,000)—4.7%		1,200,000
Total Investments
(Cost—$45,323,072*)—163.8%		41,552,175
Other Assets Less Liabilities—14.4%		3,652,358
Liability for Trust Certificates,
Including
Interest Expense Payable—(5.3)%		(1,340,755	)
Preferred Shares, at Redemption
Value—(72.9)%		(18,502,174	)
Net Assets Applicable to Common
Shares—100.0%		$ 25,361,604

• The cost and unrealized appreciation (depreciation) of investments as of February 28, 2009, as computed for federal income tax purposes, were as follows:

Aggregate cost	$
Gross unrealized appreciation	$ 894,810
Gross unrealized depreciation	(4,536,629	)
Net unrealized depreciation	$ (3,641,819	)

(a)	AMBAC Insured.
(b)	XL Capital Insured.
(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)	ACA Insured.
(e)	Assured Guaranty Insured.
(f)	NPFGC Insured.
(g)	FGIC Insured.
(h)	Radian Insured.
(i)	Connie Lee Insured.
(j)	When-issued security.
(k)	Represents a zero coupon bond. Rate shown reflects the
current yield as of report date.
(l)	Securities represent bonds transferred to a tender option
bond trust in exchange for which the Trust acquired residual interest
certificates. These securities serve as collateral in a financing
transaction. See Note 1 of the Notes to Financial Statements for details of
municipal bonds transferred to tender option bond trusts.
(m)	FSA Insured.
(n)	Security may have a maturity of more than one year at time
of issuance, but has variable rate and demand features that qualify it as a
short-term security. Rate shown is as of report date. This rate changes
periodically based upon prevailing market rates.
•	For Trust compliance purposes, the Trust’s industry
classifications refer to any one or more of the industry sub-classifications
used by one or more widely recognized market indexes or ratings group
indexes, and/or as defined by Trust management. This definition may not apply
for purposes of this report which may combine industry sub-classifications
for reporting ease.
•	Financial Accounting Standards Board Statement of
Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS
157”), clarifies the definition of fair value, establishes a framework for
measuring fair values and requires additional disclosures about the use of
fair value measurements. Various inputs are used in determining the fair
value of investments, which are as follows:

| • | Level 1 - price quotations in active markets/exchanges for
identical securities |
| --- | --- |
| • | Level 2 - other observable inputs (including, but not
limited to: quoted prices for similar assets or liabilities in markets that
are 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 circumstance, to the extent observable inputs
are not available (including the Trust’s own assumption used in determining
the fair value of investments) |

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Trust’s 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 February 28, 2009 in determining the fair valuation of the Trust’s investments:

| Valuation Inputs | Investments
in Securities |
| --- | --- |
| | Assets |
| Level 1 | — |
| Level 2 | $ 41,552,175 |
| Level 3 | — |
| Total | $ 41,552,175 |

See Notes to Financial Statements. — SEMI-ANNUAL REPORT	FEBRUARY 28, 2009	41

Statements of Assets and Liabilities

February 28, 2009 (Unaudited)	BlackRock California Insured Municipal Income Trust (BCK)
Assets
Investments
at value - unaffiliated 1	$ 106,156,666	$	70,960,910	$	163,024,895	$	38,003,937
Investments
at value - affiliated 2	9,410,597		2,248,240		6,141,300		4,502,411
Cash	60,568		39,826		7,658		19,463
Investments
sold receivable	—		1,886,817		1,610,417		—
Interest
receivable	946,192		792,686		1,723,028		502,810
Income
receivable - affiliated	35		34		68		37
Prepaid
expenses	7,326		4,888		11,241		2,879
Other
assets	3,880		3,789		7,524		4,117
Total
assets	116,585,264		75,937,190		172,526,131		43,035,654
Liabilities
Investments
purchased payable	4,894,100		—		—		—
Income
dividends payable - Common Shares	295,573		211,399		455,988		133,763
Investment
advisory fees payable	37,816		26,221		58,553		14,559
Interest
expense and fees payable	26,846		3,939		21,381		2,578
Other
affiliates payable	790		560		1,220		305
Officer’s
and Directors’/Trustees’ fees payable	4,964		4,249		8,135		5,190
Other
liabilities	—		—		—		—
Other
accrued expenses payable	52,435		56,287		51,358		39,784
Total
accrued liabilities	5,312,524		302,655		596,635		196,179
Other Liabilities
Trust
certificates 3	4,771,849		1,998,847		10,035,291		1,500,000
Total Liabilities	10,084,373		2,301,502		10,631,926		1,696,179
Preferred Shares at Redemption Value
Preferred
Shares at liquidation preference, plus unpaid dividends 4,5	37,556,582		27,979,904		59,756,135		16,001,184
Net Assets Applicable to Common
Shareholders	$ 68,944,309	$	45,655,784	$	102,138,070	$	25,338,291
Net Assets Applicable to Common Shareholders Consist of
Common
Shares, par value per share 6,7,8	$ 5,278	$	3,410	$	8,000	$	2,045
Paid-in
capital in excess of par	74,835,958		48,406,377		113,484,176		28,972,364
Undistributed
net investment income	390,680		322,400		950,672		204,582
Accumulated
net realized gain (loss)	(1,721,180	)	70,968		(5,708,339	)	(427,384	)
Net
unrealized appreciation/depreciation	(4,566,427	)	(3,147,371	)	(6,596,439	)	(3,413,316	)
Net Assets Applicable to Common
Shareholders	$ 68,944,309	$	45,655,784	$	102,138,070	$	25,338,291
Net asset
value per Common Share	$ 13.06	$	13.39	$	12.77	$	12.39
1 Investments
at cost - unaffiliated	$ 110,723,093	$	74,108,281	$	169,621,334	$	41,417,253
2 Investments
at cost - affiliated	$ 9,410,597	$	2,248,240	$	6,141,300	$	4,502,411
3 Represents
short-term floating rate certificates issued by tender option bond trusts
4 Preferred
Shares outstanding:
Par value
$0.001 per share	1,502		1,119		2,390		640
Par value
$0.01 per share	—		—		—		—
Par value
$0.10 per share	—		—		—		—
5 Preferred
Shares at liquidation preference	$ 25,000	$	25,000	$	25,000	$	25,000
6 Common
Shares outstanding	5,278,087		3,409,668		7,999,789		2,045,313
7 Common
Shares authorized	unlimited		unlimited		unlimited		unlimited
8 Par
value
per Common Share	$ 0.001	$	0.001	$	0.001	$	0.001

See Notes to Financial Statements. — 42	SEMI-ANNUAL REPORT	FEBRUARY 28, 2009

February 28, 2009 (Unaudited)	BlackRock MuniHoldings New York Insured Fund, Inc. (MHN)
Assets
Investments
at value - unaffiliated 1	$ 675,381,080	$	43,216,506	$	126,877,717	$	57,439,086	$	105,729,130	$	34,769,618	$	41,552,175
Investments
at value - affiliated 2	16,044,997		3,049,223		6,009,862		2,736,776		2,055,271		—		—
Cash	65,442		91,422		62,414		36,048		33,486		101,649		4,067,827
Investments
sold receivable	1,121,088		—		—		—		94,093		15,000		—
Interest
receivable	9,082,990		612,541		1,470,016		808,627		1,372,039		503,343		627,510
Income
receivable - affiliated	270		36		35		37		47		29		—
Prepaid
expenses	20,582		3,293		8,884		3,944		6,883		2,266		1,390
Other
assets	20,159		3,947		3,906		4,088		5,213		3,282		—
Total
assets	701,736,608		46,976,968		134,432,834		61,028,606		109,296,162		35,395,187		46,248,902
Liabilities
Investments
purchased payable	1,510,125		—		2,013,500		—		—		1,074,100		858,750
Income
dividends payable - Common Shares	1,632,142		162,490		375,547		187,695		308,794		112,762		114,859
Investment
advisory fees payable	243,838		15,518		44,990		21,315		38,400		12,230		17,977
Interest
expense and fees payable	431,791		—		57,814		8,350		—		1,956		1,160
Other
affiliates payable	4,816		370		930		392		715		255		291
Officer’s
and Directors’/Trustees’ fees payable	20,548		4,391		4,414		4,552		5,743		4,175		27
Other
liabilities	1,294		—		—		—		—		16		—
Other
accrued expenses payable	143,080		56,578		58,797		65,663		43,585		35,817		52,465
Total
accrued liabilities	3,987,634		239,347		2,555,992		287,967		397,237		1,241,311		1,045,529
Other Liabilities
Trust
certificates 3	56,312,240		—		9,308,740		1,321,257		—		1,000,000		1,339,595
Total Liabilities	60,299,874		239,347		11,864,732		1,609,224		397,237		2,241,311		2,385,124
Preferred Shares at Redemption Value
Preferred
Shares at liquidation preference, plus unpaid dividends 4,5	252,909,375		19,202,885		41,678,083		22,402,946		44,654,619		12,175,900		18,502,174
Net Assets Applicable to Common
Shareholders	$ 388,527,359	$	27,534,736	$	80,890,019	$	37,016,436	$	64,244,306	$	20,977,976	$	25,361,604
Net Assets Applicable to
Common Shareholders Consist of
Common
Shares, par value per share 6,7,8	$ 3,079,514	$	2,305	$	6,475	$	2,760	$	4,941	$	1,557	$	23,441
Paid-in
capital in excess of par	470,986,538		32,675,348		91,845,967		39,181,450		70,053,876		22,105,134		29,660,491
Undistributed
net investment income	2,144,209		257,575		700,661		332,291		776,907		301,007		357,173
Accumulated
net realized gain (loss)	(46,670,195	)	(190,250	)	(3,121,994	)	6,438		(868,415	)	505,864		(908,604	)
Net
unrealized appreciation/depreciation	(41,012,707	)	(5,210,242	)	(8,541,090	)	(2,506,503	)	(5,723,003	)	(1,935,586	)	(3,770,897	)
Net Assets Applicable to Common
Shareholders	$ 388,527,359	$	27,534,736	$	80,890,019	$	37,016,436	$	64,244,306	$	20,977,976	$	25,361,604
Net asset
value per Common Share	$ 12.62	$	11.95	$	12.49	$	13.41	$	13.00	$	13.47	$	10.82
1 Investments
at cost - unaffiliated	$ 716,393,787	$	48,426,748	$	135,418,807	$	59,945,589	$	111,452,133	$	36,705,204	$	45,323,072
2 Investments
at cost - affiliated	$ 16,044,997	$	3,049,223	$	6,009,862	$	2,736,776	$	2,055,271	$	—
3 Represents
short-term floating rate certificates issued by tender option bond trusts
4 Preferred
Shares outstanding:
Par value
$0.001 per share	—		768		1,667		896		1,786		487		—
Par value
$0.01 per share	—		—		—		—		—		—		370
Par value
$0.10 per share	10,115		—		—		—		—		—		—
5 Preferred
Shares at liquidation preference	$ 25,000	$	25,000	$	25,000	$	25,000	$	25,000	$	25,000	$	50,000
6 Common
Shares outstanding	30,795,138		2,304,823		6,474,946		2,760,221		4,940,705		1,556,890		2,344,067
7 Common
Shares authorized	200,000,000		unlimited		unlimited		unlimited		unlimited		unlimited		unlimited
8 Par
value
per Common Share	$ 0.10	$	0.001	$	0.001	$	0.001	$	0.001	$	0.001	$	0.01

SEMI-ANNUAL REPORT FEBRUARY 28, 2009 43

Statements of Operations

| Six Months Ended February 28, 2009
(Unaudited) | BlackRock California Insured Municipal Income Trust (BCK) | | BlackRock California Municipal Bond Trust (BZA) | | BlackRock California Municipal Income Trust II (BCL) | | BlackRock Maryland Municipal Bond Trust (BZM) | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Investment
Income | | | | | | | | |
| Interest | $ 2,755,905 | | $ 2,114,427 | | $ 4,677,852 | | $ 1,148,308 | |
| Income -
affiliated | 35,082 | | 14,083 | | 38,983 | | 21,608 | |
| Total
income | 2,790,987 | | 2,128,510 | | 4,716,835 | | 1,169,916 | |
| Expenses | | | | | | | | |
| Investment
advisory | 300,183 | | 238,905 | | 459,969 | | 137,892 | |
| Commissions
for Preferred Shares | 37,064 | | 27,649 | | 57,005 | | 14,684 | |
| Professional | 31,227 | | 30,991 | | 34,779 | | 27,783 | |
| Accounting
services | 11,050 | | 10,031 | | 17,799 | | 6,840 | |
| Transfer
agent | 9,787 | | 9,822 | | 15,099 | | 9,329 | |
| Printing | 7,614 | | 4,717 | | 10,230 | | 2,592 | |
| Officer and
Directors/Trustees | 3,688 | | 1,451 | | 3,423 | | 561 | |
| Registration | 4,693 | | 4,697 | | 1,681 | | 411 | |
| Custodian | 4,240 | | 3,388 | | 5,785 | | 1,935 | |
| Miscellaneous | 20,371 | | 19,634 | | 25,256 | | 16,774 | |
| Total
expenses excluding interest expense and fees | 429,917 | | 351,285 | | 631,026 | | 218,801 | |
| Interest
expense and fees 1 | 88,285 | | 18,091 | | 94,203 | | 22,006 | |
| Total
expenses | 518,202 | | 369,376 | | 725,229 | | 240,807 | |
| Less fees
waived by advisor | (78,420 | ) | (78,961 | ) | (101,690 | ) | (45,485 | ) |
| Less fees
paid indirectly | — | | — | | — | | — | |
| Total
expenses after fees waived and paid indirectly | 439,782 | | 290,415 | | 623,539 | | 195,322 | |
| Net
investment income | 2,351,205 | | 1,838,095 | | 4,093,296 | | 974,594 | |
| Realized and
Unrealized Gain (Loss) | | | | | | | | |
| Net
realized gain (loss) from: | | | | | | | | |
| Investments | (306,909 | ) | 574,007 | | (1,360,484 | ) | (403,438 | ) |
| Futures and
forward interest rate swaps | — | | — | | (521,411 | ) | — | |
| | (306,909 | ) | 574,007 | | (1,881,895 | ) | (403,438 | ) |
| Net change
in unrealized appreciation/depreciation on: | | | | | | | | |
| Investments | (5,111,298 | ) | (5,739,707 | ) | (9,155,237 | ) | (3,747,159 | ) |
| Futures and
forward interest rate swaps | — | | — | | 375,543 | | — | |
| | (5,111,298 | ) | (5,739,707 | ) | (8,779,694 | ) | (3,747,159 | ) |
| Total
realized and unrealized loss | (5,418,207 | ) | (5,165,700 | ) | (10,661,589 | ) | (4,150,597 | ) |
| Dividends and
Distributions to
Preferred Shareholders From | | | | | | | | |
| Net
investment income | (518,053 | ) | (383,043 | ) | (820,457 | ) | (219,872 | ) |
| Net
realized gain | — | | (4,924 | ) | — | | (2,361 | ) |
| | (518,053 | ) | (387,967 | ) | (820,457 | ) | (222,233 | ) |
| Net Decrease in Net Assets Applicable
to Common Shareholders Resulting
from Operations | $ (3,585,055 | ) | $ (3,715,572 | ) | $ (7,388,750 | ) | $ (3,398,236 | ) |
| 1 Related to
tender option bond trusts. | | | | | | | | |

See Notes to Financial Statements. — 44	SEMI-ANNUAL REPORT	FEBRUARY 28, 2009

| Six Months Ended
February 28, 2009 (Unaudited) | BlackRock MuniHoldings New York Insured (MHN) | | BlackRock New Jersey Municipal Bond Trust (BLJ) | | BlackRock New York Insured Municipal Income Trust (BSE) | | BlackRock New York Municipal Bond Trust (BQH) | | BlackRock New York Municipal Income Trust II (BFY) | | BlackRock Virginia Municipal Bond Trust (BHV) | | The Massachusetts Health & Tax- Exempt Trust (MHE) | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Investment
Income | | | | | | | | | | | | | | |
| Interest | $ 17,094,631 | | $ 1,331,721 | | $ 3,345,753 | | $ 1,734,942 | | $ 2,939,143 | | $ 840,458 | | $ 1,184,629 | |
| Income - affiliated | 80,263 | | 37,950 | | 11,270 | | 2,174 | | 13,361 | | 314 | | — | |
| Total income | 17,174,894 | | 1,369,671 | | 3,357,023 | | 1,737,116 | | 2,952,504 | | 840,772 | | 1,184,629 | |
| Expenses | | | | | | | | | | | | | | |
| Investment advisory | 1,886,027 | | 151,321 | | 351,892 | | 192,663 | | 291,032 | | 109,526 | | 111,538 | |
| Commissions for Preferred
Shares | 260,814 | | 18,719 | | 38,796 | | 22,196 | | 43,035 | | 11,730 | | 20,970 | |
| Professional | 65,831 | | 27,626 | | 35,023 | | 27,116 | | 32,116 | | 23,259 | | 33,897 | |
| Accounting services | 103,781 | | 9,490 | | 12,797 | | 9,413 | | 9,973 | | 1,969 | | 4,903 | |
| Transfer agent | 33,530 | | 9,915 | | 9,589 | | 7,406 | | 10,811 | | 9,728 | | 12,472 | |
| Printing | 24,100 | | 2,519 | | 10,113 | | 3,131 | | 5,807 | | 1,393 | | — | |
| Officer and Directors/Trustees | 24,004 | | 785 | | 3,526 | | 308 | | 1,656 | | 496 | | 2,022 | |
| Registration | 5,680 | | 493 | | 4,622 | | 4,838 | | 1,065 | | 328 | | 580 | |
| Custodian | 19,029 | | 2,275 | | 4,400 | | 2,431 | | 4,662 | | 1,801 | | 3,176 | |
| Miscellaneous | 60,497 | | 18,929 | | 23,336 | | 19,759 | | 23,977 | | 18,735 | | 10,671 | |
| Total expenses excluding interest expense
and fees | 2,483,293 | | 242,072 | | 494,094 | | 289,261 | | 424,134 | | 178,965 | | 200,229 | |
| Interest expense and
fees 1 | 877,602 | | 5,880 | | 174,069 | | 14,274 | | — | | 11,844 | | 15,869 | |
| Total expenses | 3,360,895 | | 247,952 | | 668,163 | | 303,535 | | 424,134 | | 190,809 | | 216,098 | |
| Less fees waived by advisor | (443,709 | ) | (54,996 | ) | (83,546 | ) | (62,768 | ) | (57,566 | ) | (33,700 | ) | — | |
| Less fees paid indirectly | — | | — | | — | | — | | — | | — | | (498 | ) |
| Total expenses after fees waived and paid
indirectly | 2,917,186 | | 192,956 | | 584,617 | | 240,767 | | 366,568 | | 157,109 | | 215,600 | |
| Net investment income | 14,257,708 | | 1,176,715 | | 2,772,406 | | 1,496,349 | | 2,585,936 | | 683,663 | | 969,029 | |
| Realized and
Unrealized Gain (Loss) | | | | | | | | | | | | | | |
| Net realized gain (loss) from: | | | | | | | | | | | | | | |
| Investments | (2,179,727 | ) | 84,165 | | (2,302,979 | ) | 68,948 | | 178,648 | | 551,774 | | (506,420 | ) |
| Futures and forward interest rate
swaps | 67,701 | | — | | 12,943 | | 5,974 | | 10,951 | | — | | (99,000 | ) |
| | (2,112,026 | ) | 84,165 | | (2,290,036 | ) | 74,922 | | 189,599 | | 551,774 | | (605,420 | ) |
| Net change in unrealized
appreciation/depreciation on: | | | | | | | | | | | | | | |
| Investments | (38,807,258 | ) | (5,111,644 | ) | (7,093,856 | ) | (3,713,673 | ) | (6,601,326 | ) | (2,558,804 | ) | (3,532,225 | ) |
| Futures and forward interest rate
swaps | — | | — | | — | | — | | — | | — | | 83,017 | |
| | (38,807,258 | ) | (5,111,644 | ) | (7,093,856 | ) | (3,713,673 | ) | (6,601,326 | ) | (2,558,804 | ) | (3,449,208 | ) |
| Total realized and unrealized
loss | (40,919,284 | ) | (5,027,479 | ) | (9,383,892 | ) | (3,638,751 | ) | (6,411,727 | ) | (2,007,030 | ) | (4,054,628 | ) |
| Dividends and
Distributions to Preferred Shareholders From | | | | | | | | | | | | | | |
| Net investment income | (3,501,557 | ) | (264,225 | ) | (576,364 | ) | (303,259 | ) | (621,123 | ) | (140,542 | ) | (258,962 | ) |
| Net realized gain | — | | — | | — | | (3,799 | ) | — | | (45,559 | ) | — | |
| | (3,501,557 | ) | (264,225 | ) | (576,364 | ) | (307,058 | ) | (621,123 | ) | (186,101 | ) | (258,962 | ) |
| Net Decrease in Net Assets Applicable
to
Common Shareholders Resulting from Operations | $ (30,163,133 | ) | $ (4,114,989 | ) | $ (7,187,850 | ) | $ (2,449,460 | ) | $ (4,446,914 | ) | $ (1,509,468 | ) | $ (3,344,561 | ) |

See Notes to Financial Statements. — SEMI-ANNUAL REPORT	FEBRUARY 28, 2009	45

Statements of Changes in Net Assets

| Increase
(Decrease) in Net Assets Applicable to Common Shareholders: | BlackRock California Insured Municipal Income Trust (BCK) — Six Months Ended February 28, 2009 (Unaudited) | Year Ended August 31, 2008 | | Six Months Ended February 28, 2009 (Unaudited) | | Year Ended August 31, 2008 | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Operations | | | | | | | | |
| Net investment income | $ 2,351,205 | $ | 5,029,423 | $ | 1,838,095 | $ | 3,804,585 | |
| Net realized gain (loss) | (306,909 | ) | (696,593 | ) | 574,007 | | 16,331 | |
| Net change in unrealized appreciation/depreciation | (5,111,298 | ) | (2,327,135 | ) | (5,739,707 | ) | (1,372,393 | ) |
| Dividends and distributions to Preferred Shareholders from: | | | | | | | | |
| Net investment income | (518,053 | ) | (1,418,583 | ) | (383,043 | ) | (1,029,626 | ) |
| Net realized gain | — | | — | | (4,924 | ) | — | |
| Net increase (decrease) in net assets applicable to Common
Shareholders resulting from operations | (3,585,055 | ) | 587,112 | | (3,715,572 | ) | 1,418,897 | |
| Dividends and Distributions to Common
Shareholders From | | | | | | | | |
| Net investment income | (1,773,437 | ) | (3,641,581 | ) | (1,268,397 | ) | (3,103,983 | ) |
| Net realized gain | — | | — | | (9,946 | ) | — | |
| Decrease in net assets resulting from dividends and distributions to
Common Shareholders | (1,773,437 | ) | (3,641,581 | ) | (1,278,343 | ) | (3,103,983 | ) |
| Capital Share Transactions | | | | | | | | |
| Reinvestment of common dividends | — | | 19,225 | | — | | 351,551 | |
| Net Assets Applicable to Common
Shareholders | | | | | | | | |
| Total decrease in net assets applicable to Common
Shareholders | (5,358,492 | ) | (3,035,244 | ) | (4,993,915 | ) | (1,333,535 | ) |
| Beginning of period | 74,302,801 | | 77,338,045 | | 50,649,699 | | 51,983,234 | |
| End of period | $ 68,944,309 | $ | 74,302,801 | $ | 45,655,784 | $ | 50,649,699 | |
| End of period undistributed net investment income | $ 390,680 | $ | 330,965 | $ | 322,400 | $ | 135,745 | |

| Increase
(Decrease) in Net Assets Applicable to Common Shareholders: | BlackRock New York Insured Municipal Income Trust (BSE) — Six Months Ended February 28, 2009 (Unaudited) | Year Ended August 31, 2008 | | Six Months Ended February 28, 2009 (Unaudited) | | Year Ended August 31, 2008 | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Operations | | | | | | | | |
| Net investment income | $ 2,772,406 | $ | 6,193,181 | $ | 1,496,349 | $ | 3,123,151 | |
| Net realized gain (loss) | (2,290,036 | ) | (653,991 | ) | 74,922 | | 51,106 | |
| Net change in unrealized appreciation/depreciation | (7,093,856 | ) | (3,146,975 | ) | (3,713,673 | ) | (1,618,246 | ) |
| Dividends and distributions to Preferred Shareholders from: | | | | | | | | |
| Net investment income | (576,364 | ) | (1,637,764 | ) | (303,259 | ) | (796,921 | ) |
| Net realized gain | — | | (82,413 | ) | (3,799 | ) | (19,635 | ) |
| Net increase (decrease) in net assets applicable to Common
Shareholders resulting from operations | (7,187,850 | ) | 672,038 | | (2,449,460 | ) | 739,455 | |
| Dividends and Distributions to Common
Shareholders From | | | | | | | | |
| Net investment income | (2,253,281 | ) | (4,505,354 | ) | (1,126,170 | ) | (2,552,826 | ) |
| Net realized gain | — | | (221,583 | ) | (10,873 | ) | (62,036 | ) |
| Decrease in net assets resulting from dividends and distributions to
Common Shareholders | (2,253,281 | ) | (4,726,937 | ) | (1,137,043 | ) | (2,614,862 | ) |
| Capital Share Transactions | | | | | | | | |
| Reinvestment of common dividends | — | | 72,019 | | — | | 318,829 | |
| Net Assets Applicable to Common
Shareholders | | | | | | | | |
| Total decrease in net assets applicable to Common
Shareholders | (9,441,131 | ) | (3,982,880 | ) | (3,586,503 | ) | (1,556,578 | ) |
| Beginning of period | 90,331,150 | | 94,314,030 | | 40,602,939 | | 42,159,517 | |
| End of period | $ 80,890,019 | $ | 90,331,150 | $ | 37,016,436 | $ | 40,602,939 | |
| End of period undistributed net investment income | $ 700,661 | $ | 757,900 | $ | 332,291 | $ | 265,371 | |

See Notes to Financial Statements. — 46	SEMI-ANNUAL REPORT	FEBRUARY 28, 2009

| Increase
(Decrease) in Net Assets Applicable to Common Shareholders: | BlackRock California Municipal Income Trust II (BCL) — Six Months Ended February 28, 2009 (Unaudited) | Year Ended August 31, 2008 | | Six Months Ended February 28, 2009 (Unaudited) | | Year Ended August 31, 2008 | | Six Months Ended February 28, 2009 (Unaudited) | | Year Ended August 31, 2008 | | Six Months Ended February 28, 2009 (Unaudited) | | Year Ended August 31, 2008 | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Operations | | | | | | | | | | | | | | | | |
| Net investment income | $ 4,093,296 | $ | 8,516,520 | $ | 974,594 | $ | 2,187,858 | $ | 14,257,708 | $ | 30,229,458 | $ | 1,176,715 | $ | 2,624,072 | |
| Net realized gain (loss) | (1,881,895 | ) | (240,663 | ) | (403,438 | ) | 52,367 | | (2,112,026 | ) | (4,358,744 | ) | 84,165 | | (274,414 | ) |
| Net change in unrealized
appreciation/depreciation | (8,779,694 | ) | (7,181,675 | ) | (3,747,159 | ) | (801,629 | ) | (38,807,258 | ) | (10,569,389 | ) | (5,111,644 | ) | (2,291,456 | ) |
| Dividends and distributions to Preferred
Shareholders from: | | | | | | | | | | | | | | | | |
| Net investment income | (820,457 | ) | (2,305,653 | ) | (219,872 | ) | (575,579 | ) | (3,501,557 | ) | (9,817,592 | ) | (264,225 | ) | (675,482 | ) |
| Net realized gain | — | | — | | (2,361 | ) | (10,561 | ) | — | | — | | — | | (6,860 | ) |
| Net increase (decrease) in net assets applicable to
Common
Shareholders resulting from operations | (7,388,750 | ) | (1,211,471 | ) | (3,398,236 | ) | 852,456 | | (30,163,133 | ) | 5,483,733 | | (4,114,989 | ) | (624,140 | ) |
| Dividends and Distributions
to Common Shareholders From | | | | | | | | | | | | | | | | |
| Net investment income | (2,735,928 | ) | (6,207,529 | ) | (801,903 | ) | (1,770,800 | ) | (9,856,970 | ) | (20,232,405 | ) | (974,350 | ) | (2,176,081 | ) |
| Net realized gain | — | | — | | (6,564 | ) | (29,818 | ) | — | | — | | — | | (21,875 | ) |
| Decrease in net assets resulting from dividends and
distributions to
Common Shareholders | (2,735,928 | ) | (6,207,529 | ) | (808,467 | ) | (1,800,618 | ) | (9,856,970 | ) | (20,232,405 | ) | (974,350 | ) | (2,197,956 | ) |
| Capital Share
Transactions | | | | | | | | | | | | | | | | |
| Reinvestment of common dividends | — | | 78,795 | | 56,905 | | 134,190 | | — | | — | | 40,264 | | 159,974 | |
| Net Assets Applicable
to Common Shareholders | | | | | | | | | | | | | | | | |
| Total decrease in net assets applicable to Common
Shareholders | (10,124,678 | ) | (7,340,205 | ) | (4,149,798 | ) | (813,972 | ) | (40,020,103 | ) | (14,748,672 | ) | (5,049,075 | ) | (2,662,122 | ) |
| Beginning of period | 112,262,748 | | 119,602,953 | | 29,488,089 | | 30,302,061 | | 428,547,462 | | 443,296,134 | | 32,583,811 | | 35,245,933 | |
| End of period | $ 102,138,070 | $ | 112,262,748 | $ | 25,338,291 | $ | 29,488,089 | $ | 388,527,359 | $ | 428,547,462 | $ | 27,534,736 | $ | 32,583,811 | |
| End of period undistributed net investment
income | $ 950,672 | $ | 413,761 | $ | 204,582 | $ | 251,763 | $ | 2,144,209 | $ | 1,245,028 | $ | 257,575 | $ | 319,435 | |

| Increase
(Decrease) in Net Assets Applicable to Common Shareholders: | BlackRock New York Municipal Income Trust II (BFY) — Six Months Ended February 28, 2009 (Unaudited) | Year Ended August 31, 2008 | | Six Months Ended February 28, 2009 (Unaudited) | | Year Ended August 31, 2008 | | Six Months Ended February 28, 2009 (Unaudited) | | Period January 1, 2008 to August 31, 2008 | | Year Ended December 31, 2007 | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Operations | | | | | | | | | | | | | | |
| Net investment income | $ 2,585,936 | $ | 5,330,243 | $ | 683,663 | $ | 1,723,577 | $ | 969,029 | $ | 1,371,557 | $ | 2,150,393 | |
| Net realized gain (loss) | 189,599 | | (987,855 | ) | 551,774 | | 292,759 | | (605,420 | ) | (142,627 | ) | (90,387 | ) |
| Net change in unrealized
appreciation/depreciation | (6,601,326 | ) | (1,764,010 | ) | (2,558,804 | ) | (1,013,968 | ) | (3,449,208 | ) | (1,202,802 | ) | (1,821,519 | ) |
| Dividends and distributions to Preferred
Shareholders from: | | | | | | | | | | | | | | |
| Net investment income | (621,123 | ) | (1,408,467 | ) | (140,542 | ) | (457,881 | ) | (258,962 | ) | (408,081 | ) | (718,637 | ) |
| Net realized gain | — | | (35,412 | ) | (45,559 | ) | — | | — | | — | | — | |
| Net increase (decrease) in net assets applicable to
Common
Shareholders resulting from operations | (4,446,914 | ) | 1,134,499 | | (1,509,468 | ) | 544,487 | | (3,344,561 | ) | (381,953 | ) | (480,150 | ) |
| Dividends and Distributions to Common Shareholders From | | | | | | | | | | | | | | |
| Net investment income | (1,852,764 | ) | (3,827,367 | ) | (675,720 | ) | (1,394,947 | ) | (709,790 | ) | (918,874 | ) | (1,378,312 | ) |
| Net realized gain | — | | (84,756 | ) | (247,310 | ) | — | | — | | — | | (5,635 | ) |
| Decrease in net assets resulting from dividends and
distributions to
Common Shareholders | (1,852,764 | ) | (3,912,123 | ) | (923,030 | ) | (1,394,947 | ) | (709,790 | ) | (918,874 | ) | (1,383,947 | ) |
| Capital Share Transactions | | | | | | | | | | | | | | |
| Reinvestment of common dividends | — | | 19,335 | | 63,551 | | 144,001 | | — | | — | | — | |
| Net Assets Applicable to Common Shareholders | | | | | | | | | | | | | | |
| Total decrease in net assets applicable to Common
Shareholders | (6,299,678 | ) | (2,758,289 | ) | (2,368,947 | ) | (706,459 | ) | (4,054,351 | ) | (1,300,827 | ) | (1,864,097 | ) |
| Beginning of period | 70,543,984 | | 73,302,273 | | 23,346,923 | | 24,053,382 | | 29,415,955 | | 30,716,782 | | 32,580,879 | |
| End of period | $ 64,244,306 | $ | 70,543,984 | $ | 20,977,976 | $ | 23,346,923 | $ | 25,361,604 | $ | 29,415,955 | $ | 30,716,782 | |
| End of period undistributed net investment
income | $ 776,907 | $ | 664,858 | $ | 301,007 | $ | 433,606 | $ | 357,173 | $ | 356,896 | $ | 323,091 | |

| See Notes to Financial Statements. — SEMI-ANNUAL
REPORT | FEBRUARY 28, 2009 | 47 |
| --- | --- | --- |

Financial Highlights BlackRock California Insured Municipal Income Trust (BCK)

| | Six
Months Ended February 28, 2009 (Unaudited) | | | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | | 2008 | | 2007 | | 2006 | | 2005 | | 2004 | | |
| Per Share Operating
Performance | | | | | | | | | | | | |
| Net asset
value, beginning of period | $ 14.08 | $ | 14.66 | $ | 15.24 | $ | 15.22 | $ | 14.01 | $ | 13.09 | |
| Net
investment income | 0.45 | 1 | 0.95 | 1 | 0.99 | | 0.98 | | 0.99 | | 1.02 | |
| Net
realized and unrealized gain (loss) | (1.03 | ) | (0.57 | ) | (0.59 | ) | (0.01 | ) | 1.27 | | 0.89 | |
| Dividends
to Preferred Shareholders from net investment income | (0.10 | ) | (0.27 | ) | (0.28 | ) | (0.24 | ) | (0.15 | ) | (0.08 | ) |
| Net
increase (decrease) from investment operations | (0.68 | ) | 0.11 | | 0.12 | | 0.73 | | 2.11 | | 1.83 | |
| Dividends
and distributions to Common Shareholders from: | | | | | | | | | | | | |
| Net
investment income | (0.34 | ) | (0.69 | ) | (0.70 | ) | (0.71 | ) | (0.90 | ) | (0.90 | ) |
| Net
realized gain | — | | — | | — | | — | | — | | (0.01 | ) |
| Total
dividends and distributions to Common Shareholders | (0.34 | ) | (0.69 | ) | (0.70 | ) | (0.71 | ) | (0.90 | ) | (0.91 | ) |
| Net asset
value, end of period | $ 13.06 | $ | 14.08 | $ | 14.66 | $ | 15.24 | $ | 15.22 | $ | 14.01 | |
| Market
price, end of period | $ 10.78 | $ | 12.95 | $ | 14.30 | $ | 14.61 | $ | 16.08 | $ | 14.00 | |
| Total Investment
Return 2 | | | | | | | | | | | | |
| Based on
net asset value | (4.29 | )% 3 | 0.92 | % | 0.76 | % | 5.22 | % | 15.62 | % | 14.34 | % |
| Based on
market price | (14.11 | )% 3 | (4.84 | )% | 2.52 | % | (4.53 | )% | 22.24 | % | 14.97 | % |
| Ratios to Average Net Assets
Applicable to Common Shares | | | | | | | | | | | | |
| Total
expenses after waiver and fees paid indirectly and excluding interest expense
and fees 4,5 | 1.07 | % 6 | 1.00 | % | 0.90 | % | 0.95 | % | 0.97 | % | 0.99 | % |
| Total
expenses after waiver and fees paid indirectly 5 | 1.34 | % 6 | 1.07 | % | 0.90 | % | 0.95 | % | 0.97 | % | 0.99 | % |
| Total
expenses after waiver and before fees paid indirectly 5 | 1.34 | % 6 | 1.07 | % | 0.92 | % | 0.97 | % | 0.98 | % | 0.99 | % |
| Total
expenses 5 | 1.58 | % 6 | 1.36 | % | 1.24 | % | 1.28 | % | 1.30 | % | 1.32 | % |
| Net
investment income 5 | 7.16 | % 6 | 6.54 | % | 6.50 | % | 6.58 | % | 6.72 | % | 7.26 | % |
| Dividends
paid to Preferred Shareholders | 1.58 | % 6 | 1.85 | % | 1.87 | % | 1.63 | % | 1.04 | % | 0.54 | % |
| Net
investment income to Common Shareholders | 5.58 | % 6 | 4.69 | % | 4.63 | % | 4.95 | % | 5.68 | % | 6.72 | % |
| Supplemental Data | | | | | | | | | | | | |
| Net assets
applicable to Common Shareholders, end of period (000) | $ 68,944 | $ | 74,303 | $ | 77,338 | $ | 80,418 | $ | 80,289 | $ | 73,823 | |
| Preferred
Shares outstanding at liquidation preference, end of period (000) | $ 37,550 | $ | 37,550 | $ | 46,500 | $ | 46,500 | $ | 46,500 | $ | 46,500 | |
| Portfolio
turnover | 30 | % | 35 | % | 28 | % | 20 | % | 16 | % | 4 | % |
| Asset
coverage per Preferred Share, end of period | $ 70,906 | $ | 74,484 | $ | 66,591 | $ | 68,241 | $ | 68,170 | $ | 64,691 | |

1	Based on average shares outstanding.
2	Total investment returns based on market value, which can
be significantly greater or lesser than the net asset value, may result in
substantially different returns. Total investment returns exclude the effects
of sales charges.
3	Aggregate total investment return.
4	Interest expense and fees relate to tender option bond
trusts. See Note 1 of the Notes to Financial Statements for details of
municipal bonds transferred to tender option bond trusts.
5	Do not reflect the effect of dividends to Preferred
Shareholders.
6	Annualized.

See Notes to Financial Statements. — 48	SEMI-ANNUAL REPORT	FEBRUARY 28, 2009

Financial Highlights BlackRock California Municipal Bond Trust (BZA)

| | Six
Months Ended February 28, 2009 (Unaudited) | | | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | | 2008 | | 2007 | | 2006 | | 2005 | | 2004 | | |
| Per Share Operating
Performance | | | | | | | | | | | | |
| Net asset
value, beginning of period | $ 14.85 | $ | 15.35 | $ | 16.28 | $ | 16.19 | $ | 14.67 | $ | 13.71 | |
| Net
investment income | 0.54 | 1 | 1.12 | 1 | 1.13 | | 1.14 | | 1.13 | | 1.15 | |
| Net
realized and unrealized gain (loss) | (1.52 | ) | (0.41 | ) | (0.82 | ) | 0.17 | | 1.50 | | 0.92 | |
| Dividends
and distributions to Preferred Shareholders from: | | | | | | | | | | | | |
| Net
investment income | (0.11 | ) | (0.30 | ) | (0.30 | ) | (0.26 | ) | (0.15 | ) | (0.07 | ) |
| Net
realized gain | (0.00 | ) 2 | — | | — | | — | | — | | (0.01 | ) |
| Net
increase (decrease) from investment operations | (1.09 | ) | 0.41 | | 0.01 | | 1.05 | | 2.48 | | 1.99 | |
| Dividends
and distributions to Common Shareholders from: | | | | | | | | | | | | |
| Net
investment income | (0.37 | ) | (0.91 | ) | (0.94 | ) | (0.96 | ) | (0.96 | ) | (0.96 | ) |
| Net
realized gain | (0.00 | ) 2 | — | | — | | — | | — | | (0.07 | ) |
| Total
dividends and distributions to Common Shareholders | (0.37 | ) | (0.91 | ) | (0.94 | ) | (0.96 | ) | (0.96 | ) | (1.03 | ) |
| Net asset
value, end of period | $ 13.39 | $ | 14.85 | $ | 15.35 | $ | 16.28 | $ | 16.19 | $ | 14.67 | |
| Market
price, end of period | $ 10.97 | $ | 14.48 | $ | 16.50 | $ | 18.05 | $ | 16.33 | $ | 13.90 | |
| Total Investment
Return 3 | | | | | | | | | | | | |
| Based on
net asset value | (6.71 | )% 4 | 2.64 | % | (0.33 | )% | 6.71 | % | 17.71 | % | 15.20 | % |
| Based on
market price | (21.61 | )% 4 | (6.89 | )% | (3.37 | )% | 17.30 | % | 25.31 | % | 13.80 | % |
| Ratios to Average Net Assets
Applicable to Common Shares | | | | | | | | | | | | |
| Total
expenses after waiver and fees paid indirectly and excluding interest expense
and fees 5,6 | 1.24 | % 7 | 1.09 | % | 0.94 | % | 0.96 | % | 1.00 | % | 1.06 | % |
| Total
expenses after waiver and fees paid indirectly 6 | 1.33 | % 7 | 1.11 | % | 0.94 | % | 0.96 | % | 1.00 | % | 1.06 | % |
| Total
expenses after waiver and before fees paid indirectly 6 | 1.33 | % 7 | 1.11 | % | 0.96 | % | 0.98 | % | 1.03 | % | 1.07 | % |
| Total
expenses 6 | 1.69 | % 7 | 1.52 | % | 1.41 | % | 1.45 | % | 1.50 | % | 1.55 | % |
| Net
investment income 6 | 8.40 | % 7 | 7.31 | % | 7.08 | % | 7.20 | % | 7.30 | % | 7.87 | % |
| Dividends
paid to Preferred Shareholders | 1.75 | % 7 | 1.98 | % | 1.87 | % | 1.64 | % | 0.98 | % | 0.49 | % |
| Net
investment income to Common Shareholders | 6.65 | % 7 | 5.33 | % | 5.21 | % | 5.56 | % | 6.32 | % | 7.38 | % |
| Supplemental Data | | | | | | | | | | | | |
| Net assets
applicable to Common Shareholders, end of period (000) | $ 45,656 | $ | 50,650 | $ | 51,983 | $ | 54,801 | $ | 54,265 | $ | 49,145 | |
| Preferred
Shares outstanding at liquidation preference, end of period (000) | $ 27,975 | $ | 27,975 | $ | 29,975 | $ | 29,975 | $ | 29,975 | $ | 29,975 | |
| Portfolio
turnover | 21 | % | 24 | % | 21 | % | 16 | % | 22 | % | 24 | % |
| Asset
coverage per Preferred Share, end of period | $ 65,805 | $ | 70,278 | $ | 68,364 | $ | 70,714 | $ | 70,263 | $ | 65,990 | |

1	Based on average 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. Total investment returns exclude the effects
of sales charges.
4	Aggregate total investment return.
5	Interest expense and fees relate to tender option bond
trusts. See Note 1 of the Notes to Financial Statements for details of
municipal bonds transferred to tender option bond trusts.
6	Do not reflect the effect of dividends to Preferred
Shareholders.
7	Annualized.

See Notes to Financial Statements. — SEMI-ANNUAL REPORT	FEBRUARY 28, 2009	49

Financial Highlights BlackRock California Municipal Income Trust II (BCL)

| | Six
Months Ended February 28, 2009 (Unaudited) | | | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | | 2008 | | 2007 | | 2006 | | 2005 | | 2004 | | |
| Per Share Operating
Performance | | | | | | | | | | | | |
| Net asset
value, beginning of period | $ 14.03 | $ | 14.96 | $ | 15.72 | $ | 15.52 | $ | 13.77 | $ | 12.76 | |
| Net
investment income | 0.51 | 1 | 1.06 | 1 | 1.07 | | 1.08 | | 1.09 | | 1.09 | |
| Net
realized and unrealized gain (loss) | (1.33 | ) | (0.92 | ) | (0.74 | ) | 0.16 | | 1.75 | | 0.97 | |
| Dividends
to Preferred Shareholders from net investment income | (0.10 | ) | (0.29 | ) | (0.30 | ) | (0.25 | ) | (0.15 | ) | (0.08 | ) |
| Net
increase (decrease) from investment operations | (0.92 | ) | (0.15 | ) | 0.03 | | 0.99 | | 2.69 | | 1.98 | |
| Dividends
to Common Shareholders from net investment income | (0.34 | ) | (0.78 | ) | (0.79 | ) | (0.79 | ) | (0.94 | ) | (0.97 | ) |
| Net asset
value, end of period | $ 12.77 | $ | 14.03 | $ | 14.96 | $ | 15.72 | $ | 15.52 | $ | 13.77 | |
| Market
price, end of period | $ 10.31 | $ | 12.70 | $ | 14.44 | $ | 15.40 | $ | 14.26 | $ | 13.71 | |
| Total Investment
Return 2 | | | | | | | | | | | | |
| Based on
net asset value | (5.87 | )% 3 | (0.89 | )% | 0.09 | % | 6.93 | % | 20.38 | % | 15.94 | % |
| Based on
market price | (16.04 | )% 3 | (7.05 | )% | (1.38 | )% | 14.01 | % | 11.09 | % | 13.21 | % |
| Ratios to Average Net Assets
Applicable to Common Shares | | | | | | | | | | | | |
| Total
expenses after waiver and fees paid indirectly and excluding interest expense
and fees 4,5 | 1.09 | % 6 | 1.08 | % | 0.95 | % | 0.98 | % | 1.01 | % | 1.05 | % |
| Total
expenses after waiver and fees paid indirectly 5 | 1.28 | % 6 | 1.13 | % | 0.95 | % | 0.98 | % | 1.01 | % | 1.05 | % |
| Total
expenses after waiver and before fees paid indirectly 5 | 1.28 | % 6 | 1.13 | % | 0.96 | % | 1.00 | % | 1.02 | % | 1.05 | % |
| Total
expenses 5 | 1.49 | % 6 | 1.29 | % | 1.19 | % | 1.24 | % | 1.26 | % | 1.30 | % |
| Net
investment income 5 | 8.41 | % 6 | 7.30 | % | 6.81 | % | 7.06 | % | 7.46 | % | 7.97 | % |
| Dividends
paid to Preferred Shareholders | 1.69 | % 6 | 1.97 | % | 1.89 | % | 1.62 | % | 1.00 | % | 0.58 | % |
| Net
investment income to Common Shareholders | 6.72 | % 6 | 5.33 | % | 4.92 | % | 5.44 | % | 6.46 | % | 7.39 | % |
| Supplemental Data | | | | | | | | | | | | |
| Net assets
applicable to Common Shares, end of period (000) | $ 102,138 | $ | 112,263 | $ | 119,603 | $ | 125,525 | $ | 123,920 | $ | 109,952 | |
| Preferred
Shares outstanding at liquidation preference, end of period (000) | $ 59,750 | $ | 59,750 | $ | 71,950 | $ | 71,950 | $ | 71,950 | $ | 71,950 | |
| Portfolio
turnover | 32 | % | 36 | % | 30 | % | 18 | % | 21 | % | 19 | % |
| Asset
coverage per Preferred Share, end of period | $ 67,738 | $ | 71,981 | $ | 66,563 | $ | 68,625 | $ | 68,063 | $ | 63,209 | |

1	Based on average shares outstanding.
2	Total investment returns based on market value, which can
be significantly greater or lesser than the net asset value, may result in
substantially different returns. Total investment returns exclude the effects
of sales charges.
3	Aggregate total investment return.
4	Interest expense and fees relate to tender option bond
trusts. See Note 1 of the Notes to Financial Statements for details of municipal
bonds transferred to tender option bond trusts.
5	Do not reflect the effect of dividends to Preferred
Shareholders.
6	Annualized.

See Notes to Financial Statements. — 50	SEMI-ANNUAL REPORT	FEBRUARY 28, 2009

Financial Highlights BlackRock Maryland Municipal Bond Trust (BZM)

| | Six
Months Ended February 28, 2009 (Unaudited) | | | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | | 2008 | | 2007 | | 2006 | | 2005 | | 2004 | | |
| Per Share Operating
Performance | | | | | | | | | | | | |
| Net asset
value, beginning of period | $ 14.45 | $ | 14.91 | $ | 15.98 | $ | 16.11 | $ | 15.24 | $ | 14.36 | |
| Net investment
income | 0.48 | 1 | 1.07 | 1 | 1.08 | | 1.07 | | 1.07 | | 1.06 | |
| Net
realized and unrealized gain (loss) | (2.04 | ) | (0.36 | ) | (0.99 | ) | (0.08 | ) | 0.83 | | 0.76 | |
| Dividends
and distributions to Preferred Shareholders from: | | | | | | | | | | | | |
| Net
investment income | (0.11 | ) | (0.28 | ) | (0.31 | ) | (0.26 | ) | (0.17 | ) | (0.08 | ) |
| Net
realized gain | (0.00 | ) 2 | (0.01 | ) | (0.00 | ) 2 | — | | — | | — | |
| Net
increase (decrease) from investment operations | (1.67 | ) | 0.42 | | (0.22 | ) | 0.73 | | 1.73 | | 1.74 | |
| Dividends
and distributions to Common Shareholders from: | | | | | | | | | | | | |
| Net
investment income | (0.39 | ) | (0.87 | ) | (0.85 | ) | (0.86 | ) | (0.86 | ) | (0.86 | ) |
| Net
realized gain | (0.00 | ) 2 | (0.01 | ) | (0.00 | ) 2 | — | | — | | — | |
| Total
dividends and distributions | (0.39 | ) | (0.88 | ) | (0.85 | ) | (0.86 | ) | (0.86 | ) | (0.86 | ) |
| Net asset
value, end of period | $ 12.39 | $ | 14.45 | $ | 14.91 | $ | 15.98 | $ | 16.11 | $ | 15.24 | |
| Market
price, end of period | $ 13.17 | $ | 15.75 | $ | 17.43 | $ | 17.45 | $ | 15.96 | $ | 14.99 | |
| Total Investment
Return 3 | | | | | | | | | | | | |
| Based on
net asset value | (11.58 | )%4 | 2.60 | % | (1.85 | )% | 4.57 | % | 11.73 | % | 12.50 | % |
| Based on
market price | (13.78 | )%4 | (4.33 | )% | 5.08 | % | 15.26 | % | 12.53 | % | 14.31 | % |
| Ratios to Average Net Assets
Applicable to Common Shares | | | | | | | | | | | | |
| Total
expenses after waiver and fees paid indirectly and excluding interest expense
and fees 5,6 | 1.39 | % 7 | 1.28 | % | 1.07 | % | 1.11 | % | 1.11 | % | 1.18 | % |
| Total
expenses after waiver and fees paid indirectly 6 | 1.57 | % 7 | 1.32 | % | 1.07 | % | 1.11 | % | 1.11 | % | 1.18 | % |
| Total
expenses after waiver and before fees paid indirectly 6 | 1.57 | % 7 | 1.32 | % | 1.10 | % | 1.17 | % | 1.13 | % | 1.19 | % |
| Total
expenses 6 | 1.93 | % 7 | 1.70 | % | 1.54 | % | 1.64 | % | 1.60 | % | 1.67 | % |
| Net
investment income 6 | 7.82 | % 7 | 7.19 | % | 6.87 | % | 6.76 | % | 6.82 | % | 7.05 | % |
| Dividends
paid to Preferred Shareholders | 1.76 | % 7 | 1.89 | % | 1.94 | % | 1.66 | % | 1.05 | % | 0.54 | % |
| Net
investment income to Common Shareholders | 6.06 | % 7 | 5.30 | % | 4.93 | % | 5.10 | % | 5.77 | % | 6.51 | % |
| Supplemental Data | | | | | | | | | | | | |
| Net assets
applicable to Common Shareholders, end of period (000) | $ 25,338 | $ | 29,488 | $ | 30,302 | $ | 32,354 | $ | 32,492 | $ | 30,715 | |
| Preferred
Shares outstanding at liquidation preference, end of period (000) | $ 16,000 | $ | 16,000 | $ | 18,000 | $ | 18,000 | $ | 18,000 | $ | 18,000 | |
| Portfolio
turnover | 2 | % | 15 | % | 7 | % | — | % | 4 | % | 12 | % |
| Asset
coverage per Preferred Share, end of period | $ 64,593 | $ | 71,083 | $ | 67,089 | $ | 69,950 | $ | 70,138 | $ | 67,662 | |

1	Based on average 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. Total investment returns exclude the effects
of sales charges.
4	Aggregate total investment return.
5	Interest expense and fees relate to tender option bond
trusts. See Note 1 of the Notes to Financial Statements for details of
municipal bonds transferred to tender option bond trusts.
6	Do not reflect the effect of dividends to Preferred
Shareholders.
7	Annualized.

See Notes to Financial Statements. — SEMI-ANNUAL REPORT	FEBRUARY 28, 2009	51

Financial Highlights BlackRock MuniHoldings New York Insured Fund, Inc. (MHN)

		2008		2007			2006		2005		2004
Per Share Operating
Performance
Net asset
value, beginning of period	$ 13.92	$	14.40	$	14.96		$ 15.54		$ 15.41		$ 15.19
Net
investment income 1	0.47		0.98		1.00		1.03		1.04		1.05
Net
realized and unrealized gain (loss)	(1.34	)	(0.48	)	(0.52	)	(0.48	)	0.21		0.18
Dividends
to Preferred Shareholders from net investment income	(0.11	)	(0.32	)	(0.34	)	(0.29	)	(0.17	)	(0.08	)
Net
increase (decrease) from investment operations	(0.98	)	0.18		0.14		0.26		1.08		1.15
Dividends
to Common Shareholders from net investment income	(0.32	)	(0.66	)	(0.70	)	(0.84	)	(0.95	)	(0.93	)
Net asset
value, end of period	$ 12.62	$	13.92	$	14.40		$ 14.96		$ 15.54		$ 15.41
Market
price, end of period	$ 10.42	$	12.12	$	13.53		$ 14.62		$ 15.28		$ 14.10
Total Investment
Return 2
Based on
net asset value	(6.29	)% 3	1.74	%	1.12	%	1.98	%	7.63	%	8.36	%
Based on
market price	(11.14	)% 3	(5.72	)%	(2.78	)%	1.36	%	15.66	%	9.21	%
Ratios to Average Net
Assets Applicable
to Common Shares
Total
expenses after waiver and excluding interest expense and fees 4,5	1.10	% 6	1.15	%	1.15	%	1.15	%	1.14	%	1.14	%
Total
expenses after waiver 4	1.57	% 6	1.52	%	1.71	%	1.65	%	1.52	%	1.43	%
Total
expenses 4	1.81	% 6	1.65	%	1.79	%	1.73	%	1.59	%	1.50	%
Net
investment income 4	7.68	% 6	6.90	%	6.65	%	6.94	%	6.71	%	6.80	%
Dividends
paid to Preferred Shareholders	1.87	% 6	2.24	%	2.29	%	1.93	%	1.09	%	0.55	%
Net
investment income to Common Shareholders	5.81	% 6	4.66	%	4.36	%	5.01	%	5.62	%	6.25	%
Supplemental
Data
Net assets
applicable to Common Shares,end of period (000)	$ 388,527	$	428,547	$	443,296		$ 460,638		$ 478,413		$ 474,357
Preferred
Shares outstanding at liquidation preference,end of period (000)	$ 252,875	$	252,875	$	313,000		$ 313,000		$ 313,000		$ 313,000
Portfolio
turnover	13	%	21	%	24	%	47	%	33	%	31	%
Asset
coverage per Preferred Share, end of period	$ 63,414	$	67,379	$	60,422	7	$ 61,799	7	$ 63,214	7	$ 62,889	7

1	Based on average shares outstanding.
2	Total investment returns based on market value, which can
be significantly greater or lesser than the net asset value, may result in
substantially different returns. Total investment returns exclude the effects
of sales charges.
3	Aggregate total investment return.
4	Do not reflect the effect of dividends to Preferred
Shareholders.
5	Interest expense and fees relate to tender option bond
trusts. See Note 1 of the Notes to Financial Statements for details of
municipal bonds transferred to tender option bond trusts.
6	Annualized.
7	Amounts have been recalculated to conform with current period
presentation.

| See Notes to Financial Statements. — 52 | SEMI-ANNUAL
REPORT | FEBRUARY 28, 2009 |
| --- | --- | --- |

Financial Highlights BlackRock New Jersey Municipal Bond Trust (BLJ)

		2008		2007		2006		2005		2004
Per Share Operating
Performance
Net asset
value, beginning of period	$ 14.16	$	15.38	$	16.33	$	16.26	$	14.71	$	13.77
Net
investment income	0.51	1	1.14	1	1.15		1.16		1.16		1.16
Net
realized and unrealized gain (loss)	(2.19	)	(1.11	)	(0.87	)	0.18		1.48		0.84
Dividends
and distributions to Preferred Shareholders from:
Net
investment income	(0.11	)	(0.29	)	(0.29	)	(0.24	)	(0.15	)	(0.07	)
Net
realized gain	—		(0.00	) 2	—		(0.02	)	—		—
Net
increase (decrease) from investment operations	(1.79	)	(0.26	)	(0.01	)	1.08		2.49		1.93
Dividends
and distributions to Common Shareholders from:
Net
investment income	(0.42	)	(0.95	)	(0.94	)	(0.95	)	(0.94	)	(0.94	)
Net
realized gain	—		(0.01	)	—		(0.06	)	—		(0.05	)
Total
dividends and distributions	(0.42	)	(0.96	)	(0.94	)	(1.01	)	(0.94	)	(0.99	)
Net asset
value, end of period	$ 11.95	$	14.16	$	15.38	$	16.33	$	16.26	$	14.71
Market
price, end of period	$ 12.00	$	14.76	$	16.90	$	18.30	$	15.98	$	13.91
Total Investment
Return 3
Based on
net asset value	(12.46	)% 4	(2.12	)%	(0.61	)%	6.77	%	17.60	%	14.56	%
Based on
market price	(15.67	)% 4	(7.15	)%	(2.54	)%	21.74	%	22.22	%	9.32	%
Ratios to Average Net
Assets Applicable
to Common Shares
Total
expenses after waiver and fees paid indirectly and excluding interest expense
and fees 5,6	1.38	% 7	1.26	%	1.00	%	1.06	%	1.08	%	1.14	%
Total
expenses after waiver and fees paid indirectly 6	1.42	% 7	1.28	%	1.00	%	1.06	%	1.08	%	1.14	%
Total
expenses after waiver and before fees paid indirectly 6	1.42	% 7	1.28	%	1.03	%	1.11	%	1.10	%	1.15	%
Total expenses 6	1.83	% 7	1.67	%	1.47	%	1.59	%	1.57	%	1.63	%
Net
investment income 6	8.67	% 7	7.64	%	7.11	%	7.24	%	7.44	%	7.93	%
Dividends
paid to Preferred Shareholders	1.95	% 7	1.97	%	1.79	%	1.50	%	0.98	%	0.49	%
Net
investment income to Common Shareholders	6.72	% 7	5.67	%	5.32	%	5.74	%	6.46	%	7.44	%
Supplemental
Data
Net assets
applicable to Common Shareholders, end of period (000)	$ 27,535	$	32,584	$	35,246	$	37,263	$	36,928	$	33,384
Preferred
Shares outstanding at liquidation preference, end of period (000)	$ 19,200	$	19,200	$	20,225	$	20,225	$	20,225	$	20,225
Portfolio
turnover	13	%	17	%	35	%	—	%	12	%	20	%
Asset
coverage per Preferred Share, end of period	$ 60,856	$	67,439	$	68,578	$	71,067	$	70,649	$	66,266

1	Based on average 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. Total investment returns exclude the effects
of sales charges.
4	Aggregate total investment return.
5	Interest expense and fees relate to tender option bond
trusts. See Note 1 of the Notes to Financial Statements for details of
municipal bonds transferred to tender option bond trusts.
6	Do not reflect the effect of dividends to Preferred
Shareholders.
7	Annualized.

| See Notes to Financial Statements. — SEMI-ANNUAL
REPORT | FEBRUARY 28, 2009 | 53 |
| --- | --- | --- |

Financial Highlights BlackRock New York Insured Municipal Income Trust (BSE)

		2008		2007		2006		2005		2004
Per Share Operating
Performance
Net asset
value, beginning of period	$ 13.95	$	14.58	$	15.34	$	15.30	$	14.18	$	13.45
Net
investment income	0.43	1	0.96	1	0.99		1.00		1.00		1.01
Net
realized and unrealized gain (loss)	(1.45	)	(0.60	)	(0.72	)	(0.01	)	1.16		0.69
Dividends
and distributions to Preferred Shareholders from:
Net
investment income	(0.09	)	(0.25	)	(0.26	)	(0.24	)	(0.14	)	(0.07	)
Net
realized gain	—		(0.01	)	(0.02	)	—		—		—
Net
increase (decrease) from investment operations	(1.11	)	0.10		(0.01	)	0.75		2.02		1.63
Dividends
and distributions to Common Shareholders from:
Net
investment income	(0.35	)	(0.70	)	(0.70	)	(0.71	)	(0.90	)	(0.90	)
Net
realized gain	—		(0.03	)	(0.05	)	—		—		—
Total
dividends and distributions	(0.35	)	(0.73	)	(0.75	)	(0.71	)	(0.90	)	(0.90	)
Net asset
value, end of period	$ 12.49	$	13.95	$	14.58	$	15.34	$	15.30	$	14.18
Market
price, end of period	$ 11.68	$	13.26	$	14.12	$	14.70	$	15.35	$	14.08
Total Investment
Return 2
Based on
net asset value	(7.40	)% 3	0.80	%	(0.06	)%	5.46	%	14.72	%	12.40	%
Based on
market price	(8.90	)% 3	(1.07	)%	1.01	%	0.73	%	15.92	%	13.04	%
Ratios to Average Net
Assets Applicable
to Common Shares
Total
expenses after waiver and fees paid indirectly and excluding interest expense
and fees 4,5	1.08	% 6	0.99	%	0.89	%	0.90	%	0.92	%	0.93	%
Total
expenses after waiver and fees paid indirectly 5	1.54	% 6	1.09	%	0.89	%	0.90	%	0.92	%	0.93	%
Total
expenses after waiver and before fees paid indirectly 5	1.54	% 6	1.09	%	0.90	%	0.92	%	0.93	%	0.95	%
Total
expenses 5	1.76	% 6	1.34	%	1.21	%	1.25	%	1.25	%	1.27	%
Net
investment income 5	7.31	% 6	6.59	%	6.53	%	6.63	%	6.77	%	7.14	%
Dividends
paid to Preferred Shareholders	1.52	% 6	1.74	%	1.69	%	1.58	%	0.96	%	0.52	%
Net
investment income to Common Shareholders	5.79	% 6	4.85	%	4.84	%	5.05	%	5.81	%	6.62	%
Supplemental
Data
Net assets
applicable to Common Shareholders, end of period (000)	$ 80,890	$	90,331	$	94,314	$	99,255	$	98,853	$	91,260
Preferred
Shares outstanding at liquidation preference, end of period (000)	$ 41,675	$	41,675	$	56,000	$	56,000	$	56,000	$	56,000
Portfolio
turnover	13	%	24	%	30	%	9	%	21	%	11	%
Asset
coverage per Preferred Share, end of period	$ 73,526	$	79,196	$	67,107	$	69,324	$	69,138	$	65,744

1	Based on average shares outstanding.
2	Total investment returns based on market value, which can
be significantly greater or lesser than the net asset value, may result in
substantially different returns. Total investment returns exclude the effects
of sales charges.
3	Aggregate total investment return.
4	Interest expense and fees relate to tender option bond
trusts. See Note 1 of the Notes to Financial Statements for details of
municipal bonds transferred to tender option bond trusts.
5	Do not reflect the effect of dividends to Preferred
Shareholders.
6	Annualized.

| See Notes to Financial Statements. — 54 | SEMI-ANNUAL
REPORT | FEBRUARY 28, 2009 |
| --- | --- | --- |

Financial Highlights BlackRock New York Municipal Bond Trust (BQH)

		Year
Ended August 31,
		2008		2007		2006		2005		2004
Per Share Operating
Performance
Net asset
value, beginning of period	$ 14.71	$	15.39	$	16.02	$	16.09	$	15.09	$	14.15
Net
investment income	0.54 1		1.14	1	1.14		1.13		1.13		1.13
Net
realized and unrealized gain (loss)	(1.32	)	(0.57	)	(0.56	)	(0.02	)	0.95		0.81
Dividends
and distributions to Preferred Shareholders from:
Net
investment income	(0.11	)	(0.29	)	(0.29	)	(0.25	)	(0.15	)	(0.07	)
Net
realized gain	(0.00	) 2	(0.01	)	—		—		—		—
Net
increase (decrease) from investment operations	(0.89	)	0.27		0.29		0.86		1.93		1.87
Dividends
and distributions to Common Shareholders from:
Net
investment income	(0.41	)	(0.93	)	(0.92	)	(0.93	)	(0.93	)	(0.93	)
Net
realized gain	(0.00	) 2	(0.02	)	—		—		—		—
Total
dividends and distributions	(0.41	)	(0.95	)	(0.92	)	(0.93	)	(0.93	)	(0.93	)
Net asset
value, end of period	$ 13.41	$	14.71	$	15.39	$	16.02	$	16.09	$	15.09
Market
price, end of period	$ 12.28	$	14.62	$	16.32	$	16.81	$	15.85	$	13.97
Total Investment
Return 3
Based on
net asset value	(5.54	)% 4	1.62	%	1.52	%	5.51	%	13.56	%	13.97	%
Based on
market price	(12.97	)% 4	(4.76	)%	2.60	%	12.39	%	20.83	%	11.83	%
Ratios to Average Net Assets
Applicable to Common Shares
Total
expenses after waiver and fees paid indirectly and excluding interest expense
and fees 5,6	1.27	% 7	1.23	%	1.00	%	1.06	%	1.06	%	1.11	%
Total
expenses after waiver and fees paid indirectly 6	1.35	% 7	1.25	%	1.00	%	1.06	%	1.06	%	1.11	%
Total
expenses after waiver and before fees paid indirectly 6	1.35	% 7	1.25	%	1.02	%	1.09	%	1.08	%	1.12	%
Total
expenses 6	1.70	% 7	1.63	%	1.47	%	1.56	%	1.56	%	1.60	%
Net
investment income	8.40	% 7	7.45	%	7.16	%	7.16	%	7.20	%	7.57	%
Dividends
paid to Preferred Shareholders	1.70	% 7	1.90	%	1.81	%	1.60	%	0.97	%	0.48	%
Net
investment income to Common Shareholders	6.70	% 7	5.55	%	5.35	%	5.56	%	6.23	%	7.09	%
Supplemental Data
Net assets
applicable to Common Shareholders, end of period (000)	$ 37,016	$	40,603	$	42,160	$	43,541	$	43,460	$	40,757
Preferred
Shares outstanding at liquidation preference, end of period (000)	$ 22,400	$	22,400	$	24,200	$	24,200	$	24,200	$	24,200
Portfolio
turnover	19	%	19	%	23	%	12	%	3	%	16	%
Asset
coverage per Preferred Share, end of period	$ 66,316	$	70,327	$	68,560	$	69,985	$	69,899	$	67,108

1	Based on average 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. Total investment returns exclude the effects
of sales charges.
4	Aggregate total investment return.
5	Interest expense and fees relate to tender option bond
trusts. See Note 1 of the Notes to Financial Statements for details of
municipal bonds transferred to tender option bond trusts.
6	Do not reflect the effect of dividends to Preferred
Shareholders.
7	Annualized.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2009 55

Financial Highlights BlackRock New York Municipal Income Trust II (BFY)

		Year
Ended August 31,
			2008		2007		2006		2005		2004
Per Share Operating
Performance
Net asset
value, beginning of period	$ 14.28	$	14.84	$	15.47	$	15.23	$	14.16	$	13.36
Net
investment income	0.52 1		1.08 1		1.07		1.06		1.04		1.04
Net
realized and unrealized gain (loss)	(1.29	)	(0.55	)	(0.67	)	0.14		1.07		0.79
Dividends
and distributions to Preferred Shareholders from:
Net
investment income	(0.13	)	(0.29	)	(0.30	)	(0.25	)	(0.15	)	(0.08	)
Net
realized gain	—		(0.01	)	—		—		—		—
Net
increase (decrease) from investment operations	(0.90	)	0.23		0.10		0.95		1.96		1.75
Dividends
and distributions to Common Shareholders from:
Net
investment income	(0.38	)	(0.77	)	(0.73	)	(0.71	)	(0.89	)	(0.95	)
Net
realized gain	—		(0.02	)	—		—		—		—
Total
dividends and distributions	(0.38	)	(0.79	)	(0.73	)	(0.71	)	(0.89	)	(0.95	)
Net asset
value, end of period	$ 13.00	$	14.28	$	14.84	$	15.47	$	15.23	$	14.16
Market
price, end of period	$ 10.83	$	13.60	$	14.22	$	14.38	$	14.02	$	13.70
Total Investment
Return 2
Based on
net asset value	(5.66	)% 3	1.70	%	0.69	%	6.93	%	14.46	%	13.50	%
Based on
market price	(17.48	)% 3	1.08	%	3.80	%	7.97	%	8.91	%	11.82	%
Ratios to Average Net Assets
Applicable to Common Shares
Total
expenses after waiver and fees paid indirectly 4	1.19	% 5	1.13	%	1.00	%	1.02	%	1.04	%	1.07	%
Total
expenses after waiver and before fees paid indirectly 4	1.19	% 5	1.13	%	1.01	%	1.05	%	1.05	%	1.08	%
Total
expenses 4	1.38	% 5	1.30	%	1.25	%	1.29	%	1.30	%	1.32	%
Net
investment income 4	8.40	% 5	7.33	%	6.92	%	6.96	%	7.04	%	7.36	%
Dividends
paid to Preferred Shareholders	2.02	% 5	1.94	%	1.94	%	1.66	%	0.99	%	0.59	%
Net
investment income to Common Shareholders	6.38	% 5	5.39	%	4.98	%	5.30	%	6.05	%	6.77	%
Supplemental
Data
Net assets
applicable to Common Shares, end of period (000)	$ 64,244	$	70,544	$	73,302	$	76,393	$	75,193	$	69,903
Preferred
Shares outstanding at liquidation preference, end of period (000)	$ 44,650	$	44,650	$	44,650	$	44,650	$	44,650	$	44,650
Portfolio
turnover	10	%	12	%	27	%	22	%	27	%	14	%
Asset
coverage per Preferred Share, end of period	$ 60,974	$	64,508	$	66,048	$	67,775	$	67,113	$	64,144

1	Based on average shares outstanding.
2	Total investment returns based on market value, which can
be significantly greater or lesser than the net asset value, may result in
substantially different returns. Total investment returns exclude the effects
of sales charges.
3	Aggregate total investment return.
4	Do not reflect the effect of dividends to Preferred
Shareholders.
5	Annualized.

See Notes to Financial Statements. — 56	SEMI-ANNUAL REPORT	FEBRUARY 28, 2009

Financial Highlights BlackRock Virginia Municipal Bond Trust (BHV)

		2008		2007		2006		2005		2004
Per Share Operating
Performance
Net asset
value, beginning of period	$ 15.03	$	15.57	$	16.35	$	16.34	$	15.47	$	14.46
Net
investment income	0.44	1	1.11	1	1.11		1.10		1.10		1.09
Net
realized and unrealized gain (loss)	(1.29	)	(0.45	)	(0.68	)	0.04		0.80		0.86
Dividends
and distributions to Preferred Shareholders from:
Net
investment income	(0.09	)	(0.30	)	(0.27	)	(0.26	)	(0.16	)	(0.07	)
Net
realized gain	(0.03	)	—		(0.02	)	—		—		—
Net
increase (decrease) from investment operations	(0.97	)	0.36		0.14		0.88		1.74		1.88
Dividends
and distributions to Common Shareholders from:
Net
investment income	(0.47	)	(0.90	)	(0.87	)	(0.87	)	(0.87	)	(0.87	)
Net
realized gain	(0.12	)	—		(0.05	)	—		—		—
Total
dividends and distributions	(0.59	)	(0.90	)	(0.92	)	(0.87	)	(0.87	)	(0.87	)
Net asset
value, end of period	$ 13.47	$	15.03	$	15.57	$	16.35	$	16.34	$	15.47
Market
price, end of period	$ 16.70	$	19.50	$	17.85	$	18.45	$	17.30	$	15.34
Total Investment
Return 2
Based on
net asset value	(6.95	)% 3	1.59	%	0.21	%	5.30	%	11.52	%	13.28	%
Based on
market price	(11.08	)% 3	14.97	%	1.80	%	12.23	%	19.07	%	12.79	%
Ratios to Average Net Assets
Applicable to Common Shares
Total
expenses after waiver and fees paid indirectly and excluding interest expense
and fees 4,5	1.42	% 6	1.31	%	1.09	%	1.15	%	1.18	%	1.25	%
Total
expenses after waiver and fees paid indirectly	1.53	% 6	1.34	%	1.09	%	1.15	%	1.18	%	1.25	%
Total
expenses after waiver and before fees paid indirectly 5	1.53	% 6	1.34	%	1.14	%	1.22	%	1.20	%	1.26	%
Total
expenses 5	1.86	% 6	1.70	%	1.58	%	1.68	%	1.67	%	1.73	%
Net
investment income 5	6.67	% 6	7.14	%	6.85	%	6.83	%	6.90	%	7.15	%
Dividends
paid to Preferred Shareholders	1.37	% 6	1.90	%	1.69	%	1.60	%	1.00	%	0.47	%
Net
investment income to Common Shareholders	5.30	% 6	5.24	%	5.16	%	5.23	%	5.90	%	6.68	%
Supplemental Data
Net assets
applicable to Common Shareholders, end of period (000)	$ 20,978	$	23,347	$	24,053	$	25,097	$	24,966	$	23,527
Preferred
Shares outstanding at liquidation preference, end of period (000)	$ 12,175	$	12,175	$	13,525	$	13,525	$	13,525	$	13,525
Portfolio
turnover	18	%	11	%	12	%	5	%	5	%	14	%
Asset
coverage per Preferred Share, end of period	$ 68,078	$	72,948	$	69,463	$	71,404	$	71,158	$	68,490

1	Based on average shares outstanding.
2	Total investment returns based on market value, which can
be significantly greater or lesser than the net asset value, may result in
substantially different returns. Total investment returns exclude the effects
of sales charges.
3	Aggregate total investment return.
4	Interest expense and fees relate to tender option bond
trusts. See Note 1 of the Notes to Financial Statements for details of
municipal bonds transferred to tender option bond trusts.
5	Do not reflect the effect of dividends to Preferred Shareholders.
6	Annualized.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT FEBRUARY 28, 2009 57

Financial Highlights The Massachusetts Health & Tax-Exempt Trust (MHE)

				2007			2006		2005		2004 1		2003
Per Share Operating
Performance
Net asset value, beginning of
period	$ 12.55	$	13.10	$	13.90		$ 13.59		$ 13.74		$ 13.91		$ 13.76
Net investment
income 2	0.41		0.59		0.92		0.90		0.83		0.82		0.93
Net realized and unrealized gain
(loss)	(1.73	)	(0.58	)	(0.82	)	0.47		0.15		0.08		0.07
Dividends and distributions to
Preferred Shareholders
from:
Net investment income	(0.11	)	(0.17	)	(0.31	)	(0.25	)	(0.11	)	(0.03	)	(0.03	)
Net realized gain	—		—		—		(0.03	)	(0.01	)	(0.01	)	—
Net increase (decrease) from
investment operations	(1.43	)	(0.16	)	(0.21	)	1.09		0.86		0.86		0.97
Dividends and distributions to Common
Shareholders from:
Net investment income	(0.30	)	(0.39	)	(0.59	)	(0.68	)	(0.78	)	(0.87	)	(0.82	)
Net realized gain	—		—		(0.00	) 3	(0.10	)	(0.13	)	(0.16	)	—
Total dividends and
distributions	(0.30	)	(0.39	)	(0.59	)	(0.78	)	(0.91	)	(1.03	)	(0.82	)
Capital charges with respect to
issuance of preferred
shares	—		—		—		—		(0.10	)	—		—
Net asset value, end of
period	$ 10.82	$	12.55	$	13.10		$ 13.90		$ 13.59		$ 13.74		$ 13.91
Market price, end of period	$ 10.30	$	11.22	$	11.95		$ 13.10		$ 13.60		$ 16.24		$ 15.26
Total Investment
Return 4
Based on net asset value	(10.94	)% 5	(1.01	)% 5	(1.23	)%	8.30	%	5.46	%	6.08	%	7.26	%
Based on market price	(5.17	)% 5	(2.99	)% 5	(4.40	)%	1.99	%	(10.71	)%	14.29	%	20.11	%
Ratios to Average Net Assets
Applicable
to Common Shares
Total expenses after waiver and fees
paid indirectly and
excluding interest expense and fees 6,7	1.61	% 8	1.73	% 8	1.47	%	1.64	%	1.30	%	1.45	%	1.16	%
Total expenses after waiver and fees
paid indirectly 7	1.74	% 8	1.77	% 8	1.47	%	1.64	%	1.30	%	1.45	%	1.16	%
Total expenses 7	1.74	% 8	1.77	% 8	1.47	%	1.64	%	1.30	%	1.45	%	1.16	%
Net investment
income 7	7.80	% 8	6.82	% 8	6.78	%	6.61	%	6.00	%	5.97	%	6.74	%
Dividends paid to Preferred
Shareholders	2.00	% 8	2.03	% 8	2.27	%	2.07	%	0.76	%	0.24	%	0.25	%
Net investment income Common
Shareholders	5.80	% 8	4.79	% 8	4.51	%	4.54	%	5.24	%	5.73	%	6.49	%
Supplemental Data
Net assets applicable to Common
Shareholders, end of
period (000)	$ 25,362	$	29,416	$	30,717		$ 32,581		$ 31,792		$ 32,076		$ 32,390
Preferred Shares outstanding at
liquidation preference,
end of period (000)	$ 18,500	$	129,523	$	20,000		$ 20,000		$ 20,000		$ 10,000		$ 10,000
Portfolio turnover	6	%	5	%	18	%	9	%	16	%	21	%	26	%
Asset coverage per Preferred Share,
end of period	$ 118,551	$	129,523	$	126,835	9	$ 131,484	9	$ 129,506	9	$ 210,378	9	$ 211,950	9

| 1 | On September 1, 2004, Fund Asset Management, L.P. became
the investment adviser, which combined with BlackRock, Inc. on September 26, 2006. |
| --- | --- |
| 2 | Based on average shares outstanding. |
| 3 | Amount is less than $(0.01) per share. |
| 4 | Total investment returns based on market value, which can
be significantly greater or lesser than the net asset value, may result in
substantially different returns. Total investment returns exclude the effects
of sales charges. |
| 5 | Aggregate total investment return. |
| 6 | Interest expense and fees relate to tender option bond
trusts. See Note 1 of the Notes to Financial Statements for details of
municipal bonds transferred to tender option bond trusts. |
| 7 | Do not reflect the effect of dividends to Preferred
Shareholders. |
| 8 | Annualized. |
| 9 | Amounts have been recalculated to conform with current
period presentation. |

See Notes to Financial Statements.

58 SEMI-ANNUAL REPORT FEBRUARY 28, 2009

N otes to Financial Statements

1. Organization and Significant Accounting Policies:

BlackRock California Insured Municipal Income Trust (“California Insured”), BlackRock MuniHoldings New York Insured Fund, Inc. (“MuniHoldings New York”), BlackRock New York Insured Municipal Income Trust (“New York Insured”) (collectively the “Insured Trusts”), BlackRock California Municipal Bond Trust (“California Bond”), BlackRock Maryland Municipal Bond Trust (“Maryland Bond”), BlackRock New Jersey Municipal Bond Trust (“New Jersey Bond”), BlackRock New York Municipal Bond Trust (“New York Bond”), BlackRock Virginia Municipal Bond Trust (“Virginia Bond”) (collectively the “Bond Trusts”), BlackRock California Municipal Income Trust II (“California Income II”) and BlackRock New York Municipal Income Trust II (“New York Income II”) (collectively the “Income II Trusts”), and The Massachusetts Health & Education Tax-Exempt Trust (“MA HEFA”) (all, collectively the “Trusts” or individually as the “Trust”) are registered under the Investment Company Act of 1940, as amended (the “1940 Act”) as non-diversified, closed-end management investment companies. All Trusts are organized as Delaware statutory trusts except MuniHoldings New York and MA HEFA, which are organized as a Maryland corporation and a Massachusetts business trust, respectively. The Trusts’ financial statements are prepared in conformity with accounting principles generally accepted in the United States of America, which may require the use of management accruals and estimates. Actual results may differ from these estimates. Each Trust determines, and makes available for publication the net asset value of its Common Shares on a daily basis.

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

Valuation of Investments: Municipal investments (including commitments to purchase such investments on a “when-issued” basis) are valued on the basis of prices provided by dealers or pricing services selected under the supervision of each Trust’s Board of Trustees/Directors (the “Board”). In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from bond 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. Swap agreements are valued by utilizing quotes received daily by the Trusts’ pricing service or through brokers, which are derived using daily swap curves and trades of underlying securities. Short-term securities with maturities less than 60 days are valued at amortized cost, which approximates fair value. Investments in open-end investment companies are valued at net asset value each business day.

In the event that application of these methods of valuation results in a price for an investment which is deemed not to be representative of the market value of such investment, the investment will be valued by a method approved by each Trust’s Board as reflecting fair value (“Fair Value Assets”). When determining the price for Fair Value Assets, the investment advisor and/or sub-advisor seeks to determine the price that each Trust might reasonably expect to receive from the current sale of that asset in an arm’slength 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.

Derivative Financial Instruments: Each Trust may engage in various portfolio investment strategies both to increase the return of the Trust and to hedge, or protect, its exposure to interest rate movements and movements in the securities markets. Losses may arise if the value of the contract decreases due to an unfavorable change in the price of the underlying security or if the counterparty does not perform under the contract.

| • | Financial futures contracts: Each
Trust may purchase or sell financial futures contracts and options on such
futures contracts for investment purposes or to manage its interest rate
risk. Futures are contracts for delayed delivery of securities at a specific
future date and at a specific price or yield. Pursuant to the contract, the
Trust agrees to receive from, or pay to, the broker an amount of cash equal
to the daily fluctuation in value of the contract. Such receipts or payments
are known as margin variation and are recognized by the Trust as unrealized
gains or losses. When the contract is closed, the Trust records 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
futures transactions involves the risk of an imperfect correlation in the
movements in the price of futures contracts, interest rates and the
underlying assets, and the possible inability of counterparties to meet the
terms of their contracts. |
| --- | --- |
| • | Forward interest rate swaps - The
Trusts may enter into forward interest rate swaps for investment purposes.
The Trusts may enter into swap agreements, in which the Trust and a
counterparty agree to make periodic net payments on a specified notional
amount. In a forward interest rate swap, a Trust and the counterparty agreed
to make periodic net payments on a specified notional contract amount,
commencing on a specified future effective date, unless terminated earlier.
These periodic payments received or made by the Trusts are recorded in the
accompanying Statements of Operations as realized gains or losses,
respectively. Swaps are marked-to-market daily and changes in value are
recorded as unrealized appreciation (depreciation). When the swap is
terminated, the Trusts will record a realized gain or loss equal to the
difference between the proceeds from (or cost of) the closing transaction and
the Trusts’ basis in the contract, if any. The Trusts generally intend to
close each forward interest rate swap before the effective date specified in
the agreement and therefore avoid entering into the interest rate swap
underlying each forward interest rate swap. Swap transactions involve, to
varying degrees, elements of credit and market risk in excess of the amounts
recognized on the Statements of Assets and Liabilities. Such risks involve
the possibility that there will be no liquid market for these agreements,
that the counterparty to the agreements may default on its obligation to
perform or disagree as to the meaning of the contractual terms in the
agreements, and that there may be unfavorable changes in interest rates
and/or market values associated with these transactions. |

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

SEMI-ANNUAL REPORT FEBRUARY 28, 2009 59

Notes to Financial Statements (continued)

Since the value of securities purchased may fluctuate prior to settlement, the Trusts may be required to pay more at settlement than the security is worth. In addition, the purchaser is not entitled to any of the interest earned prior to settlement. When purchasing a security on a delayed-delivery basis, the Trusts assume the rights and risks of ownership of the security, including the risk of price and yield fluctuations.

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

The cash received by the TOB from the sale of the short-term floating rate certificates, less transaction expenses, is paid to the Trust, which typically invests the cash in additional municipal bonds. Each Trust’s 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’ Schedule of Investments and the proceeds from the issuance of the short-term floating rate certificates are shown on the Statements of Assets and Liabilities as trust certificates.

Interest income from the underlying security is recorded by the Trusts on an accrual basis. Interest expense incurred on the secured borrowing and other expenses related to remarketing, administration and trustee services to a TOB are reported as expenses of the Trusts. The floating rate certificates have interest rates that generally reset weekly and their holders have the option to tender certificates to the TOB for redemption at par at each reset date. At February 28, 2009, the aggregate value of the underlying municipal bonds transferred to TOBs, the related liability for trust certificates and the range of interest rates on the liability for the trust certificates were as follows:

California Insured	Underlying Municipal Bonds Transferred to TOBs — $ 9,399,053	Liability for Trust Certificates — $ 4,771,849	1.559% - 4.464%
California Bond	$ 2,930,627	$ 1,998,847	1.666%
California Income II	$ 17,182,868	$ 10,035,291	1.496% - 2.353%
Maryland Bond	$ 3,008,700	$ 1,500,000	1.517% - 4.383%
MuniHoldings New York	$ 87,334,246	$ 56,312,240	1.198% - 3.226%
New York Insured	$ 15,166,398	$ 9,308,740	2.497% - 3.727%
New York Bond	$ 2,435,231	$ 1,321,257	1.169% - 3.821%
Virginia Bond	$ 2,025,000	$ 1,000,000	1.002% - 5.283%
MA HEFA	$ 2,030,559	$ 1,339,595	2.227%

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

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

Segregation and Collateralization: In cases in which the 1940 Act and the interpretive positions of the Securities and Exchange Commission (“SEC”) require that each Trust segregates assets in connection with certain investments (e.g., financial futures contracts and swaps), each Trust will, consistent with certain interpretive letters issued by the SEC, designate on their books and records cash or other liquid securities having a market value at least equal to the amount that would otherwise be required to be physically segregated. Furthermore, based on requirements and agreements with certain exchanges and third party broker-dealers, the Trusts may also be required to deliver or deposit securities as collateral for certain investments (e.g., financial futures contracts and swaps).

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

Dividends and Distributions: Dividends from net investment income are declared and paid monthly. Distributions of capital gains are recorded on the ex-dividend dates. Dividends and distributions to Preferred Shareholders are accrued and determined as described in Note 5.

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

60 SEMI-ANNUAL REPORT FEBRUARY 28, 2009

Notes to Financial Statements (continued)

Each Trust files US federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the Trusts’ US federal tax returns remains open for each of the four years ended August 31, 2008 (three years ended December 31, 2007 and the period ended August 31, 2008 for MA HEFA). The statutes of limitations on the Trusts’ state and local tax returns may remain open for an additional year depending upon the jurisdiction.

Recent Accounting Pronouncement: In March 2008, Statement of Financial Accounting Standards No. 161, “Disclosures about Derivative Instruments and Hedging Activities — an amendment of FASB Statement No. 133” (“FAS 161”), was issued. FAS 161 is intended to improve financial reporting for derivative instruments by requiring enhanced disclosure that enables investors to understand how and why an entity uses derivatives, how derivatives are accounted for and how derivative instruments affect an entity’s results of operations and financial position. FAS 161 is effective for financial statements issued for fiscal years and interim periods beginning after November 15, 2008. The impact on the Trusts’ financial statement disclosures, if any, is currently being assessed.

Deferred Compensation and BlackRock Closed-End Share Equivalent Investment Plan: Under the deferred compensation plan approved by each Trust’s Board, non-interested Trustees or Directors (“Independent Trustees”) may defer a portion of their annual complex-wide compensation. Deferred amounts earn an approximate return as though equivalent dollar amounts had been invested in common shares of other certain BlackRock Closed-End Funds selected by the Independent Trustees. This has approximately the same economic effect for the Independent Trustees as if the Independent Trustees had invested the deferred amounts directly in other certain BlackRock Closed-End Funds.

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

Other: Expenses directly related to each 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.

2. Investment Advisory Agreement and Other Transactions with Affiliates:

Each Trust entered into an Investment Advisory Agreement with BlackRock Advisors, LLC (the “Advisor”), an indirect, wholly owned subsidiary of BlackRock, Inc., to provide investment advisory and administration services. The PNC Financial Services Group, Inc. (“PNC”) and Bank of America Corporation (“BAC”) are the largest stockholders of BlackRock, Inc. (“BlackRock”). BAC became a stockholder of BlackRock following its acquisition of Merrill Lynch & Co., Inc. (“Merrill Lynch”) on January 1, 2009. Prior to that date, both PNC and Merrill Lynch were considered affiliates of the Trusts under the 1940 Act. Subsequent to the acquisition, PNC remains an affiliate, but due to the restructuring of Merrill Lynch’s ownership interest of BlackRock, BAC is not deemed to be an affiliate under the 1940 Act.

The Advisor is responsible for the management of each Trust’s 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 Advisor a monthly fee at an annual rate of 0.50% for MA HEFA, 0.55% for the Insured Trusts and Income II Trusts and 0.65% for the Bond Trusts of each Trust’s average daily net assets. Average daily net assets is the average daily value of the respective Trust’s total assets minus the sum of its accrued liabilities.

The Advisor has voluntarily agreed to waive its advisory fee on the proceeds of Preferred Shares and TOBs that exceed 35% of the average daily net assets of MuniHoldings New York. For the six months ended February 28, 2009, the Advisor waived $408,418, which is included in fees waived by advisor on the Statements of Operations.

The Advisor has voluntarily agreed to waive a portion of the investment advisory fee. With respect to California Insured and New York Insured, the waiver, as a percentage of average daily net assets is as follows: 0.15% through October 2008, 0.10% through October 2009, and 0.05% through October 2010. With respect to the Bond Trusts, the waiver, as a percentage of average daily net assets, is as follows: 0.20% through April 2009, 0.15% through April 2010, 0.10% through April 2011 and 0.05% through April 2012. With respect to the Income II Trusts, the waiver, as a percentage of average daily net assets, is 0.10% through July 2009, and 0.05% through July 2012. For the six months ended February 28, 2009, the Advisor waived the following amounts, which are included in fees waived by advisor on the Statements of Operations:

California Insured	$
California Bond	$ 65,580
California Income II	$ 83,815
Maryland Bond	$ 37,693
New Jersey Bond	$ 46,560
New York Insured	$ 75,392
New York Bond	$ 59,281
New York Income II	$ 52,915
Virginia Bond	$ 28,265

The Advisor has agreed to waive its advisory fees by the amount of investment advisory fees each Trust pays to the Advisor indirectly through its investment in affiliated money market funds. This amount is shown on the Statements of Operations as fees waived by advisor. For the six months ended February 28, 2009, the amounts were as follows:

| | Fees
Waived by Advisor |
| --- | --- |
| California Insured | $ 11,350 |
| California Bond | $ 13,381 |
| California Income II | $ 17,875 |
| Maryland Bond | $ 7,792 |
| MuniHoldings New York | $ 35,291 |
| New Jersey Bond | $ 8,436 |
| New York Insured | $ 8,154 |
| New York Bond | $ 3,487 |
| New York Income II | $ 4,651 |
| Virginia Bond | $ 5,435 |

SEMI-ANNUAL REPORT FEBRUARY 28, 2009 61

Notes to Financial Statements (continued)

The Advisor has entered into a separate sub-advisory agreements with BlackRock Investment Management, LLC (“BIM”) for MuniHoldings New York and MA HEFA and BlackRock Financial Management, Inc. (“BFM”) for all other Trusts. BIM and BFM are affiliates of the Advisor. The Advisor pays BIM and BFM for services they provide, a monthly fee that is a percentage of the investment advisory fee paid by the Trusts to the Advisor.

For the six months ended February 28, 2009, each Trust reimbursed the Advisor for certain accounting services in the following amounts, which are included in accounting services on the Statements of Operations:

	Amount
California Insured	$ 994
California Bond	$ 733
California Income II	$ 1,521
Maryland Bond	$ 382
MuniHoldings New York	$ 6,528
New Jersey Bond	$ 477
New York Insured	$ 1,172
New York Bond	$ 463
New York Income II	$ 984
Virginia Bond	$ 331
MA HEFA	$ 452

Pursuant to the terms of the custody agreement, custodian fees may be reduced by amounts calculated on uninvested cash balances, which are shown on the Statements of Operations as fees paid indirectly.

Certain officers and/or trustees/directors of each Trust are officers and/or directors of BlackRock, Inc. or its affiliates. The Trusts reimburse the Advisor for compensation paid to the Trusts’ Chief Compliance Officer.

3. Investments:

Purchases and sales of investments, excluding short-term securities, for the six months ended February 28, 2009 were as follows:

	Purchases	Sales
California Insured	$ 30,872,926	$ 29,932,931
California Bond	$ 14,914,607	$ 18,624,708
California Income II	$ 47,732,609	$ 50,794,748
Maryland Bond	$ 739,868	$ 3,576,301
MuniHoldings New York	$ 65,370,129	$ 106,769,089
New Jersey Bond	$ 5,454,228	$ 8,842,662
New York Insured	$ 16,409,344	$ 23,885,808
New York Bond	$ 10,817,462	$ 12,792,153
New York Income II	$ 11,189,618	$ 10,703,596
Virginia Bond	$ 8,864,677	$ 8,084,759
MA HEFA	$ 2,335,315	$ 5,753,209

4. Concentration, Market and Credit Risk:

The Trusts invest a substantial amount of its assets in issuers located in a single state or limited number of states. Please see the Schedule of Investments for concentrations in specific states.

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

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

5. Capital Share Transactions:

The Trusts, except MuniHoldings New York, are authorized to issue an unlimited number of shares (200 million shares for MuniHoldings New York), all of which were initially classified as Common Shares. The par value for the Trusts, except MuniHoldings New York and MA HEFA, is $0.001 per share ($0.10 for MuniHoldings New York and $0.01 for MA HEFA). Each Trust’s Board is authorized, however, to reclassify any unissued shares without approval of Common Shareholders.

Common Shares

Shares issued and outstanding during the six months ended February 28, 2009 and during the year ended August 31, 2008 increased by the following amounts as a result of dividend reinvestment:

California Insured	—	1,344
California Bond	—	22,468
California Income II	—	5,688
Maryland Bond	4,276	8,599
New Jersey Bond	3,171	10,138
New York Insured	—	5,180
New York Bond	—	20,407
New York Income II	—	1,272
Virginia Bond	3,974	8,252

Shares issued and outstanding remained constant for MuniHoldings New York and MA HEFA for the periods ended February 28, 2009, August 31, 2008 and the year ended December 31, 2007 for the MA HEFA.

Preferred Shares

The Preferred Shares of each of California Insured, California Bond, California Income II, Maryland Bond, MuniHoldings New York, New York Insured, New York Bond, Virginia Bond and MA HEFA (each, a “Preferred Trust”) are redeemable at the option of the Preferred Trust, in whole or in part, on any dividend payment date at their liquidation preference plus any accumulated and unpaid dividends whether or not declared. The Preferred Shares 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 each Trust, as set forth in each Trust’s Statements of

62 SEMI-ANNUAL REPORT FEBRUARY 28, 2009

Notes to Financial Statements (continued)

Preferences/Articles Supplementary/Certificates of Designation, as applicable, (“Governing Instrument”) are not satisfied.

From time to time in the future, a Preferred Trust may effect repurchases of its Preferred Shares at prices below its liquidation preference as agreed upon by the Preferred Trust and seller. The Preferred Trust also may redeem its Preferred Shares from time to time as provided in the applicable Governing Instrument. The Preferred 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 holders of Preferred Shares have voting rights equal to the holders of Common Shares (one vote per share) and will vote together with holders of Common Shares (one vote per share) as a single class. However, the holders of Preferred Shares, voting as a separate class, are also entitled to elect two Directors/Trustees for each Trust. In addition, the 1940 Act requires that along with approval by shareholders that might otherwise be required, the approval of the holders of a majority of any outstanding Preferred Shares, voting separately as a class would be required to (a) adopt any plan of reorganization that would adversely affect the Preferred Shares, (b) change a Trust’s sub-classification as a closed-end investment company or change its fundamental investment restrictions or (c) change its business so as to cease to be an investment company.

The Trusts had the following series of Preferred Shares outstanding and effective yields as of February 28, 2009:

California Insured	F-7	1,502	0.899 %	7
California Bond	F-7	1,119	0.899 %	7
California Income II	T-7	1,195	0.959 %	7
	R-7	1,195	0.899 %	7
Maryland Bond	R-7	640	0.899 %	7
MuniHoldings New York	A	1,535	0.944 %	7
	B	1,535	0.899 %	7
	C	2,456	0.914 %	7
	D	2,973	0.899 %	7
	E	1,616	0.960 %	7
New Jersey Bond	M-7	768	0.914 %	7
New York Insured	R-7	1,667	0.899 %	7
New York Bond	T-7	896	0.959 %	7
New York Income II	W-7	1,786	0.944 %	7
Virginia Bond	R-7	487	0.899 %	7
MA HEFA	A	185	0.944 %	7
	B	185	0.959 %	7

Dividends on seven-day Preferred Shares are cumulative at a rate, which is reset every seven days based on the results of an auction. Dividends on 28 day Preferred Shares are cumulative at a rate which is reset every 28 days based on the results of an auction. If the Preferred Shares fail to clear the auction on an auction date, the Trust is required to pay the maximum applicable rate on the Preferred Shares to holders of such shares for successive dividend periods until such time as the shares are successfully auctioned. The maximum applicable rate on the Preferred Shares is the higher of 110% of the AA commercial paper rate or 110% of 90% of the Kenny S&P 30-day High Grade Index rate divided by 1.00 minus the marginal tax rate. The low, high and average dividend rates on the Preferred Shares for each Trust for the six months ended February 28, 2009 were as follows:

California Insured	F-7	0.594 %	11.728 %	2.775 %
California Bond	F-7	0.594 %	11.728 %	2.773 %
California Income II	T-7	0.594 %	11.347 %	2.729 %
	R-7	0.594 %	12.261 %	2.737 %
Maryland Bond	R-7	0.594 %	12.261 %	2.789 %
MuniHoldings New York	A	0.640 %	12.565 %	2.859 %
	B	0.594 %	12.261 %	2.747 %
	C	0.594 %	10.205 %	2.800 %
	D	0.594 %	11.728 %	2.820 %
	E	0.594 %	11.347 %	2.738 %
New Jersey Bond	M-7	0.594 %	10.205 %	2.759 %
New York Insured	R-7	0.594 %	12.261 %	2.747 %
New York Bond	T-7	0.594 %	11.347 %	2.774 %
New York Income II	W-7	0.640 %	12.565 %	2.845 %
Virginia Bond	R-7	0.594 %	12.261 %	2.835 %
MA HEFA	A	0.640 %	12.565 %	2.739 %
	B	0.594 %	11.347 %	2.77 %

For the six months ended February 28, 2009, the Preferred Shares of each Trust failed to clear any of their auctions. As a result, the Preferred Shares dividend rates were reset to the maximum applicable rate, which ranged from 0.594% to 12.565%. A failed auction is not an event of default for the Trusts but it has a negative impact on the liquidity of Preferred Shares. A failed auction occurs when there are more sellers of a Trust’s auction rate preferred shares than buyers. It is impossible to predict how long this imbalance will last. A successful auction for each Trust’s Preferred Shares may not occur for some time, if ever, and even if liquidity does resume, Preferred Shareholders may not have the ability to sell the Preferred Shares at their liquidation preference.

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 Preferred Shares is less than 200%.

SEMI-ANNUAL REPORT FEBRUARY 28, 2009 63

Notes to Financial Statements (concluded)

Prior to December 22, 2008, the Trusts paid commissions to certain broker-dealers at the end of each auction at an annual rate of 0.25%, calculated on the aggregate principal amount. In December 22, 2008, commissions paid to broker-dealers on preferred shares that experienced a failed auction were reduced to 0.15% on the aggregate principal amount. The Trusts will continue to pay commissions of 0.25% on the aggregate principal amount of all shares that successfully clear their auctions. Merrill Lynch, Pierce, Fenner & Smith Incorporated (“MLPF&S”), a wholly owned subsidiary of Merrill Lynch, earned commissions for the period September 1, 2008 through December 31, 2008, as follows:

Commissions
California
Insured	$ 739
California Bond	$ 1,811
California Income II	$ 10,139
Maryland Bond	$ 1,116
MuniHoldings New York	$ 101,126
New Jersey Bond	$ 3,984
New York Insured	$ 1,653
New York Bond	$ 2,602
New York Income II	$ 12,083
Virginia Bond	$ 434
MA HEFA	$ 10,877

During the year ended August 31, 2008, the Trusts announced the following redemptions of Preferred Shares at a price of $25,000 ($50,000 for MA HEFA) per share plus any accrued and unpaid dividends through the redemption date:

| California
Insured | F-7 | 6/30/08 | 358 | Aggregate Principal — $ 8,950,000 |
| --- | --- | --- | --- | --- |
| California Bond | F-7 | 6/30/08 | 80 | $ 2,000,000 |
| California Income II | T-7 | 6/25/08 | 244 | $ 6,100,000 |
| | R-7 | 6/27/08 | 244 | $ 6,100,000 |
| Maryland Bond | R-7 | 6/27/08 | 80 | $ 2,000,000 |
| MuniHoldings New York | A | 6/26/08 | 365 | $ 9,125,000 |
| | B | 6/27/08 | 365 | $ 9,125,000 |
| | C | 6/24/08 | 584 | $ 14,600,000 |
| | D | 6/23/08 | 707 | $ 17,675,000 |
| | E | 6/25/08 | 384 | $ 9,600,000 |
| New Jersey Bond | M-7 | 6/24/08 | 41 | $ 1,025,000 |
| New York Insured | R-7 | 6/27/08 | 573 | $ 14,325,000 |
| New York Bond | T-7 | 6/25/08 | 72 | $ 1,800,000 |
| Virginia Bond | R-7 | 6/27/08 | 54 | $ 1,350,000 |
| MA HEFA | A | 6/12/08 | 15 | $ 750,000 |
| | B | 6/11/08 | 15 | $ 750,000 |

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

Shares issued and outstanding remained constant during the six months ended February 28, 2009 for all the Trusts and during the year ended August 31, 2008 for New York Income II.

6. Capital Loss Carryforward:

As of August 31, 2008, the following Trusts had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates:

Expires August 31,	California Insured	California Bond	California Income II	MuniHoldings New York
2009	—	—	—	$ 17,055,889
2012	—	$ 477,260	$ 3,224,992	—
2013	$ 717,737	—	—	15,054,033
2014	—	—	—	1,097,743
2015	—	—	360,789	2,782,666
2016	351,912	—	113,830	710,089
Total	$ 1,069,649	$ 477,260	$ 3,699,611	$ 36,700,420

| Expires August 31, | New
Jersey Bond | New
York Income II | MA HEFA |
| --- | --- | --- | --- |
| 2015 | — | $ 70,160 | $ 35,869 |
| 2016 | $ 25,168 | 383,137 | 285,683 |
| Total | $ 25,168 | $ 453,297 | $ 321,552 |

7. Subsequent Events:

The Trusts paid a net investment income dividend in the following amounts per share on April 1, 2009 to shareholders of record on March 16, 2009:

Common Dividend Per Share
California
Insured	$ 0.056000
California Bond	$ 0.062000
California Income II	$ 0.057000
Maryland Bond	$ 0.065400
MuniHoldings New York	$ 0.053000
New Jersey Bond	$ 0.070500
New York Insured	$ 0.058000
New York Bond	$ 0.068000
New York Income II	$ 0.062500
Virginia Bond	$ 0.072428
MA HEFA	$ 0.049000

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

| California
Insured | F-7 | Dividends Declared — $ 24,347 |
| --- | --- | --- |
| California Bond | F-7 | $ 18,139 |
| California Income II | T-7 | $ 19,473 |
| | R-7 | $ 19,006 |
| Maryland Bond | R-7 | $ 10,173 |
| MuniHoldings New York | A | $ 24,851 |
| | B | $ 24,399 |
| | C | $ 40,102 |
| | D | $ 48,192 |
| | E | $ 26,320 |
| New Jersey Bond | M-7 | $ 12,540 |
| New York Insured | R-7 | $ 26,498 |
| New York Bond | T-7 | $ 14,593 |
| New York Income II | W-7 | $ 28,914 |
| Virginia Bond | R-7 | $ 12,451 |
| MA HEFA | A | $ 40,094 |
| | B | $ 37,614 |

64 SEMI-ANNUAL REPORT FEBRUARY 28, 2009

Officers and Directors/Trustees

Richard E. Cavanagh, Chairman of the Board and Director/Trustee

Karen P. Robards, Vice Chair of the Board, Chair of the Audit Committee and Director/Trustee

G. Nicholas Beckwith, III, Director/Trustee Richard S. Davis, Director/Trustee Kent Dixon, Director/Trustee Frank J. Fabozzi, Director/Trustee Kathleen F. Feldstein, Director/Trustee James T. Flynn, Director/Trustee Henry Gabbay, Director/Trustee Jerrold B. Harris, Director/Trustee R. Glenn Hubbard, Director/Trustee W. Carl Kester, Director/Trustee Donald C. Burke, Trust President and Chief Executive Officer Anne F. Ackerley, Vice President Neal J. Andrews, Chief Financial Officer Jay M. Fife, Treasurer Brian P. Kindelan, Chief Compliance Officer of the Trusts Howard B. Surloff, Secretary

Effective January 1, 2009, Robert S. Salomon, Jr. retired as Director/Trustee of the Trusts. The Board wishes Mr. Salomon well in his retirement.

Accounting Agent State Street Bank and Trust Company Princeton, NJ 08540

Legal Counsel Skadden, Arps, Slate, Meagher & Flom LLP New York, NY 10036

Independent Registered Public Accounting Firm Deloitte & Touche LLP Princeton, NJ 08540

Trust Address BlackRock Closed-End Funds c/o BlackRock Advisors, LLC 100 Bellevue Parkway Wilmington, DE 19809

Custodians For all Trusts except BlackRock MuniHoldings New York Insured Fund, Inc.:

State Street Bank and Trust Company Boston, MA 02101

For BlackRock MuniHoldings New York Insured Fund, Inc.:

The Bank of New York Mellon New York, NY 10286

Transfer Agents Common Stock: For all Trusts except BlackRock MuniHoldings New York Insured Fund, Inc. and The Massachusetts Health & Education Tax-Exempt Trust:

Computershare Trust Companies, N.A. Canton, MA 02021

For BlackRock MuniHoldings New York Insured Fund, Inc. and The Massachusetts Health & Education Tax-Exempt Trust:

BNY Mellon Shareowner Services Jersey City, NJ 07310

Preferred Stock: For the Insured Trusts, Bond Trusts and BlackRock MuniHoldings New York Insured Fund, Inc.:

BNY Mellon Shareowner Services Jersey City, NJ 07310

For the Income II Trusts and The Massachusetts Health & Education Tax-Exempt Trust:

Deutsche Bank Trust Company Americas New York, NY 10005

Additional Information
Availability of Quarterly Schedule of
Investments

Each Trust files their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Each Trust’s Forms N-Q are available on the SEC’s website at http://www.sec.gov and may also be reviewed and copied at the SEC’s Public Reference Room in Washington, DC.

Information on the operation of the Public Reference Room may be obtained by calling (800) SEC-0330. Each Trust’s Forms N-Q may also be obtained upon request and without charge by calling (800) 441-7762.

SEMI-ANNUAL REPORT FEBRUARY 28, 2009 65

Additional Information (continued)
Proxy Results

The Annual Meeting of Shareholders was held on September 12, 2008 for shareholders of record on July 14, 2008 to elect director or trustee nominees of each Trust:

Approved the Class I Directors/Trustees as follows:

| Votes
For | Votes
Withheld | Votes
For | Votes
Withheld | Votes
For | Votes
Withheld | |
| --- | --- | --- | --- | --- | --- | --- |
| BlackRock California Municipal Income Trust II | 6,585,380 | 117,302 | 6,588,280 | 114,402 | 6,586,780 | 115,902 |
| BlackRock California Insured Municipal Income
Trust | 4,374,207 | 126,498 | 4,375,907 | 124,798 | 4,373,310 | 127,395 |
| BlackRock California Municipal Bond Trust | 2,899,569 | 60,056 | 2,899,569 | 60,056 | 2,898,069 | 61,556 |
| BlackRock Maryland Municipal Bond Trust | 2,010,851 | 16,459 | 2,015,218 | 12,092 | 2,015,351 | 11,959 |
| BlackRock New Jersey Municipal Bond Trust | 2,177,858 | 53,157 | 2,176,608 | 54,407 | 2,177,858 | 53,157 |
| BlackRock New York Insured Municipal Income
Trust | 5,775,873 | 191,972 | 5,773,970 | 193,875 | 5,781,137 | 186,708 |
| BlackRock New York Municipal Bond Trust | 2,524,166 | 31,603 | 2,524,166 | 31,603 | 2,524,166 | 31,603 |
| BlackRock New York Municipal Income Trust II | 4,345,939 | 163,046 | 4,345,939 | 163,046 | 4,345,939 | 163,046 |
| BlackRock Virginia Municipal Bond Trust | 1,420,649 | 113,703 | 1,419,649 | 114,703 | 1,420,649 | 113,703 |

| Votes
For | | Votes
Withheld | | Votes
For | Votes
Withheld | |
| --- | --- | --- | --- | --- | --- | --- |
| BlackRock California Municipal Income Trust II | 1,546 | 1 | 159 | 1 | 6,586,530 | 116,152 |
| BlackRock California Insured Municipal Income
Trust | 1,202 | 1 | 17 | 1 | 4,374,207 | 126,498 |
| BlackRock California Municipal Bond Trust | 702 | 1 | 15 | 1 | 2,899,570 | 60,055 |
| BlackRock Maryland Municipal Bond Trust | 540 | 1 | 22 | 1 | 2,015,351 | 11,959 |
| BlackRock New Jersey Municipal Bond Trust | 425 | 1 | 202 | 1 | 2,176,608 | 54,407 |
| BlackRock New York Insured Municipal Income
Trust | 1,559 | 1 | 8 | 1 | 5,783,266 | 184,579 |
| BlackRock New York Municipal Bond Trust | 830 | 1 | 2 | 1 | 2,524,166 | 31,603 |
| BlackRock New York Municipal Income Trust II | 1,382 | 1 | 334 | 1 | 4,345,939 | 163,046 |
| BlackRock Virginia Municipal Bond Trust | 450 | 1 | 13 | 1 | 1,419,649 | 114,703 |

Approved the Directors/Trustees as follows:

| Votes
For | | Votes
Withheld | | Votes
For | Votes
Withheld | Votes
For | Votes
Withheld | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| BlackRock MuniHoldings New York Insured Fund,
Inc. | 27,684,424 | | 947,285 | | 27,687,519 | 944,190 | 27,681,615 | 950,094 |
| The Massachusetts Health & Education Tax-Exempt
Trust | 2,046,284 | | 91,814 | | 2,046,284 | 91,814 | 2,044,684 | 93,414 |
| W.
Carl Kester | | | | Robert
S. Salomon, Jr. | | Richard
S. Davis | | |
| Votes
For | | Votes
Withheld | | Votes
For | Votes
Withheld | Votes
For | Votes
Withheld | |
| BlackRock MuniHoldings New York Insured Fund,
Inc. | 8,753 | 1 | 926 | 1 | 27,665,324 | 966,385 | 27,708,729 | 922,980 |
| The Massachusetts Health & Education Tax-Exempt
Trust | 356 | 1 | 0 | 1 | 2,046,284 | 91,814 | 2,046,674 | 91,424 |
| Frank
J. Fabozzi | | | | James
T. Flynn | | Karen
P. Robards | | |
| Votes
For | | Votes
Withheld | | Votes
For | Votes
Withheld | Votes
For | Votes
Withheld | |
| BlackRock MuniHoldings New York Insured Fund,
Inc. | 8,753 | 1 | 926 | 1 | 27,685,199 | 946,510 | 27,679,452 | 952,257 |
| The Massachusetts Health & Education Tax-Exempt
Trust | 356 | 1 | 0 | 1 | 2,046,284 | 91,814 | 2,046,284 | 91,814 |
| Richard
E. Cavanagh | | | | Kathleen
F. Feldstein | | Henry
Gabbay | | |
| Votes
For | | Votes
Withheld | | Votes
For | Votes
Withheld | Votes
For | Votes
Withheld | |
| BlackRock MuniHoldings New York Insured Fund,
Inc. | 27,669,541 | | 962,168 | | 27,668,324 | 963,385 | 27,705,612 | 926,097 |
| The Massachusetts Health & Education Tax-Exempt
Trust | 2,046,674 | | 91,424 | | 2,045,184 | 92,914 | 2,046,284 | 91,814 |
| Jerrold
B. Harris | | | | | | | | |
| Votes
For | | Votes
Withheld | | | | | | |
| BlackRock MuniHoldings New York Insured Fund,
Inc. | 27,691,502 | | 940,207 | | | | | |
| The Massachusetts Health & Education Tax-Exempt
Trust | 2,045,184 | | 92,914 | | | | | |

1 Voted on by holders of Preferred Shares only.

Electronic Delivery

Electronic copies of most financial reports are available on the Trusts’ website or shareholders can sign up for e-mail notifications of quarterly statements, annual and semi-annual reports and prospectuses 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.

66 SEMI-ANNUAL REPORT FEBRUARY 28, 2009

Additional Information (concluded)
Section 19 Notices

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

	Net Investment Income	Net Realized Capital Gains	Return of Capital	Total Per Common Share	Net Investment Income	Net Realized Capital Gains	Return of Capital	Total Per Common Share
California Bond	$ 0.37200	$ 0.00292	—	$ 0.37492	99 %	1 %	0 %	100 %
Maryland Bond	$ 0.39240	$ 0.00321	—	$ 0.39561	99 %	1 %	0 %	100 %
MuniHoldings New York	$ 0.32008	—	—	$ 0.32008	100 %	0 %	0 %	100 %
New York Bond	$ 0.40800	$ 0.00394	—	$ 0.41194	99 %	1 %	0 %	100 %
Virginia Bond	$ 0.47091	$ 0.12273	—	$ 0.59363	79 %	21 %	0 %	100 %
MA HEFA	$ 0.30280	—	—	$ 0.30280	100 %	0 %	0 %	100 %

General Information

The Trusts will mail only one copy of shareholder documents, including annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and it is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact the Trusts at (800) 441-7762.

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

BlackRock Privacy Principles

BlackRock is committed to maintaining the privacy of its current and former fund investors and individual clients (collectively, “Clients”) and to safeguarding their nonpublic 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 nonpublic 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 nonaffiliated third parties any nonpublic information about its Clients, except as permitted by law or as necessary to service Client accounts. These nonaffiliated 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 nonpublic 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 nonpublic personal information of its Clients, including procedures relating to the proper storage and disposal of such information.

SEMI-ANNUAL REPORT FEBRUARY 28, 2009 67

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 the short-term dividend rates of the Preferred Shares, currently set at the maximum reset rate as a result of failed auctions, may affect the yield to Common Shareholders. Statements and other information herein are as dated and are subject to change.

A description of the policies and procedures that the Trusts use to determine how to vote proxies relating to portfolio securities is available (1) without charge, upon request, by calling toll-free (800) 411-7762; (2) at www.blackrock.com; and (3) on the Securities and Exchange Commission’s website at http://www.sec.gov. Information about how each Trust voted proxies relating to securities held in each Trust’s portfolio during the most recent 12-month period ended June 30 is available upon request and without charge (1) at www.blackrock.com or by calling (800) 441-7762 and (2) on the Securities and Exchange Commission’s website at http://www.sec.gov.

CEF-STMUNI-II-0209

Item 2 –	Code of Ethics – Not Applicable to this semi-annual report
Item 3 –	Audit Committee Financial Expert – Not Applicable to this semi-annual report
Item 4 –	Principal Accountant Fees and Services – Not Applicable to this semi-annual report
Item 5 –	Audit Committee of Listed Registrants – Not Applicable to this semi-annual report
Item 6 –	Investments
	(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 – Not
Applicable to this semi-annual report
Item 8 –	Portfolio Managers of
Closed-End Management Investment Companies – Not Applicable to this
semi-annual report
Item 9 –	Purchases of Equity Securities
by Closed-End Management Investment Company and Affiliated Purchasers – Not
Applicable
Item 10 –	Submission of Matters
to a Vote of Security Holders – The registrant’s Nominating and
Governance Committee will consider nominees to the board of directors recommended
by shareholders when a vacancy becomes available. Shareholders who wish
to recommend a nominee should send nominations that include biographical
information and set forth the qualifications of the proposed nominee to
the registrant’s Secretary. There have been no material changes to
these procedures.
Item 11 –	Controls and Procedures
11(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 13(a)-15(b) under the Securities Exchange Act of 1934, as
amended.
11(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
12(a)(1) –	Code of Ethics – Not
Applicable to this semi-annual report
12(a)(2) –	Certifications – Attached
hereto
12(a)(3) –	Not Applicable
12(b) –	Certifications – Attached
hereto

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

BlackRock Virginia Municipal Bond Trust
By:	/s/ Donald C. Burke
	Donald C. Burke
	Chief Executive Officer of
	BlackRock Virginia Municipal Bond Trust
Date: April 22, 2009

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By:	/s/ Donald C. Burke
	Donald C. Burke
	Chief Executive Officer (principal executive officer) of
	BlackRock Virginia Municipal Bond Trust
Date: April 22, 2009
By:	/s/ Neal J. Andrews
	Neal J. Andrews
	Chief Financial Officer (principal financial officer) of
	BlackRock Virginia Municipal Bond Trust
Date: April 22, 2009