Edgar Filing: BLACKROCK MASSACHUSETTS TAX-EXEMPT TRUST

BLACKROCK MASSACHUSETTS TAX-EXEMPT TRUST

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-07660

Name of Fund: BlackRock Massachusetts Tax-Exempt Trust (MHE)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock Massachusetts Tax-Exempt Trust, 55 East 52^nd Street, New York, NY 10055

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

Date of fiscal year end: 08/31/2019

Date of reporting period: 02/28/2019

Item 1 – Report to Stockholders

FEBRUARY 28, 2019


SEMI-ANNUAL REPORT (UNAUDITED)

BlackRock Maryland Municipal Bond Trust (BZM)

BlackRock Massachusetts Tax-Exempt Trust (MHE)

BlackRock MuniHoldings New York Quality Fund, Inc. (MHN)

BlackRock New York Municipal Bond Trust (BQH)

BlackRock New York Municipal Income Quality Trust (BSE)

BlackRock New York Municipal Income Trust II (BFY)

BlackRock Virginia Municipal Bond Trust (BHV)

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of each Trust’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from BlackRock or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.

You may elect to receive all future reports in paper free of charge. If you hold accounts directly with BlackRock, you can call Computershare at (800) 699-1236 to request that you continue receiving paper copies of your shareholder reports. If you hold accounts through a financial intermediary, you can follow the instructions included with this disclosure, if applicable, or contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. Please note that not all financial intermediaries may offer this service. Your election to receive reports in paper will apply to all funds advised by BlackRock Advisors, LLC or its affiliates, or all funds held with your financial intermediary, as applicable.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive electronic delivery of shareholder reports and other communications by contacting your financial intermediary, if you hold accounts through a financial intermediary. Please note that not all financial intermediaries may offer this service.

Not FDIC Insured • May Lose Value • No Bank Guarantee

The Markets in Review

Dear Shareholder,

In the 12 months ended February 28, 2019, concerns about a variety of political risks and a modest slowdown in global growth led to modest positive returns for the U.S. equity and bond markets. Though the market’s appetite for risk remained healthy for most of the reporting period, risk taking declined sharply in late 2018.

Volatility rose in emerging market stocks, as the rising U.S. dollar and higher interest rates in the U.S. disrupted economic growth abroad. U.S.-China trade relations and debt concerns adversely affected the Chinese stock market, while Turkey and Argentina became embroiled in currency crises, largely due to hyperinflation in both countries. An economic slowdown in Europe also led to negative performance for European equities.

Volatility in the U.S. equity market spiked in October, as a wide range of risks were brought to bear on markets, ranging from rising interest rates and slowing global growth to heightened trade tensions and political turmoil in several countries, including the United States. These risks manifested in a broad based sell-off in December, leading to the worst December performance on record since 1931.

By comparison, fixed income securities delivered modest positive returns with relatively low volatility. In fixed income markets, short-term U.S. Treasury interest rates rose the fastest, while longer-term rates declined slightly. This led to positive returns for U.S. Treasuries and a substantial flattening of the yield curve. Investment-grade and high-yield corporate bonds also posted positive returns, as the credit fundamentals in corporate markets remained relatively solid.

The U.S. Federal Reserve (the “Fed”) increased short-term interest rates four times during the reporting period. At its most recent meeting in late January, the Fed left interest rates unchanged and signaled a slower pace of rate hikes in response to the global economic slowdown. Relatively low inflation and modest economic growth give the Fed room to maintain support for the economy until the economic data builds the case for changing interest rates.

Although fears of recession drove equity volatility higher at the end of 2018, we continue to believe the probability of recession in 2019 remains relatively low. Economic growth and global earnings are likely to slow somewhat in 2019 because the tax cut stimulus will be less pronounced, and the Fed’s rate hikes in 2018 will gain traction in 2019. We expect profit margins to continue to contract, which tends to happen late in the business cycle.

In addition, trade frictions look more baked into asset prices than a year ago, but markets may be overlooking European political risks. As Brexit moves forward, the U.K. and the European Union may face significant obstacles. Most recently, Britain’s Parliament voted to extend the deadline for the separation, as policy makers continue to seek the least disruptive ways to disentangle Europe’s second-largest economy from the European Union. Consequently, we are cautious on European equities, as European unity remains tenuous with a history of flare-ups. We continue to prefer to take risk in U.S. and emerging market equities. Within U.S. equities, we believe that companies with high-quality earnings and strong balance sheets offer the most attractive risk/reward trade-off.

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

Sincerely,

LOGO

Rob Kapito

President, BlackRock Advisors, LLC

LOGO

Rob Kapito

President, BlackRock Advisors, LLC


Total Returns as of February 28, 2019
	6-month	12-month
U.S. large cap equities (S&P 500^® Index)	(3.04)%	4.68%
U.S. small cap equities (Russell 2000^® Index)	(8.86)	5.58
International equities (MSCI Europe, Australasia, Far East Index)	(3.58)	(6.04)
Emerging market equities (MSCI Emerging Markets Index)	0.33	(9.89)
3-month Treasury bills (ICE BofAML 3-Month U.S. Treasury Bill Index)	1.10	2.04
U.S. Treasury securities (ICE BofAML 10-Year U.S. Treasury Index)	2.57	4.02
U.S. investment grade bonds (Bloomberg Barclays U.S. Aggregate Bond Index)	1.99	3.17
Tax-exempt municipal bonds (S&P Municipal Bond Index)	2.21	4.03
U.S. high yield bonds (Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index)	2.00	4.31
Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.


2		THIS PAGE IS NOT PART OF YOUR FUND REPORT

Table of Contents


	Page
The Markets in Review		2
Semi-Annual Report:
Municipal Market Overview		4
The Benefits and Risks of Leveraging		5
Derivative Financial Instruments		5
Trust Summaries		6
Financial Statements:
Schedules of Investments		20
Statements of Assets and Liabilities		53
Statements of Operations		55
Statements of Changes in Net Assets		57
Statements of Cash Flows		61
Financial Highlights		63
Notes to Financial Statements		70
Trustee and Officer Information		80
Additional Information		81
Glossary of Terms Used in this Report		83


			3

Municipal Market Overview For the Reporting Period Ended February 28, 2019

Municipal Market Conditions

Municipal bonds experienced positive performance during the period, despite challenged total returns during most of 2018 as interest rates moved higher on the back of continued Fed policy normalization, fiscal stimulus, strong economic growth, and increased U.S. Treasury issuance. Performance turned stronger late in the year, with interest rates rallying as the Fed began to indicate a pivot from forecast based to data driven policy and the potential for a slower pace of future rate hikes. During the period, demand for the asset class remained firm, although it displayed some bouts of volatility. Broadly, investors favored the tax-exempt income, diversification, quality, and value of municipal bonds given that tax reform ultimately lowered the top individual tax rate just 2.6% while eliminating deductions. During the 12 months ended February 28, 2019, municipal bond funds experienced net inflows of approximately $14.4 billion (based on data from the Investment Company Institute).



For the same 12-month period, total new issuance underwhelmed from a historical perspective at $323 billion (below the $389 billion issued in the prior 12-month period), a direct result of the elimination of advanced refundings through the 2017 Tax Cuts and Jobs Act. This shift transitioned the market from an existing net positive supply environment to a much more favorable net negative supply environment in which reinvestment income (coupons, calls, and maturities) largely outstripped gross issuance and provided a powerful technical tailwind.		S&P Municipal Bond Index
		Total Returns as of February 28, 2019
		6 months: 2.21%
		12 months: 4.03%

A Closer Look at Yields

LOGO

From February 28, 2018 to February 28, 2019, yields on AAA-rated 30-year municipal bonds decreased by eight basis points (“bps”) from 3.06% to 2.98%, while ten-year rates decreased by 37 bps from 2.47% to 2.10% and five-year rates decreased by 30 bps from 1.97% to 1.67% (as measured by Thomson Municipal Market Data). The municipal yield curve flattened modestly over the 12-month period with the spread between two- and 30-year maturities flattening by 14 bps, led by 43 bps of flattening between two- and ten-year maturities. Notably, the municipal yield curve remains nearly 2.5 times steeper than the U.S. Treasury curve.

During the same time period, on a relative basis, tax-exempt municipal bonds strongly outperformed U.S. Treasuries, driven by the front and intermediate portions of the yield curve. The relative positive performance of municipal bonds was driven largely by a supply/demand imbalance within the municipal market as investors sought income, incremental yield, and tax shelter in an environment where opportunities became increasingly scarce. The asset class is known for its lower relative volatility and preservation of principal with an emphasis on income as tax rates rise.

Financial Conditions of Municipal Issuers

The majority of municipal credits remain strong, despite well-publicized problems among a few issuers. Four of the five states with the largest amount of debt outstanding — California, New York, Texas and Florida — continue to exhibit improved credit fundamentals. However, several states with the largest unfunded pension liabilities are faced with elevated borrowing costs and difficult budgetary decisions. Across the country on the local level, property values support credit stability. Standard & Poor’s decision to remove its “negative” outlook on New Mexico underscores the improvement in state finances as it was the only remaining state with the designation. Revenue bonds continue to drive performance as investors continue to seek higher yield bonds in the tobacco sector. BlackRock maintains the view that municipal bond defaults will remain minimal and in the periphery while the overall market is fundamentally sound. We continue to advocate careful credit research and believe that a thoughtful approach to structure and security selection remains imperative amid uncertainty in a modestly improving economic environment.

The opinions expressed are those of BlackRock as of February 28, 2019 and are subject to change at any time due to changes in market or economic conditions. The comments should not be construed as a recommendation of any individual holdings or market sectors. Investing involves risk including loss of principal. Bond values fluctuate in price so the value of your investment can go down depending on market conditions. Fixed income risks include interest-rate and credit risk. Typically, when interest rates rise, there is a corresponding decline in bond values. Credit risk refers to the possibility that the bond issuer will not be able to make principal and interest payments. There may be less information on the financial condition of municipal issuers than for public corporations. The market for municipal bonds may be less liquid than for taxable bonds. Some investors may be subject to Alternative Minimum Tax (“AMT”). Capital gains distributions, if any, are taxable.

The Standard & Poor’s Municipal Bond Index, a broad, market value-weighted index, seeks to measure the performance of the U.S. municipal bond market. All bonds in the index are exempt from U.S. federal income taxes or subject to the AMT. Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. It is not possible to invest directly in an index.


4		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

The Benefits and Risks of Leveraging

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

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

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

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

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

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

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

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

Derivative Financial Instruments

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


THE BENEFITS AND RISKS OF LEVERAGING / DERIVATIVE FINANCIAL INSTRUMENTS			5


Trust Summary as of February 28, 2019		BlackRock Maryland Municipal Bond Trust

Trust Overview

BlackRock Maryland Municipal Bond Trust’s (BZM) (the “Trust”) investment objective is to provide current income exempt from regular U.S. federal income taxes and Maryland personal income taxes. The Trust seeks to achieve its investment objective by investing primarily in municipal bonds exempt from U.S. federal income taxes (except that the interest may be subject to the U.S. federal alternative minimum tax) and Maryland personal income taxes. The Trust invests, under normal market conditions, at least 80% of its managed assets in municipal bonds that are investment grade quality at the time of investment or, if unrated, determined to be of comparable quality by the Trust’s investment adviser at the time of investment. The Trust may invest directly in such securities or synthetically through the use of derivatives.

No assurance can be given that the Trust’s investment objective will be achieved.

Trust Information


Symbol on New York Stock Exchange (“NYSE”)		BZM
Initial Offering Date		April 30, 2002
Yield on Closing Market Price as of February 28, 2019 ($13.92)^(a)		4.09%
Tax Equivalent Yield^(b)		7.65%
Current Monthly Distribution per Common Share^(c)		$0.0474
Current Annualized Distribution per Common Share^(c)		$0.5688
Economic Leverage as of February 28, 2019^(d)		38%

^(a)

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

^(b)

Tax equivalent yield assumes the maximum marginal U.S. federal and state tax rate of 46.55%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields.

^(c)

The distribution rate is not constant and is subject to change.

^(d)

Represents VRDP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to VRDP Shares and TOB Trusts, 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 5.

Performance

Returns for the six months ended February 28, 2019 were as follows:


	Returns Based On
	Market Price			NAV
BZM^(a)(b)		1.70	%		1.13	%
Lipper Other States Municipal Debt Funds^(c)		2.86			1.95

^(a)

All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices.

^(b)

The Trust’s discount to NAV narrowed during the period, which accounts for the difference between performance based on market price and performance based on NAV.

^(c)

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

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

Past performance is not indicative of future results.

The following discussion relates to the Trust’s absolute performance based on NAV:

After performing poorly in September and October, municipal bonds recovered to post a positive total return for the full six-month period. The initial downturn was largely brought about by concerns that the Fed would raise interest rates aggressively in 2019. However, subsequent signs of slowing growth prompted investors to adjust their expectations in favor of more accommodative Fed policy, sparking a rally across the bond market from early November onward.

Maryland municipal bonds finished slightly ahead of the national index. Scarcity of issuance was an important driver of positive relative returns, although the state’s BBB rated and high yield issues underperformed somewhat. Demand for Maryland’s debt remained robust due to the state and local tax cap instituted in the 2017 federal tax reform bill.

The Trust benefited from its positions in the health care and education sectors. Positions in higher-quality AA and A rated bonds, which outperformed the lower-rated categories, were a further plus. Conversely, the Trust’s allocations to high-yield issues (those with ratings of BB and below) detracted.

Positions in bonds with maturities between three and ten years, which significantly outperformed longer-term issues during the period, were notable contributors to performance.

The Trust’s holdings in securities with shorter call dates also outperformed, reflecting the high demand for their relatively shorter duration in the latter part of the period. (Duration is a measure of interest rate sensitivity.)

Portfolio income, enhanced by leverage, was a key contributor to absolute returns. The use of leverage further aided results by augmenting the effect of rising bond prices.

The Trust sought to manage interest rate risk using U.S. Treasury futures. Given that U.S. Treasury yields fell, as prices rose, this strategy had a small, negative effect on returns.

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.


6		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Trust Summary as of February 28, 2019 (continued)		BlackRock Maryland Municipal Bond Trust

Market Price and Net Asset Value Per Share Summary


	02/28/19		08/31/18		Change			High		Low
Market Price	$	13.92	$	14.04		(0.85	)%	$	14.60	$	12.61
Net Asset Value		14.69		14.90		(1.41	)		14.90		14.41

Market Price and Net Asset Value History For the Past Five Years

LOGO

Overview of the Trust’s Total Investments*

SECTOR ALLOCATION


Sector	02/28/19			08/31/18
Health		33	%		29	%
County/City/Special District/School District		19			16
Education		16			19
Transportation		14			13
Utilities		9			13
Housing		7			8
Corporate		1			1
State		1			—
Tobacco		—	^(a)		1

^(a)

Representing less than 1% of the Fund’s total investments.

For Trust compliance purposes, the Trust’s sector classifications refer to one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.

CALL/MATURITY SCHEDULE^(c)


Calendar Year Ended December 31,
2019	10	%
2020	3
2021	8
2022	22
2023	2

^(c)

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

Excludes short-term securities.

CREDIT QUALITY ALLOCATION^(b)


Credit Rating	02/28/19			08/31/18
AAA/Aaa		8	%		7	%
AA/Aa		28			29
A		30			30
BBB/Baa		13			15
BB/Ba		4			4
B/B		5			5
N/R		12			10

^(b)

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


TRUST SUMMARY			7


Trust Summary as of February 28, 2019		BlackRock Massachusetts Tax-Exempt Trust

Trust Overview

BlackRock Massachusetts Tax-Exempt Trust’s (MHE) (the “Trust”) investment objective is to provide as high a level of current income exempt from both regular U.S. 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 (including bonds, notes and capital lease obligations). The Trust invests, under normal market conditions, at least 80% of its assets in obligations that are rated investment grade at the time of investment or, if unrated, determined to be of comparable quality at the time of investment by the Trust’s investment adviser. Under normal market conditions, the Trust invests its assets so that at least 80% of the income generated by the Trust is exempt from U.S. federal income taxes, including U.S. federal alternative minimum tax, and Massachusetts personal income taxes. The Trust invests primarily in long term municipal obligations with maturities of more than ten years. The Trust may invest directly in such securities or synthetically through the use of derivatives.

No assurance can be given that the Trust’s investment objective will be achieved.

Trust Information


Symbol on NYSE		MHE
Initial Offering Date		July 23, 1993
Yield on Closing Market Price as of February 28, 2019 ($12.28)^(a)		4.30%
Tax Equivalent Yield^(b)		7.95%
Current Monthly Distribution per Common Share^(c)		$0.044
Current Annualized Distribution per Common Share^(c)		$0.528
Economic Leverage as of February 28, 2019^(d)		40%

^(a)

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.

^(b)

Tax equivalent yield assumes the maximum marginal U.S. federal and state tax rate of 45.9%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields.

^(c)

The distribution rate is not constant and is subject to change.

^(d)

Performance

Returns for the six months ended February 28, 2019 were as follows:


	Returns Based On
	Market Price			NAV
MHE^(a)(b)		1.40	%		1.46	%
Lipper Other States Municipal Debt Funds^(c)		2.86			1.95

^(a)

All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices.

^(b)

The Trust’s discount to NAV widened during the period, which accounts for the difference between performance based on market price and performance based on NAV.

^(c)

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

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

Past performance is not indicative of future results.

The following discussion relates to the Trust’s absolute performance based on NAV:

Massachusetts municipal bonds finished slightly ahead of the national index. Scarcity of issuance was an important driver of positive relative returns, although the state’s BBB rated issues underperformed somewhat. Demand for Massachusetts debt remained robust due to the state and local tax cap instituted in the 2017 federal tax reform bill.

The Trust benefited from its positions in the tax-backed state and education sectors. In the latter sector, positions in BBB rated issues were notable contributors. Positions in higher-quality AA and A rated bonds, which outperformed the lower-rated categories, were a further plus. Conversely, the Trust’s allocation to high-yield issues (those with ratings of BB and below) with above-average duration detracted. (Duration is a measure of interest-rate sensitivity.)

Bonds with maturities of three to ten years significantly outpaced longer-term issues. In this environment, the Trust’s positions in pre-refunded bonds outperformed due to their short-dated maturities. Portfolio income, enhanced by leverage, was a key contributor to absolute returns. The use of leverage further aided results by augmenting the effect of rising bond prices.

The Trust sought to manage interest rate risk using U.S. Treasury futures. Given that U.S. Treasury yields fell, as prices rose, this strategy had a small, negative effect on returns.


8		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Trust Summary as of February 28, 2019 (continued)		BlackRock Massachusetts Tax-Exempt Trust

Market Price and Net Asset Value Per Share Summary


	02/28/19		08/31/18		Change			High		Low
Market Price	$	12.28	$	12.38		(0.81	)%	$	12.83	$	11.09
Net Asset Value		13.23		13.33		(0.75	)		13.33		12.85

Market Price and Net Asset Value History For the Past Five Years

LOGO

Overview of the Trust’s Total Investments*

SECTOR ALLOCATION


Sector	02/28/19			08/31/18
Education		40	%		41	%
State		24			21
Transportation		15			15
Health		15			15
Housing		4			5
County/City/Special District/School District		2			2
Tobacco		—	^(a)		1

^(a)

Representing less than 1% of the Fund’s total investments.

CALL/MATURITY SCHEDULE^(c)


Calendar Year Ended December 31,
2019	13	%
2020	12
2021	8
2022	14
2023	1

^(c)

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

Excludes short-term securities.

CREDIT QUALITY ALLOCATION^(b)


Credit Rating	02/28/19			08/31/18
AAA/Aaa		6	%		7	%
AA/Aa		62			60
A		10			11
BBB/Baa		16			15
BB/Ba		—	^(a)		1
N/R		6			6

^(b)

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


TRUST SUMMARY			9


Trust Summary as of February 28, 2019		BlackRock MuniHoldings New York Quality Fund, Inc.

Trust Overview

BlackRock MuniHoldings New York Quality Fund, Inc.’s (MHN) (the “Trust”) investment objective is to provide shareholders with current income exempt from U.S. federal income tax and New York State and New York City personal income taxes. The Trust seeks to achieve its investment objective by investing, under normal market conditions, at least 80% of its assets in investment grade (as rated or, if unrated, considered to be of comparable quality at the time of investment by the Trust’s investment adviser) New York municipal obligations exempt from U.S. federal income taxes (except that the interest may be subject to the U.S. federal alternative minimum tax) and New York State and New York City personal income taxes (“New York Municipal Bonds”), except at times when, in the judgment of its investment adviser, New York Municipal Bonds of sufficient quality and quantity are unavailable for investment by the Trust. At all times, except during temporary defensive periods, the Trust invests at least 65% of its assets in New York Municipal Bonds. The Trust invests, under normal market conditions, at least 80% of its assets in municipal obligations with remaining maturities of one year or more. The Trust may invest directly in such securities or synthetically through the use of derivatives.

No assurance can be given that the Trust’s investment objective will be achieved.

Trust Information


Symbol on NYSE		MHN
Initial Offering Date		September 19, 1997
Yield on Closing Market Price as of February 28, 2019 ($12.51)^(a)		4.27%
Tax Equivalent Yield^(b)		8.48%
Current Monthly Distribution per Common Share^(c)		$0.0445
Current Annualized Distribution per Common Share^(c)		$0.5340
Economic Leverage as of February 28, 2019^(d)		40%

^(a)

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.

^(b)

Tax equivalent yield assumes the maximum marginal U.S. federal and state tax rate of 49.62%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields.

^(c)

The distribution rate is not constant and is subject to change.

^(d)

Performance

Returns for the six months ended February 28, 2019 were as follows:


	Returns Based On
	Market Price			NAV
MHN^(a)(b)		3.54	%		2.43	%
Lipper New York Municipal Debt Funds^(c)		5.06			1.85

^(a)

All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices.

^(b)

The Trust’s discount to NAV narrowed during the period, which accounts for the difference between performance based on market price and performance based on NAV.

^(c)

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

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

Past performance is not indicative of future results.

The following discussion relates to the Trust’s absolute performance based on NAV:

New York municipal bonds performed in line with the national indexes. While New York continued to benefit from a broad and diverse economic base, a tax revenue shortfall — possibly driven by changes stemming from the federal Tax Cuts and Jobs Act — had an adverse impact on investor sentiment. In addition to making revenue forecasting more of a challenge, the tax-law changes made New York’s tax structure less competitive relative to lower-tax states. The state’s municipal market was also affected by above-average new-issue supply.

Portfolio income, enhanced by leverage, was a key contributor to absolute returns. The use of leverage further aided results by augmenting the effect of rising bond prices. However, the increasing cost of leverage — which was a result of the Fed’s interest rate hikes — reduced some of the contribution.

The Trust’s holdings in housing issues performed well due to the sector’s sensitivity to interest-rate movements. Positions in the transportation, tax-backed and education sectors also made positive contributions to performance.

The Trust sought to manage interest rate risk using U.S. Treasury futures. Given that U.S. Treasury yields fell, as prices rose, this strategy had a small, negative effect on returns.


10		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Trust Summary as of February 28, 2019 (continued)		BlackRock MuniHoldings New York Quality Fund, Inc.

Market Price and Net Asset Value Per Share Summary


	02/28/19		08/31/18		Change			High		Low
Market Price	$	12.51	$	12.35		1.30	%	$	12.56	$	11.63
Net Asset Value		14.30		14.27		0.21			14.31		13.80

Market Price and Net Asset Value History For the Past Five Years

LOGO

Overview of the Trust’s Total Investments*

SECTOR ALLOCATION


Sector	02/28/19			08/31/18
Transportation		26	%		26	%
County/City/Special District/School District		17			16
Education		16			16
State		14			19
Utilities		13			12
Health		6			6
Housing		5			2
Corporate		2			2
Tobacco		1			1

CALL/MATURITY SCHEDULE^(c)


Calendar Year Ended December 31,
2019	6	%
2020	7
2021	14
2022	10
2023	10

^(c)

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

Excludes short-term securities.

CREDIT QUALITY ALLOCATION^(a)


Credit Rating	02/28/19			08/31/18
AAA/Aaa		8	%		19	%
AA/Aa		57			48
A		23			23
BBB/Baa		7			5
N/R^(b)		5			5

^(a)

^(b)

The investment adviser evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment adviser has deemed certain of these unrated securities as investment grade quality. As of February 28, 2019 and August 31, 2018, the market value of unrated securities deemed by the investment adviser to be investment grade represents 3% and 4%, respectively, of the Trust’s total investments.


TRUST SUMMARY			11


Trust Summary as of February 28, 2019		BlackRock New York Municipal Bond Trust

Trust Overview

BlackRock New York Municipal Bond Trust’s (BQH) (the “Trust”) investment objective is to provide current income exempt from regular U.S. federal income taxes and New York State and New York City personal income taxes. The Trust seeks to achieve its investment objective by investing primarily in municipal bonds exempt from U.S. federal income taxes (except that the interest may be subject to the U.S. federal alternative minimum tax) and New York State and New York City personal income taxes. Under normal market conditions, the Trust invests at least 80% of its managed assets in municipal bonds that are investment grade quality at the time of investment or, if unrated, determined to be of comparable quality at the time of investment by the Trust’s investment adviser. The Trust may invest directly in such securities or synthetically through the use of derivatives.

No assurance can be given that the Trust’s investment objective will be achieved.

Trust Information


Symbol on NYSE		BQH
Initial Offering Date		April 30, 2002
Yield on Closing Market Price as of February 28, 2019 ($13.60)^(a)		4.06%
Tax Equivalent Yield^(b)		8.06%
Current Monthly Distribution per Common Share^(c)		$0.0460
Current Annualized Distribution per Common Share^(c)		$0.5520
Economic Leverage as of February 28, 2019^(d)		41%

^(a)

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.

^(b)

^(c)

The monthly distribution per Common Share, declared on March 1, 2019, was increased to $0.048 per share. The current yield on closing market price, tax equivalent yield, current monthly distribution per Common Share, and current annualized distribution per Common Share do not reflect the new distribution rate. The new distribution rate is not constant and is subject to change in the future.

^(d)

Performance

Returns for the six months ended February 28, 2019 were as follows:


	Returns Based On
	Market Price			NAV
BQH^(a)(b)		6.77	%		2.07	%
Lipper New York Municipal Debt Funds^(c)		5.06			1.85

^(a)

All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices.

^(b)

The Trust’s discount to NAV narrowed during the period, which accounts for the difference between performance based on market price and performance based on NAV.

^(c)

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

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

Past performance is not indicative of future results.

The following discussion relates to the Trust’s absolute performance based on NAV:

Portfolio income, enhanced by leverage, was a key contributor to absolute returns. The use of leverage further aided results by augmenting the effect of rising bond prices. However, the rising cost of leverage — which was a result of the Fed’s interest rate increases — reduced some of the benefit.

At the sector level, positions in education, project finance and utilities issues helped performance. The Trust benefited from its positions in higher-quality bonds, as its holdings in the AA and A rated categories performed well relative to lower-rated securities.

The Trust sought to manage interest rate risk using U.S. Treasury futures. Given that U.S. Treasury yields fell, as prices rose, this strategy had a small, negative effect on returns.

Positions in longer-dated maturities, while producing positive absolute returns, underperformed shorter-maturity issues.


12		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Trust Summary as of February 28, 2019 (continued)		BlackRock New York Municipal Bond Trust

Reinvestment had an adverse effect on the Trust’s income, as the proceeds of higher-yielding bonds that matured or were called needed to be reinvested at lower prevailing rates.

Market Price and Net Asset Value Per Share Summary


	02/28/19		08/31/18		Change			High		Low
Market Price	$	13.60	$	13.01		4.53	%	$	13.60	$	12.31
Net Asset Value		15.38		15.39		(0.06	)		15.40		14.86

Market Price and Net Asset Value History For the Past Five Years

LOGO

Overview of the Trust’s Total Investments*

SECTOR ALLOCATION


Sector	02/28/19			08/31/18
County/City/Special District/School District		24	%		23	%
Education		20			22
Transportation		17			17
Utilities		12			11
Health		9			10
State		8			7
Housing		5			3
Tobacco		3			3
Corporate		2			4

CALL/MATURITY SCHEDULE^(c)


Calendar Year Ended December 31,
2019	6	%
2020	7
2021	19
2022	14
2023	10

^(c)

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

Excludes short-term securities.

CREDIT QUALITY ALLOCATION^(a)


Credit Rating	02/28/19			08/31/18
AAA/Aaa		8	%		10	%
AA/Aa		51			41
A		21			27
BBB/Baa		6			9
BB/Ba		2			2
B/B		2			1
N/R^(b)		10			10

^(a)

^(b)


TRUST SUMMARY			13


Trust Summary as of February 28, 2019		BlackRock New York Municipal Income Quality Trust

Trust Overview

BlackRock New York Municipal Income Quality Trust’s (BSE) (the “Trust”) investment objective is to provide current income exempt from U.S. federal income tax, including the alternative minimum tax, and New York State and New York City personal income taxes. The Trust seeks to achieve its investment objective by investing at least 80% of its managed assets in municipal obligations exempt from U.S. federal income taxes (including the U.S. federal alternative minimum tax) and New York State and New York City personal income taxes. Under normal market conditions, the Trust invests primarily in municipal bonds that are investment grade quality at the time of investment or, if unrated, are determined to be of comparable quality at the time of investment by the Trust’s investment adviser. The Trust may invest directly in such securities or synthetically through the use of derivatives.

No assurance can be given that the Trust’s investment objective will be achieved.

Trust Information


Symbol on NYSE		BSE
Initial Offering Date		October 31, 2002
Yield on Closing Market Price as of February 28, 2019 ($12.59)^(a)		3.86%
Tax Equivalent Yield^(b)		7.66%
Current Monthly Distribution per Common Share^(c)		$0.0405
Current Annualized Distribution per Common Share^(c)		$0.4860
Economic Leverage as of February 28, 2019^(d)		40%

^(a)

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.

^(b)

^(c)

The distribution rate is not constant and is subject to change. A portion of the distribution may be deemed a return of capital or net realized gain.

^(d)

Performance

Returns for the six months ended February 28, 2019 were as follows:


	Returns Based On
	Market Price			NAV
BSE^(a)(b)		1.50	%		2.34	%
Lipper New York Municipal Debt Funds^(c)		5.06			1.85

^(a)

All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices.

^(b)

The Trust’s discount to NAV widened during the period, which accounts for the difference between performance based on market price and performance based on NAV.

^(c)

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

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

Past performance is not indicative of future results.

The following discussion relates to the Trust’s absolute performance based on NAV:

Portfolio income, enhanced by leverage, was a key contributor to absolute returns. The use of leverage further aided results by augmenting the effect of rising bond prices. However, the rising cost of leverage — which was a result of the Fed’s interest rate increases — reduced some of the benefit.

At the sector level, positions in education, local tax-backed and utilities issues helped performance. The Trust benefited from its higher-quality mandate, as its holdings in the AA and A rated categories performed well relative to lower-rated securities.

The Trust sought to manage interest rate risk using U.S. Treasury futures. Given that U.S. Treasury yields fell, as prices rose, this strategy had a small, negative effect on returns.

Positions in longer-dated maturities, while producing positive absolute returns, underperformed shorter-maturity issues.

Reinvestment had an adverse effect on the Trust’s income, as the proceeds of higher-yielding bonds that matured or were called needed to be reinvested at lower prevailing rates.


14		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Trust Summary as of February 28, 2019 (continued)		BlackRock New York Municipal Income Quality Trust

Market Price and Net Asset Value Per Share Summary


	02/28/19		08/31/18		Change			High		Low
Market Price	$	12.59	$	12.65		(0.47	)%	$	12.84	$	11.84
Net Asset Value		14.40		14.35		0.35			14.41		13.89

Market Price and Net Asset Value History For the Past Five Years

LOGO

Overview of the Trust’s Total Investments*

SECTOR ALLOCATION


Sector	02/28/19			08/31/18
Education		22	%		23	%
County/City/Special District/School District		20			18
Transportation		17			16
Utilities		17			16
State		12			16
Health		7			7
Housing		4			3
Tobacco		1			1

CALL/MATURITY SCHEDULE^(c)


Calendar Year Ended December 31,
2019	4	%
2020	3
2021	23
2022	9
2023	14

^(c)

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

Excludes short-term securities.

CREDIT QUALITY ALLOCATION^(a)


Credit Rating	02/28/19			08/31/18
AAA/Aaa		12	%		17	%
AA/Aa		57			50
A		26			27
BBB/Baa		2			2
N/R^(b)		3			4

^(a)

^(b)


TRUST SUMMARY			15


Trust Summary as of February 28, 2019		BlackRock New York Municipal Income Trust II

Trust Overview

BlackRock New York Municipal Income Trust II’s (BFY) (the “Trust”) investment objective is to provide current income exempt from regular U.S. federal income tax and New York State and New York City personal income taxes. The Trust seeks to achieve its investment objective by investing primarily in municipal bonds exempt from U.S. federal income taxes (except that the interest may be subject to the U.S. federal alternative minimum tax) and New York State and New York City personal income taxes. Under normal market conditions, the Trust invests at least 80% of its managed assets in municipal bonds that are investment grade quality at the time of investment or, if unrated, determined to be of comparable quality at the time of investment by the Trust’s investment adviser. The Trust may invest directly in such securities or synthetically through the use of derivatives.

No assurance can be given that the Trust’s investment objective will be achieved.

Trust Information


Symbol on NYSE		BFY
Initial Offering Date		July 30, 2002
Yield on Closing Market Price as of February 28, 2019 ($13.10)^(a)		4.49%
Tax Equivalent Yield^(b)		8.91%
Current Monthly Distribution per Common Share^(c)		$0.0490
Current Annualized Distribution per Common Share^(c)		$0.5880
Economic Leverage as of February 28, 2019^(d)		41%

^(a)

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.

^(b)

^(c)

The distribution rate is not constant and is subject to change.

^(d)

Performance

Returns for the six months ended February 28, 2019 were as follows:


	Returns Based On
	Market Price			NAV
BFY^(a)(b)		4.98	%		2.06	%
Lipper New York Municipal Debt Funds^(c)		5.06			1.85

^(a)

All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices.

^(b)

The Trust’s discount to NAV narrowed during the period, which accounts for the difference between performance based on market price and performance based on NAV.

^(c)

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

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

Past performance is not indicative of future results.

The following discussion relates to the Trust’s absolute performance based on NAV:

Portfolio income, enhanced by leverage, was a key contributor to absolute returns. The use of leverage further aided results by augmenting the effect of rising bond prices. However, the rising cost of leverage — which was a result of the Fed’s interest rate increases — reduced some of the benefit.

At the sector level, positions in tax-backed, utilities and transportation issues helped performance. The Trust benefited from its positions in higher-quality bonds, as its holdings in the AA and A rated categories performed well relative to lower-rated securities.

The Trust sought to manage interest rate risk using U.S. Treasury futures. Given that U.S. Treasury yields fell, as prices rose, this strategy had a small, negative effect on returns.

Positions in longer-dated maturities, while producing positive absolute returns, underperformed shorter-maturity issues.

Reinvestment had an adverse effect on the Trust’s income, as the proceeds of higher-yielding bonds that matured or were called needed to be reinvested at lower prevailing rates.


16		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Trust Summary as of February 28, 2019 (continued)		BlackRock New York Municipal Income Trust II

Market Price and Net Asset Value Per Share Summary


	02/28/19		08/31/18		Change			High		Low
Market Price	$	13.10	$	12.77		2.58	%	$	13.15	$	12.15
Net Asset Value		14.93		14.97		(0.27	)		14.97		14.46

Market Price and Net Asset Value History For the Past Five Years

LOGO

Overview of the Trust’s Total Investments*

SECTOR ALLOCATION


Sector	02/28/19			08/31/18
County/City/Special District/School District		23	%		19	%
Transportation		20			20
Education		15			17
State		11			13
Utilities		11			11
Health		8			8
Housing		6			5
Tobacco		3			3
Corporate		3			4

CALL/MATURITY SCHEDULE^(c)


Calendar Year Ended December 31,
2019	9	%
2020	5
2021	21
2022	6
2023	12

^(c)

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

Excludes short-term securities.

CREDIT QUALITY ALLOCATION^(a)


Credit Rating	02/28/19			08/31/18
AAA/Aaa		9	%		17	%
AA/Aa		49			42
A		26			28
BBB/Baa		5			6
BB/Ba		2			3
B		2			1
N/R^(b)		7			3

^(a)

^(b)


TRUST SUMMARY			17


Trust Summary as of February 28, 2019		BlackRock Virginia Municipal Bond Trust

Trust Overview

BlackRock Virginia Municipal Bond Trust’s (BHV) (the “Trust”) investment objective is to provide current income exempt from regular U.S. federal income tax and Virginia personal income taxes. The Trust seeks to achieve its investment objectives by investing primarily in municipal bonds exempt from U.S. federal income taxes (except that the interest may be subject to the U.S. federal alternative minimum tax) and Virginia personal income taxes. The Trust invests, under normal market conditions, at least 80% of its managed assets in municipal bonds that are investment grade quality at the time of investment or, if unrated, determined to be of comparable quality at the time of investment by the Trust’s investment adviser. The Trust may invest directly in such securities or synthetically through the use of derivatives.

No assurance can be given that the Trust’s investment objective will be achieved.

Trust Information


Symbol on NYSE		BHV
Initial Offering Date		April 30, 2002
Yield on Closing Market Price as of February 28, 2019 ($16.20)^(a)		3.96%
Tax Equivalent Yield^(b)		7.41%
Current Monthly Distribution per Common Share^(c)		$0.0535
Current Annualized Distribution per Common Share^(c)		$0.6420
Economic Leverage as of February 28, 2019^(d)		42%

^(a)

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.

^(b)

^(c)

The distribution rate is not constant and is subject to change.

^(d)

Performance

Returns for the six months ended February 28, 2019 were as follows:


	Returns Based On
	Market Price			NAV
BHV^(a)(b)		0.05	%		1.04	%
Lipper Other States Municipal Debt Funds^(c)		2.86			1.95

^(a)

All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices.

^(b)

The Trust’s premium to NAV narrowed during the period, which accounts for the difference between performance based on market price and performance based on NAV.

^(c)

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

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

Past performance is not indicative of future results.

The following discussion relates to the Trust’s absolute performance based on NAV:

Virginia municipal bonds finished slightly ahead of the national index. Scarcity of issuance was an important driver of positive relative returns, although the state’s BBB rated and high yield issues underperformed somewhat. Demand for Virginia’s debt remained robust due to the state and local tax cap instituted in the 2017 federal tax reform bill.

The Trust benefited from its positions in the tax-backed local and pre-refunded/escrow sectors. Conversely, its exposure to the tobacco sector was a modest detractor due to the Food and Drug Administration’s announcement of its intention to ban menthol cigarettes, which could lead to a larger-than-expected decline in consumption and reduced payments in accordance to the Master Settlement Agreement. After initially selling off on the news, tobacco issues regained much of the lost ground by the close of the period. The Trust maintained its position in the sector due to its above-average yields.

Bonds with maturities of three to ten years significantly outpaced longer-term issues. In this environment, the Trust’s positions in pre-refunded bonds outperformed due to their short-dated maturities. The Trust’s allocation to zero-coupon bonds in this part of the yield curve was also a notable outperformer. Positions in higher-quality AA and A rated bonds, which outperformed the lower-rated categories, were a further plus.

Portfolio income, enhanced by leverage, was a key contributor to absolute returns. The use of leverage further aided results by augmenting the effect of rising bond prices.

The Trust sought to manage interest rate risk using U.S. Treasury futures. Given that U.S. Treasury yields fell, as prices rose, this strategy had a small, negative effect on returns.


18		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Trust Summary as of February 28, 2019 (continued)		BlackRock Virginia Municipal Bond Trust

Market Price and Net Asset Value Per Share Summary


	02/28/19		08/31/18		Change			High		Low
Market Price	$	16.20	$	16.56		(2.17	)%	$	19.75	$	13.67
Net Asset Value		14.79		14.97		(1.20	)		14.97		14.48

Market Price and Net Asset Value History For the Past Five Years

LOGO

Overview of the Trust’s Total Investments*

SECTOR ALLOCATION


Sector	02/28/19			08/31/18
Health		26	%		28	%
Transportation		25			33
County/City/Special District/School District		19			16
Education		13			12
Housing		8			6
Utilities		4			—
Tobacco		3			3
State		2			1
Corporate		—			1

CALL/MATURITY SCHEDULE^(c)


Calendar Year Ended December 31,
2019	13	%
2020	16
2021	6
2022	10
2023	6

^(c)

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

Excludes short-term securities.

CREDIT QUALITY ALLOCATION^(a)


Credit Rating	02/28/19			08/31/18
AAA/Aaa		10	%		7	%
AA/Aa		42			39
A		7			11
BBB/Baa		4			4
BB/Ba		2			2
B		3			3
N/R		32			34	^(b)

^(a)

^(b)

The investment adviser evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment adviser has deemed certain of these unrated securities as investment grade quality. As of August 31, 2018, the market value of unrated securities deemed by the investment adviser to be investment grade represents 9% of the Trust’s total investments.


TRUST SUMMARY			19

Schedule of Investments (unaudited)

February 28, 2019

BlackRock Maryland Municipal Bond Trust (BZM)

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Municipal Bonds — 140.0%

Maryland — 138.5%

Corporate — 1.9%
Maryland EDC, Refunding RB:
CNX Marine Terminals, Inc., 5.75%, 09/01/25	$	320	$	329,059
Potomac Electric Power Co., 6.20%, 09/01/22		250		250,810

				579,869

County/City/Special District/School District — 24.4%
City of Baltimore Maryland, Refunding RB:
Convention Center Hotel, 5.00%, 09/01/46		750		808,027
East Baltimore Research Park, Series A, 5.00%, 09/01/38		250		262,885
County of Anne Arundel Maryland, GOL, 5.00%, 10/01/43		1,745		2,005,930
County of Anne Arundel Maryland Consolidated, Refunding, Special Tax, Villages of Dorchester and Farmington Project, 5.00%, 07/01/32		500		553,265
County of Anne Arundel Maryland Consolidated, RB, Special Taxing District, Villages at Two Rivers Project, 5.25%, 07/01/44		250		250,798
County of Frederick Maryland, RB, Jefferson Technology Park Project, Series B, 7.13%, 07/01/43^(a)		250		250,470
County of Howard Maryland, Tax Allocation Bonds:
Annapolis Junction Town Center Project, 6.10%, 02/15/44		250		254,247
Downtown Columbia Project, Series A, 4.50%, 02/15/47^(a)		500		501,170
County of Prince George’s Maryland:
Special Obligation, Remarketing, National Harbor Project, 5.20%, 07/01/34		1,347		1,351,553
Tax Allocation Bonds, Westphalia Town Center Project, 5.25%, 07/01/48^(a)		300		305,289
Washington Suburban Sanitary Commission, GO, Consolidated Public Improvement Bonds, Second Series, 4.00%, 06/01/41		875		910,289

				7,453,923

Education — 25.8%
County of Anne Arundel Maryland, Refunding RB, Maryland Economic Development, Anne Arundel Community College Project, 3.25%, 09/01/28		360		369,036
Maryland EDC, Refunding RB:
Towson University Project, 5.00%, 07/01/37		500		520,745
University of Maryland College Park Project (AGM), 5.00%, 06/01/43		1,350		1,503,819
University of Maryland Project, 5.00%, 07/01/39		500		528,815
University Village at Sheppard Pratt, 5.00%, 07/01/33		1,000		1,036,470
Maryland Health & Higher Educational Facilities Authority, Refunding RB:
Anne Arundel Health System, 4.00%, 07/01/39		100		102,169
Goucher College, Series A, 5.00%, 07/01/34		1,000		1,080,950
Johns Hopkins University Project, Series A, 4.00%, 07/01/37		10		10,390
LifeBridge Health Issue, 5.00%, 07/01/34		510		581,058
Loyola University Maryland, Series A, 5.00%, 10/01/39		900		976,671
Maryland Institute College of Art, 5.00%, 06/01/29		500		540,200
Notre Dame Maryland University, 5.00%, 10/01/42		610		626,299

				7,876,622

Health — 50.5%
City of Gaithersburg Maryland, Refunding RB, Asbury Maryland Obligation, Series B, 6.00%, 01/01/23		250		257,740
City of Rockville Maryland, RB, Ingleside at King Farm Project, Series B, 5.00%, 11/01/42		500		518,460
County of Montgomery Maryland, RB, Trinity Health Credit Group:
5.00%, 12/01/45		750		836,932
4.00%, 12/01/44		750		760,403


Security	Par (000)		Value

Health (continued)
County of Montgomery Maryland, Refunding RB, Trinity Health Credit Group, 5.00%, 12/01/40	$	1,000	$	1,075,440
Maryland Health & Higher Educational Facilities Authority, RB:
Ascension Health Alliance, Series B, 5.00%, 11/15/51		1,000		1,067,480
Medstar Health Issue, Series A, 5.00%, 05/15/42		160		175,941
Trinity Health Credit Group, Series 2017, 5.00%, 12/01/46		250		281,645
University of Maryland Medical System Issue, 4.00%, 07/01/48		300		304,761
Maryland Health & Higher Educational Facilities Authority, Refunding RB:
Anne Arundel Health System, 5.00%, 07/01/19^(b)		1,000		1,010,720
Charlestown Community Project, 6.25%, 01/01/21^(b)		1,000		1,080,450
Charlestown Community, Series A, 5.00%, 01/01/45		500		545,395
Frederick Memorial Hospital, Series A, 4.00%, 07/01/38		1,250		1,260,700
Lifebridge Health Issue, 4.13%, 07/01/47		500		511,455
Medstar Health, Inc., 5.00%, 08/15/42		1,000		1,087,010
Meritus Medical Center Issue, 5.00%, 07/01/40		1,000		1,075,680
Peninsula Regional Medical Center, 5.00%, 07/01/45		700		757,743
University of Maryland, 5.00%, 07/01/35		200		222,948
University of Maryland, 4.00%, 07/01/41		500		507,815
University of Maryland Medical System, 5.13%, 07/01/19^(b)		1,000		1,011,280
University of Maryland Medical System, Series A, 5.00%, 07/01/43		1,000		1,075,970

				15,425,968

Housing — 11.3%
County of Howard Maryland Housing Commission, RB, M/F Housing:
Woodfield Oxford Square Apartments, 5.00%, 12/01/42		500		549,665
Columbia Commons Apartments, Series A, 5.00%, 06/01/44		550		583,765
Gateway Village Apartments, 4.00%, 06/01/46		500		503,080
Maryland Community Development Administration, HRB, M/F Housing, Series A, 4.05%, 07/01/42		1,220		1,227,088
Maryland Community Development Administration, RB, M/F Housing, 3.70%, 07/01/35		500		504,510
Maryland Community Development Administration, Refunding RB, S/F Housing, Series A, 4.10%, 09/01/38		100		102,741

				3,470,849

Transportation — 15.1%
Maryland EDC, RB^(b):
Term Project, Series B, 5.75%, 06/01/20		500		525,140
Transportation Facilities Project, Series A, 5.75%, 06/01/20		500		525,140
Maryland EDC, Refunding RB, Transportation Facilities Project, Series A, 5.00%, 06/01/35		100		112,681
Maryland State Department of Transportation, RB, Consolidated, 4.00%, 05/15/19^(b)		1,000		1,004,900
Maryland State Transportation Authority, RB, Baltimore/Washington International Thurgood Marshall Airport Project, Series A, AMT, 4.00%, 06/01/29		1,925		1,978,226
Maryland State Transportation Authority, Refunding RB, Baltimore/Washington International Thurgood Marshall Airport Project, Series B, AMT, 5.00%, 03/01/23		445		483,947

				4,630,034

Utilities — 9.5%
City of Baltimore Maryland, RB:
Sub-Water Projects, Series A, 5.00%, 07/01/41		100		112,297
Sub-Water Projects, Series A, 5.00%, 07/01/46		495		554,702
Wastewater Project, Series C, 5.00%, 07/01/38		1,000		1,117,220
Water Project, Series A, 5.00%, 07/01/43		1,000		1,112,400

				2,896,619


Total Municipal Bonds in Maryland				42,333,884


20		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (unaudited) (continued)

February 28, 2019

BlackRock Maryland Municipal Bond Trust (BZM)

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Puerto Rico — 1.5%

State — 0.9%
Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB, Restructured, Series A-1:
4.50%, 07/01/34	$	3	$	2,996
4.75%, 07/01/53		71		65,197
5.00%, 07/01/58		211		200,039

				268,232

Tobacco — 0.6%
Children’s Trust Fund, Refunding RB, Tobacco Settlement Asset-Backed Bonds, 5.63%, 05/15/43		200		202,088


Total Municipal Bonds — 140.0% (Cost — $41,783,390)				42,804,204


Municipal Bonds Transferred to Tender Option Bond Trusts^(c)

Maryland — 10.2%

County/City/Special District/School District — 5.6%
State of Maryland Stadium Authority, RB, Construction and Revitalization Program, 5.00%, 05/01/42		1,500		1,700,730


Utilities — 4.6%
City of Baltimore Maryland, RB, Wastewater Project, Series A, 5.00%, 07/01/46		1,269		1,422,988


Total Municipal Bonds Transferred to Tender Option Bond Trusts in Maryland				3,123,718


Washington — 7.6%

Transportation — 7.6%
Washington Metropolitan Area Transit Authority, RB, Series B, 5.00%, 07/01/42		2,045		2,321,007


Total Municipal Bonds Transferred to Tender Option Bond Trusts — 17.8% (Cost — $5,418,696)				5,444,725


Total Long-Term Investments — 157.8% (Cost — $47,202,086)				48,248,929


	Shares		Value

Short-Term Securities — 2.8%
BlackRock Liquidity Funds, MuniCash, Institutional Class, 1.55%^(d)(e)		840,471	$	840,555


Total Short-Term Securities — 2.8% (Cost — $840,555)				840,555


Total Investments — 160.6% (Cost — $48,042,641)				49,089,484

Other Assets Less Liabilities — 1.4%				423,319

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (9.8)%				(3,009,354	)

VRDP Shares, at Liquidation Value, Net of Deferred Offering Costs — (52.2)%				(15,938,872	)


Net Assets Applicable to Common Shares — 100.0%			$	30,564,577

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

^(b)	U.S. Government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par.

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

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

^(e)	During the six months ended February 28, 2019, investments in issuers considered to be an affiliate of the Trust for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:


Affiliate	Shares Held at 08/31/18		Net Activity		Shares Held at 02/28/19		Value at 02/28/19		Income		Net Realized Gain (Loss)^(a)		Change in Unrealized Appreciation (Depreciation)
BlackRock Liquidity Funds, MuniCash, Institutional Class		273,831		566,640		840,471	$	840,555	$	8,333	$	138	$	—

^(a)

Includes net capital gain distributions, if applicable.


SCHEDULES OF INVESTMENTS			21

Schedule of Investments (unaudited) (continued)

February 28, 2019

BlackRock Maryland Municipal Bond Trust (BZM)

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts


Description	Number of Contracts		Expiration Date		Notional Amount (000)		Value/ Unrealized Appreciation (Depreciation)
Short Contracts:
10-Year U.S. Treasury Note		5		06/19/19	$	610	$	3,150
Long U.S. Treasury Bond		15		06/19/19		2,167		24,688
5-Year U.S. Treasury Note		4		06/28/19		458		1,369

							$	29,207

Derivative Financial Instruments Categorized by Risk Exposure

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


	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Currency Exchange Contracts		Interest Rate Contracts		Other Contracts		Total
Assets — Derivative Financial Instruments
Futures contracts
Net unrealized appreciation^(a)	$	—	$	—	$	—	$	—	$	29,207	$	—	$	29,207

^(a)

Includes cumulative appreciation (depreciation) on futures contracts, if any, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities.

For the six months ended February 28, 2019, the effect of derivative financial instruments in the Statements of Operations was as follows:


	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Currency Exchange Contracts		Interest Rate Contracts			Other Contracts		Total
Net Realized Gain (Loss) from:
Futures contracts	$	—	$	—	$	—	$	—	$	(45,538	)	$	—	$	(45,538	)


Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts	$	—	$	—	$	—	$	—	$	24,598		$	—	$	24,598

Average Quarterly Balances of Outstanding Derivative Financial Instruments


Futures contracts:
Average notional value of contracts — short	$	2,925,152

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

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of investments and derivative financial instruments. For information about the Trust’s policy regarding valuation of investments and derivative financial instruments, refer to the Notes to Financial Statements.

The following tables summarize the Trust’s investments and derivative financial instruments categorized in the disclosure hierarchy:


	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Long-Term Investments^(a)	$	—	$	48,248,929	$	—	$	48,248,929
Short-Term Securities		840,555		—		—		840,555

	$	840,555	$	48,248,929	$	—	$	49,089,484


22		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (unaudited) (continued)

February 28, 2019

BlackRock Maryland Municipal Bond Trust (BZM)

Fair Value Hierarchy as of Period End (continued)


	Level 1		Level 2		Level 3		Total
Derivative Financial Instruments^(b)
Assets:
Interest rate contracts	$	29,207	$	—	$	—	$	29,207

^(a)

See above Schedule of Investments for values in each sector.

^(b)

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

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


	Level 1		Level 2			Level 3		Total
Liabilities:
TOB Trust Certificates	$	—	$	(2,999,064	)	$	—	$	(2,999,064	)
VRDP Shares at Liquidation Value		—		(16,000,000	)		—		(16,000,000	)

	$	—	$	(18,999,064	)	$	—	$	(18,999,064	)

During the six months ended February 28, 2019, there were no transfers between levels.

See notes to financial statements.


SCHEDULES OF INVESTMENTS			23

Schedule of Investments (unaudited)

February 28, 2019

BlackRock Massachusetts Tax-Exempt Trust (MHE)

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Municipal Bonds — 152.9%

Massachusetts — 151.3%

County/City/Special District/School District — 3.5%
Town of Holyoke Massachusetts, GO, Refunding, 5.00%, 09/01/26	$	1,000	$	1,105,950


Education — 59.2%
Massachusetts Development Finance Agency, RB:
Emerson College Issue, Series A, 5.00%, 01/01/47		1,000		1,079,940
Emerson College Issue, Series A, 5.25%, 01/01/42		500		550,615
Foxborough Regional Charter School, Series A, 7.00%, 07/01/20^(a)		250		267,485
Merrimack College, 5.00%, 07/01/47		550		588,924
Mount Holyoke College, Series B, 5.00%, 07/01/41		500		532,875
UMass Boston Student Housing Project, 5.00%, 10/01/48		1,000		1,064,070
UMass Darthmouth Student Housing Project, 5.00%, 10/01/48		200		214,786
Wellesley College, Series J, 5.00%, 07/01/42		1,950		2,111,733
Wentworth Institute Technology, 5.00%, 10/01/46		500		540,010
WGBH Educational Foundation, Series A (AMBAC), 5.75%, 01/01/42		650		863,928
Massachusetts Development Finance Agency, Refunding RB:
Boston University, Series P, 5.45%, 05/15/59		1,500		1,767,285
Emerson College, 5.00%, 01/01/41		500		533,100
Emerson College, Series A, 5.00%, 01/01/20^(a)		200		205,596
Emmanuel College Issue, Series A, 5.00%, 10/01/35		250		274,250
Foxborough Regional Charter School Issue, 5.00%, 07/01/37		150		158,673
International Charter School, 5.00%, 04/15/40		1,000		1,043,680
Series A, 5.00%, 07/01/44		250		275,018
Suffolk University, 4.00%, 07/01/39		500		501,435
Trustees of Deerfield Academy, 5.00%, 10/01/40		1,675		1,751,229
Massachusetts Educational Financing Authority, RB, Education Loan, Issue I, AMT, 5.00%, 01/01/27		1,000		1,117,790
Massachusetts Educational Financing Authority, Refunding RB, Issue J, AMT, 3.50%, 07/01/33		195		195,846
Massachusetts Health & Educational Facilities Authority, RB, Berklee College of Music, Inc., Series A, 5.00%, 10/01/37		70		70,187
Massachusetts Health & Educational Facilities Authority, Refunding RB:
Northeastern University, Series T-2, 5.00%, 10/01/32		500		548,525
Springfield College, 5.63%, 10/15/19^(a)		500		512,235
Tufts University, Series M, 5.50%, 02/15/27		1,000		1,252,740
University of Massachusetts Building Authority, RB, Senior-Series 2, 5.00%, 11/01/39		500		547,360

				18,569,315

Health — 22.6%
Massachusetts Development Finance Agency, Refunding RB:
Boston Medical Center, Series E, 4.00%, 07/01/38		500		500,840
Carleton-Willard Village, 5.63%, 12/01/30		500		511,810
New Bridge Charles, Inc., 4.13%, 10/01/42^(b)		550		506,170
Partners Healthcare, Series L, 5.00%, 07/01/21^(a)		995		1,067,864
Partners Healthcare, Series L, 5.00%, 07/01/36		5		5,321
Wellesley College Issue, Series L, 4.00%, 07/01/44		250		260,447
Western New England University, 5.00%, 09/01/43		500		547,980
Massachusetts Health & Educational Facilities Authority, RB:
Cape Cod Healthcare Obligated Group, Series D (AGC), 5.00%, 11/15/19^(a)		1,000		1,023,320
Children’s Hospital, Series M, 5.25%, 12/01/19^(a)		600		615,750
Children’s Hospital, Series M, 5.50%, 12/01/19^(a)		500		514,045
Southcoast Health Obligation Group, Series D, 5.00%, 07/01/39		500		504,785


Security	Par (000)		Value

Health (continued)
Massachusetts Health & Educational Facilities Authority, Refunding RB, Winchester Hospital, Series H, 5.25%, 07/01/38	$	1,000	$	1,040,320

				7,098,652

Housing — 6.4%
Massachusetts Housing Finance Agency, RB, M/F Housing, Series A:
3.80%, 12/01/43		500		494,340
(FHA), 5.25%, 12/01/35		185		191,871
Massachusetts Housing Finance Agency, Refunding RB, AMT:
Series A, 4.50%, 12/01/47		500		510,040
Series C, 5.00%, 12/01/30		160		160,776
Series C, 5.35%, 12/01/42		645		648,296

				2,005,323

State — 34.5%
Commonwealth of Massachusetts, GO:
Series C, 5.00%, 07/01/45		1,000		1,113,970
Series G, 4.00%, 09/01/42		1,000		1,031,100
Massachusetts Bay Transportation Authority, Refunding RB:
Senior Series A, 5.25%, 07/01/29		730		931,152
Sub-Series A-2, 5.00%, 07/01/45		2,240		2,531,290
Massachusetts School Building Authority, RB:
Dedicated Sales Tax, Senior Series A, 5.00%, 05/15/43		500		549,825
Series B, 5.00%, 10/15/41		1,000		1,067,320
Massachusetts State College Building Authority, RB, Series A, 5.50%, 05/01/19^(a)		2,500		2,515,725
Massachusetts State College Building Authority, Refunding RB, Series B (Syncora), 5.50%, 05/01/39		825		1,078,225

				10,818,607

Transportation — 25.1%
Commonwealth of Massachusetts, RB, Series A, 5.00%, 06/15/22^(a)		1,000		1,106,520
Commonwealth of Massachusetts, Refunding RB, Series A, 5.00%, 06/01/21^(a)		500		537,045
Massachusetts Department of Transportation, Refunding RB, Senior Series B:
5.00%, 01/01/32		1,120		1,147,608
5.00%, 01/01/37		1,000		1,023,730
Massachusetts Port Authority, RB, AMT:
Series A, 5.00%, 07/01/42		1,000		1,073,330
Series B, 5.00%, 07/01/45		1,750		1,910,440
Metropolitan Boston Transit Parking Corp., Refunding RB, 5.25%, 07/01/36		1,000		1,066,460

				7,865,133


Total Municipal Bonds in Massachusetts				47,462,980


Puerto Rico — 1.6%

State — 0.9%
Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB, Restructured, Series A-1:
4.50%, 07/01/34		3		2,996
4.75%, 07/01/53		75		68,871
5.00%, 07/01/58		223		211,415

				283,282

Tobacco — 0.7%
Children’s Trust Fund, Refunding RB, Tobacco Settlement Asset-Backed Bonds, 5.63%, 05/15/43		215		217,244


Total Municipal Bonds in Puerto Rico				500,526


Total Municipal Bonds — 152.9% (Cost — $45,749,967)				47,963,506


24		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (unaudited) (continued)

February 28, 2019

BlackRock Massachusetts Tax-Exempt Trust (MHE)

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Municipal Bonds Transferred to Tender Option Bond Trusts^(c) — 12.1%

Massachusetts — 12.1%

Education — 7.2%
Massachusetts School Building Authority, RB, Senior Series B, 5.00%, 11/15/46^(d)	$	2,000	$	2,255,680


Health — 1.4%
Massachusetts Development Finance Agency, Refunding RB, Partners Healthcare System, 4.00%, 07/01/35		430		450,032


State — 3.5%
Commonwealth of Massachusetts, GO, Series A, 5.00%, 03/01/46		1,001		1,104,492


Total Municipal Bonds Transferred to Tender Option Bond Trusts — 12.1% (Cost — $3,802,894)				3,810,204


Total Long-Term Investments — 165.0% (Cost — $49,552,861)				51,773,710


Total Investments — 165.0% (Cost — $49,552,861)				51,773,710

Other Assets Less Liabilities — 1.6%				513,922

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (7.9)%				(2,479,406	)

VRDP Shares, at Liquidation Value, Net of Deferred Offering Costs — (58.7)%				(18,429,431	)


Net Assets Applicable to Common Shares — 100.0%			$	31,378,795

^(a)	U.S. Government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par.

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

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

^(d)	All or a portion of security is subject to a recourse agreement. The aggregate maximum potential amount the Trust could ultimately be required to pay under the agreement, which expires on November 15, 2024, is $1,551,389. See Note 4 of the Notes to Financial Statements for details.

During the six months ended February 28, 2019, investments in issuers considered to be an affiliate of the Trust for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:


Affiliate	Shares Held at 08/31/18		Net Activity			Shares Held at 02/28/19		Value at 02/28/19		Income		Net Realized Gain (Loss)^(a)		Change in Unrealized Appreciation (Depreciation)
BlackRock Liquidity Funds, MuniCash, Institutional Class*		427,577		(427,577	)		—	$	—	$	5,202	$	146	$	—

No longer held by the Trust as of period end.

^(a)

Includes net capital gain distributions, if applicable.

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts


Description	Number of Contracts		Expiration Date		Notional Amount (000)		Value/ Unrealized Appreciation (Depreciation)
Short Contracts:
10-Year U.S. Treasury Note		6		06/19/19	$	732	$	3,802
Long U.S. Treasury Bond		14		06/19/19		2,023		23,042
5-Year U.S. Treasury Note		3		06/28/19		344		1,026

							$	27,870


SCHEDULES OF INVESTMENTS			25

Schedule of Investments (unaudited) (continued)

February 28, 2019

BlackRock Massachusetts Tax-Exempt Trust (MHE)

Derivative Financial Instruments Categorized by Risk Exposure

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


	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Currency Exchange Contracts		Interest Rate Contracts		Other Contracts		Total
Assets — Derivative Financial Instruments
Futures Contracts
Net unrealized appreciation^(a)	$	—	$	—	$	—	$	—	$	27,870	$	—	$	27,870

^(a)

Includes cumulative appreciation (depreciation) on futures, contracts if any, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities.

For the six months ended February 28, 2019, the effect of derivative financial instruments in the Statements of Operations was as follows:


	Commodity Contract		Credit Contracts		Equity Contracts		Foreign Currency Exchange Contracts		Interest Rate Contracts			Other Contracts		Total
Net Realized Gain (Loss) from:
Futures contracts	$	—	$	—	$	—	$	—	$	(46,837	)	$	—	$	(46,837	)


Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts	$	—	$	—	$	—	$	—	$	23,838		$	—	$	23,838

Average Quarterly Balances of Outstanding Derivative Financial Instruments


Futures contracts:
Average notional value of contracts — short	$	2,786,684

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

Fair Value Hierarchy as of Period End

The following tables summarize the Trust’s investments and derivative financial instruments categorized in the disclosure hierarchy:


	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Long-Term Investments^(a)	$	—	$	51,773,710	$	—	$	51,773,710

Derivative Financial Instruments^(b)
Assets:
Interest rate contracts	$	27,870	$	—	$	—	$	27,870

^(a)

See above Schedule of Investments for values in each state.

^(b)

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


	Level 1		Level 2			Level 3		Total
Liabilities:
TOB Trust Certificates	$	—	$	(2,465,858	)	$	—	$	(2,465,858	)
VRDP Shares at Liquidation Value		—		(18,500,000	)		—		(18,500,000	)

	$	—	$	(20,965,858	)	$	—	$	(20,965,858	)

During the six months ended February 28, 2019, there were no transfers between levels.

See notes to financial statements.


26		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (unaudited)

February 28, 2019

BlackRock MuniHoldings New York Quality Fund, Inc. (MHN)

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Municipal Bonds — 141.9%

New York — 141.6%

Corporate — 2.5%
City of New York Industrial Development Agency, Refunding RB, Transportation Infrastructure Properties LLC, Series A, AMT, 5.00%, 07/01/28	$	820	$	876,678
New York Liberty Development Corp., Refunding RB, Goldman Sachs Headquarters, 5.25%, 10/01/35		8,445		10,352,641

				11,229,319

County/City/Special District/School District — 25.6%
City of New York, GO, Refunding:
Fiscal 2012, Series I, 5.00%, 08/01/32		490		536,653
Fiscal 2014, Series E, 5.00%, 08/01/32		2,000		2,237,000
Series E, 5.50%, 08/01/25		2,710		3,132,245
Series E, 5.00%, 08/01/30		2,000		2,219,660
City of New York, GO:
Series A-1, 5.00%, 08/01/35		2,350		2,511,610
Sub-Series D-1, 5.00%, 10/01/33		4,175		4,487,875
Sub-Series D-1, Fiscal 2014, 5.00%, 08/01/31		945		1,058,249
Sub-Series F-1, 5.00%, 04/01/43		4,550		5,175,307
City of New York Convention Center Development Corp., RB, CAB, Sub Lien, Hotel Unit Fee, Series B (AGM)^(a):
0.00%, 11/15/55		2,485		546,153
0.00%, 11/15/56		3,765		789,257
City of New York Convention Center Development Corp., Refunding RB, Hotel Unit Fee Secured:
5.00%, 11/15/40		6,150		6,951,160
5.00%, 11/15/45		12,215		13,679,701
City of New York Industrial Development Agency, RB, PILOT:
CAB, Yankee Stadium Project, Series A (AGC), 0.00%, 03/01/39^(a)		1,380		633,351
Queens Baseball Stadium (AGC), 6.38%, 01/01/39		800		802,656
Queens Baseball Stadium (AMBAC), 5.00%, 01/01/31		3,500		3,509,520
Queens Baseball Stadium (AMBAC), 5.00%, 01/01/36		6,150		6,166,113
Yankee Stadium Project (NPFGC), 5.00%, 03/01/36		2,200		2,204,070
Yankee Stadium Project (NPFGC), 5.00%, 03/01/46		9,500		9,544,080
City of New York Transitional Finance Authority Future Tax Secured, RB:
Future Tax Secured, Sub-Series A-3, 4.00%, 08/01/43		2,790		2,889,659
Future Tax Secured, Sub-Series E-1, 5.00%, 02/01/39		2,730		3,097,403
Future Tax Secured, Sub-Series E-1, 5.00%, 02/01/43		2,510		2,820,437
Series A-2, 5.00%, 08/01/38		3,440		3,935,050
Sub-Series B-1, 5.00%, 11/01/35		2,100		2,368,548
County of Nassau New York, GO, Series A, 5.00%, 01/15/31		1,400		1,612,898
County of Nassau New York, GO, Refunding, Series C, 5.00%, 10/01/31		1,980		2,293,513
County of Nassau New York, GOL, General Improvement Bonds, Series B (AGM), 5.00%, 07/01/45		1,815		2,051,966
Hudson Yards Infrastructure Corp., Refunding RB, Series A:
5.00%, 02/15/39		2,285		2,591,784
5.00%, 02/15/42		5,975		6,738,366
4.00%, 02/15/44		1,155		1,196,788
New York Convention Center Development Corp., RB, Hotel Unit Fee Secured, Series B^(a):
0.00%, 11/15/42		2,185		814,087
0.00%, 11/15/47		5,600		1,652,280
0.00%, 11/15/48		2,665		751,050
Subordinate Lien, 0.00%, 11/15/32		565		348,848


Security	Par (000)		Value

County/City/Special District/School District (continued)
New York Liberty Development Corp., Refunding RB, World Trade Center Project:
4, 5.00%, 11/15/31	$	1,710	$	1,837,925
4, 5.00%, 11/15/44		4,000		4,262,360
7 Class 1, 4.00%, 09/15/35		885		923,940
7 Class 2, 5.00%, 09/15/43		3,430		3,685,638
5.75%, 11/15/51		1,755		1,917,215

				113,974,415

Education — 24.0%
Albany Capital Resource Corp., Refunding RB, Albany College of Pharmacy and Health Sciences, Series A:
5.00%, 12/01/30		250		277,470
5.00%, 12/01/32		100		109,676
Amherst Development Corp., Refunding RB, University at Buffalo Foundation Faculty-Student Housing Corp., Series A (AGM), 4.63%, 10/01/20^(b)		4,975		5,211,263
Build NYC Resource Corp., Refunding RB:
City University Queens College, Series A, 5.00%, 06/01/43		450		500,769
Manhattan College Project, 4.00%, 08/01/42		525		533,558
Manhattan College Project, 5.00%, 08/01/47		505		562,651
City of Albany New York Capital Resource Corp., Refunding RB, Albany College of Pharmacy and Health Sciences, Series A, 4.00%, 12/01/34		110		112,252
City of New York Trust for Cultural Resources, Refunding RB, Series A:
American Museum of Natural History, 5.00%, 07/01/37		1,775		2,014,465
American Museum of Natural History, 5.00%, 07/01/41		750		845,167
Carnegie Hall, 4.75%, 12/01/39		3,150		3,207,487
Wildlife Conservation Society, 5.00%, 08/01/42		2,840		3,142,488
City of New York Trust for Cultural Resources, Refunding RB, Carnegie Hall, Series A, 5.00%, 12/01/39		1,850		1,890,052
City of Troy New York Capital Resource Corp., Refunding RB, Rensselaer Polytechnic Institute Project, Series A, 5.13%, 09/01/40		5,535		5,767,415
Counties of Buffalo & Erie New York Industrial Development Agency, RB, City School District of Buffalo Project, Series A, 5.25%, 05/01/31		1,000		1,073,230
Counties of Buffalo & Erie New York Industrial Development Agency, Refunding RB, City School District of Buffalo Project, 5.00%, 05/01/28		1,685		2,002,488
Counties of Buffalo & Erie New York Industrial Land Development Corp., Refunding RB, Buffalo State College Foundation Housing Corp. Project, Series A, 5.38%, 10/01/41		1,000		1,067,100
County of Dutchess New York Local Development Corp., RB, Marist College Project:
5.00%, 07/01/43		570		649,469
5.00%, 07/01/48		855		971,827
County of Dutchess New York Local Development Corp., Refunding RB, Vassar College Project:
5.00%, 07/01/42		985		1,118,320
4.00%, 07/01/46		1,865		1,923,356
County of Madison New York Capital Resource Corp., RB, Colgate University Project, Series B:
5.00%, 07/01/40		685		773,577
5.00%, 07/01/43		2,480		2,794,538
County of Monroe New York Industrial Development Corp., Refunding RB, University of Rochester Project, Series A:
5.00%, 07/01/23^(b)		1,240		1,416,030
4.00%, 07/01/39		350		362,485


SCHEDULES OF INVESTMENTS			27

Schedule of Investments (unaudited) (continued)

February 28, 2019

BlackRock MuniHoldings New York Quality Fund, Inc. (MHN)

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Education (continued)
County of Onondaga New York, RB, Syracuse University Project:
5.00%, 12/01/29	$	1,135	$	1,227,877
5.00%, 12/01/36		1,100		1,184,810
County of Orange New York Funding Corp., Refunding RB, Mount St. Mary College Project, Series A:
5.00%, 07/01/37		715		747,125
5.00%, 07/01/42		445		462,084
County of St. Lawrence New York Industrial Development Agency, RB, Clarkson University Project:
6.00%, 09/01/34		300		326,364
5.38%, 09/01/41		125		133,384
County of Tompkins New York Development Corp., RB, Ithaca College Project (AGM)^(b):
5.25%, 01/01/21		700		745,626
5.50%, 01/01/21		500		534,830
County of Tompkins New York Industrial Development Agency, RB, Civic Facility Cornell University Project, Series A, 5.00%, 07/01/37		500		519,805
Dobbs Ferry Local Development Corp., RB, Mercy College Project, 5.00%, 07/01/39		750		828,983
State of New York Dormitory Authority, RB:
Convent of the Sacred Heart (AGM), 5.75%, 11/01/40		1,770		1,906,927
Fordham University, Series A, 5.00%, 07/01/21^(b)		175		188,815
Fordham University, Series A, 5.50%, 07/01/21^(b)		1,375		1,499,190
New School (AGM), 5.50%, 07/01/20^(b)		3,265		3,432,984
New York University Mount Sinai School of Medicine, 5.13%, 07/01/19^(b)		1,000		1,011,480
New York University, Series 1 (AMBAC), 5.50%, 07/01/40		3,500		4,536,875
New York University, Series B, 5.00%, 07/01/19^(b)		400		404,496
New York University, Series B, 5.00%, 07/01/42		3,000		3,271,950
Siena College, 5.13%, 07/01/19^(b)		1,345		1,360,669
State University Dormitory Facilities, Series A, 5.00%, 07/01/35		750		780,015
State University Dormitory Facilities, Series A, 5.00%, 07/01/40		1,500		1,556,010
State University Dormitory Facilities, Series A, 5.00%, 07/01/41		1,500		1,597,575
State of New York Dormitory Authority, Refunding RB:
3rd General Resolution, State University Educational Facilities Issue, Series A, 5.00%, 05/15/29		1,000		1,094,820
Barnard College, Series A, 5.00%, 07/01/34		900		1,033,263
Barnard College, Series A, 4.00%, 07/01/37		510		528,916
Barnard College, Series A, 5.00%, 07/01/43		1,520		1,718,436
Cornell University, Series A, 5.00%, 07/01/40		1,000		1,039,210
Fordham University, 5.00%, 07/01/44		1,900		2,091,197
Icahn School of Medicine at Mount Sinai, Series A, 5.00%, 07/01/35		1,030		1,154,300
New York University, Series A, 5.00%, 07/01/31		3,000		3,295,260
New York University, Series A, 5.00%, 07/01/37		4,180		4,570,161
Rochester Institute of Technology, 5.00%, 07/01/42		750		808,470
Series E, 5.25%, 03/15/33		2,250		2,620,755
St. John’s University, Series A, 5.00%, 07/01/37		2,005		2,267,996
State University Dormitory Facilities, Series A, 5.25%, 07/01/31		4,755		5,379,094
State University Dormitory Facilities, Series A, 5.25%, 07/01/32		6,435		7,273,867
State University Dormitory Facilities, Series A, 5.00%, 07/01/42		1,490		1,615,085
State University Dormitory Facilities, Series A, 5.00%, 07/01/46		1,540		1,737,305
State University Dormitory Facilities, Series B, 5.00%, 07/01/33		860		984,089


Security	Par (000)		Value

Education (continued)
Town of Hempstead New York Local Development Corp., Refunding RB, Hofstra University Project, 5.00%, 07/01/47	$	1,030	$	1,153,765

				106,950,996

Health — 9.5%
City of New York Health & Hospital Corp., Refunding RB, Health System, Series A, 5.00%, 02/15/30		1,800		1,850,058
County of Dutchess New York Industrial Development Agency, RB, Vassar Brothers Medical Center (AGC), 5.50%, 04/01/34		500		527,085
County of Dutchess New York Local Development Corp., RB, Health Quest Systems, Inc., Series B, 4.00%, 07/01/41		4,950		4,968,612
County of Monroe New York Industrial Development Corp., RB, Rochester General Hospital Project:
4.00%, 12/01/41		500		502,885
5.00%, 12/01/46		800		876,336
Series A, 5.00%, 12/01/37		1,180		1,275,179
County of Monroe New York Industrial Development Corp., Refunding RB, Unity Hospital of Rochester Project (FHA), 5.50%, 08/15/40		5,925		6,325,707
County of Suffolk New York EDC, RB, Catholic Health Services, Series C, 5.00%, 07/01/32		460		500,011
County of Westchester New York Healthcare Corp., Refunding RB, Senior Lien, Remarketing, Series A, 5.00%, 11/01/30		1,340		1,407,603
State of New York Dormitory Authority, RB:
New York University Hospitals Center, Series A, 5.75%, 07/01/20^(b)		2,680		2,826,623
New York University Hospitals Center, Series A, 6.00%, 07/01/20^(b)		1,800		1,904,364
North Shore-Long Island Jewish Obligated Group, Series A, 5.50%, 05/01/19^(b)		1,825		1,836,516
North Shore-Long Island Jewish Obligated Group, Series C, 4.25%, 05/01/39		1,000		1,040,390
North Shore-Long Island Jewish Obligated Group, Series D, 4.25%, 05/01/39		685		712,667
State of New York Dormitory Authority, Refunding RB:
Memorial Sloan-Kettering Cancer Center, Series 1, 5.00%, 07/01/42		2,200		2,490,884
North Shore-Long Island Jewish Obligated Group, Series A, 5.00%, 05/01/21^(b)		2,000		2,144,540
North Shore-Long Island Jewish Obligated Group, Series A, 5.25%, 05/01/21^(b)		7,375		7,946,931
North Shore-Long Island Jewish Obligated Group, Series A, 5.00%, 05/01/32		2,645		2,973,694

				42,110,085

Housing — 5.9%
City of New York Housing Development Corp., RB, M/F Housing, Fund Grant Program, New York City Housing Authority Program, Series B1:
5.25%, 07/01/32		6,505		7,165,908
5.00%, 07/01/33		1,375		1,496,096
City of New York Housing Development Corp., Refunding RB, M/F Housing, 8 Spruce Street, Class F, 4.50%, 02/15/48		1,075		1,114,055
City of Yonkers New York Industrial Development Agency, RB, Monastery Manor Associates LP Project, Series A, AMT (SONYMA), 5.25%, 04/01/37		2,000		2,005,240
State of New York HFA, RB, M/F:
Affordable Housing, Series B (Ginnie Mae, Fannie Mae & Freddie Mac), 4.00%, 11/01/42		845		854,481
Green Bonds, Series H, 4.15%, 11/01/43		1,375		1,436,930
Green Bonds, Series H, 4.20%, 11/01/48		905		941,761
St. Philip’s Housing, Series A, Housing, AMT, 4.65%, 11/15/38		1,000		1,014,620


28		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (unaudited) (continued)

February 28, 2019

BlackRock MuniHoldings New York Quality Fund, Inc. (MHN)

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Housing (continued)
State of New York HFA, Refunding RB, Series C (Fannie Mae) (SONYMA), 3.85%, 11/01/39^(c)	$	2,270	$	2,274,563
State of New York Mortgage Agency, Refunding RB:
S/F Housing, Series 194, AMT, 3.80%, 04/01/28		3,140		3,230,620
S/F, Series 213, 4.20%, 10/01/43		1,910		1,965,657
Series 190, 3.80%, 10/01/40		2,880		2,890,973

				26,390,904

State — 17.9%
City of New York Transitional Finance Authority, BARB, Series S-3, 5.25%, 07/15/36		1,600		1,906,720
City of New York Transitional Finance Authority Building Aid Revenue, Refunding RB, Series S-3, 4.00%, 07/15/38		5,045		5,304,616
City of New York Transitional Finance Authority Future Tax Secured, RB:
Fiscal 2014, Sub-Series A-1, 5.00%, 11/01/38		950		1,059,487
Fiscal 2014, Sub-Series B-1, 5.00%, 11/01/36		1,690		1,902,619
Fiscal 2016, Sub-Series B-1, 5.00%, 11/01/38		1,455		1,648,486
Future Tax Secured Subordinate Bonds, SubSeries A-1, 5.00%, 08/01/40		860		989,327
Future Tax Secured, Sub-Series F-1, 5.00%, 05/01/42		8,825		9,961,042
Metropolitan Transportation Authority, Refunding RB:
Dedicated Tax Fund, Series B, 5.00%, 11/15/19^(b)		2,500		2,560,225
Dedicated Tax Fund, Sub-Series B-1, 5.00%, 11/15/31		4,000		4,509,720
Green Bond, Climate Bond Certified, Sub-Series B-3 (AGM), 4.00%, 11/15/46		855		881,573
Green Bond, Series A1, 5.00%, 11/15/37		1,500		1,681,470
Sales Tax Asset Receivable Corp., Refunding RB, Fiscal 2015, Series A, 4.00%, 10/15/32		2,070		2,255,845
State of New York Dormitory Authority, RB:
Bid Group 2, Series A, 5.00%, 03/15/38		2,725		3,111,541
General Purpose, Series A, 5.00%, 02/15/36		4,500		4,970,025
General Purpose, Series B, 5.00%, 03/15/37		3,000		3,238,200
General Purpose, Series B, 5.00%, 03/15/42		4,600		4,955,442
Group B, State Sales Tax, Series A, 5.00%, 03/15/39		1,465		1,667,595
Group C, Sales Tax, Series A, 5.00%, 03/15/41		7,125		8,064,075
Master BOCES Program Lease (AGC), 5.00%, 08/15/19^(b)		250		253,905
Series A, 5.00%, 03/15/36		1,180		1,353,755
Series A, 5.00%, 02/15/42		7,500		8,436,450
Series B, 5.00%, 03/15/37		1,500		1,700,535
State Personal Income Tax, Series A, 5.00%, 02/15/43		495		543,555
State of New York Dormitory Authority, Refunding RB:
Group 3, Series E, 5.00%, 03/15/41		2,800		3,225,852
Series C, 5.00%, 03/15/38		1,000		1,157,260
State of New York Urban Development Corp., RB, State Personal Income Tax, Series C, 5.00%, 03/15/32		2,000		2,223,480

				79,562,800

Tobacco — 2.4%
Counties of New York Tobacco Trust VI, Refunding RB, Tobacco Settlement Pass-Through:
Series A, 5.00%, 06/01/41		400		421,564
Series A-2B, 5.00%, 06/01/51		765		775,144
Series B, 5.00%, 06/01/45		2,010		2,047,748
County of Chautauqua New York Tobacco Asset Securitization Corp., Refunding RB, Asset-Backed, 4.75%, 06/01/39		1,875		1,846,106
County of Niagara New York Tobacco Asset Securitization Corp., Refunding RB, Asset-Backed:
5.25%, 05/15/34		1,495		1,578,227
5.25%, 05/15/40		1,500		1,572,045


Security	Par (000)		Value

Tobacco (continued)
Westchester New York Tobacco Asset Securitization, Refunding RB, Tobacco Settlement Bonds, Sub-Series C, 4.00%, 06/01/42	$	2,440	$	2,288,573

				10,529,407

Transportation — 36.9%
Buffalo & Fort Erie Public Bridge Authority, RB:
5.00%, 01/01/47		750		835,170
Toll Bridge System, 5.00%, 01/01/42		1,565		1,748,841
Metropolitan Transportation Authority, RB:
Green Bonds, Series A, 5.00%, 11/15/42		3,500		3,972,535
Series A, 5.00%, 11/15/21^(b)		1,000		1,091,320
Series A, 5.00%, 05/15/23^(b)		3,000		3,415,020
Series A-1, 5.25%, 11/15/23^(b)		1,620		1,887,300
Series A-1, 5.25%, 11/15/23^(b)		1,620		1,887,300
Series B, 5.25%, 11/15/44		1,000		1,113,340
Series D, 5.25%, 11/15/21^(b)		440		483,076
Series E, 5.00%, 11/15/38		8,750		9,521,487
Series E, 5.00%, 11/15/43		1,000		1,085,890
Sub-Series B, 5.00%, 11/15/23^(b)		1,000		1,153,730
Metropolitan Transportation Authority, Refunding RB:
Green Bond, SubSeries B-1, 5.00%, 11/15/51		2,360		2,642,988
Green Bonds, Climate Bond Certified, Sub-Series B-2, 4.00%, 11/15/34		2,500		2,688,250
Green Bonds, Series A-1, 5.25%, 11/15/56		1,830		2,012,799
Green Bonds, Series A-1, 5.25%, 11/15/57		1,505		1,668,097
Series C-1, 5.00%, 11/15/36		1,845		2,060,736
Series D, 5.25%, 11/15/21^(b)		1,560		1,712,724
Series D, 5.00%, 11/15/30		885		967,677
Metropolitan Transportation Authority Hudson Rail Yards Trust Obligations, Refunding RB, Series A, 5.00%, 11/15/56		5,410		5,869,742
New York Liberty Development Corp., RB, World Trade Center Port Authority Consolidated, 5.25%, 12/15/43		11,500		12,492,335
New York Transportation Development Corp., ARB, LaGuardia Airport Terminal B Redevelopment Project, Series A, AMT:
5.00%, 07/01/41		1,805		1,919,202
5.00%, 07/01/46		12,525		13,254,080
5.25%, 01/01/50		965		1,030,533
(AGM), 4.00%, 07/01/41		1,250		1,261,312
Niagara Falls Bridge Commission, Refunding RB, Toll Bridge System, Series A (AGC), 4.00%, 10/01/19		355		359,647
Niagara Frontier Transportation Authority, Refunding ARB, Buffalo Niagara International Airport, AMT:
5.00%, 04/01/34		100		115,163
5.00%, 04/01/35		90		103,106
5.00%, 04/01/36		95		108,318
5.00%, 04/01/37		55		62,395
5.00%, 04/01/38		55		62,097
5.00%, 04/01/39		80		89,986
Port Authority of New York & New Jersey, ARB:
Consolidated, 163rd Series, 5.00%, 07/15/35		2,500		2,603,975
Consolidated, 183rd Series, 4.00%, 06/15/44		1,500		1,540,155
Special Project, JFK International Air Terminal LLC Project, Series 6, AMT (NPFGC), 5.75%, 12/01/22		16,205		16,814,470
Port Authority of New York & New Jersey, Refunding ARB:
178th Series, AMT, 5.00%, 12/01/33		1,000		1,110,800
179th Series, 5.00%, 12/01/38		1,390		1,561,026
Consolidated, 177th Series, AMT, 4.00%, 01/15/43		285		288,095
Consolidated, 178th Series, AMT, 5.00%, 12/01/43		750		819,053
Consolidated, 195th Series, AMT, 5.00%, 04/01/36		1,400		1,583,372
Consolidated, 206th Series, AMT, 5.00%, 11/15/42		2,375		2,653,231
Consolidated, 211th Series, 4.00%, 09/01/43		5,000		5,205,800


SCHEDULES OF INVESTMENTS			29

Schedule of Investments (unaudited) (continued)

February 28, 2019

BlackRock MuniHoldings New York Quality Fund, Inc. (MHN)

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Transportation (continued)
State of New York Thruway Authority, RB, Junior Lien, Series A:
5.00%, 01/01/41	$	1,770	$	1,972,559
5.25%, 01/01/56		1,080		1,204,654
State of New York Thruway Authority, Refunding RB:
General, Series I (AGM), 5.00%, 01/01/37		3,770		4,016,784
General, Series I (AGM), 5.00%, 01/01/42		4,270		4,530,299
General, Series J, 5.00%, 01/01/41		5,000		5,450,300
General, Series K, 5.00%, 01/01/29		1,750		2,009,542
General, Series K, 5.00%, 01/01/31		1,000		1,141,270
Series L, 5.00%, 01/01/33		410		486,104
Series L, 5.00%, 01/01/34		710		837,424
Series L, 5.00%, 01/01/35		810		951,515
Triborough Bridge & Tunnel Authority, RB, Series B:
5.00%, 11/15/40		940		1,063,676
5.00%, 11/15/45		820		924,156
Triborough Bridge & Tunnel Authority, Refunding RB:
General, CAB, Series B, 0.00%, 11/15/32^(a)		7,670		4,845,292
General, Remarketing, Series A, 5.00%, 11/15/36		1,000		1,099,760
General, Series A, 5.00%, 11/15/41		5,000		5,649,350
General, Series A, 5.25%, 11/15/45		1,280		1,468,198
General, Series A, 5.00%, 11/15/50		3,000		3,344,040
MTA Bridge and Tunnels, Series C, 5.00%, 11/15/37		870		1,024,034
Series B, 5.00%, 11/15/38		8,225		9,457,187

				164,332,317

Utilities — 16.9%
City of New York Municipal Water Finance Authority, RB, Water & Sewer System, 2nd General Resolution, Fiscal 2017, Series DD, 5.25%, 06/15/47		3,850		4,422,803
City of New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System, 2nd General Resolution, Fiscal 2015, Series HH, 5.00%, 06/15/39		2,250		2,533,860
City of New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System, 2nd General Resolution:
Fiscal 2010, Series FF, 5.00%, 06/15/31		1,500		1,560,180
Fiscal 2011, Series BB, 5.00%, 06/15/31		1,000		1,040,120
Fiscal 2011, Series GG, 5.00%, 06/15/21^(b)		2,070		2,230,342
City of New York Water & Sewer System, RB, Series DD-1, 4.00%, 06/15/49		1,135		1,171,547
City of New York Water & Sewer System, Refunding RB:
2nd Generation Resolution, Fiscal 2018, Series FF, 5.00%, 06/15/40		2,000		2,311,840
Series EE, 5.00%, 06/15/40		4,290		4,927,451
County of Western Nassau New York Water Authority, RB, Series A, 5.00%, 04/01/40		1,065		1,195,473
Long Island Power Authority, RB:
5.00%, 09/01/37		3,175		3,661,474
5.00%, 09/01/35		1,000		1,167,350
General, 5.00%, 09/01/47		905		1,012,686
General, 5.00%, 09/01/36		825		946,184
General, Electric Systems, 5.00%, 09/01/42		280		314,910
General, Electric Systems, Series A (AGM), 5.00%, 05/01/21^(b)		2,375		2,546,641
Long Island Power Authority, Refunding RB:
Electric System, Series B, 5.00%, 09/01/41		475		531,060
Electric System, Series B, 5.00%, 09/01/46		660		733,749
Electric Systems, Series A (AGC), 5.75%, 04/01/19^(b)		1,000		1,003,180
General, Electric Systems, Series A (AGC), 6.00%, 05/01/19^(b)		1,500		1,510,635


Security	Par (000)		Value

Utilities (continued)
State of New York Environmental Facilities Corp., RB, Series B:
Revolving Funds, Green Bonds, 5.00%, 09/15/40	$	3,170	$	3,582,512
Subordinated SRF Bonds, 5.00%, 06/15/48		1,120		1,286,947
State of New York Environmental Facilities Corp., Refunding RB:
Revolving Funds, New York City Municipal Water, Series B, 5.00%, 06/15/36		3,200		3,412,416
Series A, 5.00%, 06/15/40		1,545		1,755,166
Series A, 5.00%, 06/15/45		7,935		8,965,360
Subordinated SRF Bonds, 4.00%, 06/15/46		1,000		1,034,370
State of New York Power Authority, Refunding RB, Series A, 5.00%, 11/15/38		2,580		2,785,704
Utility Debt Securitization Authority, Refunding RB, Restructuring, Series TE, 5.00%, 12/15/41		15,490		17,336,408

				74,980,368


Total Municipal Bonds in New York				630,060,611


Guam — 0.3%

Utilities — 0.3%
Guam Power Authority, RB, Series A (AGM), 5.00%, 10/01/20^(b)		1,175		1,236,688


Total Municipal Bonds — 141.9% (Cost — $603,843,167)				631,297,299


Municipal Bonds Transferred to Tender Option Bond Trusts^(d)

New York — 23.7%

County/City/Special District/School District — 3.1%
City of New York, GO, Sub-Series I-1, 5.00%, 03/01/36		2,500		2,789,413
City of New York Transitional Finance Authority, RB, Future Tax Secured, Sub-Series D-1, 5.00%, 11/01/38		1,650		1,779,767
Hudson Yards Infrastructure Corp., RB, Senior-Fiscal 2012:
5.75%, 02/15/21^(b)		3,714		3,994,585
5.75%, 02/15/47^(e)		2,285		2,457,347
New York Liberty Development Corp., Refunding RB, 7 World Trade Center Project, Class 1, 5.00%, 09/15/40		2,610		2,825,986

				13,847,098

Education — 2.7%
City of New York Trust for Cultural Resources, Refunding RB, Wildlife Conservation Society, Series A, 5.00%, 08/01/33		1,981		2,208,760
State of New York Dormitory Authority, RB, State University Dormitory Facilities, New York University, Series A:
5.25%, 07/01/19^(b)		5,000		5,061,075
5.00%, 07/01/35		4,448		4,744,125

				12,013,960

Housing — 1.9%
City of New York Housing Development Corp., Refunding RB, Sustainable Neighborhood Bonds, Series A, 4.25%, 11/01/43		3,630		3,734,925
State of New York HFA, RB, M/F Affordable Housing, Green Bond, Climate Bond Certified, Series I, 4.05%, 11/01/48		4,543		4,591,117

				8,326,042

State — 6.8%
Sales Tax Asset Receivable Corp., Refunding RB, Fiscal 2015, Series A:
5.00%, 10/15/31		7,380		8,484,196
4.00%, 10/15/32		6,000		6,537,660
State of New York Dormitory Authority, ERB, Series B, 5.75%, 03/15/19^(b)		5,000		5,006,500


30		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (unaudited) (continued)

February 28, 2019

BlackRock MuniHoldings New York Quality Fund, Inc. (MHN)

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

State (continued)
State of New York Dormitory Authority, RB:
Bid Group 2, Series A, 5.00%, 03/15/32	$	2,000	$	2,385,350
General Purpose, Series C, 5.00%, 03/15/41		2,500		2,641,587
State of New York Dormitory Authority, Refunding RB, Series A, 5.00%, 03/15/40^(e)		2,950		3,400,694
State of New York Urban Development Corp., Refunding RB, State Personal Income Tax, Series A, 5.00%, 03/15/45		1,471		1,642,350

				30,098,337

Transportation — 5.3%
Port Authority of New York & New Jersey, Refunding ARB:
194th Series, 5.25%, 10/15/55		3,405		3,885,559
Consolidated, Series 169th, 5.00%, 10/15/25		8,005		8,590,097
Triborough Bridge & Tunnel Authority, Refunding RB, General, Series A, 5.00%, 11/15/46		10,000		11,219,100

				23,694,756

Utilities — 3.9%
City of New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System, 2nd General Resolution, Fiscal 2011, Series HH, 5.00%, 06/15/32		7,151		7,617,440
City of New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System, 2nd General Resolution, Series FF-2, 5.50%, 06/15/40		2,400		2,425,056
City of New York Water & Sewer System, Refunding RB, 2nd General Resolution, Fiscal 2018, 5.00%, 06/15/38^(e)		1,151		1,321,474
Utility Debt Securitization Authority, Refunding RB, Restructuring:
Series A, 5.00%, 12/15/35		3,000		3,463,215
Series B, 4.00%, 12/15/35		2,600		2,770,807

				17,597,992


Total Municipal Bonds Transferred to Tender Option Bond Trusts — 23.7% (Cost — $102,986,422)				105,578,185


Total Long-Term Investments — 165.6% (Cost — $706,829,589)				736,875,484


	Shares		Value

Short-Term Securities — 0.5%
BlackRock Liquidity Funds New York Money Fund Portfolio, 1.53%^(f)(g)		2,334,849	$	2,334,849


Total Short-Term Securities — 0.5% (Cost — $2,334,849)				2,334,849


Total Investments — 166.1% (Cost — $709,164,438)				739,210,333

Other Assets Less Liabilities — 1.2%				5,056,608

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (12.6)%				(55,946,198	)

VRDP Shares at Liquidation Value, Net of Deferred Offering Costs — (54.7)%				(243,254,940	)


Net Assets Applicable to Common Shares — 100.0%			$	445,065,803

^(a)	Zero-coupon bond.

^(b)	U.S. Government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par.

^(c)	When-issued security.

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

^(e)

All or a portion of security is subject to a recourse agreement. The aggregate maximum potential amount the Trust could ultimately be required to pay under the agreements, which expire between August 15, 2020 to September 15, 2026, is $5,827,650. See Note 4 of the Notes to Financial Statements for details.

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

^(g)	During the six months ended February 28, 2019, investments in issuers considered to be affiliate of the Trust for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:


Affiliate	Shares Held at 08/31/18		Net Activity			Shares Held at 02/28/19		Value at 02/28/19		Income		Net Realized Gain (Loss)^(a)		Change in Unrealized Appreciation (Depreciation)
BlackRock Liquidity Funds New York Money Fund Portfolio		—		2,334,849			2,334,849	$	2,334,849	$	11,748	$	—	$	—
BlackRock Liquidity Funds, MuniCash, Institutional Class*		2,683,498		(2,683,498	)		—		—		4,507		49		(49	)

								$	2,334,849	$	16,255	$	49	$	(49	)

No longer held by the Trust as of period end.

^(a)

Includes net capital gain distributions, if applicable.


SCHEDULES OF INVESTMENTS			31

Schedule of Investments (unaudited) (continued)

February 28, 2019

BlackRock MuniHoldings New York Quality Fund, Inc. (MHN)

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts


Description	Number of Contracts		Expiration Date		Notional Amount (000)		Value/ Unrealized Appreciation (Depreciation)
Short Contracts:
10-Year U.S. Treasury Note		82		06/19/19	$	10,004	$	52,097
Long U.S. Treasury Bond		211		06/19/19		30,483		347,277
5-Year U.S. Treasury Note		64		06/28/19		7,332		21,900

							$	421,274

Derivative Financial Instruments Categorized by Risk Exposure

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


	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Currency Exchange Contracts		Interest Rate Contracts		Other Contracts		Total
Assets — Derivative Financial Instruments
Futures contracts
Net unrealized appreciation^(a)	$	—	$	—	$	—	$	—	$	421,274	$	—	$	421,274

^(a)

For the six months ended February 28, 2019, the effect of derivative financial instruments in the Statements of Operations was as follows:


	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Currency Exchange Contracts		Interest Rate Contracts			Other Contracts		Total
Net Realized Gain (Loss) from:
Futures contracts	$	—	$	—	$	—	$	—	$	(951,147	)	$	—	$	(951,147	)


Net Change in Unrealized Appreciation on:
Futures contracts	$	—	$	—	$	—	$	—	$	371,123		$	—	$	371,123

Average Quarterly Balances of Outstanding Derivative Financial Instruments


Futures contracts:
Average notional value of contracts — short	$	42,921,262

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

Fair Value Hierarchy as of Period End

The following tables summarize the Trust’s investments and derivative financial instruments categorized in the disclosure hierarchy:


	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Long-Term Investments^(a)	$	—	$	736,875,484	$	—	$	736,875,484
Short-Term Securities		2,334,849		—		—		2,334,849

	$	2,334,849	$	736,875,484	$	—	$	739,210,333


32		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (unaudited) (continued)

February 28, 2019

BlackRock MuniHoldings New York Quality Fund, Inc. (MHN)

Fair Value Hierarchy as of Period End (continued)


	Level 1		Level 2		Level 3		Total
Derivative Financial Instruments^(b)
Assets:
Interest rate contracts	$	421,274	$	—	$	—	$	421,274

^(a)

See above Schedule of Investments for values in each sector.

^(b)

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


	Level 1		Level 2			Level 3		Total
Liabilities:
TOB Trust Certificates	$	—	$	(55,694,616	)	$	—	$	(55,694,616	)
VRDP Shares at Liquidation Value		—		(243,600,000	)		—		(243,600,000	)

	$	—	$	(299,294,616	)	$	—	$	(299,294,616	)

During the six months ended February 28, 2019, there were no transfers between levels.

See notes to financial statements.


SCHEDULES OF INVESTMENTS			33

Schedule of Investments (unaudited)

February 28, 2019

BlackRock New York Municipal Bond Trust (BQH)

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Municipal Bonds — 133.9%

New York — 132.5%

Corporate — 4.8%
Build NYC Resource Corp., Refunding RB, Pratt Paper, Inc. Project, AMT, 5.00%, 01/01/35^(a)	$	100	$	106,289
City of New York Industrial Development Agency, Refunding RB, Transportation Infrastructure Properties LLC, Series A, AMT, 5.00%, 07/01/28		690		737,693
New York Liberty Development Corp., Refunding RB, Goldman Sachs Headquarters, 5.25%, 10/01/35		475		582,298
Niagara Area Development Corp., Refunding RB, Covanta Project, Series A, AMT, 4.75%, 11/01/42^(a)		640		632,787

				2,059,067

County/City/Special District/School District — 31.6%
City of New York, GO, Refunding, Series E, 5.50%, 08/01/25		150		173,372
City of New York, GO:
Series D, 5.38%, 06/01/32		15		15,042
Series G-1, 6.25%, 12/15/31		5		5,018
Sub-Series D-1, Fiscal 2014, 5.00%, 08/01/31		245		274,361
Sub-Series I-1, 5.38%, 04/01/19^(b)		115		115,338
Sub-Series I-1, 5.38%, 04/01/36		20		20,053
City of New York Convention Center Development Corp., RB, CAB, Sub Lien, Hotel Unit Fee, Series B (AGM), 0.00%, 11/15/55^(c)		500		109,890
City of New York Convention Center Development Corp., Refunding RB, Hotel Unit Fee Secured:
5.00%, 11/15/40		1,110		1,254,600
5.00%, 11/15/45		670		750,340
City of New York Industrial Development Agency, RB, PILOT:
CAB, Yankee Stadium Project, Series A (AGC), 0.00%, 03/01/42^(c)		500		196,230
CAB, Yankee Stadium Project, Series A (AGC), 0.00%, 03/01/45^(c)		950		321,527
(AMBAC), 5.00%, 01/01/39		325		329,105
Queens Baseball Stadium (AGC), 6.38%, 01/01/39		100		100,332
Queens Baseball Stadium (AMBAC), 5.00%, 01/01/46		175		177,364
Yankee Stadium Project (NPFGC), 5.00%, 03/01/46		175		175,812
City of New York New York, GO, Sub-Series G-1, 5.00%, 04/01/29		250		272,535
City of New York New York Industrial Development Agency, RB, CAB, PILOT, Yankee Stadium Project, Series A (AGC)^(c):
0.00%, 03/01/41		4,155		1,716,804
0.00%, 03/01/43		2,000		746,840
City of New York Transitional Finance Authority Future Tax Secured, RB:
Future Tax Secured, Sub-Series A-3, 4.00%, 08/01/43		265		274,466
Future Tax Secured, Sub-Series E-1, 5.00%, 02/01/39		255		289,318
Series A-2, 5.00%, 08/01/38		110		125,830
Sub-Series B-1, 5.00%, 11/01/35		200		225,576
Hudson Yards Infrastructure Corp., Refunding RB, Series A:
5.00%, 02/15/39		275		311,922
5.00%, 02/15/42		255		287,579
Metropolitan Transportation Authority Hudson Rail Yards Trust Obligations, Refunding RB, Series A, 5.00%, 11/15/56		450		488,241
New York Liberty Development Corp., Refunding RB:
2nd Priority, Bank of America Tower at One Bryant Park Project, Class 2, 5.63%, 07/15/47		1,350		1,393,794
2nd Priority, Bank of America Tower at One Bryant Park Project, Class 3, 6.38%, 07/15/49		285		295,343
3 World Trade Center Project, Class 1, 5.00%, 11/15/44^(a)		415		432,069
3 World Trade Center Project, Class 2, 5.38%, 11/15/40^(a)		120		127,070


Security	Par (000)		Value

County/City/Special District/School District (continued)
4 World Trade Center Project, 5.00%, 11/15/31	$	750	$	806,107
7 World Trade Center Project, Class 1, 4.00%, 09/15/35		320		334,080
7 World Trade Center Project, Class 2, 5.00%, 09/15/43		500		537,265
7 World Trade Center Project, Class 3, 5.00%, 03/15/44		520		554,320
World Trade Center Project, 5.75%, 11/15/51		340		371,426

				13,608,969

Education — 32.7%
Amherst Development Corp., Refunding RB:
Daemen College Project, 5.00%, 10/01/43		85		90,936
Daemen College Project, 5.00%, 10/01/48		65		69,274
University at Buffalo Foundation Faculty-Student Housing Corp., Series A (AGM), 4.63%, 10/01/20^(b)		140		146,649
Build NYC Resource Corp., RB^(a):
Inwood Academy for Leadership Charter School Project, Series A, 5.50%, 05/01/48^(a)		150		154,005
New Dawn Charter School Project, 5.75%, 02/01/49		145		145,729
Build NYC Resource Corp., Refunding RB:
City University New York-Queens College Student Residences, LLC Project, Series A, 5.00%, 06/01/38		250		281,197
Ethical Culture Fieldston School Project, 5.00%, 06/01/32		450		513,153
Packer Collegiate Institute Project, 5.00%, 06/01/40		310		346,673
City of New York Trust for Cultural Resources, Refunding RB, Series A:
American Museum of Natural History, 5.00%, 07/01/37		110		124,840
Carnegie Hall, 4.75%, 12/01/39		400		407,300
City of Troy New York Capital Resource Corp., Refunding RB, Rensselaer Polytechnic Institute Project:
Series A, 5.13%, 09/01/40		610		635,614
Series B, 4.00%, 08/01/35		110		114,517
City of Yonkers New York Industrial Development Agency, RB, Sarah Lawrence College Project, Series A, 6.00%, 06/01/19^(b)		250		252,665
Counties of Buffalo & Erie New York Industrial Land Development Corp., Refunding RB, The Charter School for Applied Technologies Project, Series A, 5.00%, 06/01/35		55		58,969
County of Cattaraugus New York, RB, St. Bonaventure University Project, 5.00%, 05/01/39		60		64,354
County of Dutchess New York Local Development Corp., RB, Marist College Project:
5.00%, 07/01/43		55		62,668
5.00%, 07/01/48		80		90,931
County of Dutchess New York Local Development Corp., Refunding RB, Vassar College Project:
5.00%, 07/01/42		100		113,535
4.00%, 07/01/46		185		190,789
County of Monroe New York Industrial Development Corp., RB, University of Rochester Project^(b):
5.00%, 07/01/21		110		118,422
5.00%, 07/01/21		390		420,787
Series A, 5.00%, 07/01/21		500		539,470
County of Monroe New York Industrial Development Corp., Refunding RB, University of Rochester Project, Series A, 5.00%, 07/01/23^(b)		120		137,035
County of Nassau New York Industrial Development Agency, Refunding RB, New York Institute of Technology Project, Series A, 4.75%, 03/01/20^(b)		200		206,074
County of Tompkins New York Development Corp., RB, Ithaca College Project (AGM), 5.50%, 01/01/21^(b)		100		106,966
Geneva Development Corp., Refunding RB, Hobart & William Smith Colleges, 5.25%, 09/01/44		160		179,078
State of New York Dormitory Authority, RB:
Convent of the Sacred Heart (AGM), 5.75%, 11/01/40		300		323,208
New York University, Series 1 (AMBAC) (BHAC), 5.50%, 07/01/31		245		303,626
New York University, Series B, 5.00%, 07/01/42		500		545,325


34		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (unaudited) (continued)

February 28, 2019

BlackRock New York Municipal Bond Trust (BQH)

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Education (continued)
State University Dormitory Facilities, Series A, 5.00%, 07/01/19^(b)	$	150	$	151,686
Teachers College, Series B, 5.00%, 07/01/42		750		810,960
Touro College & University System, Series A, 5.25%, 01/01/34		250		270,695
Touro College & University System, Series A, 5.50%, 01/01/39		500		541,100
University of Rochester, Series A, 5.13%, 07/01/19^(b)		185		187,155
University of Rochester, Series A, 5.75%, 07/01/19^(b)		150		152,049
University of Rochester, Series A, 5.13%, 07/01/39		30		30,317
University of Rochester, Series A, 5.75%, 07/01/39		25		25,327
State of New York Dormitory Authority, Refunding RB:
Brooklyn Law School, 5.75%, 07/01/33		125		126,316
Cornell University, Series A, 5.00%, 07/01/40		150		155,882
Fordham University, 5.00%, 07/01/44		340		374,214
Icahn School of Medicine at Mount Sinai, Series A, 5.00%, 07/01/35		345		386,635
New York University, Series A, 5.00%, 07/01/37		445		486,536
New York University, Series A, 5.00%, 07/01/42		1,750		1,908,637
Series B, 5.00%, 02/15/37		370		425,900
Skidmore College, Series A, 5.00%, 07/01/28		250		266,967
State University Dormitory Facilities, Series A, 5.25%, 07/01/30		350		396,245
State University Dormitory Facilities, Series A, 5.25%, 07/01/32		350		395,626
Town of Hempstead New York Local Development Corp., Refunding RB:
Adelphi University Project, 5.00%, 10/01/34		105		118,461
Hofstra University Project, 5.00%, 07/01/47		100		112,016

				14,066,513

Health — 14.8%
Counties of Buffalo & Erie New York Industrial Land Development Corp., RB, Catholic Health System Obligation, 5.25%, 07/01/35		500		555,995
County of Dutchess New York Local Development Corp., RB, Health Quest Systems, Inc., Series B, 4.00%, 07/01/41		100		100,376
County of Dutchess New York Local Development Corp., Refunding RB, Health Quest System, Inc., Series A (AGM), 5.75%, 07/01/30		350		370,604
County of Genesee New York Industrial Development Agency, Refunding RB, United Memorial Medical Center Project, 5.00%, 12/01/27		120		120,085
County of Monroe New York Industrial Development Corp., RB, Rochester General Hospital Project:
4.00%, 12/01/41		100		100,577
5.00%, 12/01/46		160		175,267
Series A, 5.00%, 12/01/37		370		399,844
County of Monroe New York Industrial Development Corp., Refunding RB, Unity Hospital of Rochester Project (FHA), 5.50%, 08/15/40		275		293,598
County of Suffolk New York EDC, RB, Catholic Health Services, Series C, 5.00%, 07/01/32		80		86,958
County of Westchester New York Healthcare Corp., Refunding RB, Senior Lien:
Remarketing, Series A, 5.00%, 11/01/30		1,030		1,081,963
Series B, 6.00%, 11/01/20^(b)		175		187,518
Series B, 6.00%, 11/01/30		25		26,547
County of Westchester New York Local Development Corp., Refunding RB, Kendal On Hudson Project, 5.00%, 01/01/34		500		523,865
State of New York Dormitory Authority, RB^(b):
New York State Association for Retarded Children, Inc., Series B (AMBAC), 6.00%, 07/01/19		185		187,646


Security	Par (000)		Value

Health (continued)
New York University Hospitals Center, Series A, 5.75%, 07/01/20	$	220	$	232,036
State of New York Dormitory Authority, Refunding RB:
Miriam Osborn Memorial Home Association, 5.00%, 07/01/29		290		292,683
Mount Sinai Hospital, Series A, 5.00%, 07/01/26		315		327,647
North Shore-Long Island Jewish Obligated Group, Series A, 5.00%, 05/01/21^(b)		1,000		1,072,270
North Shore-Long Island Jewish Obligated Group, Series E, 5.50%, 05/01/33		250		251,298

				6,386,777

Housing — 6.5%
City of New York Housing Development Corp., RB, M/F Housing, Fund Grant Program, New York City Housing Authority Program, Series B1:
5.25%, 07/01/32		735		809,676
5.00%, 07/01/33		250		272,017
City of New York Housing Development Corp., Refunding RB, M/F Housing, 8 Spruce Street, Class F, 4.50%, 02/15/48		500		518,165
County of Onondaga New York Trust for Cultural Resources, Refunding RB, Abby Lane Housing Corporation Project, 5.00%, 05/01/40		135		146,729
State of New York HFA, RB:
Affordable Housing, Series E (SONYMA), 4.15%, 11/01/47		165		168,081
M/F Housing, Highland Avenue Senior Apartments, Series A, AMT (SONYMA), 5.00%, 02/15/39		480		481,651
State of New York Mortgage Agency, Refunding RB, S/F, Series 213, 4.20%, 10/01/43		405		416,802

				2,813,121

State — 7.7%
City of New York Transitional Finance Authority Building Aid Revenue, Refunding RB, Series S-3, 4.00%, 07/15/38		1,240		1,303,810
State of New York, GO, Series A, 5.00%, 02/15/39		250		250,620
State of New York Dormitory Authority, RB, Series A:
General Purpose, 5.00%, 02/15/42		500		562,430
Group B, State Sales Tax, 5.00%, 03/15/39		140		159,361
Group C, State Sales Tax, 4.00%, 03/15/45		310		320,270
5.00%, 03/15/36		110		126,198
State of New York Dormitory Authority, Refunding RB, Group 3, Series E, 5.00%, 03/15/41		265		305,304
State of New York Urban Development Corp., RB, State Personal Income Tax, Series C, 5.00%, 03/15/30		250		278,652

				3,306,645

Tobacco — 4.8%
Counties of New York Tobacco Trust IV, Refunding RB, Settlement Pass-Through Turbo, Series A, 6.25%, 06/01/41^(a)		200		205,334
Counties of New York Tobacco Trust VI, Refunding RB:
Settlement Pass-Through Turbo, Series C, 4.00%, 06/01/51		400		339,644
Tobacco Settlement Pass-Through, Series A-2B, 5.00%, 06/01/51		340		344,508
County of Chautauqua New York Tobacco Asset Securitization Corp., Refunding RB, Asset-Backed, 4.75%, 06/01/39		75		73,844
County of Niagara New York Tobacco Asset Securitization Corp., Refunding RB, Asset-Backed, 5.25%, 05/15/40		170		178,165
TSASC, Inc., Refunding RB, Tobacco Settlement Bonds, Series B:
5.00%, 06/01/45		255		245,792
Subordinate, 5.00%, 06/01/48		275		263,555


SCHEDULES OF INVESTMENTS			35

Schedule of Investments (unaudited) (continued)

February 28, 2019

BlackRock New York Municipal Bond Trust (BQH)

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Tobacco (continued)
Westchester New York Tobacco Asset Securitization, Refunding RB, Tobacco Settlement Bonds, Sub-Series C:
4.00%, 06/01/42	$	245	$	229,795
5.13%, 06/01/51		200		201,522

				2,082,159

Transportation — 19.1%
Buffalo & Fort Erie Public Bridge Authority, RB, 5.00%, 01/01/47		120		133,627
County of Albany Airport Authority, Refunding RB, AMT, Series B:
4.00%, 12/15/34		235		242,802
4.00%, 12/15/35		120		123,136
Metropolitan Transportation Authority, RB, Series D, 5.25%, 11/15/21^(b)		220		241,538
Metropolitan Transportation Authority, Refunding RB:
Green Bonds, Climate Bond Certified, Sub-Series B-2, 4.00%, 11/15/34		200		215,060
Series D, 5.25%, 11/15/21^(b)		780		856,362
Series D, 5.25%, 11/15/23^(b)		670		780,550
Series F, 5.00%, 11/15/30		500		546,710
New York Transportation Development Corp., ARB, LaGuardia Airport Terminal B Redevelopment Project, Series A, AMT:
5.00%, 07/01/46		145		153,440
5.25%, 01/01/50		20		21,358
(AGM), 4.00%, 07/01/41		150		151,358
New York Transportation Development Corp., Refunding ARB, American Airlines, Inc., AMT, 5.00%, 08/01/31		690		715,475
Port Authority of New York & New Jersey, ARB, Special Project, JFK International Air Terminal LLC Project, Series 8, 6.00%, 12/01/42		500		528,290
Port Authority of New York & New Jersey, Refunding ARB:
179th Series, 5.00%, 12/01/38		150		168,456
Consolidated, 195th Series, AMT, 5.00%, 04/01/36		250		282,745
Consolidated, 206th Series, AMT, 5.00%, 11/15/42		225		251,359
Port Authority of New York & New Jersey, Refunding RB, 178th Series, AMT, 5.00%, 12/01/32		270		300,556
State of New York Thruway Authority, Refunding RB, General:
2nd Highway & Bridge Trust, Series A, 5.00%, 04/01/32		1,000		1,090,760
Series I (AGM), 5.00%, 01/01/37		440		468,802
Series I (AGM), 5.00%, 01/01/42		140		148,534
Series J, 5.00%, 01/01/41		250		272,515
Triborough Bridge & Tunnel Authority, RB, Series B, 5.00%, 11/15/40		140		158,420
Triborough Bridge & Tunnel Authority, Refunding RB:
General, Series A, 5.25%, 11/15/45		275		315,433
Series B, 5.00%, 11/15/38		50		57,491

				8,224,777

Utilities — 10.5%
City of New York Municipal Water Finance Authority, RB, Water & Sewer System, 2nd General Resolution, Fiscal 2017, Series DD, 5.25%, 06/15/47		120		137,854
City of New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System, 2nd General Resolution, Fiscal 2015, Series HH, 5.00%, 06/15/39		250		281,540
Long Island Power Authority, RB:
5.00%, 09/01/38		625		718,087
General, 5.00%, 09/01/47		110		123,089
General, 5.00%, 09/01/36		80		91,751
General, Electric Systems, Series A (AGM), 5.00%, 05/01/21^(b)		225		241,261
General, Electric Systems, Series C (CIFG), 5.25%, 09/01/29		500		609,560


Security	Par (000)		Value

Utilities (continued)
Long Island Power Authority, Refunding RB, Electric System:
Series A, 5.50%, 04/01/19^(b)	$	100	$	100,299
Series B, 5.00%, 09/01/46		75		83,380
State of New York Environmental Facilities Corp., RB, Subordinated SRF Bonds, Series B, 5.00%, 06/15/48		210		241,303
State of New York Power Authority, Refunding RB, Series A, 5.00%, 11/15/38		600		647,838
Utility Debt Securitization Authority, Refunding RB, Restructuring, Series TE, 5.00%, 12/15/41		1,115		1,247,908

				4,523,870


Total Municipal Bonds in New York				57,071,898


Puerto Rico — 1.4%

State — 0.9%
Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB, Restructured, Series A-1:
4.50%, 07/01/34		4		3,995
4.75%, 07/01/53		105		96,418
5.00%, 07/01/58		312		295,792

				396,205

Tobacco — 0.5%
Children’s Trust Fund, Refunding RB, Tobacco Settlement Asset-Backed Bonds, 5.63%, 05/15/43		225		227,349


Total Municipal Bonds in Puerto Rico				623,554


Total Municipal Bonds — 133.9% (Cost — $53,829,399)				57,695,452


Municipal Bonds Transferred to Tender Option Bond Trusts^(d)

New York — 33.1%

County/City/Special District/School District — 9.8%
City of New York, GO, Sub-Series I-1, 5.00%, 03/01/36		250		278,941
City of New York New York, GO, Sub-Series-D1, Series D, 5.00%, 12/01/43^(e)		1,010		1,156,238
City of New York Transitional Finance Authority, RB, Future Tax Secured, Sub-Series D-1, 5.00%, 11/01/38		825		889,883
Hudson Yards Infrastructure Corp., RB, Senior-Fiscal 2012:
5.75%, 02/15/21^(b)		433		466,035
5.75%, 02/15/47^(e)		267		286,691
New York Liberty Development Corp., Refunding RB, 7 World Trade Center Project, Class 1, 5.00%, 09/15/40		1,050		1,136,891

				4,214,679

Housing — 1.5%
City of New York Housing Development Corp., Refunding RB, Sustainable Neighborhood Bonds, Series A, 4.25%, 11/01/43		640		658,499


State — 4.3%
Sales Tax Asset Receivable Corp., Refunding RB, Fiscal 2015, Series A, 5.00%, 10/15/31		255		293,153
State of New York Urban Development Corp., RB, State Personal Income Tax, General Purpose, Series A, 4.00%, 03/15/47		1,497		1,550,581

				1,843,734

Transportation — 7.9%
New York Liberty Development Corp., ARB, 1 World Trade Center Port Authority Consolidated Bonds, 5.25%, 12/15/43		630		683,409
Port Authority of New York & New Jersey, Refunding ARB:
194th Series, 5.25%, 10/15/55		360		410,808
Consolidated, 210th Series, 5.00%, 09/01/48		960		1,102,310


36		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (unaudited) (continued)

February 28, 2019

BlackRock New York Municipal Bond Trust (BQH)

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Transportation (continued)
State of New York Thruway Authority, Refunding RB, Transportation, Personal Income Tax, Series A, 5.00%, 03/15/31	$	600	$	644,265
Triborough Bridge & Tunnel Authority, Refunding RB, General, Series A, 5.00%, 11/15/46		500		560,955

				3,401,747

Utilities — 9.6%
City of New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System, 2nd General Resolution:
Fiscal 2011, Series HH, 5.00%, 06/15/32		990		1,054,799
Fiscal 2012, Series BB, 5.00%, 06/15/44		1,500		1,608,170
Utility Debt Securitization Authority, Refunding RB, Restructuring:
Series A, 5.00%, 12/15/35		1,000		1,154,405
Series B, 4.00%, 12/15/35		280		298,395

				4,115,769


Total Municipal Bonds Transferred to Tender Option Bond Trusts — 33.1% (Cost — $13,843,394)				14,234,428


Total Long-Term Investments — 167.0% (Cost — $67,672,793)				71,929,880


Security	Shares		Value

Short-Term Securities — 0.9%
BlackRock Liquidity Funds New York Money Fund Portfolio, 1.53%^(f)(g)		371,313	$	371,313


Total Short-Term Securities — 0.9% (Cost — $371,313)				371,313


Total Investments — 167.9% (Cost — $68,044,106)				72,301,193

Other Assets Less Liabilities — 1.5%				665,011

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (18.3)%				(7,890,438	)

VRDP Shares, at Liquidation Value, Net of Deferred Offering Costs — (51.1)%				(22,001,295	)


Net Assets Applicable to Common Shares — 100.0%			$	43,074,471

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

^(b)	U.S. Government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par.

^(c)	Zero-coupon bond.

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

^(e)

All or a portion of security is subject to a recourse agreement. The aggregate maximum potential amount the Trust could ultimately be required to pay under the agreements, which expire between August 15, 2020 to December 1, 2026, is $901,634. See Note 4 of the Notes to Financial Statements for details.

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

^(g)	During the six months ended February 28, 2019, investments in issuers considered to be affiliates of the Trust for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:


Affiliated	Shares Held at 08/31/18		Net Activity			Shares Held at 02/28/19		Value at 02/28/19		Income		Net Realized Gain (Loss)^(a)		Change in Unrealized Appreciation (Depreciation)
BlackRock Liquidity Funds New York Money Fund Portfolio		—		371,313			371,313	$	371,313	$	1,063	$	—	$	—
BlackRock Liquidity Funds, MuniCash, Institutional Class*		343,324		(343,324	)		—		—		720		—		—

								$	371,313	$	1,783	$	—	$	—

No longer held by the Trust as of period end.

^(a)

Includes net capital gain distributions, if applicable.

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts


Description	Number of Contracts		Expiration Date		Notional Amount (000)		Value/ Unrealized Appreciation (Depreciation)
Short Contracts:
10-Year U.S. Treasury Note		5		06/19/19	$	610	$	3,150
Long U.S. Treasury Bond		23		06/19/19		3,323		37,855
5-Year U.S. Treasury Note		7		06/28/19		802		2,395

							$	43,400


SCHEDULES OF INVESTMENTS			37

Schedule of Investments (unaudited) (continued)

February 28, 2019

BlackRock New York Municipal Bond Trust (BQH)

Derivative Financial Instruments Categorized by Risk Exposure

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


	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Currency Exchange Contracts		Interest Rate Contracts		Other Contracts		Total
Assets — Derivative Financial Instruments
Futures contracts
Net unrealized appreciation^(a)	$	—	$	—	$	—	$	—	$	43,400	$	—	$	43,400

^(a)

For the six months ended February 28, 2019, the effect of derivative financial instruments in the Statements of Operations was as follows:


	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Currency Exchange Contracts		Interest Rate Contracts			Other Contracts		Total
Net Realized Gain (Loss) from:
Futures contracts	$	—	$	—	$	—	$	—	$	(86,064	)	$	—	$	(86,064	)


Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts	$	—	$	—	$	—	$	—	$	38,246		$	—	$	38,246

Average Quarterly Balances of Outstanding Derivative Financial Instruments


Futures contracts:
Average notional value of contracts — short	$	4,134,352

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

Fair Value Hierarchy as of Period End

The following tables summarize the Trust’s investments and derivative financial instruments categorized in the disclosure hierarchy:


	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Long-Term Investments^(a)	$	—	$	71,929,880	$	—	$	71,929,880
Short-Term Securities		371,313		—		—		371,313

	$	371,313	$	71,929,880	$	—	$	72,301,193

Derivative Financial Instruments^(b)
Assets:
Interest rate contracts	$	43,400	$	—	$	—	$	43,400

	$	43,400	$	—	$	—	$	43,400

^(a)

See above Schedule of Investments for values in each sector.

^(b)

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


	Level 1		Level 2			Level 3		Total
Liabilities:
TOB Trust Certificates	$	—	$	(7,857,402	)	$	—	$	(7,857,402	)
VRDP Shares at Liquidation Value		—		(22,100,000	)		—		(22,100,000	)

	$	—	$	(29,957,402	)	$	—	$	(29,957,402	)

During the six months ended February 28, 2019, there were no transfers between levels.

See notes to financial statements.


38		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (unaudited) (continued)

February 28, 2019

BlackRock New York Municipal Income Quality Trust (BSE)

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Municipal Bonds — 121.1%

New York — 121.1%

Corporate — 0.5%
New York Liberty Development Corp., Refunding RB, Goldman Sachs Headquarters, 5.25%, 10/01/35	$	355	$	435,191


County/City/Special District/School District — 21.5%
City of New York, GO, Refunding, Series E:
5.50%, 08/01/25		725		837,962
5.00%, 08/01/30		1,000		1,109,830
City of New York, GO:
Series A-1, 5.00%, 08/01/35		200		213,754
Sub-Series D-1, Fiscal 2014, 5.00%, 08/01/31		440		492,730
Sub-Series F-1, 5.00%, 04/01/43		930		1,057,810
City of New York Convention Center Development Corp., RB, CAB, Sub Lien, Hotel Unit Fee, Series B (AGM), 0.00%, 11/15/55^(a)		1,000		219,780
City of New York Convention Center Development Corp., Refunding RB, Hotel Unit Fee Secured:
5.00%, 11/15/40		1,335		1,508,910
5.00%, 11/15/45		1,250		1,399,887
City of New York Industrial Development Agency, RB, PILOT:
CAB, Yankee Stadium Project, Series A (AGC), 0.00%, 03/01/39^(a)		1,000		458,950
Queens Baseball Stadium (AGC), 6.38%, 01/01/39		150		150,498
City of New York Transitional Finance Authority Future Tax Secured, RB:
Future Tax Secured Subordinate Bond, Series C-3, 5.00%, 05/01/41		775		887,290
Future Tax Secured, Sub-Series A-3, 4.00%, 08/01/43		570		590,360
Future Tax Secured, Sub-Series E-1, 5.00%, 02/01/39		555		629,692
Future Tax Secured, Sub-Series E-1, 5.00%, 02/01/43		845		949,510
Series A-2, 5.00%, 08/01/38		930		1,063,836
Sub-Series B-1, 5.00%, 11/01/35		425		479,349
County of Nassau New York, GO, Refunding, Series C, 5.00%, 10/01/31		475		550,212
County of Nassau New York, GOL, General Improvement Bonds, Series B (AGM), 5.00%, 07/01/45		500		565,280
Haverstraw-Stony Point Central School District, GO, Refunding, (AGM), 5.00%, 10/15/36		240		268,219
Hudson Yards Infrastructure Corp., RB, Senior, Fiscal 2012:
5.75%, 02/15/21^(b)		615		664,225
5.75%, 02/15/47		385		412,712
Hudson Yards Infrastructure Corp., Refunding RB, Series A:
5.00%, 02/15/39		595		674,885
5.00%, 02/15/42		745		840,181
New York Liberty Development Corp., Refunding RB, World Trade Center Project:
4, 5.00%, 11/15/31		1,000		1,074,810
4, 5.00%, 11/15/44		1,250		1,331,988
7 Class 1, 4.00%, 09/15/35		1,100		1,148,400
5.75%, 11/15/51		545		595,374

				20,176,434

Education — 33.5%
Build NYC Resource Corp., Refunding RB:
City University New York-Queens College Student Residences, LLC Project, Series A, 5.00%, 06/01/38		250		281,198
Ethical Culture Fieldston School Project, 5.00%, 06/01/33		300		340,806
Ethical Culture Fieldston School Project, 5.00%, 06/01/35		350		396,098
Manhattan College Project, 5.00%, 08/01/47		135		150,412
Packer Collegiate Institute Project, 5.00%, 06/01/40		690		771,627
City of Albany New York Capital Resource Corp., Refunding RB, Albany College of Pharmacy and Health Sciences, Series A:
5.00%, 12/01/33		175		191,634
4.00%, 12/01/34		130		132,661


Security	Par (000)		Value

Education (continued)
City of New York Trust for Cultural Resources, Refunding RB, Series A:
American Museum of Natural History, 5.00%, 07/01/37	$	440	$	499,360
American Museum of Natural History, 5.00%, 07/01/41		500		563,445
Wildlife Conservation Society, 5.00%, 08/01/42		410		453,669
City of Troy New York Capital Resource Corp., Refunding RB, Rensselaer Polytechnic Institute Project:
Series A, 5.13%, 09/01/40		1,645		1,714,074
Series B, 4.00%, 08/01/35		230		239,444
Counties of Buffalo & Erie New York Industrial Development Agency, RB, City School District of Buffalo Project, Series A, 5.25%, 05/01/31		200		214,646
Counties of Buffalo & Erie New York Industrial Development Agency, Refunding RB, City School District of Buffalo Project, 5.00%, 05/01/28		565		671,457
County of Dutchess New York Local Development Corp., RB, Marist College Project:
5.00%, 07/01/43		115		131,033
5.00%, 07/01/48		175		198,912
County of Dutchess New York Local Development Corp., Refunding RB, Vassar College Project:
5.00%, 07/01/42		195		221,393
4.00%, 07/01/46		375		386,734
County of Madison New York Capital Resource Corp., Refunding RB, Colgate University Project, Series A, 4.50%, 07/01/39		1,500		1,586,295
County of Monroe New York Industrial Development Corp., RB, University of Rochester Project, Series A, 5.00%, 07/01/21^(b)		500		539,470
County of Monroe New York Industrial Development Corp., Refunding RB, University of Rochester Project, Series A, 5.00%, 07/01/23^(b)		400		456,784
County of Nassau New York, GO, Refunding, Series C, 5.00%, 10/01/29		500		589,515
County of Orange New York Funding Corp., Refunding RB, Mount St. Mary College Project, Series A:
5.00%, 07/01/37		180		188,087
5.00%, 07/01/42		115		119,415
County of Schenectady New York Capital Resource Corp., Refunding RB, Union College, 5.00%, 07/01/32		500		544,650
County of Tompkins New York Development Corp., RB, Ithaca College Project (AGM), 5.50%, 01/01/21^(b)		250		267,415
County of Tompkins New York Industrial Development Agency, RB, Civic Facility Cornell University Project, Series A, 5.00%, 07/01/37		1,000		1,039,610
Dobbs Ferry Local Development Corp., RB, Mercy College Project:
5.00%, 07/01/39		1,000		1,105,310
5.00%, 07/01/44		500		548,765
State of New York Dormitory Authority, RB:
Convent of the Sacred Heart (AGM), 5.75%, 11/01/40		300		323,208
Education, Series B, 5.75%, 03/15/19^(b)		600		600,780
Fordham University, Series A, 5.00%, 07/01/21^(b)		500		539,470
New School (AGM), 5.50%, 07/01/20^(b)		350		368,008
New York University, Series B, 5.00%, 07/01/37		500		546,670
Rochester Institute of Technology, 5.00%, 07/01/40		550		570,097
State University Dormitory Facilities, Series A, 5.00%, 07/01/40		600		622,404
State University Dormitory Facilities, Series A, 5.00%, 07/01/41		1,000		1,065,050
State University Of New York Dormitory Facilities, Series A, 5.00%, 07/01/43		415		474,652
State of New York Dormitory Authority, Refunding RB:
Barnard College, Series A, 5.00%, 07/01/43		2,960		3,346,428


SCHEDULES OF INVESTMENTS			39

Schedule of Investments (unaudited) (continued)

February 28, 2019

BlackRock New York Municipal Income Quality Trust (BSE)

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Education (continued)
Cornell University, Series A, 5.00%, 07/01/40	$	250	$	259,803
Fordham University, 5.00%, 07/01/44		640		704,403
Icahn School of Medicine at Mount Sinai, Series A, 5.00%, 07/01/35		1,380		1,546,538
New York University, Series A, 5.00%, 07/01/37		745		814,538
Pratt Institute, Series A, 5.00%, 07/01/44		500		551,615
State University Dormitory Facilities, Series A, 5.25%, 07/01/30		1,500		1,698,195
State University Dormitory Facilities, Series A, 5.25%, 07/01/32		600		678,216
State University Dormitory Facilities, Series A, 5.00%, 07/01/42		450		487,777
State University Dormitory Facilities, Series B, 5.00%, 07/01/32		545		625,355
State University of New York Dormitory Facilities, Series A, 5.00%, 07/01/38		255		291,654
Town of Hempstead New York Local Development Corp., Refunding RB:
Adelphi University Project, 5.00%, 10/01/34		310		349,742
Adelphi University Project, 5.00%, 10/01/35		310		349,224
Hofstra University Project, 5.00%, 07/01/47		100		112,016

				31,469,762

Health — 11.3%
Counties of Buffalo & Erie New York Industrial Land Development Corp., RB, Catholic Health System Obligation, 5.25%, 07/01/35		500		555,995
County of Dutchess New York Industrial Development Agency, RB, Vassar Brothers Medical Center (AGC), 5.50%, 04/01/30		500		527,245
County of Dutchess New York Local Development Corp., RB, Health Quest Systems, Inc., Series B, 4.00%, 07/01/41		550		552,068
County of Monroe New York Industrial Development Corp., RB, Rochester General Hospital Project:
4.00%, 12/01/41		200		201,154
5.00%, 12/01/46		320		350,534
Series A, 5.00%, 12/01/37		850		918,561
County of Monroe New York Industrial Development Corp., Refunding RB, Unity Hospital of Rochester Project (FHA), 5.50%, 08/15/40		725		774,032
County of Suffolk New York EDC, RB, Catholic Health Services, Series C, 5.00%, 07/01/32		150		163,047
County of Westchester New York Healthcare Corp., Refunding RB, Senior Lien, Remarketing, Series A, 5.00%, 11/01/30		895		940,153
State of New York Dormitory Authority, RB:
New York University Hospitals Center, Series A, 6.00%, 07/01/20^(b)		250		264,495
North Shore-Long Island Jewish Obligated Group, Series D, 4.25%, 05/01/39		500		520,195
State of New York Dormitory Authority, Refunding RB, North Shore-Long Island Jewish Obligated Group, Series A:
5.00%, 05/01/21^(b)		1500		1,608,405
5.25%, 05/01/21^(b)		1,840		1,982,692
5.00%, 05/01/43		1,140		1,242,440

				10,601,016

Housing — 4.9%
City of New York Housing Development Corp., RB, M/F Housing, Fund Grant Program, New York City Housing Authority Program, Series B1:
5.25%, 07/01/32		915		1,007,964
5.00%, 07/01/33		400		435,228
City of New York Housing Development Corp., Refunding RB, M/F Housing, 8 Spruce Street, Class F, 4.50%, 02/15/48		500		518,165


Security	Par (000)		Value

Housing (continued)
City of New York Housing Development Corp., RB, M/F Housing, Series B1, 5.25%, 07/01/30	$	750	$	832,673
County of Onondaga New York Trust for Cultural Resources, Refunding RB, Abby Lane Housing Corporation Project, 5.00%, 05/01/40		445		483,662
State of New York HFA, RB:
Affordable Housing, Series E (SONYMA), 4.15%, 11/01/47		330		336,161
Affordable M/F Housing, Series B (Ginnie Mae, Fannie Mae & Freddie Mac), 4.00%, 11/01/42		110		111,234
State of New York Mortgage Agency, Refunding RB, S/F, Series 213, 4.20%, 10/01/43		880		905,643

				4,630,730

State — 13.2%
City of New York Transitional Finance Authority Building Aid Revenue, Refunding RB, Series S-3, 4.00%, 07/15/38		1,160		1,219,694
Metropolitan Transportation Authority, Refunding RB, Dedicated Tax Fund:
Series B, 5.00%, 11/15/19^(b)		540		553,009
Sub-Series B-1, 5.00%, 11/15/31		750		845,572
State of New York Dormitory Authority, RB:
Bid Group 2, Series A, 5.00%, 03/15/38		560		639,436
Bid Group 3, Series A, 5.00%, 03/15/39		760		875,847
Bid Group 3, Series A, 5.00%, 03/15/43		265		302,399
General Purpose, Series B, 5.00%, 03/15/37		1,000		1,079,400
General Purpose, Series B, 5.00%, 03/15/42		1,400		1,508,178
Group B, State Sales Tax, Series A, 5.00%, 03/15/39		90		102,446
Group C, State Sales Tax, Series A, 4.00%, 03/15/45		670		692,197
Series A, 5.00%, 03/15/36		440		504,790
Series A, 5.00%, 02/15/42		500		562,430
State of New York Dormitory Authority, Refunding RB:
Group 3, Series E, 5.00%, 03/15/41		570		656,691
Series A, 5.25%, 03/15/39		1,000		1,184,790
State of New York Urban Development Corp., RB, State Personal Income Tax, Series C:
5.00%, 03/15/30		500		557,305
5.00%, 03/15/32		1,000		1,111,740

				12,395,924

Tobacco — 2.3%
Counties of New York Tobacco Trust VI, Refunding RB, Tobacco Settlement Pass-Through:
Series A-2B, 5.00%, 06/01/51		270		273,580
Series B, 5.00%, 06/01/45		300		305,634
County of Niagara New York Tobacco Asset Securitization Corp., Refunding RB, Asset-Backed, 5.25%, 05/15/40		290		303,929
TSASC, Inc., Refunding RB, Series A, 5.00%, 06/01/41		910		964,118
Westchester New York Tobacco Asset Securitization, Refunding RB, Tobacco Settlement Bonds, Sub-Series C, 4.00%, 06/01/42		285		267,313

				2,114,574

Transportation — 17.3%
Buffalo & Fort Erie Public Bridge Authority, RB, 5.00%, 01/01/47		265		295,093
Metropolitan Transportation Authority, RB:
Series A, 5.00%, 11/15/21^(b)		575		627,509
Series A-1, 5.25%, 11/15/23^(b)		270		314,550
Series D, 5.25%, 11/15/21^(b)		440		483,076
Series E, 5.00%, 11/15/38		650		707,310
Metropolitan Transportation Authority, Refunding RB:
Green Bond, SubSeries B-1, 5.00%, 11/15/51		480		537,557
Green Bonds, Climate Bond Certified, Sub-Series B-2, 4.00%, 11/15/34		500		537,650
Series C-1, 5.00%, 11/15/36		1,020		1,139,269


40		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (unaudited) (continued)

February 28, 2019

BlackRock New York Municipal Income Quality Trust (BSE)

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Transportation (continued)
Series D, 5.25%, 11/15/21^(b)	$	1,560	$	1,712,724
Series D, 5.25%, 11/15/23^(b)		750		873,750
Metropolitan Transportation Authority Hudson Rail Yards Trust Obligations, Refunding RB, Series A, 5.00%, 11/15/56		1,345		1,459,298
Port Authority of New York & New Jersey, Refunding ARB, 179th Series, 5.00%, 12/01/38		245		275,145
State of New York Thruway Authority, RB, Junior Lien, Series A:
5.00%, 01/01/41		365		406,771
5.25%, 01/01/56		210		234,238
State of New York Thruway Authority, Refunding RB:
2nd General Highway & Bridge Trust, Series A, 5.00%, 04/01/32		250		272,690
General, Series I (AGM), 5.00%, 01/01/37		1,325		1,411,734
General, Series I (AGM), 5.00%, 01/01/42		425		450,908
General, Series K, 5.00%, 01/01/32		750		852,892
Series L, 5.00%, 01/01/33		90		106,706
Series L, 5.00%, 01/01/34		140		165,126
Series L, 5.00%, 01/01/35		170		199,701
Triborough Bridge & Tunnel Authority, RB, Series B, 5.00%, 11/15/40		280		316,840
Triborough Bridge & Tunnel Authority, Refunding RB:
General, CAB, Series B, 0.00%, 11/15/32^(a)		635		401,142
General, Remarketing, Series A, 5.00%, 11/15/34		1,000		1,102,010
General, Series A, 5.25%, 11/15/45		370		424,401
Sub-Series A, 5.00%, 11/15/29		810		907,192

				16,215,282

Utilities — 16.6%
Albany Municipal Water Finance Authority, Refunding RB, Series A, 5.00%, 12/01/33		1,000		1,082,670
City of New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System, 2nd General Resolution, Fiscal 2015, Series HH, 5.00%, 06/15/39		1,000		1,126,160
City of New York Water & Sewer System, Refunding RB:
Series EE, 5.00%, 06/15/40		700		804,013
Water & Sewer System, 2nd General Resolution, Fiscal 2018, Series FF, 5.00%, 06/15/38		1,000		1,164,380
County of Western Nassau New York Water Authority, RB, Series A, 5.00%, 04/01/40		250		280,628
Long Island Power Authority, RB:
5.00%, 09/01/38		625		718,087
General, 5.00%, 09/01/47		950		1,063,040
General, Electric Systems, 5.00%, 09/01/42		290		326,157
General, Electric Systems, Series A (AGM), 5.00%, 05/01/21^(b)		500		536,135
General, Electric Systems, Series C (CIFG), 5.25%, 09/01/29		1,000		1,219,120
Long Island Power Authority, Refunding RB:
Electric System, Series B, 5.00%, 09/01/46		140		155,644
Electric Systems, Series A (AGC), 5.75%, 04/01/19^(b)		1,690		1,695,374
General, Electric Systems, Series A (AGC), 6.00%, 05/01/19^(b)		2,000		2,014,180
State of New York Environmental Facilities Corp., RB, Series B:
Revolving Funds, Green Bonds, 5.00%, 09/15/40		635		717,633
Subordinated SRF Bonds, 5.00%, 06/15/48		460		528,568
State of New York Power Authority, Refunding RB, Series A, 5.00%, 11/15/38		1,000		1,079,730
Utility Debt Securitization Authority, Refunding RB, Restructuring, Series TE, 5.00%, 12/15/41		1,000		1,119,200

				15,630,719


Total Municipal Bonds — 121.1% (Cost — $108,437,250)				113,669,632


Security	Par (000)		Value

Municipal Bonds Transferred to Tender Option Bond Trusts^(c)

New York — 43.4%

County/City/Special District/School District — 10.8%
City of New York, GO:
Sub-Series G-1, 5.00%, 04/01/29	$	1,000	$	1,089,485
Sub-Series I-1, 5.00%, 03/01/36		250		278,941
Refunding Fiscal 2015, Series B, 4.00%, 08/01/32		1,790		1,884,951
City of New York Transitional Finance Authority, RB, Future Tax Secured, Sub-Series D-1, 5.00%, 11/01/38		2,475		2,669,651
Hudson Yards Infrastructure Corp., RB, Senior-Fiscal 2012^(d):
5.75%, 02/15/21^(b)		1,114		1,198,375
5.75%, 02/15/47		686		737,204
New York Liberty Development Corp., Refunding RB, 7 World Trade Center Project, Class 1, 5.00%, 09/15/40		2,085		2,257,541

				10,116,148

Education — 2.3%
State of New York Dormitory Authority, RB, State University Dormitory Facilities, New York University, Series A, 5.00%, 07/01/35		1,999		2,132,191


Housing — 1.5%
City of New York Housing Development Corp., Refunding RB, Sustainable Neighborhood Bonds, Series A, 4.25%, 11/01/43		1,400		1,440,467


State — 6.2%
Sales Tax Asset Receivable Corp., Refunding RB, Fiscal 2015, Series A:
5.00%, 10/15/31		990		1,138,124
4.00%, 10/15/32		1,500		1,634,415
State of New York Dormitory Authority, RB:
Bid Group 2, Series A, 5.00%, 03/15/32		1,000		1,192,675
General Purpose, Series C, 5.00%, 03/15/41		750		792,476
State of New York Urban Development Corp., RB, State Personal Income Tax, General Purpose, Series A, 4.00%, 03/15/47		1,003		1,038,889

				5,796,579

Transportation — 11.4%
New York Liberty Development Corp., ARB, 1 World Trade Center Port Authority Consolidated Bonds, 5.25%, 12/15/43		3,495		3,791,289
Port Authority of New York & New Jersey, Refunding ARB:
194th Series, 5.25%, 10/15/55		735		838,733
Consolidated, 210th Series, 5.00%, 09/01/48		1,900		2,181,656
State of New York Thruway Authority, Refunding RB, Transportation, Personal Income Tax, Series A, 5.00%, 03/15/31		800		859,020
Triborough Bridge & Tunnel Authority, Refunding RB:
General, Series A, 5.00%, 11/15/46		1,000		1,121,910
MTA Bridges & Tunnels, Series C-2, 5.00%, 11/15/42		1,665		1,905,848

				10,698,456

Utilities — 11.2%
City of New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System, 2nd General Resolution:
Fiscal 2011, Series HH, 5.00%, 06/15/32		2,249		2,395,421
Fiscal 2012, Series BB, 5.00%, 06/15/44		2,010		2,154,948
City of New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System, 2nd General Resolution, Series FF-2, 5.50%, 06/15/40		405		409,228
Utility Debt Securitization Authority, Refunding RB:
5.00%, 12/15/41		3,719		4,157,181
Restructuring, Series A, 5.00%, 12/15/35		1,000		1,154,405


SCHEDULES OF INVESTMENTS			41

Schedule of Investments (unaudited) (continued)

February 28, 2019

BlackRock New York Municipal Income Quality Trust (BSE)

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Utilities (continued)
Restructuring, Series B, 4.00%, 12/15/35	$	280	$	298,395

				10,569,578


Total Municipal Bonds Transferred to Tender Option Bond Trusts — 43.4% (Cost — $39,228,976)				40,753,419


Total Long-Term Investments — 164.5% (Cost — $147,666,226)				154,423,051


	Shares

Short-Term Securities — 0.7%
BlackRock Liquidity Funds New York Money Fund Portfolio, 1.53%^(e)(f)		669,182		669,182


Total Short-Term Securities — 0.7% (Cost — $669,182)				669,182


Total Investments — 165.2% (Cost — $148,335,408)				155,092,233

Other Assets Less Liabilities — 1.7%				1,609,426

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (23.9)%				(22,415,804	)

VRDP Shares, at Liquidation Value, Net of Deferred Offering Costs — (43.0)%				(40,393,238	)


Net Assets Applicable to Common Shares — 100.0%			$	93,892,617

^(a)	Zero-coupon bond.

^(b)	U.S. Government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par.

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

^(d)	All or a portion of security is subject to a recourse agreement. The aggregate maximum potential amount the Trust could ultimately be required to pay under the agreement, which expires August 15, 2020, is $953,183. See Note 4 of the Notes to Financial Statements for details.

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

^(f)	During the six months ended February 28, 2019, investments in issuers considered to be an affiliate of the Trust for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:


Affiliate	Shares Held at 08/31/18		Net Activity			Shares Held at 02/28/19		Value at 02/28/19		Income		Net Realized Gain (Loss)^(a)		Change in Unrealized Appreciation (Depreciation)
BlackRock Liquidity Funds New York Money Fund Portfolio		—		669,182			669,182	$	669,182	$	4,223	$	—	$	—
BlackRock Liquidity Funds, MuniCash, Institutional Class*		673,097		(673,097	)		—		—		1,449		—		—

								$	669,182	$	5,672	$	—	$	—

No longer held by the Trust as of period end.

^(a)

Includes net capital gain distributions, if applicable.

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts


Description	Number of Contracts		Expiration Date		Notional Amount (000)		Value/ Unrealized Appreciation (Depreciation)
Short Contracts:
10-Year U.S. Treasury Note		21		06/19/19	$	2,562	$	13,288
Long U.S. Treasury Bond		42		06/19/19		6,068		69,126
5-Year U.S. Treasury Note		19		06/28/19		2,177		6,502

							$	88,916


42		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (unaudited) (continued)

February 28, 2019

BlackRock New York Municipal Income Quality Trust (BSE)

Derivative Financial Instruments Categorized by Risk Exposure

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


	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Currency Exchange Contracts		Interest Rate Contracts		Other Contracts		Total
Assets — Derivative Financial Instruments
Futures contracts
Net unrealized appreciation^(a)	$	—	$	—	$	—	$	—	$	88,916	$	—	$	88,916

^(a)

For the six months ended February 28, 2019, the effect of derivative financial instruments in the Statements of Operations was as follows:


	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Currency Exchange Contracts		Interest Rate Contracts			Other Contracts		Total
Net Realized Gain (Loss) from:
Futures contracts	$	—	$	—	$	—	$	—	$	(178,708	)	$	—	$	(178,708	)


Net change in Unrealized Appreciation (Depreciation) on:
Futures contracts	$	—	$	—	$	—	$	—	$	79,654		$	—	$	79,654

Average Quarterly Balances of Outstanding Derivative Financial Instruments


Futures contracts:
Average notional value of contracts — short	$	9,417,574

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

Fair Value Hierarchy as of Period End

The following tables summarize the Trust’s investments and derivative financial instruments categorized in the disclosure hierarchy:


	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Long-Term Investments^(a)	$	—	$	154,423,051	$	—	$	154,423,051
Short-Term Securities		669,182		—		—		669,182

	$	669,182	$	154,423,051	$	—	$	155,092,233

Derivative Financial Instruments^(b)
Assets:
Interest rate contracts	$	88,916	$	—	$	—	$	88,916

^(a)

See above Schedule of Investments for values in each sector.

^(b)

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


	Level 1		Level 2			Level 3		Total
Liabilities:
TOB Trust Certificates	$	—	$	(22,320,197	)	$	—	$	(22,320,197	)
VRDP Shares at Liquidation Value		—		(40,500,000	)		—		(40,500,000	)

	$	—	$	(62,820,197	)	$	—	$	(62,820,197	)

During the six months ended February 28, 2019, there were no transfers between levels.

See notes to financial statements.


SCHEDULES OF INVESTMENTS			43

Schedule of Investments (unaudited)

February 28, 2019

BlackRock New York Municipal Income Trust II (BFY)

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Municipal Bonds — 148.1%

New York — 144.0%

Corporate — 5.1%
Build NYC Resource Corp., Refunding RB, Pratt Paper, Inc. Project, AMT, 5.00%, 01/01/35^(a)	$	140	$	148,805
City of New York Industrial Development Agency, Refunding RB, Transportation Infrastructure Properties LLC, Series A, AMT:
5.00%, 07/01/22		350		382,315
5.00%, 07/01/28		330		352,809
New York Liberty Development Corp., Refunding RB, Goldman Sachs Headquarters, 5.25%, 10/01/35		1,475		1,808,188
Niagara Area Development Corp., Refunding RB, Covanta Project, Series A, AMT, 4.75%, 11/01/42^(a)		1,130		1,117,265

				3,809,382

County/City/Special District/School District — 36.3%
City of New York, GO, Refunding, Series E:
5.50%, 08/01/25		965		1,115,357
5.00%, 08/01/30		500		554,915
City of New York, GO:
Series G-1, 6.25%, 12/15/31		5		5,018
Sub-Series D-1, Fiscal 2014, 5.00%, 08/01/31		690		772,690
Sub-Series I-1, 5.38%, 04/01/19^(b)		120		120,353
Sub-Series I-1, 5.38%, 04/01/36		15		15,040
City of New York Convention Center Development Corp., RB, CAB, Sub Lien, Hotel Unit Fee, Series B (AGM), 0.00%, 11/15/55^(c)		1,000		219,780
City of New York Convention Center Development Corp., Refunding RB, Hotel Unit Fee Secured:
5.00%, 11/15/40		1,445		1,633,240
5.00%, 11/15/45		2,340		2,620,589
City of New York Industrial Development Agency, RB, PILOT:
CAB, Yankee Stadium Project, Series A (AGC), 0.00%, 03/01/42^(c)		1,750		686,805
CAB, Yankee Stadium Project, Series A (AGC), 0.00%, 03/01/45^(c)		500		169,225
(AMBAC), 5.00%, 01/01/39		500		506,315
CAB, Yankee Stadium Project, Series A (AGC), 0.00%, 03/01/35^(c)		500		281,940
Queens Baseball Stadium (AGC), 6.38%, 01/01/39		100		100,332
Queens Baseball Stadium (AMBAC), 5.00%, 01/01/46		400		405,404
Yankee Stadium Project (NPFGC), 4.75%, 03/01/46		400		400,268
Yankee Stadium Project (NPFGC), 5.00%, 03/01/46		500		502,320
City of New York Transitional Finance Authority Future Tax Secured, RB:
Fiscal 2012, Sub-Series D-1, 5.00%, 11/01/38		825		890,753
Future Tax Secured Subordinate Bond, Series C-3, 5.00%, 05/01/41		1,315		1,505,530
Future Tax Secured, Sub-Series A-3, 4.00%, 08/01/43		465		481,610
Future Tax Secured, Sub-Series E-1, 5.00%, 02/01/39		460		521,907
Future Tax Secured, Sub-Series E-1, 5.00%, 02/01/43		1,030		1,157,390
Series A-2, 5.00%, 08/01/38		195		223,062
City of Syracuse New York, GO, Airport Terminal Security & Access, Series A, AMT (AGM), 4.75%, 11/01/31		500		523,225
County of Nassau New York, GOL, General Improvement Bonds, Series B (AGM), 5.00%, 07/01/45		500		565,280
Haverstraw-Stony Point Central School District, GO, Refunding, (AGM), 5.00%, 10/15/36		120		134,110
Hudson Yards Infrastructure Corp., RB, Senior, Fiscal 2012:
5.75%, 02/15/21^(b)		960		1,036,838
5.75%, 02/15/47		590		632,468
Hudson Yards Infrastructure Corp., Refunding RB, Series A:
5.00%, 02/15/39		475		538,774
5.00%, 02/15/42		790		890,930


Security	Par (000)		Value

County/City/Special District/School District (continued)
New York Liberty Development Corp., Refunding RB:
2nd Priority, Bank of America Tower at One Bryant Park Project, Class 2, 5.63%, 07/15/47	$	1,400	$	1,445,416
2nd Priority, Bank of America Tower at One Bryant Park Project, Class 3, 6.38%, 07/15/49		500		518,145
3 World Trade Center Project, Class 1, 5.00%, 11/15/44^(a)		735		765,231
3 World Trade Center Project, Class 2, 5.38%, 11/15/40^(a)		200		211,784
4 World Trade Center Project, 5.00%, 11/15/31		1,000		1,074,810
4 World Trade Center Project, 5.00%, 11/15/44		1,250		1,331,987
7 World Trade Center Project, Class 2, 5.00%, 09/15/43		1,000		1,074,530
7 World Trade Center Project, Class 3, 5.00%, 03/15/44		690		735,540
World Trade Center Project, 5.75%, 11/15/51		670		731,928

				27,100,839

Education — 25.1%
Amherst Development Corp., Refunding RB:
Daemen College Project, 5.00%, 10/01/43		155		165,824
Daemen College Project, 5.00%, 10/01/48		120		127,890
University at Buffalo Foundation Faculty-Student Housing Corp., Series A (AGM), 4.63%, 10/01/20^(b)		275		288,060
Build NYC Resource Corp., RB, Inwood Academy for Leadership Charter School Project, Series A, 5.50%, 05/01/48^(a)		270		277,209
Build NYC Resource Corp., Refunding RB, City University New York-Queens College Student Residences, LLC Project, Series A, 5.00%, 06/01/38		250		281,197
New Dawn Charter School Project, 5.75%, 02/01/49^(a)		255		256,283
City of New York Trust for Cultural Resources, Refunding RB, Series A:
American Museum of Natural History, 5.00%, 07/01/37		440		499,360
Carnegie Hall, 4.75%, 12/01/39		700		712,775
City of Troy New York Capital Resource Corp., Refunding RB, Rensselaer Polytechnic Institute Project:
Series A, 5.13%, 09/01/40		1,000		1,041,990
Series B, 4.00%, 08/01/35		190		197,801
City of Yonkers New York Industrial Development Agency, RB, Sarah Lawrence College Project, Series A, 6.00%, 06/01/19^(b)		500		505,330
Counties of Buffalo & Erie New York Industrial Land Development Corp., Refunding RB, Series A:
Buffalo State College Foundation Housing Corp. Project, 5.38%, 10/01/41		280		298,788
The Charter School for Applied Technologies Project, 5.00%, 06/01/35		100		107,217
County of Cattaraugus New York, RB, St. Bonaventure University Project, 5.00%, 05/01/39		125		134,071
County of Dutchess New York Local Development Corp., RB, Marist College Project:
5.00%, 07/01/43		95		108,245
5.00%, 07/01/48		145		164,813
County of Dutchess New York Local Development Corp., Refunding RB, Vassar College Project:
5.00%, 07/01/42		165		187,333
4.00%, 07/01/46		310		319,700
County of Monroe New York Industrial Development Corp., RB, University of Rochester Project, Series A, 5.00%, 07/01/21^(b)		1,000		1,078,940
County of Monroe New York Industrial Development Corp., Refunding RB, University of Rochester Project, Series A, 5.00%, 07/01/23^(b)		240		274,070
County of Nassau New York Industrial Development Agency, Refunding RB, New York Institute of Technology Project, Series A, 4.75%, 03/01/20^(b)		350		360,629


44		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (unaudited) (continued)

February 28, 2019

BlackRock New York Municipal Income Trust II (BFY)

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Education (continued)
County of St. Lawrence New York Industrial Development Agency, RB, Clarkson University Project:
6.00%, 09/01/34	$	150	$	163,182
5.38%, 09/01/41		650		693,595
County of Tompkins New York Development Corp., RB, Ithaca College Project (AGM), 5.50%, 01/01/21^(b)		450		481,347
Geneva Development Corp., Refunding RB, Hobart & William Smith Colleges, 5.25%, 09/01/44		400		447,696
State of New York Dormitory Authority, RB:
Convent of the Sacred Heart (AGM), 5.75%, 11/01/40		500		538,680
Education, Series B, 5.75%, 03/15/19^(b)		300		300,390
Fordham University, Series A, 5.50%, 07/01/21^(b)		150		163,548
State University Dormitory Facilities, Series A, 5.00%, 07/01/19^(b)		250		252,810
State University Dormitory Facilities, Series A, 5.00%, 07/01/41		670		713,583
Touro College & University System, Series A, 5.25%, 01/01/34		1,200		1,299,336
University of Rochester, Series A, 5.13%, 07/01/19^(b)		215		217,505
University of Rochester, Series A, 5.13%, 07/01/39		35		35,370
State of New York Dormitory Authority, Refunding RB:
Brooklyn Law School, 5.75%, 07/01/33		250		252,633
Fordham University, 5.00%, 07/01/44		640		704,403
Icahn School of Medicine at Mount Sinai, Series A, 5.00%, 07/01/35		685		767,666
New York University, Series A, 5.00%, 07/01/37		600		656,004
Skidmore College, Series A, 5.25%, 07/01/29		200		215,082
Skidmore College, Series A, 5.25%, 07/01/31		300		322,554
State University Dormitory Facilities, Series A, 5.25%, 07/01/30		1,220		1,381,199
State University Dormitory Facilities, Series A, 5.25%, 07/01/32		700		791,252
Teachers College, 5.50%, 03/01/19		400		400,000
Town of Hempstead New York Local Development Corp., Refunding RB:
Adelphi University Project, 5.00%, 10/01/35		210		236,571
Hofstra University Project, 4.00%, 07/01/37		220		228,620
Hofstra University Project, 5.00%, 07/01/47		100		112,016

				18,762,567

Health — 12.7%
County of Dutchess New York Local Development Corp., Refunding RB, Health Quest System, Inc., Series A, 5.75%, 07/01/40		300		316,761
County of Genesee New York Industrial Development Agency, Refunding RB, United Memorial Medical Center Project, 5.00%, 12/01/27		190		190,135
County of Monroe New York Industrial Development Corp., RB, Rochester General Hospital Project:
4.00%, 12/01/41		200		201,154
5.00%, 12/01/46		320		350,534
Series A, 5.00%, 12/01/32		180		195,791
Series A, 5.00%, 12/01/37		250		270,165
County of Monroe New York Industrial Development Corp., Refunding RB, Unity Hospital of Rochester Project (FHA), 5.50%, 08/15/40		1,425		1,521,373
County of Suffolk New York EDC, RB, Catholic Health Services, Series C, 5.00%, 07/01/32		150		163,047
County of Westchester New York Healthcare Corp., Refunding RB, Senior Lien:
Remarketing, Series A, 5.00%, 11/01/30		895		940,153
Series B, 6.00%, 11/01/20^(b)		130		139,299
Series B, 6.00%, 11/01/30		20		21,237


Security	Par (000)		Value

Health (continued)
County of Westchester New York Local Development Corp., Refunding RB, Kendal On Hudson Project, 5.00%, 01/01/34	$	500	$	523,865
State of New York Dormitory Authority, RB, Series A^(b):
New York State Association for Retarded Children, Inc., 6.00%, 07/01/19		250		253,575
New York University Hospitals Center, 5.75%, 07/01/20		425		448,252
State of New York Dormitory Authority, Refunding RB:
Miriam Osborn Memorial Home Association, 5.00%, 07/01/29		130		131,203
Mount Sinai Hospital, Series A, 5.00%, 07/01/26		500		520,075
North Shore-Long Island Jewish Obligated Group, Series A, 5.00%, 05/01/21^(b)		1,000		1,072,270
North Shore-Long Island Jewish Obligated Group, Series A, 5.00%, 05/01/21^(b)		750		804,202
North Shore-Long Island Jewish Obligated Group, Series A, 5.00%, 05/01/43		860		937,280
North Shore-Long Island Jewish Obligated Group, Series E, 5.50%, 05/01/33		500		502,595

				9,502,966

Housing — 6.2%
City of New York Housing Development Corp., RB, M/F Housing, Fund Grant Program, New York City Housing Authority Program, Series B1:
5.25%, 07/01/32		915		1,007,964
5.00%, 07/01/33		400		435,228
City of New York Housing Development Corp., Refunding RB, M/F Housing, 8 Spruce Street, Class F, 4.50%, 02/15/48		500		518,165
County of Onondaga New York Trust for Cultural Resources, Refunding RB, Abby Lane Housing Corporation Project, 5.00%, 05/01/40		265		288,023
State of New York HFA, RB:
Affordable Housing, Series E (SONYMA), 4.15%, 11/01/47		660		672,322
M/F Housing, Highland Avenue Senior Apartments, Series A, AMT (SONYMA), 5.00%, 02/15/39		940		943,234
State of New York Mortgage Agency, Refunding RB, S/F, Series 213, 4.20%, 10/01/43		715		735,835

				4,600,771

State — 14.1%
City of New York Transitional Finance Authority Building Aid Revenue, Refunding RB, Series S-3, 4.00%, 07/15/38		2,195		2,307,955
City of New York Transitional Finance Authority Future Tax Secured, RB, Fiscal 2014, Sub-Series B-1, 5.00%, 11/01/36		340		382,775
State of New York, GO, Series A, 5.00%, 02/15/39		500		501,240
State of New York Dormitory Authority, RB:
General Purpose, Series B, 5.00%, 03/15/37		1,070		1,154,958
General Purpose, Series B, 5.00%, 03/15/42		1,000		1,077,270
General Purpose, Series C, 5.00%, 03/15/34		1,000		1,059,720
Group B, State Sales Tax, Series A, 5.00%, 03/15/39		250		284,573
Group C, State Sales Tax, Series A, 4.00%, 03/15/45		555		573,387
Series A, 5.00%, 03/15/36		545		625,251
Series A, 5.00%, 02/15/42		250		281,215
State of New York Dormitory Authority, Refunding RB:
Group 3, Series E, 5.00%, 03/15/41		470		541,482
Series A, 5.25%, 03/15/39		1,015		1,202,562
State of New York Urban Development Corp., RB, State Personal Income Tax, Series C, 5.00%, 03/15/30		500		557,305

				10,549,693


SCHEDULES OF INVESTMENTS			45

Schedule of Investments (unaudited) (continued)

February 28, 2019

BlackRock New York Municipal Income Trust II (BFY)

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Tobacco — 4.9%
Counties of New York Tobacco Trust IV, Refunding RB, Settlement Pass-Through Turbo, Series A, 6.25%, 06/01/41^(a)	$	400	$	410,668
Counties of New York Tobacco Trust VI, Refunding RB:
Settlement Pass-Through Turbo, Series C, 4.00%, 06/01/51		750		636,832
Tobacco Settlement Pass-Through, Series A-2B, 5.00%, 06/01/51		600		607,956
County of Chautauqua New York Tobacco Asset Securitization Corp., Refunding RB, Asset-Backed, 4.75%, 06/01/39		250		246,147
County of Niagara New York Tobacco Asset Securitization Corp., Refunding RB, Asset-Backed, 5.25%, 05/15/40		230		241,047
TSASC, Inc., Refunding RB, Tobacco Settlement Bonds, Series B:
5.00%, 06/01/45		455		438,570
Subordinate, 5.00%, 06/01/48		495		474,398
Westchester New York Tobacco Asset Securitization, Refunding RB, Tobacco Settlement Bonds, Sub-Series C:
4.00%, 06/01/42		285		267,313
5.13%, 06/01/51		355		357,702

				3,680,633

Transportation — 25.4%
Buffalo & Fort Erie Public Bridge Authority, RB, 5.00%, 01/01/47		215		239,415
Metropolitan Transportation Authority, RB:
Series A-1, 5.25%, 11/15/23^(b)		270		314,550
Series E, 5.00%, 11/15/38		1,000		1,088,170
Metropolitan Transportation Authority, Refunding RB:
Dedicated Tax Fund, Sub-Series B-1, 5.00%, 11/15/31		750		845,572
Green Bonds, Climate Bond Certified, Sub-Series B-2, 4.00%, 11/15/34		500		537,650
Green Bonds, Series A-1, 5.25%, 11/15/56		250		274,973
Series C-1, 5.00%, 11/15/36		840		938,221
Series F, 5.00%, 11/15/30		1,500		1,640,130
Series F, 5.00%, 11/15/35		500		558,670
Metropolitan Transportation Authority Hudson Rail Yards Trust Obligations, Refunding RB, Series A, 5.00%, 11/15/56		1,120		1,215,178
New York Liberty Development Corp., RB, World Trade Center Port Authority Consolidated, 5.25%, 12/15/43		500		543,145
New York Transportation Development Corp., ARB, LaGuardia Airport Terminal B Redevelopment Project, Series A, AMT:
5.00%, 07/01/46		2,480		2,624,361
5.25%, 01/01/50		165		176,205
(AGM), 4.00%, 07/01/41		300		302,715
New York Transportation Development Corp., Refunding ARB, American Airlines, Inc., AMT, 5.00%, 08/01/31		920		953,966
Port Authority of New York & New Jersey, ARB, Special Project, JFK International Air Terminal LLC Project, Series 8, 6.00%, 12/01/42		1,000		1,056,580
Port Authority of New York & New Jersey, Refunding ARB, Consolidated, AMT:
177th Series, 4.00%, 01/15/43		480		485,213
178th Series, 5.00%, 12/01/43		430		469,590
State of New York Thruway Authority, Refunding RB, General:
Series I (AGM), 5.00%, 01/01/37		1,530		1,630,154
Series I (AGM), 5.00%, 01/01/42		1,030		1,092,789
Series J, 5.00%, 01/01/41		500		545,030
Triborough Bridge & Tunnel Authority, RB, Series B, 5.00%, 11/15/40		240		271,577
Triborough Bridge & Tunnel Authority, Refunding RB:
General, Series A, 5.25%, 11/15/45		370		424,401
General, Series A, 5.00%, 11/15/50		500		557,340
Series B, 5.00%, 11/15/38		210		241,460

				19,027,055


Security	Par (000)		Value

Utilities — 14.2%
City of New York Municipal Water Finance Authority, RB, Water & Sewer System, 2nd General Resolution, Fiscal 2017, Series DD, 5.25%, 06/15/47	$	245	$	281,451
City of New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System, 2nd General Resolution, Fiscal 2015, Series HH, 5.00%, 06/15/39		1,500		1,689,240
Long Island Power Authority, RB:
CAB, Electric Systems, Series A (AGM), 0.00%, 06/01/28^(c)		3,515		2,716,533
General, 5.00%, 09/01/47		200		223,798
General, Electric Systems, Series C (CIFG), 5.25%, 09/01/29		1,000		1,219,120
Long Island Power Authority, Refunding RB, Electric System:
Series A, 5.50%, 04/01/19^(b)		500		501,495
Series B, 5.00%, 09/01/46		125		138,968
State of New York Environmental Facilities Corp., RB, Subordinated SRF Bonds, Series B, 5.00%, 06/15/48		370		425,152
State of New York Environmental Facilities Corp., Refunding RB, Revolving Funds, New York City Municipal Water, Series B, 5.00%, 06/15/36		350		373,233
Utility Debt Securitization Authority, Refunding RB, Restructuring, Series TE, 5.00%, 12/15/41		2,690		3,010,648

				10,579,638


Total Municipal Bonds in New York				107,613,544


Multi-State — 2.7%

Housing — 2.7%
Centerline Equity Issuer Trust^(a)(d):
Series A-4-2, 6.00%, 10/31/52		1,000		1,006,440
Series B-3-2, 6.30%, 10/31/52		1,000		1,006,910


Total Municipal Bonds in Multi-State				2,013,350


Puerto Rico — 1.4%

State — 0.9%
Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB, Restructured, Series A-1:
4.50%, 07/01/34		7		6,991
4.75%, 07/01/53		185		169,880
5.00%, 07/01/58		544		515,739

				692,610

Tobacco — 0.5%
Children’s Trust Fund, Refunding RB, Tobacco Settlement Asset-Backed Bonds, 5.63%, 05/15/43		400		404,176


Total Municipal Bonds in Puerto Rico				1,096,786


Total Municipal Bonds — 148.1% (Cost — $104,879,869)				110,723,680


Municipal Bonds Transferred to Tender Option Bond Trusts^(e)

New York — 20.1%

County/City/Special District/School District — 5.4%
City of New York, GO:
Series D, 5.00%, 12/01/43^(f)		1,150		1,316,508
Sub-Series I-1, 5.00%, 03/01/36		500		557,883
New York Liberty Development Corp., ARB, 1 World Trade Center Port Authority Consolidated Bonds, 5.25%, 12/15/43		1,995		2,164,127

				4,038,518

Education — 0.8%
City of New York Trust for Cultural Resources, Refunding RB, Wildlife Conservation Society, Series A, 5.00%, 08/01/33		510		568,923


46		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (unaudited) (continued)

February 28, 2019

BlackRock New York Municipal Income Trust II (BFY)

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Housing — 1.6%
City of New York Housing Development Corp., Refunding RB, Sustainable Neighborhood Bonds, Series A, 4.25%, 11/01/43	$	1,130	$	1,162,663


State — 3.7%
Sales Tax Asset Receivable Corp., Refunding RB, Fiscal 2015, Series A:
5.00%, 10/15/31		255		293,153
4.00%, 10/15/32		350		381,364
State of New York Dormitory Authority, RB, General Purpose, Series C, 5.00%, 03/15/41		1,000		1,056,635
State of New York Urban Development Corp., RB, State Personal Income Tax, General Purpose, Series A, 4.00%, 03/15/47		1,003		1,038,889

				2,770,041

Transportation — 4.8%
Port Authority of New York & New Jersey, Refunding ARB:
194th Series, 5.25%, 10/15/55		735		838,733
Consolidated, 210th Series, 5.00%, 09/01/48		960		1,102,310
Consolidated, Series 169th, 5.00%, 10/15/26		1,000		1,073,540
Triborough Bridge & Tunnel Authority, Refunding RB, General, Series A, 5.00%, 11/15/46		500		560,955

				3,575,538

Utilities — 3.8%
City of New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System, 2nd General Resolution:
Fiscal 2011, Series HH, 5.00%, 06/15/32		1,500		1,598,180
Fiscal 2012, Series BB, 5.00%, 06/15/44		1,005		1,077,474
Utility Debt Securitization Authority, Refunding RB, Restructuring, Series B, 4.00%, 12/15/35		190		202,482

				2,878,136


Total Municipal Bonds Transferred to Tender Option Bond Trusts — 20.1% (Cost — $14,475,878)				14,993,819


Total Long-Term Investments — 168.2% (Cost — $119,355,747)				125,717,499


Security	Shares		Value

Short-Term Securities — 0.3%
BlackRock Liquidity Funds New York Money Fund Portfolio, 1.53%^(g)(h)		208,819	$	208,819


Total Short-Term Securities — 0.3% (Cost — $208,819)				208,819


Total Investments — 168.5% (Cost — $119,564,566)				125,926,318

Other Assets Less Liabilities — 1.6%				1,207,880

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (10.8)%				(8,091,586	)

VRDP Shares, at Liquidation Value, Net of Deferred Offering Costs — (59.3)%				(44,298,879	)


Net Assets Applicable to Common Shares — 100.0%			$	74,743,733

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

^(b)	U.S. Government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par.

^(c)	Zero-coupon bond.

^(d)	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.

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

^(f)	All or a portion of security is subject to a recourse agreement. The aggregate maximum potential amount the Trust could ultimately be required to pay under the agreement, which expires on December 1, 2026, is $604,549. See Note 4 of the Notes to Financial Statements for details.

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

^(h)	During the six months ended February 28, 2019, investments in issuers considered to be affiliates of the Trust for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:


Affiliate	Shares Held at 08/31/18		Net Activity			Shares Held at 02/28/19		Value at 02/28/19		Income		Net Realized Gain (Loss)^(a)		Change in Unrealized Appreciation (Depreciation)
BlackRock Liquidity Funds New York Money Fund Portfolio		—		208,819			208,819	$	208,819	$	1,461	$	—	$	—
BlackRock Liquidity Funds, MuniCash, Institutional Class*		129,237		(129,237	)		—		—		901		13		(13	)

								$	208,819	$	2,362	$	13	$	(13	)

No longer held by the Trust as of period end.

^(a)

Includes net capital gain distributions, if applicable.


SCHEDULES OF INVESTMENTS			47

Schedule of Investments (unaudited) (continued)

February 28, 2019

BlackRock New York Municipal Income Trust II (BFY)

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts


Description	Number of Contracts		Expiration Date		Notional Amount (000)		Value/ Unrealized Appreciation (Depreciation)
Short Contracts:
10-Year U.S. Treasury Note		14		06/19/19	$	1,708	$	8,871
Long U.S. Treasury Bond		35		06/19/19		5,056		57,605
5-Year U.S. Treasury Note		11		06/28/19		1,260		3,764

							$	70,240

Derivative Financial Instruments Categorized by Risk Exposure

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


	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Currency Exchange Contracts		Interest Rate Contracts		Other Contracts		Total
Assets — Derivative Financial Instruments
Futures contracts
Net unrealized appreciation^(a)	$	—	$	—	$	—	$	—	$	70,240	$	—	$	70,240

^(a)

For the six months ended February 28, 2019, the effect of derivative financial instruments in the Statements of Operations was as follows:


	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Currency Exchange Contracts		Interest Rate Contracts			Other Contracts		Total
Net Realized Gain (Loss) from:
Futures contracts	$	—	$	—	$	—	$	—	$	(138,706	)	$	—	$	(138,706	)

Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts	$	—	$	—	$	—	$	—	$	62,351		$	—	$	62,351

Average Quarterly Balances of Outstanding Derivative Financial Instruments


Futures contracts:
Average notional value of contracts — short	$	6,982,922

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

Fair Value Hierarchy as of Period End

The following tables summarize the Trust’s investments and derivative financial instruments categorized in the disclosure hierarchy:


	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Long-Term Investments^(a)	$	—	$	125,717,499	$	—	$	125,717,499
Short-Term Securities		208,819		—		—		208,819

	$	208,819	$	125,717,499	$	—	$	125,926,318


48		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (unaudited) (continued)

February 28, 2019

BlackRock New York Municipal Income Trust II (BFY)

Fair Value Hierarchy as of Period End (continued)


	Level 1		Level 2		Level 3		Total
Derivative Financial Instruments^(b)
Assets:
Interest rate contracts	$	70,240	$	—	$	—	$	70,240

	$	70,240	$	—	$	—	$	70,240

^(a)

See above Schedule of Investments for values in each sector.

^(b)

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


	Level 1		Level 2			Level 3		Total
Liabilities:
TOB Trust Certificates	$	—	$	(8,058,575	)	$	—	$	(8,058,575	)
VRDP Shares at Liquidation Value		—		(44,400,000	)		—		(44,400,000	)

	$	—	$	(52,458,575	)	$	—	$	(52,458,575	)

During the six months ended February 28, 2019, there were no transfers between levels.

See notes to financial statements.


SCHEDULES OF INVESTMENTS			49

Schedule of Investments (unaudited)

February 28, 2019

BlackRock Virginia Municipal Bond Trust (BHV)

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Municipal Bonds — 127.3%

Virginia — 118.3%

County/City/Special District/School District — 32.5%
Ballston Quarter Community Development Authority, Tax Allocation Bonds, Series A, 5.38%, 03/01/36	$	250	$	257,773
Cherry Hill Virginia Community Development Authority, Special Assessment Bonds, Potomac Shores Project, 5.40%, 03/01/45^(a)		250		255,250
City of Norfolk Virginia, GO:
Capital Improvement, 5.00%, 08/01/41		500		577,785
Refunding, 5.00%, 08/01/23^(b)		465		529,263
Refunding, 5.00%, 08/01/23^(b)		35		39,917
City of Portsmouth Virginia, GO, Refunding Series D^(b):
5.00%, 07/15/20		500		522,635
City of Suffolk Virginia, GO, Refunding, 5.00%, 06/01/21^(b)		1,000		1,074,320
County of Fairfax Virginia EDA, RB:
Metrorail Parking System Projects, 5.00%, 04/01/36		775		892,676
Silverline Phase I Project, 5.00%, 04/01/20^(b)		1,000		1,035,750
County of Fairfax Virginia Redevelopment & Housing Authority, Refunding RB, Fairfax Redevelopment & Housing, 5.00%, 10/01/39		1,500		1,526,355
Dulles Town Center Community Development Authority, Refunding, Special Assessment, Dulles Town Center Project, 4.25%, 03/01/26		500		497,010
Lower Magnolia Green Community Development Authority, Special Assessment Bonds, 5.00%, 03/01/35^(a)		245		246,384
Mosaic District Community Development Authority, Special Assessment, Series A, 6.88%, 03/01/36		250		265,450

				7,720,568

Education — 21.6%
County of Montgomery Virginia EDA, Refunding RB, Virginia Tech Foundation, Series A, 5.00%, 06/01/20^(b)		355		369,860
Virginia College Building Authority, RB, Marymount University Project, Series B, 5.00%, 07/01/45^(a)		100		102,720
Virginia College Building Authority, Refunding RB:
Liberty University Projects, 5.00%, 03/01/41		1,000		1,029,610
Marymount University Project, Series A, 5.00%, 07/01/45^(a)		400		410,880
Washington & Lee University Project (NPFGC), 5.25%, 01/01/26		500		572,450
Washington & Lee University Project (NPFGC), 5.25%, 01/01/31		1,000		1,213,450
Virginia Small Business Financing Authority, RB:
Covanta Project, AMT, 5.00%, 01/01/48^(a)(c)		400		408,072
Roanoke College, 5.75%, 04/01/41		500		517,270
Virginia Small Business Financing Authority, Refunding RB, 4.00%, 10/01/38		500		506,115

				5,130,427

Health — 30.3%
City of Danville Virginia IDA, Refunding RB, Danville Regional Medical Center (AMBAC), 5.25%, 10/01/28^(d)		1,000		1,120,120
County of Fairfax Virginia EDA, Refunding RB, Vinson Hall LLC, Series A, 5.00%, 12/01/42		500		521,810
County of Fairfax Virginia IDA, RB, Series A, 5.00%, 05/15/44		450		491,881
County of Hanover Virginia EDA, Refunding RB, Covenant Woods, Series A, 5.00%, 07/01/42		500		510,550
County of Henrico Virginia EDA, Refunding RB, United Methodist Homes, 4.25%, 06/01/26		145		148,477
County of Prince William Virginia IDA, Refunding RB, Novant Health Obligation Group, Series B, 4.00%, 11/01/46		500		504,110
Lexington Industrial Development Authority, RB, Series A, 5.00%, 01/01/42		690		731,662


Security	Par (000)		Value

Health (continued)
Roanoke Virginia EDA, Refunding RB:
Carilion Clinic Obligation Group, 5.00%, 07/01/30	$	795	$	863,863
Carilion Health System (AGM), 5.00%, 07/01/20^(b)		5		5,217
Carilion Health System, Series B (AGM), 5.00%, 07/01/38		495		511,048
Virginia Beach Development Authority, Refunding RB, Westminster-Canterbury on Chesapeake Bay, 4.00%, 09/01/48		250		252,795
Winchester Virginia EDA, Refunding RB, Valley Health System Obligation:
5.00%, 01/01/44		1,000		1,090,150
Series A, 5.00%, 01/01/44		400		429,664

				7,181,347

Housing — 12.9%
Virginia HDA, RB, M/F Housing:
Rental Housing, Series A, 5.25%, 05/01/41		750		781,350
Rental Housing, Series B, 5.63%, 06/01/39		1,000		1,008,830
Rental Housing, Series B, 4.00%, 06/01/53		500		501,645
Rental Housing, Series F, 5.25%, 10/01/38		250		274,598
Series E, 2.50%, 12/01/22		500		502,275

				3,068,698

State — 1.8%
Virginia Public School Authority, RB, School Financing, 1997 Resolution, Series B, 4.00%, 08/01/21^(b)		405		427,279


Tobacco — 3.7%
Tobacco Settlement Financing Corp., Refunding RB, Senior:
Convertible, Series B2, 5.20%, 06/01/46		500		494,925
Series B-1, 5.00%, 06/01/47		410		390,558

				885,483

Transportation — 7.8%
Richmond Metropolitan Authority, Refunding RB, (NPFGC), 5.25%, 07/15/22		410		431,377
Virginia Port Authority, RB, 5.00%, 07/01/20^(b)		500		522,325
Virginia Small Business Financing Authority, RB, Senior Lien, Elizabeth River Crossings OpCo LLC Project, AMT, 6.00%, 01/01/37		820		895,350

				1,849,052

Utilities — 7.7%
County of Fairfax Virginia Water Authority, Refunding RB, 5.00%, 04/01/44		540		619,143
County of Henrico Virginia Water & Sewer Revenue, Refunding RB, 5.00%, 05/01/42		1,065		1,206,059

				1,825,202


Total Municipal Bonds in Virginia				28,088,056


District of Columbia — 7.5%

Transportation — 7.5%
Metropolitan Washington Airports Authority, Refunding RB:
Dulles Toll Road, 1st Senior Lien, Series A, 5.00%, 10/01/39		290		294,527
Dulles Toll Road, 1st Senior Lien, Series A, 5.25%, 10/01/44		460		467,139
Series B, 5.00%, 10/01/29		1,000		1,018,330


Total Municipal Bonds in District of Columbia				1,779,996


Puerto Rico — 1.5%

State — 0.9%
Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB, Restructured, Series A-1:
4.50%, 07/01/34		2		1,997
4.75%, 07/01/53		59		54,178
5.00%, 07/01/58		174		164,961

				221,136


50		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (unaudited) (continued)

February 28, 2019

BlackRock Virginia Municipal Bond Trust (BHV)

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Tobacco — 0.6%
Children’s Trust Fund, Refunding RB, Tobacco Settlement Asset-Backed Bonds, 5.63%, 05/15/43	$	140	$	141,462


Total Municipal Bonds in Puerto Rico				362,598


Total Municipal Bonds — 127.3% (Cost — $28,967,282)				30,230,650


Municipal Bonds Transferred to Tender Option Bond Trusts^(e)

Virginia — 34.6%

Health — 13.9%
County of Fairfax Virginia EDA, RB, Metrorail Parking System Project, 5.00%, 04/01/47^(f)		2,000		2,261,250
Virginia Small Business Financing Authority, Refunding RB, Sentara Healthcare, 5.00%, 11/01/40		1,000		1,035,203

				3,296,453

Transportation — 20.7%
Hampton Roads Transportation Accountability Commission, RB, Transportation Fund, Senior Lien, Series A, 5.00%, 07/01/48		4,308		4,925,692


Washington — 7.2%

Transportation — 7.2%
Washington Metropolitan Area Transit Authority, RB, Series B, 5.00%, 07/01/42		1,503		1,706,623


Total Municipal Bonds Transferred to Tender Option Bond Trusts — 41.8% (Cost — $9,879,325)				9,928,768


Total Long-Term Investments — 169.1% (Cost — $38,846,607)				40,159,418


Security	Shares		Value

Short-Term Securities — 0.5%
BlackRock Liquidity Funds, MuniCash, Institutional Class, 1.55%^(g)(h)		109,973	$	109,984


Total Short-Term Securities — 0.5% (Cost — $109,984)				109,984


Total Investments — 169.6% (Cost — $38,956,591)				40,269,402

Other Assets Less Liabilities — 1.8%				431,370

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (22.8)%				(5,415,532	)

VRDP Shares at Liquidation Value, Net of Deferred Offering Costs — (48.6)%				(11,539,802	)


Net Assets Applicable to Common Shares — 100.0%			$	23,745,438

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

^(b)	U.S. Government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par.

^(c)	Variable or floating rate security, which interest rate adjusts periodically based on changes in current interest rates and prepayments on the underlying pool of assets. Rate shown is the rate in effect as of period end.

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

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

^(f)	All or a portion of security is subject to a recourse agreement. The aggregate maximum potential amount the Trust could ultimately be required to pay under the agreement, which expires on October 1, 2024, is $1,051,389. See Note 4 of the Notes to Financial Statements for details.

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

^(h)	During the six months ended February 28, 2019, investments in issuers considered to be an affiliate of the Trust for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:


Affiliate	Shares Held at 08/31/18		Net Activity		Shares Held at 02/28/19		Value at 02/28/19		Income		Net Realized Gain (Loss)^(a)		Change in Unrealized Appreciation (Depreciation)
BlackRock Liquidity Funds, MuniCash, Institutional Class		13,073		96,900		109,973	$	109,984	$	4,284	$	134	$	—

^(a)

Includes net capital gain distributions, if applicable.

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts


Description	Number of Contracts		Expiration Date		Notional Amount (000)		Value/ Unrealized Appreciation (Depreciation)
Short Contracts:
10-Year U.S. Treasury Note		5		06/19/19	$	610	$	3,150
Long U.S. Treasury Bond		10		06/19/19		1,445		16,459
5-Year U.S. Treasury Note		1		06/28/19		115		342

							$	19,951


SCHEDULES OF INVESTMENTS			51

Schedule of Investments (unaudited) (continued)

February 28, 2019

BlackRock Virginia Municipal Bond Trust (BHV)

Derivative Financial Instruments Categorized by Risk Exposure

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


	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Currency Exchange Contracts		Interest Rate Contracts		Other Contracts		Total
Assets — Derivative Financial Instruments
Futures contracts
Net unrealized appreciation^(a)	$	—	$	—	$	—	$	—	$	19,951	$	—	$	19,951

^(a)

For the six months ended February 28, 2019, the effect of derivative financial instruments in the Statements of Operations was as follows:


	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Currency Exchange Contracts		Interest Rate Contracts			Other Contracts		Total
Net Realized Gain (Loss) from:
Futures contracts	$	—	$	—	$	—	$	—	$	(45,375	)	$	—	$	(45,375	)


Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts	$	—	$	—	$	—	$	—	$	18,341		$	—	$	18,341

Average Quarterly Balances of Outstanding Derivative Financial Instruments


Futures contracts:
Average notional value of contracts — short	$	1,869,684

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

Fair Value Hierarchy as of Period End

The following tables summarize the Trust’s investments and derivative financial instruments categorized in the disclosure hierarchy:


	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Long-Term Investments^(a)	$	—	$	40,159,418	$	—	$	40,159,418
Short-Term Securities		109,984		—		—		109,984

	$	109,984	$	40,159,418	$	—	$	40,269,402

Derivative Financial Instruments^(b)
Assets:
Interest rate contracts	$	19,951	$	—	$	—	$	19,951

^(a)

See above Schedule of Investments for values in each sector.

^(b)

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


	Level 1		Level 2			Level 3		Total
Liabilities:
TOB Trust Certificates	$	—	$	(5,396,436	)	$	—	$	(5,396,436	)
VRDP Shares at Liquidation Value		—		(11,600,000	)		—		(11,600,000	)

	$	—	$	(16,996,436	)	$	—	$	(16,996,436	)

During the six months ended February 28, 2019, there were no transfers between levels.

See notes to financial statements.


52		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities (unaudited)

February 28, 2019


	BZM		MHE		MHN		BQH

ASSETS
Investments at value — unaffiliated^(a)	$	48,248,929	$	51,773,710	$	736,875,484	$	71,929,880
Investments at value — affiliated^(b)		840,555		—		2,334,849		371,313
Cash		22,391		—		25,111		—
Cash pledged for futures contracts		48,350		46,050		747,850		70,350
Receivables:
Interest — unaffiliated		501,371		614,348		8,512,270		775,496
Variation margin on futures contracts		8,125		7,787		127,653		11,977
Dividends — affiliated		1,352		677		1431		102
Prepaid expenses		20,920		18,387		12,918		41,652

Total assets		49,691,993		52,460,959		748,637,566		73,200,770


ACCRUED LIABILITIES
Bank overdraft		—		317		—		9,249
Payables:
Income dividend distributions — Common Shares		98,648		104,325		1,385,375		128,805
Other accrued expenses		45,288		48,407		165,902		53,451
Investment advisory fees		22,706		19,992		288,029		30,761
Trustees’ and Officer’s fees		12,548		286		261,319		12,300
Interest expense and fees		10,290		13,548		251,582		33,036
Investments purchased		—		—		2,270,000		—

Total accrued liabilities		189,480		186,875		4,622,207		267,602


OTHER LIABILITIES
TOB Trust Certificates		2,999,064		2,465,858		55,694,616		7,857,402
VRDP Shares, at liquidation value of $100,000 per share, net of deferred offering costs^(c)(d)		15,938,872		18,429,431		243,254,940		22,001,295

Total other liabilities		18,937,936		20,895,289		298,949,556		29,858,697

Total liabilities		19,127,416		21,082,164		303,571,763		30,126,299


NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS	$	30,564,577	$	31,378,795	$	445,065,803	$	43,074,471


NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS CONSIST OF
Paid-in capital^(e)(f)(g)	$	29,490,692	$	29,301,354	$	433,321,244	$	39,693,455
Accumulated earnings		1,073,885		2,077,441		11,744,559		3,381,016

NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS	$	30,564,577	$	31,378,795	$	445,065,803	$	43,074,471


Net asset value per Common Share	$	14.69	$	13.23	$	14.30	$	15.38


^(a) Investments at cost — unaffiliated	$	47,202,086	$	49,552,861	$	706,829,589	$	67,672,793
^(b) Investments at cost — affiliated	$	840,555	$	—	$	2,334,849	$	371,313
^(c) Preferred Shares outstanding:
Par value $ 0.001 per share		160		—		—		221
Par value $0.01 per share		—		185		—		—
Par value $0.10 per share		—		—		2,436		—
^(d) Preferred Shares authorized		unlimited		unlimited		14,956		unlimited
^(e) Par value per Common Shares	$	0.001	$	0.010	$	0.1000	$	0.001
^(f) Common Shares outstanding		2,081,183		2,371,023		31,132,023		2,800,105
^(g) Common Shares authorized		unlimited		unlimited		199,985,044		unlimited

See notes to financial statements.


FINANCIAL STATEMENTS			53

Statements of Assets and Liabilities (unaudited) (continued)

February 28, 2019


	BSE		BFY		BHV

ASSETS
Investments at value — unaffiliated^(a)	$	154,423,051	$	125,717,499	$	40,159,418
Investments at value — affiliated^(b)		669,182		208,819		109,984
Cash		—		—		15,305
Cash pledged for futures contracts		147,300		115,400		32,950
Receivables:
Interest — unaffiliated		1,818,330		1,407,762		513,383
Variation margin on futures contracts		25,191		19,665		5,586
Dividends — affiliated		386		149		455
Prepaid expenses		43,214		51,759		11,283

Total assets		157,126,654		127,521,053		40,848,364


ACCRUED LIABILITIES
Bank overdraft		13,643		14,360		—
Payables:
Income dividend distributions — Common Shares		264,046		245,241		85,874
Other accrued expenses		69,254		59,218		36,097
Investment advisory fees		66,184		53,582		16,206
Trustees’ and Officer’s fees		11,868		14,454		9,415
Interest expense and fees		95,607		33,011		19,096

Total accrued liabilities		520,602		419,866		166,688


OTHER LIABILITIES
TOB Trust Certificates		22,320,197		8,058,575		5,396,436
VRDP Shares, at liquidation value of $100,000 per share, net of deferred offering costs^(c)(d)		40,393,238		44,298,879		11,539,802

Total other liabilities		62,713,435		52,357,454		16,936,238

Total liabilities		63,234,037		52,777,320		17,102,926


NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS	$	93,892,617	$	74,743,733	$	23,745,438


NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS CONSIST OF
Paid-in capital^(e)(f)(g)	$	89,254,965	$	69,885,673	$	22,911,686
Accumulated earnings		4,637,652		4,858,060		833,752

NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS	$	93,892,617	$	74,743,733	$	23,745,438


Net asset value per Common Share	$	14.40	$	14.93	$	14.79


^(a) Investments at cost — unaffiliated	$	147,666,226	$	119,355,747	$	38,846,607
^(b) Investments at cost — affiliated	$	669,182	$	208,819	$	109,984
^(c) Preferred Shares outstanding:
Par value $ 0.001 per share		405		444		116
^(d) Preferred Shares authorized		unlimited		unlimited		unlimited
^(e) Par value per Common Shares	$	0.001	$	0.001	$	0.001
^(f) Common Shares outstanding		6,519,660		5,004,922		1,605,124
^(g) Common Shares authorized		unlimited		unlimited		unlimited

See notes to financial statements.


54		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations (unaudited)

Six Months Ended February 28, 2019


	BZM			MHE			MHN			BQH

INVESTMENT INCOME
Interest — unaffiliated	$	954,442		$	1,037,938		$	14,445,361		$	1,432,612
Dividends — affiliated		8,333			5,202			16,255			1,783

Total investment income		962,775			1,043,140			14,461,616			1,434,395


EXPENSES
Investment advisory		159,136			129,173			2,023,178			230,209
Liquidity fees		58,582			—			12,303			—
Professional		22,594			21,015			47,066			23,787
Rating agency		15,507			15,510			21,592			21,463
Accounting services		9,650			9,713			55,362			11,183
Transfer agent		7,712			8,284			15,765			7,892
Remarketing fees on Preferred Shares		5,631			—			12,080			—
Printing		2,708			2,713			5,661			2,924
Trustees and Officer		1,436			943			32,527			1,526
Custodian		944			652			4,822			929
Registration		487			555			5,989			4,692
Miscellaneous		7,839			6,608			14,140			7,596

Total expenses excluding interest expense, fees and amortization of offering costs		292,226			195,166			2,250,485			312,201
Interest expense, fees and amortization of offering costs^(a)		176,724			248,671			3,567,944			344,760

Total expenses		468,950			443,837			5,818,429			656,961
Less fees waived and/or reimbursed by the Manager		(12,760	)		(347	)		(185,663	)		(35,467	)

Total expenses after fees waived and/or reimbursed		456,190			443,490			5,632,766			621,494

Net investment income		506,585			599,650			8,828,850			812,901


REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(113,900	)		74,462			(3,241,760	)		(118,964	)
Investments — affiliated		81			95			49			—
Futures contracts		(45,538	)		(46,837	)		(951,147	)		(86,064	)
Capital gain distributions from investment companies — affiliated		57			51			—			—

		(159,300	)		27,771			(4,192,858	)		(205,028	)

Net change in unrealized appreciation (depreciation) on:
Investments — unaffiliated		(82,902	)		(255,895	)		4,012,366			122,147
Investments — affiliated		—			—			(49	)		—
Futures contracts		24,598			23,838			371,123			38,246

		(58,304	)		(232,057	)		4,383,440			160,393

Net realized and unrealized gain (loss)		(217,604	)		(204,286	)		190,582			(44,635	)

NET INCREASE IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS RESULTING FROM OPERATIONS	$	288,981		$	395,364		$	9,019,432		$	768,266

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

See notes to financial statements.


FINANCIAL STATEMENTS			55

Statements of Operations (unaudited) (continued)

Six Months Ended February 28, 2019


	BSE			BFY			BHV

INVESTMENT INCOME
Interest — unaffiliated	$	2,940,359		$	2,599,974		$	844,986
Dividends — affiliated		5,672			2,362			4,284

Total investment income		2,946,031			2,602,336			849,270


EXPENSES
Investment advisory		421,818			342,909			130,770
Liquidity fees		—			—			42,472
Professional		27,307			24,398			16,956
Rating agency		21,474			21,476			15,506
Accounting services		18,853			12,712			5,973
Transfer agent		9,093			8,561			7,617
Remarketing fees on Preferred Shares		—			—			4,083
Printing		3,225			3,136			2,677
Trustees and Officer		4,928			4,252			1,245
Custodian		1,427			1,244			667
Registration		4,692			1,172			375
Miscellaneous		8,244			7,610			7,057

Total expenses excluding interest expense, fees and amortization of offering costs		521,061			427,470			235,398
Interest expense, fees and amortization of offering costs^(a)		729,224			621,194			156,524

Total expenses		1,250,285			1,048,664			391,922
Less fees waived and/or reimbursed by the Manager		(97	)		(69	)		(26,430	)

Total expenses after fees waived and/or reimbursed		1,250,188			1,048,595			365,492

Net investment income		1,695,843			1,553,741			483,778


REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(432,200	)		(322,781	)		106,311
Investments — affiliated		—			13			113
Futures contracts		(178,708	)		(138,706	)		(45,375	)
Capital gain distributions from investment companies — affiliated		—			—			21

		(610,908	)		(461,474	)		61,070

Net change in unrealized appreciation (depreciation) on:
Investments — unaffiliated		780,367			134,667			(284,060	)
Investments — affiliated		—			(13	)		—
Futures contracts		79,654			62,351			18,341

		860,021			197,005			(265,719	)

Net realized and unrealized gain (loss)		249,113			(264,469	)		(204,649	)

NET INCREASE IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS RESULTING FROM OPERATIONS	$	1,944,956		$	1,289,272		$	279,129

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

See notes to financial statements.


56		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets


	BZM						MHE
	Six Months Ended 02/28/19 (unaudited)			Year Ended 08/31/18			Six Months Ended 02/28/19 (unaudited)			Year Ended 08/31/18

INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS

OPERATIONS
Net investment income	$	506,585		$	1,138,627		$	599,650		$	1,313,939
Net realized gain (loss)		(159,300	)		268,008			27,771			112,606
Net change in unrealized appreciation (depreciation)		(58,304	)		(1,024,723	)		(232,057	)		(1,577,609	)

Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations		288,981			381,912			395,364			(151,064	)


DISTRIBUTIONS TO COMMON SHAREHOLDERS^(a)(b)
Decrease in net assets resulting from distributions to Common Shareholders		(732,202	)		(1,267,374	)		(625,962	)		(1,379,587	)


CAPITAL SHARE TRANSACTIONS
Reinvestment of common distributions		—			—			—			24,680


NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS^(b)
Total decrease in net assets applicable to Common Shareholders		(443,221	)		(885,462	)		(230,598	)		(1,505,971	)
Beginning of period		31,007,798			31,893,260			31,609,393			33,115,364

End of period	$	30,564,577		$	31,007,798		$	31,378,795		$	31,609,393

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

^(b)	Prior year distribution character information and undistributed net investment income has been modified or removed to conform with current year Regulation S-X presentation changes. Refer to Note 11 for this prior year information.

See notes to financial statements.


FINANCIAL STATEMENTS			57

Statements of Changes in Net Assets (continued)


	MHN						BQH
	Six Months Ended 02/28/19 (unaudited)			Year Ended 08/31/18			Six Months Ended 02/28/19 (unaudited)			Year Ended 08/31/18

INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS

OPERATIONS
Net investment income	$	8,828,850		$	18,810,840		$	812,901		$	1,682,937
Net realized gain (loss)		(4,192,858	)		2,573,809			(205,028	)		214,610
Net change in unrealized appreciation (depreciation)		4,383,440			(22,601,872	)		160,393			(2,161,887	)

Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations		9,019,432			(1,217,223	)		768,266			(264,340	)


DISTRIBUTIONS TO COMMON SHAREHOLDERS^(a)(b)
Decrease in net assets resulting from distributions to Common Shareholders		(8,322,430	)		(19,231,620	)		(778,578	)		(1,764,066	)


NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS^(b)
Total increase (decrease) in net assets applicable to Common Shareholders		697,002			(20,448,843	)		(10,312	)		(2,028,406	)
Beginning of period		444,368,801			464,817,644			43,084,783			45,113,189

End of period	$	445,065,803		$	444,368,801		$	43,074,471		$	43,084,783

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

^(b)	Prior year distribution character information and undistributed net investment income has been modified or removed to conform with current year Regulation S-X presentation changes. Refer to Note 11 for this prior year information.

See notes to financial statements.


58		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets (continued)


	BSE						BFY
	Six Months Ended 02/28/19 (unaudited)			Year Ended 08/31/18			Six Months Ended 02/28/19 (unaudited)			Year Ended 08/31/18

INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS

OPERATIONS
Net investment income	$	1,695,843		$	3,598,429		$	1,553,741		$	3,202,983
Net realized gain (loss)		(610,908	)		332,262			(461,474	)		410,552
Net change in unrealized appreciation (depreciation)		860,021			(4,807,235	)		197,005			(4,024,445	)

Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations		1,944,956			(876,544	)		1,289,272			(410,910	)


DISTRIBUTIONS TO COMMON SHAREHOLDERS^(a)(b)
Decrease in net assets resulting from distributions to Common Shareholders		(1,584,277	)		(3,667,309	)		(1,476,637	)		(3,303,232	)


CAPITAL SHARE TRANSACTIONS
Reinvestment of common distributions		—			—			—			4,281


NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS^(b)
Total increase (decrease) in net assets applicable to Common Shareholders		360,679			(4,543,853	)		(187,365	)		(3,709,861	)
Beginning of period		93,531,938			98,075,791			74,931,098			78,640,959

End of period	$	93,892,617		$	93,531,938		$	74,743,733		$	74,931,098

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

^(b)	Prior year distribution character information and undistributed net investment income has been modified or removed to conform with current year Regulation S-X presentation changes. Refer to Note 11 for this prior year information.

See notes to financial statements.


FINANCIAL STATEMENTS			59

Statements of Changes in Net Assets (continued)


	BHV
	Six Months Ended 02/28/19 (unaudited)			Year Ended 08/31/18

INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS

OPERATIONS
Net investment income	$	483,778		$	1,104,663
Net realized gain		61,070			260,327
Net change in unrealized appreciation (depreciation)		(265,719	)		(1,376,380	)

Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations		279,129			(11,390	)


DISTRIBUTIONS TO COMMON SHAREHOLDERS^(a)(b)
Decrease in net assets resulting from distributions to Common Shareholders		(560,854	)		(1,245,984	)


CAPITAL SHARE TRANSACTIONS
Reinvestment of common distributions		21,271			47,740


NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS^(b)
Total decrease in net assets applicable to Common Shareholders		(260,454	)		(1,209,634	)
Beginning of period		24,005,892			25,215,526

End of period	$	23,745,438		$	24,005,892

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

^(b)	Prior year distribution character information and undistributed net investment income has been modified or removed to conform with current year Regulation S-X presentation changes. Refer to Note 11 for this prior year information.

See notes to financial statements.


60		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Cash Flows (unaudited)

Six Months Ended February 28, 2019


	BZM			MHE			MHN			BQH

CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES
Net increase in net assets resulting from operations	$	288,981		$	395,364		$	9,019,432		$	768,266
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by (used for) operating activities:
Proceeds from sales of long-term investments and principal paydowns		3,827,976			1,816,289			140,403,884			12,040,928
Purchases of long-term investments		(3,454,013	)		(1,639,174	)		(133,785,423	)		(13,392,460	)
Net proceeds from sales (purchases) of short-term securities		(566,616	)		427,715			348,917			(27,955	)
Amortization of premium and accretion of discount on investments and other fees		136,053			158,870			2,321,172			154,364
Net realized gain (loss) on investments		113,819			(74,557	)		3,241,711			118,964
Net unrealized (appreciation) depreciation on investments		82,902			255,895			(4,012,317	)		(122,147	)

(Increase) Decrease in Assets:
Receivables:
Interest — unaffiliated		17,362			4,497			(41,266	)		(8,105	)
Dividends — affiliated		(973	)		100			2,075			348
Variation margin on futures contracts		(8,125	)		(7,787	)		(127,653	)		(11,977	)
Prepaid expenses		(8,028	)		(7,957	)		16,895			2,161

Increase (Decrease) in Liabilities:
Payables:
Investment advisory fees		(2,576	)		(2,008	)		(31,377	)		(2,539	)
Interest expense and fees		1,833			3,012			1,300			9,373
Trustees’ and Officer’s fees		311			(196	)		4,787			110
Variation margin on futures contracts		(844	)		(846	)		(10,680	)		(929	)
Other accrued expenses		(22,670	)		(20,238	)		(53,857	)		(24,076	)

Net cash provided by (used for) operating activities		405,392			1,308,979			17,297,600			(495,674	)


CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES
Proceeds from TOB Trust Certificates		361,957			—			6,808,188			1,822,006
Repayments of TOB Trust Certificates		—			(670,000	)		(15,375,904	)		(524,896	)
Cash dividends paid to Common Shareholders		(732,202	)		(625,950	)		(8,322,430	)		(778,578	)
Increase in bank overdraft		—			317			—			9,249
Amortization of deferred offering costs		1,506			1,654			7,657			2,893

Net cash provided by (used for) financing activities		(368,739	)		(1,293,979	)		(16,882,489	)		530,674


CASH
Net increase in restricted and unrestricted cash and foreign currency	$	36,653		$	15,000		$	415,111		$	35,000
Restricted and unrestricted cash and foreign currency at beginning of period		34,088			31,050			357,850			35,350

Restricted and unrestricted cash and foreign currency at end of period	$	70,741		$	46,050		$	772,961		$	70,350


SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid during the period for interest expense	$	173,385		$	244,005		$	3,558,987		$	332,494


RECONCILIATION OF RESTRICTED AND UNRESTRICTED CASH AT THE END OF PERIOD TO THE STATEMENTS OF ASSETS AND LIABILITIES
Cash	$	22,391		$	—		$	25,111		$	—
Cash pledged:
Futures contracts		48,350			46,050			747,850			70,350

	$	70,741		$	46,050		$	772,961		$	70,350


RECONCILIATION OF RESTRICTED AND UNRESTRICTED CASH AT THE BEGINNING OF PERIOD TO THE STATEMENTS OF ASSETS AND LIABILITIES
Cash	$	738		$	—		$	—		$	—
Cash pledged:
Futures contracts		33,350			31,050			357,850			35,350

	$	34,088		$	31,050		$	357,850		$	35,350

See notes to financial statements.


FINANCIAL STATEMENTS			61

Statements of Cash Flows (unaudited) (continued)

Six Months Ended February 28, 2019


	BSE			BFY			BHV

CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES
Net increase in net assets resulting from operations	$	1,944,956		$	1,289,272		$	279,129
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by (used for) operating activities:
Proceeds from sales of long-term investments and principal paydowns		21,865,310			23,435,196			5,603,465
Purchases of long-term investments		(22,911,173	)		(24,072,777	)		(5,478,604	)
Net proceeds from sales (purchases) of short-term securities		3,983			(79,569	)		(96,797	)
Amortization of premium and accretion of discount on investments and other fees		527,675			235,964			84,583
Net realized gain (loss) on investments		432,200			322,768			(106,424	)
Net unrealized (appreciation) depreciation on investments		(780,367	)		(134,654	)		284,060

(Increase) Decrease in Assets:
Receivables:
Interest — unaffiliated		(38,164	)		(33,058	)		26,226
Dividends — affiliated		312			795			(381	)
Variation margin on futures contracts		(25,191	)		(19,665	)		(5,586	)
Prepaid expenses		17,293			13,711			(8,179	)

Increase (Decrease) in Liabilities:
Payables:
Investment advisory fees		(6,168	)		(5,420	)		(1,899	)
Interest expense and fees		22,533			7,707			4,113
Trustees’ and Officer’s fees		615			729			289
Variation margin on futures contracts		(2,820	)		(1,992	)		(321	)
Other accrued expenses		(28,344	)		(26,133	)		(16,734	)

Net cash provided by operating activities		1,022,650			932,874			566,940


CASH USED FOR FINANCING ACTIVITIES
Proceeds from TOB Trust Certificates		1,367,994			1,807,994			867,746
Repayments of TOB Trust Certificates		(750,000	)		(1,224,730	)		(845,917	)
Cash dividends paid to Common Shareholders		(1,584,277	)		(1,476,637	)		(554,745	)
Increase in bank overdraft		13,534			14,360			–—
Amortization of deferred offering costs		3,099			3,139			1,281

Net cash used for financing activities		(949,650	)		(875,874	)		(531,635	)


CASH
Net increase in restricted and unrestricted cash and foreign currency	$	73,000		$	57,000		$	35,305
Restricted and unrestricted cash and foreign currency at beginning of period		74,300			58,400			12,950

Restricted and unrestricted cash and foreign currency at end of period	$	147,300		$	115,400		$	48,255


SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid during the period for interest expense	$	703,592		$	610,348		$	151,130


NON-CASH FINANCING ACTIVITIES
Capital shares issued in reinvestment of distributions paid to Common Shareholders	$	—		$	—		$	21,271


RECONCILIATION OF RESTRICTED AND UNRESTRICTED CASH AT THE END OF PERIOD TO THE STATEMENTS OF ASSETS AND LIABILITIES
Cash	$	—		$	—		$	15,305
Cash pledged:
Futures contracts		147,300			115,400			32,950

	$	147,300		$	115,400		$	48,255


RECONCILIATION OF RESTRICTED AND UNRESTRICTED CASH AT THE BEGINNING OF PERIOD TO THE STATEMENTS OF ASSETS AND LIABILITIES
Cash	$	—		$	—		$	—
Cash pledged:
Futures contracts		74,300			58,400			12,950

	$	74,300		$	58,400		$	12,950

See notes to financial statements.


62		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights

(For a share outstanding throughout each period)


	BZM
	Six Months Ended 02/28/19 (unaudited)			Year Ended August 31,
	Six Months Ended 02/28/19 (unaudited)			2018			2017			2016			2015			2014

Net asset value, beginning of period	$	14.90		$	15.32		$	15.97		$	14.96		$	15.20		$	13.33

Net investment income^(a)		0.24			0.55			0.59			0.61			0.63			0.70
Net realized and unrealized gain (loss)		(0.10	)		(0.36	)		(0.67	)		1.02			(0.19	)		1.90

Net increase (decrease) from investment operations		0.14			0.19			(0.08	)		1.63			0.44			2.60


Distributions to Common Shareholders^(b)
From net investment income		(0.28	)		(0.57	)		(0.57	)		(0.62	)		(0.68	)		(0.73	)
From net realized gain		(0.07	)		(0.04	)		—			—			—			—

Total distributions to Common Shareholders		(0.35	)		(0.61	)		(0.57	)		(0.62	)		(0.68	)		(0.73	)


Net asset value, end of period	$	14.69		$	14.90		$	15.32		$	15.97		$	14.96		$	15.20


Market price, end of period	$	13.92		$	14.04		$	14.29		$	16.06		$	14.44		$	14.59


Total Return Applicable to Common Shareholders^(c)
Based on net asset value		1.13	%^(d)		1.67	%		(0.31	)%		11.15	%		3.07	%		20.39	%

Based on market price		1.70	%^(d)		2.71	%		(7.53	)%		15.80	%		3.64	%		21.68	%


Ratios to Average Net Assets Applicable to Common Shareholders
Total expenses		3.11	%^(e)(f)		2.75	%		2.35	%		2.10	%		1.96	%		2.00	%

Total expenses after fees waived and paid indirectly		3.03	%^(e)(f)		2.67	%		2.27	%		2.02	%		1.88	%		1.92	%

Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense and fees, and amortization of offering costs^(g)(h)		1.85	%^(e)(f)		1.78	%		1.75	%		1.83	%		1.41	%		1.34	%

Net investment income to Common Shareholders		3.36	%^(e)(f)		3.63	%		3.87	%		3.98	%		4.19	%		4.88	%


Supplemental Data
Net assets applicable to Common Shareholders, end of period (000)	$	30,565		$	31,008		$	31,893		$	33,202		$	31,073		$	31,535

VRDP Shares outstanding at $100,000 liquidation value, end of period (000)	$	16,000		$	16,000		$	16,000		$	16,000		$	16,000		$	16,000

Asset coverage per VRDP Shares at $100,000 liquidation value, end of period	$	291,029		$	293,799		$	299,333		$	307,510		$	294,207		$	297,091

Borrowings outstanding, end of period (000)	$	2,999		$	2,637		$	2,134		$	1,500		$	1,500		$	1,500

Portfolio turnover rate		7	%		16	%		12	%		11	%		18	%		15	%

^(a)	Based on average Common Shares outstanding.

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

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

^(d)	Aggregate total return.

^(e)	Annualized.

^(f)	Excludes 0.01% of expenses incurred indirectly as a result of investments in underlying funds.

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

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


	Six Months Ended 02/28/19 (unaudited)			Year Ended August 31,
	Six Months Ended 02/28/19 (unaudited)			2018			2017			2016			2015			2014
Expense ratios		1.43	%		1.38	%		1.31	%		1.39	%		1.33	%		1.34	%

See notes to financial statements.


FINANCIAL HIGHLIGHTS			63

Financial Highlights (continued)

(For a share outstanding throughout each period)


	MHE
	Six Months Ended 02/28/19 (unaudited)			Year Ended August 31,
	Six Months Ended 02/28/19 (unaudited)			2018			2017			2016			2015			2014

Net asset value, beginning of period	$	13.33		$	13.98		$	14.69		$	13.89		$	14.02		$	12.34

Net investment income^(a)		0.25			0.55			0.62			0.65			0.68			0.69
Net realized and unrealized gain (loss)		(0.09	)		(0.62	)		(0.69	)		0.83			(0.10	)		1.74

Net increase (decrease) from investment operations		0.16			(0.07	)		(0.07	)		1.48			0.58			2.43

Distributions to Common Shareholders from net investment income^(b)		(0.26	)		(0.58	)		(0.64	)		(0.68	)		(0.71	)		(0.75	)


Net asset value, end of period	$	13.23		$	13.33		$	13.98		$	14.69		$	13.89		$	14.02


Market price, end of period	$	12.28		$	12.38		$	14.00		$	15.32		$	13.26		$	13.75


Total Return Applicable to Common Shareholders^(c)
Based on net asset value		1.46	%^(d)		(0.41	)%		(0.34	)%		11.01	%		4.25	%		20.47	%

Based on market price		1.40	%^(d)		(7.64	)%		(4.30	)%		21.27	%		1.47	%		22.42	%


Ratios to Average Net Assets Applicable to Common Shareholders
Total expenses		2.89	%^(e)		2.50	%		2.17	%		1.77	%		1.71	%		1.78	%

Total expenses after fees waived and paid indirectly		2.88	%^(e)		2.50	%		2.17	%		1.77	%		1.71	%		1.78	%

Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense and fees, and amortization of offering costs^(f)(g)		1.27	%^(e)		1.20	%		1.18	%		1.15	%		1.15	%		1.16	%

Net investment income to Common Shareholders		3.90	%^(e)		4.08	%		4.44	%		4.53	%		4.82	%		5.22	%


Supplemental Data
Net assets applicable to Common Shareholders, end of period (000)	$	31,379		$	31,609		$	33,115		$	34,772		$	32,864		$	33,139

VRDP Shares outstanding at $100,000 liquidation value, end of period (000)	$	18,500		$	18,500		$	18,500		$	18,500		$	18,500		$	18,500

Asset coverage per VRDP Shares at $100,000 liquidation value, end of period	$	269,615		$	270,862		$	279,002		$	287,959		$	277,646		$	279,130

Borrowings outstanding, end of period (000)	$	2,466		$	3,136		$	1,421		$	751		$	—		$	—

Portfolio turnover rate		3	%		17	%		18	%		30	%		8	%		14	%

^(a)	Based on average Common Shares outstanding.

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

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

^(d)	Aggregate total return.

^(e)	Annualized.

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

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


	Six Months Ended 02/28/19 (unaudited)			Year Ended August 31,
	Six Months Ended 02/28/19 (unaudited)			2018			2017			2016			2015			2014
Expense ratios		1.27	%		1.20	%		1.18	%		1.15	%		1.15	%		1.16	%

See notes to financial statements.


64		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (continued)

(For a share outstanding throughout each period)


	MHN
	Six Months Ended 02/28/19 (unaudited)			Year Ended August 31,
	Six Months Ended 02/28/19 (unaudited)			2018			2017			2016			2015			2014

Net asset value, beginning of period	$	14.27		$	14.93		$	15.69		$	14.81		$	14.98		$	13.14

Net investment income^(a)		0.28			0.60			0.69			0.75			0.80			0.83
Net realized and unrealized gain (loss)		0.02			(0.64	)		(0.75	)		0.91			(0.15	)		1.88

Net increase (decrease) from investment operations		0.30			(0.04	)		(0.06	)		1.66			0.65			2.71

Distributions to Common Shareholders from net investment income^(b)		(0.27	)		(0.62	)		(0.70	)		(0.78	)		(0.82	)		(0.87	)


Net asset value, end of period	$	14.30		$	14.27		$	14.93		$	15.69		$	14.81		$	14.98


Market price, end of period	$	12.51		$	12.35		$	14.36		$	15.04		$	13.65		$	13.64


Total Return Applicable to Common Shareholders^(c)
Based on net asset value		2.43	%^(d)		0.22	%		0.04	%		11.63	%		4.88	%		21.74	%

Based on market price		3.54	%^(d)		(9.82	)%		0.37	%		16.10	%		6.16	%		15.15	%


Ratios to Average Net Assets Applicable to Common Shareholders
Total expenses		2.68	%^(e)		2.45	%		2.13	%		1.68	%		1.58	%		1.66	%

Total expenses after fees waived and paid indirectly		2.59	%^(e)		2.36	%		2.05	%		1.62	%		1.52	%		1.59	%

Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense, fees, and amortization of offering costs^(f)(g)		0.95	%^(e)		0.94	%		0.96	%		0.95	%		0.95	%		1.22	%

Net investment income to Common Shareholders		4.06	%^(e)		4.15	%		4.65	%		4.91	%		5.35	%		5.86	%


Supplemental Data
Net assets applicable to Common Shareholders, end of period (000)	$	445,066		$	444,369		$	464,818		$	488,318		$	461,159		$	466,412

VRDP Shares outstanding at $100,000 liquidation value, end of period (000)	$	243,600		$	243,600		$	243,600		$	243,600		$	243,600		$	243,600

Asset coverage per VRDP Shares at $100,000 liquidation value, end of period	$	282,704		$	282,417		$	290,812		$	300,459		$	289,310		$	291,466

Borrowings outstanding, end of period (000)	$	55,695		$	64,262		$	70,007		$	76,443		$	53,308		$	51,890

Portfolio turnover rate		18	%		15	%		17	%		13	%		19	%		16	%

^(a)	Based on average Common Shares outstanding.

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

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

^(d)	Aggregate total return.

^(e)	Annualized.

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

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


	Six Months Ended 02/28/19 (unaudited)			Year Ended August 31,
	Six Months Ended 02/28/19 (unaudited)			2018			2017			2016			2015			2014
Expense ratios		0.94	%		0.94	%		0.95	%		0.94	%		0.94	%		0.95	%

See notes to financial statements.


FINANCIAL HIGHLIGHTS			65

Financial Highlights (continued)

(For a share outstanding throughout each period)


	BQH
	Six Months Ended 02/28/19 (unaudited)			Year Ended August 31,
	Six Months Ended 02/28/19 (unaudited)			2018			2017			2016			2015			2014

Net asset value, beginning of period	$	15.39		$	16.11		$	16.99		$	15.75		$	15.77		$	13.32

Net investment income^(a)		0.29			0.60			0.67			0.71			0.74			0.79
Net realized and unrealized gain (loss)		(0.02	)		(0.69	)		(0.84	)		1.27			0.03			2.46

Net increase (decrease) from investment operations		0.27			(0.09	)		(0.17	)		1.98			0.77			3.25

Distributions to Common Shareholders from net investment income^(b)		(0.28	)		(0.63	)		(0.71	)		(0.74	)		(0.79	)		(0.80	)


Net asset value, end of period	$	15.38		$	15.39		$	16.11		$	16.99		$	15.75		$	15.77


Market price, end of period	$	13.60		$	13.01		$	14.55		$	15.70		$	13.66		$	13.86


Total Return Applicable to Common Shareholders^(c)
Based on net asset value		2.07	%^(d)		(0.03	)%		(0.47	)%		13.22	%		5.57	%		25.66	%

Based on market price		6.77	%^(d)		(6.44	)%		(2.73	)%		20.63	%		4.18	%		18.16	%


Ratios to Average Net Assets Applicable to Common Shareholders
Total expenses		3.12	%^(e)		2.78	%		2.44	%		2.10	%		2.08	%		2.23	%

Total expenses after fees waived and/or reimbursed and paid indirectly		2.95	%^(e)		2.61	%		2.28	%		2.07	%		2.07	%		2.23	%

Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense, fees and amortization of offering costs^(f)(g)		1.32	%^(e)		1.26	%		1.24	%		1.48	%		1.91	%		2.02	%

Net investment income to Common Shareholders		3.87	%^(e)		3.84	%		4.21	%		4.31	%		4.68	%		5.45	%


Supplemental Data
Net assets applicable to Common Shareholders, end of period (000)	$	43,074		$	43,085		$	45,113		$	47,581		$	44,111		$	44,158

VRDP Shares outstanding at $100,000 liquidation value, end of period (000)	$	22,100		$	22,100		$	22,100		$	22,100		$	22,100		$	22,100

Asset coverage per VRDP Shares at $100,000 liquidation value, end of period	$	294,907		$	294,954		$	304,132		$	315,300		$	299,597		$	299,812

Borrowings outstanding, end of period (000)	$	7,857		$	6,560		$	6,521		$	6,381		$	5,070		$	4,900

Portfolio turnover rate		16	%		11	%		17	%		13	%		22	%		18	%

^(a)	Based on average Common Shares outstanding.

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

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

^(d)	Aggregate total return.

^(e)	Annualized.

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

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


	Six Months Ended 02/28/19 (unaudited)			Year Ended August 31,
	Six Months Ended 02/28/19 (unaudited)			2018			2017			2016			2015			2014
Expense ratios		1.32	%		1.26	%		1.24	%		1.41	%		1.41	%		1.46	%

See notes to financial statements.


66		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (continued)

(For a share outstanding throughout each period)


	BSE
	Six Months Ended 02/28/19 (unaudited)			Year Ended August 31,
	Six Months Ended 02/28/19 (unaudited)			2018			2017			2016			2015			2014

Net asset value, beginning of period	$	14.35		$	15.04		$	15.84		$	14.81		$	14.92		$	12.92

Net investment income^(a)		0.26			0.55			0.63			0.68			0.70			0.72
Net realized and unrealized gain (loss)		0.03			(0.68	)		(0.80	)		1.03			(0.08	)		2.05

Net increase (decrease) from investment operations		0.29			(0.13	)		(0.17	)		1.71			0.62			2.77

Distributions to Common Shareholders from net investment income^(b)		(0.24	)		(0.56	)		(0.63	)		(0.68	)		(0.73	)		(0.77	)


Net asset value, end of period	$	14.40		$	14.35		$	15.04		$	15.84		$	14.81		$	14.92


Market price, end of period	$	12.59		$	12.65		$	13.55		$	14.84		$	12.99		$	13.16


Total Return Applicable to Common Shareholders^(c)
Based on net asset value		2.34	%^(d)		(0.33	)%		(0.55	)%		12.22	%		4.88	%		22.65	%

Based on market price		1.50	%^(d)		(2.47	)%		(4.36	)%		19.87	%		4.29	%		15.99	%


Ratios to Average Net Assets Applicable to Common Shareholders
Total expenses		2.73	%^(e)		2.41	%		2.10	%		1.76	%		1.70	%		1.75	%

Total expenses after fees waived and paid indirectly		2.73	%^(e)		2.41	%		2.09	%		1.75	%		1.70	%		1.75	%

Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense, fees, and amortization of offering costs^(f)(g)		1.14	%^(e)		1.10	%		1.10	%		1.17	%		1.51	%		1.55	%

Net investment income to Common Shareholders		3.70	%^(e)		3.77	%		4.23	%		4.40	%		4.72	%		5.18	%


Supplemental Data
Net assets applicable to Common Shareholders, end of period (000)	$	93,893		$	93,532		$	98,076		$	103,296		$	96,587		$	97,276

VRDP Shares outstanding at $100,000 liquidation value, end of period (000)	$	40,500		$	40,500		$	40,500		$	40,500		$	40,500		$	40,500

Asset coverage per VRDP Shares at $100,000 liquidation value, end of period	$	331,834		$	330,943		$	342,162		$	355,052		$	338,486		$	340,188

Borrowings outstanding, end of period (000)	$	22,320		$	21,702		$	20,604		$	21,873		$	18,091		$	17,431

Portfolio turnover rate		14	%		16	%		13	%		8	%		20	%		24	%

^(a)	Based on average Common Shares outstanding.

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

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

^(d)	Aggregate total return.

^(e)	Annualized.

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

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


	Six Months Ended 02/28/19 (unaudited)			Year Ended August 31,
	Six Months Ended 02/28/19 (unaudited)			2018			2017			2016			2015			2014
Expense ratios		1.14	%		1.10	%		1.10	%		1.12	%		1.09	%		1.09	%

See notes to financial statements.


FINANCIAL HIGHLIGHTS			67

Financial Highlights (continued)

(For a share outstanding throughout each period)


	BFY
	Six Months Ended 02/28/19 (unaudited)			Year Ended August 31,
	Six Months Ended 02/28/19 (unaudited)			2018			2017			2016			2015			2014

Net asset value, beginning of period	$	14.97		$	15.71		$	16.58		$	15.57		$	15.66		$	13.36

Net investment income^(a)		0.31			0.64			0.71			0.78			0.82			0.84
Net realized and unrealized gain (loss)		(0.05	)		(0.72	)		(0.82	)		1.06			(0.07	)		2.30

Net increase (decrease) from investment operations		0.26			(0.08	)		(0.11	)		1.84			0.75			3.14

Distributions to Common Shareholders from net investment income^(b)		(0.30	)		(0.66	)		(0.76	)		(0.83	)		(0.84	)		(0.84	)


Net asset value, end of period	$	14.93		$	14.97		$	15.71		$	16.58		$	15.57		$	15.66


Market price, end of period	$	13.10		$	12.77		$	15.51		$	17.01		$	14.16		$	14.02


Total Return Applicable to Common Shareholders^(c)
Based on net asset value		2.06	%^(d)		(0.08	)%		(0.37	)%		12.24	%		5.33	%		24.75	%

Based on market price		4.98	%^(d)		(13.66	)%		(4.13	)%		26.61	%		7.00	%		18.80	%


Ratios to Average Net Assets Applicable to Common Shareholders
Total expenses		2.87	%^(e)		2.57	%		2.21	%		1.86	%		1.83	%		1.96	%

Total expenses after fees waived and/or reimbursed and paid indirectly		2.87	%^(e)		2.56	%		2.21	%		1.85	%		1.83	%		1.95	%

Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense, fees, and amortization of offering costs^(f)(g)		1.17	%^(e)		1.13	%		1.12	%		1.23	%		1.69	%		1.78	%

Net investment income to Common Shareholders		4.25	%^(e)		4.20	%		4.60	%		4.83	%		5.25	%		5.76	%


Supplemental Data
Net assets applicable to Common Shareholders, end of period (000)	$	74,744		$	74,931		$	78,641		$	82,927		$	77,854		$	78,304

VRDP Shares outstanding at $100,000 liquidation value, end of period (000)	$	44,400		$	44,400		$	44,400		$	44,400		$	44,400		$	44,400

Asset coverage per VRDP Shares at $100,000 liquidation value, end of period	$	268,342		$	268,764		$	277,119		$	286,771		$	275,347		$	276,360

Borrowings outstanding, end period (000)	$	8,059		$	7,475		$	7,817		$	8,061		$	5,895		$	5,725

Portfolio turnover rate		18	%		12	%		14	%		17	%		20	%		21	%

^(a)	Based on average Common Shares outstanding.

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

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

^(d)	Aggregate total return.

^(e)	Annualized.

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

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


	Six Months Ended 02/28/19 (unaudited)			Year Ended August 31,
	Six Months Ended 02/28/19 (unaudited)			2018			2017			2016			2015			2014
Expense ratios		1.17	%		1.13	%		1.12	%		1.16	%		1.13	%		1.15	%

See notes to financial statements.


68		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (continued)

(For a share outstanding throughout each period)


	BHV
	Six Months Ended 02/28/19 (unaudited)			Year Ended August 31,
	Six Months Ended 02/28/19 (unaudited)			2018			2017			2016			2015			2014

Net asset value, beginning of period	$	14.97		$	15.75		$	16.56		$	15.90		$	15.95		$	14.03

Net investment income^(a)		0.30			0.69			0.78			0.81			0.81			0.83
Net realized and unrealized gain (loss)		(0.13	)		(0.69	)		(0.83	)		0.66			(0.01	)		1.95

Net increase (decrease) from investment operations		0.17			—			(0.05	)		1.47			0.80			2.78

Distributions to Common Shareholders from net investment income^(b)		(0.35	)		(0.78	)		(0.76	)		(0.81	)		(0.85	)		(0.86	)


Net asset value, end of period	$	14.79		$	14.97		$	15.75		$	16.56		$	15.90		$	15.95


Market price, end of period	$	16.20		$	16.56		$	18.68		$	19.14		$	16.70		$	16.35


Total Return Applicable to Common Shareholders^(c)
Based on net asset value		1.04	%^(d)		(0.20	)%		(0.44	)%		9.05	%		5.02	%		20.31	%

Based on market price		0.05	%^(d)		(6.91	)%		2.17	%		20.00	%		7.61	%		16.06	%


Ratios to Average Net Assets Applicable to Common Shareholders
Total expenses		3.35	%^(e)^(f)		2.94	%		2.46	%		2.16	%		1.98	%		2.01	%

Total expenses after fees waived and paid indirectly		3.13	%^(e)^(f)		2.72	%		2.25	%		1.95	%		1.77	%		1.96	%

Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense, fees and amortization of offering costs^(g)(h)		1.79	%^(e)^(f)		1.70	%		1.61	%		1.70	%		1.30	%		1.38	%

Net investment income to Common Shareholders		4.14	%^(e)^(f)		4.51	%		4.95	%		5.00	%		5.08	%		5.52	%


Supplemental Data
Net assets applicable to Common Shareholders, end of period (000)	$	23,745		$	24,006		$	25,216		$	26,462		$	25,336		$	25,373

VRDP Shares outstanding at $100,000 liquidation value, end of period (000)	$	11,600		$	11,600		$	11,600		$	11,600		$	11,600		$	11,600

Asset coverage per VRDP Shares at $100,000 liquidation value, end of period	$	304,702		$	306,947		$	317,375		$	328,121		$	318,414		$	318,733

Borrowings outstanding, end of period (000)	$	5,396		$	5,396		$	4,360		$	3,860		$	3,019		$	3,019

Portfolio turnover rate		10	%		26	%		10	%		6	%		9	%		11	%

^(a)	Based on average Common Shares outstanding.

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

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

^(d)	Aggregate total return.

^(e)	Annualized.

^(f)	Excludes 0.01% of expenses incurred indirectly as a result of investments in underlying funds.

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

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


	Six Months Ended 02/28/19 (unaudited)			Year Ended August 31,
	Six Months Ended 02/28/19 (unaudited)			2018			2017			2016			2015			2014
Expense ratios		1.39	%		1.32	%		1.22	%		1.30	%		1.23	%		1.38	%

See notes to financial statements.


FINANCIAL HIGHLIGHTS			69

Notes to Financial Statements (unaudited)

1.	*ORGANIZATION*

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


Trust Name	Herein Referred To As	Organized	Diversification Classification
BlackRock Maryland Municipal Bond Trust	BZM	Delaware	Non-diversified
BlackRock Massachusetts Tax-Exempt Trust	MHE	Massachusetts	Non-diversified
BlackRock MuniHoldings New York Quality Fund, Inc.	MHN	Maryland	Non-diversified
BlackRock New York Municipal Bond Trust	BQH	Delaware	Diversified
BlackRock New York Municipal Income Quality Trust	BSE	Delaware	Non-diversified
BlackRock New York Municipal Income Trust II	BFY	Delaware	Non-diversified
BlackRock Virginia Municipal Bond Trust	BHV	Delaware	Non-diversified

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

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

2.	*SIGNIFICANT ACCOUNTING POLICIES*

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

Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed (the “trade dates”). Realized gains and losses on investment transactions are determined on the identified cost basis. Dividend income is recorded on the ex-dividend date. Interest income, including amortization and accretion of premiums and discounts on debt securities, is recognized on an accrual basis.

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

Distributions: Distributions from net investment income are declared monthly and paid monthly. Distributions of capital gains are recorded on the ex-dividend date and made at least annually. The character and timing of distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP. Distributions to Preferred Shareholders are accrued and determined as described in Note 10.

Deferred Compensation Plan: Under the Deferred Compensation Plan (the “Plan”) approved by each Trust’s Board, the independent Trustees (“Independent Trustees”) may defer a portion of their annual complex-wide compensation. Deferred amounts earn an approximate return as though equivalent dollar amounts had been invested in common shares of certain funds in the BlackRock Fixed-Income Complex selected by the Independent Trustees. This has the same economic effect for the Independent Trustees as if the Independent Trustees had invested the deferred amounts directly in certain funds in the BlackRock Fixed-Income Complex.

The Plan is not funded and obligations thereunder represent general unsecured claims against the general assets of each Trust, as applicable. Deferred compensation liabilities are included in the Trustees’ and Officer’s fees payable in the Statements of Assets and Liabilities and will remain as a liability of the Trusts until such amounts are distributed in accordance with the Plan.

Recent Accounting Standards: In March 2017, the Financial Accounting Standards Board issued Accounting Standards Update “Premium Amortization of Purchased Callable Debt Securities” which amends the amortization period for certain purchased callable debt securities. Under the new guidance, the premium amortization of purchased callable debt securities that have explicit, non-contingent call features and are callable at fixed prices will be amortized to the earliest call date. The guidance will be applied on a modified retrospective basis and is effective for fiscal years, and their interim periods, beginning after December 15, 2018. Management continues to evaluate the impact of this guidance to the Trusts.

In August 2018, the Financial Accounting Standards Board issued Accounting Standards Update 2018-13 “Changes to the Disclosure Requirements for Fair Value Measurement” which modifies disclosure requirements for fair value measurements. The guidance is effective for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years. Management continues to evaluate the impact of this guidance to the Trusts.

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


70		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (unaudited) (continued)

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

3.	*INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS*

Investment Valuation Policies: The Trusts’ investments are valued at fair value (also referred to as “market value” within the financial statements) as of the close of trading on the New York Stock Exchange (“NYSE”) (generally 4:00 p.m., Eastern time). U.S. GAAP defines fair value as the price the Trusts would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Trusts determine the fair values of their financial instruments using various independent dealers or pricing services under policies approved by the Board of Trustees. The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.

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

•

Municipal investments (including commitments to purchase such investments on a “when-issued” basis) are valued on the basis of prices provided by dealers or pricing services. In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, pricing matrixes, market transactions in comparable investments and information with respect to various relationships between investments.

•

Investments in open-end U.S. mutual funds are valued at NAV each business day.

•

Futures contracts traded on exchanges are valued at their last sale price.

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

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

•

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

•

Level 2 — Other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market–corroborated inputs)

•

Level 3 — Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including each Trust’s own assumptions used in determining the fair value of investments and derivative financial instruments)

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the Global Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by privately held companies or funds. There may not be a secondary market, and/or there are a limited number of investors. Level 3 investments may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated by the Global Valuation Committee in the absence of market information.

Changes in valuation techniques may result in transfers into or out of an assigned level within the hierarchy. In accordance with each Trust’s policy, transfers between different levels of the fair value hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investments and derivative financial instruments and is not necessarily an indication of the risks associated with investing in those securities.

4.	*SECURITIES AND OTHER INVESTMENTS*

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

Forward Commitments and When-Issued Delayed Delivery Securities: Certain 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. A fund


NOTES TO FINANCIAL STATEMENTS			71

Notes to Financial Statements (unaudited) (continued)

may purchase securities under such conditions with the intention of actually acquiring them, but may enter into a separate agreement to sell the securities before the settlement date. Since the value of securities purchased may fluctuate prior to settlement, a fund may be required to pay more at settlement than the security is worth. In addition, a fund is not entitled to any of the interest earned prior to settlement. When purchasing a security on a delayed delivery basis, a fund assumes the rights and risks of ownership of the security, including the risk of price and yield fluctuations. In the event of default by the counterparty, a fund’s maximum amount of loss is the unrealized appreciation of unsettled when-issued transactions.

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

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

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

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

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

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

Amounts recorded within interest expense, fees and amortization of offering costs in the Statements of Operations are:


	Interest Expense		Liquidity Fees		Other Expenses		Total
BZM	$	23,569	$	6,772	$	1,839	$	32,180
MHE		20,351		4,862		1,623		26,836
MHN		474,981		131,128		43,471		649,580
BQH		54,905		15,061		4,957		74,923
BSE		173,634		50,927		13,944		238,505
BFY		60,357		17,720		4,570		82,647
BHV		42,760		11,567		3,679		58,006


72		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (unaudited) (continued)

For the six months ended February 28, 2019, the following table is a summary of each Trust’s TOB Trusts:


	Underlying Municipal Bonds Transferred to TOB Trusts^(a)		Liability for TOB Trust Certificates^(b)		Range of Interest Rates on TOB Trust Certificates at Period End			Average TOB Trust Certificates Outstanding		Daily Weighted Average Rate of Interest and Other Expenses on TOB Trusts
BZM	$	5,444,725	$	2,999,064		1.78% - 1.78	%	$	2,975,133		2.18	%
MHE		3,810,204		2,465,858		1.78 - 1.79			2,565,802		2.11
MHN		105,578,185		55,694,616		1.77 - 1.90			59,894,998		2.19
BQH		14,234,428		7,857,402		1.76 - 1.79			6,926,077		2.18
BSE		40,753,419		22,320,197		1.76 - 1.90			21,839,926		2.20
BFY		14,993,819		8,058,575		1.76 - 1.83			7,634,454		2.18
BHV		9,928,768		5,396,436		1.77 - 1.78			5,396,389		2.17

^(a)

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

^(b)

TOB Trusts may be structured on a non-recourse or recourse basis. When a Trust invests in TOB Trusts on a non-recourse basis, the Liquidity Provider may be required to make a payment under the liquidity facility to allow the TOB Trust to repurchase TOB Trust Certificates. The Liquidity Provider will be reimbursed from the liquidation of bonds held in the TOB Trust. If a Trust invests in a TOB Trust on a recourse basis, the Trust enters into a reimbursement agreement with the Liquidity Provider where a Trust is required to reimburse the Liquidity Provider for any shortfall between the amount paid by the Liquidity Provider and proceeds received from liquidation of municipal bonds held in the TOB Trust (the “Liquidation Shortfall”). As a result, if a Trust invests in a recourse TOB Trust, a Trust will bear the risk of loss with respect to any Liquidation Shortfall. If multiple Trusts participate in any such TOB Trust, these losses will be shared ratably, including the maximum potential amounts owed by a fund at February 28, 2019, in proportion to their participation in the TOB Trust. The recourse TOB Trusts are identified in the Schedule of Investments including the maximum potential amounts owed by a fund at February 28, 2019.

5.	*DERIVATIVE FINANCIAL INSTRUMENTS*

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

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

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

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

6.	*INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES*

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

For such services, each Trust, except for MHE and MHN, pays the Manager a monthly fee at an annual rate equal to a percentage of each Trust’s average weekly managed assets. For such services, MHE and MHN each pays the Manager a monthly fee at an annual rate equal to a percentage of each Trust’s average daily net assets. The Trusts pay their respective fees based on the following annual rates:


	BZM			MHE			MHN			BQH			BSE			BFY			BHV
Investment advisory fee		0.65	%		0.50	%		0.55	%		0.65	%		0.55	%		0.55	%		0.65	%


NOTES TO FINANCIAL STATEMENTS			73

Notes to Financial Statements (unaudited) (continued)

For purposes of calculating these fees, “net assets” mean the total assets of each Trust minus the sum of its accrued liabilities (which does not include liabilities represented by TOB Trusts and the liquidation preference of any outstanding preferred shares). It is understood that the liquidation preference of any outstanding preferred stock (other than accumulated dividends) and TOB Trusts is not considered a liability in determining a Trust’s NAV. For purposes of calculating these fees, “managed assets” mean the total assets of each Trust minus the sum of its accrued liabilities (other than the aggregate indebtedness constituting financial leverage).

Expense Limitations, Waivers, Reimbursements, and Recoupments: With respect to BZM, BQH and BHV, the Manager voluntarily agreed to waive and/or reimburse fees or expenses in order to limit expenses, excluding interest expense, dividend expense, tax expense, acquired fund fees and expenses, and certain other fund expenses, which constitute extraordinary expenses not incurred in the ordinary course of each Trust’s business (“expense limitation”). The expense limitations as a percentage of average weekly managed assets are as follows:


	BZM			BQH			BHV
Fee waived		0.05	%		0.10	%		0.13	%

This amount is included in fees waived and/or reimbursed by the Manager in the Statements of Operations. For the six months ended February 28, 2019 the waivers were as follows:


	BZM		BQH		BHV
Amounts waived	$	12,241	$	35,417	$	26,154

The Manager, for MHN, voluntarily agreed to waive its investment advisory fee on the proceeds of the Preferred Shares and TOB Trusts that exceed 35% of total assets minus the sum of its accrued liabilities (which does not include liabilities represented by TOB Trusts and the liquidation preference of any outstanding preferred shares). The voluntary waiver may be reduced or discontinued at any time without notice. This amount is included in fees waived and/or reimbursed by the Manager in the Statements of Operations. For the six months ended February 28, 2019 the waiver was $185,327.

With respect to each Trust, the Manager voluntarily agreed to waive its investment advisory fees by the amount of investment advisory fees each Trust pays to the Manager indirectly through its investment in affiliated money market funds (the “affiliated money market fund waiver”). The amount of waivers and/or reimbursements of fees and expenses made pursuant to the expense limitation described below will be reduced by the amount of the affiliated money market fund waiver. These amounts are included in fees waived and/or reimbursed by the Manager in the Statements of Operations. For the six months ended February 28, 2019, the waivers were as follows:


	BZM		MHE		MHN		BQH		BSE		BFY		BHV
Amounts waived	$	519	$	347	$	336	$	50	$	97	$	69	$	276

The Manager contractually agreed to waive its investment advisory fee with respect to any portion of each Trust’s assets invested in affiliated equity and fixed-income mutual funds and affiliated exchange-traded funds that have a contractual management fee through June 30, 2019. The agreement can be renewed for annual periods thereafter, and may be terminated on 90 days’ notice, each subject to approval by a majority of the Trusts’ Independent Trustees. For the six months ended February 28, 2019, there were no fees waived by the Manager pursuant to this arrangement.

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

7.	*PURCHASES AND SALES*

For the six months ended February 28, 2019, purchases and sales of investments, excluding short-term securities, were as follows:


	BZM		MHE		MHN		BQH		BSE		BFY		BHV
Purchases	$	3,454,013	$	1,639,174	$	136,055,423	$	12,752,460	$	22,911,173	$	22,942,777	$	3,969,337
Sales		3,827,976		1,628,411		140,063,884		11,538,553		21,865,310		22,932,821		5,603,465

8.	*INCOME TAX INFORMATION*

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

Each Trust files U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on each Trust’s U.S. federal tax returns generally remains open for each of the four years ended August 31, 2018. The statutes of limitations on each Trust’s state and local tax returns may remain open for an additional year depending upon the jurisdiction.

Management has analyzed tax laws and regulations and their application to the Trusts as of February 28, 2019, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Trusts’ financial statements.


74		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (unaudited) (continued)

As of August 31, 2018, the Trusts had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates as follows:


Expires August 31,	MHE		MHN		BQH		BSE		BFY		BHV
No expiration date^(a)	$	292,185	$	14,172,767	$	945,719	$	1,469,732	$	1,278,852	$	520,919
2019		74		673,531		—		—		255,001		51,866

	$	292,259	$	14,846,298	$	945,719	$	1,469,732	$	1,533,853	$	572,785

^(a)

Must be utilized prior to losses subject to expiration.

As of February 28, 2019, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows:


	BZM			MHE			MHN			BQH			BSE			BFY			BHV
Tax cost	$	45,041,031		$	47,078,097		$	653,508,311		$	60,223,880		$	126,145,781		$	111,490,161		$	33,602,346
Gross unrealized appreciation	$	1,139,078		$	2,370,830		$	31,417,102		$	4,447,984		$	6,984,621		$	6,679,239		$	1,370,283
Gross unrealized depreciation		(60,482	)		(113,205	)		(988,422	)		(184,673	)		(269,450	)		(231,417	)		(79,712	)

Net unrealized appreciation	$	1,078,596		$	2,257,625		$	30,428,680		$	4,263,311		$	6,715,171		$	6,447,822		$	1,290,571

9.	*PRINCIPAL RISKS*

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

Inventories of municipal bonds held by brokers and dealers may decrease, which would lessen their ability to make a market in these securities. Such a reduction in market making capacity could potentially decrease a Trust’s ability to buy or sell bonds. As a result, a Trust may sell a security at a lower price, sell other securities to raise cash, or give up an investment opportunity, any of which could have a negative impact on performance. If a Trust needed to sell large blocks of bonds, those sales could further reduce the bonds’ prices and impact performance.

In the normal course of business, certain Trusts invest in securities or other instruments and may enter into certain transactions, and such activities subject each Trust to various risks, including among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate and price fluctuations.

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

The Trusts may hold a significant amount of bonds subject to calls by the issuers at defined dates and prices. When bonds are called by issuers and the Trusts reinvest the proceeds received, such investments may be in securities with lower yields than the bonds originally held, and correspondingly, could adversely impact the yield and total return performance of a Trust.

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

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

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

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

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

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


NOTES TO FINANCIAL STATEMENTS			75

Notes to Financial Statements (unaudited) (continued)

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

Concentration Risk: Each Trust invests a substantial amount of its assets in issuers located in a single state or limited number of states. This may subject each Trust to the risk that economic, political or social issues impacting a particular state or group of states could have an adverse and disproportionate impact on the income from, or the value or liquidity of, the Trusts’ respective portfolios. Investment percentages in specific states or U.S. territories are presented in the Schedules of Investments.

As of period end, BZM and BHV invested a significant portion of their assets in the health sector, MHE and BSE invested a significant portion of its assets in the education sector, MHN invested a significant portion of its assets in the transportation sector, and BQH and BFY invested a significant portion of their assets in the county, city, special district, school district sector. Changes in economic conditions affecting such sectors would have a greater impact on the Trusts and could affect the value, income and/or liquidity of positions in such securities.

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

10.

CAPITAL SHARE TRANSACTIONS

Each Trust, except for MHN, is authorized to issue an unlimited number of shares, all of which were initially classified as Common Shares. MHN is authorized to issue 200 million shares, all of which were initially classified as Common Shares. The par value for each Trust’s Common Shares is $0.001, except for MHE and MHN, which is $0.01 and $0.10, respectively. The par value for each Trust’s Preferred Shares outstanding is $0.001, except for MHE and MHN, which is $0.01 and $0.10 respectively. The Board is authorized, however, to reclassify any unissued Common Shares to Preferred Shares without the approval of Common Shareholders.

Common Shares

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


	MHE		BFY		BHV
Six months ended February 28, 2019		—		—		1,360
Year ended August 31, 2018		1,800		273		2,965

For the six months ended February 28, 2019 and for the year ended August 31, 2018, shares issued and outstanding remained constant for BZM, MHN, BQH and BSE.

On November 15, 2018, the Board of Trustees authorized each Trust to participate in an open market share repurchase program (the “Repurchase Program”). Under the Repurchase Program each Trust may repurchase up to 5% of its outstanding common shares through November 30, 2019, based on common shares outstanding as of the close of business on November 30, 2018, subject to certain conditions. There is no assurance that the Trusts will purchase shares in any particular amounts. For the six months ended February 28, 2019, the Trusts did not repurchase any shares.

Preferred Shares

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

Holders of Preferred Shares have voting rights equal to the voting rights of holders of Common Shares (one vote per share) and vote together with holders of Common Shares (one vote per share) as a single class on certain matters. Holders of Preferred Shares, voting as a separate class, are also entitled to (i) elect two members of the Board, (ii) elect the full Board if dividends on the Preferred Shares are not paid for a period of two years and (iii) a separate class vote to amend the Preferred Share governing documents. In addition, the 1940 Act requires the approval of the holders of a majority of any outstanding Preferred Shares, voting as a separate class, to (a) adopt any plan of reorganization that would adversely affect the Preferred Shares, (b) change a 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.


76		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (unaudited) (continued)

VRDP Shares

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

Issue
Date

Shares
Issued

Aggregate
Principal

Maturity
Date

BZM

06/14/12

160

16,000,000

07/01/42

MHE

06/14/12

185

18,500,000

07/01/42

MHN

06/30/11

2,436

243,600,000

07/01/41

BQH

09/15/11

221

22,100,000

10/01/41

BSE

09/15/11

405

40,500,000

10/01/41

BFY

09/15/11

444

44,400,000

10/01/41

BHV

06/14/12

116

11,600,000

07/01/42

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

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

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

BZM

MHE

MHN

BQH

BSE

BFY

BHV

Expiration Date

07/04/19

04/15/20

10/21/19

07/04/19

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

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

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


	Moody’s		Fitch
BZM		Aa2		AAA
BHV		Aa2		AAA
BQH		Aa2		AAA
BSE		Aa2		AAA
MHE		Aa3		AAA
MHN		Aa2		AAA
BFY		Aa2		AAA

Any short-term ratings on VRDP Shares are directly related to the short-term ratings of the liquidity provider for such VRDP Shares. Changes in the credit quality of the liquidity provider could cause a change in the short-term credit ratings of the VRDP Shares as rated by Moody’s and Fitch. The liquidity provider may be terminated prior to the scheduled termination date if the liquidity provider fails to maintain short-term debt ratings in one of the two highest rating categories. As of period end, the short-term ratings of the liquidity provider and the VRDP Shares were within the two highest rating categories as follows:


	Moody’s		Fitch
BZM		P1		F1
BHV		P1		F1


NOTES TO FINANCIAL STATEMENTS			77

Notes to Financial Statements (unaudited) (continued)

Special Rate Period: A VRDP Trust may commence a “special rate period” with respect to its VRDP Shares, during which the VRDP Shares will not be subject to any remarketing and the dividend rate will be based on a predetermined methodology. During a special rate period, short-term ratings on VRDP Shares are withdrawn. The following VRDP Trusts have commenced or are set to commence a special rate period:


	Commencement Date		Expiration Date as of period ended 02/28/19
MHE		06/14/12		06/19/19
MHN		04/17/14		04/15/20
BQH		10/22/15		04/17/19
BSE		10/22/15		04/17/19
BFY		10/22/15		04/17/19

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

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

If a VRDP Trust redeems its VRDP Shares prior to end of the special rate period and the VRDP Shares have long-term ratings above A1/A+ and its equivalent by all ratings agencies then rating the VRDP Shares, then such redemption may be subject to a redemption premium payable to the holder of the VRDP Shares based on the time remaining in the special rate period, subject to certain exceptions for redemptions that are required to comply with minimum asset coverage requirements.

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

For the six months ended February 28, 2019, the annualized dividend rate for the VRDP Shares were as follows:


	BZM			MHE			MHN			BQH			BSE			BFY			BHV
Rate		0.78	%		1.55	%		1.53	%		1.55	%		1.55	%		1.55	%		0.78	%

For the six months ended February 28, 2019, VRDP Shares issued and outstanding of each Trust remained constant.

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

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


	Dividends Accrued		Deferred Offering Costs Amortization
BZM	$	143,038	$	1,506
MHE		220,181		1,654
MHN		2,910,707		7,657
BQH		266,944		2,893
BSE		487,620		3,099
BFY		535,408		3,139
BHV		97,237		1,281


78		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (unaudited) (continued)

11.

REGULATION S-X AMENDMENTS

On August 17, 2018, the SEC adopted amendments to certain disclosure requirements in Securities Act Release No. 33-10532, Disclosure Update and Simplification. The Trusts have adopted the amendments pertinent to Regulation S-X in this shareholder report. The amendments impacted certain disclosure presentation on the Statements of Assets and Liabilities, Statements of Changes in Net Assets and Notes to the Financial Statements.

Prior year distribution information and undistributed net investment income in the Statements of Changes in Net Assets has been modified to conform to the current year presentation in accordance with the Regulation S-X changes.

Distributions for the year ended August 31, 2018 were classified as follows:


	Net Investment Income		Net Realized Gain
BZM	$	1,184,330	$	83,044
MHE		1,379,587		—
MHN		19,231,620		—
BQH		1,764,066		—
BSE		3,667,309		—
BFY		3,303,232		—
BHV		1,245,984		—

Undistributed net investment income as of August 31, 2018 is as follows:


	Undistributed Net Investment Income
BZM	$	221,233
MHE		130,411
MHN		1,076,098
BQH		335,187
BSE		141,169
BFY		614,961
BHV		157,423

12.

SUBSEQUENT EVENTS

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


	Common Dividend Per Share				Preferred Shares^(c)
	Paid^(a)		Declared^(b)		Shares		Series		Declared
BZM	$	0.0474	$	0.0474		VRDP		W-7	$	24,004
MHE		0.0440		0.0440		VRDP		W-7		39,068
MHN		0.0445		0.0445		VRDP		W-7		516,499
BQH		0.0480		0.0480		VRDP		W-7		48,072
BSE		0.0405		0.0405		VRDP		W-7		88,096
BFY		0.0490		0.0490		VRDP		W-7		96,579
BHV		0.0535		0.0535		VRDP		W-7		17,403

^(a)

Net investment income paid on April 1, 2019 to Common Shareholders of record on March 15, 2019.

^(b)

Net investment income dividend declared on April 1, 2019, payable to Common Shareholders of record on April 15, 2019.

^(c)

Dividends declared for period March 1, 2019 to March 31, 2019.


NOTES TO FINANCIAL STATEMENTS			79

Trustee and Officer Information

Richard E. Cavanagh, Co-Chair of the Board and Trustee

Karen P. Robards, Co-Chair of the Board and Trustee

Michael J. Castellano, Trustee

Cynthia L. Egan, Trustee

Frank J. Fabozzi, Trustee

Henry Gabbay, Trustee

R. Glenn Hubbard, Trustee

W. Carl Kester, Trustee

Catherine A. Lynch, Trustee

Robert Fairbairn, Trustee

John M. Perlowski, Trustee, President and Chief Executive Officer

Jonathan Diorio, Vice President

Neal J. Andrews, Chief Financial Officer

Jay M. Fife, Treasurer

Charles Park, Chief Compliance Officer

Janey Ahn, Secretary

Effective January 1, 2019, Richard E. Cavanagh and Karen P. Robards were appointed as a Co-Chair of the Board. Prior to January 1, 2019, Mr. Cavanagh served as Chair of the Board and Ms. Robards served as Vice Chair of the Board. In addition, effective January 1, 2019, Henry Gabbay was appointed as a Trustee of each Trust.

Investment Adviser

BlackRock Advisors, LLC

Wilmington, DE 19809

Accounting Agent and Custodian

State Street Bank and Trust Company

Boston, MA 02111

Transfer Agent

Computershare Trust Company, N.A.

Canton, MA 02021

VRDP Tender and Paying Agent

The Bank of New York Mellon

New York, NY 10289

VRDP Remarketing Agent

Merrill Lynch, Pierce, Fenner & Smith Incorporated^(a)

New York, NY 10036

Citigroup Global Markets, Inc.^(b)

New York, NY 10179

Barclays Capital, Inc.^(c)

New York, NY 10019

VRDP Liquidity Providers

Bank of America, N.A.^(a)

New York, NY 10036

Citibank, N.A.^(b)

New York, NY 10179

Barclays Bank PLC.^(c)

New York, NY 10019

Independent Registered Public Accounting Firm

Deloitte & Touche LLP

Boston, MA 02116

Legal Counsel

Willkie Farr & Gallagher LLP

New York, NY 10019

Address of the Trusts

100 Bellevue Parkway

Wilmington, DE 19809

^(a)

For MHN.

^(b)	For BZM, MHE and BHV.

^(c)	For BQH, BSE and BFY.


80		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Additional Information

Trust Certification

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

Dividend Policy

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

General Information

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

During the period, there were no material changes in the Trusts’ investment objectives or policies or to the Trusts’ charters or by-laws that would delay or prevent a change of control of the Trusts that were not approved by the shareholders or in the principal risk factors associated with investment in the Trusts. There have been no changes in the persons who are primarily responsible for the day-to-day management of the Trusts’ portfolios.

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

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

Electronic Delivery

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

To enroll in electronic delivery:

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

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

Householding

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

Availability of Quarterly Schedule of Investments

The Trusts file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Trusts’ Forms N-Q are available on the SEC’s website at http://www.sec.gov. The Trusts’ Forms N-Q may also be obtained upon request and without charge by calling (800) 882-0052.

Availability of Proxy Voting Policies and Procedures

A description of the policies and procedures that the Trusts use to determine how to vote proxies relating to portfolio securities is available upon request and without charge (1) by calling (800) 882-0052; (2) at http://www.blackrock.com; and (3) on the SEC’s website at http://www.sec.gov.

Availability of Proxy Voting Record

Information about how the Trusts voted proxies relating to securities held in the Trusts’ portfolios during the most recent 12-month period ended June 30 is available upon request and without charge (1) at http://www.blackrock.com; or by calling (800) 882-0052; and (2) on the SEC’s website at http://www.sec.gov.


ADDITIONAL INFORMATION			81

Additional Information (continued)

Availability of Trust Updates

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

BlackRock Privacy Principles

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

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

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

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

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


82		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Glossary of Terms Used in this Report


Portfolio Abbreviations

AGC		Assured Guarantee Corp.

AGM		Assured Guaranty Municipal Corp.

AMBAC		American Municipal Bond Assurance Corp.

AMT		Alternative Minimum Tax (subject to)

ARB		Airport Revenue Bonds

BARB		Building Aid Revenue Bonds

BHAC		Berkshire Hathaway Assurance Corp.

BOCES		Board of Cooperative Educational Services

CAB		Capital Appreciation Bonds

CIFG		CIFG Assurance North America, Inc.

EDA		Economic Development Authority

EDC		Economic Development Corp.

ERB		Education Revenue Bonds

FHA		Federal Housing Administration

GO		General Obligation Bonds

HDA		Housing Development Authority

HFA		Housing Finance Agency

HRB		Housing Revenue Bonds

IDA		Industrial Development Authority

M/F		Multi-Family

NPFGC		National Public Finance Guarantee Corp.

PILOT		Payment in Lieu of Taxes

RB		Revenue Bonds

S/F		Single-Family

SONYMA		State of New York Mortgage Agency

Syncora		Syncora Guarantee


GLOSSARY OF TERMS USED IN THIS REPORT			83

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

LOGO


CEF-STMUNI-8-2/19-SAR

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

(a) Not Applicable to this semi-annual report.

(b) As of the date of this filing, there have been no changes in any of the portfolio managers identified in the most recent annual report on Form N-CSR.

Item 9 – Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers


Period	(a) Total Number of Shares Purchased	(b) Average Price Paid per Share	(c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	(d) Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs¹
September 1 – 30, 2018	N/A	N/A	N/A	N/A
October 1 – 31, 2018	N/A	N/A	N/A	N/A
November 1- 30, 2018	N/A	N/A	N/A	N/A
December 1 – 31, 2018	0	$0	0	118,551
January 1 – 31, 2019	0	$0	0	118,551
February 1 – 28, 2019	0	$0	0	118,551
Total:	0	$0	0	118,551

¹The Fund announced an open market share repurchase program on November 15, 2018 pursuant to which the Fund was authorized to repurchase, through November 30, 2019, up to 5% of its common shares based on common shares outstanding on November 30, 2018, in open market transactions, subject to certain conditions.

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

Item 11 – Controls and Procedures

(a) The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c)

under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended.

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

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

Item 13 – Exhibits attached hereto

(a)(1) – Code of Ethics – Not Applicable to this semi-annual report

(a)(2) – Certifications – Attached hereto

(a)(3) – Not Applicable

(a)(4) – Not Applicable

(b) – Certifications – Attached hereto

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

BlackRock Massachusetts Tax-Exempt Trust


By:		/s/ John M. Perlowski
		John M. Perlowski
		Chief Executive Officer (principal executive officer) of
		BlackRock Massachusetts Tax-Exempt Trust

Date: May 3, 2019

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


By:		/s/ John M. Perlowski
		John M. Perlowski
		Chief Executive Officer (principal executive officer) of
		BlackRock Massachusetts Tax-Exempt Trust

Date: May 3, 2019


By:		/s/ Neal J. Andrews
		Neal J. Andrews
		Chief Financial Officer (principal financial officer) of
		BlackRock Massachusetts Tax-Exempt Trust

Date: May 3, 2019