January SARs -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

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

FORM N-CSRS

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT
COMPANIES

Investment Company Act file number 811-08215

Name of Fund: BlackRock MuniHoldings Fund II, Inc. (MUH)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

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

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

Date of fiscal year end: 07/31/2009

Date of reporting period: 08/01/2008 – 01/31/2009

Item 1 – Report to Stockholders

EQUITIES FIXED INCOME REAL ESTATE LIQUIDITY ALTERNATIVES BLACKROCK SOLUTIONS

BlackRock MuniHoldings

Fund II, Inc. (MUH)

SEMI-ANNUAL REPORT

JANUARY 31, 2009 | (UNAUDITED)


NOT FDIC INSURED

MAY LOSE VALUE

NO BANK GUARANTEE

Table of Contents     
    Page 
 
A Letter to Shareholders    3 
Semi-Annual Report:     
Fund Summary    4 
The Benefits and Risks of Leveraging    5 
Financial Statements:     
     Schedule of Investments    6 
     Statement of Assets and Liabilities    11 
     Statement of Operations    12 
     Statement of Changes in Net Assets    13 
     Statement of Cash Flows    14 
Financial Highlights    15 
Notes to Financial Statements    16 
Officers and Directors    20 
Additional Information    21 

2 BLACKROCK MUNIHOLDINGS FUND II, INC.

JANUARY 31, 2009

A Letter to Shareholders

Dear Shareholder

The present time may well be remembered as one of the most tumultuous periods in financial market history. Over the past year, the bursting of the

housing bubble and the resultant credit crisis swelled into an all-out global financial market meltdown that featured the collapse of storied financial

firms, volatile swings in the world’s financial markets and monumental government responses, including the nearly $800 billion economic stimulus

plan signed into law just after period end.

The US economy appeared relatively resilient through the first few months of 2008, when rising food and energy prices fueled inflation fears. Mid-

summer ushered in dramatic changes- inflationary pressure subsided amid a plunge in commodity prices, while economic pressures intensified in the

midst of a rapid deterioration in consumer spending, employment and other key indicators. By year’s end, the National Bureau of Economic Research

affirmed that the United States was in a recession, which officially began in December 2007. The Federal Reserve Board (the “Fed”), after slashing

interest rates aggressively early in the period, resumed that rate-cutting campaign in the fall, with the final reduction in December 2008 bringing the

target federal funds rate to a record low range of between zero and 0.25% . Importantly, the central bank pledged that future policy moves to revive the

global economy and financial markets would comprise primarily nontraditional and quantitative easing measures, such as capital injections, lending

programs and government guarantees.

Against this backdrop, US equity markets experienced intense volatility, with the sentiment turning decisively negative toward period end. Declines were

significant and broad-based, with little divergence among large- and small-cap stocks. Non-US stocks posted stronger results early on, but quickly lost

ground as the credit crisis revealed itself to be global in scope and as the worldwide economic slowdown gathered pace. Overall, aggressive monetary

and fiscal policy, combined with the defensiveness of the US, helped domestic equities notch better performance than their non-US counterparts.

In fixed income markets, risk aversion remained the popular theme, leading the Treasury sector to top all other asset classes. The high yield market

was particularly hard hit in this environment, as economic turmoil, combined with frozen credit markets and substantial technical pressures, took a

heavy toll. Meanwhile, the municipal bond market was challenged by a dearth of market participants, lack of liquidity, difficult funding environment and

backlog of new-issue supply, which sent prices lower and yields well above Treasuries. By period end, however, some positive momentum had returned

to the municipal space.

In all, an investor flight to safety prevailed, as evidenced in the six- and 12-month returns of the major benchmark indexes:     
Total Returns as of January 31, 2009    6-month    12-month 
US equities (S&P 500 Index)    (33.95)%    (38.63)% 
Small cap US equities (Russell 2000 Index)    (37.38)    (36.84) 
International equities (MSCI Europe, Australasia, Far East Index)    (40.75)    (43.74) 
US Treasury securities (Merrill Lynch 10-Year US Treasury Index)    11.96    10.64 
Taxable fixed income (Barclays Capital US Aggregate Bond Index*)    3.23    2.59 
Tax-exempt fixed income (Barclays Capital Municipal Bond Index*)    0.70    (0.16) 
High yield bonds (Barclays Capital US Corporate High Yield 2% Issuer Capped Index*)    (19.07)    (19.72) 

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

Through periods of market turbulence, as ever, BlackRock’s full resources are dedicated to the management of our clients’ assets. For our most

current views on the economy and financial markets, we invite you to visit www.blackrock.com/funds. We thank you for entrusting BlackRock with

your investments, and we look forward to continuing to serve you in the months and years ahead.


THIS PAGE NOT PART OF YOUR FUND REPORT

3

Fund Summary as of January 31, 2009

Investment Objective

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

Performance

For the six months ended January 31, 2009, the Fund returned (13.09)% based on market price and (8.95)% based on net asset value (NAV). For the
same period, the closed-end Lipper General Municipal Debt Leveraged Funds category posted an average return of (12.07)% on a market price basis
and (12.78)% on a NAV basis. All returns reflect reinvestment of dividends. The Fund’s discount to NAV, which widened during the period, accounts for
the difference between performance based on price and performance based on NAV. Fund performance was positively impacted by three factors: an
up-in-quality bias amid a widening in credit spreads; an emphasis on pre-refunded securities, which outperformed in the steepening yield curve envi-
ronment; and, a competitive dividend yield. With credit spreads at historically cheap levels, we anticipate allocating a larger exposure to the lower end
of the credit spectrum as a means to sustain an above-average yield ranking within the Fund’s peer group.

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.     
Fund Information     
                                           Symbol on New York Stock Exchange    MUH 
                                           Initial Offering Date    February 27, 1998 
                                           Yield on Closing Market Price as of January 31, 2009 ($10.89)1    6.94% 
                                           Tax Equivalent Yield2    10.68% 
                                           Current Monthly Distribution per share of Common Shares3    $0.063 
                                           Current Annualized Distribution per share of Common Shares3    $0.756 
                                           Leverage as of January 31, 20094    38% 
 
                                               1 Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. 
                                                   Past performance does not guarantee future results.     
                                               2 Tax equivalent yield assumes the maximum federal tax rate of 35%.     
                                               3 The distribution is not constant and is subject to change.     

4 Represents Auction Market Preferred Shares (“Preferred Shares”) and tender option bond trusts (“TOBs”) as a percentage of total managed
assets, which is the total assets of the Fund, including any assets attributable to Preferred Shares and TOBs, minus the sum of accrued
liabilities. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 5.

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

    1/31/09    7/31/08    Change    High    Low 
Market Price    $10.89    $13.01    (16.30)%    $13.15    $ 7.08 
Net Asset Value    $11.98    $13.66    (12.30)%    $13.95    $10.46 

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

Sector Allocations         
    1/31/09    7/31/08 
Hospitals/Healthcare    22%    21% 
IDA/PCR/Resource Recovery    18    17 
County City/Special District/School    17    17 
Education    12    5 
Transportation    7    9 
Housing    6    8 
Utilities — Electric & Gas    6    7 
Special Tax    5    8 
State    2    3 
Tobacco    2    2 
Utilities — Irrigation, Resource         
   Recovery, Solid Waste & Other    2    2 
Resource Recovery    1    1 
 
 

     Credit Quality Allocations5         
    1/31/09    7/31/08 
AAA/Aaa    37%    37% 
AA/Aa    20    20 
A/A    21    18 
BBB/Baa    10    8 
BB/Ba    1    1 
B/B    1    1 
CCC/Caa    1    2 
Not Rated    96    13 
 
 

5 Using the higher of Standard & Poor’s and Moody’s Investors
Service ratings.
6 The investment advisor has deemed certain of these non-rated
securities to be of investment grade quality. As of January 31,
2009, the market value of these securities was $4,249,701
representing 2% of the Fund’s long-term investments.

4 BLACKROCK MUNIHOLDINGS FUND II, INC.

JANUARY 31, 2009

The Benefits and Risks of Leveraging

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

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

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

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

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

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

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

Under the Investment Company Act of 1940, the Fund is permitted to
issue Preferred Shares in an amount of up to 50% of its total managed
assets at the time of issuance. Under normal circumstances, the Fund
anticipates that the total economic leverage from Preferred Shares
and TOBs will not exceed 50% of its total managed assets at the time
such leverage is incurred. As of January 31, 2009, the Fund had eco-
nomic leverage from Preferred Shares and TOBs of 38% of its total
managed assets.

BLACKROCK MUNIHOLDINGS FUND II, INC.

JANUARY 31, 2009

5

Schedule of Investments January 31, 2009 (Unaudited)        (Percentages shown are based on Net Assets) 
 
        Par                    Par     
Municipal Bonds        (000)    Value    Municipal Bonds            (000)       Value 
 
Alabama — 1.7%                California (concluded)                 
Jefferson County, Alabama, Limited Obligation School            Tracy, California, Area Public Facilities Financing         
 Warrants, Series A, 5%, 1/01/24    $ 3,450    $2,211,657     Agency, Special Tax Refunding Bonds (Community         
Arizona — 6.6%                 Facilities District Number 87-1), Series H, 5.875%,         
Arizona Health Facilities Authority Revenue Bonds                 10/01/19 (a)                                       $ 4,925     $ 4,931,796 
 (Catholic Healthcare West), Series A, 6.625%, 7/01/20    1,000    1,081,930                    24,057,879 
Maricopa County, Arizona, IDA, Education Revenue                Colorado — 3.5%                 
 Bonds (Arizona Charter Schools Project 1), Series A,            Colorado Health Facilities Authority, Revenue Refunding         
 6.50%, 7/01/12        1,365    1,219,805     Bonds (Poudre Valley Health Care) (g):         
Phoenix, Arizona, IDA, Airport Facility, Revenue Refunding                 5.20%, 3/01/31            365    322,189 
 Bonds (America West Airlines Inc. Project), AMT,                     Series B, 5.25%, 3/01/36        735    637,848 
 6.30%, 4/01/23        2,060    1,202,525         Series C, 5.25%, 3/01/40        900    771,003 
Pima County, Arizona, IDA, Education Revenue Bonds                Elk Valley, Colorado, Public Improvement Revenue Bonds         
 (Arizona Charter Schools Project), Series C,                 (Public Improvement Fee), Series A, 7.10%, 9/01/14    1,315    1,280,981 
 6.75%, 7/01/31        960    731,338    Plaza Metropolitan District Number 1, Colorado, Tax         
Pinal County, Arizona, COP, 5%, 12/01/29        1,000    843,070     Allocation Revenue Bonds (Public Improvement Fees),         
Salt Verde Financial Corporation, Arizona, Senior                 8.125%, 12/01/25            860    704,065 
 Gas Revenue Bonds:                University of Colorado, Enterprise System Revenue Bonds,         
     5%, 12/01/32        2,535    1,691,124     Series A, 5.375%, 6/01/38        920    931,942 
     5%, 12/01/37        2,175    1,411,292                     
Show Low, Arizona, Improvement District Number 5,                                4,648,028 
 Special Assessment Bonds, 6.375%, 1/01/15        755    707,073    Florida — 7.1%                 
            8,888,157    Ballantrae, Florida, Community Development District,         
                 Capital Improvement Revenue Bonds, 6%, 5/01/35    1,600    1,250,784 
California — 18.0%                Greater Orlando Aviation Authority, Florida, Airport         
Benicia, California, Unified School District, GO, Refunding,             Facilities Revenue Bonds (JetBlue Airways Corp.),         
 Series A, 5.618%, 8/01/20 (a)(b)(c)        2,000    1,124,380     AMT, 6.50%, 11/15/36            1,515    885,427 
California Pollution Control Financing Authority, PCR,                Hillsborough County, Florida, IDA, Hospital Revenue         
 Refunding (Pacific Gas & Electric), AMT, Series A,                 Bonds (H. Lee Moffitt Cancer Center Project), Series A,         
 5.35%, 12/01/16 (a)        5,130    4,809,118     5.25%, 7/01/37            2,310    1,745,713 
California State Public Works Board, Lease Revenue                Miami-Dade County, Florida, Special Obligation Revenue         
 Bonds (Department of Corrections), Series C,                 Bonds, Sub-Series A, 5.239%, 10/01/37 (a)(c)    1,765    228,973 
 5.25%, 6/01/28        2,605    2,419,524    Midtown Miami, Florida, Community Development District,         
East Side Union High School District, California,                 Special Assessment Revenue Bonds, Series A,         
 Santa Clara County, GO (Election of 2002), Series D,             6.25%, 5/01/37            2,450    1,529,094 
 5%, 8/01/20 (d)        1,000    1,053,080    Orange County, Florida, Health Facilities Authority,         
Golden State Tobacco Securitization Corporation of                 Hospital Revenue Bonds (Orlando Regional Healthcare),         
 California, Tobacco Settlement Revenue Bonds,                 6%, 12/01/12 (e)            2,400    2,796,216 
 Series A-3, 7.875%, 6/01/13 (e)        870    1,076,138    Palm Coast Park Community Development District, Florida,         
Poway, California, Unified School District, Special Tax                 Special Assessment Revenue Bonds, 5.70%, 5/01/37    515    272,116 
 Bonds (Community Facilities District Number 6),                Preserve at Wilderness Lake, Florida, Community         
 Series A, 6.125%, 9/01/33        1,750    1,302,700     Development District, Capital Improvement Bonds,         
San Jose, California, Airport Revenue Refunding Bonds,             Series A, 5.90%, 5/01/34        1,245    803,286 
 AMT, Series A, 5.50%, 3/01/32 (f)        3,780    3,219,237                     
San Marino, California, Unified School District,                                9,511,609 
 GO, Series A (a)(c):                Georgia — 3.4%                 
     5.504%, 7/01/17        1,820    1,365,146    Atlanta, Georgia, Tax Allocation Refunding Bonds         
     5.552%, 7/01/18        1,945    1,378,947     (Atlantic Station Project) (h):             
     5.601%, 7/01/19        2,070    1,377,813         5%, 12/01/23            1,000    970,470 
                     4.75%, 12/01/24            2,000    1,848,200 
 
     Portfolio Abbreviations                                 
 
To simplify the listings of portfolio holdings in the        AMT    Alternative Minimum Tax (subject to)    HFA    Housing Finance Agency         
Schedule of Investments, the names and descriptions        COP    Certificates of Participation    IDA    Industrial Development Authority     
of many of the securities have been abbreviated        EDA    Economic Development Authority    IDR    Industrial Development Revenue Bonds 
according to the list on the right.        EDR    Economic Development Revenue Bonds    PCR    Pollution Control Revenue Bonds     
        GO    General Obligation Bonds    S/F    Single-Family         
        HDA    Housing Development Authority                 

  See Notes to Financial Statements.

6 BLACKROCK MUNIHOLDINGS FUND II, INC. JANUARY 31, 2009

Schedule of Investments (continued)    (Percentages shown are based on Net Assets) 
 
        Par                Par     
Municipal Bonds        (000)    Value    Municipal Bonds        (000)    Value 
 
Georgia (concluded)                Minnesota — 5.8%             
Main Street Natural Gas, Inc., Georgia, Gas Project                Minneapolis, Minnesota, Community Development Agency,         
 Revenue Bonds, Series A, 6.375%, 7/15/38 (i)    $ 865     $ 170,829     Supported Development Revenue Refunding Bonds             
Private Colleges and Universities Authority, Georgia,                 (Common Bond), Series G-3, 5.35%, 12/01/11 (e)    $ 1,680     $ 1,863,859 
 Revenue Refunding Bonds (Emory University Project),            Minneapolis, Minnesota, Health Care System Revenue         
 Series C, 5%, 9/01/38        1,650    1,627,345     Refunding Bonds (Fairview Health Services), Series A,         
            4,616,844     6.75%, 11/15/32        1,540    1,558,480 
                Minnesota State Municipal Power Agency, Electric             
Idaho — 1.2%                 Revenue Bonds, 5.25%, 10/01/21        4,220    4,271,737 
Power County, Idaho, Industrial Development Corporation,                         
 Solid Waste Disposal Revenue Bonds (FMC Corporation                        7,694,076 
 Project), AMT, 6.45%, 8/01/32        2,000    1,557,560    Mississippi — 1.5%             
Illinois — 2.6%                Mississippi Business Finance Corporation, Mississippi,         
Chicago, Illinois, Special Assessment Bonds (Lake Shore             PCR, Refunding (System Energy Resources Inc. Project):         
 East), 6.75%, 12/01/32        1,000    668,190         5.875%, 4/01/22        2,000    1,622,520 
Illinois HDA, Homeowner Mortgage Revenue Bonds, AMT,                 5.90%, 5/01/22        500    406,285 
 Sub-Series C-2, 5.25%, 8/01/22        2,000    1,986,640                2,028,805 
Illinois State Finance Authority Revenue Bonds, Series A:            Missouri — 1.1%             
(Landing At Plymouth Place Project), 6%, 5/15/25    500    350,265    Kansas City, Missouri, IDA, First Mortgage Health Facilities         
     (Monarch Landing, Inc. Project), 7%, 12/01/37        720    480,953     Revenue Bonds (Bishop Spencer Place), Series A,             
            3,486,048     6.50%, 1/01/35        1,000    661,460 
Louisiana — 3.8%                Missouri State Development Finance Board, Infrastructure         
Louisiana Local Government Environmental Facilities and             Facilities Revenue Refunding Bonds (Branson),             
 Community Development Authority Revenue Bonds                 Series A, 5.50%, 12/01/32        1,000    772,060 
 (Westlake Chemical Corporation), 6.75%, 11/01/32    2,500    1,736,300                1,433,520 
Louisiana Public Facilities Authority, Hospital Revenue            New Jersey — 7.2%             
 Bonds (Franciscan Missionaries of Our Lady Health            New Jersey EDA, Cigarette Tax Revenue Bonds:             
 System, Inc.), Series A, 5.25%, 8/15/36        2,500    1,943,850         5.75%, 6/15/29        4,050    3,013,969 
New Orleans, Louisiana, Financing Authority Revenue                     5.50%, 6/15/31        1,890    1,342,278 
 Bonds (Xavier University of Louisiana Project), 5.30%,            New Jersey EDA, Retirement Community Revenue Bonds         
 6/01/12 (a)(e)        1,275    1,430,282     (Cedar Crest Village Inc. Facility), Series A, 7.25%,             
            5,110,432     11/15/11 (e)        1,000    1,147,460 
Maryland — 1.4%                New Jersey EDA, Special Facility Revenue Bonds             
Baltimore, Maryland, Convention Center Hotel Revenue             (Continental Airlines Inc. Project), AMT, 6.625%,             
 Bonds, Senior Series A, 5.25%, 9/01/39 (d)(j)        1,125    1,125,641     9/15/12        2,000    1,650,440 
Maryland State Energy Financing Administration, Limited            New Jersey State Turnpike Authority, Turnpike Revenue         
 Obligation Revenue Bonds (Cogeneration-AES Warrior             Bonds, Series C, 5%, 1/01/30 (g)        2,500    2,471,125 
 Run), AMT, 7.40%, 9/01/19        1,050    744,240                9,625,272 
            1,869,881    New York — 13.0%             
Massachusetts — 2.9%                Dutchess County, New York, IDA, Civic Facility Revenue         
Massachusetts State Development Finance Agency                 Refunding Bonds (Saint Francis Hospital), Series A,         
 Revenue Bonds (Neville Communities Home), Series A (k):             7.50%, 3/01/29        885    789,712 
     5.75%, 6/20/22        600    634,014    Long Island Power Authority, New York, Electric System         
     6%, 6/20/44        1,500    1,488,555     Revenue Refunding Bonds, Series A, 5.75%, 4/01/39    1,050    1,040,991 
Massachusetts State, HFA, Housing Revenue Bonds,                New York City, New York, City IDA, Civic Facility Revenue         
 AMT, Series A, 5.25%, 12/01/48        2,100    1,766,184     Bonds, Series C, 6.80%, 6/01/28        415    389,552 
                New York City, New York, City IDA, Special Facility Revenue         
            3,888,753     Bonds (Continental Airlines Inc. Project), AMT:             
Michigan — 3.8%                     8%, 11/01/12        525    452,765 
Flint, Michigan, Hospital Building Authority, Revenue                     8.375%, 11/01/16        525    383,308 
 Refunding Bonds (Hurley Medical Center), Series A,            New York City, New York, City Transitional Finance             
 6%, 7/01/20 (l)        1,100    858,847     Authority, Building Aid Revenue Bonds, Series S-3,             
Michigan State Strategic Fund, Limited Obligation Revenue             5.25%, 1/15/39        3,300    3,146,880 
 Refunding Bonds (Detroit Edison Company Pollution            New York City, New York, City Transitional Finance             
 Control Project), AMT, Series C, 5.65%, 9/01/29 (d)    5,000    4,178,900     Authority, Building Aid Revenue Refunding Bonds,             
            5,037,747     Series S-1, 4.50%, 1/15/38        500    419,115 
                New York City, New York, Sales Tax Asset Receivable             
                 Corporation Revenue Bonds, Series A, 5%, 10/15/20 (a)    3,855    4,193,546 

  See Notes to Financial Statements.

BLACKROCK MUNIHOLDINGS FUND II, INC. JANUARY 31, 2009 7

Schedule of Investments (continued)    (Percentages shown are based on Net Assets) 
 
        Par            Par     
Municipal Bonds        (000)    Value    Municipal Bonds    (000)    Value 
 
New York (concluded)                Texas — 8.9%         
Tobacco Settlement Financing Corporation of New York            Brazos River Authority, Texas, PCR, Refunding (TXU Energy         
 Revenue Bonds:                 Company Project), AMT, Series C, 5.75%, 5/01/36    $  1,930     $ 1,269,940 
     Series A-1, 5.50%, 6/01/15    $ 1,100    $ 1,121,912    Brazos River, Texas, Harbor Navigation District, Brazoria         
     Series A-1, 5.50%, 6/01/18        2,400    2,477,184     County Environmental Revenue Refunding Bonds         
     Series C-1, 5.50%, 6/01/22        1,100    1,119,833     (Dow Chemical Company Project), AMT, Series A-7,         
Westchester County, New York, IDA, Continuing Care                 6.625%, 5/15/33    2,500    1,859,475 
 Retirement, Mortgage Revenue Bonds (Kendal on                Harris County, Texas, Health Facilities Development         
 Hudson Project), Series A, 6.50%, 1/01/13 (e)        1,575    1,890,299     Corporation, Hospital Revenue Refunding Bonds         
            17,425,097     (Memorial Hermann Healthcare System), Series B,         
                 7.25%, 12/01/35    1,380    1,440,927 
North Carolina — 1.5%                Matagorda, Texas, Hospital District Revenue Bonds,         
North Carolina Eastern Municipal Power Agency, Power             5%, 2/15/35 (m)    3,265    2,814,463 
 System Revenue Bonds, Series D, 6.75%, 1/01/26    2,000    2,013,740    North Texas Tollway Authority, System Revenue Refunding         
Ohio — 0.7%                 Bonds, Second Tier, Series F, 6.125%, 1/01/31    3,020    2,891,831 
Buckeye Tobacco Settlement Financing Authority, Ohio,            San Antonio Energy Acquisition Public Facilities         
 Tobacco Settlement Asset-Backed Bonds, Series A-2,             Corporation, Texas, Gas Supply Revenue Bonds:         
 6.50%, 6/01/47        1,565    971,849         5.50%, 8/01/23    1,130    861,286 
Oklahoma — 0.5%                     5.50%, 8/01/24    1,035    783,257 
Tulsa County, Oklahoma, Home Finance Authority, S/F                    11,921,179 
 Mortgage Revenue Refunding Bonds, AMT, Series C,            Vermont — 0.6%         
 5.25%, 12/01/38 (k)        862    711,391    Vermont Educational and Health Buildings Financing         
Pennsylvania — 3.8%                 Agency, Revenue Bonds (Developmental and Mental         
Pennsylvania Economic Development Financing Authority,             Health), Series A, 6.50%, 6/15/32    1,000    826,920 
 Exempt Facilities Revenue Bonds (National Gypsum            Virginia — 12.4%         
 Company), AMT, Series A, 6.25%, 11/01/27        2,750    1,451,725    Chesterfield County, Virginia, IDA, PCR (Virginia Electric         
Philadelphia, Pennsylvania, Authority for IDR, Commercial             and Power Company), Series A, 5.875%, 6/01/17    425    444,678 
 Development, 7.75%, 12/01/17        540    457,083    Chesterfield County, Virginia, IDA, PCR, Refunding         
Sayre, Pennsylvania, Health Care Facilities Authority,                 (Virginia Electric and Power Company), Series B,         
 Revenue Bonds (Guthrie Healthcare System), Series B,             5.875%, 6/01/17    575    566,220 
 7.125%, 12/01/11 (e)        2,630    3,234,637    Fairfax County, Virginia, EDA, Resource Recovery Revenue         
            5,143,445     Refunding Bonds, AMT, Series A, 6.10%, 2/01/11 (f)    2,250    2,364,975 
Rhode Island — 1.9%                Tobacco Settlement Financing Corporation of Virginia,         
Rhode Island State Health and Educational Building                 Asset-Backed Revenue Bonds, 5.625%, 6/01/15 (e)    930    1,090,072 
 Corporation, Hospital Financing Revenue Bonds                Virginia State, HDA, Commonwealth Mortgage Revenue         
 (Lifespan Obligation Group), 6.50%, 8/15/12 (e)        2,190    2,540,794     Bonds, Series H, Sub-Series H-1, 5.375%, 7/01/36 (a)    7,900    7,804,726 
                Virginia State, HDA, Rental Housing Revenue Bonds,         
South Carolina — 3.5%                 AMT, Series B, 5.625%, 8/01/11    1,095    1,127,653 
Medical University Hospital Authority, South Carolina,                Virginia State, HDA, Revenue Bonds, AMT, Series D,         
 Hospital Facilities Revenue Refunding Bonds, Series A,             6%, 4/01/24    3,200    3,221,856 
 6.375%, 8/15/12 (e)        2,080    2,433,954             
South Carolina Jobs, EDA, EDR (Westminster Presbyterian                    16,620,180 
 Center), 7.75%, 11/15/10 (e)        2,000    2,281,300    Washington — 0.6%         
            4,715,254    Seattle, Washington, Housing Authority Revenue Bonds         
                 (Replacement Housing Project), 6.125%, 12/01/32    975    743,905 
South Dakota — 0.9%                         
South Dakota State Health and Educational Facilities            Wisconsin — 0.9%         
 Authority Revenue Bonds (Sanford Health), 5%,                Wisconsin State Health and Educational Facilities Authority         
 11/01/40        1,350    1,133,500    Revenue Bonds (SynergyHealth Inc.), 6%, 11/15/32    1,360    1,267,194 
Tennessee — 2.5%                Puerto Rico — 1.9%         
Hardeman County, Tennessee, Correctional Facilities                Puerto Rico Commonwealth Highway and Transportation         
 Corporation Revenue Bonds, Series B, 7.375%,                 Authority, Transportation Revenue Refunding Bonds,         
 8/01/17        2,200    1,851,850     Series N, 5.25%, 7/01/36 (h)    1,945    1,873,813 
Shelby County, Tennessee, Health, Educational and                Puerto Rico Industrial, Medical and Environmental         
 Housing Facility Board, Hospital Revenue Refunding             Pollution Control Facilities Financing Authority, Special         
 Bonds (Methodist Healthcare), 6.50%, 9/01/12 (e)    1,280    1,497,715     Facilities Revenue Bonds (American Airlines Inc.),         
                 Series A, 6.45%, 12/01/25    1,550    705,932 
            3,349,565             
                        2,579,745 

  See Notes to Financial Statements.

8 BLACKROCK MUNIHOLDINGS FUND II, INC. JANUARY 31, 2009

Schedule of Investments (continued)      (Percentages shown are based on Net Assets) 
 
        Par        Municipal Bonds Transferred to    Par     
Municipal Bonds        (000)    Value    Tender Option Bond Trusts (n)    (000)    Value 
 
U.S. Virgin Islands — 1.5%                Washington — 1.0%         
Virgin Islands Government Refinery Facilities, Revenue            Central Puget Sound Regional Transportation Authority,         
 Refunding Bonds (Hovensa Coker Project), AMT,                 Washington, Sales and Use Tax Revenue Bonds,         
 6.50%, 7/01/21    $ 2,680     $ 2,061,858     Series A, 5%, 11/01/32 (g)    $ 1,365     $ 1,336,742 
Total Municipal Bonds — 126.7%        169,691,884    Total Municipal Bonds Transferred to         
                Tender Option Bond Trusts — 28.2%        37,752,717 
                Total Long-Term Investments         
Municipal Bonds Transferred to                (Cost — $228,360,270) — 154.9%    207,444,601 
Tender Option Bond Trusts (n)                           
 
California — 5.0%                           
Sequoia, California, Unified High School District, GO,                           
 Refunding, Series B, 5.50%, 7/01/35 (g)        5,519    5,592,424    Short-Term Securities    Shares     
Tustin, California, Unified School District, Senior Lien                Money Market Funds — 1.6%         
 Special Tax Bonds (Community Facilities District                Merrill Lynch Institutional Tax-Exempt Fund, 0.60% (o)(p)    2,114,078    2,114,078 
 Number 97-1), Series A, 5%, 9/01/32 (g)        1,250    1,157,025    Total Short-Term Securities         
            6,749,449    (Cost — $2,114,078) — 1.6%        2,114,078 
Colorado — 2.0%                Total Investments (Cost — $230,474,348*) — 156.5%    209,558,679 
Colorado Health Facilities Authority Revenue Bonds                Other Assets Less Liabilities — 4.7%        6,292,018 
 (Catholic Health) (g):                Liability for Trust Certificates, Including Interest         
     Series C-3, 5.10%, 10/01/41        1,870    1,613,380       Expense and Fees Payable — (15.6)%    (20,939,657) 
     Series C-7, 5%, 9/01/36        1,200    1,037,652    Preferred Shares, at Redemption Value — (45.6)%    (61,006,886) 
            2,651,032    Net Assets Applicable to Common Shares — 100.0%    $133,904,154 
Connecticut — 3.5%                           
Connecticut State Health and Educational Facilities                         * The cost and unrealized appreciation (depreciation) of investments as of January 
 Authority Revenue Bonds (Yale University):                  31, 2009, as computed for federal income tax purposes, were as follows: 
     Series T-1, 4.70%, 7/01/29        2,300    2,303,082      Aggregate cost    $209,441,708 
     Series X-3, 4.85%, 7/01/37        2,370    2,330,397               
                  Gross unrealized appreciation    $ 6,069,813 
            4,633,479      Gross unrealized depreciation    (26,765,915) 
Massachusetts — 2.2%                  Net unrealized depreciation    $ (20,696,102) 
Massachusetts State School Building Authority, Dedicated                       
 Sales Tax Revenue Bonds, Series A, 5%, 8/15/30 (g)    2,999    3,005,965    (a)  MBIA Insured.         
New York — 2.5%                (b)  FGIC Insured.         
New York City, New York, Sales Tax Asset Receivable                (c)  Represents a zero-coupon bond. Rate shown reflects the current yield as of the 
 Corporation Revenue Bonds, Series A, 5.25%,                  report date.         
 10/15/27 (f)        3,200    3,288,608               
                (d)  XL Capital Insured.         
Tennessee — 1.7%                           
Shelby County, Tennessee, Health, Educational and                (e)  U.S. government securities, held in escrow, are used to pay interest on this 
 Housing Facility Board, Hospital Revenue Refunding              security, as well as to retire the bond in full at the date indicated, typically at 
 Bonds (Saint Jude Children’s Research Hospital),                  a premium to par.         
 5%, 7/01/31        2,500    2,300,700    (f)  AMBAC Insured.         
Texas — 7.0%                (g)  FSA Insured.         
Harris County, Texas, Toll Road Revenue Refunding Bonds,            (h)  Assured Guaranty Insured.         
 Senior Lien, Series A, 5.25%, 8/15/35 (g)        8,730    9,325,561               
                (i)  Issuer filed for bankruptcy and/or is in default of interest payments.     
Virginia — 3.3%                           
University of Virginia, Revenue Refunding Bonds, 5%,                (j)  BHAC Insured.         
 6/01/40        2,730    2,735,870    (k)      GNMA Collateralized.         
Virginia State, HDA, Commonwealth Mortgage Revenue            (l)  ACA Insured.         
 Bonds, Series H, Sub-Series H-1, 5.35%, 7/01/31 (a)    1,725    1,725,311               
                (m)    FHA Insured.         
            4,461,181               

See Notes to Financial Statements.

BLACKROCK MUNIHOLDINGS FUND II, INC. JANUARY 31, 2009 9

Schedule of Investments (concluded)

(n)    Securities represent bonds transferred to a tender option bond trust established 
    in exchange for which the Fund acquired the residual interest certificates. These 
    securities serve as a collateral in a financing transaction. See Note 1 of the 
    Notes to Financial Statements for details of municipal bonds transferred to 
    tender option bond trusts.         
(o)    Investments in companies considered to be an affiliate of the Fund, for purposes 
    of Section 2(a)(3) of the Investment Company Act of 1940, were as follows: 
 
        Net     
    Affiliate    Activity    Income 
 
    Merrill Lynch Institutional Tax-Exempt Fund    2,102,357    $19,355 
 
(p)    Represents the current yield as of report date.         

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

       Valuation    Investments in 
       Inputs    Securities 
    Assets 
       Level 1    $ 2,114,078 
       Level 2    207,444,601 
       Level 3    — 
       Total    $ 209,558,679 
 
 
See Notes to Financial Statements.     

10 BLACKROCK MUNIHOLDINGS FUND II, INC.

JANUARY 31, 2009

Statement of Assets and Liabilities     
 
 
January 31, 2009 (Unaudited)     
 
     Assets     
Investments at value — unaffiliated (cost — $228,360,270)    $ 207,444,601 
Investments at value — affiliated (cost — $2,114,078)    2,114,078 
Cash    91,661 
Investments sold receivable    3,730,187 
Interest receivable    3,304,773 
Prepaid expenses    9,228 
Other assets    460 
Total assets    216,694,988 
 
     Accrued Liabilities     
Income dividends payable — Common Shares    703,916 
Interest expense and fees payable    126,584 
Investment advisory fees payable    102,359 
Officer’s and Directors’ fees payable    229 
Other affiliates payable    1,160 
Other accrued expenses payable    36,627 
Total liabilities    970,875 
 
     Other Liabilities     
Trust certificates1    20,813,073 
Total Liabilities    21,783,948 
 
     Preferred Shares at Redemption Value     
2,440 shares of $0.10 par value per share (Series A and Series B), at $25,000 per share liquidation preference, plus unpaid dividends    61,006,886 
Net Assets Applicable to Common Shareholders    $ 133,904,154 
 
     Net Assets Applicable to Common Shareholders Consist of     
Common Shares, $0.10 par value per share, 200,000,000 shares authorized; 11,173,277 shares issued and outstanding    $ 1,117,328 
Paid-in capital in excess of par    164,838,271 
Undistributed net investment income    1,707,832 
Accumulated net realized loss    (12,843,608) 
Net unrealized appreciation/depreciation    (20,915,669) 
Net Assets Applicable to Common Shareholders — $11.98 net asset value per Common Share    $ 133,904,154 
   1 Represents short-term floating rate certificates issued by tender option bond trusts.     
 
 
See Notes to Financial Statements.     

BLACKROCK MUNIHOLDINGS FUND II, INC.

JANUARY 31, 2009

11

Statement of Operations     
 
 
Six Months Ended January 31, 2009 (Unaudited)     
 
     Investment Income     
Interest    $ 6,344,934 
Income — affiliated    19,355 
Total income    6,364,289 
 
     Expenses     
Investment advisory    628,988 
Commissions for Preferred Shares    70,229 
Professional    53,456 
Accounting services    35,117 
Transfer agent    17,975 
Printing    16,148 
Officer and Directors    9,542 
Custodian    7,755 
Registration    2,196 
Miscellaneous    29,334 
Total expenses excluding interest expense and fees    870,740 
Interest expense and fees1    344,545 
Total expenses    1,215,285 
Less fee waived by advisor    (2,248) 
Total expenses after waiver    1,213,037 
Net investment income    5,151,252 
 
     Realized and Unrealized Loss     
Net realized loss on investments    (210,762) 
Net change in unrealized appreciation/depreciation on investments    (18,240,733) 
Total realized and unrealized loss    (18,451,495) 
 
     Dividends to Preferred Shareholders From     
Net investment income    (982,624) 
Net Decrease in Net Assets Applicable to Common Shareholders Resulting from Operations    $ (14,282,867) 
   1 Related to tender option bond trusts.     
 
 
See Notes to Financial Statements.     

12 BLACKROCK MUNIHOLDINGS FUND II, INC.

JANUARY 31, 2009

Statements of Changes in Net Assets         
 
    Six Months     
    Ended     
    January 31,    Year Ended 
    2009         July 31, 
Increase (Decrease) in Net Assets Applicable to Common Shareholders:    (Unaudited)    2008 
     Operations         
Net investment income    $ 5,151,252    $ 11,633,362 
Net realized gain (loss)    (210,762)    1,066,947 
Net change in unrealized appreciation/depreciation    (18,240,733)    (13,811,243) 
Dividends to Preferred Shareholders from net investment income    (982,624)    (2,964,352) 
Net decrease in net assets applicable to Common Shareholders resulting from operations    (14,282,867)    (4,075,286) 
 
     Dividends to Common Shareholders From         
Net investment income    (4,445,970)    (8,477,052) 
 
     Net Assets Applicable to Common Shareholders         
Total decrease in net assets applicable to Common Shareholders    (18,728,837)    (12,552,338) 
Beginning of period    152,632,991    165,185,329 
End of period    $ 133,904,154    $ 152,632,991 
End of period undistributed net investment income    $ 1,707,832    $ 1,985,174 

See Notes to Financial Statements.

BLACKROCK MUNIHOLDINGS FUND II, INC.

JANUARY 31, 2009

13

Statement of Cash Flows     
 
Six Months Ended January 31, 2009 (Unaudited)     
 
     Cash Provided by Operating Activities     
Net decrease in net assets resulting from operations excluding dividends to Preferred Shareholders    $ (13,300,243) 
Adjustments to reconcile net decrease in net assets resulting from operations to net cash provided by operating activities:     
   Decrease in interest receivable    133,605 
   Increase in prepaid expenses and other assets    (460) 
   Decrease in accrued liabilities    (112,976) 
   Net realized and unrealized loss on investments    18,451,495 
Amortization of premium and discount on investments    308,719 
Proceeds from sales of long-term investments    29,342,792 
Purchases of long-term investments    (10,050,439) 
Net purchases of short-term investments    (1,702,358) 
Cash provided by operating activities    23,070,135 
 
     Cash Used for Financing Activities     
Cash receipts from trust certificates    13,732,468 
Cash payments for trust certificates    (31,330,743) 
Cash dividends paid to Common Shareholders    (4,445,970) 
Cash dividends paid to Preferred Shareholders    (993,555) 
Cash used for financing activities    (23,037,800) 
 
     Cash     
Net increase in cash    32,335 
Cash at beginning of period    59,326 
Cash at end of period    $ 91,661 
 
     Cash Flow Information     
Cash paid for interest    $ 388,452 

See Notes to Financial Statements.

14 BLACKROCK MUNIHOLDINGS FUND II, INC.

JANUARY 31, 2009

Financial Highlights                         
 
    Six Months                     
         Ended                     
    January 31,                     
         2009        Year Ended July 31,         
       
 
 
 
    (Unaudited)    2008    2007    2006    2005    2004 
     Per Share Operating Performance                         
Net asset value, beginning of period    $ 13.66    $ 14.78    $ 14.82    $ 15.03    $ 13.98    $ 13.46 
Net investment income1    0.46    1.04    1.05    1.04    1.08    1.15 
Net realized and unrealized gain (loss)    (1.65)    (1.14)    (0.05)    (0.11)    1.15    0.50 
Dividends to Preferred Shareholders from net investment income    (0.09)    (0.26)    (0.27)    (0.23)    (0.14)    (0.10) 
Net increase (decrease) from investment operations    (1.28)    (0.36)    0.73    0.70    2.09    1.55 
Dividends to Common Shareholders from net investment income    (0.40)    (0.76)    (0.77)    (0.91)    (1.04)    (1.03) 
Net asset value, end of period    $ 11.98    $ 13.66    $ 14.78    $ 14.82    $ 15.03    $ 13.98 
Market price, end of period    $ 10.89    $ 13.01    $ 13.99    $ 14.12    $ 15.25    $ 13.53 
 
     Total Investment Return2                         
Based on net asset value    (8.95)%3    (2.30)%    5.08%    4.89%    15.46%    11.88% 
Based on market price    (13.09)%3    (1.69)%    4.39%    (1.50)%    21.04%    10.75% 
 
     Ratios to Average Net Assets Applicable to Common Shares                         
Total expenses after waiver and excluding interest expense and fees4,5    1.25%6    1.18%    1.19%    1.18%    1.19%    1.21% 
Total expenses after waiver5    1.75%6    1.55%    1.63%    1.44%    1.27%    1.30% 
Total expenses5    1.75%6    1.55%    1.63%    1.44%    1.27%    1.31% 
Net investment income5    7.42%6    7.07%    6.97%    7.04%    7.38%    8.13% 
Dividends to Preferred Shareholders    1.41%6    1.79%    1.82%    1.55%    0.98%    0.69% 
Net investment income to Common Shareholders    6.01%6    5.28%    5.15%    5.49%    6.40%    7.44% 
 
     Supplemental Data:                         
Net assets applicable to Common Shares, end of period (000)    $ 133,904    $ 152,633    $ 165,185    $ 165,565    $ 167,588    $ 155,583 
Preferred Shares outstanding at liquidation preference,                         
end of period (000)    $ 61,000    $ 61,000    $ 87,000    $ 87,000    $ 87,000    $ 87,000 
Portfolio turnover    5%    28%    15%    41%    38%    29% 
Asset coverage per Preferred Share, end of period    $ 79,882    $ 87,5627    $ 72,4787    $ 72,5857    $ 73,1637    $ 69,7257 

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

See Notes to Financial Statements.

BLACKROCK MUNIHOLDINGS FUND II, INC.

JANUARY 31, 2009

15

Notes to Financial Statements (Unaudited)

1. Organization and Significant Accounting Policies:

BlackRock MuniHoldings Fund II, Inc. (the “Fund”) is registered under the
Investment Company Act of 1940, as amended (the “1940 Act”), as a
non-diversified, closed-end management investment company. The Fund
is organized as a Maryland corporation. The Fund’s financial statements
are prepared in conformity with accounting principles generally accepted
in the United States of America, which may require the use of manage-
ment accruals and estimates. Actual results may differ from these esti-
mates. The Fund determines and makes available for publication the net
asset value of its Common Shares on a daily basis.

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

Valuation of Investments: Municipal investments (including commit-
ments to purchase such investments on a “when-issued” basis) are val-
ued on the basis of prices provided by dealers or pricing services select-
ed under the supervision of the Fund’s Board of Directors (the “Board”).
In determining the value of a particular investment, pricing services may
use certain information with respect to transactions in such investments,
quotations from dealers, pricing matrixes, market transactions in compa-
rable investments and information with respect to various relationships
between investments. Short-term securities with maturities less than
60 days are valued at amortized cost, which approximates fair value.
Investments in open-end investment companies are valued at net
asset value each business day.

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

Forward Commitments and When-Issued Delayed Delivery Securities:
The Fund may purchase securities on a when-issued basis and may
purchase or sell securities on a forward commitment basis. Settlement
of such transactions normally occurs within a month or more after the
purchase or sale commitment is made. The Fund may purchase securi-
ties under such conditions only with the intention of actually acquiring
them, but may enter into a separate agreement to sell the securities
before the settlement date. Since the value of securities purchased may
fluctuate prior to settlement, the Fund may be required to pay more at
settlement than the security is worth. In addition, the purchaser is not
entitled to any of the interest earned prior to settlement. When purchas-
ing a security on a delay-delivering basis, the Fund assumes the rights

and risks of ownership of the security, including the risk of price and
yield fluctuations.

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

The cash received by the TOB from the sale of the short-term floating
rate certificates, less transaction expenses, is paid to the Fund, which
typically invests the cash in additional municipal bonds. The Fund’s
transfer of the municipal bonds to a TOB is accounted for as a secured
borrowing, therefore the municipal bonds deposited into a TOB are pre-
sented in the Fund’s Schedule of Investments and the proceeds from
the issuance of the short-term floating rate certificates are shown on the
Statement of Assets and Liabilities as trust certificates.

Interest income from the underlying securities is recorded by the Fund
on an accrual basis. Interest expense incurred on the secured borrowing
and other expenses related to remarketing, administration and trustee
services to a TOB are reported as expenses of the Fund. The floating
rate certificates have interest rates that generally reset weekly and
their holders have the option to tender certificates to the TOB for
redemption at par at each reset date. As of January 31, 2009, the
aggregate value of the underlying municipal securities transferred to
TOBs was $37,752,717, the related liability for trust certificates was
$20,813,073 and the range of interest rates on trust certificates
was 1.940% – 3.390% .

Financial transactions executed through TOBs generally will underperform
the market for fixed rate municipal bonds when short-term interest rates
rise, but tend to outperform the market for fixed rate bonds when short-

16 BLACKROCK MUNIHOLDINGS FUND II, INC.

JANUARY 31, 2009

Notes to Financial Statements (continued)

term interest rates decline or remain relatively stable. Should short-term
interest rates rise, the Fund’s investment in TOBs may adversely affect
the Fund’s investment income and distributions to shareholders. Also,
fluctuations in the market value of municipal bonds deposited into the
TOB may adversely affect the Fund’s net asset values per share.

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

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

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

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

The Fund files US federal and various state and local tax returns. No
income tax returns are currently under examination. The statute of limita-
tions on the Fund’s US federal tax returns remains open for each of the
four years ended July 31, 2008. The statutes of limitations on the Fund’s
state and local tax returns may remain open for an additional year
depending upon the jurisdiction.

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

Deferred Compensation and BlackRock Closed-End Share Equivalent
Investment Plan: Under the deferred compensation plan approved by
the Fund’s Board, non-interested Directors (“Independent Directors”)
defer a portion of their annual complex-wide compensation. Deferred

amounts earn an approximate return as though equivalent dollar
amounts have been invested in common shares of other certain
BlackRock Closed-End Funds selected by the Independent Directors.
This has approximately the same economic effect for the Independent
Directors as if the Independent Directors had invested the deferred
amounts directly in the other certain BlackRock Closed-End Funds.

The deferred compensation plan is not funded and obligations there-
under represent general unsecured claims against the general assets of
the Fund. The Fund may, however, elect to invest in common shares of
other certain BlackRock Closed-End Funds selected by the Independent
Directors in order to match its deferred compensation obligations.

Other: Expenses directly related to the Fund are charged to that
Fund. Other operating expenses shared by several funds are pro-rated
among those funds on the basis of relative net assets or other appro-
priate methods.

2. Investment Advisory Agreement and Other Transactions
with Affiliates:

The Fund has entered into an Investment Advisory Agreement with
BlackRock Advisors, LLC (the “Advisor”), an indirect, wholly owned
subsidiary of BlackRock, Inc., to provide investment advisory and admin-
istration services. As of January 31, 2009, The PNC Financial Services
Group, Inc. (“PNC”) and Bank of America Corporation (“BAC”) are the
largest stockholders of BlackRock, Inc. (“BlackRock”). BAC became a
stockholder of BlackRock following its acquisition of Merrill Lynch & Co.,
Inc. (“Merrill Lynch”) on January 1, 2009. Prior to that date, both PNC
and Merrill Lynch were considered affiliates of the Fund under the 1940
Act. Subsequent to the acquisition, PNC remains an affiliate, but due to
the restructuring of Merrill Lynch’s ownership interest of BlackRock, BAC
is not deemed to be an affiliate under the 1940 Act.

The Advisor is responsible for the management of the Fund’s portfolio
and provides the necessary personnel, facilities, equipment and certain
other services necessary to the operations of the Fund. For such services,
the Fund pays the Advisor a monthly fee at an annual rate of 0.55%
of the Fund’s average daily net assets. Average daily net assets is the
average daily value of the Fund’s total assets minus the sum of its
accrued liabilities.

The Advisor has agreed to waive its advisory fees by the amount of
investment advisory fees the Fund pays to the Advisor indirectly through
its investment in affiliated money market funds. This amount is included
in fees waived by advisor on the Statement of Operations.

The Advisor has entered into a separate sub-advisory agreement with
BlackRock Investment Management, LLC (“BIM”), an affiliate of the
Advisor, under which the Advisor pays BIM for services it provides, a
monthly fee that is a percentage of the investment advisory fee paid
by the Fund to the Advisor.

BLACKROCK MUNIHOLDINGS FUND II, INC.

JANUARY 31, 2009

17

Notes to Financial Statements (continued)

For the six months ended January 31, 2009, the Fund reimbursed the
Advisor $1,969 for certain accounting services, which is included in
accounting services on the Statement of Operations.

Certain officers and/or directors of the Fund are officers and/or directors
of BlackRock, Inc. or its affiliates. The Fund reimburses the Advisor for
compensation paid to the Fund’s Chief Compliance Officer.

3. Investments:

Purchases and sales of investments, excluding short-term securities, for
the six months ended January 31, 2009 were $10,050,439 and
$33,072,979, respectively.

4. Concentration, Market and Credit Risk:

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

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

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

5. Capital Share Transactions:

Common Shares

The Fund is authorized to issue 200,000,000 shares, including
Preferred Shares, par value $0.10 per share, all of which were initially
classified as Common Shares. The Board is authorized however to
reclassify any unissued Common Shares without approval of the holders
of Common Shares.

Shares issued and outstanding for the six months ended January 31,
2009 and the year ended July 31, 2008 remained constant.

Preferred Shares

The Preferred Shares are redeemable at the option of the Fund, in whole
or in part, on any dividend payment date at its liquidation preference
per share plus any accumulated or unpaid dividends whether or not
declared. The Preferred Shares are also subject to mandatory redemp-
tion at $25,000 per share plus any accumulated or unpaid dividends,
whether or not declared, if certain requirements relating to the composi-
tion of the assets and liabilities of the Fund, as set forth in the Fund’s
Articles Supplementary, are not satisfied.

The holders of Preferred Shares have voting rights equal to the holders
of Common Shares (one vote per share) and will vote together with
holders of Common Shares (one vote per share) as a single class.
However, the holders of Preferred Shares, voting as a separate class, are
also entitled to elect two Directors for the Fund. In addition, the 1940
Act requires that along with approval by shareholders that might other-
wise be required, the approval of the holders of a majority of any out-
standing Preferred Shares, voting separately as a class would be
required to (a) adopt any plan of reorganization that would adversely
affect the Preferred Shares, (b) change the Fund’s subclassification as a
closed-end investment company or change its fundamental investment
restrictions or (c) change its business so as to cease to be an invest-
ment company.

The Fund had the following series of Preferred Shares outstanding and
effective yields at January 31, 2009:

    Shares    Yield 
Series A    1,220    0.731% 
Series B    1,220    0.716% 

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

    Low    High    Average 
Series A    0.594%    11.347%    3.610% 
Series B    0.594%    11.728%    3.113% 

18 BLACKROCK MUNIHOLDINGS FUND II, INC.

JANUARY 31, 2009

Notes to Financial Statements (concluded)

For the six months ended January 31, 2009, the Preferred Shares of the
Fund failed to clear any of its auctions. As a result, the Preferred Shares
dividend rates were reset to the maximum applicable rate, which ranged
from 0.594% to 11.728% . A failed auction is not an event of default for
the Fund but has a negative impact on the liquidity of Preferred Shares.
A failed auction occurs when there are more sellers of a fund’s auction
rate preferred shares than buyers. It is impossible to predict how long
this imbalance will last. A successful auction for the Fund’s Preferred
Shares may not occur for some time, if ever, and even if liquidity does
resume, Preferred Shareholders may not have the ability to sell the
Preferred Shares at their liquidation preference.

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

Prior to December 22, 2008, the Fund paid commissions to certain
broker-dealers at the end of each auction at an annual rate of 0.25%,
calculated on the aggregate principal amount. As of December 22,
2008, commissions paid to broker-dealers on preferred shares that
experienced a failed auction were reduced to 0.15% on the aggregate
principal amount. The Fund will continue to pay commissions of 0.25%
on the aggregate principal amount of all shares that successfully
clear their auctions. Merrill Lynch, Pierce, Fenner & Smith Incorporated
(“MLPF&S”), a wholly owned subsidiary of Merrill Lynch, earned commis-
sions of $65,949 for the period August 1, 2008 through December 31,
2008. Subsequent to that date, neither MLPF&S or Merrill Lynch are
considered affiliates of the Fund.

Shares issued and outstanding during the six months ended January 31,
2009 remained constant.

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

    Redemption    Shares    Aggregate 
    Date    Redeemed    Principal 
Series A    6/25/08    520    $13,000,000 
Series B    6/23/08    520    $13,000,000 

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

6. Capital Loss Carryforward:

As of July 31, 2008, the Fund had capital loss carryforwards
available to offset future realized capital gains through the indicated
year of expiration:

Expires July 31,     
2009    $12,107,981 
2010    689,205 
2011    189,408 
Total    $12,986,594 

7. Restatement Information:

Subsequent to the initial issuance of their July 31, 2006 financial state-
ments, the Fund determined that the criteria for sale accounting had not
been met for certain transfers of municipal bonds, and that these trans-
fers should have been accounted for as secured borrowings rather than
as sales. As a result, certain financial highlights for the years ended July
31, 2005 and July 31, 2004 have been restated to give effect to record-
ing the transfers of the municipal bonds as secured borrowings, includ-
ing recording interest on the bonds as interest income and interest on
the secured borrowings as interest expense.

Financial Highlights                 
Years Ended July 31, 2005 and 2004             
    2005    2004 
    Previously        Previously     
    Reported    Restated    Reported    Restated 
Total expenses,                 
 net of reimbursement*    1.19%    1.27%    1.21%    1.30% 
Total expenses*    1.19%    1.27%    1.22%    1.31% 
Portfolio turnover    45.11%    38%    31.03%    29% 
 
 
 
 
 * Do not reflect the effect of dividends to Preferred Shareholders.     

8. Subsequent Events:

The Fund paid a net investment income dividend to holders of Common
Shares in the amount of $0.063 per share on March 2, 2009 to share-
holders of record on February 13, 2009.

The dividends declared on Preferred Shares for the period February 1,
2009 to February 28, 2009 were as follows:

    Dividends 
    Declared 
Series A    $ 17,244 
Series B    $ 17,363 

BLACKROCK MUNIHOLDINGS FUND II, INC.

JANUARY 31, 2009

19

Officers and Directors

Richard E. Cavanagh, Chairman of the Board and Director
Karen . Robards, Vice Chair of the Board, Chair of the
Audit Committee and Director
G. Nicholas Beckwith, III, Director
Richard S. Davis, Director
Kent Dixon, Director
Frank J. Fabozzi, Director
Kathleen F. Feldstein, Director
James T. Flynn, Director
Henry Gabbay, Director
Jerrold B. Harris, Director
R. Glenn Hubbard, Director
W. Carl Kester, Director
Donald C. Burke, Fund President and Chief Executive Officer
Anne F. Ackerley, Vice President
Neal J. Andrews, Chief Financial Officer
Jay M. Fife, Treasurer
Brian . Kindelan, Chief Compliance Officer of the Funds
Howard B. Surloff, Secretary

Custodian
The Bank of New York Mellon
New York, NY 10286

Transfer Agent
Common Stock &
Preferred Stock
BNY Mellon Shareowner Services
Jersey City, NJ 07310

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

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

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

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

20 BLACKROCK MUNIHOLDINGS FUND II, INC. JANUARY 31, 2009

Additional Information

Proxy Results

The Annual Meeting of Shareholders was held on September 12, 2008 for shareholders of record on July 14, 2008, to elect director nominees of
the Fund:

        Votes For    Votes Withheld 
Approved the Directors as follows:    G. Nicholas Beckwith, III    10,079,959    234,511 
    Kent Dixon    10,089,808    224,662 
    R. Glenn Hubbard    10,092,399    222,071 
    W. Carl Kester    1,9801    1341 
    Robert S. Salomon, Jr.    10,083,353    231,117 
    Richard S. Davis    10,092,173    222,297 
    Frank J. Fabozzi    1,9801    1341 
    James T. Flynn    10,085,949    228,521 
    Karen . Robards    10,091,013    223,457 
    Richard E. Cavanagh    10,091,399    223,071 
    Kathleen F. Feldstein    10,083,513    230,957 
    Henry Gabbay    10,089,156    225,314 
    Jerrold B. Harris    10,089,808    224,662 
 
 
 
   1 Voted on by holders of Preferred Shares only.             

BLACKROCK MUNIHOLDINGS FUND II, INC.

JANUARY 31, 2009

21

Additional Information (continued)

Dividend Policy

The Fund’s dividend policy is to distribute all or a portion of their net
investment income to its shareholders on a monthly basis. In order to
provide shareholders with a more stable level of dividend distributions,
the Fund may at times pay out less than the entire amount of net invest-
ment income earned in any particular month and may at times in any
particular month pay out such accumulated but undistributed income
in addition to net investment income earned in that month. As a result,

the dividends paid by the Fund for any particular month may be more
or less than the amount of net investment income earned by the Fund
during such month. The Fund’s 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 Fund will mail only one copy of shareholder documents, including
annual and semi-annual reports and proxy statements, to shareholders
with multiple accounts at the same address. This practice is commonly
called “householding” and it is intended to reduce expenses and elimi-
nate duplicate mailings of shareholder documents. Mailings of your
shareholder documents may be householded indefinitely unless you
instruct us otherwise. If you do not want the mailing of these documents
to be combined with those for other members of your household, please
contact the Fund at (800) 441-7762.

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

Availability of Quarterly Schedule of Investments

The Fund files its complete schedule of portfolio holdings with the
SEC for the first and third quarters of each fiscal year on Form
N-Q. The Fund’s Forms N-Q are available on the SEC’s website at
http://www.sec.gov and may also be reviewed and copied at the

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

22 BLACKROCK MUNIHOLDINGS FUND II, INC.

JANUARY 31, 2009

Additional Information (concluded)

Electronic Delivery

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

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

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

Articles Supplementary

Effective September 13, 2008, following approval by the Fund’s Board
and the applicable rating agencies, the Board amended the terms of
the Fund’s Articles Supplementary in order to allow the Fund to enter
into TOB transactions, the proceeds of which were used to redeem a
portion of the Fund’s Preferred Shares. Accordingly, the definition of
Inverse Floaters was amended to incorporate the Fund’s permissible

ratio of floating rate instruments into inverse floating rate instruments.
Additionally, conforming changes and certain formula modifications
concerning inverse floaters were made to the definitions of Moody’s
Discount Factor and S&P Discount Factor, as applicable, to integrate
the Fund’s investments in TOBs into applicable calculations.

Section 19 Notices

The amounts and sources of distributions reported are only estimates and
are not being provided for tax reporting purposes. The actual amounts and
sources for tax reporting purposes will depend upon the Fund’s investment
experience during the year and may be subject to changes based on the

tax regulations. The Fund will send you a Form 1099-DIV each calendar
year that will tell you how to report these distributions for federal income
tax purposes.

    Total Fiscal Year-to-Date            Percentage of Fiscal Year-to-Date     
    Cumulative Distributions by Character            Cumulative Distributions by Character     
 
Net    Net Realized        Total Per    Net    Net Realized        Total Per 
Investment    Capital    Return of    Common    Investment    Capital    Return of    Common 
Income    Gains    Capital    Share    Income    Gains    Capital    Share 
$0.398    —    —    $0.398    100%    0%    0%    100% 

BLACKROCK MUNIHOLDINGS FUND II, INC. JANUARY 31, 2009 23


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

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

BlackRock MuniHoldings Fund II, Inc.
100 Bellevue Parkway
Wilmington, DE 19809

 

#MHIINJIN-SAR-01/09

Item 2 – Code of Ethics – Not Applicable to this semi-annual report

Item 3 – Audit Committee Financial Expert – Not Applicable to this semi-annual report

Item 4 – Principal Accountant Fees and Services – Not Applicable to this semi-annual report

Item 5 – Audit Committee of Listed Registrants – Not Applicable to this semi-annual report

Item 6 – Investments
(a) The registrant’s Schedule of Investments is included as part of the Report to Stockholders filed under
Item 1 of this form.
(b) Not Applicable due to no such divestments during the semi-annual period covered since the previous
Form N-CSR filing.

Item 7 – Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies –
Not Applicable to this semi-annual report

Item 8 – Portfolio Managers of Closed-End Management Investment Companies – Not Applicable to this semi-
annual report

Item 9 – Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated
Purchasers – Not Applicable

Item 10 – Submission of Matters to a Vote of Security Holders – The registrant’s Nominating and Governance
Committee will consider nominees to the board of directors recommended by shareholders when a vacancy
becomes available. Shareholders who wish to recommend a nominee should send nominations that include
biographical information and set forth the qualifications of the proposed nominee to the registrant’s
Secretary. There have been no material changes to these procedures.

Item 11 – Controls and Procedures

11(a) – The registrant’s principal executive and principal financial officers or persons performing similar functions
have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under
the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90
days of the filing of this report based on the evaluation of these controls and procedures required by Rule
30a-3(b) under the 1940 Act and Rule 13(a)-15(b) under the Securities Exchange Act of 1934, as amended.

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

Item 12 – Exhibits attached hereto

12(a)(1) – Code of Ethics – Not Applicable to this semi-annual report

12(a)(2) – Certifications – Attached hereto

12(a)(3) – Not Applicable

12(b) – Certifications – Attached hereto

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

BlackRock MuniHoldings Fund II, Inc.

By: /s/ Donald C. Burke
Donald C. Burke
Chief Executive Officer of
BlackRock MuniHoldings Fund II, Inc.

Date: March 25, 2009

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

By: /s/ Donald C. Burke
Donald C. Burke
Chief Executive Officer (principal executive officer) of
BlackRock MuniHoldings Fund II, Inc.

Date: March 25, 2009

By: /s/ Neal J. Andrews
Neal J. Andrews
Chief Financial Officer (principal financial officer) of
BlackRock MuniHoldings Fund II, Inc.

Date: March 25, 2009