BJZ Blackrock California Municipal 2018 Term Trust Blackrock California Municipal 2018 Term Trust (delisted)

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: 811-04375

Name of Fund: BlackRock New York Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock New York Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust, 55 East 52 ^nd Street, New York, NY 10055

Registrant’s telephone number, including area code: (800) 441-7762

Date of fiscal year end: 06/30/2014

Date of reporting period: 12/31/2013

Item 1 – Report to Stockholders

 

 

 

DECEMBER 31, 2013

SEMI-ANNUAL REPORT (UNAUDITED)

BlackRock Municipal Bond Fund, Inc.

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BlackRock High Yield Municipal Fund

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BlackRock National Municipal Fund

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BlackRock Short-Term Municipal Fund

BlackRock Multi-State Municipal Series Trust

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BlackRock New York Municipal Bond Fund

Not FDIC Insured • May Lose Value • No Bank Guarantee

Table of Contents

					Page
Dear Shareholder					3
Semi-Annual Report:
Fund Summaries					4
About Fund Performance					12
Disclosure of Expenses					13
The Benefits and Risks of Leveraging					14
Derivative Financial Instruments					14
Financial Statements:
Schedules of Investments					15
Statements of Assets and Liabilities					41
Statements of Operations					43
Statements of Changes in Net Assets					44
Statement of Cash Flows					48
Financial Highlights					49
Notes to Financial Statements					69
Officers and Directors					80
Additional Information					81
A World-Class Mutual Fund Family					83

2

SEMI-ANNUAL REPORT

DECEMBER 31, 2013

Dear Shareholder

Risk assets (such as equities) powered higher in 2013, for the most part unscathed by ongoing political and economic uncertainty. While monetary policy was the main driving force behind the rally in risk assets, it was also the main culprit for the bouts of volatility during the year.

Equity markets rallied right out of the gate in January with cash pouring back in from the sidelines after a potential US fiscal crisis (i.e., the “fiscal cliff”) was averted with a last-minute tax deal. Key indicators signaling modest but broad-based improvements in the world’s major economies and a calming in Europe’s debt troubles fostered an aura of comfort for investors. Global economic momentum slowed in February, however, and the pace of the rally moderated. In the months that followed, US stocks outperformed international stocks, as the US showed greater stability than most other regions. Slow but positive growth was sufficient to support corporate earnings, while uncomfortably high unemployment reinforced expectations that the Federal Reserve would continue its aggressive monetary stimulus program. International markets experienced higher levels of volatility given a resurgence of political instability in Italy, a banking crisis in Cyprus and a generally poor outlook for European economies. Emerging markets significantly lagged the rest of the world as growth in these economies fell short of expectations.

Financial markets were rattled in May when Fed Chairman Bernanke mentioned the possibility of reducing — or “tapering” — the central bank’s asset purchase programs — comments that were widely misinterpreted as signaling an end to the Fed’s zero-interest-rate policy. US Treasury yields rose sharply, triggering a steep sell-off across fixed income markets. (Bond prices move in the opposite direction of yields.) Equity prices also suffered as investors feared the implications of a potential end of a program that had greatly supported the markets. Risk assets rebounded in late June, however, when the Fed’s tone turned more dovish, and improving economic indicators and better corporate earnings helped extend gains through most of the summer.

The fall was a surprisingly positive period for most asset classes as the Fed defied market expectations with its decision to delay tapering. Easing of political tensions that had earlier surfaced in Egypt and Syria and the re-election of Angela Merkel as Chancellor of Germany also boosted investor sentiment. Higher volatility returned in late September when the US Treasury Department warned that the national debt would soon breach its statutory maximum. The ensuing political brinksmanship led to a partial government shutdown, roiling global financial markets through the first half of October, but the rally quickly resumed when politicians engineered a compromise to reopen the government and extend the debt ceiling, at least temporarily.

The remainder of the year was generally positive for stock markets in the developed world, although investors continued to grapple with uncertainty about when and how much the Fed would scale back on stimulus. On the one hand, persistent weak growth and low inflation provided significant latitude for monetary policy decisions and investors were encouraged by dovish comments from Fed Chair-to-be Janet Yellen. On the other hand, US housing and manufacturing reports had begun to signal fundamental improvement in the economy. The long-awaited taper announcement ultimately came in mid-December. The Fed reduced the amount of its monthly asset purchases, but at the same time, extended its time horizon for maintaining low short-term interest rates. Markets reacted positively as this move signaled the Fed’s perception of real improvement in the economy and investors felt relief from the tenacious anxiety that had gripped them throughout the year.

Accommodative monetary policy and the avoidance of major risks made 2013 a strong year for most equity markets. US stocks were the strongest performers for the six- and 12-month periods ended December 31. In contrast, emerging markets were weighed down by uneven growth and structural imbalances. Rising US Treasury yields led to a rare annual loss in 2013 for Treasury bonds and other high-quality fixed income sectors including tax-exempt municipals and investment grade corporate bonds. High yield bonds, to the contrary, generated gains driven by income-oriented investors seeking yield in the low-rate environment. Short-term interest rates remained near zero, keeping yields on money market securities near historical lows.

At BlackRock, we believe investors need to think globally and extend their scope across a broader array of asset classes and be prepared to move freely as market conditions change over time. We encourage you to talk with your financial advisor and visit www.blackrock.com for further insight about investing in today’s world.

Sincerely,

  

Rob Kapito
President, BlackRock Advisors, LLC

“While monetary policy was the main driving force behind the rally in risk assets, it was also the main culprit for the bouts of volatility during the year.”

Rob Kapito

President, BlackRock Advisors, LLC

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Total Returns as of December 31, 2013

				6-month				12-month
US large cap equities (S&P 500 ® Index)					16.31	%			32.39	%
US small cap equities (Russell 2000 ® Index)					19.82				38.82
International equities (MSCI Europe, Australasia, Far East Index)					17.94				22.78
Emerging market equities (MSCI Emerging Markets Index)					7.70				(2.60	)
3-month Treasury bill (BofA Merrill Lynch 3-Month US Treasury Bill Index)					0.03				0.07
US Treasury securities (BofA Merrill Lynch 10-Year US Treasury Index)					(3.10	)			(7.83	)
US investment grade bonds (Barclays US Aggregate Bond Index)					0.43				(2.02	)
Tax-exempt municipal bonds (S&P Municipal Bond Index)					0.00				(2.55	)
US high yield bonds (Barclays US Corporate High Yield 2% Issuer Capped Index)					5.94				7.44

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

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THIS PAGE NOT PART OF YOUR FUND REPORT

3

Fund Summary  as of December 31, 2013	BlackRock High Yield Municipal Fund

Investment Objective

BlackRock High Yield Municipal Fund’s (the “Fund”) investment objective is to provide shareholders with as high a level of income exempt from federal income taxes as is consistent with the investment policies of the Fund.

Portfolio Management Commentary

How did the Fund perform?

•

For the six-month period ended December 31, 2013, the Fund underperformed the primary benchmark, the S&P ® Municipal Bond Index, and underperformed its secondary benchmark, the S&P ® Customized High Yield Municipal Bond Index. The following discussion of relative performance pertains to the S&P ® Customized High Yield Municipal Bond Index.

What factors influenced performance?

•

During the period, fixed income markets broadly declined in a rising interest rate environment. (Bond prices fall as interest rates rise.) However, relative to the benchmark index, the Fund benefited from maintaining only minimal exposure to Puerto Rico debt, where losses were particularly significant. (The Fund held no exposure at period end.) Additional income generated as a result of the Fund’s leverage also helped performance. An underweight to tobacco bonds proved beneficial as the sector reversed course and generated poor performance for the period.

•

Detracting from relative performance was the Fund’s overweight to higher-rated bonds, which underperformed the broader market during the period. Additionally, the Fund’s long duration stance hurt results in the rising rate environment, as did a yield curve bias that anticipated better performance in bonds with long maturities. Exposure to limited tax obligations of the city of Detroit also had a negative impact on returns.

Describe recent portfolio activity.

•

During the six-month period, portfolio activity was dominated by sales in order to fund escalating shareholder redemptions amid the industry-wide trend of municipal bond mutual fund outflows. The Fund focused on maintaining its existing credit profile, sector weightings and leverage exposure. The Fund’s more recent transactions reflect an emphasis on taking profits on investments in outperforming sectors and redeploying the proceeds in areas offering superior return potential such as utilities, education, tobacco and development districts.

Describe portfolio positioning at period end.

•

As of period end, the Fund continued to maintain a high quality bias while its sector allocations were less concentrated due to the increased exposure in utilities, tobacco and education. In addition, the Fund continued to utilize U.S. Treasury futures to reduce duration relative to the S&P ® Customized High Yield Municipal Bond Index.

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.

Overview of the Fund’s Long-Term Investments

Sector Allocation
Health					26	%
Transportation					18
Utilities					15
County/City/Special District/School District					11
Corporate					10
Education					8
Tobacco					7
State					4
Housing					1

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

Credit Quality Allocation 1
AA/Aa					22	%
A					9
BBB/Baa					30
BB/Ba					10
B					8
Not Rated 2					21

1

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

2

The investment advisor has deemed certain of these securities as investment grade quality. As of December 31, 2013, the market value of these securities was $7,160,706, representing 2% of the Fund’s long-term investments.

Call/Maturity Schedule 3
Calendar Year Ended December 31,
2014					8	%
2015					1
2016					4
2017					5
2018					4

3

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

4

SEMI-ANNUAL REPORT

DECEMBER 31, 2013

	BlackRock High Yield Municipal Fund

Total Return Based on a $10,000 Investment

 

1

Assuming maximum sales charge, if any, transaction costs and other operating expenses, including advisory fees. Institutional Shares do not have a sales charge.

2

The Fund may invest in municipal bonds rated in any rating category or in unrated municipal bonds. The Fund will usually invest in municipal bonds that have a maturity of five years or longer.

3

The S&P ® Municipal Bond Index is composed of bonds held by managed municipal bond fund customers of Standard & Poor’s Securities Pricing, Inc. that are priced daily. Bonds in the S&P ® Municipal Bond Index must have an outstanding par value of at least $2 million and a remaining maturity of not less than 1 month.

4

The S&P ® Customized High Yield Municipal Bond Index is a blended subset of the S&P ® Municipal Bond Index that includes non-insured bonds rated below BBB— or non-rated (85%) and bonds rated BBB (15%), excluding those that are in default, are pre-refunded, or are escrowed to maturity.

5

Commencement of operations.

Performance Summary for the Period Ended December 31, 2013

																Average Annual Total Returns 6
																1 Year								5 Years								Since Inception 7
				Standardized 30-Day Yields				Unsubsidized 30-Day Yields				6-Month Total Returns				w/o sales charge				w/sales charge				w/o sales charge				w/sales charge				w/o sales charge				w/sales charge
Institutional					5.61	%			5.61	%			(2.79	)%			(7.75	)%			N/A				11.80	%			N/A				2.91	%			N/A
Investor A					5.14				5.14				(2.92	)			(8.00	)			(11.91	)%			11.49				10.53	%			2.61				2.01	%
Investor C					4.60				4.60				(3.39	)			(8.68	)			(9.56	)			10.66				10.66				1.87				1.87
S&P ® Municipal Bond Index					—				—				0.00				(2.55	)			N/A				6.34				N/A				4.36				N/A
S&P ® Customized High Yield Municipal Bond Index					—				—				(2.64	)			(4.21	)			N/A				12.31				N/A				3.83				N/A

6

Assuming maximum sales charges, if any. Average annual total returns with and without sales charges reflect reductions for distribution and service fees. See “About Fund Performance” on page 12 for a detailed description of share classes, including any related sales charges and fees.

7

The Fund commenced operations on 8/01/06.

N/A — Not applicable as share class and index do not have a sales charge.

Past performance is not indicative of future results.

Expense Example

				Actual																Hypothetical 10
												During the Period												Including Interest Expense and Fees								Excluding Interest Expense and Fees
				Beginning Account Value July 1, 2013				Ending Account Value December 31, 2013				Including Interest Expense and Fees 8				Excluding Interest Expense and Fees 9				Beginning Account Value July 1, 2013				Ending Account Value December 31, 2013				Expenses Paid During the Period 8				Ending Account Value December 31, 2013				Expenses Paid During the Period 9
Institutional				$	1,000.00			$	972.10			$	4.03			$	3.58			$	1,000.00			$	1,021.12			$	4.13			$	1,021.58			$	3.67
Investor A				$	1,000.00			$	970.80			$	5.27			$	4.82			$	1,000.00			$	1,019.86			$	5.40			$	1,020.32			$	4.94
Investor C				$	1,000.00			$	966.10			$	9.02			$	8.57			$	1,000.00			$	1,016.03			$	9.25			$	1,016.48			$	8.79

8

For each class of the Fund, expenses are equal to the annualized net expense ratio for the class (0.81% for Institutional, 1.06% for Investor A and 1.82% for Investor C), multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period shown).

9

For each class of the Fund, expenses are equal to the annualized net expense ratio for the class (0.72% for Institutional, 0.97% for Investor A and 1.73% for Investor C), multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period shown).

10

Hypothetical 5% annual return before expenses is calculated by pro rating the number of days in the most recent fiscal half year divided by 365.

See “Disclosure of Expenses” on page 13 for further information on how expenses were calculated.

SEMI-ANNUAL REPORT

DECEMBER 31, 2013

5

Fund Summary  as of December 31, 2013	BlackRock National Municipal Fund

Investment Objective

BlackRock National Municipal Fund’s (the “Fund”) investment objective is to provide shareholders with as high a level of income exempt from federal income taxes as is consistent with the investment policies of the Fund.

Portfolio Management Commentary

How did the Fund perform?

•

For the six-month period ended December 31, 2013, the Fund’s Institutional, Service, Investor A, Investor B, Investor C and Investor C1 Shares underperformed the benchmark, the S&P ® Municipal Bond Index, while the BlackRock Shares performed in line with the benchmark.

What factors influenced performance?

•

During the period, fixed income markets broadly declined in a rising interest rate environment. (Bond prices fall as interest rates rise.) However, the Fund outperformed its benchmark index due mainly to the Fund’s high level of income accrual. Fund holdings concentrated on the long end of the yield curve proved beneficial given the steepness of the yield curve during the period. (Longer-maturity issues provided larger yields.) Also adding to returns was the Fund’s exposure to certain sectors where there was some degree of tightening in credit quality spreads. The absence of exposure to Detroit, the tobacco sector and Puerto Rico credits was advantageous for relative performance as spreads widened materially in these segments. Holding tender option bonds contributed to the Fund’s yield advantage and served as a high-quality alternative to lower-rated bonds. The Fund’s holdings of floating rate notes were beneficial as interest rates increased during the period.

•

Detracting from performance relative to the benchmark index was the Fund’s exposure to the health care sector where spreads widened during the period. Cash reserves held for the purpose of providing liquidity hindered results given near-zero interest rates on cash versus investments that contribute more significantly to income accrual.

Describe recent portfolio activity.

•

As municipal bond valuations continued to improve during the period, the Fund increased its credit quality profile by taking advantage of tighter credit quality spreads to sell some of the Fund’s lower-rated holdings that had reached their performance potential. New purchases were concentrated in the primary market where higher coupon rates could be structured. The Fund’s largest exposures to single names were concentrated in the highest quality structures suitable to be held in tender option bond trusts. These holdings provided better relative price appreciation given strong demand from investors looking to create leveraged products, while also providing good liquidity in the Fund. Also during the period, the Fund added exposure to floating rate notes as they offer higher yields than cash, low duration and the potential for price appreciation should short-term interest rates rise in the future.

Describe portfolio positioning at period end.

•

The Fund ended the period with a short duration posture relative to the S&P ® Municipal Bond Index. The Fund maintained a bias toward high-quality securities and continued to focus on a high income accrual, with an average coupon rate at 5.45% as of period end. This level of accrual contributes to total return as high-coupon structures tend to perform well in a rising interest rate environment.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

Overview of the Fund’s Long-Term Investments

Sector Allocation
Utilities					25	%
Transportation					21
Health					21
Education					10
County/City/Special District/School District					9
State					7
Corporate					5
Housing					1
Tobacco					1

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

Credit Quality Allocation 1
AAA/Aaa					12	%
AA/Aa					46
A					32
BBB/Baa					5
BB/Ba					2
Not Rated 2					3

1

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

2

The investment advisor has deemed certain of these securities as investment grade quality. As of December 31, 2013, the market value of these securities was $75,786,586, representing 2% of the Fund’s long-term investments.

Call/Maturity Schedule 3
Calendar Year Ended December 31,
2014					8	%
2015					2
2016					7
2017					9
2018					—

3

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

6

SEMI-ANNUAL REPORT

DECEMBER 31, 2013

	BlackRock National Municipal Fund

Total Return Based on a $10,000 Investment

  

1

Assuming maximum sales charge, if any, transaction costs and other operating expenses, including advisory fees. Institutional Shares do not have a sales charge.

2

The Fund may invest in municipal bonds rated in any rating category or in unrated municipal bonds. The Fund will usually invest in municipal bonds that have a maturity of five years or longer.

3

The S&P ® Municipal Bond Index is composed of bonds held by managed municipal bond fund customers of Standard & Poor’s Securities Pricing, Inc. that are priced daily. Bonds in the S&P ® Municipal Bond Index must have an outstanding par value of at least $2 million and a remaining maturity of not less than 1 month.

Performance Summary for the Period Ended December 31, 2013

																Average Annual Total Returns 4
																1 Year								5 Years								10 Years
				Standardized 30-Day Yields				Unsubsidized 30-Day Yields				6-Month Total Returns				w/o sales charge				w/sales charge				w/o sales charge				w/sales charge				w/o sales charge				w/sales charge
BlackRock					3.84	%			3.74	%			(0.01	)%			(2.95	)%			N/A				7.73	%			N/A				4.68	%			N/A
Institutional					3.72				3.66				(0.07	)			(3.06	)			N/A				7.61				N/A				4.55				N/A
Service					3.55				3.49				(0.21	)			(3.36	)			N/A				7.28				N/A				4.26				N/A
Investor A					3.43				3.30				(0.14	)			(3.19	)			(7.31	)%			7.42				6.49	%			4.34				3.88	%
Investor B					3.07				2.98				(0.39	)			(3.68	)			(7.42	)			6.87				6.57				3.81				3.81
Investor C					2.83				2.72				(0.51	)			(3.92	)			(4.85	)			6.63				6.63				3.54				3.54
Investor C1					3.02				2.92				(0.32	)			(3.65	)			(4.58	)			6.83				6.83				3.76				3.76
S&P ® Municipal Bond Index					—				—				0.00				(2.55	)			N/A				6.34				N/A				4.33				N/A

4

Assuming maximum sales charges, if any. Average annual total returns with and without sales charges reflect reductions for distribution and service fees. See “About Fund Performance” on page 12 for a detailed description of share classes, including any related sales charges and fees.

N/A — Not applicable as share class and index do not have a sales charge.

Past performance is not indicative of future results.

Expense Example

				Actual																Hypothetical 7
												During the Period												Including Interest Expense and Fees								Excluding Interest Expense and Fees
				Beginning Account Value July 1, 2013				Ending Account Value December 31, 2013				Including Interest Expense and Fees 5				Excluding Interest Expense and Fees 6				Beginning Account Value July 1, 2013				Ending Account Value December 31, 2013				Expenses Paid During the Period 5				Ending Account Value December 31, 2013				Expenses Paid During the Period 6
BlackRock				$	1,000.00			$	999.90			$	2.67			$	2.32			$	1,000.00			$	1,022.53			$	2.70			$	1,022.89			$	2.35
Institutional				$	1,000.00			$	999.30			$	3.28			$	2.92			$	1,000.00			$	1,021.93			$	3.31			$	1,022.28			$	2.96
Service				$	1,000.00			$	997.90			$	4.63			$	4.28			$	1,000.00			$	1,020.57			$	4.69			$	1,020.92			$	4.33
Investor A				$	1,000.00			$	998.60			$	3.98			$	3.63			$	1,000.00			$	1,021.22			$	4.02			$	1,021.58			$	3.67
Investor B				$	1,000.00			$	996.10			$	6.54			$	6.19			$	1,000.00			$	1,018.65			$	6.61			$	1,009.50			$	6.26
Investor C				$	1,000.00			$	994.90			$	7.74			$	7.39			$	1,000.00			$	1,017.44			$	7.83			$	1,008.90			$	7.48
Investor C1				$	1,000.00			$	996.80			$	6.79			$	6.44			$	1,000.00			$	1,018.40			$	6.87			$	1,009.38			$	6.51

5

For each class of the Fund, expenses are equal to the annualized net expense ratio for the class (0.53% for BlackRock, 0.65% for Institutional, 0.92% for Service, 0.79% for Investor A, 1.30% for Investor B, 1.54% for Investor C and 1.35% for Investor C1), multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period shown).

6

For each class of the Fund, expenses are equal to the annualized net expense ratio for the class (0.46% for BlackRock, 0.58% for Institutional, 0.85% for Service, 0.72% for Investor A, 1.23 % for Investor B, 1.47% for Investor C and 1.28% for Investor C1), multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period shown).

7

Hypothetical 5% annual return before expenses is calculated by pro rating the number of days in the most recent fiscal half year divided by 365.

See “Disclosure of Expenses” on page 13 for further information on how expenses were calculated.

SEMI-ANNUAL REPORT

DECEMBER 31, 2013

7

Fund Summary  as of December 31, 2013	BlackRock Short-Term Municipal Fund

Investment Objective

BlackRock Short-Term Municipal Fund’s (the “Fund”) investment objective is to provide shareholders with as high a level of income exempt from federal income taxes as is consistent with the investment policies of the Fund.

Portfolio Management Commentary

How did the Fund perform?

•

For the six-month period ended December 31, 2013, the Fund’s BlackRock, Institutional, Investor A and Investor A1 Shares outperformed its primary benchmark, the S&P ® Municipal Bond Index, while Investor C Shares performed in line with the primary benchmark. The Fund underperformed its secondary benchmark, the S&P ® Limited Maturity Municipal Bond Index. The following discussion of relative performance pertains to the Fund’s secondary benchmark, the S&P ® Limited Maturity Municipal Bond Index.

What factors influenced performance?

•

The Fund’s underperformance relative to the benchmark index was attributable to yield curve positioning during the period.

•

Conversely, security selection in the state and tax-backed sector contributed positively to performance, especially due to the Fund’s high concentration in California state general obligation bonds. Duration management (sensitivity to interest rate movements) also had a positive impact on results for the period. Exposure to transportation added to returns, as did security selection within the sector. Allocations to the corporate and housing sectors were additional sources of positive returns.

Describe recent portfolio activity.

•

In the earlier part of the six-month period, the Fund maintained a cautious stance amid elevated volatility and constrained liquidity in the municipal market as municipal yields followed U.S. Treasury yields higher in the third quarter due to expectations of less accommodative monetary policy from the U.S. Federal Reserve. However, at the onset of the fourth quarter, interest rates appeared to be more stable and the Fund began to invest more heavily in the market, maximizing duration and drawing down cash reserves.

Describe portfolio positioning at period end.

•

As of period end, the Fund held a minimal level of cash reserves and its portfolio of holdings had a shorter average duration relative to the S&P ® Limited Maturity Municipal Bond Index.

    

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.

Overview of the Fund’s Long-Term Investments

Sector Allocation
State					35	%
County/City/Special District/School District					23
Transportation					15
Utilities					13
Corporate					6
Education					3
Health					3
Housing					1
Tobacco					1

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

Credit Quality Allocation 1
AAA/Aaa					20	%
AA/Aa					49
A					28
BBB/Baa					2
Not Rated 2					1

1

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

2

The investment advisor has deemed certain of these securities as investment grade quality. As of December 31, 2013, the market value of these securities was $8,840,575, representing 1% of the Fund’s long-term investments.

Call/Maturity Schedule 3
Calendar Year Ended December 31,
2014					26	%
2015					37
2016					23
2017					9
2018					—

3

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

8

SEMI-ANNUAL REPORT

DECEMBER 31, 2013

	BlackRock Short-Term Municipal Fund

Total Return Based on a $10,000 Investment

  

1

Assuming maximum sales charge, if any, transaction costs and other operating expenses, including advisory fees. Institutional Shares do not have a sales charge.

2

The Fund invests primarily in investment grade municipal bonds or municipal notes, including variable rate demand obligations. The Fund will maintain a dollar-weighted maturity of no more than 2 years.

3

The S&P ® Municipal Bond Index is composed of bonds held by managed municipal bond fund customers of Standard & Poor’s Securities Pricing, Inc. that are priced daily. Bonds in the S&P ® Municipal Bond Index must have an outstanding par value of at least $2 million and a remaining maturity of not less than 1 month.

4

The S&P ® Limited Maturity Municipal Bond Index includes all bonds in the S&P ® Municipal Bond Index with a remaining maturity of less than 4 years.

Performance Summary for the Period Ended December 31, 2013

																Average Annual Total Returns 5
																1 Year								5 Years								10 Years
				Standardized 30-Day Yields				Unsubsidized 30-Day Yields				6-Month Total Returns				w/o sales charge				w/sales charge				w/o sales charge				w/sales charge				w/o sales charge				w/sales charge
BlackRock					0.11	%			0.11	%			0.66	%			0.48	%			N/A				1.42	%			N/A				1.98	%			N/A
Institutional					0.10				0.00				0.55				0.58				N/A				1.45				N/A				1.99				N/A
Investor A					(0.16	)			(0.16	)			0.42				0.21				(2.80	)%			1.18				0.56	%			1.73				1.42	%
Investor A1					(0.02	)			(0.04	)			0.59				0.46				(0.54	)			1.33				1.13				1.88				1.78
Investor C					(0.94	)			(0.94	)			0.00				(0.59	)			(1.59	)			0.39				0.39				0.95				0.95
S&P ® Municipal Bond Index					—				—				0.00				(2.55	)			N/A				6.34				N/A				4.33				N/A
S&P ® Limited Maturity Municipal Bond Index					—				—				0.83				1.02				N/A				2.18				N/A				2.68				N/A

5

Assuming maximum sales charges, if any. Average annual total returns with and without sales charges reflect reductions for distribution and service fees. See “About Fund Performance” on page 12 for a detailed description of share classes, including any related sales charges and fees.

N/A — Not applicable as share class and index do not have a sales charge.

Past performance is not indicative of future results.

Expense Example

				Actual												Hypothetical 7
				Beginning Account Value July 1, 2013				Ending Account Value December 31, 2013				Expenses Paid During the Period 6				Beginning Account Value July 1, 2013				Ending Account Value December 31, 2013				Expenses Paid During the Period 6				Annualized Expense Ratio
Blackrock				$	1,000.00			$	1,006.60			$	1.97			$	1,000.00			$	1,023.24			$	1.99				0.39	%
Institutional				$	1,000.00			$	1,005.53			$	2.02			$	1,000.00			$	1,023.19			$	2.04				0.40	%
Investor A				$	1,000.00			$	1,004.20			$	3.38			$	1,000.00			$	1,021.83			$	3.41				0.67	%
Investor A1				$	1,000.00			$	1,005.90			$	2.63			$	1,000.00			$	1,022.58			$	2.65				0.52	%
Investor C				$	1,000.00			$	1,001.00			$	7.36			$	1,000.00			$	1,017.85			$	7.43				1.46	%

6

For each class of the Fund, expenses are equal to the annualized net expense ratio for the class, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period shown).

7

Hypothetical 5% return before expenses is calculated by pro rating the number of days in the most recent fiscal half year divided by 365.

See “Disclosure of Expenses” on page 13 for further information on how expenses were calculated.

SEMI-ANNUAL REPORT

DECEMBER 31, 2013

9

Fund Summary  as of December 31, 2013	BlackRock New York Municipal Bond Fund

Investment Objective

BlackRock New York Municipal Bond Fund’s (the “Fund”) investment objective is to provide shareholders with income exempt from federal income tax and New York State and New York City personal income taxes.

Portfolio Management Commentary

How did the Fund perform?

•

For the six-month period ended December 31, 2013, the Fund underperformed its primary benchmark, the S&P ® Municipal Bond Index, and its secondary benchmark, the S&P ® New York Municipal Bond Index. The following discussion of relative performance pertains to the Fund’s secondary benchmark, the S&P ® New York Municipal Bond Index.

What factors influenced performance?

•

The Fund’s longer duration bias (higher sensitivity to interest rate movements) detracted from performance relative to the benchmark index as longer duration positions were the worst performers in the rising interest rate environment. Also having a negative impact on returns was the Fund’s exposure to the health care sector where credit spreads generally widened during the period.

•

The Fund’s exposure to Puerto Rico debt also detracted from results as credit spreads on Puerto Rico bonds widened materially during the period due to investors’ lack of confidence and a weak local economy. However, it is important to note that the Fund held only a small exposure to non-escrowed Puerto Rico securities and these positions were eliminated during the period. Therefore, the impact of the deterioration in Puerto Rico bond prices on Fund performance was minimal.

•

The Fund benefited mostly from the accrual of income generated from coupon payments on its portfolio holdings. The Fund was more heavily weighted in longer-dated bonds, which helped generate additional income as the steepness of the yield curve compensated investors who extended further out on the curve with higher yields. Exposure to higher-yielding holdings, including lower-quality credits and out-of-favor structures, allowed the Fund to capture additional yield. The Fund’s limited use of tender option bonds also contributed to the Fund’s performance. The Fund’s greater exposure to education bonds benefited performance as the sector was the second-best performer for the period (after pre-refunded/escrowed-to-maturity bonds). In addition, the Fund utilized 10-year US Treasury futures contracts to hedge against interest rate volatility. In the aggregate, these positions were modest contributors to performance for the period.

Describe recent portfolio activity.

•

During the six-month period, portfolio activity centered around two themes: lessening volatility and relative-value trading. In an overall environment of heightened volatility and investor fears of higher interest rates, the Fund capitalized on opportunities presented by periods of stronger demand to reduce the portfolio’s exposure to long-duration and out-of-favor coupon structures. The Fund used the increased New Issue supply of New York municipal paper to improve portfolio diversification and increase credit quality, as well as to book bonds at higher yields. Confounding these efforts, however, was the industry-wide trend of municipal bond mutual fund outflows, which forced the Fund to retain a higher-than-average cash balance during the period. In addition to selling long-duration bonds, the Fund accommodated redemptions through sales of lower-book yielding bonds, which also enabled to the Fund to further capitalize on the higher yields offered in the New Issue market. Additionally, over the course of the period, the Fund sold the last of its Puerto Rico holdings.

Describe portfolio positioning at period end.

•

The Fund ended the period with a neutral-to-long duration bias as compared to the S&P ® New York Municipal Bond Index and higher-than-usual cash reserves.

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.

Overview of the Fund’s Long-Term Investments

Sector Allocation
County/City/Special District/School District					24	%
Health					17
Education					16
Transportation					14
Utilities					11
Corporate					7
State					7
Housing					4

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

Credit Quality Allocation 1
AAA/Aaa					8	%
AA/Aa					39
A					36
BBB/Baa					6
BB/Ba					4
Not Rated 2					7

1

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

2

The investment advisor has deemed certain of these securities as investment grade quality. As of December 31, 2013, the market value of these securities was $3,399,780, representing less than 1% of the Fund’s long-term investments.

Call/Maturity Schedule 3
Calendar Year Ended December 31,
2014					7	%
2015					4
2016					4
2017					10
2018					3

3

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

10

SEMI-ANNUAL REPORT

DECEMBER 31, 2013

	BlackRock New York Municipal Bond Fund

Total Return Based on a $10,000 Investment

  

1

Assuming maximum sales charge, if any, transaction costs and other operating expenses, including advisory fees. Institutional Shares do not have a sales charge.

2

The Fund invests primarily in a portfolio of investment grade New York municipal bonds. The Fund expects to maintain an average weighted maturity of greater than ten years.

3

The S&P ® Municipal Bond Index is composed of bonds held by managed municipal bond fund customers of Standard & Poor’s Securities Pricing, Inc. that are priced daily. Bonds in the S&P ® Municipal Bond Index must have an outstanding par value of at least $2 million and a remaining maturity of not less than 1 month.

4

The S&P ® New York Municipal Bond Index includes all New York bonds in the S&P ® Municipal Bond Index.

Performance Summary for the Period Ended December 31, 2013

																Average Annual Total Returns 5
																1 Year								5 Years								10 Years
				Standardized 30-Day Yields				Unsubsidized 30-Day Yields				6-Month Total Returns				w/o sales charge				w/sales charge				w/o sales charge				w/sales charge				w/o sales charge				w/sales charge
Institutional					3.95	%			3.95	%			(0.96	)%			(5.89	)%			N/A				6.86	%			N/A				3.73	%			N/A
Investor A					3.55				3.55				(1.19	)			(6.12	)			(10.11	)%			6.56				5.64	%			3.45				3.00	%
Investor A1					3.71				3.71				(1.01	)			(5.98	)			(9.74	)			6.73				5.86				3.63				3.21
Investor C					2.95				2.95				(1.46	)			(6.83	)			(7.73	)			5.78				5.78				2.69				2.69
Investor C1					3.38				3.38				(1.26	)			(6.44	)			(7.34	)			6.21				6.21				3.11				3.11
S&P ® Municipal Bond Index					—				—				0.00				(2.55	)			N/A				6.34				N/A				4.33				N/A
S&P ® New York Municipal Bond Index					—				—				0.64				(2.04	)			N/A				6.02				N/A				4.32				N/A

5

Assuming maximum sales charges, if any. Average annual total returns with and without sales charges reflect reductions for distribution and service fees. See “About Fund Performance” on page 12 for a detailed description of share classes, including any related sales charges and fees.

N/A — Not applicable as share class and index do not have a sales charge.

Past performance is not indicative of future results.

Expense Example

				Actual																Hypothetical 8
												Expenses Paid During the Period												Including Interest Expense and Fees								Excluding Interest Expense and Fees
				Beginning Account Value July 1, 2013				Ending Account Value December 31, 2013				Including Interest Expense and Fees 6				Excluding Interest Expense and Fees 7				Beginning Account Value July 1, 2013				Ending Account Value December 31, 2013				Expenses Paid During the Period 6				Ending Account Value December 31, 2013				Expenses Paid During the Period 7
Institutional				$	1,000.00			$	990.40			$	4.01			$	3.71			$	1,000.00			$	1,021.17			$	4.08			$	1,021.48			$	3.77
Investor A				$	1,000.00			$	988.10			$	5.26			$	5.01			$	1,000.00			$	1,019.91			$	5.35			$	1,020.16			$	5.09
Investor A1				$	1,000.00			$	989.90			$	4.51			$	4.21			$	1,000.00			$	1,020.67			$	4.58			$	1,020.97			$	4.28
Investor C				$	1,000.00			$	985.40			$	9.01			$	8.76			$	1,000.00			$	1,016.13			$	9.15			$	1,016.38			$	8.89
Investor C1				$	1,000.00			$	987.40			$	6.91			$	6.66			$	1,000.00			$	1,018.25			$	7.02			$	1,018.50			$	6.77

6

For each class of the Fund, expenses are equal to the annualized net expense ratio for the class (0.80% for Institutional, 1.05% for Investor A, 0.90% for Investor A1, 1.80% for Investor C and 1.38% for Investor C1), multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period shown).

7

For each class of the Fund, expenses are equal to the annualized net expense ratio for the class (0.74% for Institutional, 1.00% for Investor A, 0.84% for Investor A1, 1.75% for Investor C and 1.33% for Investor C1), multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period shown).

8

Hypothetical 5% annual return before expenses is calculated by pro rating the number of days in the most recent fiscal half year divided by 365.

See “Disclosure of Expenses” on page 13 for further information on how expenses were calculated.

SEMI-ANNUAL REPORT

DECEMBER 31, 2013

11

About Fund Performance

•

BlackRock and Institutional Shares (BlackRock Shares are available only in BlackRock Short-Term Municipal Fund and BlackRock National Municipal Fund) are not subject to any sales charge. These shares bear no ongoing distribution or service fees and are available only to certain eligible investors. Prior to October 2, 2006 for BlackRock Short-Term Municipal Fund, and prior to July 18, 2011 for BlackRock National Municipal Fund, BlackRock Share performance results are those of the Institutional Shares restated to reflect BlackRock Share fees.

•

Service Shares (available only in BlackRock National Municipal Fund) are not subject to any sales charge. These shares are subject to a service fee of 0.25% per year (but no distribution fee) and are available only to certain eligible investors. Prior to July 18, 2011, Service Share performance results are those of the Institutional Shares restated to reflect Service Share fees.

•

Investor A Shares are subject to a maximum initial sales charge (front-end load) of 4.25% for all Funds except BlackRock Short-Term Municipal Fund, which incurs a 3.00% maximum initial sales charge, and all Funds incur a service fee of 0.25% per year (but no distribution fee). Certain redemptions of these shares may be subject to a contingent deferred sales charge (“CDSC”) where no initial sales charge was paid at the time of purchase. Prior to October 2, 2006 for BlackRock Short-Term Municipal Fund and BlackRock New York Municipal Bond Fund, Investor A Share performance results are those of the Institutional Shares (which have no distribution or service fees) restated to reflect Investor A Share fees.

•

Investor A1 Shares (available only in BlackRock Short-Term Municipal Fund and BlackRock New York Municipal Bond Fund) incur a maximum initial sales charge (front-end load) of 1.00% for BlackRock Short-Term Municipal Fund and 4.00% for BlackRock New York Municipal Bond Fund; and a service fee of 0.10% per year (but no distribution fee).

•

Investor B Shares (available only in BlackRock National Municipal Fund) are subject to a maximum CDSC of 4.00%, declining to 0% after six years. In addition, these shares are subject to a distribution fee of 0.50% per year and a service fee of 0.25% per year.

These shares automatically convert to Investor A Shares after approximately 10 years. (There is no initial sales charge for automatic sales conversions.) On June 10, 2013, all issued and outstanding Investor B Shares of BlackRock Short-Term Municipal Fund and BlackRock New York Municipal Bond Fund were converted into Investor A1 Shares with the same relative aggregate net asset value.

•

Investor C Shares are subject to a 1.00% CDSC if redeemed within one year of purchase. In addition, these shares are subject to a distribution fee of 0.75% per year and a service fee of 0.25% per year. Prior to October 2, 2006 (for all Funds except BlackRock High Yield Municipal Fund), Investor C Share performance results are those of the respective Fund’s Institutional Shares (which have no distribution or service fees) restated to reflect Investor C Share fees.

•

Investor C1 Shares (available only in BlackRock National Municipal Fund and BlackRock New York Municipal Bond Fund) are subject to a 1.00% CDSC if redeemed within one year of purchase.

•

In addition, these shares are subject to distribution and service fees per year as follows:

				Distribution Fee				Service Fee
BlackRock National Municipal Fund					0.55	%			0.25	%
BlackRock New York Municipal Bond Fund					0.35	%			0.25	%

Investor A1, Investor B and Investor C1 Shares of their respective Funds are only available through dividend reinvestments by existing shareholders and for purchase by certain employer-sponsored retirement plans. On June 10, 2013, all outstanding Investor B1 Shares of BlackRock National Municipal Fund were converted into Investor A Shares.

Performance information reflects past performance and does not guarantee future results. Current performance may be lower or higher than the performance data quoted. Refer to www.blackrock.com/funds to obtain performance data current to the most recent month end. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Figures shown in each of the performance tables on the previous pages assume reinvestment of all dividends and capital gain distributions, if any, at net asset value (“NAV”) on the payable date. Investment return and principal value of shares will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Dividends paid to each class of shares will vary because of the different levels of service, distribution and transfer agency fees applicable to each class, which are deducted from the income available to be paid to shareholders. The Funds’ investment advisor reimbursed a portion of each Fund’s expenses. Without such reimbursement, a Fund’s performance would have been lower. The standardized 30-day yield includes the effects of any waivers and/or reimbursements. The unsubsidized 30-day yield excludes the effects of any waivers and/or reimbursements.

12

SEMI-ANNUAL REPORT

DECEMBER 31, 2013

Disclosure of Expenses

Shareholders of these Funds may incur the following charges: (a) transactional expenses such as sales charges; and (b) operating expenses, including investment advisory fees, service and distribution fees including 12b-1 fees, and other Fund expenses. The expense examples on the previous pages (which are based on a hypothetical investment of $1,000 invested on July 1, 2013 and held through December 31, 2013) are intended to assist shareholders both in calculating expenses based on an investment in each Fund and in comparing these expenses with similar costs of investing in other mutual funds.

The expense examples provide information about actual account values and actual expenses. In order to estimate the expenses a shareholder paid during the period covered by this report, shareholders can divide their account value by $1,000 and then multiply the result by the number corresponding to their Fund and share class under the headings entitled “Expenses Paid During the Period.”

The expense examples also provide information about hypothetical account values and hypothetical expenses based on a Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. In order to assist shareholders in comparing the ongoing expenses of investing in these Funds and other funds, compare the 5% hypothetical example with the 5% hypothetical examples that appear in other funds’ shareholder reports.

The expenses shown in the expense examples are intended to highlight shareholders’ ongoing costs only and do not reflect any transactional expenses, such as sales charges, if any. Therefore, the hypothetical examples are useful in comparing ongoing expenses only, and will not help shareholders determine the relative total expenses of owning different funds. If these transactional expenses were included, shareholder expenses would have been higher.

SEMI-ANNUAL REPORT

DECEMBER 31, 2013

13

The Benefits and Risks of Leveraging

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

The Funds may leverage their assets through the use of tender option bond trusts (“TOBs”), as described in Note 3 of the Notes to Financial Statements. TOB investments generally will provide the Funds with economic benefits in periods of declining short-term interest rates, but expose the Funds to risks during periods of rising short-term interest rates. Additionally, fluctuations in the market value of municipal bonds deposited into the TOB trust may adversely affect each Fund’s NAV per share.

In general, the concept of leveraging is based on the premise that the financing cost of assets to be obtained from leverage, which will be based on short-term interest rates, will normally be lower than the income earned by each Fund on its longer-term portfolio investments. To the extent that the total assets of each Fund (including the assets obtained from leverage) are invested in higher-yielding portfolio investments, each Fund’s shareholders will benefit from the incremental net income.

Furthermore, the value of the Funds’ portfolio investments generally varies inversely with the direction of long-term interest rates, although other factors can influence the value of portfolio investments. Changes in interest rates can influence the Funds’ NAVs positively or negatively in addition to the impact on the Fund performance from leverage.

The use of leverage may enhance opportunities for increased income to the Funds, but as described above, it also creates risks as short- or long-term interest rates fluctuate. Leverage also will generally cause greater changes in the Funds’ NAVs and dividend rates than comparable portfolios without leverage. If the income derived from securities purchased with assets received from leverage exceeds the cost of leverage, the Funds’ net income will be greater than if leverage had not been used. Conversely, if the income from the securities purchased is not sufficient to cover the cost of leverage, each 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. Each Fund may be required to sell portfolio securities at inopportune times or at distressed values in order to comply with regulatory requirements applicable to the use of leverage or as required by the terms of leverage instruments, which may cause a Fund to incur losses. The use of leverage may limit each Fund’s ability to invest in certain types of securities or use certain types of hedging strategies. Each Fund will incur expenses in connection with the use of leverage, all of which are borne by shareholders and may reduce income.

  

Derivative Financial Instruments

The Funds may invest in various derivative financial instruments, including financial futures contracts and options, as specified in Note 4 of the Notes to Financial Statements, which may constitute forms of economic leverage. Such derivative financial instruments are used to obtain exposure to a security, index and/or market without owning or taking physical custody of securities or to hedge market and/or interest rate risks. Derivative financial instruments involve risks, including the imperfect correlation between the value of a derivative financial instrument and the underlying asset, possible default of the counterparty to the transaction or illiquidity of the derivative financial instrument. The Funds’ ability to use a derivative financial instrument successfully depends on the investment advisor’s ability to predict pertinent market movements accurately, which cannot be assured. The use of derivative financial instruments may result in losses greater than if they had not been used, may require a Fund to sell or purchase portfolio investments at inopportune times or for distressed values, may limit the amount of appreciation a Fund can realize on an investment, may result in lower dividends paid to shareholders or may cause a Fund to hold an investment that it might otherwise sell. The Funds’ investments in these instruments are discussed in detail in the Notes to Financial Statements.

14

SEMI-ANNUAL REPORT

DECEMBER 31, 2013

Schedule of Investments  December 31, 2013 (Unaudited)	BlackRock High Yield Municipal Fund (Percentages shown are based on Net Assets)

Municipal Bonds				Par (000)				Value
Alabama — 3.1%
Alabama State Docks Department, Refunding RB, 6.00%, 10/01/40				$	710			$	782,633
City of Phenix Alabama IDB, Refunding RB, Meadwestvaco Coated Board Project, Series A, AMT, 4.13%, 5/15/35					1,750				1,319,657
County of Jefferson Alabama Sewer Revenue, Refunding RB, Senior Lien:
Convertible CAB, Series C (AGM), 6.50%, 10/01/38 (a)					385				198,394
Convertible CAB, Series C (AGM), 6.60%, 10/01/42 (a)					335				171,316
Series A (AGM), 5.00%, 10/01/44					530				490,123
Series A (AGM), 5.25%, 10/01/48					1,010				944,360
Series D, 6.00%, 10/01/42					2,355				2,172,299
County of Jefferson Alabama, Limited Obligation Schools, RB, Series A, 4.75%, 1/01/25					2,180				2,004,750
									8,083,532
Alaska — 1.2%
Northern Tobacco Securitization Corp., Refunding RB, Tobacco Settlement, Asset-Backed, Series A:
4.63%, 6/01/23					1,120				1,034,297
5.00%, 6/01/32					1,500				1,087,785
5.00%, 6/01/46					1,620				1,047,800
									3,169,882
Arizona — 1.6%
City of Phoenix Arizona IDA, ERB:
Eagle College Prep Project, Series A, 5.00%, 7/01/43					1,445				1,221,776
Great Hearts Academies — Veritas Project, 6.40%, 7/01/47					415				392,042
City of Phoenix Arizona IDA, Refunding RB, America West Airlines, Inc. Project, AMT, 6.30%, 4/01/23					1,000				999,760
County of Maricopa Arizona IDA, RB, Arizona Charter Schools Project, Series A, 6.75%, 7/01/29					70				58,191
Florence Town Inc., IDA, ERB, Legacy Traditional School Project, Queen Creek and Casa Grande Campuses, 6.00%, 7/01/43					1,375				1,212,104
University Medical Center Corp. Arizona, RB, 6.25%, 7/01/29					180				192,487
									4,076,360

Municipal Bonds				Par (000)				Value
Arkansas — 0.3%
County of Benton Arkansas Public Facilities Board, RB, BCCSO Project, Series A, 6.00%, 6/01/40				$	750			$	777,375
California — 6.3%
California Health Facilities Financing Authority, RB:
St. Joseph Health System, Series A, 5.75%, 7/01/39					1,000				1,101,280
Sutter Health, Series B, 6.00%, 8/15/42					1,000				1,129,730
California Health Facilities Financing Authority, Refunding RB, Catholic Healthcare West, Series A, 6.00%, 7/01/39					265				284,311
California HFA, RB, S/F, Home Mortgage, Series I, AMT:
4.60%, 8/01/21					190				189,994
4.80%, 8/01/36					1,500				1,366,890
California Pollution Control Financing Authority, RB, Poseidon Resources (Channel Side) LP Desalination Project, AMT, 5.00%, 7/01/37 (b)					775				661,571
California School Finance Authority, RB, Value Schools:
6.65%, 7/01/33					295				292,805
6.90%, 7/01/43					650				642,012
California Statewide Communities Development Authority, RB, Series A:
American Baptist Homes of the West, 5.00%, 10/01/43					1,000				880,750
Sutter Health, 6.00%, 8/15/42					400				447,352
California Statewide Communities Development Authority, Refunding RB, American Baptist Homes of the West, 6.25%, 10/01/39					2,575				2,633,221
City of Chula Vista California, Refunding RB, San Diego Gas & Electric, Series A, 5.88%, 2/15/34					500				553,160
City of San Jose California Hotel Tax, RB, Convention Center Expansion & Renovation Project:
6.50%, 5/01/36					310				349,782
6.50%, 5/01/42					760				852,978
County of Riverside California Transportation Commission, RB, Senior Lien, Series A, 5.75%, 6/01/48					2,115				2,089,239
County of San Marcos California Unified School District, GO, CAB, Election of 2010, Series B, 0.00%, 8/01/51 (c)					4,425				508,388

    

Portfolio Abbreviations

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

EDA EDC ERB ERS FGIC

Economic Development Authority Economic Development Corp. Education Revenue Bonds Extendible Reset Securities Financial Guaranty Insurance Co.

ISD LRB M/F MRB NPFGC

Independent School District Lease Revenue Bonds Multi-Family Mortgage Revenue Bonds National Public Finance Guarantee Corp.

ACA AGC AGM AMBAC AMT ARB BARB BHAC CAB CIFG COP

American Capital Access Holding Ltd. Assured Guarantee Corp. Assured Guaranty Municipal Corp. American Municipal Bond Assurance Corp. Alternative Minimum Tax (subject to) Airport Revenue Bonds Building Aid Revenue Bonds Berkshire Hathaway Assurance Corp. Capital Appreciation Bonds CDC IXIS Financial Guaranty Certificates of Participation

FHA GAN GARB GO GTD HDA HFA HRB IDA IDB IDRB

Federal Housing Administration Grant Anticipation Notes General Airport Revenue Bonds General Obligation Bonds Guaranteed Housing Development Authority Housing Finance Agency Housing Revenue Bonds Industrial Development Authority Industrial Development Board Industrial Development Revenue Bonds

PILOT PSF PSF-GTD Q-SBLF RB S&P SBPA SIFMA   SONYMA Syncora  VRDN

Payment in Lieu of Taxes Public School Fund Public School Fund Guaranteed Qualified School Bond Loan Fund Revenue Bonds Standard and Poor’s Stand-by Bond Purchase Agreements Securities Industry and Financial Markets Association State of New York Mortgage Agency Syncora Guarantee Variable Rate Demand Notes

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

DECEMBER 31, 2013

15

Schedule of Investments (continued)	BlackRock High Yield Municipal Fund (Percentages shown are based on Net Assets)

Municipal Bonds				Par (000)				Value
California (concluded)
Lammersville School District Community Facilities District, Special Tax Bonds, District No. 2002, Mountain House, 5.13%, 9/01/35				$	325			$	307,687
Stockton Public Financing Authority, RB, Delta Water Supply Project, Series A, 6.25%, 10/01/40					240				256,126
Successor Agency to the San Francisco City & County Redevelopment Agency, Special Tax Bonds, Community Facilities District No. 6 (Mission Bay South Public Improvements), Series C, CAB, 0.00%, 8/01/43 (c)					3,000				414,930
Temecula Public Financing Authority, Refunding, Special Tax Bonds, Harveston, Sub-Series B, 5.10%, 9/01/36					165				142,867
Tobacco Securitization Authority of Southern California, Refunding RB, Tobacco Settlement Revenue, Asset-Backed, Senior Series A-1, 4.75%, 6/01/25					1,385				1,297,842
									16,402,915
Colorado — 2.2%
Colorado Educational & Cultural Facilities Authority, RB, Littleton Preparatory Charter School Project:
5.00%, 12/01/33					450				385,479
5.00%, 12/01/42					545				436,594
Denver Convention Center Hotel Authority, Refunding RB, Senior (Syncora), 5.00%, 12/01/30					1,175				1,175,223
Plaza Metropolitan District No. 1 Colorado, Refunding, Tax Allocation Bonds, Public Improvement Fee, Tax Increment, 5.00%, 12/01/40					425				387,434
Regional Transportation District, RB, Denver Transit Partners Eagle P3 Project:
6.00%, 1/15/34					1,500				1,541,505
6.00%, 1/15/41					1,000				1,016,700
Tallyn’s Reach Metropolitan District No. 3, GO, Refunding, Limited Tax, 5.13%, 11/01/38					1,035				906,681
									5,849,616
Connecticut — 0.2%
Mohegan Tribe of Indians of Connecticut, Refunding RB, Public Improvement, Priority Distribution, 6.25%, 1/01/31					605				604,927
Delaware — 0.4%
State of Delaware EDA, RB, Exempt Facilities, Indian River Power, 5.38%, 10/01/45					975				918,996
District of Columbia — 2.6%
District of Columbia, RB, Methodist Home District of Columbia, Series A:
7.38%, 1/01/30					310				299,993
7.50%, 1/01/39					500				476,250
District of Columbia Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed:
6.50%, 5/15/33					2,510				2,592,554
6.75%, 5/15/40					385				383,056
Metropolitan Washington Airports Authority, Refunding RB:
1st Senior Lien, Series A, 5.00%, 10/01/39					185				185,903
1st Senior Lien, Series A, 5.25%, 10/01/44					1,610				1,621,769
CAB, 2nd Senior Lien, Series B (AGC), 0.00%, 10/01/30 (c)					3,005				1,189,499
									6,749,024
Municipal Bonds				Par (000)				Value
Florida — 8.5%
Boggy Creek Improvement District, Refunding RB, Special Assessment Bonds, 5.13%, 5/01/43				$	1,500			$	1,256,745
County of Collier Florida IDA, Refunding RB, Series A, 8.13%, 5/15/44 (b)(d)					1,490				1,469,125
County of Hillsborough Florida IDA, RB:
National Gypsum Co., Series B, AMT, 7.13%, 4/01/30					1,500				1,499,955
Tampa General Hospital Project, 5.25%, 10/01/41					895				897,649
County of Martin Florida IDA, Refunding RB, Indiantown Cogeneration, L.P. Project, AMT, 4.20%, 12/15/25					1,750				1,481,235
County of Palm Beach Health Facilities Authority, RB, Acts Retirement Life Community, 5.50%, 11/15/33					1,500				1,478,505
County of Sarasota Health Facilities Authority, Refunding RB, Village On The Isle Project, 5.50%, 1/01/27					210				213,992
Greater Orlando Aviation Authority Florida, Refunding RB, Special Purpose, JetBlue Airways Corp. Project, AMT, 5.00%, 11/15/36					2,000				1,624,800
Greeneway Improvement District, RB, Special Assessment Bonds, 5.13%, 5/01/43					1,500				1,256,745
Highland Meadows Community Development District, Special Assessment Bonds, Series A, 5.50%, 5/01/36 (e)(f)					490				190,007
Jacksonville Economic Development Commission, RB, Gerdau Ameristeel US, Inc., AMT, 5.30%, 5/01/37					3,300				2,943,369
Lakewood Ranch Stewardship District, Refunding, Special Assessment Bonds, Lakewood Center & New Sector Projects, 8.00%, 5/01/40					515				587,445
Mid-Bay Bridge Authority, RB, Springing Lien, Series A, 7.25%, 10/01/40					1,450				1,581,457
Santa Rosa Bay Bridge Authority, RB, 6.25%, 7/01/28 (e)(f)					466				191,166
Tolomato Community Development District, Refunding, CAB Special Assessment Bonds:
Series A-2, 6.61%, 5/01/39 (a)					40				29,362
Series A-3, 6.61%, 5/01/40 (a)					90				53,836
Series A-4, 6.61%, 5/01/40 (a)					50				22,143
Series A-1, 6.65%, 5/01/40					140				135,859
Tolomato Community Development District, Convertible (e)(f):
Series 1, 6.65%, 5/01/40					5				4,826
Series 2, 6.65%, 5/01/40					330				181,586
Series 3, 6.65%, 5/01/40					105				1
Viera East Community Development District, Refunding, Special Assessment Bonds, 5.00%, 5/01/26					640				591,046
Village Community Development District No. 10, Special Assessment Bonds, 5.13%, 5/01/43					1,855				1,669,704
Village Community Development District No. 9, Special Assessment Bonds:
7.00%, 5/01/41					1,605				1,759,674
5.50%, 5/01/42					570				563,416
Watergrass Community Development District, Special Assessment Bonds, Series A, 5.38%, 5/01/39					650				417,619
									22,101,267
Georgia — 0.5%
County of Clayton Georgia, Tax Allocation Bonds, Ellenwood Project, 7.50%, 7/01/33					240				240,408
County of Clayton Georgia Development Authority, Refunding RB, Delta Air Lines, Inc. Project, Series A, 8.75%, 6/01/29					635				735,971

See Notes to Financial Statements.

16

SEMI-ANNUAL REPORT

DECEMBER 31, 2013

Schedule of Investments (continued)	BlackRock High Yield Municipal Fund (Percentages shown are based on Net Assets)

Municipal Bonds				Par (000)				Value
Georgia (concluded)
County of Gainesville & Hall Georgia Development Authority, Refunding RB, Acts Retirement Life Community, Series A-2, 6.63%, 11/15/39				$	220			$	230,239
									1,206,618
Guam — 1.9%
Guam Government Waterworks Authority, RB, Water & Wastewater System:
5.25%, 7/01/33					910				884,584
5.50%, 7/01/43					1,520				1,463,198
Guam Government Waterworks Authority, Refunding RB, Water & Wastewater System, 6.00%, 7/01/25					735				742,673
Territory of Guam, GO, Series A:
6.00%, 11/15/19					100				104,898
6.75%, 11/15/29					1,650				1,706,628
7.00%, 11/15/39					160				166,643
									5,068,624
Idaho — 0.1%
County of Power Idaho Industrial Development Corp., RB, FMC Corp. Project, AMT, 6.45%, 8/01/32					265				265,207
Illinois — 4.6%
City of Chicago Illinois Waterworks Revenue, Refunding RB, 2nd Lien Project, 5.00%, 11/01/42					3,040				2,927,520
Illinois Finance Authority, RB, Lake Forest College, Series A, 6.00%, 10/01/48					1,700				1,689,970
Illinois Finance Authority, Refunding RB:
Central Dupage Health, Series B, 5.50%, 11/01/39					1,400				1,459,220
Friendship Village of Schaumburg, 7.13%, 2/15/39					1,000				998,430
Lutheran Home & Services Obligated Group, 5.63%, 5/15/42					1,605				1,411,822
Roosevelt University Project, 6.50%, 4/01/44					830				844,592
Swedish Covenant, Series A, 6.00%, 8/15/38					1,000				1,025,620
Metropolitan Pier & Exposition Authority, Refunding RB, CAB, McCormick Place Expansion Project, Series B (AGM), 0.00%, 6/15/44 (c)					3,455				572,528
Quad Cities Regional EDA, Refunding RB, Augustana College, 4.75%, 10/01/32					675				631,928
Railsplitter Tobacco Settlement Authority, RB, 6.00%, 6/01/28					390				423,965
									11,985,595
Indiana — 2.7%
City of Carmel Indiana, RB, Barrington Carmel Project, Series A:
7.13%, 11/15/42					1,500				1,466,805
7.13%, 11/15/47					1,500				1,456,065
City of Valparaiso Indiana, RB, Exempt Facilities, Pratt Paper LLC Project, AMT:
6.75%, 1/01/34					525				525,803
7.00%, 1/01/44					1,270				1,270,953
Indiana Finance Authority, RB, Ohio River Bridges East End Crossing Project Series A AMT:
5.00%, 7/01/44					370				328,371
Private Activity Bond, 5.00%, 7/01/48					1,230				1,077,369
Indiana Finance Authority, Refunding RB, Marquette Project, 5.00%, 3/01/39					725				643,409
Indiana Health Facility Financing Authority, Refunding RB, Methodist Hospital, Inc., 5.38%, 9/15/22					185				185,152
									6,953,927
Municipal Bonds				Par (000)				Value
Iowa — 3.0%
Iowa Finance Authority, Refunding RB:
Development, Care Initiatives Project, Series A, 5.00%, 7/01/19				$	500			$	501,395
Midwestern Disaster Area, Iowa Fertilizer Co. Project, 5.50%, 12/01/22					3,295				3,080,792
Sunrise Retirement Community Project, 5.50%, 9/01/37					890				741,085
Sunrise Retirement Community Project, 5.75%, 9/01/43					1,385				1,151,794
Iowa Tobacco Settlement Authority, Refunding RB, Series C, 5.38%, 6/01/38					3,075				2,299,792
									7,774,858
Kentucky — 0.1%
Kentucky Economic Development Finance Authority, Refunding RB, Norton Healthcare, Inc., Series B (NPFGC), 0.00%, 10/01/24 (c)					250				148,492
Louisiana — 2.4%
Louisiana Local Government Environmental Facilities & Community Development Authority, RB, Westlake Chemical Corp., Series A-2, 6.50%, 11/01/35					1,630				1,739,797
Louisiana Public Facilities Authority, RB, Belle Chasse Educational Foundation Project, 6.75%, 5/01/41					645				687,847
Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, Series A, 5.25%, 5/15/35					3,910				3,780,579
									6,208,223
Maine — 0.4%
Maine Health & Higher Educational Facilities Authority, RB, Maine General Medical Center, 6.75%, 7/01/41					1,075				1,111,991
Maryland — 1.9%
City of Gaithersburg Maryland, Refunding RB, Asbury Maryland Obligation, Series B, 6.00%, 1/01/23					750				798,450
County of Frederick Maryland, RB, Jefferson Technology Park Project, Series B, 7.13%, 7/01/43					1,910				1,914,890
County of Howard Maryland, Refunding RB, Vantage House Facility, Series A, 5.25%, 4/01/33					500				413,930
Maryland EDC, RB:
Term Project, Series B, 5.75%, 6/01/35					1,500				1,509,735
Transportation Facilities Project, Series A, 5.75%, 6/01/35					265				266,720
Maryland Health & Higher Educational Facilities Authority, RB, Washington Christian Academy, 5.25%, 7/01/18 (e)(f)					250				74,987
									4,978,712
Massachusetts — 1.2%
Massachusetts Development Finance Agency, RB:
Foxborough Regional Charter School, Series A, 7.00%, 7/01/42					350				377,772
Linden Ponds, Inc. Facility, Series A-1, 6.25%, 11/15/39					353				280,592
Linden Ponds, Inc. Facility, Series A-2, 5.50%, 11/15/46					19				12,977
Linden Ponds, Inc. Facility, Series B, 0.00%, 11/15/56 (c)					94				458
North Hill Communities Issue, Series A, 6.50%, 11/15/43					1,480				1,375,497

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

DECEMBER 31, 2013

17

Schedule of Investments (continued)	BlackRock High Yield Municipal Fund (Percentages shown are based on Net Assets)

Municipal Bonds				Par (000)				Value
Massachusetts (concluded)
Massachusetts Development Finance Agency, Refunding RB:
Eastern Nazarene College, 5.63%, 4/01/29				$	500			$	499,990
Tufts Medical Center, Series I, 6.75%, 1/01/36					510				563,122
									3,110,408
Michigan — 3.2%
City of Detroit Michigan, GO, Taxable Capital Improvement Limited Tax (e)(f):
Series A-1, 5.00%, 4/01/16					350				111,993
Series A-2, 8.00%, 4/01/14					1,715				548,766
City of Detroit Michigan Sewage Disposal System, Refunding RB, Senior Lien, Series A:
5.00%, 7/01/32					960				861,513
5.25%, 7/01/39					1,660				1,501,254
County of Monroe Michigan Hospital Finance Authority, Refunding RB, Mercy Memorial Hospital Corp. Obligation, 5.50%, 6/01/35					1,565				1,489,348
Kentwood EDC, Refunding RB, Limited Obligation, Holland Home, 5.63%, 11/15/41					1,000				899,150
Royal Oak Hospital Finance Authority Michigan, Refunding RB, William Beaumont Hospital, Series V, 8.25%, 9/01/39					915				1,090,424
State of Michigan Hospital Finance Authority, Refunding RB, Henry Ford Health, 5.75%, 11/15/39					1,710				1,736,214
									8,238,662
Minnesota — 0.2%
St. Paul Housing & Redevelopment Authority, RB, Nova Classical Academy, Series A, 6.63%, 9/01/42					500				514,060
Missouri — 1.1%
City of Kansas Missouri, Tax Allocation Bonds, Kansas City MainCor Project, Series A, 5.25%, 3/01/18 (g)					500				551,065
Kirkwood IDA Missouri, RB, Aberdeen Heights, Series A, 8.25%, 5/15/39					435				478,309
Poplar Bluff Regional Transportation Development District, RB, 4.75%, 12/01/42					2,200				1,913,802
									2,943,176
Nebraska — 0.4%
Central Plains Energy Project Nebraska, RB, Gas Project No. 3:
5.25%, 9/01/37					445				439,620
5.00%, 9/01/42					780				735,790
									1,175,410
Nevada — 0.5%
County of Clark Nevada, RB, Southwest Gas Corp. Project, Series A, AMT (NPFGC), 4.75%, 9/01/36					20				18,783
County of Clark Nevada, Refunding, Special Assessment, Special Improvement District No. 142, Mountain’s Edge:
4.00%, 8/01/22					860				808,564
4.00%, 8/01/23					540				496,935
									1,324,282
New Hampshire — 0.2%
New Hampshire Health & Education Facilities Authority, Refunding RB, Dartmouth-Hitchcock, 6.00%, 8/01/38					435				464,889
Municipal Bonds				Par (000)				Value
New Jersey — 4.8%
New Jersey EDA, RB:
Continental Airlines, Inc. Project, AMT, 5.13%, 9/15/23				$	1,965			$	1,853,506
Continental Airlines, Inc. Project, AMT, 5.25%, 9/15/29					840				764,467
Kapkowski Road Landfill Project, Series B, AMT, 6.50%, 4/01/31					3,000				3,204,630
Patterson Charter School for Science and Technology, Inc. Project, Series A, 6.10%, 7/01/44					660				640,471
Team Academy Charter School Project, 6.00%, 10/01/43					970				947,545
The Goethals Bridge Replacement Project, AMT, 5.38%, 1/01/43					1,360				1,316,371
New Jersey Health Care Facilities Financing Authority, Refunding RB, St. Joseph’s Healthcare System, 6.63%, 7/01/38					725				729,611
Tobacco Settlement Financing Corp. New Jersey, Refunding RB, Series 1A, 4.50%, 6/01/23					3,385				3,115,215
									12,571,816
New Mexico — 0.6%
New Mexico Hospital Equipment Loan Council, Refunding RB, Gerald Champion Regional Medical Center Project, 5.50%, 7/01/42					2,030				1,576,457
New York — 4.7%
Build NYC Resource Corp., RB, South Bronx Charter School for International Cultures and the Arts Project, Series A, 5.00%, 4/15/43					2,750				2,261,930
City of New York New York IDA, RB:
JetBlue Airways Corp. Project, AMT, 5.13%, 5/15/30					1,750				1,525,528
Queens Baseball Stadium, PILOT (AMBAC), 5.00%, 1/01/46					2,000				1,644,000
City of New York New York Industrial Development Agency, RB, AMT:
American Airlines, Inc., JFK International Airport, 8.00%, 8/01/28 (h)					235				255,610
British Airways PLC Project, 7.63%, 12/01/32					1,500				1,506,960
City of Yonkers New York Industrial Development Agency, RB, Sarah Lawrence College Project, Series A, 6.00%, 6/01/41					410				430,016
County of Chautauqua New York Industrial Development Agency, RB, NRG Dunkirk Power Project, 5.88%, 4/01/42					1,615				1,625,966
County of Genesee New York Industrial Development Agency, Refunding RB, United Memorial Medical Center Project, 5.00%, 12/01/32					500				444,395
New York Liberty Development Corp., Refunding RB, Liberty, 2nd Priority, Bank of America Tower at One Bryant Park Project, Class 3, 6.38%, 7/15/49					375				394,309
Niagara Area Development Corp., Refunding RB, Solid Waste Disposal Facility, Covanta Energy Project, Series A, AMT, 5.25%, 11/01/42					1,265				1,091,100
Onondaga Civic Development Corp., Refunding RB, St. Joseph’s Hospital Health Center Project, 5.00%, 7/01/42					1,220				1,014,027
									12,193,841

See Notes to Financial Statements.

18

SEMI-ANNUAL REPORT

DECEMBER 31, 2013

Schedule of Investments (continued)	BlackRock High Yield Municipal Fund (Percentages shown are based on Net Assets)

Municipal Bonds				Par (000)				Value
North Carolina — 1.1%
City of Charlotte North Carolina, Refunding RB, Charlotte-Douglas International Airport, Special Facilities Revenue, US Airway, Inc. Project, AMT, 5.60%, 7/01/27				$	1,180			$	1,110,746
North Carolina Medical Care Commission, Refunding RB:
Carolina Village Project, 6.00%, 4/01/38					1,000				976,190
Retirement Facilities, 1st Mortgage, Whitestone Project, Series A, 7.75%, 3/01/41					830				867,341
									2,954,277
North Dakota — 0.5%
City of Williston North Dakota, RB, Eagle Crest Apartments LLC Project, 7.75%, 9/01/38					1,345				1,304,596
Ohio — 1.2%
Buckeye Tobacco Settlement Financing Authority, RB, Asset-Backed Bonds, Series A-2, 5.75%, 6/01/34					4,460				3,246,479
Oklahoma — 0.3%
Oklahoma Development Finance Authority, Refunding RB, Inverness Village Community, 6.00%, 1/01/32					695				664,823
Pennsylvania — 5.5%
Allentown Neighborhood Improvement Zone Development Authority, Refunding RB, Series A:
5.00%, 5/01/35					1,185				1,076,466
5.00%, 5/01/42					2,730				2,393,527
County of Cumberland Pennsylvania Municipal Authority, Refunding RB, Diakon Lutheran, 6.38%, 1/01/39					2,680				2,806,308
County of Lancaster Pennsylvania Hospital Authority, Refunding RB, Brethren Village Project, Series A, 6.50%, 7/01/40					835				820,513
County of Lehigh Pennsylvania General Purpose Authority, Refunding RB, Bible Fellowship Church Homes, 5.13%, 7/01/32					2,095				1,777,063
County of Northampton Pennsylvania IDA, Tax Allocation Bonds, 7.00%, 7/01/32					1,345				1,275,733
East Hempfield Township IDA, Refunding RB, Student Housing Project at Millersville University of Pennsylvania, 5.00%, 7/01/45					3,135				2,807,173
Pennsylvania Economic Development Financing Authority, RB, US Airways Group, Series A, 7.50%, 5/01/20					1,200				1,306,440
									14,263,223
Tennessee — 0.5%
Tennessee Energy Acquisition Corp., RB, Series A, 5.25%, 9/01/26					1,250				1,304,200
Texas — 12.5%
Brazos River Authority, RB, TXU Electric, Series A, AMT, 8.25%, 10/01/30 (e)(f)					750				24,375
Central Texas Regional Mobility Authority, Refunding RB:
CAB, 0.00%, 1/01/28 (c)					3,000				1,328,250
CAB, 0.00%, 1/01/29 (c)					500				207,065
CAB, 0.00%, 1/01/30 (c)					1,330				512,210
CAB, 0.00%, 1/01/31 (c)					4,000				1,432,440
Senior Lien, 5.75%, 1/01/25					250				263,720
Senior Lien, 6.25%, 1/01/46					765				785,900
Sub-Lien, 5.00%, 1/01/42					265				227,105
City of Houston Texas, RB, Special Facilities Continental Airlines Inc. AMT:
Continental Airlines, Inc., Series A, 6.63%, 7/15/38					1,110				1,107,292
Municipal Bonds				Par (000)				Value
Texas (continued)
City of Houston Texas, RB, Special Facilities Continental Airlines Inc. AMT (concluded):
Continental Airlines, Inc., Series E, 6.75%, 7/01/21				$	630			$	628,211
Continental Airlines, Inc., Series E, 7.38%, 7/01/22					500				498,540
City of Houston Texas Airport System, Refunding ARB, Senior Lien, Series A, 5.50%, 7/01/39					120				130,602
Clifton Higher Education Finance Corp., ERB, Idea Public Schools:
5.50%, 8/15/31					255				257,670
5.75%, 8/15/41					280				282,904
5.00%, 8/15/42					1,310				1,172,777
Clifton Higher Education Finance Corp., Refunding RB, Uplift Education, Series A, 4.40%, 12/01/47					590				446,294
County of Bexar Texas Health Facilities Development Corp., RB, Army Retirement Residence Project, 6.20%, 7/01/45					1,320				1,367,744
County of Harris Texas Cultural Education Facilities Finance Corp., Refunding, MRB, Brazos Presbyterian Homes, Inc. Project, Series A:
5.00%, 1/01/38					510				397,627
5.00%, 1/01/43					520				392,662
5.13%, 1/01/48					1,535				1,147,842
County of Harris Texas Cultural Education Facilities Finance Corp., Refunding RB, Young Men’s Christian Association of the Greater Houston Area, Series A, 5.00%, 6/01/38					1,985				1,807,799
County of Harris Texas Houston Sports Authority, Refunding RB, CAB, Senior Lien, Series G (NPFGC), 0.00%, 11/15/41 (c)					350				56,290
County of Matagorda Texas Navigation District No. 1, Refunding RB, Central Power & Light Co. Project, Series A, 6.30%, 11/01/29					290				319,275
County of Tarrant Texas Cultural Education Facilities Finance Corp., RB, Series A:
CC Young Memorial Home, 8.00%, 2/15/38					330				348,510
Senior Living Center Project, 8.25%, 11/15/44					800				769,728
County of Tarrant Texas Cultural Education Facilities Finance Corp., Refunding RB, Northwest Senior Housing, Edgemere Project, Series A, 6.00%, 11/15/36					1,500				1,502,610
County of Travis Texas Health Facilities Development Corp., Refunding RB, 7.13%, 1/01/46					1,920				1,824,768
Danbury Higher Education Authority, Inc., RB, A.W. Brown Fellowship Charter, Series A (ACA), 5.00%, 8/15/16 (i)					355				395,605
Gulf Coast IDA, RB, Citgo Petroleum Project, AMT, 4.88%, 5/01/25					1,580				1,493,590
Houston Higher Education Finance Corp., RB, Cosmos Foundation, Inc., Series A, 6.50%, 5/15/31					1,000				1,095,340
New Hope Cultural Education Facilities Corp., RB:
5.88%, 4/01/36					890				860,443
6.00%, 4/01/45					1,355				1,297,833
North Texas Tollway Authority, RB, CAB, Special Project System, Series B, 0.00%, 9/01/37 (c)					725				175,341
North Texas Tollway Authority, Refunding RB, 2nd Tier System, Series F, 6.13%, 1/01/31					1,150				1,218,333
Red River Health Facilities Development Corp., First MRB Project:
Eden Home, Inc., 7.25%, 12/15/42					1,330				1,254,336
Wichita Falls Retirement Foundation, 5.13%, 1/01/41					600				493,512

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

DECEMBER 31, 2013

19

Schedule of Investments (continued)	BlackRock High Yield Municipal Fund (Percentages shown are based on Net Assets)

Municipal Bonds				Par (000)				Value
Texas (concluded)
State of Texas Turnpike Authority, RB, CAB (AMBAC), 0.00%, 8/15/30 (c)				$	5,200			$	1,932,424
Texas Private Activity Bond Surface Transportation Corp., RB, Senior Lien:
LBJ Infrastructure Group LLC, LBJ Freeway Managed Lanes Project, 7.00%, 6/30/40					1,000				1,081,050
NTE Mobility Partners LLC, North Tarrant Express Managed Lanes Project, 6.88%, 12/31/39					1,740				1,860,878
									32,398,895
Utah — 1.2%
State of Utah Charter School Finance Authority, RB, Navigator Pointe Academy, Series A, 5.63%, 7/15/40					1,000				923,140
State of Utah Charter School Finance Authority, Refunding RB, 6.75%, 10/15/43					2,050				2,086,941
									3,010,081
Virginia — 6.3%
County of Fairfax Virginia EDA, Refunding RB:
Goodwin House, Inc., 5.13%, 10/01/37					1,800				1,764,720
Goodwin House, Inc., 5.13%, 10/01/42					1,185				1,149,367
Vinson Hall LLC, Series A, 5.00%, 12/01/42					970				833,996
Vinson Hall LLC, Series A, 5.00%, 12/01/47					1,265				1,072,113
County of Hanover EDA, Refunding RB, Residential Care Facility, Covenant Woods, Series A, 5.00%, 7/01/47					1,015				798,713
Mosaic District Community Development Authority, Series A Special Assessment:
Bonds, 6.63%, 3/01/26					515				560,964
6.88%, 3/01/36					450				494,010
Virginia Small Business Financing Authority, RB, Senior Lien AMT:
Elizabeth River Crossings LLC Project, 6.00%, 1/01/37					4,095				4,197,375
Express Lanes LLC, 5.00%, 7/01/34					5,300				4,754,418
Watkins Centre Community Development Authority, RB, 5.40%, 3/01/20					650				637,611
									16,263,287
Washington — 0.9%
County of King Washington Public Hospital District No. 4, GO, Refunding, Snoqualmie Valley Hospital, 7.00%, 12/01/40					545				546,592
Greater Wenatchee Regional Events Center Public Facilities District, Refunding RB, Series A, 5.50%, 9/01/42					1,005				918,027
Washington Health Care Facilities Authority, RB, Kadlec Regional Medical Center, 5.00%, 12/01/42					1,000				844,220
									2,308,839
Wisconsin — 0.6%
Public Finance Authority, Refunding RB, Senior Obligated Group, Series B, AMT, 5.00%, 7/01/42					1,500				1,208,280
Wisconsin Health & Educational Facilities Authority, Refunding RB, St. Johns Communities, Inc., Series A:
7.25%, 9/15/29					75				78,647
7.63%, 9/15/39					145				152,688
									1,439,615
Total Municipal Bonds — 91.5%									237,707,457

Municipal Bonds Transferred to Tender Option Bond Trusts (j)				Par (000)				Value
California — 0.9%
Bay Area Toll Authority, Refunding RB, San Francisco Bay Area, Series F-1, 5.63%, 4/01/44				$	480			$	511,977
City of Los Angeles California Department of Airports, Refunding ARB, Los Angeles International Airport, Senior Series A, 5.00%, 5/15/40					1,679				1,707,180
									2,219,157
Colorado — 2.1%
Colorado Health Facilities Authority, Refunding RB, Sisters of Leavenworth Health System, Series A, 5.00%, 1/01/40					5,595				5,514,936
District of Columbia — 0.4%
District of Columbia Water & Sewer Authority, Refunding RB, Senior Lien, Series A, 6.00%, 10/01/35 (k)					1,645				1,043,575
Florida — 1.4%
County of Miami-Dade Florida, RB, Water & Sewer System, 5.00%, 10/01/34					3,500				3,622,818
Illinois — 2.4%
City of Chicago Illinois, GARB, O’Hare International Airport, 3rd Lien, Series A (NPFGC), 5.00%, 1/01/33 (k)					3,495				3,502,899
Illinois Finance Authority, RB, The Carle Foundation, Series A (AGM), 6.00%, 8/15/41					2,480				2,635,421
									6,138,320
New York — 11.9%
City of New York New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System 2nd General Resolution:
Fiscal 2013, Series CC, 5.00%, 6/15/47					11,040				11,287,738
Series EE, 5.50%, 6/15/43					3,795				4,019,398
Series HH, 5.00%, 6/15/31 (k)					3,015				3,213,251
Hudson Yards Infrastructure Corp., RB, Fiscal 2012, Series A, 5.75%, 2/15/47 (k)					1,720				1,826,317
New York Liberty Development Corp., RB, 1 World Trade Center Port Authority Consolidated Bonds, 5.25%, 12/15/43					7,725				7,973,050
New York Liberty Development Corp., Refunding RB, 4 World Trade Center Project, 5.75%, 11/15/51 (k)					2,520				2,653,308
									30,973,062
Ohio — 0.8%
State of Ohio, Refunding RB, Cleveland Clinic Health System Obligated Group, Series A, 5.50%, 1/01/39					2,010				2,167,228
South Carolina — 0.5%
State of South Carolina Housing Finance & Development Authority, Refunding RB, S/F Housing, Series B-1, 5.55%, 7/01/39					1,362				1,400,395
Virginia — 1.0%
Virginia Small Business Financing Authority, Refunding RB, Sentara Healthcare, 5.00%, 11/01/40					2,501				2,518,360
Washington — 1.2%
City of Bellingham Washington, RB, Water & Sewer, 5.00%, 8/01/40					2,999				3,107,592

See Notes to Financial Statements.

20

SEMI-ANNUAL REPORT

DECEMBER 31, 2013

Schedule of Investments (continued)	BlackRock High Yield Municipal Fund (Percentages shown are based on Net Assets)

Municipal Bonds Transferred to Tender Option Bond Trusts (j)				Par (000)				Value
Wisconsin — 0.9%
Wisconsin Health & Educational Facilities Authority, Refunding RB, Froedtert & Community Health, Inc., Series C, 5.25%, 4/01/39 (k)				$	2,179			$	2,218,091
Total Municipal Bonds Transferred to Tender Option Bond Trusts — 23.5%									60,923,534
Total Long-Term Investments (Cost — $310,466,863) — 115.0%									298,630,991

Short-Term Securities				Shares				Value
FFI Institutional Tax-Exempt Fund, 0.03% (l)(m)					3,553,160			$	3,553,160
Total Short-Term Securities (Cost — $3,553,160) — 1.4%									3,553,160
Total Investments (Cost — $314,020,023) — 116.4%									302,184,151
Liabilities in Excess of Other Assets — (2.0)%									(5,122,285	)
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (14.4%)									(37,465,545	)
Net Assets — 100.0%								$	259,596,321

Notes to Schedule of Investments

(a)				Represents a step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate shown is as of report date.
(b)				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)				Zero-coupon bond.
(d)				When-issued security. Unsettled when-issued transactions were as follows:

---

Counterparty				Value				Unrealized Appreciation
BC Ziegler & Co.				$	1,469,125			$	15

(e)				Non-income producing security.
(f)				Issuer filed for bankruptcy and/or is in default of principal and/or interest payments.
(g)				Security is collateralized by municipal or US Treasury obligations.
(h)				Variable rate security. Rate shown is as of report date and maturity shown is the date the principal owed can be recovered through demand.
(i)				US government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par.
(j)				Represent bonds transferred to a TOB. In exchange the Fund acquired residual interest certificates. These bonds serve as collateral in a financing transaction. See Note 3 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs.
(k)				All or a portion of security is subject to a recourse agreement, which may require the Fund to pay the liquidity provider in the event there is a shortfall between the TOB trust certificates and proceeds received from the sale of the security contributed to the TOB trust. In the case of a shortfall, the aggregate maximum potential amount the Fund could ultimately be required to pay under the agreements, which expire from January 1, 2015 to November 15, 2019 is $8,633,909.
(l)				Investments in issuers considered to be an affiliate of the Fund during the six months ended December 31, 2013, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

---

Affiliate				Shares Held at June 30, 2013				Net Activity				Shares Held at December 31, 2013				Income
FFI Institutional Tax-Exempt Fund				2,816,084				737,076				3,553,160				$546

(m)				Represents the current yield as of report date.
•				Financial futures contracts as of December 31, 2013 were as follows:

---

Contracts Sold

Issue

Exchange

Expiration

Notional Value

Unrealized Appreciation

(90)

10-Year US Treasury Note

Chicago Board of Trade

March 2014

USD

(11,074,219

)

$183,625

•

Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a disclosure 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 the Fund 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 the Fund’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.
				Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Fund’s policy, transfers between different levels of the fair value disclosure 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 investment and derivative financial instrument and is not necessarily an indication of the risks associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments, please refer to Note 2 of the Notes to Financial Statements.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

DECEMBER 31, 2013

21

Schedule of Investments (concluded)	BlackRock High Yield Municipal Fund

The following tables summarize the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy as of December 31, 2013:

---

				Level 1				Level 2				Level 3				Total
Assets:
Investments:
Long-Term Investments 1					—			$	298,630,991				—			$	298,630,991
Short-Term Securities				$	3,553,160				—				—				3,553,160
Total				$	3,553,160			$	298,630,991				—			$	302,184,151

1

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

---

				Level 1				Level 2				Level 3				Total
Derivative Financial Instruments 2
Assets:
Interest rate contracts				$	183,625				—				—			$	183,625

2

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

The carrying amount for certain of the Fund’s assets and liabilities approximates fair value for financial statement purposes. As of December 31, 2013, such assets and liabilities are categorized within the disclosure hierarchy as follows:

---

				Level 1				Level 2				Level 3				Total
Assets:
Cash pledged as collateral pledged for derivative contracts				$	160,000				—				—			$	160,000
Liabilities:
TOB trust certificates					—			$	(37,453,486	)			—				(37,453,486	)
Total				$	160,000			$	(37,453,486	)			—			$	(37,293,486	)

There were no transfers between levels during the six months ended December 31, 2013.

See Notes to Financial Statements.

22

SEMI-ANNUAL REPORT

DECEMBER 31, 2013

Schedule of Investments  December 31, 2013 (Unaudited)	BlackRock National Municipal Fund (Percentages shown are based on Net Assets)

Municipal Bonds				Par (000)				Value
Alabama — 1.0%
Alabama State Docks Department, Refunding RB, 6.00%, 10/01/40				$	15,945			$	17,576,174
City of Birmingham Alabama Special Care Facilities Financing Authority, RB, Children’s Hospital (AGC), 6.00%, 6/01/39					15,905				17,717,534
Courtland IDB Alabama, RB, International Paper Co. Projects, Series A, 6.25%, 11/01/33					2,590				2,758,583
Courtland IDB Alabama, Refunding RB, AMT:
Champion International Corp. Project, 6.00%, 8/01/29					195				195,333
International Paper Co., Series B, 6.25%, 8/01/25					750				750,000
Prattville IDB Alabama, RB, Recovery Zone Facility, Series C, 6.25%, 11/01/33					3,380				3,600,004
									42,597,628
Alaska — 0.2%
Borough of Matanuska-Susitna Alaska, RB, Goose Creek Correctional Center (AGC):
6.00%, 9/01/28					2,000				2,333,120
6.00%, 9/01/32					5,250				5,967,203
									8,300,323
Arizona — 0.3%
City of Phoenix & County of Maricopa Arizona IDA, Refunding RB, S/F, Series A-2, AMT (Fannie Mae), 5.80%, 7/01/40					400				411,812
County of Maricopa Arizona IDA, RB, Arizona Charter Schools Project, Series A, 6.75%, 7/01/29					2,100				1,745,730
County of Pinal Arizona IDA, RB, San Manuel Facility Project, AMT, 6.25%, 6/01/26					500				457,035
Industrial Development Authority of the City of Phoenix, RB, 6.88%, 7/01/44					3,440				3,423,694
Pinal County Electric District No. 4, RB, 6.00%, 12/01/38					1,200				1,224,444
Vistancia Community Facilities District Arizona, GO:
6.75%, 7/15/22					3,000				3,006,900
5.75%, 7/15/24					2,125				2,172,239
									12,441,854
California — 20.9%
ABAG Finance Authority for Nonprofit Corps., Refunding RB, Sharp Healthcare, 6.25%, 8/01/39					11,525				12,803,929
Bay Area Toll Authority, RB, San Francisco Bay Area Toll Bridge (a):
Series A-1, 0.96%, 4/01/45					75,000				74,351,250
Series C-1, 0.96%, 4/01/45					36,000				35,688,600
California Health Facilities Financing Authority, RB:
Catholic Healthcare West, Series J, 5.63%, 7/01/32					10,000				10,171,600
Sutter Health, Series A, 5.25%, 11/15/46					10,500				10,405,395
Sutter Health, Series B, 6.00%, 8/15/42					21,340				24,108,438
California Health Facilities Financing Authority, Refunding RB:
Catholic Healthcare West, Series A, 6.00%, 7/01/34					5,100				5,148,501
Catholic Healthcare West, Series A, 6.00%, 7/01/39					26,655				28,597,350
Stanford Hospital, Series A-3, 5.50%, 11/15/40					10,645				11,321,703
California State Public Works Board, LRB, Sub-Series I-1, 6.38%, 11/01/34					11,680				13,336,808
California State Public Works Board, RB, Various Capital Projects:
Sub-Series A-1, 6.00%, 3/01/35					14,125				15,738,499
Municipal Bonds				Par (000)				Value
California (continued)
California State Public Works Board, RB, Various Capital Projects (concluded):
Sub-Series I-1, 6.13%, 11/01/29				$	10,000			$	11,501,600
California Statewide Communities Development Authority, RB, Series A:
Kaiser Permanente, 5.00%, 4/01/42					60,000				58,750,800
Sutter Health, 6.00%, 8/15/42					10,190				11,396,292
California Statewide Communities Development Authority, Refunding RB, Catholic Healthcare West:
Series B, 5.50%, 7/01/30					2,940				3,166,292
Series E, 5.50%, 7/01/31					1,920				2,056,666
California Statewide Financing Authority, RB, Tobacco Settlement, Series B, 6.00%, 5/01/43					5,970				5,317,539
City & County of San Francisco California Airports Commission, ARB, Series E, 6.00%, 5/01/39					24,300				27,424,494
City & County of San Francisco California Airports Commission, Refunding ARB, 2nd Series A, AMT, 5.25%, 5/01/33					2,475				2,546,577
City & County of San Francisco California Airports Commission, Refunding RB, 2nd Series 34E, AMT (AGM):
5.75%, 5/01/21					8,220				9,281,120
5.75%, 5/01/23					17,000				19,135,200
City of Chula Vista California, Refunding RB, San Diego Gas & Electric, Series A, 5.88%, 2/15/34					5,850				6,471,972
City of San Jose California, Refunding ARB, AMT:
Series A (AMBAC), 5.50%, 3/01/32					6,475				6,873,989
Series A-1, 5.75%, 3/01/34					7,010				7,323,557
Series A-1, 6.25%, 3/01/34					5,250				5,777,310
City of San Jose California Hotel Tax, RB, Convention Center Expansion & Renovation Project:
6.50%, 5/01/36					1,510				1,703,778
6.50%, 5/01/42					5,130				5,757,604
County of Orange California Sanitation District, COP, Series B (AGM), 5.00%, 2/01/37					25,000				25,976,750
County of Sacramento California, RB, Subordinated & Passenger Facility Charges/Grant, Series C:
6.00%, 7/01/39					16,945				18,802,680
6.00%, 7/01/41					13,280				14,735,886
County of San Joaquin California Transportation Authority, Refunding RB, Limited Tax Measure K, Series A:
6.00%, 3/01/36					12,830				14,443,501
5.50%, 3/01/41					26,390				28,290,080
Cucamonga Valley Water District, Refunding RB, Series A (AGM), 5.38%, 9/01/35					26,315				28,429,673
Gilroy Public Facilities Financing Authority, Refunding RB, 6.00%, 11/01/33					6,535				7,445,914
Grossmont Healthcare District, GO, Election of 2006, Series B, 6.13%, 7/15/40					3,500				3,922,450
Los Angeles Department of Water & Power, RB:
Power System, Sub-Series A-1 (AGM), 5.00%, 7/01/35					40,000				41,647,200
Series B, 5.00%, 7/01/43					21,745				22,505,858
Los Angeles Department of Water & Power, Refunding RB, Series A, 5.25%, 7/01/39					40,000				42,350,400
Los Angeles Municipal Improvement Corp., RB, Real Property, Series E:
6.00%, 9/01/34					4,890				5,501,592
6.00%, 9/01/39					9,450				10,580,409
Metropolitan Water District of Southern California, RB, Series A, 5.00%, 7/01/37					10,000				10,541,300
Modesto Irrigation District, COP, Capital Improvements, Series A, 6.00%, 10/01/39					11,755				12,678,590

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

DECEMBER 31, 2013

23

Schedule of Investments (continued)	BlackRock National Municipal Fund (Percentages shown are based on Net Assets)

Municipal Bonds				Par (000)				Value
California (concluded)
Oakland Unified School District/Alameda County, GO, Election of 2012, 6.63%, 8/01/38				$	3,750			$	4,059,188
Orange County Sanitation District, COP, Series A, 5.00%, 2/01/35					10,000				10,591,600
Orange County Water District, COP, Refunding, 5.00%, 8/15/39					15,000				15,597,000
Port of Oakland California, Refunding RB, Senior Lien, Series P, AMT:
5.00%, 5/01/27					12,480				12,958,733
5.00%, 5/01/31					12,750				12,879,030
San Juan Water District, COP, Series A, 6.00%, 2/01/39					10,000				11,147,600
State of California, GO, Various Purposes:
6.50%, 4/01/33					38,500				45,469,655
6.00%, 4/01/38					34,485				38,672,514
Tuolumne Wind Project Authority, RB, Tuolumne Co. Project, Series A, 5.88%, 1/01/29					19,355				21,767,794
University of California, RB, Series O, 5.75%, 5/15/34					1,450				1,624,392
University of California, Refunding RB, Limited Project, Series G, 5.00%, 5/15/37					20,650				21,333,515
									910,110,167
Colorado — 0.3%
Central Platte Valley Metropolitan District, GO, Series A, 6.00%, 12/01/38					1,000				1,054,190
Colorado Health Facilities Authority, RB, Catholic Health Initiatives, Series D, 6.25%, 10/01/33					4,385				4,864,149
Plaza Metropolitan District No. 1, Tax Allocation Bonds, Public Improvement Fee, Tax Increment, 8.00%, 6/01/14 (b)					7,700				8,027,789
									13,946,128
Connecticut — 0.2%
State of Connecticut, RB, Special Tax Bonds, Transportation Infrastructure, Series A, 5.00%, 10/01/33					10,000				10,617,600
Delaware — 0.7%
County of Sussex Delaware, RB, NRG Energy, Inc., Indian River Project, 6.00%, 10/01/40					31,500				32,415,705
District of Columbia — 1.2%
District of Columbia, RB, Series A, 5.50%, 12/01/30					20,530				22,838,804
District of Columbia Water & Sewer Authority, Refunding RB, Series A:
6.00%, 10/01/35					12,630				14,024,731
5.50%, 10/01/39					7,475				7,933,666
Metropolitan Washington Airports Authority, Refunding RB, Dulles Toll Road, 1st Senior Lien, Series A, 5.25%, 10/01/44					5,765				5,807,142
									50,604,343
Florida — 4.9%
Anthem Park Community Development District, Special Assessment Bonds, 5.80%, 5/01/36 (c)(d)					1,720				1,225,001
City of State Augustine, RB, 5.75%, 10/01/41					1,000				1,072,160
County of Escambia Florida, RB, International Paper Co. Projects, Series B, 6.25%, 11/01/33					7,500				7,988,175
County of Highlands Florida Health Facilities Authority, RB, Adventist Health System/Sunbelt, Series B, 6.00%, 11/15/37					4,990				5,583,910
County of Hillsborough Florida IDA, RB, National Gypsum Co. AMT:
Series A, 7.13%, 4/01/30					6,000				6,000,600
Series B, 7.13%, 4/01/30					7,750				7,749,767
Municipal Bonds				Par (000)				Value
Florida (concluded)
County of Miami-Dade Florida, GO, Building Better Communities Program:
Series B, 6.38%, 7/01/28				$	9,300			$	10,654,266
Series B-1, 5.75%, 7/01/33					2,400				2,638,248
Series B-1, 6.00%, 7/01/38					30,000				33,302,100
County of Miami-Dade Florida, RB, Seaport, Series A:
6.00%, 10/01/38					6,175				6,690,983
5.50%, 10/01/42					5,375				5,558,986
County of Miami-Dade Florida, Refunding RB:
Miami International Airport, Series A, AMT (AGC), 5.50%, 10/01/26					7,000				7,742,980
Miami International Airport, Series A, AMT (AGC), 5.50%, 10/01/27					5,495				5,988,561
Water & Sewer Systems, Series C, 6.00%, 10/01/23					25,000				29,312,000
Fiddlers Creek Community Development District No. 2, Special Assessment Bonds, Series A, 6.38%, 5/01/35 (c)(d)					6,850				3,565,151
Florida Housing Finance Corp., Refunding RB, AMT, Homeowner Mortgage, Series 1 (Ginnie Mae), 6.00%, 7/01/39					1,980				2,060,824
Florida Ports Financing Commission, Refunding RB, State Transportation Trust Fund, Series B, AMT, 5.13%, 6/01/27					10,000				10,684,700
Harbor Bay Community Development District Florida, Special Assessment Bonds, Series A, 7.00%, 5/01/33					935				937,179
Highland Meadows Community Development District, Special Assessment Bonds, Series A, 5.50%, 5/01/36 (c)(d)					1,090				422,669
Jacksonville Electric Authority Florida, RB:
Scherer 4 Project, Series A, 6.00%, 10/01/37					11,225				11,341,291
Sub-Series A, 5.63%, 10/01/32					10,525				11,447,200
Sub-Series A, 5.50%, 10/01/39					10,000				10,085,600
Mid-Bay Bridge Authority, RB, Springing Lien, Series A, 7.25%, 10/01/40					14,350				15,650,971
State of Florida, GO, Board of Education, Series A:
5.38%, 6/01/33					3,950				4,362,854
5.50%, 6/01/38					4,790				5,298,459
State of Florida, RB, Board of Education Lottery Revenue, Series A, 5.75%, 7/01/28					3,890				4,465,098
Sterling Hill Community Development District, Refunding RB, Special Assessment Bonds, Series B, 5.50%, 11/01/10 (c)(d)					160				103,083
Watergrass Community Development District, Special Assessment Bonds, Series B:
5.13%, 11/01/14					900				798,714
6.96%, 11/01/17					600				556,440
									213,287,970
Georgia — 2.0%
City of Atlanta Georgia Department of Aviation, Refunding GARB, Series C, 6.00%, 1/01/30					30,000				33,924,900
County of DeKalb Georgia Hospital Authority, Refunding RB, DeKalb Medical Center, Inc. Project, 6.13%, 9/01/40					2,000				1,969,460
Fulton County Residential Care Facilities for the Elderly Authority, Refunding RB, Canterbury Court Project, Series A, 6.00%, 2/15/22					2,250				2,250,405
Municipal Electric Authority of Georgia, Refunding RB:
Project One, Sub-Series D, 6.00%, 1/01/23					10,000				11,665,300
Series EE (AMBAC), 7.00%, 1/01/25					20,000				26,131,600

See Notes to Financial Statements.

24

SEMI-ANNUAL REPORT

DECEMBER 31, 2013

Schedule of Investments (continued)	BlackRock National Municipal Fund (Percentages shown are based on Net Assets)

Municipal Bonds				Par (000)				Value
Georgia (concluded)
Richmond County Development Authority, RB, Recovery Zone Facility, International Paper Co., Series B, 6.25%, 11/01/33				$	3,625			$	3,860,951
Rockdale County Development Authority, RB, Visy Paper Project, Series A, AMT, 6.13%, 1/01/34					5,000				5,009,450
									84,812,066
Illinois — 6.3%
Bolingbrook Special Service Area No. 1, Special Tax Bonds, Forest City Project, 5.90%, 3/01/27					1,000				896,590
City of Chicago Illinois, GARB, O’Hare International Airport 3rd Lien:
Series B-2, AMT, 6.00%, 1/01/29					40,905				41,037,532
Series B-2, AMT (NPFGC), 6.00%, 1/01/27					2,125				2,132,246
Series C, 6.50%, 1/01/41					24,570				27,383,756
City of Chicago Illinois, Refunding GARB, O’Hare International Airport Revenue, Senior Lien, Series C, AMT, 5.50%, 1/01/34					5,380				5,440,902
City of Chicago Illinois Transit Authority, RB, Federal Transit Administration, Section 5309, Series A (AGC), 6.00%, 6/01/26					15,000				16,174,350
City of Chicago Illinois Wastewater Transmission, RB, Series A (BHAC), 5.50%, 1/01/38					3,000				3,212,670
Illinois Finance Authority, RB:
Advocate Health Care Network, Series D, 6.50%, 11/01/38					7,020				7,852,010
Carle Foundation, Series A, 6.00%, 8/15/41					6,450				6,883,698
Carle Foundation, Series A (AGM), 6.00%, 8/15/41					3,675				3,905,312
Community Rehabilitation Providers Facilities, Series A, 6.50%, 7/01/22					810				774,417
DePaul University, Series A, 6.13%, 10/01/40					11,735				12,753,246
Rush University Medical Center, Series B, 7.25%, 11/01/30					5,280				6,124,589
Rush University Medical Center, Series C, 6.38%, 11/01/29					2,860				3,193,333
Rush University Medical Center, Series C, 6.63%, 11/01/39					80				87,737
University of Chicago, Series B, 6.25%, 7/01/38					25,000				27,387,250
Illinois Finance Authority, Refunding RB:
Ascension Health, Series A, 5.00%, 11/15/42					9,750				9,559,582
Central Dupage Health, Series B, 5.50%, 11/01/39					4,205				4,382,872
Northwestern Memorial Hospital, Series A, 6.00%, 8/15/39					29,905				33,236,118
Northwestern Memorial Hospital, Series B, 6.00%, 8/15/14 (b)					1,200				1,243,332
OSF Healthcare System, Series A, 7.00%, 11/17/14 (b)					3,335				3,533,466
OSF Healthcare System, Series A, 7.13%, 11/17/14 (b)					1,970				2,089,382
OSF Healthcare System, Series A, 6.00%, 5/15/39					11,100				11,867,010
Roosevelt University Project, 6.50%, 4/01/39					8,000				8,166,880
Rush University Medical Center Obligation Group, Series A, 7.25%, 11/01/30					6,900				8,010,417
Railsplitter Tobacco Settlement Authority, RB, 6.00%, 6/01/28					13,865				15,072,503
University of Illinois, RB, Series A, 5.75%, 4/01/38					275				300,501
Village of Hodgkins Illinois, RB, Metropolitan Biosolids Management LLC Project, AMT, 6.00%, 11/01/23					10,000				10,005,200
Municipal Bonds				Par (000)				Value
Illinois (concluded)
Village of Wheeling Illinois, Tax Allocation Bonds, North Milwaukee/Lake-Cook TIF Project, 6.00%, 1/01/25				$	1,215			$	1,162,269
									273,869,170
Indiana — 2.6%
City of Valparaiso Indiana, RB, Exempt Facilities, Pratt Paper LLC Project, AMT:
6.75%, 1/01/34					3,870				3,875,921
7.00%, 1/01/44					7,330				7,335,497
Indiana Finance Authority, RB, Wastewater Utility, 1st Lien, CWA Authority Project, Series A, 5.25%, 10/01/38					17,500				18,198,600
Indiana Finance Authority, Refunding RB:
Duke Energy Indiana Project, Series B, 6.00%, 8/01/39					11,000				11,868,120
Parkview Health System, Series A, 5.75%, 5/01/31					1,570				1,651,389
Trinity Health, Series A, 5.63%, 12/01/38					12,000				12,918,000
Indiana Municipal Power Agency, RB, Series B:
5.75%, 1/01/34					700				700,000
6.00%, 1/01/39					19,620				21,503,324
Indianapolis Local Public Improvement Bond Bank, Refunding RB, Waterworks Project Series A:
5.75%, 1/01/38					12,800				13,573,888
(AGC), 5.50%, 1/01/38					21,900				22,910,685
									114,535,424
Iowa — 1.8%
Iowa Finance Authority, RB, Iowa Healthcare Facilities:
Genesis Health System, 5.50%, 7/01/33					16,000				16,611,360
Series A (AGC), 5.63%, 8/15/37					5,600				5,897,640
Iowa Finance Authority, Refunding RB, Midwestern Disaster Area, Iowa Fertilizer Co. Project, 5.50%, 12/01/22					35,000				32,724,650
Iowa Student Loan Liquidity Corp., RB, AMT, Senior Series A-2:
5.40%, 12/01/24					12,360				12,646,999
5.50%, 12/01/25					8,245				8,462,668
									76,343,317
Kansas — 0.0%
Sedgwick & Shawnee Counties Kansas, RB, AMT (Ginnie Mae), 6.95%, 6/01/29					345				364,430
Kentucky — 0.1%
Kentucky Economic Development Finance Authority, RB, Owensboro Medical Health System, Inc., Series A, 6.38%, 6/01/40					4,480				4,629,632
Louisiana — 2.1%
City of New Orleans Louisiana Aviation Board, Refunding GARB, Restructuring, Series A-2 (AGC), 6.00%, 1/01/23					1,370				1,538,551
Louisiana Local Government Environmental Facilities & Community Development Authority, RB, Westlake Chemical Corp. Project:
6.75%, 11/01/32					7,080				7,491,560
Series A, 6.50%, 8/01/29					11,195				12,231,433
Series A-1, 6.50%, 11/01/35					17,185				18,342,582
State of Louisiana Gasoline & Fuels Tax, Refunding RB, 2nd Lien, Series B (a):
0.59%, 5/01/43					32,000				31,854,080
0.67%, 5/01/43					20,000				19,795,800
									91,254,006

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

DECEMBER 31, 2013

25

Schedule of Investments (continued)	BlackRock National Municipal Fund (Percentages shown are based on Net Assets)

Municipal Bonds				Par (000)				Value
Maine — 0.4%
Maine Health & Higher Educational Facilities Authority, RB, Maine General Medical Center:
7.50%, 7/01/32				$	12,365			$	13,526,692
6.95%, 7/01/41					2,205				2,309,186
									15,835,878
Maryland — 0.4%
Maryland Health & Higher Educational Facilities Authority, RB, University of Maryland Medical System, Series B (NPFGC), 7.00%, 7/01/22					3,980				4,784,079
Maryland Health & Higher Educational Facilities Authority, Refunding RB, Charlestown Community Project, 6.25%, 1/01/41					11,000				11,422,290
									16,206,369
Massachusetts — 0.8%
Massachusetts Development Finance Agency, RB, Foxborough Regional Charter School, Series A, 7.00%, 7/01/42					1,375				1,484,106
Massachusetts Development Finance Agency, Refunding RB, Harvard University, Series B-1, 5.00%, 10/15/40					18,500				19,720,630
Massachusetts HFA, RB, Series B, 7.00%, 12/01/38					4,585				4,922,319
Massachusetts Water Pollution Abatement Trust, RB, Series 13, 5.00%, 8/01/37					7,875				8,209,294
									34,336,349
Michigan — 1.4%
City of Lansing Michigan, RB, Board of Water & Light Utilities System, Series A, 5.50%, 7/01/41					6,485				6,851,662
Michigan State Building Authority, Refunding RB, Facilities Program, Series I:
6.00%, 10/15/38					12,455				13,781,831
6.25%, 10/15/38					7,500				8,430,000
Michigan State HDA, RB, Series C, AMT, 5.50%, 12/01/28					1,440				1,464,091
Royal Oak Hospital Finance Authority Michigan, Refunding RB, William Beaumont Hospital:
Series V, 8.25%, 9/01/39					18,130				21,605,884
Series W, 6.00%, 8/01/39					5,145				5,357,128
State of Michigan Hospital Finance Authority, Refunding RB, Henry Ford Health, 5.75%, 11/15/39					4,285				4,350,689
									61,841,285
Minnesota — 0.7%
City of Minneapolis Minnesota, Refunding RB, Fairview Health Services:
Series A, 6.75%, 11/15/32					5,940				6,796,489
Series B (AGC), 6.50%, 11/15/38					17,905				20,356,553
Ramsey County Housing & Redevelopment Authority Minnesota, RB, Hanover Townhouses Project, AMT, 6.00%, 7/01/31					1,110				1,110,810
									28,263,852
Mississippi — 0.0%
County of Warren Mississippi, RB, International Paper Co. Project, Series A, 6.50%, 9/01/32					1,500				1,628,175
Missouri — 0.0%
City of Saint Louis Missouri, RB, Lambert-St. Louis International, Series A-1, 6.25%, 7/01/29					1,175				1,295,837
Nevada — 2.6%
City of Las Vegas Nevada, GO, Limited Tax, Performing Arts Center, 6.00%, 4/01/34					12,925				14,009,925
City of Reno Nevada, Special Assessment Bonds, Somerset Parkway, 6.63%, 12/01/22					1,440				1,445,904
Municipal Bonds				Par (000)				Value
Nevada (concluded)
Clark County Water Reclamation District, GO, Series B:
5.75%, 7/01/34				$	3,125			$	3,523,156
5.75%, 7/01/38					32,685				36,779,123
County of Clark Nevada Airport System, ARB, Series B, 5.75%, 7/01/42					51,700				55,101,343
									110,859,451
New Hampshire — 0.4%
New Hampshire Health & Education Facilities Authority, Refunding RB, Dartmouth-Hitchcock, 6.00%, 8/01/38					15,500				16,565,005
New Jersey — 6.2%
Cape May County Industrial Pollution Control Financing Authority, Refunding RB, Atlantic City Electric Co., Series A (NPFGC), 6.80%, 3/01/21					5,000				6,044,750
Monmouth County Improvement Authority, RB, Brookdale Community College Project, 6.00%, 8/01/38					3,600				4,057,668
New Jersey EDA, RB, Motor Vehicle Surcharge, Series A (NPFGC), 5.25%, 7/01/33					26,500				26,921,085
New Jersey EDA, Refunding RB, New Jersey American Water Co., Inc. Project, Series B, AMT, 5.60%, 11/01/34					8,270				8,723,196
New Jersey Educational Facilities Authority, Refunding RB, University of Medicine & Dentistry, Series B (b):
7.13%, 6/01/19					2,870				3,693,260
7.50%, 6/01/19					9,200				12,017,408
New Jersey Health Care Facilities Financing Authority, Refunding RB, AHS Hospital Corp.:
6.00%, 7/01/37					1,200				1,315,104
6.00%, 7/01/41					30,685				34,374,564
New Jersey Higher Education Student Assistance Authority, Refunding RB, Series 1, AMT:
5.50%, 12/01/25					950				976,163
5.75%, 12/01/27					500				527,310
5.75%, 12/01/28					450				471,222
New Jersey State Housing & Mortgage Finance Agency, RB, S/F Housing, Series AA:
6.38%, 10/01/28					1,020				1,070,113
6.50%, 10/01/38					1,480				1,495,969
New Jersey State Turnpike Authority, Refunding RB (a):
Series D, 0.59%, 1/01/22					17,000				16,984,020
Series D, 0.68%, 1/01/23					17,000				17,020,230
Series D, 0.74%, 1/01/24					15,000				14,954,550
Series E, 0.59%, 1/01/22					12,000				11,988,720
Series E, 0.68%, 1/01/23					10,000				10,011,900
Series E, 0.74%, 1/01/24					10,000				9,969,700
New Jersey Transportation Trust Fund Authority, RB, Transportation System:
Series A, 5.13%, 6/15/28					5,000				5,306,450
Series A, 5.13%, 6/15/29					12,875				13,562,911
Series A, 5.88%, 12/15/38					4,255				4,719,646
Series AA, 5.25%, 6/15/33					10,000				10,556,400
Series AA, 5.00%, 6/15/38					12,000				12,148,320
Series AA, 5.50%, 6/15/39					11,400				12,036,006
Series B, 5.25%, 6/15/36					27,735				28,702,119
									269,648,784
New Mexico — 0.0%
County of Santa Fe New Mexico, RB, (AGM), 6.00%, 2/01/27					250				287,980
New Mexico Mortgage Finance Authority, RB, S/F Mortgage Program, Series D, AMT (Fannie Mae), 6.15%, 7/01/35					860				914,859
									1,202,839

See Notes to Financial Statements.

26

SEMI-ANNUAL REPORT

DECEMBER 31, 2013

Schedule of Investments (continued)	BlackRock National Municipal Fund (Percentages shown are based on Net Assets)

Municipal Bonds				Par (000)				Value
New York — 5.7%
City of New York New York, GO, Series E-1, 6.25%, 10/15/28				$	10,100			$	11,723,979
City of New York New York Transitional Finance Authority, RB, Fiscal 2012, Sub-Series E-1, 5.00%, 2/01/42					10,000				10,273,900
Long Island Power Authority, Refunding RB, Electric System, Series A, 6.00%, 5/01/33					49,450				55,397,846
Metropolitan Transportation Authority, RB:
Series C, 6.50%, 11/15/28					21,870				25,309,495
Series D, 5.25%, 11/15/41					13,925				14,239,287
New York City Housing Development Corp., RB, Series M:
6.50%, 11/01/28					4,300				4,701,061
6.88%, 11/01/38					7,785				8,307,918
New York State Dormitory Authority, RB, Columbia University, 5.00%, 10/01/41					38,750				40,791,738
Niagara Area Development Corp., Refunding RB, Solid Waste Disposal Facility, Covanta Energy Project, Series A, AMT, 5.25%, 11/01/42					10,000				8,625,300
Port Authority of New York & New Jersey, Refunding ARB, Consolidated, 152nd Series, AMT, 5.75%, 11/01/30					4,695				5,100,319
Sales Tax Asset Receivable Corp., Refunding RB, Series A (AMBAC):
5.25%, 10/15/27					13,935				14,424,537
5.00%, 10/15/32					22,800				23,344,692
State of New York Dormitory Authority, ERB, Series B, 5.75%, 3/15/36					17,250				19,307,753
Triborough Bridge & Tunnel Authority, RB, General, Series A-2, 5.38%, 11/15/38					5,715				6,030,982
									247,578,807
North Carolina — 0.1%
Columbus County Industrial Facilities & Pollution Control Financing Authority North Carolina, RB, International Paper Co. Projects, Series B, 6.25%, 11/01/33					3,000				3,195,270
Ohio — 1.2%
County of Lucas Ohio, Refunding RB, Promedica Healthcare, Series A:
5.75%, 11/15/31					500				545,170
6.50%, 11/15/37					12,140				13,597,164
6.00%, 11/15/41					4,400				4,754,464
County of Montgomery Ohio, Refunding RB, Catholic Health, Series A, 5.50%, 5/01/34					10,595				11,507,018
State of Ohio, Refunding RB, Cleveland Clinic Health, Series A, 5.50%, 1/01/39					5,795				6,249,270
State of Ohio Turnpike Commission, RB, Junior Lien, Series A, 5.25%, 2/15/39					12,850				13,349,351
									50,002,437
Oklahoma — 0.1%
County of Epworth Oklahoma Finance Authority, Refunding RB, Epworth Villa Project, Series A, 5.13%, 4/01/42					6,300				5,712,021
Oregon — 0.0%
City of Portland Oregon, M/F HRB, Lovejoy Station Apartments Project, AMT (NPFGC), 5.90%, 7/01/23					425				425,663
Pennsylvania — 1.7%
City of Philadelphia Pennsylvania Gas Works, RB, 12th Series B (NPFGC), 7.00%, 5/15/20 (e)					3,515				4,214,801
City of Philadelphia Pennsylvania IDA, RB, Commercial Development, AMT, 7.75%, 12/01/17					1,265				1,265,582
Municipal Bonds				Par (000)				Value
Pennsylvania (concluded)
County of Allegheny Pennsylvania IDA, Refunding RB, Environmental Improvement, US Steel Corp. Project:
6.75%, 11/01/24				$	5,785			$	5,953,748
6.75%, 12/01/27					5,000				5,139,800
6.88%, 5/01/30					5,000				5,124,500
County of Cumberland Pennsylvania Municipal Authority, Refunding RB, Diakon Lutheran:
6.38%, 1/01/39					10,575				11,073,400
6.50%, 1/01/39					2,245				2,246,998
County of Northampton Pennsylvania IDA, Tax Allocation Bonds, 7.00%, 7/01/32					2,455				2,328,567
Dauphin County General Authority, Refunding RB, Pinnacle Health System Project, Series A:
6.00%, 6/01/29					12,530				13,511,350
6.00%, 6/01/36					2,970				3,146,804
Lancaster County Hospital Authority, Refunding RB, Brethren Village Project, Series A, 6.25%, 7/01/26					1,160				1,167,946
Pennsylvania Economic Development Financing Authority, RB, American Water Co. Project, 6.20%, 4/01/39					3,475				3,747,197
Pennsylvania Turnpike Commission, RB:
5.25%, 6/01/39					15,000				15,182,400
Subordinate, Special Motor License Fund, 6.00%, 12/01/36					1,125				1,253,273
									75,356,366
South Carolina — 0.3%
County of Richland South Carolina, Refunding RB, International Paper Co. Project, AMT, 6.10%, 4/01/23					3,000				3,000,510
South Carolina Jobs EDA, Refunding RB, Palmetto Health, Series A, (AGM):
6.25%, 8/01/34					1,475				1,600,758
6.50%, 8/01/39					4,210				4,582,122
South Carolina State Public Service Authority, Refunding RB, Santee Cooper, Series A, 5.50%, 1/01/38					2,390				2,555,938
									11,739,328
Tennessee — 1.3%
County of Rutherford Tennessee Health & Educational Facilities Board, RB, Ascension Health, Series C, 5.00%, 11/15/47					23,740				23,526,578
Metropolitan Government of Nashville & Davidson County Tennessee, Refunding RB, Water and Sewer, 5.00%, 7/01/40					33,170				34,675,586
									58,202,164
Texas — 7.4%
City of Dallas Texas Waterworks & Sewer System, Refunding RB, Series A, 5.00%, 10/01/41					16,855				17,631,678
City of Houston Texas Utility System, Refunding RB, Combined 1st Lien, Series A (AGC), 6.00%, 11/15/35					32,350				36,483,359
City of Houston Texas Utility System Revenue, Refunding RB, Series A (NPFGC), 5.13%, 5/15/28					20,000				20,289,000
County of Harris Texas Cultural Education Facilities Finance Corp., RB:
1st Mortgage, Brazos Presbyterian Home Inc., Project, Series B, 7.00%, 1/01/48					2,625				2,591,479
Brazos Presbyterian Homes, Inc. Project, Series B, 7.00%, 1/01/43					1,075				1,076,419
Brazos Presbyterian Homes, Inc., Series B, 6.38%, 1/01/33					465				459,708

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

DECEMBER 31, 2013

27

Schedule of Investments (continued)	BlackRock National Municipal Fund (Percentages shown are based on Net Assets)

Municipal Bonds				Par (000)				Value
Texas (concluded)
County of Matagorda Texas Navigation District No. 1, Refunding RB, Central Power & Light Co. Project, Series A, 6.30%, 11/01/29				$	9,775			$	10,761,786
County of Tarrant Texas Cultural Education Facilities Finance Corp., RB, Scott & White Healthcare, 6.00%, 8/15/45					50,000				55,752,000
County of Tarrant Texas Cultural Education Facilities Finance Corp., Refunding RB, Northwest Senior Housing, Edgemere Project, Series A, 6.00%, 11/15/26					2,200				2,234,518
Dallas Area Rapid Transit, Refunding RB, Senior Lien, 5.00%, 12/01/42					21,550				22,333,343
Dallas/Fort Worth International Airport, Refunding RB, Series G, 5.00%, 11/01/29					5,155				5,298,773
North Texas Tollway Authority, RB, Special Projects System, Series A, 6.00%, 9/01/41					4,815				5,345,998
North Texas Tollway Authority, Refunding RB:
1st Tier System, 6.00%, 1/01/34					11,490				12,515,138
1st Tier System, Series A, 6.00%, 1/01/28					1,000				1,120,580
1st Tier System, Series A (NPFGC), 5.75%, 1/01/40					7,720				8,106,309
1st Tier System, Series B (NPFGC), 5.75%, 1/01/40					9,870				10,363,895
1st Tier System, Series K-2 (AGC), 6.00%, 1/01/38					2,245				2,453,785
2nd Tier System, Series F, 6.13%, 1/01/31					25,615				27,137,043
Port of Bay City Authority Texas, RB, Hoechst Celanese Corp. Project, AMT, 6.50%, 5/01/26					4,000				4,015,960
State of Texas, GO:
Transportation Commission, Highway Improvement, 5.00%, 4/01/42					20,000				21,047,600
Refunding Water Financial Assistance, 5.75%, 8/01/22					3,445				3,455,714
Texas Private Activity Bond Surface Transportation Corp., RB, Senior Lien:
LBJ Infrastructure Group LLC, LBJ Freeway Managed Lanes Project, 7.00%, 6/30/40					24,695				26,696,530
NTE Mobility Partners LLC, North Tarrant Express Managed Lanes Project, 6.88%, 12/31/39					23,000				24,597,810
									321,768,425
Utah — 1.7%
City of Salt Lake City Utah, Refunding RB, IHC Hospital, Inc., Series A, 8.13%, 5/15/15 (e)					20				21,094
County of Utah Utah, RB, IHC Health Services, Inc., 5.00%, 5/15/43					59,680				60,558,490
Utah Transit Authority, RB, Series A, 5.00%, 6/15/36					13,000				13,537,160
									74,116,744
Virginia — 1.5%
City of Winchester Virginia IDA, Refunding RB, Valley Health (BHAC) (AMBAC), 5.25%, 1/01/37					31,970				33,730,907
Hampton Redevelopment & Housing Authority, RB, M/F Housing Facility, Tidewater Seniors Apartments Project, AMT, 5.45%, 1/01/34					1,905				1,905,000
Virginia HDA, RB, Rental Housing, Series A, 5.25%, 5/01/41					2,865				2,892,619
Virginia Small Business Financing Authority, RB, Senior Lien, Elizabeth River Crossings LLC Project, AMT, 6.00%, 1/01/37					28,085				28,787,125
									67,315,651
Municipal Bonds				Par (000)				Value
Washington — 2.8%
City of Seattle Washington Housing Authority, RB, Newholly Project, AMT, 6.25%, 12/01/35				$	2,750			$	2,506,102
Port of Seattle Washington, Refunding RB, Intermediate Lien, Series A:
5.00%, 8/01/31					10,000				10,527,000
5.00%, 8/01/33					2,500				2,608,000
University of Washington, Refunding RB, Series A, 5.00%, 7/01/41					49,800				51,792,498
Washington Health Care Facilities Authority, RB:
Catholic Health Initiatives, Series A, 5.75%, 1/01/45					18,455				19,123,625
MultiCare Health System, Series B (AGC), 6.00%, 8/15/39					2,000				2,128,420
Swedish Health Services, Series A, 6.75%, 5/15/21 (b)					16,000				20,827,520
Washington Health Care Facilities Authority, Refunding RB, Catholic Health Initiatives, Series D, 6.38%, 10/01/36					10,000				11,146,700
									120,659,865
Wisconsin — 1.3%
City of Superior Wisconsin, Refunding RB, Midwest Energy Resources, Series E (NPFCG), 6.90%, 8/01/21					7,000				8,642,900
Wisconsin Health & Educational Facilities Authority, RB, Ascension Health Alliance, Series D, 5.00%, 11/15/41					45,000				44,729,550
Wisconsin Health & Educational Facilities Authority, Refunding RB, Froedtert Health, Inc., Series A, 5.00%, 4/01/42					5,000				4,852,400
									58,224,850
Total Municipal Bonds — 82.6%									3,592,111,178
Municipal Bonds Transferred to Tender Option Bond Trusts (f)
Arizona — 4.7%
City of Mesa Arizona, RB, Utility System, 5.00%, 7/01/35					30,000				31,334,100
Salt River Project Agricultural Improvement & Power District, RB, Electric System, Series A:
5.00%, 1/01/37					98,935				101,115,996
5.00%, 1/01/38					54,015				55,778,999
Salt River Project Agricultural Improvement & Power District, Refunding RB, Series A, 5.00%, 1/01/35					13,700				14,096,752
									202,325,847
Arkansas — 0.5%
University of Arkansas, RB, Various Facilities, UAMS Campus (NPFGC), 5.00%, 3/01/36					21,290				22,390,480
California — 4.3%
Anaheim Public Financing Authority, RB, Distribution System, 2nd Lien (BHAC), 5.00%, 10/01/34					10,995				11,121,935
County of Orange California, ARB, Series B, 5.25%, 7/01/34					13,045				13,840,589
County of San Diego California Water Authority, COP, Refunding, Series A (AGM), 5.00%, 5/01/33					4,500				4,722,705
Los Angeles Department of Water & Power, RB, Power System, Sub-Series A-1 (AMBAC), 5.00%, 7/01/37					27,500				28,427,575

See Notes to Financial Statements.

28

SEMI-ANNUAL REPORT

DECEMBER 31, 2013

Schedule of Investments (continued)	BlackRock National Municipal Fund (Percentages shown are based on Net Assets)

Municipal Bonds Transferred to Tender Option Bond Trusts (f)				Par (000)				Value
California (concluded)
Metropolitan Water District of Southern California, RB, Series A, 5.00%, 1/01/39				$	10,000			$	10,514,200
Metropolitan Water District of Southern California, Refunding RB:
Series B, 5.00%, 7/01/35					13,170				13,776,939
Series C, 5.00%, 7/01/35					13,375				14,025,665
San Diego Community College District California, GO, Election of 2006 (AGM), 5.00%, 8/01/32					18,000				19,171,440
San Diego Public Facilities Financing Authority, Refunding RB, Series B, 5.38%, 8/01/34					15,000				16,222,050
San Francisco City & County Public Utilities Commission, Refunding RB, Series A, 5.13%, 11/01/39					23,000				23,911,950
Sequoia Union High School District California, GO, Refunding, Election of 2004, Series B (AGM), 5.50%, 7/01/35					10,055				10,722,119
University of California, RB, General, Series O, 5.25%, 5/15/39					20,695				21,894,452
									188,351,619
Colorado — 0.0%
Colorado Health Facilities Authority, Refunding RB, Catholic Health Initiatives, Series A, 5.50%, 7/01/34 (g)					1,580				1,712,048
Florida — 3.9%
City of Tallahassee Florida, RB, Energy System (NPFGC), 5.00%, 10/01/37					10,000				10,054,700
County of Orange Florida School Board, COP, Series A (NPFGC), 5.00%, 8/01/30					2,000				2,077,860
Florida State Turnpike Authority, RB, Department of Transportation, Series B, 5.00%, 7/01/40					35,720				37,725,678
Jacksonville Electric Authority Florida, RB, Sub-Series A, 5.63%, 10/01/32					6,300				6,852,258
State of Florida, GO, Board of Education:
Capital Outlay, Series E, 5.00%, 6/01/37					39,730				42,937,800
Series C, 5.00%, 6/01/37					65,545				69,862,109
									169,510,405
Illinois — 0.5%
City of Chicago Illinois, Refunding RB, Waterworks, Second Lien (AGM), 5.25%, 11/01/33					5,000				5,093,550
Illinois Finance Authority, RB, The Carle Foundation, Series A (AGM), 6.00%, 8/15/41					15,600				16,577,652
									21,671,202
Indiana — 2.3%
Indiana Finance Authority, RB, Sisters of St. Francis Health, 5.25%, 11/01/39					31,460				31,803,858
Indianapolis Local Public Improvement Bond Bank, RB, PILOT, Infrastructure Project, Series F (AGM):
5.00%, 1/01/35					23,550				24,820,993
5.00%, 1/01/40					7,000				7,313,180
Indianapolis Local Public Improvement Bond Bank, Refunding RB, Waterworks Project, Series A (AGC), 5.50%, 1/01/38					34,125				35,699,758
									99,637,789
Louisiana — 0.3%
State of Louisiana, RB, Series A (AGM), 5.00%, 5/01/31					11,950				12,530,531
Massachusetts — 0.7%
Massachusetts School Building Authority, RB:
Senior Dedicated Sales Tax, Series B, 5.00%, 10/15/41					20,000				20,742,800
Series A (AMBAC), 5.00%, 8/15/37					10,000				10,294,600
									31,037,400
Municipal Bonds Transferred to Tender Option Bond Trusts (f)				Par (000)				Value
Nebraska — 0.2%
Omaha Public Power District, RB, Series A, 5.00%, 2/01/43				$	10,000			$	10,263,700
New York — 0.1%
New York State Dormitory Authority, ERB, Series B, 5.75%, 3/15/36					2,020				2,260,966
Ohio — 0.5%
County of Hamilton Ohio, Refunding RB, Sub-Series A (AGM), 5.00%, 12/01/32					20,000				20,644,000
State of Ohio, RB, Cleveland Clinic Health Obligated Group, Series B, 5.50%, 1/01/34					1,000				1,054,850
									21,698,850
Texas — 2.7%
City of Houston Texas, Refunding RB, Combined, 1st Lien, Series A (AGC), 5.38%, 11/15/38					26,160				27,700,563
City of San Antonio Texas, Refunding RB, Electric and Gas Revenue:
5.00%, 2/01/17 (b)					218				231,035
5.00%, 2/01/32					28,772				30,444,153
County of Harris Texas Cultural Education Facilities Finance Corp., RB, Texas Children’s Hospital Project, 5.50%, 10/01/39					8,500				9,214,680
County of Harris Texas Flood Control District, Refunding RB, Contract Tax, Series A, 5.00%, 10/01/39					10,000				10,444,600
Cypress-Fairbanks ISD, GO, Refunding, Schoolhouse (PSF-GTD), 5.00%, 2/15/32					10,000				10,656,200
Dallas Area Rapid Transit, Refunding RB, Senior Lien (AMBAC), 5.00%, 12/01/36					27,860				28,550,056
									117,241,287
Utah — 0.7%
County of Utah Utah, RB, IHC Health Services Inc., 5.00%, 5/15/43					30,000				30,441,600
Washington — 0.6%
Central Puget Sound Regional Transit Authority, RB, Series A:
5.00%, 11/01/34					8,500				8,870,515
5.00%, 11/01/36					15,715				16,257,882
									25,128,397
Total Municipal Bonds Transferred to Tender Option Bond Trusts — 22.0%									956,202,121
US Government Sponsored Agency Securities
Mortgage-Backed Securities — 0.0%
Ginnie Mae Mortgage-Backed Securities, 6.00%, 11/15/31					—	(h)			190
Investment Companies — 0.1%					Shares
iShares S&P National Municipal Bond Fund (i)					46,296				4,802,747
Total Long-Term Investments (Cost — $4,414,953,102) — 104.7%									4,553,116,236

Short-Term Securities				Par (000)
Florida — 2.1%
Broward County Florida School Board, COP, VDRN, Series D (JPMorgan Chase Bank SBPA), 0.35%, 7/01/29 (k)				$	90,000				90,000,000

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

DECEMBER 31, 2013

29

Schedule of Investments (concluded)	BlackRock National Municipal Fund (Percentages shown are based on Net Assets)

Short Term Securities				Par (000)				Value
New Jersey — 1.2%
State of New Jersey, Refunding RB, Series C, 2.00%, 6/26/14				$	50,000			$	50,398,361
Tennessee — 0.4%
Shelby County Health Educational & Housing Facilities Board, Refunding RB, VRDN Methodist Le Bonheur Healthcare (US Bank NA SBPA), (k):
Series A, 0.13%, 6/01/42					14,600				14,600,000
Series B, 0.13%, 6/01/42					4,200				4,200,000
									18,800,000

Short Term Securities				Shares				Value
Money Market Funds — 0.0%
FFI Institutional Tax-Exempt Fund, 0.03% (i)(j)					153,447			$	153,447
Total Short-Term Securities (Cost — $159,351,808) — 3.7%									159,351,808
Total Investments (Cost — $4,574,304,910) — 108.4%								$	4,712,468,044
Other Assets Less Liabilities — 2.1%									93,791,848
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (10.5%)									(458,407,885	)
Net Assets — 100.0%								$	4,347,852,007

Notes to Schedule of Investments

(a)				Variable rate security. Rate shown is as of report date.
(b)				US government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par.
(c)				Non-income producing security.
(d)				Issuer filed for bankruptcy and/or is in default of principal and/or interest payments.
(e)				Security is collateralized by municipal or US Treasury obligations.
(f)				Represent bonds transferred to a TOB. In exchange the Fund acquired residual interest certificates. These bonds serve as collateral in a financing transaction. See Note 3 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs.
(g)				All or a portion of security is subject to a recourse agreement, which may require the Fund to pay the liquidity provider in the event there is a shortfall between the TOB trust certificates and proceeds received from the sale of the security contributed to the TOB trust. In the case of a shortfall, the aggregate maximum potential amount the Fund could ultimately be required to pay under the agreements, which expire July 1, 2017 is $834,256.
(h)				Amount is less than $500.
(i)				Investments in issuers considered to be an affiliate of the Fund during the six months ended December 31, 2013, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

---

Affiliate		Shares Held at June 30, 2013		Net Activity		Shares Held at December 31, 2013		Value at December 31, 2013			Income
FFI Institutional Tax-Exempt Fund		109,118,875		(108,965,428	)	153,447		$	153,447		$7,345
iShares S&P National Municipal Bond Fund		46,296		—		46,296			4,802,747		—

(j)				Represents the current yield as of report date.
(k)				Variable rate security. Rate shown is as of report date and maturity shown is the date the principal owed can be recovered through demand.
•				Fair Value Measurements — Various inputs are used in determining the fair value of investments. These inputs to valuation techniques are categorized into a disclosure 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 the Fund 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 the Fund’s own assumptions used in determining the fair value of investments)

				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.
				Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Fund’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments is based on the pricing transparency of the investment and is not necessarily an indication of the risks associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments, please refer to Note 2 of the Notes to Financial Statements.
				The following table summarizes the Fund’s investments categorized in the disclosure hierarchy as of December 31, 2013:

---

				Level 1				Level 2				Level 3				Total
Assets:
Investments:
Long-Term Investments 1				$	4,802,747			$	4,548,313,489				—			$	4,553,116,236
Short-Term Securities					153,447				159,198,361				—				159,351,808
Total				$	4,956,194			$	4,707,511,850				—			$	4,712,468,044

1

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

				Certain of the Fund’s liabilities are held at carrying amount, which approximates fair value for financial statement purposes. As of December 31, 2013 TOB Trust Certificates of $(458,259,484) is categorized as Level 2 within the disclosure hierarchy.
				There were no transfers between levels during the six months ended December 31, 2013.

See Notes to Financial Statements.

30

SEMI-ANNUAL REPORT

DECEMBER 31, 2013

Schedule of Investments  December 31, 2013 (Unaudited)	BlackRock Short-Term Municipal Fund (Percentages shown are based on Net Assets)

Municipal Bonds				Par (000)				Value
Alabama — 0.9%
Alabama 21st Century Authority, Refunding RB, Series A, 4.00%, 6/01/15				$	2,000			$	2,095,820
Alabama Federal Aid Highway Finance Authority, RB, Grant Appreciation, 5.00%, 9/01/16					5,130				5,709,280
									7,805,100
Alaska — 0.2%
Alaska Student Loan Corp., RB, Senior Series A, AMT, 5.00%, 6/01/16					2,000				2,126,780
Arizona — 0.7%
Phoenix Civic Improvement Corp., Refunding RB:
Junior Lien Water System, 4.00%, 7/01/14					5,000				5,096,200
Transit Excise Tax, Light Rail Project, 5.00%, 7/01/16					1,000				1,110,600
									6,206,800
California — 12.3%
California Pollution Control Financing Authority, RB, Waste Management Inc. Project Mandatory Put Bonds, AMT (a):
Series A, 0.85%, 11/01/38					4,000				3,997,200
Series A-1, 1.88%, 4/01/25					5,000				5,023,100
California Pollution Control Financing Authority, Refunding RB, USA Waste Services, Inc. Project, Series A, Mandatory Put Bonds, AMT, 2.63%, 6/01/18 (a)					3,000				3,020,400
California State Department of Water Resources, Refunding RB, Series M, 5.00%, 5/01/14					35,000				35,566,650
California Statewide Communities Development Authority, RB, Kaiser Permanente, Series A, 5.00%, 4/01/14					1,000				1,012,100
City of Long Beach California, Refunding RB, Series B, AMT (NPFGC), 5.50%, 5/15/14					5,215				5,318,153
East Bay Municipal Utility District, Refunding RB, Wastewater System, 0.38%, 6/01/38 (a)					1,500				1,493,025
Los Angeles Unified School District, GO, Refunding, Series A-1, 5.00%, 7/01/15					6,000				6,431,160
State of California, GO, Economic Recovery Bonds, Series A (NPFGC), 5.00%, 7/01/15					3,805				3,897,690
State of California, GO, Refunding:
(NPFGC), 5.00%, 9/01/16					1,380				1,546,097
Various Purpose, 5.00%, 4/01/15					10,360				10,980,460
Various Purpose, 4.00%, 11/01/15					3,430				3,663,994
Various Purpose, 5.00%, 4/01/16					10,000				11,030,500
Various Purpose, 5.00%, 9/01/16					3,000				3,361,080
Various Purpose, 5.00%, 2/01/17					10,000				11,298,200
State of California, GO, Various Purpose, 5.00%, 10/01/14					2,565				2,657,699
									110,297,508
Colorado — 0.1%
Colorado Health Facilities Authority, Refunding RB, Catholic Health Initiatives, Series C, 4.00%, 10/01/40 (a)					1,000				1,063,420
Connecticut — 2.9%
Connecticut Resources Recovery Authority, Refunding RB, Covanta Southeastern Connecticut Co. Project, Series A, AMT, 4.00%, 11/15/15					2,635				2,810,728
Connecticut State Development Authority, RB, Connecticut Light & Power Co., Series A, Mandatory Put Bonds, AMT, 1.55%, 5/01/31 (a)					13,200				13,351,008
State of Connecticut, GO, Series A, 2.00%, 10/15/15					6,695				6,898,126
Municipal Bonds				Par (000)				Value
Connecticut (concluded)
State of Connecticut, RB, Special Tax Bonds, Transportation Infrastructure, Series A, 5.00%, 11/01/14				$	2,700			$	2,808,540
									25,868,402
Delaware — 1.3%
Delaware Transportation Authority, Refunding RB, Senior, 5.00%, 7/01/15					1,945				2,082,628
University of Delaware, Refunding RB, Series C, 0.70%, 11/01/37 (a)					10,000				9,990,800
									12,073,428
Florida — 5.7%
Citizens Property Insurance Corp., RB, Senior Secured Series A-1:
Coastal Account, 5.00%, 6/01/15					7,745				8,226,274
Personal Lines & Commercial Lines Account, 5.00%, 6/01/16					10,000				10,980,000
City of Jacksonville Florida, Refunding RB, Series C, 5.00%, 10/01/16					1,280				1,430,182
County of Broward Florida Airport System, ARB, Series Q-1, 5.00%, 10/01/15					1,000				1,079,300
County of Miami-Dade Florida, Refunding ARB, Series A, AMT:
4.00%, 10/01/14					2,500				2,569,800
4.00%, 10/01/15					2,750				2,907,520
5.00%, 10/01/16					1,750				1,938,353
Florida State Board of Education, GO, Refunding, Series A, 5.00%, 1/01/15					7,395				7,748,629
Florida State Department of Environmental Protection, Refunding RB, Series A:
Everglades Restoration (AGC), 5.00%, 7/01/16					1,205				1,334,453
Florida Forever, 5.00%, 7/01/14					5,000				5,119,900
Greater Orlando Aviation Authority, Refunding RB, Airport Facilities, Series A, AMT (AGM), 5.00%, 10/01/14					2,500				2,590,450
Highlands County Health Facilities Authority, Refunding RB, Adventist Health System/Sunbelt Obligated Group, Series I, 5.00%, 11/15/16					1,035				1,159,355
State of Florida, GO, Refunding, Department of Transportation, Full Faith and Credit, Right-of-Way Acquisition and Bridge Construction, Series B, 5.00%, 7/01/16					3,375				3,750,975
									50,835,191
Hawaii — 0.7%
State of Hawaii, GO, Refunding, Series DG (AMBAC), 5.00%, 7/01/16					1,290				1,380,545
State of Hawaii, Refunding RB, Airport System, AMT, 5.00%, 7/01/14					5,000				5,118,100
									6,498,645
Idaho — 1.0%
Idaho Housing & Finance Association, RB, Unemployment Compensation, 5.00%, 8/15/14					8,585				8,840,575
Illinois — 1.5%
City of Chicago Illinois, Refunding GARB, O’Hare International Airport, Senior Lien, Series A, AMT:
5.00%, 1/01/16					3,000				3,253,890
5.00%, 1/01/16					4,500				4,880,835
Illinois Finance Authority, Refunding RB, Hospital Sisters Services, Inc., Series C:
3.00%, 8/15/14					1,340				1,362,070
5.00%, 8/15/15					1,000				1,071,430

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

DECEMBER 31, 2013

31

Schedule of Investments (continued)	BlackRock Short-Term Municipal Fund (Percentages shown are based on Net Assets)

Municipal Bonds				Par (000)				Value
Illinois (concluded)
State of Illinois, RB, Unemployment Insurance Fund Building Receipts, Series A, 5.00%, 6/15/16				$	2,500			$	2,768,125
									13,336,350
Indiana — 1.1%
City of Whiting Indiana, RB, BP Products North America, Inc., Mandatory Put Bonds, 2.80%, 6/01/44 (a)					3,325				3,355,524
Indiana Finance Authority, RB, Water Utilities, Citizens Energy Group Project, Second Lien, Series B, 3.00%, 10/01/14					5,000				5,098,750
Indiana Finance Authority, Refunding RB, Marquette Project, 5.00%, 3/01/16					1,425				1,493,685
									9,947,959
Iowa — 0.5%
Iowa Student Loan Liquidity Corp., Refunding RB, Senior Series A-1, AMT, 3.10%, 12/01/14					4,135				4,167,708
Kentucky — 1.1%
County of Louisville & Jefferson Kentucky Metropolitan Government, GO, Refunding Series E, 4.00%, 11/15/16					4,450				4,886,545
Kentucky Public Transportation Infrastructure Authority, RB, Downtown Crossing Project, Series A, 5.00%, 7/01/17					4,500				4,967,010
									9,853,555
Louisiana — 1.7%
State of Louisiana, GO, Refunding, Series A (NPFGC), 5.00%, 8/01/14					12,000				12,339,000
Tobacco Settlement Financing Corp., Refunding RB, Series A, 5.00%, 5/15/16					3,000				3,264,690
									15,603,690
Maryland — 2.2%
Maryland State Transportation Authority, Refunding RB, Baltimore/Washington Thurgood Marshall Airport Project:
4.00%, 3/01/14					3,170				3,190,003
AMT, 4.00%, 3/01/14					7,675				7,723,045
AMT, 5.00%, 3/01/16					8,315				9,079,315
									19,992,363
Massachusetts — 1.3%
City of Boston Massachusetts, GO, Refunding, Series B, 4.00%, 2/01/15					6,580				6,850,569
Commonwealth of Massachusetts, GO, Consolidated Loan, Series B, 5.00%, 8/01/15					2,500				2,687,850
Massachusetts Port Authority, RB, Series A, AMT, 5.00%, 7/01/16					1,625				1,795,739
									11,334,158
Michigan — 3.7%
Michigan Finance Authority, Refunding RB, Unemployment Obligation Assessment, Series A:
5.00%, 1/01/14					1,000				1,000,000
5.00%, 7/01/15					7,000				7,494,200
5.00%, 1/01/16					13,525				14,754,557
State of Michigan Trunk Line, Refunding RB, Series B (AGM), 5.00%, 9/01/15					7,825				8,419,935
Utica Community Schools, GO, Refunding, School Building & Site (Q-SBLF), 3.00%, 5/01/14					1,380				1,392,434
									33,061,126
Minnesota — 0.7%
State of Minnesota, GO, Refunding, Various Purpose, Series D, 5.00%, 8/01/14					6,000				6,169,500
Municipal Bonds				Par (000)				Value
Nebraska — 0.1%
Nebraska Public Power District, Refunding RB, General, Series A, 5.00%, 1/01/16				$	1,000			$	1,090,070
Nevada — 4.7%
County of Clark Nevada, Refunding RB, Motor Vehicle Fuel Tax, 5.00%, 7/01/15					8,000				8,556,080
County of Clark Nevada School District, GO, Limited Tax, Series A, 5.00%, 6/15/16					11,000				12,176,890
State of Nevada, Refunding RB:
5.00%, 12/01/16					5,000				5,633,800
5.00%, 6/01/17					14,000				15,967,560
									42,334,330
New Hampshire — 0.2%
State of New Hampshire, RB, Federal Highway, GAN, 5.00%, 9/01/16					1,250				1,394,788
New Jersey — 9.5%
County of Ocean New Jersey, GO, Refunding, 5.00%, 8/01/16					1,235				1,378,075
New Jersey Building Authority, Refunding RB, Series A, 5.00%, 6/15/15					13,880				14,813,152
New Jersey EDA, RB, School Facilities Construction Notes, Series G (SIFMA Index Notes), 0.64%, 2/01/15 (a)					3,000				3,002,070
New Jersey EDA, Refunding RB:
Cigarette Tax, 5.00%, 6/15/14					4,000				4,076,280
School Facilities Construction, Series EE, 5.00%, 9/01/15					1,650				1,777,182
Series DD-1, 5.00%, 12/15/16					5,075				5,707,396
New Jersey Health Care Facilities Financing Authority, Refunding RB:
Barnabas Health, Series A, 5.00%, 7/01/14					7,250				7,397,247
Barnabas Health, Series A, 5.00%, 7/01/16					1,000				1,086,850
Meridian Health System, 5.00%, 7/01/14					2,000				2,044,580
New Jersey Housing & Mortgage Finance Agency, Refunding RB, M/F Housing, Series 4, AMT, 0.90%, 5/01/15					9,500				9,502,090
New Jersey State Turnpike Authority, Refunding RB, Series C, 0.54%, 1/01/17 (a)					8,000				7,976,480
New Jersey Transportation Trust Fund Authority, RB:
Series B, 5.00%, 6/15/15					1,825				1,948,790
Transportation System, 5.75%, 6/15/16					6,275				7,052,661
New Jersey Transportation Trust Fund Authority, Refunding RB, Transportation System, Series A, 5.00%, 12/15/15					1,640				1,785,780
State of New Jersey, GO, Refunding, Series O, 5.00%, 8/01/16					2,300				2,561,004
State of New Jersey, GO, Tax-Exempt, Various Purposes, 5.00%, 6/01/16					12,075				13,367,266
									85,476,903
New Mexico — 0.3%
County of Albuquerque Bernalillo New Mexico Water Utility Authority, Refunding RB, Series B:
5.00%, 7/01/15					1,500				1,605,675
5.00%, 7/01/16					1,000				1,110,600
									2,716,275
New York — 17.8%
City of New York New York, GO, Refunding:
Series E, 5.00%, 8/01/15					24,920				26,762,335
Series F, 5.00%, 8/01/15					6,000				6,443,580
City of New York New York, GO, Sub-Series D-1, 5.00%, 8/01/15					15,165				16,286,148
Metropolitan Transportation Authority, RB, Series B, 5.00%, 11/15/14					1,000				1,041,720

See Notes to Financial Statements.

32

SEMI-ANNUAL REPORT

DECEMBER 31, 2013

Schedule of Investments (continued)	BlackRock Short-Term Municipal Fund (Percentages shown are based on Net Assets)

Municipal Bonds				Par (000)				Value
New York (concluded)
Metropolitan Transportation Authority, Refunding RB:
Series A (AMBAC), 5.50%, 11/15/14				$	1,000			$	1,046,070
Series D, 4.00%, 11/15/15					1,400				1,493,842
New York City Transitional Finance Authority, RB, Future Tax Secured:
Sub-Series A, 5.00%, 8/01/16					4,880				5,442,469
Sub-Series C-1, 5.00%, 11/01/15					4,860				5,280,682
Sub-Series F-1, 5.00%, 5/01/15					2,000				2,128,240
Sub-Series I, 2.00%, 5/01/15					11,870				12,157,017
New York City Transitional Finance Authority, Refunding RB, Future Tax Secured, Sub-Series A, 5.00%, 11/01/15					5,455				5,927,185
New York State Dormitory Authority, RB:
General Purpose, Series A, 5.00%, 3/15/15					5,560				5,885,204
Series A, 4.00%, 3/15/17					4,000				4,422,160
Series B, 5.00%, 3/15/17					3,600				4,086,540
New York State Dormitory Authority, Refunding RB, NYU Hospital Center, Series A:
5.00%, 7/01/14					1,945				1,991,836
5.00%, 7/01/15					1,500				1,605,435
5.00%, 7/01/16					1,000				1,103,230
New York State HFA, RB, Affordable Housing, Series F (SONYMA), 0.75%, 5/01/15					2,000				2,004,340
New York State Local Government Assistance Corp., Refunding RB, Sub-Lien, Series A, 5.00%, 4/01/15					7,000				7,425,670
New York State Thruway Authority, RB, Second General Highway & Bridge Trust Fund Bonds, Series B, 5.00%, 4/01/15					2,150				2,277,925
New York State Thruway Authority, Refunding RB, General, Series I, 5.00%, 1/01/16					500				544,405
New York State Urban Development Corp., RB, Personal Income Tax, Series C, 5.00%, 3/15/17					6,470				7,344,420
New York State Urban Development Corp., Refunding RB, Personal Income Tax, Series D, 5.00%, 3/15/15					7,335				7,764,024
Port Authority of New York & New Jersey, RB, Consolidated, 169th Series, AMT, 5.00%, 10/15/15					2,680				2,895,311
Port Authority of New York & New Jersey, Refunding RB, Consolidated, 177th Series, AMT, 4.00%, 7/15/15					10,000				10,547,200
State of New York, GO, Refunding, Series C:
5.00%, 4/15/15					7,000				7,442,050
5.00%, 4/15/16					7,675				8,492,311
									159,841,349
North Carolina — 1.9%
North Carolina Capital Facilities Finance Agency, Refunding RB, High Point University, 4.00%, 5/01/16					1,770				1,869,385
North Carolina Medical Care Commission, Refunding RB, Healthcare Facilities Revenue, WakeMed, Series A, 4.00%, 10/01/15					730				774,318
North Carolina Municipal Power Agency No. 1, Refunding RB, Catawba Electric, Series A:
5.00%, 1/01/16					3,500				3,804,955
5.25%, 1/01/17					5,000				5,639,150
State of North Carolina, Refunding RB, Series B, 4.00%, 11/01/14					4,905				5,061,519
									17,149,327
Ohio — 0.3%
City of Cleveland Ohio, Public Power System, Refunding RB, 5.00%, 11/15/15					2,335				2,531,350
Municipal Bonds				Par (000)				Value
Oklahoma — 1.3%
County of Cleveland Oklahoma Educational Facilities Authority, LRB, Moore Public Schools Project:
5.00%, 6/01/15				$	2,050			$	2,177,387
5.00%, 6/01/16					845				926,779
Oklahoma Turnpike Authority, Refunding RB, Second Senior Series A, 5.00%, 1/01/15					7,875				8,251,583
									11,355,749
Oregon — 0.6%
City of Portland Oregon, Refunding RB, Second Lien, Series A, 5.00%, 3/01/14					4,950				4,990,046
Pennsylvania — 6.1%
City of Philadelphia Pennsylvania, Refunding ARB, Series A, AMT, 5.00%, 6/15/15					2,550				2,702,133
Commonwealth of Pennsylvania, GO:
1st Series, 5.00%, 6/01/15					7,980				8,513,543
2nd Series, 5.00%, 10/15/17					8,500				9,804,240
Commonwealth of Pennsylvania, GO, Refunding, 1st Series (NPFGC), 5.00%, 2/01/15					7,605				7,635,648
Pennsylvania Economic Development Financing Authority, RB, Waste Management, Inc. Project, 1.75%, 12/01/33 (a)					4,500				4,522,005
Pennsylvania Economic Development Financing Authority, Refunding RB, Series A:
5.00%, 7/01/15					10,000				10,710,700
5.00%, 1/01/16					6,000				6,551,760
Pennsylvania IDA, Refunding RB, Economic Development, 5.00%, 7/01/15					2,500				2,671,425
State Public School Building Authority, RB, School District of Philadelphia Project, 5.00%, 4/01/15					1,710				1,806,205
									54,917,659
South Carolina — 0.9%
South Carolina Transportation Infrastructure Bank, Refunding RB (AMBAC):
Series A, 5.00%, 10/01/15					5,440				5,880,368
Series B, 5.25%, 10/01/14					2,000				2,075,500
									7,955,868
Tennessee — 0.5%
Metropolitan Government of Nashville & Davidson County Tennessee, Refunding RB, (NPFGC), 5.00%, 1/01/14					4,110				4,110,000
Texas — 4.6%
City of Corpus Christi Texas Utility System, Refunding RB, 4.00%, 7/15/17					2,000				2,203,860
City of Dallas Texas ISD, GO, Refunding, (PSF-GTD), 4.00%, 2/15/15					2,200				2,293,610
City of Houston Texas, Refunding ARB, Subordinate Lien:
Series A, AMT, 5.00%, 7/01/14					4,000				4,096,520
Series B, 5.00%, 7/01/14					1,500				1,535,655
County of Comal Texas ISD, GO, Refunding, Unlimited Tax, Series A (PSF-GTD), 4.00%, 2/01/16					1,500				1,611,360
County of Harris Texas, Refunding RB, Toll Road, Senior Lien, Series B-1 (NPFGC), 5.00%, 8/15/14					1,295				1,333,669
County of Harris Texas Cultural Education Facilities Finance Corp., Refunding RB:
Memorial Hermann Health System, Series A, 4.00%, 12/01/16					525				573,279
Methodist Hospital System, Series B, 5.25%, 12/01/14					2,600				2,716,350
Lower Colorado River Authority, Refunding RB:
5.00%, 5/15/14 (b)					15				15,270

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

DECEMBER 31, 2013

33

Schedule of Investments (continued)	BlackRock Short-Term Municipal Fund (Percentages shown are based on Net Assets)

Municipal Bonds				Par (000)				Value
Texas (concluded)
Lower Colorado River Authority, Refunding RB (concluded):
5.00%, 5/15/14 (b)				$	50			$	50,902
5.00%, 5/15/14					4,935				5,023,336
5.00%, 5/15/16					2,490				2,746,918
Series A, 5.00%, 5/15/14					3,590				3,654,261
Northside Texas ISD, GO, Refunding, 5.00%, 2/15/17					6,910				7,816,246
Texas A&M University System Board of Regents, Refunding RB, 5.00%, 7/01/16					5,005				5,570,515
									41,241,751
Virginia — 3.0%
County of Chesterfield Virginia, GO, Refunding, Series B, 5.00%, 1/01/15					2,810				2,944,964
Virginia College Building Authority, RB, 21st Century College & Equipment Programs, Series A:
5.00%, 2/01/15					6,210				6,530,188
5.00%, 2/01/16					11,910				13,035,733
Virginia Public School Authority, RB, Series I, 5.00%, 4/15/15					3,970				4,212,488
									26,723,373
Washington — 3.5%
City of Seattle Washington, Refunding RB, Improvement, Series B, 5.00%, 2/01/14					10,000				10,040,500
Municipal Bonds				Par (000)				Value
Washington (concluded)
County of King Washington, GO, (FGIC) (c):
5.00%, 1/01/15				$	14,565			$	15,261,498
5.00%, 1/01/15					5,435				5,694,902
									30,996,900
Wisconsin — 1.5%
State of Wisconsin, GO, Refunding, Series 1 (NPFGC), 5.00%, 5/01/16					2,500				2,649,625
State of Wisconsin, Refunding RB, Series 1, 5.00%, 7/01/16					10,000				11,092,801
									13,742,426
Total Long-Term Investments (Cost — $859,329,504) — 96.4%									863,650,422
Short-Term Securities
Illinois — 1.8%
Regional Transit Authority, GO, Refunding, ERS, VDRN, Series B, 0.55%, 7/01/14 (d)					16,300				16,300,000
					Shares
Money Market Funds — 0.3%
FFI Institutional Tax-Exempt Fund, 0.03% (e)(f)					2,513,861				2,513,861
Total Short-Term Securities (Cost — $18,813,861) — 2.1%									18,813,861
Total Investments (Cost — $878,143,365) — 98.5%									882,464,283
Other Assets Less Liabilities — 1.5%									13,748,306
Net Assets — 100.0%								$	896,212,589

Notes to Schedule of Investments

(a)				Variable rate security. Rate shown is as of report date.
(b)				Security is collateralized by municipal or US Treasury obligations.
(c)				US government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par.
(d)				Variable rate security. Rate shown is as of report date and maturity shown is the date the principal owed can be recovered through demand.
(e)				Investments in issuers considered to be an affiliate of the Fund during the six months ended December 31, 2013, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

---

Affiliate				Shares Held at June 30, 2013				Net Activity				Shares Held at December 31, 2013				Income
FFI Institutional Tax-Exempt Fund				3,026,240				(512,379)				2,513,861				$3,255

(f)				Represents the current yield as of report date.
•				Fair Value Measurements — Various inputs are used in determining the fair value of investments. These inputs to valuation techniques are categorized into a disclosure 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 the Fund 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 the Fund’s own assumptions used in determining the fair value of investments)

				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.
				Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Fund’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments is based on the pricing transparency of the investment and is not necessarily an indication of the risks associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments, please refer to Note 2 of the Notes to Financial Statements.

See Notes to Financial Statements.

34

SEMI-ANNUAL REPORT

DECEMBER 31, 2013

Schedule of Investments (concluded)	BlackRock Short-Term Municipal Fund

The following table summarizes the Fund’s investments categorized in the disclosure hierarchy as of December 31, 2013:

---

				Level 1				Level 2				Level 3				Total
Assets:
Investments:
Long-Term Investments 1					—			$	863,650,422				—			$	863,650,422
Short-Term Securities				$	2,513,861				16,300,000				—				18,813,861
Total				$	2,513,861			$	879,950,422				—			$	882,464,283

1

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

There were no transfers between levels during the six months ended December 31, 2013.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

DECEMBER 31, 2013

35

Schedule of Investments  December 31, 2013 (Unaudited)	BlackRock New York Municipal Bond Fund (Percentages shown are based on Net Assets)

Municipal Bonds				Par (000)				Value
New York — 90.7%
Corporate — 7.3%
City of New York New York Industrial Development Agency, ARB, AMT:
American Airlines, Inc., JFK International Airport, 7.75%, 8/01/31 (a)				$	2,000			$	2,153,920
British Airways PLC Project, 5.25%, 12/01/32					1,000				890,910
City of New York New York Industrial Development Agency, Refunding RB, AMT:
Terminal One Group Association Project, 5.50%, 1/01/24 (a)					2,500				2,679,375
Transportation Infrastructure Properties LLC, Series A, 5.00%, 7/01/28					1,520				1,434,576
County of Chautauqua New York Industrial Development Agency, RB, NRG Dunkirk Power Project, 5.88%, 4/01/42					750				755,092
County of Essex New York Industrial Development Agency, RB, International Paper Co. Project, Series A, AMT, 6.63%, 9/01/32					350				381,119
County of Jefferson New York Industrial Development Agency, Refunding RB, Solid Waste Disposal, International Paper Co. Project, Series A, AMT, 5.20%, 12/01/20					250				250,010
County of Suffolk New York Industrial Development Agency, RB, KeySpan Generation LLC, Port Jefferson, AMT, 5.25%, 6/01/27					1,000				1,007,470
New York Liberty Development Corp., RB, Goldman Sachs Headquarters:
5.25%, 10/01/35					5,000				5,177,700
5.50%, 10/01/37					780				825,942
Niagara Area Development Corp., Refunding RB, Solid Waste Disposal Facility, Covanta Energy Project, Series A, AMT, 5.25%, 11/01/42					1,400				1,207,542
									16,763,656
County/City/Special District/School District — 22.7%
Buffalo & County of Erie New York Industrial Land Development Corp., Refunding RB, Buffalo State College Foundation Housing Corp. Project, Series A, 5.38%, 10/01/41					620				639,263
City of New York New York, GO, Refunding, Series E, 5.50%, 8/01/25					1,280				1,481,971
City of New York New York, GO:
Series A-1, 5.00%, 8/01/35					400				412,716
Sub-Series A-1, 5.00%, 10/01/34					600				623,664
Sub-Series D-1, 5.00%, 8/01/31					690				731,483
Sub-Series G-1, 5.00%, 4/01/29					750				800,587
Sub-Series I-1, 5.38%, 4/01/36					2,650				2,910,495
City of New York New York Convention Center Development Corp., RB, Hotel Unit Fee Secured (AMBAC):
5.00%, 11/15/35					3,200				3,215,136
5.00%, 11/15/44					1,500				1,492,890
City of New York New York Housing Development Corp., RB, Fund Grant Program, New York City Housing Authority Program, Series B1:
5.25%, 7/01/32					915				960,357
5.00%, 7/01/33					400				409,420
City of New York New York Industrial Development Agency, RB, PILOT:
CAB, Yankee Stadium Project, Series A (AGC), 0.00%, 3/01/42 (b)					5,000				968,200
CAB, Yankee Stadium Project, Series A (AGC), 0.00%, 3/01/45 (b)					1,500				236,655
Queens Baseball Stadium (AMBAC), 5.00%, 1/01/39					2,600				2,244,476
Queens Baseball Stadium (AGC), 6.50%, 1/01/46					700				755,888
Yankee Stadium Project (NPFGC), 4.75%, 3/01/46					670				639,053
Municipal Bonds				Par (000)				Value
New York (continued)
County/City/Special District/School District (concluded)
City of New York New York Transitional Finance Authority, BARB, Fiscal 2009, Series S-1, 5.63%, 7/15/38				$	200			$	221,254
City of Syracuse New York, GO, Airport Terminal Security & Access, Series A, AMT (AGM), 4.75%, 11/01/31					500				497,590
Hudson Yards Infrastructure Corp., RB, Series A:
5.00%, 2/15/47					5,970				5,888,211
5.75%, 2/15/47					100				106,190
(AGC) (FSA), 5.00%, 2/15/47					1,000				1,003,220
(AGM), 5.00%, 2/15/47					1,050				1,053,381
(NPFGC), 4.50%, 2/15/47					3,065				2,828,075
New York Liberty Development Corp., Refunding RB, Liberty:
2nd Priority, Bank of America Tower at One Bryant Park Project, Class 2, 5.63%, 7/15/47					9,305				9,782,719
2nd Priority, Bank of America Tower at One Bryant Park Project, Class 3, 6.38%, 7/15/49					1,200				1,261,788
4 World Trade Center Project, 5.00%, 11/15/31					860				893,979
4 World Trade Center Project, 5.00%, 11/15/44					830				822,215
4 World Trade Center Project, 5.75%, 11/15/51					1,340				1,410,886
7 World Trade Center Project, Class 1, 4.00%, 9/15/35					425				406,525
7 World Trade Center Project, Class 2, 5.00%, 9/15/43					5,085				5,053,473
7 World Trade Center Project, Class 3, 5.00%, 3/15/44					1,720				1,630,182
North Country Development Authority, Refunding RB, (AGM), 6.00%, 5/15/15					335				347,110
State of New York Dormitory Authority, RB, State University Dormitory Facilities, Series A, 5.25%, 7/01/29					5				5,354
									51,734,406
Education — 16.4%
Amherst Development Corp., Refunding RB, University at Buffalo Foundation Faculty-Student Housing Corp., Series A (AGM), 4.63%, 10/01/40					305				300,831
Build NYC Resource Corp., RB, Series A:
Bronx Charter School For Excellence Project, 5.50%, 4/01/43					890				840,587
South Bronx Charter School for International Cultures and the Arts Project, 5.00%, 4/15/43					1,000				822,520
City of New York New York Trust for Cultural Resources, RB, Juilliard School, Series A, 5.00%, 1/01/39					500				518,925
City of New York New York Trust for Cultural Resources, Refunding RB, Carnegie Hall, Series A:
4.75%, 12/01/39					1,550				1,536,251
5.00%, 12/01/39					1,325				1,342,543
City of Troy New York Capital Resource Corp., Refunding RB, Rensselaer Polytechnic Institute Project, Series A, 5.13%, 9/01/40					6,000				6,045,060
City of Yonkers New York Industrial Development Agency, RB, Sarah Lawrence College Project, Series A, 6.00%, 6/01/41					1,000				1,048,820
County of Madison New York Industrial Development Agency New York, RB, Commons II LLC, Student Housing, Series A (CIFG), 5.00%, 6/01/33					400				381,152
County of Monroe New York Industrial Development Corp., Refunding RB, University of Rochester Project, Series A, 5.00%, 7/01/38					240				250,325
County of Nassau New York Industrial Development Agency, Refunding RB, New York Institute of Technology Project, Series A, 4.75%, 3/01/26					1,000				1,008,380
County of Orange New York Funding Corp., Refunding RB, Mount St. Mary College Project, Series A:
5.00%, 7/01/37					360				347,929
5.00%, 7/01/42					220				204,261

See Notes to Financial Statements.

36

SEMI-ANNUAL REPORT

DECEMBER 31, 2013

Schedule of Investments (continued)	BlackRock New York Municipal Bond Fund (Percentages shown are based on Net Assets)

Municipal Bonds				Par (000)				Value
New York (continued)
Education (concluded)
County of Schenectady New York Industrial Development Agency, Refunding RB, Union College Project, 5.00%, 7/01/31				$	1,000			$	1,037,950
County of St. Lawrence New York Industrial Development Agency, RB, Clarkson University Project, 5.38%, 9/01/41					500				509,235
County of Suffolk New York Industrial Development Agency, Refunding RB, Remarketing, New York Institute of Technology Project, 5.00%, 3/01/26					750				754,755
County of Tompkins New York Development Corp., RB, Ithaca College Project (AGM), 5.50%, 7/01/33					450				478,431
State of New York Dormitory Authority, LRB, State University Dormitory Facilities, Series A, 5.00%, 7/01/39					750				768,825
State of New York Dormitory Authority, RB:
New York University, Series 1 (AMBAC), 5.50%, 7/01/40					500				547,490
Personal Income Tax, Series G, 5.00%, 8/15/32					1,975				2,091,584
Teachers College, Series B, 5.00%, 7/01/42					450				454,343
The New School (AGM), 5.50%, 7/01/43					1,000				1,043,230
University of Rochester, Series A, 5.75%, 7/01/39 (c)					1,000				1,021,300
University of Rochester, Series B, 5.00%, 7/01/39					550				558,762
State of New York Dormitory Authority, Refunding RB:
3rd General Resolution, State University Educational Facilities Issue, Series A, 5.00%, 5/15/29					2,000				2,136,600
Brooklyn Law School, 5.75%, 7/01/33					475				490,105
Culinary Institute of America, 5.00%, 7/01/42					300				284,313
New York University, Series A, 5.00%, 7/01/42					1,000				1,031,430
Rochester Institute of Technology, 5.00%, 7/01/34					750				777,855
Rochester Institute of Technology, 5.00%, 7/01/38					310				313,853
Rochester Institute of Technology, 5.00%, 7/01/42					1,460				1,476,118
Skidmore College, Series A, 5.25%, 7/01/29					135				144,040
St. John’s University, Series A, 5.00%, 7/01/27					450				476,834
State University Dormitory Facilities, Series A, 5.25%, 7/01/30					2,095				2,267,565
State University Dormitory Facilities, Series A, 5.25%, 7/01/32					2,095				2,233,731
State University Dormitory Facilities, Series A, 5.00%, 7/01/42					895				920,588
Teachers College, 5.50%, 3/01/39					850				883,184
									37,349,705
Health — 17.8%
City of New York New York Health & Hospital Corp., Refunding RB, Health System, Series A, 5.00%, 2/15/30					1,000				1,034,560
City of New York New York Industrial Development Agency, RB:
PSCH, Inc. Project, 6.38%, 7/01/33					2,555				2,431,261
Special Needs Facilities Pooled Program, Series A-1, 6.50%, 7/01/17					485				479,811
Special Needs Facilities Pooled Program, Series C-1, 6.50%, 7/01/17					1,765				1,746,114
City of New York New York Industrial Development Agency, Refunding RB, Special Needs Facilities Pooled Program:
Series A-1 (ACA), 4.38%, 7/01/20					1,000				867,810
Series A-1 (ACA), 4.50%, 7/01/30					210				152,998
Series C-1 (ACA), 5.10%, 7/01/31					525				425,927
County of Dutchess New York Local Development Corp., Refunding RB, Health Quest System, Inc., Series A, 5.75%, 7/01/40					300				314,730
County of Erie New York Industrial Development Agency, RB, Episcopal Church Home, Series A:
5.88%, 2/01/18					245				245,338
Municipal Bonds				Par (000)				Value
New York (continued)
Health (continued)
County of Erie New York Industrial Development Agency, RB, Episcopal Church Home, Series A (concluded):
6.00%, 2/01/28				$	185			$	185,052
County of Genesee New York Industrial Development Agency, Refunding RB, United Memorial Medical Center Project:
5.00%, 12/01/27					500				468,945
5.00%, 12/01/32					1,080				959,893
County of Monroe New York Industrial Development Corp., Refunding RB:
Rochester General Hospital Project, Series B, 3.60%, 12/01/32					645				511,446
Unity Hospital of Rochester Project (FHA), 5.50%, 8/15/40					1,050				1,120,297
County of Nassau New York Industrial Development Agency, Refunding RB, Special Needs Facilities Pooled Program, Series F-1 (ACA), 4.90%, 7/01/21					525				487,683
County of Nassau New York Local Economic Assistance Corp., Refunding RB, Winthrop University Hospital Association Project, 4.25%, 7/01/42					350				287,833
County of Orange New York Industrial Development Agency, RB, Special Needs Facilities Pooled Program, Series G-1 (ACA), 4.90%, 7/01/21					845				797,072
County of Suffolk New York Industrial Development Agency, RB, Special Needs Facilities Pooled Program, Series D-1:
6.50%, 7/01/17					115				113,770
(ACA), 4.90%, 7/01/21					330				300,970
County of Sullivan New York Industrial Development Agency, RB, Special Needs Facilities Pooled Program, Series H-1 (ACA), 4.90%, 7/01/21					330				311,282
County of Westchester New York Healthcare Corp., Refunding RB, Senior Lien:
Remarketing, Series A, 5.00%, 11/01/30					3,075				3,122,601
Series B, 6.00%, 11/01/30					375				406,601
County of Westchester New York Industrial Development Agency, RB, Special Needs Facilities Pooled Program, Series E-1 (ACA), 4.90%, 7/01/21					350				306,891
County of Westchester New York Local Development Corp., Refunding RB, Kendal On Hudson Project:
4.00%, 1/01/23					650				634,153
5.00%, 1/01/28					930				924,448
5.00%, 1/01/34					875				844,961
Onondaga Civic Development Corp., Refunding RB, St. Joseph’s Hospital Health Center Project:
4.50%, 7/01/32					3,225				2,654,304
5.00%, 7/01/42					540				448,832
State of New York Dormitory Authority, RB:
General Purpose, Series E, 5.00%, 2/15/37					1,075				1,117,849
Healthcare, Series A, 5.00%, 3/15/38					250				259,843
Hudson Valley Hospital (BHAC) (FSA), 5.00%, 8/15/36					750				761,175
Memorial Sloan-Kettering Cancer Center, 5.00%, 7/01/41					1,000				1,021,150
Mental Health Services (AGM), 5.00%, 2/15/22					1,000				1,128,970
New York State Association for Retarded Children, Inc., Series B (AMBAC), 6.00%, 7/01/32					700				734,671
New York University Hospitals Center, Series A, 5.75%, 7/01/31					1,055				1,123,111
New York University Hospitals Center, Series B, 5.63%, 7/01/37					530				541,538
North Shore-Long Island Jewish Obligated Group, Series A, 5.50%, 5/01/37					1,675				1,732,653
North Shore-Long Island Jewish Obligated Group, Series A, 5.75%, 5/01/37					1,725				1,811,940

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

DECEMBER 31, 2013

37

Schedule of Investments (continued)	BlackRock New York Municipal Bond Fund (Percentages shown are based on Net Assets)

Municipal Bonds				Par (000)				Value
New York (continued)
Health (concluded)
State of New York Dormitory Authority, RB (concluded):
North Shore-Long Island Jewish Obligated Group, Series D, 4.25%, 5/01/39				$	230			$	200,583
State of New York Dormitory Authority, Refunding RB:
Miriam Osborn Memorial Home Association, 5.00%, 7/01/29					290				295,580
Mount Sinai Hospital, Series A, 5.00%, 7/01/26					1,635				1,735,945
New York University Hospital Center, Series A, 5.00%, 7/01/36					1,500				1,508,115
North Shore-Long Island Jewish Obligated Group, Series A, 5.00%, 5/01/32					2,500				2,528,900
North Shore-Long Island Jewish Obligated Group, Series E, 5.50%, 5/01/33					1,000				1,043,510
St. Luke’s Roosevelt Hospital (FHA), 4.90%, 8/15/31					500				509,460
									40,640,576
Housing — 3.8%
City of New York New York Housing Development Corp., RB, M/F Housing, Series C, AMT, 5.05%, 11/01/36					1,220				1,223,087
City of Yonkers New York Industrial Development Agency, RB, AMT (SONYMA):
Monastery Manor Associates LP Project, 5.25%, 4/01/37					585				572,651
Sacred Heart Association Project, Series A, 5.00%, 10/01/37					1,640				1,637,605
County of Monroe New York Industrial Development Agency, IDRB, Southview Towers Project, AMT (SONYMA), 6.25%, 2/01/31					1,000				1,000,980
State of New York HFA, RB, M/F Housing, Series A, AMT:
Division Street (SONYMA), 5.10%, 2/15/38					875				875,490
Highland Avenue Senior Apartments (SONYMA), 5.00%, 2/15/39					2,000				1,960,640
Kensico Terrace Apartments (SONYMA), 4.90%, 2/15/38					645				617,787
Watergate II, 4.75%, 2/15/34					580				566,741
State of New York Mortgage Agency, Refunding RB, 133rd Series, AMT, 4.95%, 10/01/21					235				237,961
									8,692,942
State — 5.7%
City of New York New York Transitional Finance Authority, BARB, Fiscal 2013, Series S-1, 4.00%, 7/15/42					1,000				880,600
State of New York, GO, Series A, 5.00%, 2/15/39					750				795,532
State of New York Dormitory Authority, RB, General Purpose, Series E, 5.00%, 2/15/29					1,715				1,842,699
State of New York Dormitory Authority, Refunding RB, General Purpose, Series D, 5.00%, 2/15/33					750				787,733
State of New York Thruway Authority, Refunding RB, Series A-1, 5.00%, 4/01/29					1,000				1,063,910
State of New York Urban Development Corp., RB, Personal Income Tax, Series A, 3.50%, 3/15/28					1,750				1,677,830
State of New York Urban Development Corp., Refunding RB:
Clarkson Center Advance Materials, 5.50%, 1/01/20					1,685				1,937,480
University Facilities Grants, 5.50%, 1/01/19					3,500				4,049,255
									13,035,039
Transportation — 10.4%
Metropolitan Transportation Authority, RB:
Dedicated Tax Fund, Series A, 5.63%, 11/15/39					500				543,520
Series C, 6.50%, 11/15/28					1,760				2,036,795
Series H, 5.00%, 11/15/25					1,000				1,080,340
Series H, 5.00%, 11/15/30					400				416,556
Municipal Bonds				Par (000)				Value
New York (continued)
Transportation (concluded)
Metropolitan Transportation Authority, Refunding RB:
Series D, 4.00%, 11/15/32				$	750			$	684,998
Series F, 5.00%, 11/15/30					2,890				3,009,617
Series F (AGM), 4.00%, 11/15/30					1,985				1,946,689
Port Authority of New York & New Jersey, ARB, Special Project JFK International Air Terminal LLC:
Series 6, AMT (NPFGC), 6.25%, 12/01/14					2,620				2,675,046
Series 8, 6.00%, 12/01/42					2,000				2,121,640
Port Authority of New York & New Jersey, Refunding ARB, Consolidated, AMT:
177th Series, 3.50%, 7/15/37					2,000				1,535,100
177th Series, 4.00%, 1/15/43					5,000				4,151,550
178th Series, 5.00%, 12/01/43					285				284,550
State of New York Thruway Authority, Refunding RB, General, Series I:
5.00%, 1/01/37					920				941,307
5.00%, 1/01/42					280				283,128
Triborough Bridge & Tunnel Authority, Refunding RB:
CAB, Sub-Series A, 0.00%, 11/15/32 (b)					2,480				976,376
General, CAB, Series B, 0.00%, 11/15/32 (b)					1,520				616,877
Sub-Series A, 5.00%, 11/15/30					500				529,115
									23,833,204
Utilities — 6.6%
City of New York New York Municipal Water & Sewer System, Refunding RB, Fiscal 2013, Series BB, 5.00%, 6/15/47					2,000				2,042,960
City of New York New York Municipal Water Finance Authority, RB, Water & Sewer System, Fiscal 2009, Series A, 5.75%, 6/15/40					500				552,050
City of New York New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System, 2nd General Resolution:
Series FF-2, 5.50%, 6/15/40					800				848,616
Series HH, 5.00%, 6/15/32					950				1,008,188
Long Island Power Authority, RB, General Electric System:
Series A (AGM), 5.00%, 5/01/36					500				507,630
Series C (CIFG), 5.25%, 9/01/29					3,000				3,167,640
Long Island Power Authority, Refunding RB, Electric System, Series A:
5.50%, 4/01/24					875				951,781
6.00%, 5/01/33					2,450				2,744,686
5.75%, 4/01/39					300				321,261
State of New York Environmental Facilities Corp., Refunding RB, Revolving Funds New York City Municipal Water Finance Authority Projects, 2nd General Resolution, Series B, 5.00%, 6/15/36					1,000				1,049,430
Utility Debt Securitization Authority, Refunding RB, 5.00%, 12/15/41					1,725				1,807,679
									15,001,921
Total Municipal Bonds in New York									207,051,449
Puerto Rico — 0.5%
Housing — 0.5%
Puerto Rico Housing Finance Authority, Refunding RB, Subordinate, Capital Fund Modernization, 5.13%, 12/01/27					1,195				1,183,002
State — 0.0%
Puerto Rico Public Buildings Authority, RB, Government Facilities, Series I, 5.25%, 7/01/14 (d)					55				56,368
Total Municipal Bonds in Puerto Rico									1,239,370
Total Municipal Bonds — 91.2%									208,290,819

See Notes to Financial Statements.

38

SEMI-ANNUAL REPORT

DECEMBER 31, 2013

Schedule of Investments (continued)	BlackRock New York Municipal Bond Fund (Percentages shown are based on Net Assets)

Municipal Bonds Transferred to Tender Option Bond Trusts (e)				Par (000)				Value
New York — 13.4%
County/City/Special District/School District — 2.6%
City of New York New York, GO, Series J, 5.00%, 5/15/23				$	1,800			$	1,824,750
City of New York New York Transitional Finance Authority, RB, Future Tax Secured, Fiscal 2012, Sub-Series D-1, 5.00%, 11/01/38					1,650				1,717,122
Hudson Yards Infrastructure Corp., RB, Fiscal 2012, Series A, 5.75%, 2/15/47 (f)					2,250				2,389,077
									5,930,949
Education — 0.6%
State of New York Dormitory Authority, LRB, State University Dormitory Facilities, New York University, Series A, 5.25%, 7/01/29					1,350				1,445,648
State — 1.0%
City of New York New York Transitional Finance Authority, BARB, Series S-3, 5.25%, 1/15/39					2,100				2,233,155
Transportation — 4.4%
New York Liberty Development Corp., RB, 1 World Trade Center Port Authority Consolidated Bonds, 5.25%, 12/15/43					6,495				6,703,554
Port Authority of New York & New Jersey, RB, Consolidated, Series 169, AMT, 5.00%, 10/15/26					1,500				1,598,310
State of New York Thruway Authority, Refunding RB, Transportation, Personal Income Tax, Series A, 5.00%, 3/15/31					1,560				1,660,355
									9,962,219

Municipal Bonds Transferred to Tender Option Bond Trusts (e)				Par (000)				Value
New York (concluded)
Utilities — 4.8%
City of New York New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System:
2nd General Resolution, Fiscal 2011, Series HH, 5.00%, 6/15/32				$	2,790			$	2,960,887
2nd General Resolution, Fiscal 2012, Series BB, 5.00%, 6/15/44					3,751				3,835,065
Series A, 4.75%, 6/15/30					4,000				4,134,160
									10,930,112
Total Municipal Bonds Transferred to Tender Option Bond Trusts — 13.4%									30,502,083
Total Long-Term Investments (Cost — $239,087,212) — 104.6%									238,792,902
Short-Term Securities					Shares
BIF New York Municipal Money Fund, 0.00% (g)(h)					6,109,838				6,109,838
Total Short-Term Securities (Cost — $6,109,838) — 2.7%									6,109,838
Total Investments (Cost — $245,197,050) — 107.3%									244,902,740
Other Assets Less Liabilities — 0.6%									1,344,903
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (7.9%)									(17,990,815	)
Net Assets — 100.0%								$	228,256,828

Notes to Schedule of Investments

(a)				Variable rate security. Rate shown is as of report date.
(b)				Zero-coupon bond.
(c)				Represents a step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate shown is as of report date.
(d)				US government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par.
(e)				Represent bonds transferred to a TOB. In exchange the Fund acquired residual interest certificates. These bonds serve as collateral in a financing transaction. See Note 3 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs.
(f)				All or a portion of security is subject to a recourse agreement, which may require the Fund to pay the liquidity provider in the event there is a shortfall between the TOB trust certificates and proceeds received from the sale of the security contributed to the TOB trust. In the case of a shortfall, the aggregate maximum potential amount the Fund could ultimately be required to pay under the agreements, which expire on February 15, 2019 is $1,191,304.
(g)				Investments in issuers considered to be an affiliate of the Fund during the six months ended December 31, 2013, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

---

Affiliate				Shares Held at June 30, 2013				Net Activity				Shares Held at December 31, 2013				Income
BIF New York Municipal Money Fund				4,783,356				1,326,482				6,109,838				—

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

See Notes to Financial Statements.

SEMI-ANNUAL REPORT

DECEMBER 31, 2013

39

Schedule of Investments (concluded)	BlackRock New York Municipal Bond Fund

•

Fair Value Measurements — Various inputs are used in determining the fair value of investments. These inputs to valuation techniques are categorized into a disclosure 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 the Fund 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 the Fund’s own assumptions used in determining the fair value of investments)

				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.
				Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Fund’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments is based on the pricing transparency of the investment and is not necessarily an indication of the risks associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments, please refer to Note 2 of the Notes to Financial Statements.
				The following table summarizes the Fund’s investments categorized in the disclosure hierarchy as of December 31, 2013:

---

				Level 1				Level 2				Level 3				Total
Assets:
Investments:
Long-Term Investments 1					—			$	238,792,902				—			$	238,792,902
Short-Term Securities				$	6,109,838				—				—				6,109,838
Total				$	6,109,838			$	238,792,902				—			$	244,902,740

1

See above Schedule of Investments for values in each sector.

				Certain of the Fund’s liabilities are held at carrying amount, which approximates fair value for financial statement purposes. As of December 31, 2013, TOB trust certificates of $(17,985,577) is categorized as Level 2 within the disclosure hierarchy.
				There were no transfers between levels during the six months ended December 31, 2013.

See Notes to Financial Statements.

40

SEMI-ANNUAL REPORT

DECEMBER 31, 2013

Statements of Assets and Liabilities