N-CSRS

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: 811-02688

Name of Fund: BlackRock Municipal Bond Fund, Inc.

BlackRock High Yield Municipal Fund

BlackRock National Municipal Fund

BlackRock Short-Term Municipal Fund

Fund Address:    100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock Municipal Bond

             Fund, Inc., 55 East 52^nd Street, New York, NY 10055

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

Date of fiscal year end: 06/30/2016

Date of reporting period: 12/31/2015

Item 1 – Report to Stockholders

DECEMBER 31, 2015

  SEMI-ANNUAL REPORT (UNAUDITED)

BlackRock Municipal Bond Fund, Inc.

^Ø   BlackRock High Yield Municipal Fund

^Ø   BlackRock National Municipal Fund

^Ø   BlackRock Short-Term Municipal Fund

BlackRock Multi-State Municipal Series Trust

^Ø   BlackRock New York Municipal Opportunities Fund

Not FDIC Insured • May Lose Value • No Bank Guarantee

Table of Contents

	Page
The Markets in Review		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		43
Statements of Operations		45
Statements of Changes in Net Assets		46
Financial Highlights		50
Notes to Financial Statements		70
Officers and Directors		82
Additional Information		83

2 SEMI-ANNUAL REPORT DECEMBER 31, 2015

The Markets in Review

Dear Shareholder,

Diverging monetary policies and shifting economic outlooks across regions have been the overarching themes driving financial markets over the past couple of years. With U.S. growth outpacing the global economic recovery in 2015 while inflationary pressures remained low, investors spent most of the year anticipating a short-term rate hike from the Federal Reserve (the “Fed”), which ultimately came to fruition in December. In contrast, the European Central Bank (“ECB”) and the Bank of Japan moved to a more accommodative stance during the year. In this environment, the U.S. dollar strengthened considerably, causing profit challenges for U.S. exporters and high levels of volatility in emerging market currencies and commodities. Oil prices were particularly volatile and below the historical norm due to an ongoing imbalance in global supply and demand.

Market volatility broadly increased in the middle of 2015, beginning with a sharp, but temporary, selloff in June as Greece’s long-brewing debt troubles came to an impasse. Just as these concerns abated, Chinese equities tumbled amid weakness in the country’s economy. This, combined with a depreciation of the yuan and declining confidence in China’s policymakers, stoked worries about the potential impact to the broader world economy, causing heightened volatility to spread throughout markets globally. Given a dearth of meaningful growth across most of the world, financial markets became more reliant on central bank policies to drive performance. In that vein, risk assets (such as equities and high yield bonds) rallied in October when China’s central bank provided more stimulus, the ECB hinted at further easing, and soft U.S. data pushed back expectations for a Fed rate hike. As the period came to a close, however, the ECB disappointed investors with its subdued policy changes. The Fed’s December rate hike had a positive impact on the markets as it removed a source of uncertainty, but this was counteracted by the dampening effect of a stronger U.S. dollar, falling oil prices and tighter credit conditions.

At BlackRock, we believe investors need to think globally, extend their scope across a broad 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 blackrock.com for further insight about investing in today’s markets.

Sincerely,

Rob Kapito

President, BlackRock Advisors, LLC

Rob Kapito

President, BlackRock Advisors, LLC

Total Returns as of December 31, 2015
	6-month			12-month
U.S. large cap equities (S&P 500® Index)		0.15	%		1.38	%
U.S. small cap equities (Russell 2000® Index)		(8.75	)		(4.41	)
International equities (MSCI Europe, Australasia, Far East Index)		(6.01	)		(0.81	)
Emerging market equities (MSCI Emerging Markets Index)		(17.35	)		(14.92	)
3-month Treasury bills (BofA Merrill Lynch 3-Month U.S. Treasury Bill Index)		0.04			0.05
U.S. Treasury securities (BofA Merrill Lynch 10-Year U.S. Treasury Index)		1.43			0.91
U.S. investment-grade bonds (Barclays U.S. Aggregate Bond Index)		0.65			0.55
Tax-exempt municipal bonds (S&P Municipal Bond Index)		3.31			3.32
U.S. high yield bonds (Barclays U.S. Corporate High Yield 2% Issuer Capped Index)		(6.79	)		(4.43	)
Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.

THIS PAGE NOT PART OF YOUR FUND REPORT 3

Fund Summary as of December 31, 2015 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, 2015, the Fund outperformed its primary benchmark, the S&P^® Municipal Bond Index. The Fund’s Institutional and Investor A Shares outperformed the secondary benchmark, the Custom High Yield Index, which is customized to represent only issues in the S&P^® Customized High Yield Bond Index that have maturities greater than five years. The Fund’s Investor C Shares underperformed the secondary benchmark. The following discussion of relative performance pertains to the Custom High Yield Index.

What factors influenced performance?

• The Fund’s overweight position in bonds with maturities of 25 years and longer benefited performance, as longer-dated bonds outpaced the broader market during the period. The Fund’s concentrations in BBB and AA rated securities, which outperformed, also aided performance. Sector allocation decisions, led by overweight positions in transportation, corporate and other industries (ranging from development districts to various project specific financings) were an additional plus. The Fund’s relative performance also continued to benefit from its lack of a position in distressed Puerto Rico bonds, which declined in value during the period.

• The Fund’s underweight position relative to its benchmark in the utilities sector detracted from performance. In addition, the investment advisor’s higher-quality bias led it to hold below-market weightings in single-B, CCC and unrated securities, meaning that the Fund was unable to participate

fully in the outperformance of these market segments. The Fund’s underweight exposure to local tax-backed sector, which outpaced the broader market, detracted as well. In addition, the Fund’s below-benchmark duration (interest rate sensitivity) was a modest drag on performance in the declining rate environment.

Describe recent portfolio activity.

• The Fund continued to add exposure in the tobacco sector. While tobacco bonds were the best-performing sector of the market in 2015, the investment advisor believes this group continues to exhibit value compared to other high yield investments. The Fund’s new purchases were concentrated in the transportation, utilities, health care and education sectors, while it trimmed its position in the local tax-backed sector. The investment advisor increased leverage as a means of enhancing portfolio yield and capturing the performance of long-dated, high-quality bonds. The Fund’s cash position was above its usual level at the end of the period, reflecting an increase in investment inflows.

Describe portfolio positioning at period end.

• The Fund’s duration posture was below that of the secondary benchmark at year-end. The Fund maintained a higher-quality bias, as the investment advisor preferred to have a high degree of liquidity at a time when narrow credit spreads offered only marginal relative value. The investment advisor continued to emphasize the tobacco, health care and transportation sectors.

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 Total Investments*

    
Sector Allocation Percent of
Total Investments

Health	18	%
Tobacco	17
County/City/Special District/School District	16
Transportation	15
Education	12
Corporate	9
Utilities	7
State	6

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

Call/Maturity Schedule³ Percent of
Total Investments

Calendar Year Ended December 31,
2016	8	%
2017	7
2018	3
2019	5
2020	9

³  Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.

* Excludes short-term securities.

Credit Quality Allocation¹ Percent of
Total Investments

AAA/Aaa	4	%
AA/Aa	13
A	9
BBB/Baa	26
BB/Ba	11
B	10
N/R2	27

¹  For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either Standard & Poor’s (“S&P”) or Moody’s Investors Service (“Moody’s”) if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

²  The investment advisor evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment advisor has deemed certain of these unrated securities as investment grade quality. As of December 31, 2015, the market value of unrated securities deemed by the investment advisor to be investment grade represents 2% of the Fund’s total investments.

4 SEMI-ANNUAL REPORT DECEMBER 31, 2015

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 one month.

⁴  The Custom High Yield Index is a customized benchmark that reflects the returns of the S&P^® Customized High Yield Municipal Bond Index for periods prior to January 1, 2013, and the returns of only those bonds in the S&P^® Customized High Yield Municipal Bond Index that have maturities greater than 5 years for periods subsequent to January 1, 2013.

⁵  Commencement of operations.

Performance Summary for the Period Ended December 31, 2015

										Average Annual Total Returns6
										1 Year						5 Years						Since Inception7
	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		3.71	%		3.71	%		5.01	%		5.50	%		N/A			8.19	%		N/A			4.68	%		N/A
Investor A		3.31			3.31			4.88			5.23			0.76	%		7.92			6.98	%		4.39			3.91	%
Investor C		2.70			2.70			4.48			4.45			3.45			7.10			7.10			3.63			3.63
S&P® Municipal Bond Index		—			—			3.31			3.32			N/A			5.50			N/A			4.76			N/A
Custom High Yield Index		—			—			4.64			3.33			N/A			7.89			N/A			4.85			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								Hypothetical10
					During the Period						Including Interest Expense and Fees				Excluding Interest Expense and Fees
	Beginning Account Value July 1, 2015		Ending Account Value December 31, 2015		Including Interest Expense and Fees8		Excluding Interest Expense and Fees9		Beginning Account Value July 1, 2015		Ending Account Value December 31, 2015		Expenses Paid During the Period8		Ending Account Value December 31, 2015		Expenses Paid During the Period9
Institutional	$	1,000.00	$	1,050.10	$	3.66	$	3.40	$	1,000.00	$	1,021.57	$	3.61	$	1,021.82	$	3.35
Investor A	$	1,000.00	$	1,048.80	$	5.00	$	4.74	$	1,000.00	$	1,020.26	$	4.93	$	1,020.51	$	4.67
Investor C	$	1,000.00	$	1,044.80	$	8.89	$	8.58	$	1,000.00	$	1,016.44	$	8.77	$	1,016.74	$	8.47

⁸  For each class of the Fund, expenses are equal to the annualized net expense ratio for the class (0.71% for Institutional, 0.97% for Investor A and 1.73% for Investor C), multiplied by the average account value over the period, multiplied by 184/366 (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 (0.66% for Institutional, 0.92% for Investor A and 1.67% for Investor C), multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period shown).

¹⁰ Hypothetical 5% annual return before expenses is calculated by prorating the number of days in the most recent fiscal half year divided by 366.

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

SEMI-ANNUAL REPORT DECEMBER 31, 2015 5

Fund Summary as of December 31, 2015 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, 2015, the Fund underperformed both its benchmark, the S&P^® Municipal Bond Index, and its secondary benchmark, the Custom National Index. The following discussion of relative performance pertains to the Fund’s secondary benchmark, the Custom National Index.

What factors influenced performance?

• The primary cause of the Fund’s underperformance relative to its benchmark was that its duration (interest rate sensitivity) was below that of the benchmark at a time when yields fell. (Prices and yields move in opposite directions.) In addition, the Fund’s above-average weighting in cash detracted from returns given that longer-maturity bonds and higher-yielding sectors generally outperformed. The large cash position stemmed from the significant inflows into the Fund during the period. In an environment characterized by less attractive valuations, low absolute yields and a tighter yield gap between municipal bonds and other fixed-income asset classes, the investment advisor was patient in putting these cash inflows to work.

• On the positive side, the Fund was helped by its long maturity bias, which enabled it to capitalize on the outperformance of longer-term bonds rela-

tive to short-term debt. In addition, its positions in higher-rated bonds rose in price amid healthy buying interest. The Fund’s exposure to the tobacco sector, the top performing segment of the market, was also a plus. Holding no exposure to Puerto Rico bonds, which continued to lose ground on concerns about the growing likelihood of a default, was an additional positive as related to Fund performance.

Describe recent portfolio activity.

• The Fund’s purchases were concentrated in new issues rather than those already trading in the secondary market. The investment advisor generally focused its purchases on the longer end of the yield curve to maximize yield and bring the Fund’s duration closer to a neutral posture. The Fund pared down its use of leverage during the period, and it initiated a position in tobacco bonds.

Describe portfolio positioning at period end.

• The Fund was positioned defensively, with an above-average cash position and an average credit quality of AA-. The Fund maintained a duration below that of the S&P^® Municipal Bond Index, and its weighting in pre-refunded securities increased as lower interest rates prompted municipal issuers to refinance older-dated, higher-yielding debt.

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 Total Investments*

    
Sector Allocation Percent of
Total Investments

Transportation	22	%
Utilities	22
Education	17
Health	15
State	8
County/City/Special District/School District	8
Corporate	4
Tobacco	3
Housing	1

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

Call/Maturity Schedule³ Percent of
Total Investments

Calendar Year Ended December 31,
2016	6	%
2017	8
2018	15
2019	20
2020	10

³  Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.

* Excludes short-term securities.

Credit Quality Allocation¹ Percent of
Total Investments

AAA/Aaa	18	%
AA/Aa	45
A	23
BBB/Baa	6
BB/Ba	1
B	1
N/R2	6

¹  For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P or Moody’s if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

²  The investment advisor evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment advisor has deemed certain of these unrated securities as investment grade quality. As of December 31, 2015, the market value of unrated securities deemed by the investment advisor to be investment grade represents 4% of the Fund’s total investments.

6 SEMI-ANNUAL REPORT DECEMBER 31, 2015

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 one month.

⁴  The Custom National Index reflects the returns of the S&P Municipal Bond Index for periods prior to 1/1/13, and the returns of only those bonds in the S&P Municipal Bond Index that have maturities greater than 5 years for periods subsequent to 1/1/13.

Performance Summary for the Period Ended December 31, 2015

										Average Annual Total Returns5
										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		1.76	%		1.73	%		2.93	%		3.52	%		N/A			6.38	%		N/A			5.01	%		N/A
Institutional		1.65			1.65			2.98			3.43			N/A			6.27			N/A			4.89			N/A
Service		1.46			1.46			2.87			3.23			N/A			5.97			N/A			4.61			N/A
Investor A		1.44			1.34			2.89			3.35			(1.04	)%		6.10			5.18	%		4.69			4.23	%
Investor B		1.00			0.89			2.63			2.83			(1.17	)		5.58			5.26			4.16			4.16
Investor C		0.76			0.73			2.51			2.49			1.49			5.31			5.31			3.89			3.89
Investor C1		0.95			0.93			2.60			2.78			N/A			5.53			N/A			4.11			N/A
S&P® Municipal Bond Index		—			—			3.31			3.32			N/A			5.50			N/A			4.66			N/A
Custom National Index		—			—			4.21			4.10			N/A			5.91			N/A			4.86			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								Hypothetical8
					During the Period						Including Interest Expense and Fees				Excluding Interest Expense and Fees
	Beginning Account Value July 1, 2015		Ending Account Value December 31, 2015		Expenses Including Interest Expense and Fees6		Excluding Interest Expense and Fees7		Beginning Account Value July 1, 2015		Ending Account Value December 31, 2015		Expenses Paid During the Period6		Ending Account Value December 31, 2015		Expenses Paid During the Period7
Blackrock	$	1,000.00	$	1,029.30	$	2.50	$	2.35	$	1,000.00	$	1,022.67	$	2.49	$	1,022.82	$	2.34
Institutional	$	1,000.00	$	1,029.80	$	3.01	$	2.86	$	1,000.00	$	1,022.17	$	3.00	$	1,022.32	$	2.85
Investor A	$	1,000.00	$	1,028.90	$	3.82	$	3.67	$	1,000.00	$	1,021.37	$	3.81	$	1,021.52	$	3.66
Investor B	$	1,000.00	$	1,026.30	$	6.42	$	6.26	$	1,000.00	$	1,018.80	$	6.39	$	1,018.95	$	6.24
Investor C	$	1,000.00	$	1,025.10	$	7.64	$	7.48	$	1,000.00	$	1,017.60	$	7.61	$	1,017.75	$	7.46
Investor C1	$	1,000.00	$	1,026.00	$	6.67	$	6.52	$	1,000.00	$	1,018.55	$	6.65	$	1,018.70	$	6.50
Service Class	$	1,000.00	$	1,028.70	$	4.08	$	3.93	$	1,000.00	$	1,021.11	$	4.06	$	1,021.27	$	3.91

⁶ For each class of the Fund, expenses are equal to the annualized net expense ratio for the class (0.49% for BlackRock, 0.59% for Institutional, 0.80% for Service, 0.75% for Investor A, 1.26% for Investor B, 1.50% for Investor C and 1.31% for Investor C1), multiplied by the average account value over the period, multiplied by 184/366 (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 (0.46% for BlackRock, 0.56% for Institutional, 0.77% 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 184/366 (to reflect the one-half year period shown).

⁸ Hypothetical 5% annual return before expenses is calculated by prorating the number of days in the most recent fiscal half year divided by 366.

SEMI-ANNUAL REPORT DECEMBER 31, 2015 7

Fund Summary as of December 31, 2015 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, 2015, the Fund underperformed its primary benchmark, the S&P^® Municipal Bond Index, as well as 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 yield curve positioning was the primary detractor from performance relative to its benchmark during the second half of 2015. Specifically, the Fund’s holdings in the utilities and tax-backed states sectors had an adverse impact on results. In addition, security selection in the utilities, tax-backed state and local and education sectors hindered returns.

• The Fund was helped by its overweight position in the utilities sector, which outperformed, as well as its underweight position in pre-refunded bonds, which lagged. The investment advisor continued to trade the portfolio actively, which had a net positive impact on returns.

Describe recent portfolio activity.

• The investment advisor reduced the Fund’s exposure to securities with maturities inside of 13 months, as they were most vulnerable to both a change in Federal Reserve policy and money market reform in 2016. The investment advisor reinvested the proceeds of these sales primarily into AA rated securities, as the yield spreads on single A rated securities had become too narrow. In addition, investments were made in securities with maturities closely approximating the benchmark in an effort to minimize portfolio volatility.

Describe portfolio positioning at period end.

• Relative to the benchmark, the Fund was underweight in AAA rated securities and overweight in those rated AA. The Fund maintained a significant underweight in pre-refunded securities, as many of the recently pre-refunded issues did not meet the investment advisor’s credit criteria. The Fund’s largest sector overweight was to the dedicated tax-backed sectors at both the state and local levels.

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 Total Investments*

    
Sector Allocation Percent of
Total Investments

State	28	%
County/City/Special District/School District	21
Utilities	17
Education	17
Transportation	11
Health	4
Tobacco	1
Housing	1

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

Call/Maturity Schedule² Percent of
Total Investments

Calendar Year Ended December 31,
2016	26	%
2017	37
2018	25
2019	—
2020	—

²  Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.

* Excludes short-term securities.

Credit Quality Allocation¹ Percent of
Total Investments

AAA/Aaa	29	%
AA/Aa	58
A	12
BBB/Baa	1

¹  For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P or Moody’s if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

8 SEMI-ANNUAL REPORT DECEMBER 31, 2015

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 one 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, 2015

										Average Annual Total Returns5
										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		0.49	%		0.37	%		0.31	%		0.31	%		N/A			0.69	%		N/A			1.83	%		N/A
Investor A		0.20			0.18			0.17			0.14			(2.87	)%		0.42			(0.19	)%		1.58			1.27	%
Investor A1		0.37			0.33			0.25			0.19			N/A			0.57			N/A			1.73			N/A
Investor C		(0.57	)		(0.58	)		(0.20	)		(0.69	)		(1.69	)		(0.38	)		(0.38	)		0.79			0.79
Class K		0.47			0.46			0.31			0.31			N/A			0.67			N/A			1.82			N/A
S&P® Municipal Bond Index		—			—			3.31			3.32			N/A			5.50			N/A			4.66			N/A
S&P® Limited Maturity Municipal Bond Index		—			—			0.56			0.82			N/A			1.31			N/A			2.52			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						Hypothetical7
	Beginning Account Value July 1, 2015		Ending Account Value December 31, 2015		Expenses Paid During the Period6		Beginning Account Value July 1, 2015		Ending Account Value December 31, 2015		Expenses Paid During the Period6		Annualized Expense Ratio
Institutional	$	1,000.00	$	1,003.10	$	2.01	$	1,000.00	$	1,023.13	$	2.03		0.40	%
Investor A	$	1,000.00	$	1,001.70	$	3.42	$	1,000.00	$	1,021.72	$	3.46		0.68	%
Investor A1	$	1,000.00	$	1,002.50	$	2.62	$	1,000.00	$	1,022.52	$	2.64		0.52	%
Investor C	$	1,000.00	$	998.00	$	7.43	$	1,000.00	$	1,017.70	$	7.51		1.48	%
Class K	$	1,000.00	$	1,003.10	$	2.06	$	1,000.00	$	1,023.08	$	2.08		0.41	%

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 184/366 (to reflect the one-half year period shown).

⁷  Hypothetical 5% return before expenses is calculated by prorating the number of days in the most recent fiscal half year divided by 366.

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

SEMI-ANNUAL REPORT DECEMBER 31, 2015 9

Fund Summary as of December 31, 2015 BlackRock New York Municipal Opportunities Fund

Investment Objective

BlackRock New York Municipal Opportunities Fund’s (the “Fund”) (formerly known as BlackRock New York Municipal Bond 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, 2015, the Fund outperformed its primary benchmark, the S&P^® Municipal Bond Index. The Fund also outperformed 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.

What factors influenced performance?

• The Fund’s positioning along the yield curve, which favored longer-dated bonds, aided performance given that longer-term bonds generally outperformed those with shorter maturities. Overweight positions in the education, health care, and transportation sectors, which outperformed the benchmark, also aided performance. The Fund was further bolstered by its heavier concentration in the middle range of the credit spectrum (specifically, A and BBB+ rated credits) at a time in which higher yielding credits, sectors and structures generally outperformed.

• Income in the form of coupon payments made up a meaningful portion of the Fund’s total return for the period. In addition, the Fund’s limited use of leverage provided both incremental return and income in an environment of declining long-term yields. (Bonds prices rise as yields fall.)

• Exposure to lower-coupon bonds (bonds priced at a discount) also benefited from declining longer-term interest rates, since such bonds tend to have longer durations and more capital appreciation potential than bonds with larger coupons. (Duration is a measure of interest-rate sensitivity.) These bonds tend to offer additional incremental yield, which also aided performance.

• The Fund’s exposure to the tax-backed (state and local) sector detracted from performance during the period, as did its exposure to AAA and AA-rated issues.

• The Fund uses U.S. Treasury futures contracts to manage interest rate risk. While these positions detracted from performance in isolation, they allowed the Fund to invest further out the yield curve and maintain a higher duration within the underlying tax-exempt bond portfolio.

Describe recent portfolio activity.

• Fund activity centered on investing cash flows from investment inflows and bond calls, as well as continued re-balancing in order to align with the change to the flexible-fund mandate that was enacted earlier in the year. The investment advisor relied on the opportunities presented in the new-issue market in order to invest cash, diversify into different issuers, and structure the portfolio for the optimum mix of yield and total return. Where feasible, purchases were weighted toward the longer end of the yield curve and into lower-rated investment-grade bonds, as long rates seemed well anchored and higher yielding bonds continued to experience strong demand. The Fund also increased its exposure to the tobacco sector, bringing it to a slight overweight.

• The Fund’s cash position temporarily rose to nearly 10% during the period and closed closer to 4% toward the end of the period. This did not have a material impact on performance, as the Fund’s above-average yield and interest-rate sensitivity resulted in a strong total return for the period.

Describe portfolio positioning at period end.

• Relative to the S&P New York Municipal Bond Index, the Fund remained biased toward longer-term bonds in order to capture additional yield and capitalize on the robust retail demand for long-dated bonds. The Fund’s new mandate involves an increased exposure to high yield credits. As a result, the investment advisor remained on the lookout for opportunities in this area.

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 Total Investments*

Sector Allocation	Percent of Total Investments
County/City/Special District/School District		26	%
Transportation		17
Education		15
Utilities		12
Health		9
Corporate		7
State		6
Tobacco		5
Housing		3

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

Call/Maturity Schedule3	Percent of Total Investments
Calendar Year Ended December 31,
2016		6	%
2017		4
2018		3
2019		9
2020		7

³  Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.

* Excludes short-term securities.

Credit Quality Allocation¹ Percent of
Total Investments

AAA/Aaa	13	%
AA/Aa	39
A	28
BBB/Baa	4
BB/Ba	3
B	1
N/R2	12

¹  For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P or Moody’s if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

²  The investment advisor evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment advisor has deemed certain of these unrated securities as investment grade quality. As of December 31, 2015, the market value of unrated securities deemed by the investment advisor to be investment grade represents 2% of the Fund’s total investments.

10 SEMI-ANNUAL REPORT DECEMBER 31, 2015

BlackRock New York Municipal Opportunities Fund

Total Return Based on a $10,000 Investment

¹  Assuming maximum sales charges, if any, transaction costs and other operating expenses, including advisory fees. Institutional Shares do not have a sales charge.

²  The Fund will invest at least 80% of its assets in a portfolio of investment grade New York municipal bonds.

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, 2015

										Average Annual Total Returns5
										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		2.38	%		2.31	%		4.45	%		4.57	%		N/A			6.12	%		N/A			4.67	%		N/A
Investor A		2.05			1.97			4.23			4.23			(0.20	)%		5.85			4.93	%		4.40			3.94	%
Investor A1		2.16			2.13			4.29			4.34			N/A			6.00			N/A			4.56			N/A
Investor C		1.40			1.32			3.94			3.45			2.45			5.08			5.08			3.63			3.63
Investor C1		1.76			1.73			4.13			3.82			N/A			5.49			N/A			4.04			N/A
S&P® Municipal Bond Index		—			—			3.31			3.32			N/A			5.50			N/A			4.66			N/A
S&P® New York Municipal Bond Index		—			—			3.34			3.66			N/A			5.24			N/A			4.69			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								Hypothetical9
					Expenses Paid During the Period						Including Interest Expense and Fees				Excluding Interest Expense and Fees
	Beginning Account Value July 1, 2015		Ending Account Value December 31, 2015		Including Interest Expense and Fees7		Excluding Interest Expense and Fees8		Beginning Account Value July 1, 2015		Ending Account Value December 31, 2015		Expenses Paid During the Period7		Ending Account Value December 31, 2015		Expenses Paid During the Period8
Institutional	$	1,000.00	$	1,044.50	$	3.55	$	3.34	$	1,000.00	$	1,021.67	$	3.51	$	1,021.87	$	3.30
Investor A	$	1,000.00	$	1,042.30	$	4.77	$	4.57	$	1,000.00	$	1,020.46	$	4.72	$	1,020.66	$	4.52
Investor A1	$	1,000.00	$	1,042.90	$	4.21	$	4.06	$	1,000.00	$	1,021.01	$	4.17	$	1,021.17	$	4.01
Investor C	$	1,000.00	$	1,039.40	$	8.61	$	8.41	$	1,000.00	$	1,016.69	$	8.52	$	1,016.89	$	8.31
Investor C1	$	1,000.00	$	1,041.30	$	6.77	$	6.57	$	1,000.00	$	1,018.50	$	6.70	$	1,018.70	$	6.50

⁷  For each class of the Fund, expenses are equal to the annualized net expense ratio for the class (0.69% for Institutional, 0.93% for Investor A, 0.82% for Investor A1, 1.68% for Investor C and 1.32% for Investor C1), multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period shown).

⁸  For each class of the Fund, expenses are equal to the annualized net expense ratio for the class (0.65% for Institutional, 0.89% for Investor A, 0.79% for Investor A1, 1.64% for Investor C and 1.28% for Investor C1), multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period shown).

⁹  Hypothetical 5% annual return before expenses is calculated by prorating the number of days in the most recent fiscal half year divided by 366.

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

SEMI-ANNUAL REPORT DECEMBER 31, 2015 11

About Fund Performance

• BlackRock, Institutional and Class K Shares (BlackRock Shares are available only in BlackRock National Municipal Fund, and Class K Shares available only in BlackRock Short-Term 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 July 18, 2011 for BlackRock National Municipal Fund, BlackRock Share performance results are those of the Institutional Shares restated to reflect BlackRock Share fees. Prior to October 2, 2006 for BlackRock Short-Term Municipal Fund, Class K Share performance results are those of the Institutional Shares restated to reflect Class K Share fees. On the close of business on September 1, 2015, all of the issued and outstanding BlackRock Shares of BlackRock Short-Term Municipal Fund were redesignated as Class K Shares.

• Service Shares (available only in BlackRock National Municipal Fund) are not subject to any sales charge (front-end load) or deferred 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. These shares are generally available through financial intermediaries. Prior to October 2, 2006 for BlackRock Short-Term Municipal Fund and BlackRock New York Municipal Opportunities 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 Opportunities Fund) are subject to 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 Opportunities Fund; and a service fee of 0.10% per year (but no distribution fee). Maximum initial sales charge does not apply to current shareholders of Investor A1 Shares of the Funds.

• 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 share conversions.)

• 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 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 Opportunities Fund) are subject to a 1.00% CDSC if redeemed within one year of purchase. A CDSC does not apply to the current shareholders of Investor C1 Shares of the Funds. In addition, these shares are subject to a distribution and service fees per year as follows:

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

Investor B Shares of their respective Funds are only available through exchanges and dividend and capital gain reinvestment by existing shareholders, and for purchase by certain employer-sponsored retirement plans.

Investor A1 and Investor C1 Shares of their respective Funds are only available for dividend and capital gain reinvestment by existing shareholders, and for purchase by certain employer-sponsored retirement plans, and for National Municipal Fund only, fee based programs previously approved by the Fund.

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 distributions, if any, at net asset value (“NAV”) on the ex-dividend date/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. Distributions 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.

BlackRock Advisors, LLC (the “Manager”), the Funds’ investment advisor, voluntarily reimbursed a portion of the Funds’ expenses. Without such reimbursement, the Funds’ performance would have been lower. The Manager is under no obligation to reimburse or to continue reimbursing its fees and such voluntary waiver may be reduced or discontinued at any time. See Note 6 of the Notes to Financial Statements for additional information on reimbursements.

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, 2015

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, 2015 and held through December 31, 2015) 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 examples with the 5% hypothetical examples that appear in shareholder reports of other funds.

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, 2015 13

The Benefits and Risks of Leveraging

The Funds may utilize leverage to seek to enhance yield and net asset value (“NAV”). However, these objectives cannot be achieved in all interest rate environments.

Each Fund may leverage its assets through the use of proceeds received in tender option bond (“TOB”) transactions, as described in the Notes to Financial Statements. In a TOB transaction, the Funds transfer municipal bonds or other municipal securities into a special purpose entity (a “TOB Trust”). TOB investments generally 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 a TOB Trust may adversely affect the Funds’ NAV per share.

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

The interest earned on securities purchased with the proceeds from leverage is distributed to the Funds’ shareholders, and the value of these portfolio holdings is reflected in the Funds’ per share NAV. However, in order to benefit shareholders, the return on assets purchased with

leverage proceeds must exceed the ongoing costs associated with the leverage. If interest and other ongoing costs of leverage exceed the Fund’s return on assets purchased with leverage proceeds, income to shareholders is lower than if the Funds had not used leverage.

Furthermore, the value of each Fund’s portfolio investments generally varies inversely with the direction of long-term interest rates, although other factors can also influence the value of portfolio investments. As a result, changes in interest rates can influence each Fund’s NAV positively or negatively in addition to the impact on each Fund’s performance from leverage. Changes in the direction of interest rates are difficult to predict accurately, and there is no assurance that a Fund’s leveraging strategy will be successful.

The use of leverage also generally causes greater changes in each Fund’s NAV and distribution rates than it would in a comparable fund that does not use leverage. In a declining market, leverage is likely to cause a greater decline in the NAV of a Fund’s shares than if the Fund were not leveraged. In addition, 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 the leverage instruments, which may cause the Funds to incur losses. The use of leverage may limit a Fund’s ability to invest in certain types of securities or use certain types of hedging strategies. Each Fund incurs expenses in connection with the use of leverage, all of which are borne by the Funds’ shareholders and may reduce income.

Derivative Financial Instruments

The Funds may invest in various derivative financial instruments. 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 manage market, equity, credit, interest rate, foreign currency exchange rate, commodity and/or other risks. Derivative financial instruments may give rise to a form of economic leverage. Derivative financial instruments also 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 limit the amount of appreciation a Fund can realize on an investment and/or may result in lower distributions paid to shareholders. The Funds’ investments, if any, in these instruments are discussed in detail in the Notes to Financial Statements.

14 SEMI-ANNUAL REPORT DECEMBER 31, 2015

Schedule of Investments December 31, 2015 (Unaudited) BlackRock High Yield Municipal Fund (Percentages shown are based on Net Assets)

Municipal Bonds	Par   (000)		Value
Alabama — 1.4%
Alabama Special Care Facilities Financing Authority-Birmingham, RB (a):
5.75%, 6/01/35	$	200	$	202,564
5.75%, 6/01/45		355		357,602
6.00%, 6/01/50		450		458,685
County of Jefferson Alabama Sewer, Refunding RB:
Senior Lien, Series A (AGM), 5.00%, 10/01/44		365		399,598
Series D, 6.50%, 10/01/53		3,465		4,054,223
Sub-Lien, Series D, 7.00%, 10/01/51		2,355		2,867,166
State of Alabama Docks Department, Refunding RB, 6.00%, 10/01/40		710		825,624
				9,165,462
Alaska — 0.4%
Northern Tobacco Securitization Corp., Refunding RB, Tobacco Settlement, Asset-Backed, Series A:
4.63%, 6/01/23		870		870,278
5.00%, 6/01/32		1,510		1,367,668
				2,237,946
Arizona — 1.4%
City of Phoenix Arizona IDA, ERB, Eagle College Prep Project, Series A, 5.00%, 7/01/43		1,445		1,455,361
City of Phoenix Arizona IDA, RB:
Great Hearts Academies — Veritas Project, 6.40%, 7/01/47		415		448,623
Legacy Traditional Schools Project, Series A, 6.50%, 7/01/34 (b)		465		520,335
Legacy Traditional Schools Project, Series A, 6.75%, 7/01/44 (b)		810		912,263
City of Phoenix Arizona IDA, Refunding RB (b):
Basis Schools, Inc. Projects, Series A, 5.00%, 7/01/35		300		313,617
Basis Schools, Inc. Projects, Series A, 5.00%, 7/01/45		895		919,532
Legacy Traditional School Projects, 5.00%, 7/01/35		315		318,084
Legacy Traditional School Projects, 5.00%, 7/01/45		250		244,715
Series A, 5.00%, 7/01/35 (a)		295		308,608
Series A, 5.00%, 7/01/46 (a)		325		333,821
County of Maricopa Arizona IDA, RB, Arizona Charter Schools Project, Series A, 6.75%, 7/01/29		70		67,367
Florence Town, Inc. Arizona, IDA, ERB, Legacy Traditional School Project, Queen Creek and Casa Grande Campuses, 6.00%, 7/01/43		1,375		1,487,791
Salt Verde Financial Corp., RB, Senior, 5.00%, 12/01/37		1,625		1,881,457
				9,211,574

Municipal Bonds	Par   (000)		Value
Arkansas — 0.1%
County of Benton Arkansas Public Facilities Board, RB, BCCSO Project, Series A, 6.00%, 6/01/40	$	750	$	829,320
California — 6.1%
County of California Tobacco Securitization Agency, RB, Asset-Backed, Los Angeles:
5.60%, 6/01/36		1,385		1,384,931
5.70%, 6/01/46		1,495		1,469,899
County of California Tobacco Securitization Agency, Refunding RB, Series A, 5.00%, 6/01/36		1,665		1,547,168
California Health Facilities Financing Authority, RB:
St. Joseph Health System, Series A, 5.75%, 7/01/39		1,000		1,145,490
Sutter Health, Series B, 6.00%, 8/15/42		1,000		1,200,700
California Health Facilities Financing Authority, Refunding RB, Catholic Healthcare West, Series A, 6.00%, 7/01/39		265		303,852
California Municipal Finance Authority, RB, Urban Discovery Academy Project (b):
5.50%, 8/01/34		310		323,553
6.00%, 8/01/44		655		688,097
6.13%, 8/01/49		570		599,463
California School Finance Authority, RB, Value Schools:
6.65%, 7/01/33		295		329,488
6.90%, 7/01/43		650		732,862
California Statewide Communities Development Authority, RB, Sutter Health, Series A, 6.00%, 8/15/42		400		475,944
California Statewide Communities Development Authority, Refunding RB, American Baptist Homes of the West, 6.25%, 10/01/39		2,575		2,849,340
California Statewide Financing Authority, RB, Asset-Backed, Tobacco Settlement:
Series A, 6.00%, 5/01/43		2,500		2,542,500
Series B, 6.00%, 5/01/43		3,485		3,544,245
City of Chula Vista California, Refunding RB, San Diego Gas & Electric, Series A, 5.88%, 2/15/34		500		571,105
City of San Jose California Hotel Tax, RB, Convention Center Expansion & Renovation Project:
6.50%, 5/01/36		310		375,856
6.50%, 5/01/42		760		914,668
City of Stockton California Public Financing Authority, RB, Delta Water Supply Project, Series A, 6.25%, 10/01/40		240		296,184
County of California Tobacco Securitization Agency, RB, 5.45%, 6/01/28		500		502,715
County of Riverside California Transportation Commission, RB, Senior Lien, Series A, 5.75%, 6/01/48		2,115		2,426,984
Golden State Tobacco Securitization Corp., Refunding RB, Asset-Backed, Senior, Series A-1, 5.75%, 6/01/47		10,955		10,285,978

Portfolio Abbreviations

AGC	Assured Guarantee Corp.	EDC	Economic Development Corp.	IDRB	Industrial Development Revenue Bonds
ACA	American Capital Access Holding Ltd.	ERB	Education Revenue Bonds	ISD	Independent School District
AGC	Assured Guarantee Corp.	ERS	Extendible Reset Securities	LRB	Lease Revenue Bonds
AGM	Assured Guaranty Municipal Corp.	FHA	Federal Housing Administration	M/F	Multi-Family
AMBAC	American Municipal Bond Assurance Corp.	GAN	Grant Anticipation Notes	MRB	Mortgage Revenue Bonds
AMT	Alternative Minimum Tax (subject to)	GARB	General Airport Revenue Bonds	NPFGC	National Public Finance Guarantee Corp.
ARB	Airport Revenue Bonds	GARB	General Airport Revenue Bonds	OTC	Over-the-Counter
BARB	Building Aid Revenue Bonds	GO	General Obligation Bonds	PILOT	Payment in Lieu of Taxes
BHAC	Berkshire Hathaway Assurance Corp.	HDA	Housing Development Authority	RB	Revenue Bonds
CAB	Capital Appreciation Bonds	HFA	Housing Finance Agency	S/F	Single-Family
CIFG	CDC IXIS Financial Guaranty	HRB	Housing Revenue Bonds	SONYMA	State of New York Mortgage Agency
COP	Certificates of Participation	IDA	Industrial Development Authority	Syncora	Syncora Guarantee
EDA	Economic Development Authority	IDB	Industrial Development Board

See Notes to Financial Statements.

SEMI-ANNUAL REPORT DECEMBER 31, 2015 15

Schedule of Investments (continued) BlackRock High Yield Municipal Fund

Municipal Bonds	Par   (000)		Value
California (continued)
Lammersville School District Community Facilities District, Special Tax Bonds, District No. 2002, Mountain House, 5.13%, 9/01/35	$	325	$	330,262
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		661,710
Temecula Public Financing Authority, Refunding, Special Tax Bonds, Harveston, Sub-Series B, 5.10%, 9/01/36		165		165,964
Tobacco Securitization Authority of Southern California, Refunding RB:
Senior Series A1, 5.13%, 6/01/46		2,590		2,352,704
Tobacco Settlement, Asset-Backed, Senior Series A-1, 4.75%, 6/01/25		955		955,172
				38,976,834
Colorado — 2.9%
Castle Oaks Metropolitan District No. 3, GO, 6.25%, 12/01/44		535		538,280
Central Platte Valley Metropolitan District, GO, 5.00%, 12/01/43		1,250		1,297,100
Colorado Educational & Cultural Facilities Authority, RB, Littleton Preparatory Charter School Project:
5.00%, 12/01/33		450		460,809
5.00%, 12/01/42		545		549,414
Colorado Health Facilities Authority, Refunding RB, Series A:
6.13%, 12/01/45		375		380,400
6.25%, 12/01/50		1,235		1,253,142
Copperleaf Metropolitan District No 2, GO, Refunding, 5.75%, 12/01/45		780		815,591
Denver Convention Center Hotel Authority, Refunding RB, Senior (Syncora), 5.00%, 12/01/30		1,175		1,196,608
Denver Health & Hospital Authority, RB, Series A:
5.00%, 12/01/39		900		981,567
5.25%, 12/01/45		1,350		1,491,453
Foothills Metropolitan District, Special Assessment Bonds, 6.00%, 12/01/38		5,995		6,415,130
Regional Transportation District, RB, Denver Transit Partners Eagle P3 Project:
6.00%, 1/15/34		1,500		1,693,680
6.00%, 1/15/41		1,000		1,125,140
				18,198,314
Connecticut — 0.8%
Mohegan Tribal Finance Authority, RB, 7.00%, 2/01/45 (b)		1,515		1,388,528
Mohegan Tribe of Indians of Connecticut, RB, Series A, 6.75%, 2/01/45 (b)		1,435		1,466,656
Mohegan Tribe of Indians of Connecticut, Refunding RB, Public Improvement, Priority Distribution, Series C, 6.25%, 2/01/30 (b)		2,045		2,040,317
				4,895,501
Delaware — 0.8%
Delaware State EDA, RB, Exempt Facilities, Indian River Power LLC Project, 5.38%, 10/01/45		5,115		5,288,859
District of Columbia — 1.2%
District of Columbia Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed:
6.50%, 5/15/33		3,050		3,771,234
6.75%, 5/15/40		385		385,073

Municipal Bonds	Par   (000)		Value
District of Columbia (continued)
Metropolitan Washington Airports Authority, Refunding RB:
CAB, 2nd Senior Lien, Series B (AGC), 0.00%, 10/01/30 (c)	$	3,005	$	1,706,299
Dulles Toll Road, 1st Senior Lien, Series A, 5.00%, 10/01/39		185		204,862
Dulles Toll Road, 1st Senior Lien, Series A, 5.25%, 10/01/44		1,610		1,790,368
				7,857,836
Florida — 7.4%
Boggy Creek Improvement District, Refunding RB, Special Assessment Bonds, 5.13%, 5/01/43		1,435		1,493,132
Capital Trust Agency, Inc., RB, 1st Mortgage, Silver Creek St. Augustine Project:
8.25%, 1/01/44		445		408,127
8.25%, 1/01/49		950		871,653
Celebration Pointe Community Development District, Special Assessment Bonds:
4.75%, 5/01/24		625		633,119
5.00%, 5/01/34		1,250		1,266,925
County of Alachua Florida Health Facilities Authority, RB:
5.00%, 12/01/44		2,720		2,995,074
East Ridge Retirement Village, Inc. Project, 6.25%, 11/15/44		2,000		2,219,600
County of Collier Florida IDA, Refunding RB, Arlington of Naples Project, Series A, 8.13%, 5/15/44 (b)		1,490		1,763,758
County of Hillsborough Florida IDA, RB, Tampa General Hospital Project, 5.25%, 10/01/41		895		914,824
County of Martin Florida Health Facilities Authority, RB, 5.50%, 11/15/42		1,000		1,112,580
County of Miami-Dade Florida IDA, RB, Series A:
5.00%, 6/01/35		1,425		1,460,440
5.00%, 6/01/40		1,945		1,975,595
5.00%, 6/01/48		2,825		2,854,493
County of Palm Beach Florida Health Facilities Authority, RB, Acts Retirement Life Community, 5.50%, 11/15/33		1,500		1,650,885
County of Palm Beach Florida Health Facilities Authority, Refunding RB, Sinai Residences Boca Raton Project, 7.50%, 6/01/49		1,000		1,196,070
Florida Development Finance Corp., RB, Renaissance Charter School, Series A:
5.75%, 6/15/29		695		712,743
6.00%, 6/15/34		835		858,923
6.13%, 6/15/44		3,225		3,292,015
Greater Orlando Aviation Authority Florida, Refunding RB, Special Purpose, Jetblue Airways Corp. Project, AMT, 5.00%, 11/15/36		2,000		2,064,200
Greeneway Improvement District, RB, Special Assessment Bonds, 5.13%, 5/01/43		1,450		1,508,739
Jacksonville Economic Development Commission, RB, Gerdau Ameristeel U.S. Inc., AMT, 5.30%, 5/01/37		3,300		3,306,006
Lakewood Ranch Stewardship District, Refunding, Special Assessment Bonds, Lakewood Center & New Sector Projects, 8.00%, 5/01/40		515		638,425
Lakewood Ranch Stewardship District, Special Assessment Bonds:
4.25%, 5/01/25		195		199,659
4.88%, 5/01/35		290		295,780
4.88%, 5/01/45		580		587,256
Mid-Bay Bridge Authority, RB, Springing Lien, Series A, 7.25%, 10/01/21 (d)		1,450		1,900,152
Midtown Miami Community Development District, Refunding, Special Assessment Bonds, Series A:
5.00%, 5/01/29		1,750		1,867,057
5.00%, 5/01/37		890		940,819

See Notes to Financial Statements.

16 SEMI-ANNUAL REPORT DECEMBER 31, 2015

Schedule of Investments (continued) BlackRock High Yield Municipal Fund

Municipal Bonds	Par   (000)		Value
Florida (continued)
Pine Island Community Development District, RB, 5.30%, 11/01/10 (e)(f)	$	1,355	$	760,074
Santa Rosa Bay Bridge Authority, RB, 6.25%, 7/01/28 (e)(f)		421		172,318
Tolomato Community Development District, Refunding, Special Assessment Bonds:
Convertible CAB, Series A2, 0.00%, 5/01/39 (g)		40		30,000
Convertible CAB, Series A3, 0.00%, 5/01/40 (g)		90		53,807
Convertible CAB, Series A4, 0.00%, 5/01/40 (g)		50		22,133
Series 2, 0.00%, 5/01/40		125		65,164
Series A1, 6.65%, 5/01/40		140		141,824
Tolomato Community Development District:
Series 1, 0.00%, 5/01/40 (g)		205		126,358
Series 1, 6.65%, 5/01/40 (e)(f)		5		5,107
Series 3, 6.61%, 5/01/40 (e)(f)		135		1
Series 3, 6.65%, 5/01/40 (e)(f)		105		1
Viera East Community Development District, Refunding, Special Assessment Bonds, 5.00%, 5/01/26		640		670,720
Village Community Development District No. 10, Special Assessment Bonds, 5.13%, 5/01/43		1,690		1,871,016
Village Community Development District No. 9, Special Assessment Bonds:
7.00%, 5/01/41		1,430		1,750,735
5.50%, 5/01/42		530		608,191
				47,265,498
Georgia — 0.8%
County of Clayton Georgia, Tax Allocation Bonds, Ellenwood Project, 7.50%, 7/01/33		120		124,822
County of Clayton Georgia Development Authority, Refunding RB, Delta Air Lines, Inc. Project, Series A, 8.75%, 6/01/29		635		776,707
County of Gainesville & Hall Georgia Development Authority, Refunding RB, Acts Retirement Life Community, Series A-2, 6.63%, 11/15/39		225		255,082
County of Gainesville Georgia & Hall Hospital Authority, Refunding RB, Northeast Georgia Health System, Inc. Project, Series A, 5.50%, 8/15/54		555		655,277
Municipal Electric Authority of Georgia, RB, Plant Vogtle Units 3 & 4 Project, Series A, 5.00%, 7/01/60		1,635		1,773,828
Private Colleges & Universities Authority, RB, Savannah College of Art & Design, 5.00%, 4/01/44		1,075		1,180,737
				4,766,453
Guam — 1.1%
Guam Government Waterworks Authority, RB, Water & Wastewater System, 5.50%, 7/01/43		1,520		1,728,681
Territory of Guam, GO, Series A:
6.00%, 11/15/19		80		88,662
6.75%, 11/15/19 (d)		1,650		1,997,028
7.00%, 11/15/19 (d)		2,660		3,244,535
				7,058,906
Hawaii — 0.2%
State of Hawaii Department of Budget & Finance, Refunding RB, 5.00%, 1/01/45 (b)		1,345		1,355,666
Idaho — 0.2%
County of Power Idaho Industrial Development Corp., RB, FMC Corp. Project, AMT, 6.45%, 8/01/32		265		265,541
Idaho Housing & Finance Association, 5.00%, 12/01/46 (b)		1,000		1,011,540
				1,277,081
Illinois — 5.0%
Chicago O’Hare International Airport, Refunding RB, AMT, 5.00%, 1/01/46		3,000		3,281,820

Municipal Bonds	Par   (000)		Value
Illinois (continued)
City of Chicago Illinois, GO, Refunding, Series A, 5.00%, 1/01/36	$	3,000	$	2,970,090
City of Chicago Illinois, GO, Series A, 5.25%, 1/01/35		4,500		4,547,250
Illinois Finance Authority, RB, Lake Forest College, Series A, 6.00%, 10/01/48		1,700		1,861,381
Illinois Finance Authority, Refunding RB:
Central Dupage Health, Series B, 5.50%, 11/01/39		1,400		1,598,268
Friendship Village of Schaumburg, 7.13%, 2/15/39		1,000		1,068,420
Lutheran Home & Services Obligated Group, 5.63%, 5/15/42		2,805		2,964,857
Rogers Park Montessori School Project, Series 2014, 6.00%, 2/01/34		335		350,464
Rogers Park Montessori School Project, Series 2014, 6.13%, 2/01/45		790		817,144
Roosevelt University Project, 6.50%, 4/01/44		830		905,455
Swedish Covenant, Series A, 6.00%, 8/15/38		1,000		1,113,420
Metropolitan Pier & Exposition Authority, RB, McCormick Place Expansion Project, Series A, 5.50%, 6/15/53		3,925		4,312,555
Metropolitan Pier & Exposition Authority, Refunding RB, CAB, McCormick Place Expansion Project, Series B (AGM), 0.00%, 6/15/44 (c)		3,455		895,916
Quad Cities Regional EDA, Refunding RB, Augustana College, 4.75%, 10/01/32		675		715,304
Railsplitter Tobacco Settlement Authority, RB, 6.00%, 6/01/28		390		465,262
State of Illinois, GO:
5.00%, 2/01/39		500		522,280
Series A, 5.00%, 4/01/35		1,460		1,534,124
Series A, 5.00%, 4/01/38		2,190		2,284,477
				32,208,487
Indiana — 1.8%
City of Carmel Indiana, RB, Barrington Carmel Project, Series A:
7.13%, 11/15/42		1,500		1,686,120
7.13%, 11/15/47		1,500		1,681,485
City of Valparaiso Indiana, RB, Exempt Facilities, Pratt Paper LLC Project, AMT:
6.75%, 1/01/34		525		637,849
7.00%, 1/01/44		1,270		1,554,975
City of Vincennes Indiana, Refunding RB, Southwest Indiana Regional Youth Village, 6.25%, 1/01/24		650		609,005
Indiana Finance Authority, RB, Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, Series A:
5.25%, 1/01/51		2,500		2,696,750
5.00%, 7/01/44		370		395,874
5.00%, 7/01/48		1,230		1,310,503
Indiana Finance Authority, Refunding RB, Marquette Project, 5.00%, 3/01/39		725		761,808
				11,334,369
Iowa — 3.0%
Iowa Finance Authority, Refunding RB:
Development, Care Initiatives Project, Series A, 5.00%, 7/01/19		500		505,985
Midwestern Disaster Area, Iowa Fertilizer Co. Project, 5.50%, 12/01/22		3,295		3,476,126
Sunrise Retirement Community Project, 5.50%, 9/01/37		890		907,827
Sunrise Retirement Community Project, 5.75%, 9/01/43		1,385		1,427,866
Iowa Student Loan Liquidity Corp., Refunding RB, AMT, Senior Series A-1, 5.00%, 12/01/21		3,355		3,528,185

See Notes to Financial Statements.

SEMI-ANNUAL REPORT DECEMBER 31, 2015 17

Schedule of Investments (continued) BlackRock High Yield Municipal Fund

Municipal Bonds	Par   (000)		Value
Iowa (continued)
Iowa Tobacco Settlement Authority, Refunding RB:
Asset-Backed, CAB, Series B, 5.60%, 6/01/34	$	1,200	$	1,200,096
Asset-Backed, Series C, 5.50%, 6/01/42		2,000		1,916,160
Asset-Backed, Series C, 5.63%, 6/01/46		3,345		3,274,253
Series C, 5.38%, 6/01/38		3,075		2,949,263
				19,185,761
Kentucky — 0.6%
Kentucky Economic Development Finance Authority, Refunding RB, Norton Healthcare, Inc., Series B (NPFGC), 0.00%, 10/01/24 (c)		250		189,935
Kentucky Public Transportation Infrastructure Authority, RB, 6.00%, 7/01/53		3,000		3,458,430
				3,648,365
Louisiana — 1.3%
Juban Crossing Economic Development District, Refunding RB, General Infrastructure Project, Series C, 7.00%, 9/15/44 (b)		1,125		1,137,746
Louisiana Local Government Environmental Facilities & Community Development Authority, RB, Westlake Chemical Corp., Series A-2, 6.50%, 11/01/35		1,630		1,930,751
Louisiana Public Facilities Authority, RB, Belle Chasse Educational Foundation Project, 6.75%, 5/01/41		645		719,549
Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, Series A, 5.25%, 5/15/35		3,910		4,370,481
				8,158,527
Maine — 0.2%
Maine Health & Higher Educational Facilities Authority, RB, Maine General Medical Center, 6.75%, 7/01/41		1,075		1,219,663
Maryland — 1.1%
City of Gaithersburg Maryland, Refunding RB, Asbury Maryland Obligation, Series B, 6.00%, 1/01/23		750		837,817
County of Frederick Maryland, RB, Jefferson Technology Park Project, Series B, 7.13%, 7/01/43		2,910		3,286,816
Maryland EDC, RB:
Term Project, Series B, 5.75%, 6/01/35		1,500		1,638,885
Transportation Facilities Project, Series A, 5.75%, 6/01/35		265		289,841
Maryland EDC, Refunding RB, University of Maryland Project, 5.00%, 7/01/39		950		1,013,631
				7,066,990
Massachusetts — 2.3%
Massachusetts Development Finance Agency, RB:
Boston Medical Center, Series D, 4.00%, 7/01/45		2,015		2,034,062
Boston Medical Center, Series D, 5.00%, 7/01/44		5,865		6,426,750
Foxborough Regional Charter School, Series A, 7.00%, 7/01/42		350		395,311
Linden Ponds, Inc. Facility, Series A-1, 6.25%, 11/15/39		353		338,634
Linden Ponds, Inc. Facility, Series A-2, 5.50%, 11/15/46		19		16,148
Linden Ponds, Inc. Facility, Series B, 0.00%, 11/15/56 (c)		94		543
North Hill Communities Issue, Series A, 6.50%, 11/15/43 (b)		1,480		1,612,859
Massachusetts Development Finance Agency, Refunding RB:
Covanta Energy Project, Series C, AMT, 5.25%, 11/01/42 (b)		3,000		3,013,800
Tufts Medical Center, Series I, 6.75%, 1/01/36		510		599,740
				14,437,847

Municipal Bonds	Par   (000)		Value
Michigan — 1.4%
City of Detroit Michigan, GO, Financial Recovery (h):
Series B-1, 4.00%, 4/01/44	$	170	$	93,240
Series B-2, 4.00%, 4/01/44		54		24,674
County of Monroe Michigan Hospital Finance Authority, Refunding RB, Mercy Memorial Hospital Corp., Obligation, 5.50%, 6/01/16 (d)		1,565		1,598,554
Kentwood EDC, Refunding RB, Limited Obligation, Holland Home, 5.63%, 11/15/41		1,000		1,059,250
Michigan Finance Authority, RB, Detroit Water & Sewage Disposal System, Senior Lien, Series 2014 C-2, AMT, 5.00%, 7/01/44		350		371,297
Michigan Finance Authority, Refunding RB, Detroit Water & Sewage Department Project, Senior Lien, Series C-1, 5.00%, 7/01/44		800		862,952
Michigan State Hospital Finance Authority, Refunding RB, Henry Ford Health System, 5.75%, 11/15/39		1,710		1,945,689
Michigan Tobacco Settlement Finance Authority, Refunding RB, Series A, 6.88%, 6/01/42		3,180		3,254,412
				9,210,068
Minnesota — 0.7%
City of Cologne Minnesota Charter School, LRB, Cologne Academy Project, Series A, 5.00%, 7/01/45		2,065		2,112,949
City of Deephaven Minnesota, Refunding RB, Eagle Ridge Academy Project, Series A, 5.25%, 7/01/40		500		513,930
City of Rochester Minnesota, RB, Health Care And Facility Homestead Rochester Incorporate, 5.00%, 12/01/49		1,445		1,483,625
St. Paul Housing & Redevelopment Authority, RB, Nova Classical Academy, Series A, 6.63%, 9/01/42		500		565,455
				4,675,959
Missouri — 1.2%
City of Kansas Missouri IDA (a)(b):
5.75%, 11/15/36		1,400		1,402,072
6.00%, 11/15/46		1,000		1,010,660
6.00%, 11/15/51		560		560,817
City of Kirkwood Missouri IDA, RB, Aberdeen Heights, Series A, 8.25%, 5/15/39		435		493,151
Lees Summit Industrial Development Authority, RB, John Knox Obligated Group, 5.25%, 8/15/39		1,890		1,950,707
Poplar Bluff Regional Transportation Development District, RB, 4.75%, 12/01/42		2,200		2,286,636
				7,704,043
Nebraska — 0.1%
Central Plains Energy Project Nebraska, RB, Gas Project No. 3, 5.00%, 9/01/42		780		846,097
Nevada — 0.2%
County of Clark Nevada, RB, Southwest Gas Corp. Project, Series A, AMT (NPFGC), 4.75%, 9/01/36		20		20,110
County of Clark Nevada, Refunding, Special Assessment, Special Improvement District No. 142, Mountain’s Edge:
4.00%, 8/01/22		775		794,382
4.00%, 8/01/23		485		490,985
				1,305,477
New Hampshire — 0.1%
New Hampshire Health & Education Facilities Authority, Refunding RB, Dartmouth-Hitchcock, 6.00%, 8/01/38		435		498,119
New Jersey — 5.4%
Casino Reinvestment Development Authority, Refunding RB, 5.25%, 11/01/44		5,750		5,888,345
County of Essex New Jersey Improvement Authority, RB, AMT, 5.25%, 7/01/45 (b)		1,155		1,197,077

See Notes to Financial Statements.

18 SEMI-ANNUAL REPORT DECEMBER 31, 2015

Schedule of Investments (continued) BlackRock High Yield Municipal Fund

Municipal Bonds	Par   (000)		Value
New Jersey (continued)
County of Gloucester New Jersey Pollution Control Financing Authority, Refunding RB, Logan Project, Series A, AMT, 5.00%, 12/01/24	$	1,500	$	1,693,080
New Jersey EDA, RB:
Continental Airlines, Inc. Project, AMT, 4.88%, 9/15/19		850		895,237
Continental Airlines, Inc. Project, AMT, 5.13%, 9/15/23		1,965		2,158,356
Continental Airlines, Inc. Project, AMT, 5.25%, 9/15/29		840		918,027
Kapkowski Road Landfill Project, Series B, AMT, 6.50%, 4/01/31		3,000		3,578,190
Team Academy Charter School Project, 6.00%, 10/01/43		970		1,095,363
Goethals Bridge Replacement Project, AMT, 5.38%, 1/01/43		1,360		1,499,672
New Jersey Health Care Facilities Financing Authority, Refunding RB, St. Joseph’s Healthcare System, 6.63%, 7/01/38		725		801,879
New Jersey Transportation Trust Fund Authority, RB, Transportation Program, Series AA:
5.25%, 6/15/41		1,265		1,358,559
5.00%, 6/15/44		3,755		3,912,560
Tobacco Settlement Financing Corp., New Jersey, Refunding RB, Series 1A:
5.00%, 6/01/29		3,730		3,396,128
5.00%, 6/01/41		7,495		6,213,355
				34,605,828
New Mexico — 0.3%
New Mexico Hospital Equipment Loan Council, Refunding RB, Gerald Champion Regional Medical Center Project, 5.50%, 7/01/42		2,030		2,153,871
New York — 10.9%
Build New York City Resource Corp., RB:
5.50%, 11/01/44		1,970		2,104,748
South Bronx Charter School for International Cultures and the Arts Project, Series A, 5.00%, 4/15/43		2,750		2,796,833
Chautauqua Tobacco Asset Securitization Corp., Refunding RB, 5.00%, 6/01/48		4,475		4,474,105
City of New York New York Industrial Development Agency, ARB, American Airlines, Inc., JFK International Airport Project, AMT (h):
8.00%, 8/01/28		235		245,982
Series B, 2.00%, 8/01/28		7,170		7,183,838
Counties of New York Tobacco Trust II, RB, Settlement Pass-Through, 5.75%, 6/01/43		2,905		2,920,977
Counties of New York Tobacco Trust IV, Refunding RB, Settlement Pass-Through Turbo, Series A, 6.25%, 6/01/41 (b)		8,300		8,659,141
County of Dutchess New York Industrial Development Agency, Refunding RB, Bard College Civic Facility, 5.00%, 8/01/46		3,400		3,221,670
County of Westchester New York Healthcare Corp., RB, Senior Lien, Series A, 5.00%, 11/01/44		1,448		1,611,193
Erie Tobacco Asset Securitization Corp., Refunding RB, Asset-Backed, Series A, 5.00%, 6/01/45		3,110		3,003,047
New York Liberty Development Corp., Refunding RB:
2nd Priority, Bank of America Tower at One Bryant Park Project, Class 3, 6.38%, 7/15/49		375		423,180
3 World Trade Center Project, Class 1, 5.00%, 11/15/44 (b)		7,365		7,603,773
3 World Trade Center Project, Class 2, 5.15%, 11/15/34 (b)		450		473,873

Municipal Bonds	Par   (000)		Value
New York (continued)
New York Liberty Development Corp., Refunding RB (continued):
3 World Trade Center Project, Class 2, 5.38%, 11/15/40 (b)	$	1,070	$	1,136,201
3 World Trade Center Project, Class 3, 7.25%, 11/15/44 (b)		3,115		3,761,082
Goldman Sachs Headquarters, 5.25%, 10/01/35		3,775		4,553,896
Niagara Area Development Corp., Refunding RB, Solid Waste Disposal Facility, Covanta Energy Project, Series A, AMT, 5.25%, 11/01/42 (b)		3,895		3,927,445
Onondaga Civic Development Corp., Refunding RB, St. Joseph’s Hospital Health Center Project, 5.00%, 7/01/22 (d)		1,220		1,464,293
Rensselaer Tobacco Asset Securitization Corp., RB, Asset-Backed, Series A, 5.75%, 6/01/43		2,500		2,500,575
Rockland Tobacco Asset Securitization Corp., RB, Asset-Backed, 5.75%, 8/15/43		690		690,159
TSASC, Inc., Refunding RB, Series 1, 5.00%, 6/01/34		1,245		1,197,117
Westchester Tobacco Asset Securitization, Refunding RB, 5.13%, 6/01/45		5,600		5,599,776
				69,552,904
North Carolina — 0.9%
North Carolina Department of Transportation, RB, I-77 Hot Lanes Project, 5.00%, 6/30/54		1,385		1,454,998
North Carolina Medical Care Commission, Refunding RB:
1st Mortgage, Retirement Facilities Whitestone Project, Series A, 7.75%, 3/01/41		3,055		3,501,855
Carolina Village Project, 6.00%, 4/01/38		1,000		1,048,310
				6,005,163
Ohio — 2.9%
County of Allen Ohio, Refunding RB, Series A, 4.00%, 11/01/44		2,410		2,438,558
Buckeye Tobacco Settlement Financing Authority, RB, Series A-2, Asset-Backed:
Bonds, 5.75%, 6/01/34		4,460		3,889,254
Senior Turbo Term, 5.88%, 6/01/47		8,555		7,391,606
City of Cleveland Ohio, Refunding RB, AMT, 5.70%, 12/01/19		1,240		1,243,336
Port of Greater Cincinnati Development Authority, 5.25%, 12/01/50		740		738,786
State of Ohio, RB, Portsmouth Bypass Project, AMT, 5.00%, 6/30/53		2,410		2,612,247
				18,313,787
Oklahoma — 0.4%
Oklahoma Development Finance Authority, Refunding RB, Inverness Village Community, 6.00%, 1/01/32		695		733,962
Tulsa Airports Improvement Trust, Refunding RB, American Airlines Inc., AMT, 5.00%, 6/01/35 (h)		1,425		1,583,944
				2,317,906
Oregon — 0.3%
Polk County Hospital Facility Authority, RB, Dallas Retirement Village Project, Series A:
5.13%, 7/01/35		620		625,574
5.38%, 7/01/45		1,445		1,457,831
				2,083,405
Pennsylvania — 4.3%
Allentown Neighborhood Improvement Zone Development Authority, Refunding RB, Series A:
5.00%, 5/01/35		1,185		1,262,712
5.00%, 5/01/42		2,730		2,878,130

See Notes to Financial Statements.

SEMI-ANNUAL REPORT DECEMBER 31, 2015 19

Schedule of Investments (continued) BlackRock High Yield Municipal Fund

Municipal Bonds	Par   (000)		Value
Pennsylvania (continued)
City of Philadelphia Pennsylvania Hospitals & Higher Education Facilities Authority, RB, Temple University Health System, Series A, 5.63%, 7/01/36	$	3,000	$	3,246,300
County of Cumberland Pennsylvania Municipal Authority, Refunding RB, Diakon Lutheran:
6.38%, 1/01/19 (d)		2,415		2,785,268
6.38%, 1/01/39		265		302,005
County of Lancaster Pennsylvania Hospital Authority, Refunding RB, Brethren Village Project, Series A, 6.50%, 7/01/40		835		861,653
County of Lehigh Pennsylvania General Purpose Authority, Refunding RB, Bible Fellowship Church Homes, 5.13%, 7/01/32		745		777,281
County of Montgomery Pennsylvania IDA, RB, New Hampshire School III Properties Project, 6.50%, 10/01/37		3,000		3,033,750
County of Northampton Pennsylvania IDA, Route 33 Project, Tax Allocation Bond, 7.00%, 7/01/32		1,345		1,468,579
East Hempfield Township Industrial Development Authority, RB:
5.00%, 7/01/34		1,000		1,055,960
5.00%, 7/01/46		1,750		1,825,057
Pennsylvania Economic Development Financing Authority, RB:
AMT, Pennsylvania Bridge Finco LP, 5.00%, 6/30/42		895		975,935
U.S. Airways Group, Series A, 7.50%, 5/01/20		1,200		1,377,312
Pennsylvania Economic Development Financing Authority, Refunding RB, National Gypson Co., AMT, 5.50%, 11/01/44		5,390		5,595,736
				27,445,678
Puerto Rico — 0.1%
Children’s Trust Fund, Refunding RB, Series A, 0.00%, 5/15/50 (c)		3,935		325,385
Puerto Rico Commonwealth Aqueduct & Sewer Authority, RB, Series A, 6.00%, 7/01/44		400		269,048
				594,433
Rhode Island — 1.9%
Tobacco Settlement Financing Corp., Refunding RB:
Series A, 5.00%, 6/01/40		1,000		1,044,250
Series B, 4.50%, 6/01/45		4,705		4,744,428
Series B, 5.00%, 6/01/50		5,900		6,042,249
				11,830,927
South Carolina — 1.8%
South Carolina State Public Service Authority, Refunding RB, Series E, 5.25%, 12/01/55		10,200		11,511,108
Texas — 6.9%
Arlington Higher Education Finance Corp., RB, Series A, 5.88%, 3/01/24		500		515,475
Brazos River Authority, RB, TXU Electric, Series A, AMT, 8.25%, 10/01/30 (e)(f)		750		26,250
Central Texas Regional Mobility Authority, Refunding RB:
CAB, 0.00%, 1/01/28 (c)		3,000		1,878,390
CAB, 0.00%, 1/01/29 (c)		500		298,790
CAB, 0.00%, 1/01/30 (c)		1,330		761,824
CAB, 0.00%, 1/01/31 (c)		4,000		2,188,880
Senior Lien, 6.25%, 1/01/46		765		883,873
Central Texas Transportation Commission Turnpike System, Refunding RB, Series C, 5.00%, 8/15/42		12,995		14,383,516
City of Houston Texas Airport System, Refunding ARB:
Senior Lien, Series A, 5.50%, 7/01/39		120		131,891
Special Facilities, Continental Airlines, Inc., Series A, AMT, 6.63%, 7/15/38		1,110		1,283,260

Municipal Bonds	Par   (000)		Value
Texas (continued)
City of Houston Texas Airport System, Refunding ARB (continued):
United Airlines, Inc. Terminal E Project, AMT, 5.00%, 7/01/29	$	1,000	$	1,082,700
Clifton Higher Education Finance Corp., ERB, Idea Public Schools:
5.50%, 8/15/31		255		282,458
5.75%, 8/15/41		280		313,404
County of Bexar Texas Health Facilities Development Corp., RB, Army Retirement Residence Project, 6.20%, 7/01/45		1,320		1,492,418
County of Harris Texas Cultural Education Facilities Finance Corp., Refunding, MRB, Brazos Presbyterian Homes, Inc. Project, Series A:
5.00%, 1/01/38		510		519,343
5.00%, 1/01/43		520		527,046
5.13%, 1/01/48		1,535		1,553,451
County of Harris Texas Houston Sports Authority, Refunding RB, CAB, Senior Lien, Series G (NPFGC), 0.00%, 11/15/41 (c)		350		98,837
County of Matagorda Texas Navigation District No. 1, Refunding RB, Central Power & Light Co., Project, Series A, 6.30%, 11/01/29		290		329,890
County of Tarrant Texas Cultural Education Facilities Finance Corp., RB:
Buckingham Senior Living Community, Inc. Project, 5.50%, 11/15/45		410		423,534
CC Young Memorial Home, Series A, 8.00%, 2/15/38		330		371,537
Senior Living Center Project, Series A, 8.25%, 11/15/44		800		808,088
County of Travis Texas Health Facilities Development Corp., Refunding RB, 7.13%, 1/01/46		1,920		2,147,520
Danbury Higher Education Authority, Inc., RB, A.W. Brown Fellowship Charter, Series A (ACA), 5.00%, 8/15/16 (d)		20		20,573
Houston Higher Education Finance Corp., RB, Cosmos Foundation, Inc., 6.50%, 5/15/21 (d)		535		677,171
Mesquite Health Facility Development Corp., Refunding RB, 5.13%, 2/15/42		690		719,987
New Hope Cultural Education Facilities Corp., RB, Stephenville LLC Tarleton State University Project:
5.88%, 4/01/36		890		1,003,609
6.00%, 4/01/45		1,355		1,534,930
Newark Higher Education Finance Corp., RB, Series A (b):
5.50%, 8/15/35		325		331,055
5.75%, 8/15/45		645		653,991
Red River Health Facilities Development Corp., First MRB, Project:
Eden Home, Inc., 7.25%, 12/15/42		1,330		1,171,730
Wichita Falls Retirement Foundation, 5.13%, 1/01/41		600		618,174
Tarrant County Cultural Education Facilities Finance Corp., Refunding RB, 4.75%, 11/15/35		110		109,854
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		1,213,240
NTE Mobility Partners LLC, North Tarrant Express Managed Lanes Project, 6.88%, 12/31/39		1,740		2,042,551
Town of Flower Mound Texas, Special Assessment Bonds, 6.50%, 9/01/36		1,500		1,571,280
				43,970,520

See Notes to Financial Statements.

20 SEMI-ANNUAL REPORT DECEMBER 31, 2015

Schedule of Investments (continued) BlackRock High Yield Municipal Fund

Municipal Bonds	Par   (000)		Value
Utah — 0.8%
State of Utah Charter School Finance Authority, RB, Navigator Pointe Academy, Series A, 5.63%, 7/15/40	$	1,000	$	1,065,110
State of Utah Charter School Finance Authority, Refunding RB, 6.75%, 10/15/43		2,050		2,152,725
Utah Charter School Finance Authority, RB, 6.00%, 4/15/45 (b)		2,000		2,087,140
				5,304,975
Virginia — 3.7%
County of Fairfax Virginia EDA, Refunding RB, Goodwin House, Inc., 5.13%, 10/01/42		1,185		1,228,999
County of Hanover Virginia EDA, Refunding RB, Covenant Woods, Series A:
5.00%, 7/01/42		2,000		2,053,560
Residential Care Facility, 5.00%, 7/01/47		1,015		1,040,243
Lower Magnolia Green Community Development Authority, Special Assessment Bonds (b):
5.00%, 3/01/35		505		509,772
5.00%, 3/01/45		520		521,482
Mosaic District Community Development Authority, Special Assessment, Series A:
6.63%, 3/01/26		515		594,645
6.88%, 3/01/36		450		518,112
Virginia College Building Authority, RB, Marymount University Project, Series B, 5.00%, 7/01/45 (b)		535		545,952
Virginia College Building Authority, Refunding RB, Marymount University Project, Series A (b):
Series A, 5.00%, 7/01/35		125		129,985
5.00%, 7/01/45		375		382,676
Virginia Small Business Financing Authority, RB, Senior Lien, AMT:
Elizabeth River Crossings OpCo LLC Project, 6.00%, 1/01/37		4,095		4,718,996
Express Lanes LLC, 5.00%, 7/01/34		3,300		3,539,943
Wise County Industrial Development Authority, RB, 1.88%, 11/01/40 (h)		7,800		7,864,428
				23,648,793
Washington — 0.5%
County of King Washington Public Hospital District No. 4, GO, Refunding, Snoqualmie Valley Hospital, 7.00%, 12/01/40		545		598,160
Greater Wenatchee Regional Events Center Public Facilities District, Refunding RB, Series A, 5.50%, 9/01/42		1,005		1,056,064
Washington State Housing Finance Commission, RB, Heron’s Key, Series A (b):
6.75%, 7/01/35		100		104,196
7.00%, 7/01/45		100		103,790
Washington State Housing Finance Commission, Refunding RB (b):
5.75%, 1/01/35		355		358,724
6.00%, 1/01/45		940		949,757
				3,170,691
Wisconsin — 1.7%
Public Finance Authority, RB, Series A:
4.75%, 12/01/35		870		867,747
5.00%, 12/01/45		2,100		2,101,533
5.15%, 12/01/50		1,315		1,307,754
Voyager Foundation, Inc. Project, 5.13%, 10/01/45		1,850		1,875,123
Public Finance Authority, Refunding RB, Senior Obligated Group, Series B, AMT, 5.00%, 7/01/42		2,150		2,238,279

Municipal Bonds	Par   (000)		Value
Wisconsin (continued)
Wisconsin Health & Educational Facilities Authority, Refunding RB:
Mile Bluff Medical Center, 5.50%, 5/01/34	$	875	$	925,216
Mile Bluff Medical Center, 5.75%, 5/01/39		1,065		1,126,621
St. Johns Communities, Inc., Series A, 7.25%, 9/15/19 (d)		75		89,893
St. Johns Communities, Inc., Series A, 7.63%, 9/15/19 (d)		145		177,731
				10,709,897
Total Municipal Bonds — 86.6%				553,104,908
Municipal Bonds Transferred to Tender Option Bond Trusts (i)
California — 0.4%
Bay Area Toll Authority, Refunding RB, San Francisco Bay Area, Series F-1, 5.63%, 4/01/19 (d)		480		550,396
City of Los Angeles California Department of Airports, Refunding ARB, Los Angeles International Airport, Senior Series A, 5.00%, 5/15/40		1,678		1,894,938
				2,445,334
Colorado — 1.0%
Colorado Health Facilities Authority, Refunding RB, Sisters of Leavenworth Health System, Series A, 5.00%, 1/01/40		5,592		6,172,650
District of Columbia — 0.2%
District of Columbia Water & Sewer Authority, Refunding RB, Senior Lien, Series A, 6.00%, 10/01/18 (d)(j)		939		1,066,081
Florida — 0.6%
County of Miami-Dade Florida, RB, Water & Sewer System, 5.00%, 10/01/34		3,499		3,969,010
Illinois — 1.9%
Illinois Finance Authority, RB, The Carle Foundation, Series A (AGM), 6.00%, 8/15/41		2,480		2,933,989
City of Chicago Illinois, GARB, O’Hare International Airport, 3rd Lien, Series A (NPFGC), 5.00%, 1/01/33 (j)		3,493		3,493,252
State of Illinois Toll Highway Authority, RB, Senior Priority, Series A, 5.00%, 1/01/40		5,011		5,731,422
				12,158,663
New York — 7.3%
Hudson Yards Infrastructure Corp., RB, Fiscal 2012, Series A, 5.75%, 2/15/47 (j)		1,720		1,993,801
New York State Dormitory Authority, Refunding RB, Series E, 5.00%, 3/15/36		21,671		25,575,922
New York Liberty Development Corp., RB, 1 World Trade Center Port Authority Consolidated Bonds, 5.25%, 12/15/43		7,725		8,935,059
New York Liberty Development Corp., Refunding RB, 4 World Trade Center Project, 5.75%, 11/15/51 (j)		2,520		2,925,946
Port Authority of New York & New Jersey, Refunding ARB, 194th Series, 5.25%, 10/15/55		2,925		3,438,835
City of New York New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System, 2nd General Resolution, Series HH, 5.00%, 6/15/31 (j)		3,015		3,481,330
				46,350,893

See Notes to Financial Statements.

SEMI-ANNUAL REPORT DECEMBER 31, 2015 21

Schedule of Investments (continued) BlackRock High Yield Municipal Fund

Municipal Bonds Transferred to Tender Option Bond Trusts (i)	Par   (000)		Value
North Carolina — 0.5%
North Carolina Capital Facilities Finance Agency, Refunding RB, Duke University Project, 5.00%, 10/01/55	$	2,930	$	3,392,530
Ohio — 0.3%
State of Ohio, Refunding RB, Cleveland Clinic Health System Obligated Group, Series A, 5.50%, 1/01/39		2,010		2,263,574
South Carolina — 0.0%
State of South Carolina Housing Finance & Development Authority, Refunding RB, S/F Housing, Series B-1, 5.55%, 7/01/39		40		40,293
Virginia — 0.4%
Virginia Small Business Financing Authority, Refunding RB, Sentara Healthcare, 5.00%, 11/01/40		2,501		2,775,688
Washington — 2.1%
City of Bellingham Washington, RB, Water & Sewer, 5.00%, 8/01/40		2,999		3,424,167
Snohomish County Public Utility District No 1, 5.00%, 12/01/45		8,664		9,955,740
				13,379,907

Municipal Bonds Transferred to Tender Option Bond Trusts (i)	Par   (000)		Value
Wisconsin — 0.4%
Wisconsin Health & Educational Facilities Authority, Refunding RB, Froedtert & Community Health, Inc., Obligated Group, Series C, 5.25%, 4/01/39 (j)	$	2,179	$	2,362,342
Total Municipal Bonds Transferred to Tender Option Bond Trusts — 15.1%				96,376,965
Total Long-Term Investments (Cost — $609,857,446) — 101.7%				649,481,873
Short-Term Securities
FFI Institutional Tax-Exempt Fund, 0.02% (k)(l)		38,438,476		38,438,476
Total Short-Term Securities (Cost — $38,438,476) — 6.0%				38,438,476
Total Investments (Cost — $648,295,922) — 107.7%				687,920,349
Other Assets Less Liabilities — 0.5%				3,396,388
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (8.2)%				(52,634,940	)
Net Assets — 100.0%			$	638,681,797

Notes to Schedule of Investments

(a) When-issued security.

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

(e) Issuer filed for bankruptcy and/or is in default of interest payments.

(f) Non-income producing security.

(g) Step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate as of period end.

(h) Variable rate security. Rate as of period end.

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

(j) All or a portion of security is subject to a recourse agreement. The aggregate maximum potential amount the Fund could ultimately be required to pay under the agreements, which expire between October 1, 2016 to January 1, 2033 is $8,645,273. See Note 4 of the Notes to Financial Statements for details.

(k) During the period ended December 31, 2015, investments in issuers considered to be an affiliate of the Fund 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, 2015		Net Activity		Shares Held at December 31, 2015		Income
FFI Institutional Tax-Exempt Fund		22,850,559		15,587,917		38,438,476	$	2,220

(l) Current yield as of period end.

Derivative Financial Instruments Outstanding as of Period End

Financial Futures Contracts

Contracts Short			Issue	Expiration	Notional Value	Unrealized Appreciation
	(29	)	5-Year U.S. Treasury Note	March 2016	$3,431,289	$	19,402
	(44	)	10-Year U.S. Treasury Note	March 2016	$5,539,875		41,805
	(23	)	Long U.S. Treasury Bond	March 2016	$3,536,250		38,800
	(8	)	Ultra U.S. Treasury Bond	March 2016	$1,269,500		9,943
	Total					$	109,950

See Notes to Financial Statements.

22 SEMI-ANNUAL REPORT DECEMBER 31, 2015

Schedule of Investments (concluded) BlackRock High Yield Municipal Fund

Derivative Financial Instruments Categorized by Risk Exposure

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

Assets — Derivative Financial Instruments		Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Currency Exchange Contracts		Interest Rate Contracts		Other Contacts		Total
Financial futures contracts	Net unrealized appreciation1		—		—		—		—	$	109.950		—	$	109.950
1    Includes cumulative appreciation (depreciation) on financial futures contracts, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities.

For the six months ended December 31, 2015, the effect of derivative financial instruments in the Statements of Operations was as follows:

Net Realized Gain (Loss) from:	Commodity Contracts	Credit Contracts		Equity Contracts		Foreign Currency Exchange Contracts		Interest Rate Contracts			Other Contacts		Total
Financial futures contracts	—		—		—		—	$	(254,379	)		—	$	(254,379	)
.
Net Change in Unrealized Appreciation (Depreciation) on:	Commodity Contracts	Credit Contracts		Equity Contracts		Foreign Currency Exchange Contracts		Interest Rate Contracts			Other Contacts		Total
Financial futures contracts	—		—		—		—	$	(141,589	)		—	$	(141,589	)

Average Quarterly Balances of Outstanding Derivative Financial Instruments

For the six months ended December 31, 2015, the average quarterly balances of outstanding derivative financial instruments were as follows:

Financial futures contracts:
Average notional value of contracts — short	$	17,267,066

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

Fair Value Hierarchy as of Period End

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

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

	Level 1		Level 2			Level 3		Total
Assets:
Investments:
Long-Term Investments1		—	$	649,481,873			—	$	649,481,873
Short-Term Securities	$	38,438,476		—			—		38,438,476
Total	$	38,438,476	$	649,481,873			—	$	687,920,349
1    See above Schedule of Investments for values in each state or political subdivision.
	Level 1		Level 2			Level 3		Total
Derivative Financial Instruments1
Assets:
Interest rate contracts	$	109,950		—			—		109,950
1    Derivative financial instruments are financial futures contracts, which are valued at the unrealized appreciation (depreciation) on the instrument.
The Fund may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial statement purposes. As of period end, such assets and/or liabilities are categorized within the disclosure hierarchy as follows:
	Level 1		Level 2			Level 3		Total
Assets:
Cash	$	189,795		—			—	$	189,795
Cash pledged for financial futures contracts		203,500		—			—		203,500
Liabilities:
TOB Trust Certificates		—	$	(52,625,555	)		—		(52,625,555	)
Total	$	393,295	$	(52,625,555	)		—	$	(52,232,260	)

During the six months ended December 31, 2015, there were no transfers between levels.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT DECEMBER 31, 2015 23

Schedule of Investments December 31, 2015 (Unaudited) BlackRock National Municipal Fund (Percentages shown are based on Net Assets)

Municipal Bonds	Par   (000)		Value
Alabama — 0.7%
City of Birmingham Alabama Special Care Facilities Financing Authority, RB, Children’s Hospital (AGC), 6.00%, 6/01/19 (a)	$	15,955	$	18,544,018
Prattville Alabama IDB, RB, Recovery Zone Facility, Series C, 6.25%, 11/01/33		3,380		3,900,655
State of Alabama Docks Department, Refunding RB, 6.00%, 10/01/40		16,330		18,989,341
				41,434,014
Alaska — 0.1%
Borough of Matanuska-Susitna Alaska, RB, Goose Creek Correctional Center (AGC):
6.00%, 9/01/19 (a)		5,250		6,163,500
6.00%, 9/01/19 (a)		1,270		1,490,980
6.00%, 9/01/28		730		847,581
				8,502,061
Arizona — 3.0%
City of Phoenix & County of Maricopa Arizona IDA, Refunding RB, S/F Housing, Series A-2, AMT (Fannie Mae), 5.80%, 7/01/40		170		177,745
City of Phoenix Arizona IDA, RB:
Candeo School, Inc. Project, 6.88%, 7/01/44		3,440		3,905,432
Legacy Traditional Schools Project, Series A, 6.50%, 7/01/34 (b)		2,000		2,238,000
Legacy Traditional Schools Project, Series A, 6.75%, 7/01/44 (b)		3,500		3,941,875
City of Phoenix Arizona IDA, Refunding RB, Basis Schools, Inc. Projects, Series A, 5.00%, 7/01/45 (b)		2,280		2,342,495
County of Maricopa Arizona IDA, RB, Arizona Charter Schools Project, Series A, 6.75%, 7/01/29		665		639,989
County of Pinal Arizona, RB, Electric District No. 4, 6.00%, 12/01/18 (a)		1,200		1,369,416
County of Pinal Arizona IDA, RB, San Manuel Facility Project, AMT, 6.25%, 6/01/26		500		516,235
Salt River Project Agricultural Improvement & Power District, RB, Series A, 5.00%, 1/01/38		54,015		57,560,545
Salt River Project Agricultural Improvement & Power District, Refunding RB, Series A (a):
5.00%, 1/01/16		98,935		98,935,000
5.00%, 1/01/16		13,700		13,700,000
				185,326,732
Arkansas — 0.3%
University of Arkansas, RB, Various Facilities, UAMS Campus, 5.00%, 3/01/16 (a)		21,290		21,456,488
California — 13.9%
ABAG Finance Authority for Nonprofit Corps., Refunding RB, Sharp Healthcare, Series B, 6.25%, 8/01/39		11,525		13,397,006
California Health Facilities Financing Authority, RB, Sutter Health:
Series A, 5.25%, 11/15/46		10,500		10,874,955
Series B, 6.00%, 8/15/42		21,340		25,622,938
California Health Facilities Financing Authority, Refunding RB:
Catholic Healthcare West, Series A, 6.00%, 7/01/39		26,655		30,562,890
Stanford Hospital, Series A-3, 5.50%, 11/15/40		8,000		9,563,440
California Statewide Communities Development Authority, RB, Sutter Health, Series A, 6.00%, 8/15/42		10,190		12,124,673

Municipal Bonds	Par   (000)		Value
California (continued)
California Statewide Communities Development Authority, Refunding RB, Catholic Healthcare West:
Series B, 5.50%, 7/01/30	$	2,895	$	3,079,064
Series E, 5.50%, 7/01/31		1,920		2,042,515
City & County of San Francisco California Airports Commission, ARB, Series E, 6.00%, 5/01/39		24,300		28,048,275
City & County of San Francisco California Airports Commission, Refunding ARB, 2nd Series 34E, AMT (AGM):
5.75%, 5/01/21		8,220		9,105,705
5.75%, 5/01/23		17,000		18,831,750
City of Chula Vista California, Refunding RB, San Diego Gas & Electric, Series A, 5.88%, 2/15/34		5,850		6,681,929
City of Los Angeles California Department of Water & Power, Refunding RB, Series A, 5.25%, 7/01/39		40,000		46,074,000
City of Los Angeles California Municipal Improvement Corp., RB, Real Property, Series E:
6.00%, 9/01/34		4,890		5,653,085
6.00%, 9/01/39		9,450		10,906,434
City of Los Angeles Department of Airports, Refunding RB, AMT, 5.50%, 5/15/22		11,300		12,441,187
City of San Jose California, Refunding ARB, AMT:
Series A (AGM), 5.00%, 3/01/37		35,000		36,426,950
Series A (AMBAC), 5.50%, 3/01/32		6,530		6,840,110
Series A-1, 5.75%, 3/01/34		7,010		8,142,676
Series A-1, 6.25%, 3/01/34		5,250		6,188,753
City of San Jose California Hotel Tax, RB, Convention Center Expansion & Renovation Project:
6.50%, 5/01/36		1,510		1,830,784
6.50%, 5/01/42		5,130		6,174,006
City of San Juan California Water District, COP, Series A, 6.00%, 2/01/39		10,000		11,464,100
County of Alameda & City of Oakland California, GO, Election of 2012, 6.63%, 8/01/38		3,750		4,593,525
County of Orange California Sanitation District, COP:
Series A, 5.00%, 2/01/35		10,000		11,100,900
Series B (AGM), 5.00%, 2/01/17 (a)		25,000		26,182,500
County of Orange California Water District, COP, Refunding:
5.00%, 8/15/39		15,000		16,870,500
Series A, 5.00%, 8/15/41		7,110		7,967,182
County of Sacramento California, RB, Subordinated & Passenger Facility Charges/Grant, Series C:
6.00%, 7/01/39		16,920		18,812,502
6.00%, 7/01/41		13,285		14,770,927
County of San Diego Water Authority Financing Corp., COP, Refunding, Series A (AGM):
5.00%, 5/01/18 (a)		745		815,365
5.00%, 5/01/33		3,755		4,081,122
County of San Joaquin California Transportation Authority, Refunding RB, Limited Tax, Measure K, Series A:
6.00%, 3/01/36		12,830		15,459,380
5.50%, 3/01/41		26,390		30,852,549
Cucamonga Valley Water District, Refunding RB, Series A (AGM), 5.38%, 9/01/35		26,315		31,439,057
Gilroy Public Facilities Financing Authority, Refunding RB, 6.00%, 11/01/33		6,535		8,110,719
Golden State Tobacco Securitization Corp., Refunding RB, Asset-Backed, Senior, Series A-1, 5.75%, 6/01/47		50,520		47,434,744
Grossmont Healthcare District, GO, Election of 2006, Series B, 6.13%, 7/15/21 (a)		3,500		4,396,595
Los Angeles Department of Water & Power, RB (AMBAC), 5.00%, 7/01/37 (c)		27,500		29,167,875

See Notes to Financial Statements.

24 SEMI-ANNUAL REPORT DECEMBER 31, 2015

Schedule of Investments (continued) BlackRock National Municipal Fund

Municipal Bonds	Par   (000)		Value
California (continued)
Metropolitan Water District of Southern California, RB, Series A:
Authorization, 5.00%, 1/01/39	$	10,000	$	11,075,800
5.00%, 7/01/37		10,000		10,602,600
Metropolitan Water District of Southern California, Refunding RB:
Series B, 5.00%, 7/01/35		13,170		13,476,071
Series C, 5.00%, 7/01/35		13,375		15,090,076
Modesto Irrigation District, COP, Capital Improvements, Series A, 6.00%, 10/01/39		11,755		13,403,521
Port of Oakland California, Refunding RB, Senior Lien, Series P, AMT, 5.00%, 5/01/31		13,535		15,226,604
San Diego Community College District California, GO, Election of 2002 (AGM), 5.00%, 8/01/32		18,000		19,097,100
San Francisco City & County California Public Utilities Commission, Refunding RB, Series A, 5.13%, 11/01/39		23,000		25,878,680
State of California, GO, Various Purposes:
6.50%, 4/01/33		33,550		39,400,113
6.00%, 4/01/38		33,925		39,275,990
State of California Public Works Board, LRB, Various Capital Projects:
Sub-Series A-1, 6.00%, 3/01/35		14,125		16,663,121
Sub-Series I-1, 6.13%, 11/01/29		10,000		11,924,600
Sub-Series I-1, 6.38%, 11/01/34		11,680		14,008,058
Tuolumne Wind Project Authority, RB, Tuolumne Co. Project, Series A, 5.88%, 1/01/29		19,355		22,062,764
				861,317,765
Colorado — 0.1%
Colorado Health Facilities Authority, RB, Catholic Health Initiatives, Series D, 6.25%, 10/01/33		4,385		4,931,283
Colorado Health Facilities Authority, Refunding RB, Catholic Health Initiative, Series A, 5.50%, 7/01/34		1,580		1,777,168
				6,708,451
Connecticut — 1.3%
State of Connecticut Health & Educational Facility Authority, RB, Series A, 0.80%, 7/01/48 (d)		30,000		29,955,900
State of Connecticut Health & Educational Facility Authority, Refunding RB, Series B, 0.84%, 7/01/49 (d)		50,000		50,327,500
				80,283,400
Delaware — 0.6%
County of Sussex Delaware, RB, NRG Energy, Inc., Indian River Power LLC Project, 6.00%, 10/01/40		31,500		34,105,050
District of Columbia — 1.8%
District of Columbia, RB, Series A, 5.50%, 12/01/30		20,530		23,873,926
District of Columbia Water & Sewer Authority, Refunding RB:
Series A, 6.00%, 10/01/18 (a)		12,630		14,332,903
Series A, 5.50%, 10/01/39		7,475		8,284,842
Series B, 5.25%, 10/01/40		25,000		29,933,750
Series B, 5.25%, 10/01/44		26,500		31,580,845
Metropolitan Washington Airports Authority, Refunding RB, Dulles Toll Road, 1st Senior Lien, Series A, 5.25%, 10/01/44		5,765		6,410,853
				114,417,119
Florida — 5.2%
Anthem Park Community Development District, Special Assessment Bonds, 5.80%, 5/01/36		1,240		1,240,670
City of Saint Augustine, RB, 5.75%, 10/01/41		1,345		1,606,132
City of Tallahassee Florida Energy System Revenue, RB, 5.00%, 10/01/37		10,000		10,625,800

Municipal Bonds	Par   (000)		Value
Florida (continued)
County of Broward Florida Airport System, RB, Series A, AMT, 5.00%, 10/01/45	$	10,000	$	11,159,500
County of Escambia Florida, RB, International Paper Co. Projects, Series B, 6.25%, 11/01/33		7,500		8,655,300
County of Highlands Florida Health Facilities Authority, RB, Adventist Health System/Sunbelt, Series B, 6.00%, 11/15/37		4,990		5,758,011
County of Miami-Dade Florida Educational Facilities Authority, Refunding RB, University of Miami, Series A, 5.00%, 4/01/45		35,000		39,292,750
County of Miami-Dade Florida, GO, Building Better Communities Program:
Series B, 6.38%, 7/01/28		9,300		10,494,492
Series B-1, 5.75%, 7/01/33		2,400		2,667,552
Series B-1, 6.00%, 7/01/38		30,000		33,782,100
County of Miami-Dade Florida, RB, Seaport:
Series A, 6.00%, 10/01/38		6,175		7,513,925
Series A, 5.50%, 10/01/42		5,375		6,265,476
Series B, AMT, 6.25%, 10/01/38		5,000		6,186,150
Series B, AMT, 6.00%, 10/01/42		2,340		2,786,425
County of Miami-Dade Florida, Refunding ARB, Miami International Airport, Series A, AMT (AGC):
5.50%, 10/01/27		5,495		6,057,688
5.50%, 10/01/26		7,000		7,724,780
County of Miami-Dade Florida, Refunding RB:
Miami International Airport, Series B, 5.50%, 10/01/36		14,745		16,718,618
Water & Sewer Systems, Series C, 6.00%, 10/01/18 (a)		25,000		28,374,500
East Central Regional Wastewater Treatment Facilities Operation Board, RB, Green Bond Biosolids Project:
5.00%, 10/01/39		4,695		5,428,359
5.50%, 10/01/44		29,160		35,764,448
Florida Housing Finance Corp., Refunding RB, S/F Housing, Homeowner Mortgage, Series 1 (Ginnie Mae), AMT, 6.00%, 7/01/39		1,515		1,566,071
Florida Ports Financing Commission, Refunding RB, State Transportation Trust Fund, Series B, AMT, 5.13%, 6/01/27		10,000		11,593,800
Harbor Bay Community Development District Florida, Special Assessment Bonds, Series A, 7.00%, 5/01/33		900		903,078
Jacksonville Electric Authority Florida, RB, Sub-Series A, 5.63%, 10/01/32		16,825		18,573,791
Mid-Bay Bridge Authority, RB, Springing Lien, Series A, 7.25%, 10/01/21 (a)		11,125		14,578,756
State of Florida, GO, Board of Education, Series A:
5.38%, 6/01/33		3,950		4,373,835
5.50%, 6/01/38		4,790		5,315,703
State of Florida, RB, Board of Education Lottery Revenue, Series A, 5.75%, 7/01/28		3,890		4,351,237
State of Florida Turnpike Authority, RB, Series B, 5.00%, 7/01/40		10,000		11,378,800
Sterling Hill Community Development District, Refunding RB, Special Assessment Bonds, Series B, 5.50%, 11/01/2010 (e)(f)		155		108,492
Watergrass Community Development District Florida, Special Assessment Bonds, Series B, 6.96%, 11/01/17		205		204,920
				321,051,159
Georgia — 1.8%
City of Atlanta Georgia Department of Aviation, Refunding GARB, Series C, 6.00%, 1/01/30		30,000		36,254,400

See Notes to Financial Statements.

SEMI-ANNUAL REPORT DECEMBER 31, 2015 25

Schedule of Investments (continued) BlackRock National Municipal Fund

Municipal Bonds	Par   (000)		Value
Georgia (continued)
City of Atlanta Georgia Water & Wastewater, Refunding RB, 5.00%, 11/01/40	$	15,000	$	17,359,650
County of DeKalb Georgia Hospital Authority, Refunding RB, DeKalb Medical Center, Inc. Project, 6.13%, 9/01/40		2,000		2,188,360
County of Gainesville Georgia & Hall Hospital Authority, Refunding RB, Northeast Georgia Health System, Inc. Project, Series A, 5.50%, 8/15/54		4,950		5,844,366
County of Richmond Georgia Development Authority, RB, Recovery Zone Facility, International Paper Co., Series B, 6.25%, 11/01/33		3,625		4,183,395
County of Rockdale Georgia Development Authority, RB, Visy Paper Project, Series A, AMT, 6.13%, 1/01/34		5,000		5,136,850
Municipal Electric Authority of Georgia, Refunding RB:
Project One, Sub-Series D, 6.00%, 1/01/23		10,000		11,219,900
Series EE (AMBAC), 7.00%, 1/01/25		20,000		27,504,600
				109,691,521
Illinois — 7.7%
Bolingbrook Special Service Area No. 1, Special Tax Bonds, Forest City Project, 5.90%, 3/01/27		1,000		1,004,360
Chicago O’Hare International Airport, Refunding RB:
5.00%, 1/01/31		30,450		35,118,594
5.00%, 1/01/32		23,410		26,899,729
City of Chicago Illinois, GARB, O’Hare International Airport, 3rd Lien, Series C, 6.50%, 1/01/41		29,835		35,909,406
City of Chicago Illinois, Refunding GARB, Senior Lien, O’Hare International Airport, Series C, AMT:
5.50%, 1/01/34		5,380		6,128,842
General, 5.38%, 1/01/39		1,650		1,840,608
City of Chicago Illinois Transit Authority, RB, Federal Transit Administration, Section 5309, Series A (AGC), 6.00%, 12/01/18 (a)		15,000		17,121,600
City of Chicago Illinois Wastewater Transmission, RB, Series A (BHAC), 5.50%, 1/01/38		3,000		3,201,180
City of Chicago Illinois Waterworks, Refunding RB, 2nd Lien (AGM), 5.25%, 11/01/33		5,000		5,267,000
Illinois Finance Authority, RB:
Advocate Health Care Network, Series D, 6.50%, 11/01/18 (a)		7,020		8,086,549
Carle Foundation, Series A, 6.00%, 8/15/41		6,500		7,667,465
Carle Foundation, Series A (AGM), 6.00%, 8/15/41		3,675		4,347,745
DePaul University, Series A, 6.13%, 10/01/40		11,790		14,099,661
Memorial Health System, 5.50%, 4/01/34		150		165,240
Memorial Health System, Series A, 5.25%, 7/01/44		8,370		9,172,767
Rush University Medical Center, Series B, 7.25%, 11/01/18 (a)		5,280		6,192,437
Rush University Medical Center, Series C, 6.38%, 5/01/19 (a)		2,860		3,351,720
University of Chicago, Series B, 6.25%, 7/01/18 (a)		25,035		28,278,785
Illinois Finance Authority, Refunding RB:
5.75%, 4/01/24		500		539,645
6.25%, 4/01/29		260		285,386
Central Dupage Health, Series B, 5.50%, 11/01/39		4,205		4,800,512
Northwestern Memorial Hospital, Series A, 6.00%, 8/15/39		29,925		34,758,187
OSF Healthcare System, Series A, 6.00%, 5/15/39		11,870		13,697,268
Roosevelt University Project, 6.50%, 4/01/39		7,000		7,649,110
Rush University Medical Center Obligation Group, Series A, 7.25%, 11/01/18 (a)		6,900		8,092,389
Illinois State Toll Highway Authority, RB, Series B, 5.00%, 1/01/40		53,280		61,186,219

Municipal Bonds	Par   (000)		Value
Illinois (continued)
Illinois State Toll Highway Authority, Refunding RB, Series A, 5.00%, 12/01/32	$	4,500	$	5,312,655
Metropolitan Pier & Exposition Authority, RB, McCormick Place Expansion Project, Series A:
5.50%, 6/15/50		10,000		10,614,800
5.50%, 6/15/53		23,565		25,891,808
Metropolitan Pier & Exposition Authority, Refunding RB, 5.25%, 6/15/50		62,500		65,217,500
Railsplitter Tobacco Settlement Authority, RB, 6.00%, 6/01/28		13,865		16,540,668
Village of Hodgkins Illinois, RB, Metropolitan Biosolids Management LLC Project, AMT, 6.00%, 11/01/23		10,000		10,017,700
Village of Wheeling Illinois, Tax Allocation Bonds, North Milwaukee/Lake-Cook TIF Project, 6.00%, 1/01/25		1,075		1,075,537
				479,533,072
Indiana — 4.0%
City of Valparaiso Indiana, RB, Exempt Facilities, Pratt Paper LLC Project, AMT:
6.75%, 1/01/34		3,870		4,701,856
7.00%, 1/01/44		7,330		8,974,779
Indiana Finance Authority, RB, 1st Lien, Series A:
CWA Authority Project, 5.25%, 10/01/38		17,510		20,593,861
Wastewater, 5.25%, 10/01/31		10,875		12,751,590
Indiana Finance Authority, Refunding RB:
Duke Energy Indiana Project, Series B, 6.00%, 8/01/39		11,000		12,613,700
Parkview Health System, Series A, 5.75%, 5/01/31		1,660		1,885,611
Trinity Health, Series A, 5.63%, 12/01/38		12,000		13,654,920
Indiana Municipal Power Agency, RB:
Series A, 5.00%, 1/01/42 (c)		39,000		44,901,870
Series B, 6.00%, 1/01/39		19,620		22,225,340
Indianapolis Local Public Improvement Bond Bank, RB, Pilot Infrastructure Project, Series F, 5.00%, 1/01/35		23,550		26,301,111
Indianapolis Local Public Improvement Bond Bank, Refunding RB, Waterworks Project, Series A:
5.75%, 1/01/38		12,945		14,663,190
(AGC), 5.50%, 1/01/38		56,725		63,891,069
				247,158,897
Iowa — 1.5%
Iowa Finance Authority, RB, Iowa Health Care Facilities:
Genesis Health System, 5.50%, 7/01/33		18,750		22,014,750
Series A (AGC), 5.63%, 8/15/37		5,600		6,302,240
Iowa Finance Authority, Refunding RB, Midwestern Disaster Area, Iowa Fertilizer Co. Project:
5.50%, 12/01/22		35,000		36,923,950
5.25%, 12/01/25		9,950		10,779,532
Iowa Student Loan Liquidity Corp., RB, Senior Series A-2, AMT:
5.40%, 12/01/24		10,065		10,756,566
5.50%, 12/01/25		6,690		7,201,785
				93,978,823
Kansas — 0.0%
Counties of Sedgwick & Shawnee Kansas, RB, AMT (Ginnie Mae), 6.95%, 6/01/29		230		241,259
Louisiana — 1.6%
City of New Orleans Louisiana Aviation Board, Refunding GARB, Restructuring, Series A-2 (AGC), 6.00%, 1/01/23		1,370		1,534,756

See Notes to Financial Statements.

26 SEMI-ANNUAL REPORT DECEMBER 31, 2015

Schedule of Investments (continued) BlackRock National Municipal Fund

Municipal Bonds	Par   (000)		Value
Louisiana (continued)
Louisiana Local Government Environmental Facilities & Community Development Authority, RB, Westlake Chemical Corp. Project:
6.75%, 11/01/32	$	8,030	$	8,700,826
Series A, 6.50%, 8/01/29		11,470		13,559,375
Series A-1, 6.50%, 11/01/35		17,185		20,355,804
State of Louisiana Gasoline & Fuels Tax, RB, Series A (AGM), 5.00%, 5/01/16 (a)		11,950		12,134,628
State of Louisiana Gasoline & Fuels Tax, Refunding RB, 2nd Lien, Series B (d):
0.77%, 5/01/43		32,000		32,070,400
0.85%, 5/01/43		10,000		10,009,700
				98,365,489
Maine — 0.3%
Maine Health & Higher Educational Facilities Authority, RB, Maine General Medical Center:
7.50%, 7/01/32		12,365		14,806,346
6.95%, 7/01/41		2,235		2,559,544
				17,365,890
Maryland — 0.6%
Maryland Health & Higher Educational Facilities Authority, RB, University of Maryland Medical System, Series B (NPFGC), 7.00%, 7/01/22		3,540		4,217,591
Maryland Health & Higher Educational Facilities Authority, Refunding RB, Charlestown Community Project, 6.25%, 1/01/41		11,000		12,317,690
State of Maryland, GO, Series A, 4.15%, 3/01/16 (a)		21,880		22,020,032
				38,555,313
Massachusetts — 3.4%
Commonwealth of Massachusetts, GO, Series D-2, 0.31%, 8/01/43 (d)		35,000		34,970,600
Commonwealth of Massachusetts, RB, Master Transportation Fund Accelerated Bridge Program, Series A, 5.00%, 6/01/44		15,000		17,373,600
Massachusetts Development Finance Agency, RB, Foxborough Regional Charter School, Series A, 7.00%, 7/01/42		1,375		1,553,008
Massachusetts Development Finance Agency, Refunding RB, Emerson College, 5.00%, 1/01/41		12,180		13,392,519
Massachusetts Health & Educational Facilities Authority, RB, Series N, 5.00%, 7/01/17 (a)		31,000		32,961,370
Massachusetts Health & Educational Facilities Authority, Refunding RB, Harvard University, Series A, 5.50%, 11/15/36		85,925		96,982,688
Massachusetts HFA, RB, M/F Housing, Series B, 7.00%, 12/01/38		4,585		4,957,302
Massachusetts Water Resources Authority, Refunding RB, Series C, 5.25%, 8/01/42		5,000		5,878,200
				208,069,287
Michigan — 1.0%
City of Lansing Michigan, RB, Board of Water & Light Utilities System, Series A, 5.50%, 7/01/41		6,485		7,644,972
Royal Oak Hospital Finance Authority Michigan, Refunding RB, William Beaumont Hospital (a):
Series V, 8.25%, 9/01/18		18,130		21,563,822
Series W, 6.00%, 8/01/19		5,145		6,019,393
State of Michigan Building Authority, Refunding RB, Facilities Program Series:
6.00%, 10/15/18 (a)		7,550		8,580,046
6.00%, 10/15/38		4,905		5,512,877

Municipal Bonds	Par   (000)		Value
Michigan (continued)
State of Michigan Building Authority, Refunding RB, Facilities Program Series I:
6.25%, 10/15/18 (a)	$	4,540	$	5,190,491
6.25%, 10/15/38		2,960		3,346,990
State of Michigan HDA, RB, S/F Housing, Series C, AMT, 5.50%, 12/01/28		1,300		1,385,449
State of Michigan Hospital Finance Authority, Refunding RB, Henry Ford Health System, 5.75%, 11/15/39		4,285		4,875,602
				64,119,642
Minnesota — 0.5%
City of Minneapolis Minnesota, Refunding RB, Fairview Health Services:
Series A, 6.75%, 11/15/18 (a)		5,940		6,885,292
Series B (AGC), 6.50%, 11/15/18 (a)		2,775		3,197,077
Series B (AGC), 6.50%, 11/15/38		15,240		17,250,765
County of Ramsey Minnesota Housing & Redevelopment Authority, RB, Hanover Townhouses Project, M/F Housing, AMT, 6.00%, 7/01/31		1,110		1,111,976
				28,445,110
Mississippi — 0.0%
County of Warren Mississippi, RB, International Paper Co. Project, Series A, 6.50%, 9/01/32		1,890		2,125,475
Missouri — 0.0%
City of St. Louis Missouri, RB, Lambert-St. Louis International Airport, Series A-1, 6.25%, 7/01/29		1,175		1,333,402
Nebraska — 0.5%
Omaha Public Power District, Refunding RB, Series A, 5.25%, 2/01/42		14,265		16,738,123
Omaha Public Power District, Seperate Electric System, Refunding RB, Series A, 5.25%, 2/01/46		14,670		17,187,372
				33,925,495
Nevada — 1.9%
City of Las Vegas Nevada, GO, Limited Tax, Performing Arts Center, 6.00%, 4/01/34		12,925		14,960,558
County of Clark Nevada Airport System, ARB, Series B, 5.75%, 7/01/42		51,700		59,850,505
County of Clark Nevada Water Reclamation District, GO, Series B:
5.75%, 7/01/34		3,125		3,595,313
5.75%, 7/01/38		32,685		37,555,392
				115,961,768
New Hampshire — 0.3%
New Hampshire Health & Education Facilities Authority, Refunding RB, Dartmouth-Hitchcock, 6.00%, 8/01/38		15,590		17,852,109
New Jersey — 5.2%
County of Cape May New Jersey Industrial Pollution Control Financing Authority, Refunding RB, Atlantic City Electric Co., Series A (NPFGC), 6.80%, 3/01/21		5,000		6,025,200
County of Essex New Jersey Improvement Authority, RB, AMT, 5.25%, 7/01/45 (b)		3,180		3,295,847
County of Monmouth New Jersey Improvement Authority, RB, Brookdale Community College Project, 6.00%, 8/01/18 (a)		3,600		4,058,856
New Jersey EDA, RB:
Motor Vehicle Surcharge, Series A (NPFGC), 5.25%, 7/01/33		26,500		26,798,390
Series WW, 5.25%, 6/15/40		15,565		16,716,188

See Notes to Financial Statements.

SEMI-ANNUAL REPORT DECEMBER 31, 2015 27

Schedule of Investments (continued) BlackRock National Municipal Fund

Municipal Bonds	Par   (000)		Value
New Jersey (continued)
New Jersey EDA, Refunding RB, New Jersey American Water Co., Inc. Project, Series B, AMT, 5.60%, 11/01/34	$	8,280	$	9,303,325
New Jersey Educational Facilities Authority, Refunding RB, University of Medicine & Dentistry, Series B (a):
7.13%, 6/01/19		2,870		3,430,769
7.50%, 6/01/19		9,200		11,112,588
New Jersey Health Care Facilities Financing Authority, Refunding RB:
AHS Hospital Corp., 6.00%, 7/01/37		1,200		1,432,944
AHS Hospital Corp., 6.00%, 7/01/41		33,185		39,419,134
St. Joseph’s Healthcare System, 6.63%, 7/01/38		200		221,208
New Jersey Higher Education Student Assistance Authority, Refunding RB, Series 1, AMT:
5.75%, 12/01/27		500		561,220
5.75%, 12/01/28		410		457,663
New Jersey Housing & Mortgage Finance Agency, RB, S/F Housing, Series AA:
6.38%, 10/01/28		405		419,446
6.50%, 10/01/38		445		460,277
New Jersey State Turnpike Authority, Refunding RB, Series D, 0.63%, 1/01/23 (d)		17,000		16,982,660
New Jersey Transportation Trust Fund Authority, RB, Transportation System:
Series A, 6.00%, 6/15/35		2,000		2,268,620
Series A, 5.88%, 12/15/38		14,255		15,600,244
Series AA, 5.50%, 6/15/39		39,800		43,454,436
Series B, 5.50%, 6/15/31		300		328,623
Series B, 5.25%, 6/15/36		19,190		20,364,620
New Jersey Turnpike Authority, RB, Series E, 5.00%, 1/01/45		89,500		101,413,345
				324,125,603
New Mexico — 0.0%
County of Santa Fe New Mexico, RB (AGM), 6.00%, 2/01/27		250		311,000
New York — 9.5%
City of New York New York, GO:
0.59%, 8/01/27 (d)		39,000		38,907,570
Sub-Series E-1, 6.25%, 10/15/18 (a)		12,875		14,745,351
Sub-Series E-1, 6.25%, 10/15/28		575		655,897
City of New York New York Housing Development Corp., RB, M/F Housing, Series M:
6.50%, 11/01/28		4,300		4,797,424
6.88%, 11/01/38		7,785		8,719,667
City of New York New York Industrial Development Agency, ARB, American Airlines, Inc., JFK International Airport Project, AMT, Series B, 2.00%, 8/01/28 (d)		30,570		30,629,000
City of New York New York Municipal Water Finance Authority, RB, Water & Sewer System, Fiscal 2009, Series A, 5.75%, 6/15/40		6,200		6,894,090
City of New York New York Municipal Water Finance Authority, Refunding RB, 2nd General Resolution, Series EE:
Fiscal 2009, 5.25%, 6/15/40		5,000		5,649,300
Water & Sewer System, 5.38%, 6/15/43		7,125		8,293,714
Counties of New York Tobacco Trust IV, Refunding RB, Settlement Pass-Through Turbo, Series A, 6.25%, 6/01/41 (b)		20,000		20,865,400
Hudson Yards Infrastructure Corp., RB, Series A, 5.75%, 2/15/47		9,025		10,462,592

Municipal Bonds	Par   (000)		Value
New York (continued)
Long Island Power Authority, Refunding RB, Electric System, Series A:
6.00%, 5/01/19 (a)	$	49,450	$	57,558,811
5.50%, 5/01/33		1,500		1,710,675
Metropolitan Transportation Authority, RB:
Series A-1, 5.25%, 11/15/39		30,000		35,345,100
Series C, 6.50%, 11/15/28		23,465		27,044,820
Series D, 5.25%, 11/15/41		8,030		9,470,823
Sub-Series D-1, 5.25%, 11/15/44		40,000		46,895,600
Metropolitan Transportation Authority, Refunding RB, SubSeries C-1, 5.25%, 11/15/31		14,000		17,061,660
New York State Urban Development Corp., Refunding RB, Series D, 5.63%, 1/01/28		3,000		3,371,100
Niagara Area Development Corp., Refunding RB, Solid Waste Disposal Facility, Covanta Energy Project, Series A, AMT, 5.25%, 11/01/42 (b)		5,000		5,041,650
Port Authority of New York & New Jersey, ARB, 56th Series, AMT, 5.00%, 5/01/39		6,600		7,362,036
Port Authority of New York & New Jersey, Refunding ARB, Consolidated, AMT:
151th Series, 6.00%, 9/15/28		74,780		82,682,751
152nd Series, 5.75%, 11/01/30		4,695		5,160,650
Port Authority of New York & New Jersey, Refunding RB:
5.00%, 10/15/41		25,000		29,120,750
5.25%, 10/15/55		40,375		47,467,676
State of New York Dormitory Authority, RB:
Columbia University, 5.00%, 7/01/38		21,400		23,519,670
Series B, 5.75%, 3/15/36		19,270		22,057,984
Triborough Bridge & Tunnel Authority, RB, General, Series A-2, 5.38%, 11/15/38		5,715		6,385,312
Triborough Bridge & Tunnel Authority, Refunding RB, General, Series A, 5.25%, 11/15/45		7,805		9,209,276
				587,086,349
North Carolina — 0.1%
County of Columbus North Carolina Industrial Facilities & Pollution Control Financing Authority, RB, International Paper Co. Projects, Series B, 6.25%, 11/01/33		3,000		3,462,120
State of North Carolina, RB, Series A, 5.25%, 5/01/31		4,000		4,617,920
				8,080,040
Ohio — 1.3%
County of Lucas Ohio, Refunding RB, Promedica Healthcare, Series A:
5.75%, 11/15/31		500		600,125
6.50%, 11/15/37		12,690		15,688,012
6.00%, 11/15/41		4,415		5,302,018
County of Montgomery Ohio, Refunding RB, Catholic Health, Series A, 5.50%, 5/01/34		10,595		11,875,936
Hamilton County Ohio Sales Tax Revenue, Refunding RB, Sub-Series A (AGM), 5.00%, 12/01/32		20,000		20,720,800
State of Ohio, Refunding RB, Cleveland Clinic Health, Series A, 5.50%, 1/01/39		15,170		17,086,426
State of Ohio Turnpike Commission, RB, Junior Lien, Series A, 5.25%, 2/15/39		7,500		8,610,975
				79,884,292
Oregon — 0.0%
City of Portland Oregon, M/F HRB, Lovejoy Station Apartments Project, AMT (NPFGC), 5.90%, 7/01/23		355		355,951

See Notes to Financial Statements.

28 SEMI-ANNUAL REPORT DECEMBER 31, 2015

Schedule of Investments (continued) BlackRock National Municipal Fund

Municipal Bonds	Par   (000)		Value
Pennsylvania — 1.6%
City of Philadelphia Pennsylvania Gas Works, RB, 12th Series B (NPFGC), 7.00%, 5/15/20 (g)	$	2,665	$	3,025,122
County of Cumberland Pennsylvania Municipal Authority, Refunding RB, Diakon Lutheran:
6.38%, 1/01/19 (a)		9,520		10,979,607
6.38%, 1/01/39		1,055		1,202,320
County of Dauphin Pennsylvania General Authority, Refunding RB, Pinnacle Health System Project, Series A:
6.00%, 6/01/29		12,760		14,644,142
6.00%, 6/01/36		3,895		4,441,624
County of Lancaster Pennsylvania Hospital Authority, Refunding RB, Brethren Village Project, Series A, 6.25%, 7/01/26		1,160		1,201,493
County of Northampton Pennsylvania IDA, Route 33 Project, Tax Allocation Bond, 7.00%, 7/01/32		2,455		2,680,565
Pennsylvania Economic Development Financing Authority, RB:
6.00%, 7/01/53		4,400		5,279,912
American Water Co. Project, 6.20%, 4/01/39		3,475		3,955,801
Pennsylvania Turnpike Commission, RB:
5.25%, 6/01/39		24,900		27,315,051
Subordinate, Special Motor License Fund, 6.00%, 12/01/36		1,195		1,398,544
Pennsylvania Turnpike Commission, Refunding RB, Sub-Series A-1, 5.25%, 12/01/45		22,000		25,261,280
				101,385,461
South Carolina — 1.7%
South Carolina Jobs EDA, Refunding RB, Palmetto Health, Series A (AGM):
6.50%, 8/01/39		4,455		5,417,013
6.25%, 8/01/34		1,525		1,830,046
South Carolina State Public Service Authority, Refunding RB, Series E, 5.25%, 12/01/55		23,700		26,746,398
State of South Carolina Public Service Authority, RB, Series A, 5.50%, 12/01/54		32,085		36,702,031
State of South Carolina Public Service Authority, Refunding RB, Series A:
Santee Cooper, 5.50%, 12/01/33		6,465		7,793,364
Santee Cooper, 5.75%, 12/01/43		19,875		23,840,062
5.50%, 1/01/19 (a)		2,200		2,448,974
				104,777,888
Texas — 12.5%
City of Houston Texas Utility System, Refunding RB, Series A, 1st Lien:
Combined (AGC), 6.00%, 11/15/35		32,350		37,670,604
Combined (AGC), 5.38%, 11/15/38		31,160		35,197,713
5.25%, 11/15/30		24,305		28,552,785
City Public Service Board of San Antonio Texas, Refunding RB, 5.00%, 2/01/17 (a)(c)		28,990		30,348,181
County of Harris Texas Cultural Education Facilities Finance Corp., RB, 1st Mortgage, Brazos Presbyterian Homes, Inc. Project, Series B:
6.38%, 1/01/33		465		538,921
7.00%, 1/01/43		1,075		1,274,972
7.00%, 1/01/48		2,625		3,092,565
County of Matagorda Texas Navigation District No. 1, Refunding RB, Central Power & Light Co., Project, Series A, 6.30%, 11/01/29		9,775		11,119,551
County of Tarrant Texas Cultural Education Facilities Finance Corp., RB, Scott & White Healthcare:
6.00%, 8/15/20 (a)		3,700		4,458,759
6.00%, 8/15/45		46,300		55,090,518

Municipal Bonds	Par   (000)		Value
Texas (continued)
Cypress-Fairbanks Independent School District, GO, Refunding Series C, 5.00%, 2/15/44	$	53,280	$	61,615,656
Dallas Area Rapid Transit, Refunding RB (AMBAC):
5.00%, 12/01/16 (a)		16,230		16,896,728
5.00%, 12/01/36		11,630		12,073,801
Dallas-Fort Worth International Airport, ARB, Joint Improvement, Series D, AMT, 5.00%, 11/01/38		3,500		3,832,675
Dallas-Fort Worth International Airport, Refunding RB, Joint Improvement, AMT:
Series A, 5.00%, 11/01/32		2,600		2,931,500
Series E, 5.00%, 11/01/35		11,180		12,372,906
Harris County Cultural Education Facilities Finance Corp., RB, 5.50%, 10/01/39		8,500		9,637,725
Katy Independent School District, GO, Series A:
5.00%, 2/15/40		28,725		33,730,044
5.00%, 2/15/45		39,125		45,770,381
Lower Colorado River Authority, Refunding RB, 5.50%, 5/15/30		6,085		7,285,449
North Texas Tollway Authority, RB, Special Projects System, Series A, 6.00%, 9/01/41		4,815		5,830,339
North Texas Tollway Authority, Refunding RB:
5.75%, 1/01/18 (a)		8,425		9,210,210
5.75%, 1/01/40		1,445		1,569,140
1st Tier System, 6.00%, 1/01/34		11,490		13,594,394
1st Tier System, Series A, 6.00%, 1/01/28		1,000		1,133,730
1st Tier System, Series K-2 (AGC), 6.00%, 1/01/38		2,245		2,529,688
1st Tier System, Series S, 5.75%, 1/01/18 (a)		3,890		4,252,548
1st Tier System, Series SE, 5.75%, 1/01/40		3,830		4,139,273
2nd Tier System, Series F, 6.13%, 1/01/31		25,615		25,615,000
Series B, 5.00%, 1/01/40		10,000		11,154,100
Port of Bay City Authority Texas, RB, Hoechst Celanese Corp. Project, AMT, 6.50%, 5/01/26		4,000		4,013,320
State of Texas, GO, Refunding Series A, 5.00%, 10/01/44		129,955		150,470,996
State of Texas Transportation Commission State Highway Fund, RB, 1st Tier System, Series B, 0.36%, 4/01/32 (d)		36,000		36,002,880
Texas Private Activity Bond Surface Transportation Corp., RB, Senior Lien:
LBJ Infrastructure Group LLC, LBJ Freeway Managed Lanes Project, 7.00%, 6/30/40		24,825		30,118,683
NTE Mobility Partners LLC, North Tarrant Express Managed Lanes Project, 6.88%, 12/31/39		23,000		26,999,240
Texas Water Development Board, RB, Series A, 5.00%, 10/15/45		32,500		38,127,375
				778,252,350
Virginia — 1.4%
City of Winchester Virginia IDA, Refunding RB, Valley Health (BHAC) (AMBAC), 5.25%, 1/01/17 (a)		31,970		33,436,784
Virginia HDA, RB, M/F Housing, Rental Housing, Series A, 5.25%, 5/01/41		2,865		3,078,127
Virginia Small Business Financing Authority, RB, Senior Lien, Elizabeth River Crossings OpCo LLC Project, AMT, 6.00%, 1/01/37		31,085		35,821,732
Wise County IDA, RB, Series A, 2.15%, 10/01/40 (d)		17,000		17,351,730
				89,688,373
Washington — 2.5%
Central Puget Sound Regional Transit Authority, RB:
Refunding and Improvement Series S-1, 5.00%, 11/01/45		55,830		65,953,654
Series A, 5.00%, 11/01/17 (a)		8,500		9,144,470
Series A, 5.00%, 11/01/17 (a)		15,715		16,906,511

See Notes to Financial Statements.

SEMI-ANNUAL REPORT DECEMBER 31, 2015 29

Schedule of Investments (continued) BlackRock National Municipal Fund

Municipal Bonds	Par   (000)		Value
Washington (continued)
City of Seattle Washington Housing Authority, RB, M/F Housing, Newholly Project, AMT, 6.25%, 12/01/35	$	2,750	$	2,760,917
Washington Health Care Facilities Authority, RB:
Catholic Health Initiatives, Series A, 5.75%, 1/01/45		21,355		25,141,455
MultiCare Health System, Series B (AGC), 6.00%, 8/15/19 (a)		2,000		2,342,980
Swedish Health Services, Series A, 6.75%, 5/15/21 (a)		16,000		20,420,320
Washington Health Care Facilities Authority, Refunding RB, Catholic Health Initiatives, Series D, 6.38%, 10/01/36		10,085		11,386,873
				154,057,180
Wisconsin — 0.2%
City of Superior Wisconsin, Refunding RB, Midwest Energy Resources, Series E (NPFGC), 6.90%, 8/01/21		7,000		8,866,900
Public Finance Authority, Refunding RB, AMT, National Gypsum Co., 5.25%, 4/01/30		5,900		6,125,085
				14,991,985
Total Municipal Bonds — 88.1%				5,474,321,263
Municipal Bonds Transferred to Tender Option Bond Trusts (h)
Arizona — 0.6%
City of Mesa Arizona, RB, Utility System, 5.00%, 7/01/35		30,000		34,826,700
California — 0.9%
County of Orange California, ARB, Series B, 5.25%, 7/01/34		13,045		13,861,338
San Diego Public Facilities Financing Authority, Refunding RB, Series B, 5.38%, 8/01/34		15,000		17,078,100
University of California, RB, General, Series O, 5.25%, 5/15/39		20,695		23,269,760
				54,209,198
Florida — 1.8%
State of Florida, GO, Board of Education:
Capital Outlay, Series E, 5.00%, 6/01/37		39,730		45,178,175
Series C, 5.00%, 6/01/37		65,545		69,776,566
				114,954,741

Municipal Bonds Transferred to Tender Option Bond Trusts (h)	Par   (000)		Value
Illinois — 0.3%
Illinois Finance Authority, RB, The Carle Foundation, Series A (AGM), 6.00%, 8/15/41	$	15,600	$	18,455,736
Indiana — 0.6%
Indiana Finance Authority, RB, Sisters of St. Francis Health, 5.25%, 11/01/39		31,460		35,016,868
Massachusetts — 0.2%
Massachusetts School Building Authority, RB, Series A (AMBAC), 5.00%, 8/15/37		10,000		10,671,150
North Carolina — 0.8%
North Carolina Capital Facilities Finance Agency, Refunding RB, Duke University Project, 5.00%, 10/01/55		46,000		53,261,560
Utah — 1.2%
County of Utah Utah, RB, IHC Health Services Inc., 5.00%, 5/15/43		70,000		77,739,900
Total Municipal Bonds Transferred to Tender Option Bond Trusts - 6.4%				399,135,853
Total Long-Term Investments (Cost — $5,467,491,291) — 94.5%				5,873,457,116
Short-Term Securities	Shares
FFI Institutional Tax-Exempt Fund, 0.02% (i)(j)		421,366,094		421,366,094
	Par   (000)
Metropolitan Transportation Authority New York, Series B1-F, 0.50% , 8/01/16		60,000		60,000,000
Total Short-Term Securities (Cost — $481,366,094) — 7.8%				481,366,094
Total Investments (Cost — $5,948,857,385) — 102.3%				6,354,823,210
Other Assets Less Liabilities — 0.6%				32,942,845
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (2.9)%				(178,541,726	)
Net Assets — 100.0%			$	6,209,224,329

Notes to Schedule of Investments

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

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

(c) When-issued security.

(d) Variable rate security. Rate as of period end.

(e) Issuer filed for bankruptcy and/or is in default of interest payments.

(f) Non-income producing security.

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

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

See Notes to Financial Statements.

30 SEMI-ANNUAL REPORT DECEMBER 31, 2015

Schedule of Investments (continued) BlackRock National Municipal Fund

(i) During the six months ended December 31, 2015, investments in issuers considered to be an affiliate of the Fund 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, 2015		Net Activity		Shares Held at December 31, 2015		Income
FFI Institutional Tax-Exempt Fund		212,819,220		208,546,874		421,366,094	$	34,689

(j) Current yield as of period end.

Derivative Financial Instruments Outstanding as of Period End

Financial Futures Contracts

Contracts Short			Issue	Expiration	Notional Value		Unrealized Appreciation
	(493	)	5-Year U.S. Treasury Note	March 2016	$	58,331,915	$	307,680
	(325	)	10-Year U.S. Treasury Note	March 2016	$	40,919,531		350,001
	(150	)	Long U.S. Treasury Bond	March 2016	$	23,062,500		276,382
	(40	)	Ultra U.S. Treasury Bond	March 2016	$	6,347,500		62,646
	Total						$	996,709

Derivative Financial Instruments Categorized by Risk Exposure

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

Assets — Derivative Financial Instruments		Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Currency Exchange Contracts		Interest Rate Contracts		Other Contacts		Total
Financial futures contracts	Net unrealized appreciation1		—		—		—		—	$	996,709		—	$	996,709
1    Includes cumulative appreciation (depreciation) on financial futures contracts, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities.

For the six months ended December 31, 2015, the effect of derivative financial instruments in the Statements of Operations was as follows:

Net Realized Gain (Loss) from:	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Currency Exchange Contracts		Interest Rate Contracts		Other Contacts		Total
Financial futures contracts		—		—		—		—	$	954,259		—	$	954,259
Net Change in Unrealized Appreciation (Depreciation) on:	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Currency Exchange Contracts		Interest Rate Contracts		Other Contacts		Total
Financial futures contracts		—		—		—		—	$	788,087		—	$	788,087

Average Quarterly Balances of Outstanding Derivative Financial Instruments

For the six months ended December 31, 2015, the average quarterly balances of outstanding derivative financial instruments were as follows:

Financial futures contracts:
Average notional value of contracts — short	$	164,033,973

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

Fair Value Hierarchy as of Period End

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

See Notes to Financial Statements.

SEMI-ANNUAL REPORT DECEMBER 31, 2015 31

Schedule of Investments (concluded) BlackRock National Municipal Fund

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

	Level 1		Level 2			Level 3	Total
Assets:
Investments:
Long-Term Investments 1		—	$	5,873,457,116		—	$	5,873,457,116
Short-Term Securities	$	421,366,094		60,000,000		—		481,366,094
Total	$	421,366,094	$	5,933,457,116		—	$	6,354,823,210
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	$	996,709		—		—	$	996,709
2    Derivative financial instruments are financial futures contracts, which are valued at the unrealized appreciation (depreciation) on the instrument.
The Fund may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial statement purposes. As of period end, such assets and/or liabilities are categorized within the disclosure hierarchy as follows:
	Level 1		Level 2			Level 3	Total
Assets:
Cash	$	578,252		—		—	$	578,252
Cash pledged for financial futures contracts		1,597,000		—		—		1,597,000
Liabilities:
TOB Trust Certificates		—	$	(178,529,971	)	—	$	(178,529,971	)
Total	$	2,175,252	$	(178,529,971	)	—	$	(176,354,719	)

During the six months ended December 31, 2015, there were no transfers between levels.

See Notes to Financial Statements.

32 SEMI-ANNUAL REPORT DECEMBER 31, 2015

Schedule of Investments December 31, 2015 (Unaudited) BlackRock Short-Term Municipal Fund (Percentages shown are based on Net Assets)

Municipal Bonds	Par   (000)		Value
Arizona — 1.8%
Arizona Health Facilities Authority, Refunding RB:
5.00%, 1/01/19	$	2,735	$	3,042,059
Series D, 5.00%, 1/01/17		1,080		1,126,202
City of Peoria AZ, GO, Refunding Series E, 4.00%, 7/15/19		5,325		5,840,833
City of Phoenix Civic Improvement Corp., Refunding RB, Transit Excise Tax, Light Rail Project, 5.00%, 7/01/16		1,000		1,023,260
				11,032,354
California — 14.1%
California Municipal Finance Authority, RB, Series A, 0.85%, 11/01/17		3,000		2,991,000
California State Department of Water Resources, Refunding RB, Series L, 5.00%, 5/01/19		6,360		7,182,984
California State University, Refunding RB, Series A, 5.00%, 11/01/18		1,800		2,004,876
California Statewide Communities Development Authority, RB, 5.00%, 11/01/29 (a)		3,570		3,770,099
City & County of San Francisco, GO, Refunding, 5.00%, 6/15/18		5,835		6,421,476
City of Long Beach California Harbor Revenue, Refunding RB, AMT, Series A, 5.00%, 5/15/17		1,500		1,584,975
City of Los Angeles Department of Airports, Refunding RB, AMT, 4.00%, 5/15/17		1,220		1,272,850
City of Riverside California Sewer Revenue, Refunding RB, Series A, 4.00%, 8/01/18		1,020		1,096,612
Los Angeles Community College District, GO, Refunding Series C, 5.00%, 8/01/17		2,500		2,667,925
Los Angeles Department of Water & Power, Refunding RB, Series B, 5.00%, 12/01/18		10,000		11,120,400
Los Angeles Unified School District, GO, Refunding, Series A, 5.00%, 7/01/17		18,145		19,304,466
San Diego Unified School District, GO, Series E, 3.00%, 7/01/17		5,000		5,169,800
San Francisco Bay Area Rapid Transit District, Refunding RB, Series A:
4.00%, 7/01/18		2,000		2,156,020
5.00%, 7/01/19		1,055		1,198,617
State of California, GO, Refunding:
4.00%, 8/01/17		10,000		10,518,900
5.00%, 8/01/18		2,000		2,203,840
Series A, 5.00%, 7/01/19 (b)		5,500		6,250,750
				86,915,590
Colorado — 0.8%
Colorado Health Facilities Authority, Refunding RB, Sisters of Charity of Leavenworth Health System, Series B, 5.00%, 1/01/18		4,440		4,792,625
Connecticut — 1.5%
State of Connecticut, Special Tax Revenue, RB, Series A, 5.00%, 8/01/19		3,000		3,397,110
State of Connecticut, Special Tax Revenue, Refunding RB:
5.00%, 8/01/18		1,360		1,498,734
5.00%, 8/01/19		2,665		3,017,766
University of Connecticut, RB, Series A, 5.00%, 2/15/18		1,000		1,084,550
				8,998,160
Delaware — 2.4%
University of Delaware, Refunding RB, Series C, 0.70%, 11/01/37 (a)		15,000		15,001,650
District of Columbia — 0.7%
Metropolitan Washington Airports Authority, Refunding RB, Series A AMT, 5.00%, 10/01/17		4,000		4,276,080

Municipal Bonds	Par   (000)		Value
Florida — 5.1%
City of Jacksonville Florida, Refunding RB, Series C, 5.00%, 10/01/16	$	1,280	$	1,323,443
County of Miami-Dade Florida, Refunding ARB, Series A, AMT, 5.00%, 10/01/16		1,750		1,807,645
Florida Department of Environmental Protection, Refunding RB, Series A, 5.00%, 7/01/18		17,985		19,752,206
Florida State Department of Environmental Protection, Refunding RB, Everglades Restoration, Series A (AGC), 5.00%, 7/01/16		205		209,779
Highlands County Health Facilities Authority, Refunding RB, Adventist Health System/Sunbelt Obligated Group, Series I, 5.00%, 11/15/16		1,035		1,075,572
State of Florida, GO, Refunding, Series A, 5.00%, 7/01/19		6,500		7,372,820
				31,541,465
Georgia — 1.4%
City of Atlanta Georgia Department of Aviation, RB, Series B, 5.00%, 1/01/17		7,000		7,308,070
City of Atlanta Georgia Department of Aviation, Refunding RB, Series C, AMT, 5.00%, 1/01/17		1,500		1,564,320
				8,872,390
Illinois — 4.3%
City of Chicago Illinois Waterworks Revenue, Refunding RB, 5.00%, 11/01/17		1,075		1,133,598
Illinois State Toll Highway Authority, Refunding RB, Series D, 5.00%, 1/01/18		1,250		1,347,213
Metropolitan Water Reclamation District of Greater Chicago, GO, Refunding Series A, 5.00%, 12/01/17		1,005		1,083,008
Regional Transportation Authority, GO, Refunding, ERS, Series B, 0.60%, 6/01/25 (a)		14,375		14,375,000
State of Illinois, GO, 4.00%, 2/01/17		2,000		2,052,220
State of Illinois, RB, Unemployment Insurance Fund Building Receipts, Series A, 5.00%, 6/15/16		2,500		2,553,575
State of Illinois, Refunding RB, 5.00%, 6/15/19		3,715		4,161,171
				26,705,785
Indiana — 0.1%
Indiana Finance Authority, Refunding RB, Marquette Project, 5.00%, 3/01/16		730		733,708
Iowa — 0.7%
Iowa Finance Authority, Refunding RB, 5.00%, 8/01/17		4,250		4,535,345
Kentucky — 1.6%
Counties of Louisville & Jefferson Kentucky Metropolitan Government, GO, Refunding Series E, 4.00%, 11/15/16		4,450		4,587,060
Kentucky Public Transportation Infrastructure Authority, RB, Downtown Crossing Project, Series A, 5.00%, 7/01/17		5,000		5,277,750
				9,864,810
Louisiana — 0.5%
Tobacco Settlement Financing Corp., Refunding RB, Series A, 5.00%, 5/15/16		3,000		3,045,270
Massachusetts — 4.3%
Commonwealth of Massachusetts, GO, Refunding, Series B, 5.00%, 8/01/19		7,595		8,623,287
Massachusetts Clean Water Trust, Refunding RB, 5.00%, 8/01/18		3,500		3,862,250
Massachusetts Health & Educational Facilities Authority, RB, 0.80%, 11/01/33 (a)		1,000		994,170
Massachusetts Port Authority, RB, Series A, AMT, 5.00%, 7/01/16		1,625		1,661,644

See Notes to Financial Statements.

SEMI-ANNUAL REPORT DECEMBER 31, 2015 33

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

Municipal Bonds	Par   (000)		Value
Massachusetts (continued)
Massachusetts State Educational Financing Authority, RB, AMT:
4.00%, 1/01/17	$	800	$	819,456
4.00%, 1/01/18		1,750		1,823,185
University of Massachusetts Building Authority, RB, 5.00%, 11/01/17		8,000		8,605,520
				26,389,512
Michigan — 0.2%
Michigan Finance Authority, Refunding RB, AMT, 5.00%, 11/01/16		1,400		1,441,412
Missouri — 0.4%
University of Missouri, Refunding RB, Series A, 4.00%, 11/01/17		2,555		2,705,387
Nevada — 5.2%
County of Clark Department of Aviation, Refunding RB, Series B, 5.00%, 7/01/18		2,250		2,466,382
County of Clark Nevada School District, GO, Refunding, Series B, 5.50%, 6/15/17		13,760		14,693,341
State of Nevada, Refunding RB, 5.00%, 6/01/17		14,000		14,838,460
				31,998,183
New Hampshire — 0.2%
State of New Hampshire, RB, Federal Highway, GAN, 5.00%, 9/01/16		1,250		1,287,625
New Jersey — 5.3%
New Jersey EDA, Refunding RB, 5.00%, 12/15/16		1,925		1,994,242
New Jersey Educational Facilities Authority, RB, 5.00%, 6/01/17		12,910		13,477,653
New Jersey Educational Facilities Authority, Refunding RB, Series A, 5.00%, 7/01/17		2,345		2,497,027
New Jersey Health Care Facilities Financing Authority, Refunding RB:
Barnabas Health, Series A, 5.00%, 7/01/16		1,000		1,020,360
Meridian Health System, 5.00%, 7/01/17		2,000		2,121,600
New Jersey Transportation Trust Fund Authority, RB:
Series AA, 4.00%, 6/15/16		2,850		2,890,185
Transportation System, 5.75%, 6/15/16		6,275		6,413,238
State of New Jersey, GO, Refunding, Series O, 5.00%, 8/01/16		2,300		2,360,766
				32,775,071
New Mexico — 0.9%
County of Albuquerque Bernalillo Water Utility Authority, Refunding RB, 5.00%, 7/01/18		3,470		3,818,214
New Mexico Finance Authority, Refunding RB, 5.00%, 6/15/18		1,330		1,461,750
				5,279,964
New York — 16.5%
City of New York, GO, Refunding, Series A, 5.00%, 8/01/19		10,000		11,323,700
Erie County Industrial Development Agency, Refunding RB, 5.00%, 5/01/18		2,000		2,182,260
New York City Transitional Finance Authority Future Tax Secured Revenue, RB, Series E-1:
5.00%, 2/01/18		4,655		5,044,251
5.00%, 2/01/19		5,000		5,584,900
New York City Transitional Finance Authority Future Tax Secured Revenue, Refunding RB, Series B, 5.00%, 11/01/18		3,605		3,998,197
New York State Dormitory Authority, RB:
Series A, 4.00%, 3/15/17		4,000		4,161,600
Series A, 5.00%, 2/15/17		2,495		2,615,359
Series A, 5.00%, 3/15/18		7,125		7,753,211
Series B, 5.00%, 3/15/17		3,600		3,785,436

Municipal Bonds	Par   (000)		Value
New York (continued)
New York State Dormitory Authority, Refunding RB:
4.00%, 2/15/18	$	2,200	$	2,333,210
NYU Hospital Center, Series A, 5.00%, 7/01/16		1,000		1,021,730
Series A, 4.00%, 7/01/16		1,210		1,231,248
Series A, 5.00%, 3/15/18		20,000		21,763,400
New York State Environmental Facilities Corp., Refunding RB, Series A, 5.00%, 6/15/18		5,000		5,488,900
New York State Thruway Authority, Refunding RB, Series I:
5.00%, 1/01/16 (c)		115		115,000
5.00%, 1/01/16		385		385,000
New York State Urban Development Corp., RB, Personal Income Tax, Series C, 5.00%, 3/15/17		6,470		6,803,270
Port Authority of New York & New Jersey, RB, 5.00%, 9/15/19		5,000		5,634,650
State of New York, GO, Refunding Series C, 5.00%, 4/15/17		10,000		10,576,500
				101,801,822
North Carolina — 1.8%
City of Charlotte North Carolina Water & Sewer System Revenue, Refunding RB, 5.00%, 7/01/18		3,500		3,852,135
North Carolina Capital Facilities Finance Agency, Refunding RB, High Point University, 4.00%, 5/01/16		1,770		1,790,001
North Carolina Municipal Power Agency No 1, Refunding RB, Series A:
5.25%, 1/01/17		3,210		3,356,954
5.25%, 1/01/17 (c)		1,790		1,871,570
				10,870,660
Ohio — 3.4%
City of Columbus, GO:
Series 1, 5.00%, 7/01/17		2,175		2,313,634
Series A, 5.00%, 2/15/18		10,000		10,867,600
State of Ohio, GO:
Series B, 5.00%, 3/15/19		5,000		5,612,450
Refunding Series A, 5.00%, 9/15/17		2,000		2,142,080
				20,935,764
Oklahoma — 0.6%
County of Cleveland Oklahoma Educational Facilities Authority, LRB:
Moore Public Schools Project, 5.00%, 6/01/16		845		861,241
Norman Public Schools Project, 5.00%, 7/01/16		1,000		1,022,800
Norman Public Schools Project, 5.00%, 7/01/17		1,520		1,613,115
				3,497,156
Oregon — 3.5%
City of Portland OR Sewer System Revenue, Refunding RB, Series A:
1st Lien, 5.00%, 6/01/19		10,000		11,317,900
5.00%, 6/15/18		3,750		4,123,050
Portland Community College District, GO, Refunding, 5.00%, 6/15/17		6,105		6,482,167
				21,923,117
Pennsylvania — 2.1%
City of Philadelphia Pennsylvania, Refunding ARB, Series A, AMT, 5.00%, 6/15/17		2,000		2,112,960
Commonwealth of Pennsylvania, GO, Refunding, 5.00%, 8/15/17		3,000		3,201,030
Pennsylvania Economic Development Financing Authority, Refunding RB, Series A, 5.00%, 7/01/18		5,000		5,501,750

See Notes to Financial Statements.

34 SEMI-ANNUAL REPORT DECEMBER 31, 2015

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

Municipal Bonds	Par   (000)		Value
Pennsylvania (continued)
Pennsylvania Intergovernmental Cooperation Authority, Refunding, Special Tax Bonds, Philadelphia Funding Program, 5.00%, 6/15/18	$	2,000	$	2,194,340
				13,010,080
Rhode Island — 0.8%
Tobacco Settlement Financing Corp., Refunding RB, Series A, 4.00%, 6/01/17		5,000		5,218,650
Tennessee — 2.1%
State of Tennessee, GO:
Refunding Series A, 5.00%, 8/01/18		5,000		5,517,500
Refunding Series A, 5.00%, 8/01/19		4,565		5,193,692
Refunding Series B, 5.00%, 8/01/19		2,165		2,463,164
				13,174,356
Texas — 6.5%
City of Corpus Christi Texas Utility System, Refunding RB, 4.00%, 7/15/17		2,000		2,093,040
City of San Antonio, GO, Refunding:
4.00%, 2/01/17		5,000		5,183,300
5.00%, 2/01/18		2,475		2,685,004
City Public Service Board of San Antonio, Refunding RB:
Junior Lien, 5.00%, 2/01/18		6,000		6,509,100
Series D, 5.00%, 2/01/19		6,485		7,252,046
County of Harris Texas Cultural Education Facilities Finance Corp., Refunding RB, Memorial Hermann Health System, Series A, 4.00%, 12/01/16		525		539,768
Lower Colorado River Authority, Refunding RB, Series D, 5.00%, 5/15/17		2,000		2,111,200
North Texas Municipal Water District, Refunding RB, 5.00%, 9/01/18		5,910		6,528,718
Northside Texas ISD, GO, Refunding, 5.00%, 2/15/17		6,910		7,249,695
				40,151,871

Municipal Bonds	Par   (000)		Value
Virginia — 1.5%
Virginia College Building Authority, RB, Series A, 5.00%, 2/01/17	$	4,800	$	5,027,184
Virginia Public School Authority, RB, 5.00%, 7/15/18		4,080		4,496,038
				9,523,222
Washington — 4.6%
City of Seattle Washington Municipal Light & Power Revenue, Refunding RB, 5.00%, 9/01/18		15,715		17,360,203
State of Washington, GO:
5.00%, 7/01/18 (b)		2,625		2,884,980
5.00%, 7/01/18		7,005		7,704,239
Washington Health Care Facilities Authority, Refunding RB, 5.00%, 3/01/18		290		311,301
				28,260,723
Wisconsin — 1.2%
Wisconsin Health & Educational Facilities Authority, Refunding RB, Series B, 5.13%, 8/15/27 (a)		7,500		7,703,624
Total Long-Term Investments (Cost — $594,491,883) — 96.1%				594,263,431
Short-Term Securities	Shares
FFI Institutional Tax-Exempt Fund, 0.02% (d)(e)		9,414,759	$	9,414,759
Total Short-Term Securities (Cost — $9,414,759) — 1.5%				9,414,759
Total Investments (Cost — $603,906,642) — 97.6%				603,678,190
Other Assets Less Liabilities — 2.4%				14,777,964
Net Assets — 100.0%			$	618,456,154

Notes to Schedule of Investments

(a) Variable rate security. Rate as of period end.

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

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

(d) During the six months ended December 31, 2015, investments in issuers considered to be an affiliate of the Fund 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, 2015		Net Activity		Shares Held at December 31, 2015		Income
FFI Institutional Tax-Exempt Fund		8,207,246		1,207,513		9,414,759	$	769

(e) Current yield as of period end.

Fair Value Hierarchy as of Period End

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

The following table summarizes the Fund’s investments categorized in the disclosure hierarchy:

	Level 1		Level 2		Level 3	Total
Assets:
Investments:
Long-Term Investments 1		—	$	594,263,431	—	$	594,263,431
Short-Term Securities	$	9,414,759		—	—		9,414,759
Total	$	9,414,759	$	594,263,431	—	$	603,678,190
1    See above Schedule of Investments for values in each state or political sub-division.

During the six months ended December 31, 2015, there were no transfers between levels.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT DECEMBER 31, 2015 35

Schedule of Investments December 31, 2015 (Unaudited) BlackRock New York Municipal Opportunities Fund (Percentages shown are based on Net Assets)

Corporate Bonds	Par   (000)		Value
New York — 0.4%
American Museum of Natural History, 4.37%, 7/15/45	$	1,000	$	989,303
New York Public Library Astor Lenox & Tilden Foundations, 4.31%, 7/01/45		1,000		939,620
Total Corporate Bonds — 0.4%				1,928,923
Municipal Bonds
New York — 88.4%
Corporate — 6.8%
City of New York New York Build Resource Corp., Refunding RB, Pratt Paper, Inc. Project, AMT, 5.00%, 1/01/35 (a)		280		300,748
City of New York New York Industrial Development Agency, ARB, American Airlines, Inc., JFK International Airport Project, AMT (b):
7.75%, 8/01/31		2,000		2,087,520
Series B, 2.00%, 8/01/28		10,200		10,219,686
City of New York New York Industrial Development Agency, Refunding RB:
Special Needs FAS Pool, 4.38%, 7/01/20		590		558,883
Terminal One Group Association Project, AMT, 5.50%, 1/01/24 (b)		2,500		2,504,325
Transportation Infrastructure Properties LLC, Series A, AMT, 5.00%, 7/01/28		1,520		1,640,886
County of Essex New York Industrial Development Agency, RB, International Paper Co. Project, Series A, AMT, 6.63%, 9/01/32		350		387,387
New York Liberty Development Corp., RB, Goldman Sachs Headquarters, 5.50%, 10/01/37		780		972,356
New York Liberty Development Corp., Refunding RB, Goldman Sachs Headquarters, 5.25%, 10/01/35		5,155		6,218,631
Niagara Area Development Corp., Refunding RB, Solid Waste Disposal Facility, Covanta Energy Project, Series A, AMT, 5.25%, 11/01/42 (a)		2,150		2,167,909
Onondaga County Industrial Development Agency, RB, AMT, 5.75%, 3/01/24		750		940,268
Southold Local Development Corp., RB, Peconic Landing Inc., Project, 4.00%, 12/01/45		1,900		1,886,814
				29,885,413
County/City/Special District/School District — 24.2%
City of New York New York, GO, Fiscal 2014, Sub-Series D-1, 5.00%, 8/01/31		690		821,066
City of New York New York, GO, Refunding:
5.00%, 8/01/29		1,940		2,348,545
5.00%, 8/01/30		2,250		2,709,292
Series B, 5.00%, 8/01/31		1,250		1,495,975
Series C, 5.00%, 8/01/34		500		585,485
Series E, 5.50%, 8/01/25		1,280		1,625,907
City of New York New York, GO, Series A:
Series A-1, 5.00%, 8/01/35		400		466,136
Sub-Series I-1, 5.38%, 4/01/36		2,650		2,982,840
City of New York New York Convention Center Development Corp., Refunding RB:
5.00%, 11/15/35		3,500		4,110,505
Hotel Unit Fee Secured, 5.00%, 11/15/40		3,345		3,869,128
Hotel Unit Fee Secured, 4.00%, 11/15/45		2,205		2,301,844
Hotel Unit Fee Secured, 5.00%, 11/15/45		8,490		9,759,085
City of New York New York Housing Development Corp., RB, M/F Housing, Fund Grant Program, New York City Housing Authority Program, Series B1:
5.25%, 7/01/32		2,020		2,357,158
5.00%, 7/01/33		400		455,100

Municipal Bonds	Par   (000)		Value
New York (continued)
County/City/Special District/School District (continued)
City of New York New York Industrial Development Agency, RB, PILOT:
CAB, Yankee Stadium Project, Series A (AGC), 0.00%, 3/01/42 (c)	$	5,000	$	1,732,600
CAB, Yankee Stadium Project, Series A (AGC), 0.00%, 3/01/45 (c)		1,500		457,575
Queens Baseball Stadium (AMBAC), 5.00%, 1/01/39		1,850		1,897,434
Queens Baseball Stadium (AGC), 6.50%, 1/01/46		700		796,544
Queens Baseball Stadium (AMBAC), 5.00%, 1/01/46		790		808,691
Yankee Stadium Project (NPFGC), 5.00%, 3/01/46		1,000		1,018,400
Yankee Stadium Project (NPFGC), 4.75%, 3/01/46		250		255,453
City of New York New York Industrial Development Agency, Refunding ARB, Transportation Infrastructure Properties LLC, Series A, AMT, 5.00%, 7/01/22		500		564,640
City of New York New York Transitional Finance Authority, BARB, Fiscal 2009, Series S-1, 5.63%, 7/15/38		200		221,620
City of New York New York Transitional Finance Authority, RB, Fiscal 2012, Sub-Series E-1, 5.00%, 2/01/42		650		731,400
City of New York New York Transitional Finance Authority Future Tax Secured, RB:
3.15%, 11/01/25		2,000		1,974,920
Fiscal 2015, Sub-Series B-1, 5.00%, 8/01/42		3,000		3,441,210
Fiscal 2015, Sub-Series E-1, 5.00%, 2/01/41		3,000		3,466,140
Sub-Series A-1, 5.00%, 11/01/38		1,000		1,146,170
Sub-Series B-1, 5.00%, 11/01/36		680		791,030
Sub-Series B-1, 5.00%, 11/01/38		5,000		5,873,850
City of Syracuse New York, GO, Airport Terminal Security & Access, Series A, AMT (AGM), 4.75%, 11/01/31		500		540,645
City of Yonkers, GO, Refunding, Series B (AGM), 5.00%, 8/01/23		100		119,986
Counties of Buffalo & Erie New York Industrial Land Development Corp., Refunding RB, Buffalo State College Foundation Housing Corp. Project, Series A, 5.38%, 10/01/41		620		690,525
Haverstraw-Stony Point Central School District, GO, Refunding:
3.00%, 10/15/34		900		869,751
5.00%, 10/15/35		160		186,544
5.00%, 10/15/36		140		162,690
Hudson Yards Infrastructure Corp., RB, Series A:
5.00%, 2/15/47		5,970		6,186,890
5.75%, 2/15/47		100		115,929
(AGC), 5.00%, 2/15/47		1,000		1,039,520
(AGM), 5.00%, 2/15/47		800		831,616
(NPFGC), 4.50%, 2/15/47		2,315		2,389,427
New York Liberty Development Corp., Refunding RB:
2nd Priority, Bank of America Tower at One Bryant Park Project, Class 2, 5.63%, 7/15/47		9,305		10,588,066
2nd Priority, Bank of America Tower at One Bryant Park Project, Class 3, 6.38%, 7/15/49		1,200		1,354,176
3 World Trade Center Project, Class 1, 5.00%, 11/15/44 (a)		5,000		5,162,100
3 World Trade Center Project, Class 2, 5.38%, 11/15/40 (a)		400		424,748
4 World Trade Center Project, 5.00%, 11/15/31		860		988,372
4 World Trade Center Project, 5.00%, 11/15/44		1,500		1,675,785

See Notes to Financial Statements.

36 SEMI-ANNUAL REPORT DECEMBER 31, 2015

Schedule of Investments (continued) BlackRock New York Municipal Opportunities Fund

Municipal Bonds	Par   (000)		Value
New York (continued)
County/City/Special District/School District (continued)
New York Liberty Development Corp., Refunding RB (continued):
4 World Trade Center Project, 5.75%, 11/15/51	$	1,250	$	1,451,288
7 World Trade Center Project, Class 1, 4.00%, 9/15/35		425		465,260
7 World Trade Center Project, Class 2, 5.00%, 9/15/43		5,085		5,653,656
7 World Trade Center Project, Class 3, 5.00%, 3/15/44		1,720		1,886,823
State of New York State Dormitory Authority, RB, Series C, 5.00%, 10/01/42		1,695		1,930,317
				105,779,857
Education — 13.8%
Amherst Development Corp., Refunding RB, University at Buffalo Foundation Faculty-Student Housing Corp., Series A (AGM), 4.63%, 10/01/40		305		324,898
Build New York City Resource Corp., RB, South Bronx Charter School for International Cultures and the Arts Project, Series A, 5.00%, 4/15/43		1,000		1,017,030
Build New York City Resource Corp., Refunding RB:
3.75%, 6/01/34		550		563,068
Series A, 5.00%, 6/01/43		325		365,560
City of New York New York Trust for Cultural Resources, RB, Juilliard School, Series A, 5.00%, 1/01/39		500		552,390
City of New York New York Trust for Cultural Resources, Refunding RB, Series A:
American Museum of Natural History, 5.00%, 7/01/37		885		1,024,839
Carnegie Hall, 4.75%, 12/01/39		1,550		1,712,393
Carnegie Hall, 5.00%, 12/01/39		1,325		1,482,622
City of Troy New York Capital Resource Corp., Refunding RB:
5.00%, 8/01/28		2,000		2,378,520
Rensselaer Polytechnic Institute Project, Series A, 5.13%, 9/01/40		4,280		4,812,603
Rensselaer Polytechnic Institute Project, Series B, 4.00%, 8/01/35		1,000		1,042,980
City of Yonkers New York Industrial Development Agency, RB, Sarah Lawrence College Project, Series A, 6.00%, 6/01/41		1,000		1,128,540
County of Cattaraugus New York, RB, St. Bonaventure University Project:
5.00%, 5/01/34		130		142,604
5.00%, 5/01/39		165		177,557
County of Madison New York Industrial Development Agency, RB, Commons II LLC, Student Housing, Series A (CIFG), 5.00%, 6/01/18 (d)		400		436,644
County of Monroe New York Industrial Development Corp., Refunding RB, University of Rochester Project, Series A, 5.00%, 7/01/38		240		274,274
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		1,065,680
County of Orange New York Funding Corp., Refunding RB, Mount St. Mary College Project, Series A:
5.00%, 7/01/37		360		386,820
5.00%, 7/01/42		220		233,387
County of Saratoga New York, Refunding RB, Series B, 4.00%, 7/01/33		1,000		1,053,640
County of Schenectady New York Industrial Development Agency, Refunding RB, Union College Project, 5.00%, 7/01/16 (d)		1,000		1,023,210

Municipal Bonds	Par   (000)		Value
New York (continued)
Education (continued)
County of St. Lawrence New York Industrial Development Agency, RB, Clarkson University Project, 5.38%, 9/01/41	$	500	$	561,025
County of Tompkins New York Development Corp., RB, Ithaca College Project (AGM), 5.50%, 7/01/33		450		518,108
Dobbs Ferry Local Development Corp., RB, Mercy College Project:
5.00%, 7/01/39		1,000		1,120,390
5.00%, 7/01/44		2,000		2,229,820
State of New York Dormitory Authority, Refunding RB, Barnard College, Series A, 5.00%, 7/01/33		470		553,580
State of New York Dormitory Authority, RB:
Icahn Shool of Medicine at Mount Sinai, 5.00%, 7/01/40		3,000		3,394,710
New School (AGM), 5.50%, 7/01/43		1,000		1,146,440
New York University, Series 1 (AMBAC), 5.50%, 7/01/40		500		680,480
New York University, Series 1 (AMBAC) (BHAC), 5.50%, 7/01/31		230		295,700
Personal Income Tax, Series G, 5.00%, 8/15/32		1,975		2,310,473
Series A, 5.50%, 1/01/44		2,000		2,193,240
State University Dormitory Facilities, Series A, 5.25%, 7/01/19 (d)		5		5,724
State University Dormitory Facilities, Series A, 5.00%, 7/01/39		750		832,012
Teachers College, Series B, 5.00%, 7/01/42		360		405,630
Touro College & University System Obligation Group, Series A, 4.13%, 1/01/30		600		625,350
University of Rochester, Series A, 5.75%, 7/01/39 (e)		1,000		1,136,880
University of Rochester, Series B, 5.00%, 1/01/17 (d)		550		573,920
State of New York Dormitory Authority, Refunding RB:
Barnard College, Series A, 4.00%, 7/01/36		470		497,824
Barnard College, Series A, 5.00%, 7/01/43		1,000		1,145,570
Brooklyn Law School, 5.75%, 7/01/33		475		531,425
Culinary Institute of America, 5.00%, 7/01/42		300		320,742
Fordham University, 5.00%, 7/01/44		850		963,075
Icahn School of Medicine at Mount Sinai, Series A, 5.00%, 7/01/35		800		909,440
Icahn School of Medicine at Mount Sinai, Series A, 4.00%, 7/01/40		1,750		1,804,477
New York University, Series A, 5.00%, 7/01/42		1,000		1,142,040
Pratt Institute, Series A, 5.00%, 7/01/44		1,000		1,118,040
Rochester Institute of Technology, 5.00%, 7/01/34		750		857,490
Rochester Institute of Technology, 5.00%, 7/01/42		1,460		1,639,522
Skidmore College, Series A, 5.25%, 7/01/29		135		158,090
St. John’s University, Series A, 5.00%, 7/01/37		350		400,334
State University Dormitory Facilities, Series A, 5.25%, 7/01/30		2,095		2,512,135
State University Dormitory Facilities, Series A, 5.25%, 7/01/32		2,095		2,488,357
State University Dormitory Facilities, Series A, 5.00%, 7/01/42		895		1,014,116
State University Dormitory Facilities, Series B, 3.50%, 7/01/34		1,280		1,291,354
Teachers College, 5.50%, 3/01/39		850		950,419
Town of Hempstead New York Local Development Corp., Refunding RB:
Adelphi University Project, 5.00%, 10/01/35		265		305,071
Adelphini University Project, 5.00%, 10/01/34		465		536,856
				60,369,118

See Notes to Financial Statements.

SEMI-ANNUAL REPORT DECEMBER 31, 2015 37

Schedule of Investments (continued) BlackRock New York Municipal Opportunities Fund

Municipal Bonds	Par   (000)		Value
New York (continued)
Health — 8.8%
Buffalo & Erie County Industrial Land Development Corp., RB, 5.25%, 7/01/35	$	500	$	575,000
Build NYC Resource Corp., Refunding RB, New York Methodist Hospital Project, 5.00%, 7/01/30		600		680,058
City of New York New York Health & Hospital Corp., Refunding RB, Health System, Series A, 5.00%, 2/15/30		1,000		1,106,410
City of New York New York Industrial Development Agency, RB, Special Needs Facilities Pooled Program:
Series A-1, 6.50%, 7/01/17		260		260,156
Series C-1, 6.50%, 7/01/17		1,055		1,055,633
City of New York New York Industrial Development Agency, Refunding RB, Special Needs Facilities Pooled Program, Series C-1 (ACA), 5.10%, 7/01/31		525		515,356
County of Dutchess New York Local Development Corp., RB, Series A, 5.00%, 7/01/34		750		837,937
County of Dutchess New York Local Development Corp., Refunding RB, Health Quest System, Inc., Series A, 5.75%, 7/01/40		300		339,072
County of Erie New York Industrial Development Agency, RB, Episcopal Church Home, Series A:
5.88%, 2/01/18		85		85,239
6.00%, 2/01/28		185		185,311
County of Genesee New York Industrial Development Agency, Refunding RB, United Memorial Medical Center Project:
5.00%, 12/01/27		465		465,451
5.00%, 12/01/32		580		580,441
County of Monroe New York Industrial Development Corp., Refunding RB, Unity Hospital of Rochester Project (FHA), 5.50%, 8/15/40		1,050		1,225,056
County of Nassau New York Industrial Development Agency, Refunding RB, Special Needs Facility Pooled Program (ACA), 4.90%, 7/01/21		330		330,736
County of Orange New York Industrial Development Agency, RB, Special Needs Facilities Pooled Program, Series G-1 (ACA), 4.90%, 7/01/21		845		846,884
County of Suffolk New York EDC, RB, Catholic Health Services, Series C, 5.00%, 7/01/32		305		341,957
County of Suffolk New York Industrial Development Agency, RB, Special Needs Facilities Pooled Program, Series D-1, 6.50%, 7/01/17		75		75,154
County of Sullivan New York Industrial Development Agency, RB, Special Needs Facilities Pooled Program, Series H-1 (ACA), 4.90%, 7/01/21		330		330,736
County of Tompkins New York Development Corp., Refunding RB:
5.00%, 7/01/44		1,250		1,352,425
Kendal at Ithaca, Inc. Project, 4.25%, 7/01/44		1,595		1,595,781
County of Westchester New York Healthcare Corp., Refunding RB, Senior Lien:
Remarketing, Series A, 5.00%, 11/01/30		3,645		4,061,551
Series B, 6.00%, 11/01/30		375		429,821
County of Westchester New York Local Development Corp., Refunding RB:
Kendal On Hudson Project, 5.00%, 1/01/28		930		1,022,609
Kendal on Hudson Project, 5.00%, 1/01/34		875		945,709
State of New York Dormitory Authority, RB:
Healthcare, Series A, 5.00%, 3/15/38		250		278,110
Hudson Valley Hospital (BHAC) (FHA), 5.00%, 8/15/36		750		794,505
Mental Health Services (AGM), 5.00%, 8/15/18 (d)		5		5,522

Municipal Bonds	Par   (000)		Value
New York (continued)
Health (continued)
State of New York Dormitory Authority, RB (continued):
Mental Health Services (AGM), 5.00%, 2/15/22	$	990	$	1,090,911
Mental Health Services, 2nd Series (AGM), 5.00%, 8/15/18 (d)		5		5,522
New York State Association for Retarded Children, Inc., Series B (AMBAC), 6.00%, 7/01/32		700		804,174
New York University Hospitals Center, Series A, 5.75%, 7/01/31		1,055		1,214,875
North Shore-Long Island Jewish Obligated Group, Series A, 5.50%, 5/01/19 (d)		1,675		1,919,299
North Shore-Long Island Jewish Obligated Group, Series A, 5.75%, 5/01/19 (d)		1,725		1,990,684
Orange Regional Medical Center, 5.00%, 12/01/40 (a)		1,300		1,374,971
Orange Regional Medical Center, 5.00%, 12/01/45 (a)		1,700		1,769,904
State of New York Dormitory Authority, Refunding RB:
Miriam Osborn Memorial Home Association, 5.00%, 7/01/29		290		308,737
Mount Sinai Hospital, Series A, 5.00%, 7/01/26		1,635		1,860,205
North Shore-Long Island Jewish Obligated Group, 5.00%, 5/01/43		1,570		1,756,061
North Shore-Long Island Jewish Obligated Group, Series A, 5.00%, 5/01/32		2,500		2,766,725
North Shore-Long Island Jewish Obligated Group, Series E, 5.50%, 5/01/33		1,000		1,109,220
				38,293,908
Housing — 2.5%
City of New York New York Housing Development Corp., Refunding RB:
3.85%, 11/01/45		1,915		1,926,337
M/F Housing, 8 Spruce Street, Class F, 4.50%, 2/15/48		770		797,204
City of Yonkers New York Industrial Development Agency, RB, AMT (SONYMA):
Monastery Manor Associates LP Project, 5.25%, 4/01/37		585		586,872
Sacred Heart Association Project, Series A, 5.00%, 10/01/37		1,640		1,663,829
County of Monroe New York Industrial Development Agency, IDRB, Southview Towers Project, AMT (SONYMA), 6.25%, 2/01/31		1,000		1,002,380
County Westchester Local Development Corp., Refunding RB, Waterburg Senior Housing, Series A, 5.00%, 6/01/30 (a)		965		985,313
State of New York HFA, RB, M/F Housing, Series A, AMT:
Division Street (SONYMA), 5.10%, 2/15/38		875		876,243
Highland Avenue Senior Apartments (SONYMA), 5.00%, 2/15/39		2,000		2,022,740
Kensico Terrace Apartments (SONYMA), 4.90%, 2/15/38		645		649,057
Watergate II, 4.75%, 2/15/34		580		580,481
				11,090,456
State — 4.6%
Sales Tax Asset Receivable Corp., Refunding RB, Series A:
5.00%, 10/15/31		1,625		1,963,650
4.00%, 10/15/32		1,445		1,604,196
State of New York, GO, Series A, 5.00%, 2/15/39		750		835,883
State of New York Dormitory Authority, RB:
Series B, 5.00%, 3/15/37		1,500		1,774,500
State Supported Debt, Series A, 5.00%, 3/15/44		3,305		3,790,240

See Notes to Financial Statements.

38 SEMI-ANNUAL REPORT DECEMBER 31, 2015

Schedule of Investments (continued) BlackRock New York Municipal Opportunities Fund

Municipal Bonds	Par   (000)		Value
New York (continued)
State (continued)
State of New York Thruway Authority, Refunding RB, Series A-1, 5.00%, 4/01/29	$	1,000	$	1,108,610
State of New York Urban Development Corp., RB, State Personal Income Tax, Series C, 5.00%, 3/15/32		4,000		4,675,600
State of New York Urban Development Corp., Refunding RB:
Clarkson Center Advance Materials, 5.50%, 1/01/20		1,380		1,494,526
University Facilities Grants, 5.50%, 1/01/19		2,695		2,887,719
				20,134,924
Tobacco — 4.9%
Counties of New York Tobacco Trust IV, Refunding RB, Series A:
5.00%, 6/01/42		305		279,905
5.00%, 6/01/45		170		153,602
Settlement Pass-Through Turbo, 6.25%, 6/01/41 (a)		4,800		5,007,696
County of Chautauqua New York Tobacco Asset Securitization Corp., Refunding RB, 4.75%, 6/01/39		750		740,573
County of Niagara New York Tobacco Asset Securitization Corp., Refunding RB, Asset-Backed:
5.25%, 5/15/34		1,750		1,997,782
5.25%, 5/15/40		1,080		1,216,922
Erie Tobacco Asset Securitization Corp., Refunding RB, Asset-Backed, Series A, 5.00%, 6/01/45		4,595		4,436,978
TSASC, Inc., Refunding RB, Series 1, 5.00%, 6/01/34		3,620		3,480,775
Westchester Tobacco Asset Securitization, Refunding RB, 5.13%, 6/01/45		4,145		4,144,834
				21,459,067
Transportation — 13.8%
Metropolitan Transportation Authority, RB:
Dedicated Tax Fund, Series A, 5.63%, 11/15/39		500		562,160
Series A-1, 5.25%, 11/15/33		540		646,358
Series B, 5.25%, 11/15/44		2,125		2,473,181
Series C, 6.50%, 11/15/28		1,760		2,028,506
Series E, 5.00%, 11/15/38		2,350		2,695,027
Series H, 5.00%, 11/15/25		1,000		1,195,520
Metropolitan Transportation Authority, Refunding RB:
5.00%, 11/15/35		1,500		1,760,250
Series F, 5.00%, 11/15/30		1,000		1,178,360
Port Authority of New York & New Jersey, ARB:
Consolidated, 169th Series, 5.00%, 10/15/41		1,000		1,098,820
Special Project, JFK International Air Terminal LLC Project, Series 8, 6.00%, 12/01/42		2,000		2,339,080
Port Authority of New York & New Jersey, RB, Series 192, 4.81%, 10/15/65		2,000		2,031,740
Port Authority of New York & New Jersey, Refunding ARB, Consolidated:
177th Series, AMT, 3.50%, 7/15/37		2,000		1,992,780
177th Series, AMT, 4.00%, 1/15/43		1,255		1,279,686
178th Series, AMT, 5.00%, 12/01/43		285		318,505
186th Series, AMT, 5.00%, 10/15/44		6,000		6,748,020
189th Series, 5.00%, 5/01/45		1,150		1,325,858
Port Authority of New York & New Jersey, Refunding RB, 178th Series, AMT, 5.00%, 12/01/32		1,000		1,152,150
State of New York Thruway Authority, Refunding RB:
5.00%, 1/01/29		5,000		6,033,150
5.00%, 1/01/31		2,500		2,972,100
General, Series I, 5.00%, 1/01/42		280		314,628
General, Series K, 5.00%, 1/01/32		2,000		2,367,120
Series J, 5.00%, 1/01/41		5,750		6,479,732

Municipal Bonds	Par   (000)		Value
New York (continued)
Transportation (continued)
Triborough Bridge & Tunnel Authority, RB, Series B:
5.00%, 11/15/40	$	1,290	$	1,504,192
5.00%, 11/15/45		2,000		2,313,600
Triborough Bridge & Tunnel Authority, Refunding RB:
CAB, Sub-Series A, 0.00%, 11/15/32 (c)		2,480		1,428,951
General, CAB, Series B, 0.00%, 11/15/32 (c)		6,020		3,387,032
General, Series A, 5.00%, 11/15/50		1,000		1,144,720
Series A, 5.00%, 11/15/24		1,375		1,670,474
				60,441,700
Utilities — 9.0%
City of New York New York Municipal Water & Sewer System, Refunding RB, Fiscal 2013, Series BB, 5.00%, 6/15/47		2,000		2,259,640
City of New York New York Municipal Water Finance Authority, RB, Water & Sewer System, Fiscal 2009, Series A, 5.75%, 6/15/40		500		555,975
City of New York New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System, Series FF-2, 5.50%, 6/15/40		800		912,360
Long Island Power Authority, RB, General, Electric Systems:
Series A (AGM), 5.00%, 5/01/36		500		557,010
Series B, 5.00%, 9/01/45		890		1,008,014
Series C (CIFG), 5.25%, 9/01/29		3,000		3,715,260
Long Island Power Authority, Refunding RB, Series A:
Electric System, 5.50%, 4/01/19 (d)		875		1,001,193
Electric System, 6.00%, 5/01/19 (d)		2,450		2,851,751
Electric System, 5.75%, 4/01/39		300		336,354
5.00%, 9/01/34		4,280		4,907,748
New York City Water & Sewer System, Refunding RB, Water & Sewer System, 2nd General Resolution:
Fiscal 2015, Series HH, 5.00%, 6/15/39		1,000		1,164,480
Fiscal 2016, Series BB, 4.00%, 6/15/46		3,830		4,023,568
State of New York Environmental Facilities Corp., RB, 5.00%, 3/15/45		2,535		2,931,246
State of New York Environmental Facilities Corp., Refunding RB:
Series A, 5.00%, 6/15/45		3,000		3,480,030
Series B, Revolving Funds, New York City Municipal Water, 5.00%, 6/15/36		1,000		1,165,360
Utility Debt Securitization Authority, Refunding RB, Restructuring:
3.00%, 12/15/32		3,430		3,476,922
Series E, 5.00%, 12/15/41		4,225		4,916,463
				39,263,374
Total Municipal Bonds in New York				386,717,817
Puerto Rico — 1.0%
Housing — 0.4%
Puerto Rico Housing Finance Authority, Refunding RB, M/F Housing, Subordinate, Capital Fund Modernization, 5.13%, 12/01/27		1,415		1,537,129
Utilities — 0.6%
Children’s Trust Fund, Refunding RB, Asset-Backed, 5.63%, 5/15/43		2,570		2,574,086
Puerto Rico Commonwealth Aqueduct & Sewer Authority, RB, Series A, 6.00%, 7/01/44		265		178,244
				2,752,330
Total Municipal Bonds in Puerto Rico				4,289,459
Total Municipal Bonds — 89.4%				391,007,276

See Notes to Financial Statements.

SEMI-ANNUAL REPORT DECEMBER 31, 2015 39

Schedule of Investments (continued) BlackRock New York Municipal Opportunities Fund

Municipal Bonds Transferred to Tender Option Bond Trusts (f)	Par   (000)		Value
New York — 8.5%
County/City/Special District/School District — 1.0%
City of New York New York, GO:
Sub-Series G-1, 5.00%, 4/01/29	$	750	$	878,918
Sub-Series I-1, 5.00%, 3/01/36		1,500		1,729,890
City of New York New York Transitional Finance Authority, RB, Future Tax Secured, Sub-Series D-1, 5.00%, 11/01/38		1,650		1,860,144
				4,468,952
Education — 0.3%
State of New York Dormitory Authority, LRB, State University Dormitory Facilities, Series A, 5.25%, 7/01/19 (d)		1,350		1,545,345
State — 1.4%
City of New York New York Transitional Finance Authority, BARB, Fiscal 2009, Series S-3, 5.25%, 1/15/39		2,100		2,325,602
Hudson Yards Infrastructure Corp., RB, Fiscal 2012, Series A, 5.75%, 2/15/47 (f)(g)		2,250		2,608,171
State of New York Dormitory Authority, RB, General Purpose, Series C, 5.00%, 3/15/41		1,000		1,148,330
				6,082,103
Transportation — 3.1%
New York Liberty Development Corp., RB, 1 World Trade Center Port Authority Consolidated Bonds, 5.25%, 12/15/43		6,495		7,512,390
Port Authority of New York & New Jersey, ARB, Consolidated, 169th Series, AMT, 5.00%, 10/15/26		1,500		1,755,945
Port Authority of New York & New Jersey, Refunding ARB, 194th Series, 5.25%, 10/15/55		1,950		2,292,556
State of New York Thruway Authority, Refunding RB, Transportation, Personal Income Tax, Series A, 5.00%, 3/15/31		1,560		1,833,078
				13,393,969

Municipal Bonds Transferred to Tender Option Bond Trusts (f)	Par   (000)		Value
New York (continued)
Utilities — 2.7%
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	$	3,216,870
2nd General Resolution, Fiscal 2012, Series BB, 5.00%, 6/15/44		3,751		4,280,651
Series A, 4.75%, 6/15/30		4,000		4,217,200
				11,714,721
Total Municipal Bonds Transferred to Tender Option Bond Trusts — 8.5%				37,205,090
Total Long-Term Investments (Cost — $403,239,911) — 98.3%				430,141,289
Short-Term Securities	Shares
BIF New York Municipal Money Fund, 0.00% (h)(i)		18,183,164		18,183,164
Total Short-Term Securities (Cost — $18,183,164) — 4.2%				18,183,164
Total Investments (Cost — $421,423,075) — 102.5%				448,324,453
Other Assets Less Liabilities — 2.1%				8,965,231
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (4.6)%				(20,013,108	)
Net Assets — 100.0%			$	437,276,576

Notes to Schedule of Investments

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

(b) Variable rate security. Rate as of period end.

(c) Zero-coupon bond.

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

(e) Step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate as of period end.

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

(g) All or a portion of security is subject to a recourse agreement. The aggregate maximum potential amount the Fund could ultimately be required to pay under the agreement, which expires on February 15, 2019, is $1,191,479. See Note 4 of the Notes to Financial Statements for details.

(h) During the six months ended December 31, 2015, investments in issuers considered to be an affiliate of the Fund 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, 2015		Net Activity		Shares Held at December 31, 2015		Income
BIF New York Municipal Money Fund		10,358,839		7,824,325		18,183,164	$	2

(i) Current yield as of period end.

See Notes to Financial Statements.

40 SEMI-ANNUAL REPORT DECEMBER 31, 2015

Schedule of Investments (continued) BlackRock New York Municipal Opportunities Fund

Derivative Financial Instruments Outstanding as of Period End

Financial Futures Contracts

Contracts Short			Issue	Expiration	Notional Value		Unrealized Appreciation
	(74	)	5-Year U.S. Treasury Note	March 2016	$	8,755,703	$	33,802
	(281	)	10-Year U.S. Treasury Note	March 2016	$	35,379,656		178,366
	(189	)	Long U.S. Treasury Bond	March 2016	$	29,058,750		75,351
	(45	)	Ultra U.S. Treasury Bond	March 2016	$	7,140,938		3,845
	Total						$	291,364

Derivative Financial Instruments Categorized by Risk Exposure

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

Assets — Derivative Financial Instruments		Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Currency Exchange Contracts		Interest Rate Contracts		Other Contacts		Total
Financial futures contracts	Net unrealized appreciation1		—		—		—		—	$	291,364		—	$	291,364
1    Includes cumulative appreciation (depreciation) on financial futures contracts, if any, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities.

For the six months ended December 31, 2015, the effect of derivative financial instruments in the Statements of Operations was as follows:

Net Realized Gain (Loss) From:	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Currency Exchange Contracts		Interest Rate Contracts			Other Contacts		Total
Financial futures contracts		—		—		—		—	$	(289,167	)		—	$	(289,167	)
Net Change in Unrealized Appreciation (Depreciation) on:
Financial futures contracts		—		—		—		—	$	(501,369	)		—	$	(501,369	)

Average Quarterly Balances of Outstanding Derivative Financial Instruments

Financial futures contracts:
Average notional value of contracts — short	$	82,420,813

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

Fair Value Hierarchy as of Period End

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

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

	Level 1		Level 2		Level 3	Total
Assets:
Investments:
Long-Term Investments1		—	$	430,141,289	—	$	430,141,289
Short-Term Securities	$	18,183,164		—	—		18,183,164
Total	$	18,183,164	$	430,141,289	—	$	448,324,453
1    See above Schedule of Investments for values in each sector.
	Level 1		Level 2		Level 3	Total
Derivative Financial Instruments1
Assets:
Interest rate contracts	$	291,364		—	—	$	291,364
1   Derivative financial instruments are financial futures contracts, which are valued at the unrealized appreciation (depreciation) on the instrument.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT DECEMBER 31, 2015 41

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

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

	Level 1		Level 2			Level 3		Total
Assets:
Cash pledged for financial futures contracts	$	1,322,350		—			—	$	1,322,350
Liabilities:
TOB Trust Certificates		—	$	(20,010,373	)		—		(20,010,373	)
Total	$	1,322,350	$	(20,010,373	)		—	$	(18,688,023	)

During the six months ended December 31, 2015, there were no transfers between levels.

See Notes to Financial Statements.

42 SEMI-ANNUAL REPORT DECEMBER 31, 2015

Statements of Assets and Liabilities

December 31, 2015 (Unaudited)	BlackRock High Yield Municipal Fund			BlackRock National Municipal Fund			BlackRock Short-Term Municipal Fund			BlackRock New York Municipal Opportunities Fund
Assets
Investments at value — unaffiliated1	$	649,481,873		$	5,933,457,116		$	594,263,431		$	430,141,289
Investments at value — affiliated2		38,438,476			421,366,094			9,414,759			18,183,164
Cash		189,795			578,252			—			—
Cash pledged for financial futures contracts		203,500			1,597,000			—			1,322,350
Receivables:
Interest		7,213,272			75,154,661			7,520,802			5,421,428
Capital shares sold		2,702,373			19,478,200			8,635,483			3,036,288
Investments sold		225,000			37,444,369			—			1,110,000
Prepaid expenses		42,426			264,098			60,317			42,422
Total assets		698,496,715			6,489,339,790			619,894,792			459,256,941
Liabilities
Payables:
Investments purchased		4,607,259			79,277,421			—			—
Income dividends		1,083,303			5,484,995			129,630			532,827
Capital shares redeemed		931,646			12,890,638			1,016,663			869,487
Investment advisory fees		273,087			2,212,459			165,390			183,324
Service and distribution fees		84,912			941,512			48,968			81,510
Interest expense and fees		9,385			11,755			—			2,735
Officer’s and Directors’ fees		5,516			18,699			6,382			4,470
Other affiliates		1,365			7,948			2,687			348
Other accrued expenses		156,250			459,255			68,918			61,965
Variation margin payable on financial futures contracts		36,640			280,808			—			233,326
Total accrued liabilities		7,189,363			101,585,490			1,438,638			1,969,992
Other Liabilities
TOB Trust Certificates		52,625,555			178,529,971			—			20,010,373
Total liabilities		59,814,918			280,115,461			1,438,710			21,980,365
Net Assets	$	638,681,797		$	6,209,224,329		$	618,456,154		$	437,276,576
Net Assets Consist of
Paid-in capital	$	617,480,793		$	5,906,017,224		$	618,213,929		$	419,742,984
Undistributed net investment income		500,855			1,299,832			491,173			520,932
Accumulated net realized loss		(19,034,228	)		(105,055,261	)		(20,496	)		(10,180,082	)
Net unrealized appreciation (depreciation)		39,734,377			406,962,534			(228,452	)		27,192,742
Net Assets	$	638,681,797		$	6,209,224,329		$	618,456,154		$	437,276,576
1    Investments at cost — unaffiliated	$	609,857,446		$	5,527,491,291		$	594,491,883		$	403,239,911
2    Investments at cost — affiliated	$	38,438,476		$	421,366,094		$	9,414,759		$	18,183,164

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	DECEMBER 31, 2015	43

Statements of Assets and Liabilities (concluded)

December 31, 2015 (Unaudited)	BlackRock High Yield Municipal Fund		BlackRock National Municipal Fund		BlackRock Short-Term Municipal Fund		BlackRock New York Municipal Opportunities Fund
Net Asset Value
BlackRock
Net assets		—	$	332,918,413		—		—
Shares outstanding, $0.10 par value		—		30,256,968		—		—
Net asset value		—	$	11.00		—		—
Shares authorized		—		375 million		—		—
Institutional
Net assets	$	397,140,772	$	2,784,367,333	$	453,086,268	$	122,244,490
Shares outstanding, $0.10 par value		41,678,556		253,093,081		44,764,720		10,928,724
Net asset value	$	9.53	$	11.00	$	10.12	$	11.19
Shares authorized		100 million		375 Million		150 million		Unlimited
Service
Net assets		—	$	1,985,928		—		—
Shares outstanding, $0.10 par value		—		180,667		—		—
Net asset value		—	$	10.99		—		—
Shares authorized		—		375 million		—		—
Investor A
Net assets	$	183,891,142	$	2,595,106,736	$	92,222,990	$	128,843,077
Shares outstanding, $0.10 par value		19,341,431		235,735,058		9,106,426		11,511,746
Net asset value	$	9.51	$	11.01	$	10.13	$	11.19
Shares authorized		100 million		375 Million		150 Million		Unlimited
Investor A1
Net assets		—		—	$	31,193,199	$	124,578,453
Shares outstanding, $0.10 par value		—		—		3,079,410		11,131,408
Net asset value		—		—	$	10.13	$	11.19
Shares authorized		—		—		150 Million		Unlimited
Investor B
Net assets		—	$	2,026,441		—		—
Shares outstanding, $0.10 par value		—		184,261		—		—
Net asset value		—	$	11.00		—		—
Shares authorized		—		375 million		—		—
Investor C
Net assets	$	57,649,883	$	430,513,414	$	36,701,412	$	53,839,289
Shares outstanding, $0.10 par value		6,046,946		39,104,778		3,696,487		4,812,463
Net asset value	$	9.53	$	11.01	$	9.93	$	11.19
Shares authorized		100 million		375 Million		150 Million		Unlimited
Investor C1
Net assets		—	$	62,306,064		—	$	7,771,267
Shares outstanding, $0.10 par value		—		5,661,894		—		694,480
Net asset value		—	$	11.00		—	$	11.19
Shares authorized		—		375 Million		—		Unlimited
Class K
Net assets		—		—	$	5,252,285		—
Shares outstanding, $0.10 par value		—		—		519,020		—
Net asset value		—		—	$	10.12		—
Shares authorized		—		—		150 million		—

See Notes to Financial Statements.
44	SEMI-ANNUAL REPORT	DECEMBER 31, 2015

Statements of Operations

Six Months Ended December 31, 2015 (Unaudited)	BlackRock High Yield Municipal Fund			BlackRock National Municipal Fund			BlackRock Short-Term Municipal Fund			BlackRock New York Municipal Opportunities Fund
Investment Income
Interest	$	14,532,790		$	111,564,035		$	2,660,845		$	7,921,188
Interest — affiliated		2,220			34,689			769			2
Total income		14,535,010			111,598,724			2,661,614			7,921,190
Expenses
Investment advisory		1,505,637			12,921,134			1,039,033			1,050,389
Service — Service		—			2,355			—			—
Service — Investor A		204,592			3,136,976			105,976			130,569
Service — Investor A1		—			—			16,543			62,756
Service and distribution — Investor B		—			8,638			—			—
Service and distribution — Investor C		273,534			2,047,675			156,233			222,555
Service and distribution — Investor C1		—			253,863			—			23,346
Transfer agent — BlackRock		—			64,862			—			—
Transfer agent — Institutional		69,843			1,189,904			286,697			17,209
Transfer agent — Service		—			580			—			—
Transfer agent — Investor A		39,219			1,288,381			17,055			23,768
Transfer agent — Investor A1		—			—			8,013			29,323
Transfer agent — Investor B		—			1,773			—			—
Transfer agent — Investor C		14,556			95,342			12,761			9,076
Transfer agent — Investor C1		—			16,099			—			1,534
Transfer agent — Class K		—			—			356			—
Accounting services		65,412			395,232			75,992			34,960
Professional		57,408			101,660			47,196			92,828
Registration		44,274			178,741			49,215			38,599
Custodian		16,100			92,184			17,756			10,304
Officer and Directors		15,824			47,196			16,744			14,352
Printing		10,856			41,768			14,996			24,840
Miscellaneous		27,897			62,362			21,550			24,472
Total expenses excluding interest expense and fees		2,345,152			21,946,725			1,886,116			1,810,880
Interest expense and fees1		157,583			877,628			—			67,148
Total expenses		2,502,735			22,824,353			1,886,116			1,878,028
Less:
Fees waived by the Manager		—			(654,966	)		(21,549	)		(66,147	)
Transfer agent fees waived and/or reimbursed — class specific		—			(1,306,109	)		(293,838	)		(45,058	)
Total expenses after fees waived and/or reimbursed		—			20,863,278			1,570,729			1,766,823
Net investment income		12,032,275			90,735,446			1,090,885			6,154,367
Realized and Unrealized Gain (Loss)
Net realized gain (loss) from:
Investments		(535,912	)		8,397,003			430,675			729,723
Financial futures contracts		(254,379	)		954,259			—			(289,167	)
		(790,291	)		9,351,262			430,675			440,556
Net change in unrealized appreciation (depreciation) on:
Investments		16,353,987			65,443,279			216,437			10,434,701
Financial futures contracts		(141,589	)		788,087			—			(501,369	)
		16,212,398			66,231,366			216,437			9,933,332
Net realized and unrealized gain		15,422,107			75,582,628			647,112			10,373,888
Net Increase in Net Assets Resulting from Operations	$	27,454,382		$	166,318,074		$	1,737,997		$	16,528,255
1    Related to TOB Trusts.

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	DECEMBER 31, 2015	45

Statements of Changes in Net Assets BlackRock High Yield Municipal Fund

Increase (Decrease) in Net Assets:	Six Months Ended December 31, 2015 (Unaudited)			Year Ended June 30, 2015
Operations
Net investment income	$	12,032,275		$	22,931,482
Net realized gain (loss)		(790,291	)		2,644,892
Net change in unrealized appreciation (depreciation)		16,212,398			4,706,150
Net increase in net assets resulting from operations		27,454,382			30,282,524
Distributions to Shareholders1
From net investment income:
Institutional		(7,735,346	)		(14,850,178	)
Investor A		(3,434,663	)		(6,262,478	)
Investor C		(944,418	)		(1,749,511	)
Decrease in net assets resulting from distributions to shareholders		(12,114,427	)		(22,862,167	)
Capital Share Transactions
Net increase in net assets derived from capital share transactions		85,332,391			74,564,728
Net Assets
Total increase in net assets		100,672,346			81,985,085
Beginning of period		538,009,451			456,024,366
End of period	$	638,681,797		$	538,009,451
Undistributed net investment income, end of period	$	500,855		$	583,007
1   Distributions for annual periods determined in accordance with federal income tax regulations.

See Notes to Financial Statements.
46	SEMI-ANNUAL REPORT	DECEMBER 31, 2015

Statements of Changes in Net Assets BlackRock National Municipal Fund

Increase (Decrease) in Net Assets:	Six Months Ended December 31, 2015 (Unaudited)			Year Ended June 30, 2015
Operations
Net investment income	$	90,735,446		$	163,831,248
Net realized gain		9,351,262			9,204,623
Net change in unrealized appreciation (depreciation)		66,231,366			(21,569,007	)
Net increase in net assets resulting from operations		166,318,074			151,466,864
Distributions to Shareholders1
From net investment income:
BlackRock		(5,720,421	)		(12,645,467	)
Institutional		(39,935,293	)		(67,573,453	)
Service		(28,947	)		(40,889	)
Investor A		(39,178,049	)		(71,446,493	)
Investor B		(30,239	)		(94,965	)
Investor C		(4,864,910	)		(10,084,877	)
Investor C1		(814,559	)		(1,877,415	)
Decrease in net assets resulting from distributions to shareholders		(90,572,418	)		(163,763,559	)
Capital Share Transactions
Net increase in net assets derived from capital share transactions		848,805,926			676,849,248
Net Assets
Total increase in net assets		924,551,582			664,552,553
Beginning of period		5,284,672,747			4,620,120,194
End of period	$	6,209,224,329		$	5,284,672,747
Undistributed net investment income, end of period	$	1,299,832		$	1,136,804
1   Distributions for annual periods determined in accordance with federal income tax regulations.

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	DECEMBER 31, 2015	47

Statements of Changes in Net Assets BlackRock Short-Term Municipal Fund

Increase (Decrease) in Net Assets:	Six Months Ended December 31, 2015 (Unaudited)			Year Ended June 30, 2015
Operations
Net investment income	$	1,090,885		$	2,408,170
Net realized gain		430,675			1,378,395
Net change in unrealized appreciation (depreciation)		216,437			(4,835,171	)
Net increase (decrease) in net assets resulting from operations		1,737,997			(1,048,606	)
Distributions to Shareholders1
From net investment income:
Institutional		(974,826	)		(2,172,738	)
Investor A		(52,563	)		(108,894	)
Investor A1		(48,194	)		(93,162	)
Class K		(13,327	)		(33,376	)
From net realized gain:
Institutional		(26,930	)		—
Investor A		(4,825	)		—
Investor A1		(1,931	)		—
Investor C		(1,931	)		—
Class K		(398	)		—
Decrease in net assets resulting from distributions to shareholders		(1,124,925	)		(2,408,170	)
Capital Share Transactions
Net decrease in net assets from capital share transactions		(46,984,886	)		(173,658,416	)
Net Assets
Total decrease in net assets		(46,371,814	)		(177,115,192	)
Beginning of period		664,827,968			841,943,160
End of period	$	618,456,154		$	664,827,968
Undistributed net investment income, end of period	$	491,173		$	489,198
1   Distributions for annual periods determined in accordance with federal income tax regulations.

See Notes to Financial Statements.
48	SEMI-ANNUAL REPORT	DECEMBER 31, 2015

Statements of Changes in Net Assets BlackRock New York Municipal Opportunities Fund

Increase (Decrease) in Net Assets:	Six Months Ended December 31, 2015 (Unaudited)			Year Ended June 30, 2015
Operations
Net investment income	$	6,154,367		$	10,346,967
Net realized gain		440,556			506,451
Net change in unrealized appreciation (depreciation)		9,933,332			1,339,685
Net increase in net assets resulting from operations		16,528,255			12,193,103
Distributions to Shareholders1
From net investment income:
Institutional		(1,725,550	)		(2,226,972	)
Investor A		(1,678,231	)		(2,244,869	)
Investor A1		(2,082,946	)		(4,708,256	)
Investor C		(548,460	)		(885,991	)
Investor C1		(109,956	)		(257,312	)
Decrease in net assets resulting from distributions to shareholders		(6,145,143	)		(10,323,400	)
Capital Share Transactions
Net increase in net assets derived from capital share transactions		93,862,223			81,694,684
Net Assets
Total increase in net assets		104,245,335			83,564,387
Beginning of period		333,031,241			249,466,854
End of period	$	437,276,576		$	333,031,241
Undistributed net investment income, end of period	$	520,932		$	511,708
1    Distributions for annual periods determined in accordance with federal income tax regulations.

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	DECEMBER 31, 2015	49

Financial Highlights BlackRock High Yield Municipal Fund

	Institutional
	Six Months Ended December 31, 2015 (Unaudited)			Year Ended June 30,
				2015			2014			2013			2012			2011
Per Share Operating Performance
Net asset value, beginning of period	$	9.28		$	9.12		$	8.86		$	9.26		$	8.35		$	8.47
Net investment income1		0.21			0.41			0.44			0.44			0.46			0.46
Net realized and unrealized gain (loss)		0.25			0.16			0.26			(0.40	)		0.90			(0.13	)
Net increase from investment operations		0.46			0.57			0.70			0.04			1.36			0.33
Distributions from net investment income2		(0.21	)		(0.41	)		(0.44	)		(0.44	)		(0.45	)		(0.45	)
Net asset value, end of period	$	9.53		$	9.28		$	9.12		$	8.86		$	9.26		$	8.35
Total Return3
Based on net asset value		5.01%	4		6.27%			8.31%			0.17%			16.72%			4.14%
Ratios to Average Net Assets
Total expenses		0.71%	5		0.70%			0.76%	6		0.76%			0.79%			0.78%
Total expenses after fees waived and paid indirectly		0.71%	5		0.70%			0.76%	6		0.76%			0.79%			0.78%
Total expenses after fees waived and excluding interest expense and fees7		0.66%	5		0.66%			0.69%	6		0.66%			0.70%			0.72%
Net investment income		4.44%	5		4.37%			5.02%			4.63%			5.18%			5.49%
Supplemental Data
Net assets, end of period (000)	$	397,141		$	327,422		$	242,949		$	198,416		$	176,895		$	111,669
Borrowings outstanding, end of period (000)	$	52,626		$	26,216		$	28,976		$	46,417		$	33,861		$	16,039
Portfolio turnover rate		10%			41%			40%			21%			17%			31%

¹  Based on average shares outstanding.

²  Distributions for annual periods determined in accordance with federal income tax regulations.

³  Where applicable, assumes the reinvestment of distributions.

⁴  Aggregate total return.

⁵  Annualized.

⁶  Does not include expenses incurred indirectly as a result of investments in underlying funds of approximately 0.01%.

⁷  Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details.

See Notes to Financial Statements.
50	SEMI-ANNUAL REPORT	DECEMBER 31, 2015

Financial Highlights (continued) BlackRock High Yield Municipal Fund

	Investor A
	Six Months Ended December 31, 2015 (Unaudited)			Year Ended June 30,
				2015			2014			2013			2012			2011
Per Share Operating Performance
Net asset value, beginning of period	$	9.26		$	9.10		$	8.84		$	9.24		$	8.33		$	8.46
Net investment income1		0.20			0.38			0.41			0.42			0.43			0.43
Net realized and unrealized gain (loss)		0.25			0.16			0.26			(0.41	)		0.91			(0.13	)
Net increase from investment operations		0.45			0.54			0.67			0.01			1.34			0.30
Distributions from net investment income:2		(0.20	)		(0.38	)		(0.41	)		(0.41	)		(0.43	)		(0.43	)
Net asset value, end of period	$	9.51		$	9.26		$	9.10		$	8.84		$	9.24		$	8.33
Total Return3
Based on net asset value		4.88%	4		6.00%			8.05%			(0.09)%			16.44%			3.73%
Ratios to Average Net Assets
Total expenses		0.97%	5		0.97%			1.01%	6		1.01%			1.06%			1.05%
Total expenses after fees waived and paid indirectly		0.97%	5		0.97%			1.01%	6		1.01%			1.06%			1.05%
Total expenses after fees waived and excluding interest expense and fees7		0.92%	5		0.93%			0.94%	6		0.91%			0.97%			0.99%
Net investment income		4.18%	5		4.11%			4.80%			4.38%			4.85%			5.21%
Supplemental Data
Net assets, end of period (000)	$	183,891		$	156,348		$	161,218		$	104,693		$	83,840		$	27,993
Borrowings outstanding, end of period (000)	$	52,626		$	26,216		$	28,976		$	46,417		$	33,861		$	16,039
Portfolio turnover rate		10%			41%			40%			21%			17%			31%

¹  Based on average shares outstanding.

²  Distributions for annual periods determined in accordance with federal income tax regulations.

³  Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions.

⁴  Aggregate total return.

⁵  Annualized.

⁶  Does not include expenses incurred indirectly as a result of investments in underlying funds of approximately 0.01%.

⁷  Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details.

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	DECEMBER 31, 2015	51

Financial Highlights (concluded) BlackRock High Yield Municipal Fund

	Investor C
	Six Months Ended December 31, 2015 (Unaudited)			Year Ended June 30,
				2015			2014			2013			2012			2011
Per Share Operating Performance
Net asset value, beginning of period	$	9.28		$	9.12		$	8.87		$	9.27		$	8.35		$	8.47
Net investment income1		0.16			0.31			0.35			0.34			0.36			0.37
Net realized and unrealized gain (loss)		0.25			0.16			0.25			(0.40	)		0.92			(0.12	)
Net increase (decrease) from investment operations		0.41			0.47			0.60			(0.06	)		1.28			0.25
Distributions from net investment income:2		(0.16	)		(0.31	)		(0.35	)		(0.34	)		(0.36	)		(0.37	)
Net asset value, end of period	$	9.53		$	9.28		$	9.12		$	8.87		$	9.27		$	8.35
Total Return3
Based on net asset value		4.48%	4		5.20%			7.11%			(0.84)%			15.65%			3.07%
Ratios to Average Net Assets
Total expenses		1.73%	5		1.72%			1.78%	6		1.78%			1.82%			1.82%
Total expenses after fees waived and paid indirectly		1.73%	5		1.72%			1.78%	6		1.78%			1.82%			1.82%
Total expenses after fees waived and excluding interest expense and fees7		1.67%	5		1.68%			1.70%	6		1.68%			1.73%			1.77%
Net investment income		3.42%	5		3.36%			4.08%			3.62%			4.12%			4.45%
Supplemental Data
Net assets, end of period (000)	$	57,650		$	54,239		$	51,858		$	50,647		$	36,987		$	17,945
Borrowings outstanding, end of period (000)	$	52,626		$	26,216		$	28,976		$	46,417		$	33,861		$	16,039
Portfolio turnover rate		10%			41%			40%			21%			17%			31%

¹ Based on average shares outstanding.

² Distributions for annual periods determined in accordance with federal income tax regulations.

³ Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions.

⁴ Aggregate total return.

⁵ Annualized.

⁶ Does not include expenses incurred indirectly as a result of investments in underlying funds of approximately 0.01%.

⁷ Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details.

See Notes to Financial Statements.
52	SEMI-ANNUAL REPORT	DECEMBER 31, 2015

Financial Highlights BlackRock National Municipal Fund

	BlackRock
	Six Months Ended December 31, 2015 (Unaudited)			Year Ended June 30,									Period July 18, 20111 to June 30, 2012
				2015			2014			2013
Per Share Operating Performance
Net asset value, beginning of period	$	10.87		$	10.88		$	10.56		$	10.91		$	10.11
Net investment income2		0.19			0.39			0.43			0.41			0.45
Net realized and unrealized gain (loss)		0.13			(0.01	)		0.32			(0.34	)		0.79
Net increase from investment operations		0.32			0.38			0.75			0.07			1.24
Distributions from net investment income3		(0.19	)		(0.39	)		(0.43	)		(0.42	)		(0.44	)
Net asset value, end of period	$	11.00		$	10.87		$	10.88		$	10.56		$	10.91
Total Return4
Based on net asset value		2.93%	5		3.53%			7.30%			0.47%			12.48%	5
Ratios to Average Net Assets
Total expenses		0.55%	6		0.58%			0.61%			0.61%			0.62%	6
Total expenses after fees waived and/or reimbursed and paid indirectly		0.49%	6		0.49%			0.52%			0.52%			0.54%	6
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense and fees and reorganization costs7		0.46%	6		0.46%			0.46%			0.46%			0.46%	6
Net investment income		3.40%	6		3.56%			4.09%			3.69%			4.41%	6
Supplemental Data
Net assets, end of period (000)	$	332,918		$	341,071		$	366,179		$	401,538		$	446,620
Borrowings outstanding, end of period (000)	$	178,530		$	275,550		$	286,095		$	489,432		$	468,586
Portfolio turnover rate		31%			28%			35%			37%			39%

¹ Commencement of operations.

² Based on average shares outstanding.

³ Distributions for annual periods determined in accordance with federal income tax regulations.

⁴ Where applicable, assumes the reinvestment of distributions.

⁵ Aggregate total return.

⁶ Annualized.

⁷ Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details.

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	DECEMBER 31, 2015	53

Financial Highlights (continued) BlackRock National Municipal Fund

	Institutional
	Six Months Ended December 31, 2015 (Unaudited)			Year Ended June 30,
				2015			2014			2013			2012			2011
Per Share Operating Performance
Net asset value, beginning of period	$	10.86		$	10.88		$	10.56		$	10.91		$	10.05		$	10.19
Net investment income1		0.18			0.38			0.42			0.40			0.46			0.49
Net realized and unrealized gain (loss)		0.14			(0.02	)		0.32			(0.35	)		0.85			(0.14	)
Net increase from investment operations		0.32			0.36			0.74			0.05			1.31			0.35
Distributions from net investment income2		(0.18	)		(0.38	)		(0.42	)		(0.40	)		(0.45	)		(0.49	)
Net asset value, end of period	$	11.00		$	10.86		$	10.88		$	10.56		$	10.91		$	10.05
Total Return3
Based on net asset value		2.98%	4		3.33%			7.19%			0.37%			13.28%			3.49%
Ratios to Average Net Assets
Total expenses		0.61%	5		0.64%			0.68%			0.68%			0.69%			0.69%
Total expenses after fees waived and/or reimbursed and paid indirectly		0.59%	5		0.59%			0.63%			0.62%			0.65%			0.69%
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense and fees and reorganization costs6		0.56%	5		0.55%			0.57%			0.56%			0.57%			0.60%
Net investment income		3.29%	5		3.47%			3.98%			3.59%			4.31%			4.83%
Supplemental Data
Net assets, end of period (000)	$	2,784,367		$	2,088,580		$	1,796,660		$	2,029,739		$	2,037,090		$	1,207,501
Borrowings outstanding, end of period (000)	$	178,530		$	275,550		$	286,095		$	489,432		$	468,586		$	321,402
Portfolio turnover rate		31%			28%			35%			37%			39%			51%

¹  Based on average shares outstanding.

²  Distributions for annual periods determined in accordance with federal income tax regulations.

³  Where applicable, assumes the reinvestment of distributions.

⁴  Aggregate total return.

⁵  Annualized.

⁶  Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details.

See Notes to Financial Statements.
54	SEMI-ANNUAL REPORT	DECEMBER 31, 2015

Financial Highlights (continued) BlackRock National Municipal Fund

	Service
	Six Months Ended December 31, 2015 (Unaudited)			Year Ended June 30,									Period July 18, 20111 to June 30, 2012
				2015			2014			2013
Per Share Operating Performance
Net asset value, beginning of period	$	10.85		$	10.86		$	10.55		$	10.90		$	10.11
Net investment income2		0.19			0.38			0.43			0.38			0.42
Net realized and unrealized gain (loss)		0.12			(0.03	)		0.27			(0.37	)		0.77
Net increase from investment operations		0.31			0.35			0.70			0.01			1.19
Distributions from net investment income3		(0.17	)		(0.36	)		(0.39	)		(0.36	)		(0.40	)
Net asset value, end of period	$	10.99		$	10.85		$	10.86		$	10.55		$	10.90
Total Return4
Based on net asset value		2.87%	5		3.23%			6.85%			(0.05)%			11.97%	5
Ratios to Average Net Assets
Total expenses		0.83%	6		0.82%			0.90%			1.09%			0.91%	6
Total expenses after fees waived and/or reimbursed and paid indirectly		0.80%	6		0.77%			0.85%			1.04%			0.86%	6
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense and fees and reorganization costs7		0.77%	6		0.74%			0.79%			0.97%			0.78%	6
Net investment income		3.08%	6		3.52%			4.04%			3.42%			4.11%	6
Supplemental Data
Net assets, end of period (000)	$	1,986		$	1,739		$	1,089		$	1,171		$	1,214
Borrowings outstanding, end of period (000)	$	178,530		$	275,550		$	286,095		$	489,432		$	468,586
Portfolio turnover rate		31%			28%			35%			37%			39%

¹ Commencement of operations.

² Based on average shares outstanding.

³ Distributions for annual periods determined in accordance with federal income tax regulations.

⁴ Where applicable, assumes the reinvestment of distributions.

⁵ Aggregate total return.

⁶ Annualized.

⁷ Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details.

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	DECEMBER 31, 2015	55

Financial Highlights (continued) BlackRock National Municipal Fund

	Investor A
	Six Months Ended December 31, 2015 (Unaudited)			Year Ended June 30,
				2015			2014			2013			2012			2011
Per Share Operating Performance
Net asset value, beginning of period	$	10.87		$	10.88		$	10.57		$	10.92		$	10.06		$	10.19
Net investment income1		0.17			0.36			0.40			0.38			0.44			0.46
Net realized and unrealized gain (loss)		0.14			(0.01	)		0.31			(0.34	)		0.85			(0.13	)
Net increase from investment operations		0.31			0.35			0.71			0.04			1.29			0.33
Distributions from net investment income2		(0.17	)		(0.36	)		(0.40	)		(0.39	)		(0.43	)		(0.46	)
Net asset value, end of period	$	11.01		$	10.87		$	10.88		$	10.57		$	10.92		$	10.06
Total Return3
Based on net asset value		2.89%	4		3.26%			6.93%			0.21%			13.10%			3.36%
Ratios to Average Net Assets
Total expenses		0.87%	5		0.90%			0.90%			0.92%			0.91%			0.92%
Total expenses after fees waived and/or reimbursed and paid indirectly		0.75%	5		0.75%			0.78%			0.78%			0.80%			0.92%
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense and fees and reorganization costs6		0.72%	5		0.72%			0.72%			0.72%			0.72%			0.83%
Net investment income		3.14%	5		3.30%			3.81%			3.42%			4.15%			4.60%
Supplemental Data
Net assets, end of period (000)	$	2,595,107		$	2,388,743		$	1,990,729		$	1,791,782		$	1,688,258		$	855,849
Borrowings outstanding, end of period (000)	$	178,530		$	275,550		$	286,095		$	489,432		$	468,586		$	321,402
Portfolio turnover rate		31%			28%			35%			37%			39%			51%

¹ Based on average shares outstanding.

² Distributions for annual periods determined in accordance with federal income tax regulations.

³ Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions.

⁴ Aggregate total return.

⁵ Annualized.

⁶ Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details.

See Notes to Financial Statements.
56	SEMI-ANNUAL REPORT	DECEMBER 31, 2015

Financial Highlights (continued) BlackRock National Municipal Fund

	Investor B
	Six Months Ended December 31, 2015 (Unaudited)			Year Ended June 30,
				2015			2014			2013			2012			2011
Per Share Operating Performance
Net asset value, beginning of period	$	10.86		$	10.87		$	10.56		$	10.91		$	10.05		$	10.18
Net investment income1		0.16			0.32			0.36			0.33			0.39			0.41
Net realized and unrealized gain (loss)		0.12			(0.02	)		0.30			(0.35	)		0.85			(0.12	)
Net increase from investment operations		0.28			0.30			0.66			(0.02	)		1.24			0.29
Distributions from net investment income2		(0.14	)		(0.31	)		(0.35	)		(0.33	)		(0.38	)		(0.42	)
Net asset value, end of period	$	11.00		$	10.86		$	10.87		$	10.56		$	10.91		$	10.05
Total Return3
Based on net asset value		2.63%	4		2.73%			6.41%			(0.30)%			12.56%			2.89%
Ratios to Average Net Assets
Total expenses		1.42%	5		1.40%			1.40%			1.41%			1.44%			1.44%
Total expenses after fees waived and/or reimbursed and paid indirectly		1.26%	5		1.26%			1.28%			1.29%			1.30%			1.38%
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense and fees and reorganization costs6		1.23%	5		1.23%			1.22%			1.23%			1.22%			1.30%
Net investment income		2.63%	5		2.87%			3.38%			2.96%			3.69%			4.10%
Supplemental Data
Net assets, end of period (000)	$	2,026		$	2,546		$	4,705		$	10,260		$	27,169		$	30,346
Borrowings outstanding, end of period (000)	$	178,530		$	275,550		$	286,095		$	489,432		$	468,586		$	321,402
Portfolio turnover rate		31%			28%			35%			37%			39%			51%

¹ Based on average shares outstanding.

² Distributions for annual periods determined in accordance with federal income tax regulations.

³ Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions.

⁴ Aggregate total return.

⁵ Annualized.

⁶ Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details.

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	DECEMBER 31, 2015	57

Financial Highlights (continued) BlackRock National Municipal Fund

	Investor C
	Six Months Ended December 31, 2015 (Unaudited)			Year Ended June 30,
				2015			2014			2013			2012			2011
Per Share Operating Performance
Net asset value, beginning of period	$	10.87		$	10.88		$	10.57		$	10.92		$	10.06		$	10.19
Net investment income1		0.13			0.28			0.32			0.30			0.36			0.39
Net realized and unrealized gain (loss)		0.14			(0.01	)		0.31			(0.35	)		0.86			(0.13	)
Net increase from investment operations		0.27			0.27			0.63			(0.05	)		1.22			0.26
Distributions from net investment income2		(0.13	)		(0.28	)		(0.32	)		(0.30	)		(0.36	)		(0.39	)
Net asset value, end of period	$	11.01		$	10.87		$	10.88		$	10.57		$	10.92		$	10.06
Total Return3
Based on net asset value		2.51%	4		2.49%			6.13%			(0.53)%			12.26%			2.60%
Ratios to Average Net Assets
Total expenses		1.56%	5		1.59%			1.62%			1.62%			1.64%			1.66%
Total expenses after fees waived and/or reimbursed and paid indirectly		1.50%	5		1.50%			1.53%			1.53%			1.55%			1.66%
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense and fees and reorganization costs6		1.47%	5		1.47%			1.47%			1.47%			1.47%			1.58%
Net investment income		2.39%	5		2.55%			3.08%			2.67%			3.40%			3.85%
Supplemental Data
Net assets, end of period (000)	$	430,513		$	397,945		$	389,612		$	480,207		$	483,092		$	281,024
Borrowings outstanding, end of period (000)	$	178,530		$	275,550		$	286,095		$	489,432		$	468,586		$	321,402
Portfolio turnover rate		31%			28%			35%			37%			39%			51%

¹ Based on average shares outstanding.

² Distributions for annual periods determined in accordance with federal income tax regulations.

³ Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions.

⁴ Aggregate total return.

⁵ Annualized.

⁶ Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details.

See Notes to Financial Statements.
58	SEMI-ANNUAL REPORT	DECEMBER 31, 2015

Financial Highlights (concluded) BlackRock National Municipal Fund

	Investor C1
	Six Months Ended December 31, 2015 (Unaudited)			Year Ended June 30,
				2015			2014			2013			2012			2011
Per Share Operating Performance
Net asset value, beginning of period	$	10.87		$	10.88		$	10.56		$	10.91		$	10.06		$	10.19
Net investment income1		0.14			0.30			0.34			0.32			0.38			0.41
Net realized and unrealized gain (loss)		0.13			(0.01	)		0.32			(0.35	)		0.85			(0.13	)
Net increase from investment operations		0.27			0.29			0.66			(0.03	)		1.23			0.28
Distributions from net investment income2		(0.14	)		(0.30	)		(0.34	)		(0.32	)		(0.38	)		(0.41	)
Net asset value, end of period	$	11.00		$	10.87		$	10.88		$	10.56		$	10.91		$	10.06
Total Return3
Based on net asset value		2.60%	4		2.68%			6.43%			(0.35)%			12.37%			2.80%
Ratios to Average Net Assets
Total expenses		1.37%	5		1.39%			1.42%			1.42%			1.44%			1.47%
Total expenses after fees waived and/or reimbursed and paid indirectly		1.31%	5		1.31%			1.34%			1.34%			1.36%			1.46%
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense and fees and reorganization costs6		1.28%	5		1.28%			1.28%			1.28%			1.28%			1.38%
Net investment income		2.58%	5		2.74%			3.27%			2.88%			3.60%			4.04%
Supplemental Data
Net assets, end of period (000)	$	62,306		$	64,049		$	71,147		$	83,766		$	100,161		$	73,302
Borrowings outstanding, end of period (000)	$	178,530		$	275,550		$	286,095		$	489,432		$	468,586		$	321,402
Portfolio turnover rate		31%			28%			35%			37%			39%			51%

¹ Based on average shares outstanding.

² Distributions for annual periods determined in accordance with federal income tax regulations.

³ Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions.

⁴ Aggregate total return.

⁵ Annualized.

⁶ Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details.

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	DECEMBER 31, 2015	59

Financial Highlights BlackRock Short-Term Municipal Fund

	Institutional
	Six Months Ended December 31, 2015 (Unaudited)			Year Ended June 30,
				2015			2014			2013			2012			2011
Per Share Operating Performance
Net asset value, beginning of period	$	10.11		$	10.16		$	10.12		$	10.17		$	10.18		$	10.18
Net investment income1		0.02			0.04			0.05			0.07			0.09			0.13
Net realized and unrealized gain (loss)		0.01			(0.05	)		0.04			(0.05	)		0.01			(0.00	)2
Net increase (decrease) from investment operations		0.03			(0.01	)		0.09			0.02			0.10			0.13
Distributions:3
From net investment income		(0.02	)		(0.04	)		(0.05	)		(0.07	)		(0.11	)		(0.13	)
From net realized gain		(0.00	)2		—			—			—			—			—
Total distributions		(0.02	)		(0.04	)		(0.05	)		(0.07	)		(0.11	)		(0.13	)
Net asset value, end of period	$	10.12		$	10.11		$	10.16		$	10.12		$	10.17		$	10.18
Total Return4
Based on net asset value		0.31%	5		(0.11)%			0.90%			0.19%			0.96%			1.27%
Ratios to Average Net Assets
Total expenses		0.53%	6		0.51%			0.51%			0.51%			0.50%			0.49%
Total expenses after fees waived and/or reimbursed and paid indirectly		0.40%	6		0.40%			0.40%			0.40%			0.40%			0.40%
Net investment income		0.44%	6		0.42%			0.54%			0.82%			0.93%			1.26%
Supplemental Data
Net assets, end of period (000)	$	453,086		$	492,702		$	619,700		$	529,687		$	643,910		$	603,837
Portfolio turnover rate		36%			72%			56%			41%			51%			44%

¹ Based on average shares outstanding.

² Amount is greater than $(0.005) per share.

³ Distributions for annual periods determined in accordance with federal income tax regulations.

⁴ Where applicable, assumes the reinvestment of distributions.

⁵ Aggregate total return.

⁶ Annualized.

See Notes to Financial Statements.
60	SEMI-ANNUAL REPORT	DECEMBER 31, 2015

Financial Highlights (continued) BlackRock Short-Term Municipal Fund

	Investor A
	Six Months Ended December 31, 2015 (Unaudited)			Year Ended June 30,
				2015			2014			2013			2012			2011
Per Share Operating Performance
Net asset value, beginning of period	$	10.12		$	10.16		$	10.12		$	10.18		$	10.19		$	10.19
Net investment income1		0.01			0.01			0.03			0.04			0.07			0.10
Net realized and unrealized gain (loss)		0.01			(0.04	)		0.03			(0.06	)		0.00	2		(0.00	)3
Net increase (decrease) from investment operations		0.02			(0.03	)		0.06			(0.02	)		0.07			0.10
Distributions:4
From net investment income		(0.01	)		(0.01	)		(0.02	)		(0.04	)		(0.08	)		(0.10	)
From net realized gain		(0.00	)3		—			—			—			—			—
Total distributions		(0.01	)		(0.01	)		(0.02	)		(0.04	)		(0.08	)		(0.10	)
Net asset value, end of period	$	10.13		$	10.12		$	10.16		$	10.12		$	10.18		$	10.19
Total Return5
Based on net asset value		0.17%	6		(0.29)%			0.64%			(0.18)%			0.69%			0.99%
Ratios to Average Net Assets
Total expenses		0.70%	7		0.70%			0.67%			0.68%			0.66%			0.67%
Total expenses after fees waived and/or reimbursed and paid indirectly		0.68%	7		0.69%			0.67%			0.68%			0.66%			0.67%
Net investment income		0.16%	7		0.13%			0.26%			0.54%			0.67%			1.00%
Supplemental Data
Net assets, end of period (000)	$	92,223		$	100,980		$	137,629		$	172,314		$	204,729		$	221,827
Portfolio turnover rate		36%			72%			56%			41%			51%			44%

¹ Based on average shares outstanding.

² Amount is less than $0.005 per share.

³ Amount is greater than $(0.005) per share.

⁴ Distributions for annual periods determined in accordance with federal income tax regulations.

⁵ Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions.

⁶ Aggregate total return.

⁷ Annualized.

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	DECEMBER 31, 2015	61

Financial Highlights (continued) BlackRock Short-Term Municipal Fund

	Investor A1
	Six Months Ended December 31, 2015 (Unaudited)			Year Ended June 30,
				2015			2014			2013			2012			2011
Per Share Operating Performance
Net asset value, beginning of period	$	10.12		$	10.17		$	10.12		$	10.18		$	10.19		$	10.19
Net investment income1		0.02			0.03			0.04			0.06			0.08			0.12
Net realized and unrealized gain (loss)		(0.00	)2		(0.05	)		0.05			(0.06	)		0.01			(0.00	)2
Net increase (decrease) from investment operations		0.02			(0.02	)		0.09			—			0.09			0.12
Distributions:3
From net investment income		(0.01	)		—			(0.04	)		(0.06	)		(0.10	)		(0.12	)
From net realized gain		(0.00	)2		(0.03	)		—			—			—			—
Total dividends and distributions		(0.01	)		(0.03	)		(0.04	)		(0.06	)		(0.10	)		(0.12	)
Net asset value, end of period	$	10.13		$	10.12		$	10.17		$	10.12		$	10.18		$	10.19
Total Return4
Based on net asset value		0.25%	5		(0.23)%			0.88%			(0.03)%			0.84%			1.14%
Ratios to Average Net Assets
Total expenses		0.56%	6		0.55%			0.54%			0.54%			0.54%			0.54%
Total expenses after fees waived and/or reimbursed and paid indirectly		0.52%	6		0.52%			0.52%			0.52%			0.51%			0.52%
Net investment income		0.33%	6		0.30%			0.42%			0.70%			0.81%			1.14%
Supplemental Data
Net assets, end of period (000)	$	31,193		$	33,292		$	37,280		$	44,139		$	48,377		$	53,141
Portfolio turnover rate		36%			72%			56%			41%			51%			44%

¹ Based on average shares outstanding.

² Amount is greater than $(0.005) per share.

³ Distributions for annual periods determined in accordance with federal income tax regulations.

⁴ Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions.

⁵ Aggregate total return.

⁶ Annualized.

See Notes to Financial Statements.
62	SEMI-ANNUAL REPORT	DECEMBER 31, 2015

Financial Highlights (continued) BlackRock Short-Term Municipal Fund

	Investor C
	Six Months Ended December 31, 2015 (Unaudited)			Year Ended June 30,
				2015			2014			2013			2012			2011
Per Share Operating Performance
Net asset value, beginning of period	$	9.95		$	10.07		$	10.08		$	10.18		$	10.18		$	10.18
Net investment income (loss)1		(0.03	)		(0.07	)		(0.06	)		(0.04	)		(0.01	)		0.02
Net realized and unrealized gain (loss)		0.02			(0.05	)		0.05			(0.06	)		0.01			(0.00	)2
Net increase (decrease) from investment operations		(0.02	)		(0.12	)		(0.01	)		(0.10	)		—			0.02
Distributions:3
From net investment income		—			—			—			—			(0.00	)2		(0.02	)
From net realized gain		(0.00	)2		—			—			—			—			—
Total distributions		(0.00	)		—			—			—			(0.00	)		(0.02	)
Net asset value, end of period	$	9.93		$	9.95		$	10.07		$	10.08		$	10.18		$	10.18
Total Return4
Based on net asset value		(0.20)%	5		(1.19)%			(0.10)%			(0.98)%			0.01%			0.21%
Ratios to Average Net Assets
Total expenses		1.49%	6		1.47%			1.45%			1.46%			1.44%			1.45%
Total expenses after fees waived and/or reimbursed and paid indirectly		1.48%	6		1.47%			1.45%			1.46%			1.44%			1.45%
Net investment income (loss)		(0.63)%	6		(0.70)%			(0.55)%			(0.27)%			(0.11)%			0.22%
Supplemental Data
Net assets, end of period (000)	$	36,701		$	31,121		$	38,520		$	50,033		$	68,693		$	86,264
Portfolio turnover rate		36%			72%			56%			41%			51%			44%

¹  Based on average shares outstanding.

²  Amount is greater than $(0.005) per share.

³  Distributions for annual periods determined in accordance with federal income tax regulations.

⁴  Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions.

⁵  Aggregate total return.

⁶  Annualized.

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	DECEMBER 31, 2015	63

Financial Highlights (concluded) BlackRock Short-Term Municipal Fund

	Class K
	Six Months Ended December 31, 2015 (Unaudited)			Year Ended June 30,
				2015			2014			2013			2012			2011
Per Share Operating Performance
Net asset value, beginning of period	$	10.11		$	10.15		$	10.11		$	10.18		$	10.18		$	10.19
Net investment income1		0.02			0.02			0.04			0.07			0.09			0.12
Net realized and unrealized gain (loss)		0.01			(0.02	)		0.05			(0.07	)		0.02			(0.00	)2
Net increase (decrease) from investment operations		0.03			—			0.09			—			0.11			0.12
Distributions:3
From net investment income		(0.02	)		(0.04	)		(0.05	)		(0.07	)		(0.11	)		(0.13	)
From net realized gain		(0.00	)2		—			—			—			—			—
Total distributions		(0.02	)		(0.04	)		(0.05	)		(0.07	)		(0.11	)		(0.13	)
Net asset value, end of period	$	10.12		$	10.11		$	10.15		$	10.11		$	10.18		$	10.18
Total Return4
Based on net asset value		0.31%	5		(0.01)%			0.91%			0.00%			1.07%			1.17%
Ratios to Average Net Assets
Total expenses		0.42%	6		0.41%			0.39%			0.39%			0.39%			0.40%
Total expenses after fees waived and/or reimbursed and paid indirectly		0.41%	6		0.40%			0.39%			0.39%			0.39%			0.39%
Net investment income		0.44%	6		0.21%			0.35%			0.79%			0.93%			1.25%
Supplemental Data
Net assets, end of period (000)	$	5,252		$	6,732		$	8,814		$	10,372		$	63,503		$	43,941
Portfolio turnover rate		36%			72%			56%			41%			51%			44%

¹ Based on average shares outstanding.

² Amount is greater than $(0.005) per share.

³ Distributions for annual periods determined in accordance with federal income tax regulations.

⁴ Where applicable, assumes the reinvestment of distributions.

⁵ Aggregate total return.

⁶ Annualized.

See Notes to Financial Statements.
64	SEMI-ANNUAL REPORT	DECEMBER 31, 2015

Financial Highlights BlackRock New York Municipal Opportunities Fund

	Institutional
	Six Months Ended December 31, 2015 (Unaudited)			Year Ended June 30,
				2015			2014			2013			2012			2011
Per Share Operating Performance
Net asset value, beginning of period	$	10.90		$	10.79		$	10.46		$	11.01		$	10.36		$	10.55
Net investment income1		0.19			0.41			0.43			0.46			0.47			0.50
Net realized and unrealized gain (loss)		0.29			0.11			0.33			(0.55	)		0.65			(0.20	)
Net increase (decrease) from investment operations		0.48			0.52			0.76			(0.09	)		1.12			0.30
Distributions from net investment income2		(0.19	)		(0.41	)		(0.43	)		(0.46	)		(0.47	)		(0.49	)
Net asset value, end of period	$	11.19		$	10.90		$	10.79		$	10.46		$	11.01		$	10.36
Total Return3
Based on net asset value		4.45%	4		4.86%			7.52%			(1.06)%			11.06%			2.97%
Ratios to Average Net Assets
Total expenses		0.75%	5		0.78%			0.80%			0.77%			0.80%			0.72%
Total expenses after fees waived and/or reimbursed and paid indirectly		0.69%	5		0.69%			0.79%			0.77%			0.80%			0.72%
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense and fees6		0.65%	5		0.65%			0.74%			0.71%			0.76%			0.70%
Net investment income		3.46%	5		3.73%			4.16%			4.07%			4.43%			4.78%
Supplemental Data
Net assets, end of period (000)	$	122,244		$	79,506		$	34,777		$	34,029		$	31,875		$	25,864
Borrowings outstanding, end of period (000)	$	20,010		$	18,711		$	18,711		$	23,852		$	22,007		$	3,575
Portfolio turnover rate		11%			22%			18%			24%			19%			17%

¹ Based on average shares outstanding.

² Distributions for annual periods determined in accordance with federal income tax regulations.

³ Where applicable, assumes the reinvestment of distributions.

⁴ Aggregate total return.

⁵ Annualized.

⁶ Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details.

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	DECEMBER 31, 2015	65

Financial Highlights (continued) BlackRock New York Municipal Opportunities Fund

	Investor A
	Six Months Ended December 31, 2015 (Unaudited)			Year Ended June 30,
				2015			2014			2013			2012			2011
Per Share Operating Performance
Net asset value, beginning of period	$	10.91		$	10.80		$	10.47		$	11.02		$	10.37		$	10.55
Net investment income1		0.18			0.38			0.41			0.43			0.45			0.47
Net realized and unrealized gain (loss)		0.28			0.11			0.33			(0.55	)		0.65			(0.19	)
Net increase (decrease) from investment operations		0.46			0.49			0.74			(0.12	)		1.10			0.28
Distributions from net investment income2		(0.18	)		(0.38	)		(0.41	)		(0.43	)		(0.45	)		(0.46	)
Net asset value, end of period	$	11.19		$	10.91		$	10.80		$	10.47		$	11.02		$	10.37
Total Return3
Based on net asset value		4.23%	4		4.61%			7.26%			(1.30)%			10.77%			2.76%
Ratios to Average Net Assets
Total expenses		1.01%	5		1.04%			1.03%			1.02%			1.06%			1.02%
Total expenses after fees waived and/or reimbursed and paid indirectly		0.93%	5		0.93%			1.03%			1.02%			1.06%			1.01%
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense and fees6		0.89%	5		0.89%			0.98%			0.95%			1.02%			1.00%
Net investment income		3.22%	5		3.50%			3.92%			3.82%			4.17%			4.47%
Supplemental Data
Net assets, end of period (000)	$	128,843		$	82,376		$	46,084		$	50,220		$	43,030		$	35,751
Borrowings outstanding, end of period (000)	$	20,010		$	18,711		$	18,711		$	23,852		$	22,007		$	3,575
Portfolio turnover rate		11%			22%			18%			24%			19%			17%

¹ Based on average shares outstanding.

² Distributions for annual periods determined in accordance with federal income tax regulations.

³ Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions.

⁴ Aggregate total return.

⁵ Annualized.

⁶ Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details.

See Notes to Financial Statements.
66	SEMI-ANNUAL REPORT	DECEMBER 31, 2015

Financial Highlights (continued) BlackRock New York Municipal Opportunities Fund

	Investor A1
	Six Months Ended December 31, 2015 (Unaudited)			Year Ended June 30,
				2015			2014			2013			2012			2011
Per Share Operating Performance
Net asset value, beginning of period	$	10.91		$	10.80		$	10.46		$	11.02		$	10.37		$	10.55
Net investment income1		0.18			0.40			0.42			0.44			0.47			0.49
Net realized and unrealized gain (loss)		0.28			0.11			0.34			(0.56	)		0.65			(0.19	)
Net increase (decrease) from investment operations		0.46			0.51			0.76			(0.12	)		1.12			0.30
Distributions from net investment income2		(0.18	)		(0.40	)		(0.42	)		(0.44	)		(0.47	)		(0.48	)
Net asset value, end of period	$	11.19		$	10.91		$	10.80		$	10.46		$	11.02		$	10.37
Total Return3
Based on net asset value		4.29%	4		4.71%			7.53%			(1.24)%			10.97%			2.95%
Ratios to Average Net Assets
Total expenses		0.86%	5		0.88%			0.88%			0.87%			0.88%			0.84%
Total expenses after fees waived and/or reimbursed and paid indirectly		0.82%	5		0.83%			0.88%			0.87%			0.88%			0.83%
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense and fees6		0.79%	5		0.79%			0.83%			0.80%			0.84%			0.82%
Net investment income		3.33%	5		3.61%			4.07%			3.98%			4.36%			4.66%
Supplemental Data
Net assets applicable, end of period (000)	$	124,578		$	125,718		$	132,184		$	140,469		$	154,473		$	151,327
Borrowings outstanding, end of period (000)	$	20,010		$	18,711		$	18,711		$	23,852		$	22,007		$	3,575
Portfolio turnover rate		11%			22%			18%			24%			19%			17%

¹ Based on average shares outstanding.

² Distributions for annual periods determined in accordance with federal income tax regulations.

³ Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions.

⁴ Aggregate total return.

⁵ Annualized.

⁶ Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details.

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	DECEMBER 31, 2015	67

Financial Highlights (continued) BlackRock New York Municipal Opportunities Fund

	Investor C
	Six Months Ended December 31, 2015 (Unaudited)			Year Ended June 30,
				2015			2014			2013			2012			2011
Per Share Operating Performance
Net asset value, beginning of period	$	10.90		$	10.80		$	10.46		$	11.01		$	10.37		$	10.55
Net investment income1		0.14			0.30			0.33			0.34			0.37			0.39
Net realized and unrealized gain (loss)		0.29			0.10			0.34			(0.55	)		0.64			(0.18	)
Net increase (decrease) from investment operations		0.43			0.40			0.67			(0.21	)		1.01			0.21
Distributions from net investment income2		(0.14	)		(0.30	)		(0.33	)		(0.34	)		(0.37	)		(0.39	)
Net asset value, end of period	$	11.19		$	10.90		$	10.80		$	10.46		$	11.01		$	10.37
Total Return3
Based on net asset value		3.94%	4		3.74%			6.57%			(2.04)%			9.89%			2.03%
Ratios to Average Net Assets
Total expenses		1.75%	5		1.78%			1.78%			1.77%			1.77%			1.73%
Total expenses after fees waived and/or reimbursed and paid indirectly		1.68%	5		1.68%			1.77%			1.77%			1.77%			1.73%
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense and fees6		1.64%	5		1.64%			1.72%			1.70%			1.73%			1.72%
Net investment income		2.47%	5		2.75%			3.17%			3.07%			3.45%			3.76%
Supplemental Data
Net assets, end of period (000)	$	53,839		$	37,670		$	27,595		$	27,082		$	25,201		$	17,180
Borrowings outstanding, end of period (000)	$	20,010		$	18,711		$	18,711		$	23,852		$	22,007		$	3,575
Portfolio turnover rate		11%			22%			18%			24%			19%			17%

¹ Based on average shares outstanding.

² Distributions for annual periods determined in accordance with federal income tax regulations.

³ Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions.

⁴ Aggregate total return.

⁵ Annualized.

⁶ Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details.

See Notes to Financial Statements.
68	SEMI-ANNUAL REPORT	DECEMBER 31, 2015

Financial Highlights (concluded) BlackRock New York Municipal Opportunities Fund

	Investor C1
	Six Months Ended December 31, 2015 (Unaudited)			Year Ended June 30,
				2015			2014			2013			2012			2011
Per Share Operating Performance
Net asset value, beginning of period	$	10.90		$	10.80		$	10.46		$	11.02		$	10.37		$	10.55
Net investment income1		0.16			0.34			0.37			0.39			0.42			0.43
Net realized and unrealized gain (loss)		0.29			0.10			0.34			(0.56	)		0.64			(0.18	)
Net increase (decrease) from investment operations		0.45			0.44			0.71			(0.17	)		1.06			0.25
Distributions from net investment income2		(0.16	)		(0.34	)		(0.37	)		(0.39	)		(0.41	)		(0.43	)
Net asset value, end of period	$	11.19		$	10.90		$	10.80		$	10.46		$	11.02		$	10.37
Total Return3
Based on net asset value		4.13%	4		4.11%			7.00%			(1.73)%			10.43%			2.44%
Ratios to Average Net Assets
Total expenses		1.35%	5		1.37%			1.37%			1.36%			1.37%			1.33%
Total expenses after fees waived and/or reimbursed and paid indirectly		1.32%	5		1.32%			1.36%			1.36%			1.37%			1.33%
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense and fees6		1.28%	5		1.28%			1.31%			1.29%			1.33%			1.32%
Net investment income		2.84%	5		3.12%			3.58%			3.49%			3.86%			4.16%
Supplemental Data
Net assets, end of period (000)	$	7,771		$	7,762		$	8,827		$	10,038		$	11,093		$	10,694
Borrowings outstanding, end of period (000)	$	20,010		$	18,711		$	18,711		$	23,852		$	22,007		$	3,575
Portfolio turnover rate		11%			22%			18%			24%			19%			17%

¹  Based on average shares outstanding.

²  Distributions for annual periods determined in accordance with federal income tax regulations.

³  Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions.

⁴  Aggregate total return.

⁵  Annualized.

⁶  Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details.

See Notes to Financial Statements.
	SEMI-ANNUAL REPORT	DECEMBER 31, 2015	69

Notes to Financial Statements (Unaudited)

1. Organization:

BlackRock Municipal Bond Fund, Inc. (the “Corporation”) and BlackRock Multi-State Municipal Series Trust (the “Trust”) are each registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as open-end management investment companies. The Corporation is organized as a Maryland corporation. The Trust is organized as a Massachusetts business trust. The Board of Directors of the Corporation and the Board of Trustees of the Trust are referred to throughout this report as the “Board of Directors” or the “Board.” The following are referred to herein collectively as the “Funds” or individually, a “Fund”:

Registrant Name	Fund Name	Herein Referred To As	Diversification Classification
BlackRock Municipal Bond Fund, Inc.	BlackRock High Yield Municipal Fund	High Yield Municipal	Diversified
	BlackRock National Municipal Fund	National Municipal	Diversified
	BlackRock Short-Term Municipal Fund	Short-Term Municipal	Diversified
BlackRock Multi-State Municipal Series Trust	BlackRock New York Municipal Opportunities Fund	New York Municipal	Diversified

Each Fund offers multiple classes of shares. All classes of shares have identical voting, dividend, liquidation and other rights and are subject to the same terms and conditions, except that certain classes bear expenses related to the shareholder servicing and distribution of such shares. BlackRock, Institutional, Service, and Class K Shares are sold only to certain eligible investors. Investor A1, Investor B, Investor C1 Shares are only available through exchanges and distribution reinvestments by current holders and for purchase by certain employer-sponsored retirement plans. Investor A and Investor C Shares are generally available through financial intermediaries. Each class has exclusive voting rights with respect to matters relating to its shareholder servicing and distribution expenditures (except that Investor B shareholders may vote on material changes to the Investor A distribution and service plan).

Share Class	Initial Sales Charge	CDSC	Conversion Privilege
BlackRock, Institutional, Service Shares and Class K	No	No	None
Investor A and Investor A1 Shares	Yes	No1	None
Investor B Shares	No	Yes	To Investor A Shares after 10 years
Investor C and Investor C1 Shares	No	Yes	None

¹  Investor A Shares may be subject to a CDSC where no initial sales charge was paid at the time of purchase.

The Funds, together with certain other registered investment companies advised by BlackRock Advisors, LLC (the “Manager”) or its affiliates, are included in a complex of open-end funds referred to as the Equity-Bond Complex.

2. Significant Accounting Policies:

The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. Below is a summary of significant accounting policies:

Segregation and Collateralization: In cases where a Fund enters into certain investments (e.g., financial futures contracts) or certain borrowings (e.g., TOB transactions) that would be treated as “senior securities” for 1940 Act purposes, a Fund may segregate or designate on its books and records cash or liquid assets having a market value at least equal to the amount of its future obligations under such investments or borrowings. Doing so allows the investment or borrowing to be excluded from treatment as a “senior security.” Furthermore, if required by an exchange or counterparty agreement, the Funds may be required to deliver/deposit cash and/or securities to/with an exchange, or broker-dealer or custodian as collateral for certain investments or obligations.

Investment Transactions and Investment Income: For financial reporting purposes, investment transactions are recorded on the dates the transactions are entered into (the trade dates). Realized gains and losses on investment transactions are determined on the identified cost basis. Interest income, including amortization and accretion of premiums and discounts on debt securities, is recognized on the accrual basis. Income, expenses and realized and unrealized gains and losses are allocated daily to each class based on its relative net assets.

Distributions: Distributions from net investment income are declared monthly and paid monthly. Distributions of capital gains are recorded on the ex-dividend date. The character and timing of distributions are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP.

Indemnifications: In the normal course of business, a Fund enters into contracts that contain a variety of representations that provide general indemnification. A Fund’s maximum exposure under these arrangements is unknown because it involves future potential claims against the Fund, which cannot be predicted with any certainty.

Other: Expenses directly related to a Fund or its classes are charged to that Fund or the applicable class. Other operating expenses shared by several funds, including other funds managed by the Manager, are prorated among those funds on the basis of relative net assets or other appropriate methods. Expenses directly related to the Funds and other shared expenses prorated to the Funds are allocated daily to each class based on its relative net assets or other appropriate methods.

70 SEMI-ANNUAL REPORT DECEMBER 31, 2015

Notes to Financial Statements (continued)

The Funds have an arrangement with their custodian whereby fees may be reduced by credits earned on uninvested cash balances, which, if applicable, are shown as fees paid indirectly in the Statements of Operations. The custodian imposes fees on overdrawn cash balances, which can be offset by accumulated credits earned or may result in additional custody charges. Effective September 2015, the arrangement with their custodian for earning credits on uninvested cash balances has ceased and the custodian will be imposing fees on certain uninvested cash balances.

3. Investment Valuation and Fair Value Measurements:

Investment Valuation Policies: The Funds’ investments are valued at fair value (also referred to as “market value” within the financial statements) as of the close of trading on the New York Stock Exchange (“NYSE”) (generally 4:00 p.m., Eastern time). U.S. GAAP defines fair value as the price the Funds would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Funds determine the fair values of their financial instruments using independent dealers or pricing services under policies approved by the Board of Directors of each Fund (the “Board”). The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to provide oversight of the pricing function for the Funds for all financial instruments.

Fair Value Inputs and Methodologies: The following methods (or “techniques”) and inputs are used to establish the fair value of each Fund’s assets and liabilities:

• Municipal investments (including commitments to purchase such investments on a “when-issued” basis) are valued on the basis of prices provided by dealers or pricing services. In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, pricing matrixes, market transactions in comparable investments and information with respect to various relationships between investments.

• Investments in open-end U.S. mutual funds are valued at NAV each business day.

• Financial futures contracts traded on exchanges are valued at their last sale price.

If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of such instruments, or in the event that the application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, or its delegate, in accordance with a policy approved by the Board as reflecting fair value (“Fair Valued Investments”). When determining the price for Fair Valued Investments, the Global Valuation Committee, or its delegate, seeks to determine the price that each Fund might reasonably expect to receive or pay from the current sale or purchase of that asset or liability in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the Global Valuation Committee, or its delegate, deems relevant consistent with the principles of fair value measurement. The pricing of all Fair Valued Investments is subsequently reported to the Board or a committee thereof on a quarterly basis.

Fair Value Hierarchy: Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial statement purposes as follows:

• Level 1 — unadjusted price quotations in active markets/exchanges for identical assets or liabilities that each 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 each 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. The significant unobservable inputs used by the Global Valuation Committee in determining the price for Fair Valued Investments are typically categorized as Level 3. The fair value hierarchy for each Fund’s investments and derivative financial instruments has been included in the Schedules of Investments.

Changes in valuation techniques may result in transfers into or out of an assigned level within the hierarchy. In accordance with each Fund’s policy, transfers between different levels of the fair value hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investments and derivative financial instruments and is not necessarily an indication of the risks associated with investing in those securities.

SEMI-ANNUAL REPORT DECEMBER 31, 2015 71

Notes to Financial Statements (continued)

4. Securities and Other Investments:

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

Forward Commitments and When-Issued Delayed Delivery Securities: Certain Funds may purchase securities on a when-issued basis and may purchase or sell securities on a forward commitment basis. Settlement of such transactions normally occurs within a month or more after the purchase or sale commitment is made. The Funds may purchase securities under such conditions with the intention of actually acquiring them, but may enter into a separate agreement to sell the securities before the settlement date. Since the value of securities purchased may fluctuate prior to settlement, the Funds may be required to pay more at settlement than the security is worth. In addition, the Funds are not entitled to any of the interest earned prior to settlement. When purchasing a security on a delayed delivery basis, the Funds assume the rights and risks of ownership of the security, including the risk of price and yield fluctuations. In the event of default by the counterparty, the Funds’ maximum amount of loss is the unrealized appreciation of unsettled when-issued transactions.

Municipal Bonds Transferred to TOB Trusts: Certain Funds leverage their assets through the use of TOB transactions. The Funds transfer municipal bonds into a special purpose trust (a “TOB Trust”). A TOB Trust generally issues two classes of beneficial interests: short-term floating rate interests (“TOB Trust Certificates”), which are sold to third party investors, and residual inverse floating rate interests (“TOB Residuals”), which are generally issued to the participating funds that contributed the municipal bonds to the TOB Trust. The TOB Trust Certificates have interest rates that generally reset weekly and their holders have the option to tender such certificates to the TOB Trust for redemption at par and any accrued interest at each reset date. The TOB Residuals held by a Fund generally provide the Fund with the right to cause the holders of a proportional share of the TOB Trust Certificates to tender their certificates to the TOB Trust at par plus accrued interest. The Funds may withdraw a corresponding share of the municipal bonds from the TOB Trust. Other funds managed by the investment advisor may also contribute municipal bonds to a TOB Trust into which a Fund has contributed bonds. If multiple BlackRock advised funds participate in the same TOB Trust, the economic rights and obligations under the TOB Residual will be shared among the funds ratably in proportion to their participation in the TOB Trust.

TOB Trusts are generally supported by a liquidity facility provided by a third party bank or other financial institution (the “Liquidity Provider”) that allows the holders of the TOB Trust Certificates to tender their certificates in exchange for payment of par plus accrued interest on any business day. The tendered TOB Trust Certificates may be purchased by the Liquidity Provider and are usually remarketed by a Remarketing Agent, which is typically an affiliated entity of the Liquidity Provider. The Remarketing Agent may also purchase the tendered TOB Trust Certificates for its own account in the event of a failed remarketing.

The TOB Trust may be collapsed without the consent of the Fund, upon the occurrence of tender option termination events (“TOTEs”) or mandatory termination events (“MTEs”), as defined in the TOB Trust agreements. TOTEs include the bankruptcy or default of the issuer of the municipal bonds held in the TOB Trust, a substantial downgrade in the credit quality of the issuer of the municipal bonds held in the TOB Trust, failure of any scheduled payment of principal or interest on the municipal bonds, and/or a judgment or ruling that interest on the municipal bond is subject to federal income taxation. MTEs may include, among other things, a failed remarketing of the TOB Trust Certificates, the inability of the TOB Trust to obtain renewal of the liquidity support agreement and a substantial decline in the market value of the municipal bonds held in the TOB Trust. Upon the occurrence of a TOTE or an MTE, the TOB Trust would be liquidated with the proceeds applied first to any accrued fees owed to the trustee of the TOB Trust, the Remarketing Agent and the Liquidity Provider (defined below). In the case of an MTE, after the payment of fees, the TOB Trust Certificate holders would be paid before the TOB Residual holders (i.e., the Funds). In contrast, in the case of a TOTE, after payment of fees, the TOB Trust Certificate holders and the TOB Residual holders would be paid pro rata in proportion to the respective face values of their certificates. During the six months ended December 31, 2015, no TOB Trusts in which the Funds participated were terminated without the consent of the Funds.

While the Funds’ investment policies and restrictions expressly permit investments in inverse floating rate securities, such as TOB Residuals, they generally do not allow the Funds to borrow money for purposes of making investments. The Funds’ management believes that the Fund’s restrictions on borrowings do not apply to the secured borrowings. A Fund’s transfer of the municipal bonds to a TOB Trust is considered a secured borrowing for financial reporting purposes. The cash received by the TOB Trust from the sale of the TOB Trust Certificates, less certain transaction expenses, is paid to the Fund. The Fund typically invests the cash received in additional municipal bonds. The municipal bonds deposited into a TOB Trust are presented in the Funds’ Schedules of Investments and the TOB Trust Certificates are shown in Other Liabilities in the Statements of Assets and Liabilities. Any loans drawn by the TOB Trust to purchase tendered TOB Trust Certificates would be shown as Loan for TOB Trust Certificates.

• Volcker Rule Impact: On December 10, 2013, regulators published final rules implementing section 619 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Volcker Rule”), which precludes banking entities and their affiliates from sponsoring and investing in TOB Trusts. Banking entities subject to the Volcker Rule were required to fully comply by July 21, 2015, with respect to investments in and relationships with TOB Trusts established after December 31, 2013 (“Non-Legacy TOB Trusts”), and by July 21, 2016, with respect to investments in and relationships with TOB Trusts established prior to December 31, 2013 (“Legacy TOB Trusts”).

As a result, a new structure for TOB Trusts has been designed to ensure that no banking entity is sponsoring the TOB Trust. Specifically, the Fund will establish, structure and “sponsor” the TOB Trusts in which it holds TOB Residuals. In such a structure, certain responsibilities that previously belonged to a third

72 SEMI-ANNUAL REPORT DECEMBER 31, 2015

Notes to Financial Statements (continued)

party bank will be performed by, or on behalf of, the Funds. The Funds have restructured any Non-Legacy TOB Trusts and are in the process of restructuring Legacy TOB Trusts in conformity with regulatory guidelines. Until all restructurings are completed, a Fund may, for a period of time, hold TOB Residuals in both Legacy TOB Trusts and non-bank sponsored restructured TOB Trusts.

Under the new TOB Trust structure, the Liquidity Provider or Remarketing Agent will no longer purchase the tendered TOB Trust Certificates even in the event of failed remarketing. This may increase the likelihood that a TOB Trust will need to be collapsed and liquidated in order to purchase the tendered TOB Trust Certificates. The TOB Trust may draw upon a loan from the Liquidity Provider to purchase the tendered TOB Trust Certificates. Any loans made by the Liquidity Provider will be secured by the purchased TOB Trust Certificates held by the TOB Trust and will be subject to an increased interest rate based on the number of days the loan is outstanding.

Accounting for TOB Trusts: The municipal bonds deposited into a TOB Trust are presented in the Funds’ Schedules of Investments and the TOB Trust Certificates are shown in Other Liabilities in the Statements of Assets and Liabilities. Any loans drawn by the TOB Trust to purchase tendered TOB Trust Certificates are shown as Loan for TOB Trust Certificates. The carrying amount of the Funds’ payable to the holder of the TOB Trust Certificates, as reported in the Statements of Assets and Liabilities as TOB Trust Certificates, approximates its fair value.

Interest income, including amortization and accretion of premiums and discounts, from the underlying municipal bonds is recorded by the Funds on an accrual basis. Interest expense incurred on the TOB transaction and other expenses related to remarketing, administration, trustee, liquidity and other services to a TOB Trust are shown as interest expense, fees and amortization of offering costs in the Statements of Operations. Fees paid upon creation of the TOB Trust are recorded as debt issuance costs and are amortized to interest expense, fees and amortization of offering costs in the Statements of Operations to the expected maturity of the TOB Trust. In connection with the restructurings of the TOB Trusts to comply with the Volcker Rule, the Funds incurred non-recurring, legal and restructuring fees, which are recorded as interest expense, fees and amortization of deferred offering costs in the Statements of Operations.

For the six months ended December 31, 2015, the following table is a summary of the Funds’ TOB Trusts:

	Underlying Municipal Bonds Transferred to TOB Trusts1		Liability for TOB Trust Certificates2		Range of Interest Rates		Average TOB Trust Certificates Outstanding		Daily Weighted Average Interest Rate
High Yield Municipal	$	96.376.965	$	52,625,555		0.01% - 0.21%	$	41,650,410		0.69%
National Municipal	$	399,135,853	$	178,529,971		0.01% - 0.13%	$	267,729,724		0.59%
New York Municipal	$	37,205,090	$	20,010,373		0.01% - 0.14%	$	19,233,328		0.63%

¹  The municipal bonds transferred to a TOB Trust are generally high grade municipal bonds. In certain cases, when municipal bonds transferred are lower grade municipal bonds, the TOB transaction may include a credit enhancement feature that provides for the timely payment of principal and interest on the bonds to the TOB Trust by a credit enhancement provider in the event of default of the municipal bond. The TOB Trust would be responsible for the payment of the credit enhancement fee and the Funds, as TOB Residual holders, would be responsible for reimbursement of any payments of principal and interest made by the credit enhancement provider. The municipal bonds transferred to TOB Trusts with a credit enhancement are identified in the Schedules of Investments including the maximum potential amounts owed by the Funds.

²  The Funds may invest in TOB Trusts on either a non-recourse or recourse basis. When a Fund invests in TOB Trusts on a non-recourse basis, and the Liquidity Provider is required to make a payment under the liquidity facility, the Liquidity Provider will typically liquidate all or a portion of the municipal bonds held in the TOB Trust and then fund the balance, if any, of the amount owed under the liquidity facility over the liquidation proceeds (the “Liquidation Shortfall”). If the Funds invest in a TOB Trust on a recourse basis, the Funds will usually enter into a reimbursement agreement with the Liquidity Provider where the Funds are required to reimburse the Liquidity Provider the amount of any Liquidation Shortfall. As a result, if the Funds invest in a recourse TOB Trust, the Fund will bear the risk of loss with respect to any Liquidation Shortfall. If multiple funds participate in any such TOB Trust, these losses will be shared ratably, including the maximum potential amounts owed by the Funds at December 31, 2015, in proportion to their participation in the TOB Trust. The recourse TOB Trusts are identified in the Schedules of Investments including the maximum potential amounts owed by the Funds at December 31, 2015.

5. Derivative Financial Instruments:

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

Financial Futures Contracts: Certain Funds invest in long and/or short positions in financial futures contracts and options on financial futures contracts to gain exposure to, or economically hedge against, changes in interest rates (interest rate risk). Financial futures contracts are agreements between the Funds and a counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and at a specified date. Depending on the terms of the particular contract, financial futures contracts are settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash settlement amount on the settlement date.

Upon entering into a financial futures contract, the Funds are required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on a contract’s size and risk profile. The initial margin deposit must then be maintained at an established level over the life of the contract. Securities deposited as initial margin are designated on the Schedules of Investments and cash deposited, if any, is recorded on the Statements of Assets and Liabilities as cash pledged for financial futures contracts. Pursuant to the contract, the Funds agree to receive from or pay to the

SEMI-ANNUAL REPORT DECEMBER 31, 2015 73

Notes to Financial Statements (continued)

broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as variation margin. Variation margin is recorded by the Funds as unrealized appreciation (depreciation) and, if applicable, as a receivable or payable for variation margin in the Statements of Assets and Liabilities.

When the contract is closed, the Funds record a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. The use of financial futures contracts involves the risk of an imperfect correlation in the movements in the price of financial futures contracts, interest or foreign currency exchange rates and the underlying assets.

6. Investment Advisory Agreement and Other Transactions with Affiliates:

The PNC Financial Services Group, Inc. is the largest stockholder and an affiliate of BlackRock, Inc. (“BlackRock”) for 1940 Act purposes.

The Corporation and the Trust, on behalf of the the Funds, entered into an Investment Advisory Agreement with the Manager, the Funds’ investment advisor, an indirect, wholly owned subsidiary of BlackRock, to provide investment advisory and administration services. The Manager is responsible for the management of each Fund’s portfolio and provides the personnel, facilities, equipment and certain other services necessary to the operations of each Fund. For such services, each Fund pays the Manager a monthly fee based on a percentage of each Fund’s average daily net assets at the following annual rates:

High Yield Municipal:
Portion of Average Daily Net Assets	Investment Advisory Fee
First $250 Million		0.550	%
$250 — $500 Million		0.525	%
Greater than $500 Million		0.500	%

National Municipal and Short-Term Municipal:
	Rate of Investment Advisory Fee
Aggregate of Average Daily Net Assets of the Two Combined Funds1	National Municipal2			Short-Term Municipal
First $250 Million		0.450	%		0.400	%
$250 Million — $400 Million		0.425	%		0.375	%
$400 Million — $550 Million		0.425	%		0.350	%
Greater than $550 Million		0.425	%		0.325	%

²  Effective October 1, 2015.

Prior to October 1, 2015, the investment advisory fee rate for National Municipal was as follows:

Aggregate of Average Daily Net Assets of the Two Combined Funds1
First $250 Million	0.500	%
Greater than $250 Million	0.475	%

¹  The portion of the assets of a Fund to which the rate of each breakpoint level applies will be determined on a “uniform percentage” basis. The uniform percentage applicable to a breakpoint level is determined by dividing the amount of the aggregate average daily net assets of the two combined Funds that falls within that breakpoint level by the aggregate average daily net assets of the two combined Funds. The amount of the fee for a Fund at each breakpoint level is determined by multiplying the average daily net assets of that Fund by the uniform percentage applicable to that breakpoint level and multiplying the product by the advisory fee rate.

New York Municipal:
	Investment Advisory Fee
Portion of Average Daily Net Assets		0.550%

The Manager voluntarily agreed to waive a portion of its fees payable by New York Municipal, which is included in fees waived by Manager in the Statements of Operations, so that such fee is reduced for average daily net assets of the Fund as follows:

Portion of Average Daily Net Assets	Rate
First $500 Million		0.550%
$500 — $1 Billion		0.525%
Greater than $1 Billion		0.500%

The Manager voluntarily agreed to waive its investment advisory fees by the amount of investment advisory fees each Fund pays to the Manager indirectly through its investment in affiliated money market funds. These amounts are included in fees waived by the Manager in the Statements of Operations. However, the Manager does not waive its investment advisory fees by the amount of investment advisory fees paid in connection with each Fund’s investments in other affiliated investment companies, if any. For the six months ended December 31, 2015, the amounts waived were as follows:

	High Yield Municipal		National Municipal		Short-Term Municipal		New York Municipal
Amounts waived		—	$	3		—	$	2,158

74 SEMI-ANNUAL REPORT DECEMBER 31, 2015

Notes to Financial Statements (continued)

For National Municipal, Short-Term Municipal and New York Municipal, the Manager contractually agreed to waive and/or reimburse fees or expenses in order to limit expenses, excluding interest expense, dividend expense, tax expense, acquired fund fees and expenses and certain other fund expenses, which constitute extraordinary expenses not incurred in the ordinary course of each Fund’s business. The current expense limitations as a percentage of average daily net assets are as follows:

	National Municipal		Short-Term Municipal		New York Municipal
BlackRock		0.46%		—		—
Institutional		—		0.40%		0.65%
Investor A		0.72%		0.69%		0.89%
Investor A1		—		0.52%		—
Investor B		1.23%		—		—
Investor C		1.47%		1.55%		1.64%
Investor C1		1.28%		—		—
Class K		—		—		—

The Manager has agreed not to reduce or discontinue this contractual expense limitation prior to prior to November 1, 2016, unless approved by the Board, including a majority of the independent directors.

As a result, for National Municipal, Short-Term Municipal and New York Municipal, the Manager waived or reimbursed the following amounts which are shown as transfer agent fees waived and/or reimbursed — class specific in the Statements of Operations:

	National Municipal		Short-Term Municipal		New York Municipal
BlackRock	$	62,862		—		—
Institutional		—	$	286,696	$	12,213
Investor A	$	1,155,838	$	2,386	$	23,767
Investor A1		—		—		—
Investor B	$	1,536		—		—
Investor C	$	76,012	$	13	$	9,078
Investor C1	$	9,861	$	4,743		—
Class K		—		—		—

In addition, the following Funds had a waiver of investment advisory fees, which are included in fees waived by Manager in the Statements of Operations. For the six months ended December 31, 2015, the amounts waived were as follows:

	National Municipal		Short-Term Municipal		New York Municipal
Amounts	$	654,963	$	21,549	$	63,989

If during the Funds’ fiscal year the operating expenses of a share class, that at any time during the prior two fiscal years received a waiver or reimbursement from the Manager, are less than the expense limit for that share class, the Manager is entitled to be reimbursed by such share class up to the lesser of (a) the amount of fees waived or expenses reimbursed during those prior two fiscal years under the agreement and (b) the amount by which the expense limit for that share class exceeds the operating expenses of the share class for the current fiscal year, provided that: (1) the Funds, of which the share class is a part, has more than $50 million in assets for the fiscal year and (2) the Manager or an affiliate continues to serve as the Funds’ investment advisor or administrator. In the event the expense limit for a share class is changed subsequent to a fiscal year in which the Manager becomes entitled to reimbursement for fees waived or reimbursed, the amount available to reimburse the Manager shall be calculated by reference to the expense limit for that share class in effect at the time the Manager became entitled to receive such reimbursement, rather than the subsequently changed expense limit for that share class.

For the six months ended December 31, 2015, the Manager did not recoup any of New York Municipal’s fund level and class specific waivers and/or reimbursements.

On December 31, 2015, for New York Municipal, the Fund level and class specific waivers and/or reimbursements subject to possible future recoupment under the expense limitation agreement are as follows:

	Expiring June 30, 2017		Expiring June 30, 2016
Fund level	$	63,989	$	5,627
Institutional	$	12,213	$	2,003
Investor A	$	23,767	$	1,026
Investor C	$	9,078	$	633

SEMI-ANNUAL REPORT DECEMBER 31, 2015 75

Notes to Financial Statements (continued)

For the six months ended December 31, 2015, the Funds reimbursed the Manager for certain accounting services, which is included in accounting services in the Statements of Operations. The reimbursements were as follows:

	High Yield Municipal		National Municipal		Short-Term Municipal		New York Municipal
Amounts	$	62,468	$	370,392	$	71,944	$	33,488

The Corporation and the Trust, on behalf of their respective Funds, entered into a Distribution Agreement and Distribution and Service Plan with BlackRock Investments, LLC (“BRIL”), an affiliate of the Manager. Pursuant to the Distribution and Service Plan and in accordance with Rule 12b-1 under the 1940 Act, each Fund pays BRIL ongoing service and distribution fees. The fees are accrued daily and paid monthly at annual rates based upon the average daily net assets of the relevant share class of each Fund as follows:

	Service Fees
	High Yield Municipal		National Municipal		Short-Term Municipal		New York Municipal
Service		—		0.25%		—		—
Investor A		0.25%		0.25%		0.25%		0.25%
Investor A1		—		—		0.10%		0.10%
Investor B		—		0.25%		—		—
Investor C		0.25%		0.25%		0.25%		0.25%
Investor C1		—		0.25%		—		0.25%
	Distribution Fees
	High Yield Municipal		National Municipal		Short-Term Municipal		New York Municipal
Investor B		—		0.50%		—		—
Investor C		0.75%		0.75%		0.75%		0.75%
Investor C1		—		0.55%		—		0.35%

Pursuant to sub-agreements with BRIL, broker-dealers and BRIL provide shareholder servicing and distribution services to the Funds. The ongoing service and/or distribution fee compensates BRIL and each broker-dealer for providing shareholder servicing and/or distribution related services to Service, Investor A, Investor A1, Investor B, Investor C and Investor C1 shareholders.

Pursuant to written agreements, certain financial intermediaries, some of which may be affiliates, provide the Funds with sub-accounting, recordkeeping, sub-transfer agency and other administrative services with respect to sub-accounts they service. For these services, these entities receive an asset-based fee or an annual fee per shareholder account, which will vary depending on share class and/or net assets. For the six months ended December 31, 2015, the Funds paid the following amounts to affiliates of BlackRock in return for these services, which are included in transfer agent — class specific in the Statements of Operations:

	High Yield Municipal		National Municipal		Short-Term Municipal
Institutional	$	107	$	531,683	$	177,013
Service		—	$	87		—
Investor A		—	$	905		—
Investor C		—	$	15		—

The Manager maintains a call center, which is responsible for providing certain shareholder services to the Funds, such as responding to shareholder inquiries and processing transactions based upon instructions from shareholders with respect to the subscription and redemption of Fund shares. For the six months ended December 31, 2015, each Fund reimbursed the Manager the following amounts for costs incurred in running the call center, which are included in transfer agent — class specific in the Statements of Operations:

	Call Center Fees
	High Yield Municipal		National Municipal		Short-Term Municipal		New York Municipal
BlackRock		—	$	52		—		—
Institutional		—		—	$	1,320	$	184
Service		—		—		—		—
Investor A		—	$	6,908	$	225	$	242
Investor A1		—		—	$	145		—
Investor B		—		—		—		—
Investor C		—	$	1,472	$	1	$	126
Investor C1		—	$	184		—		—
Class K		—		—		—		—

76 SEMI-ANNUAL REPORT DECEMBER 31, 2015

Notes to Financial Statements (continued)

Certain officers and/or directors of the Funds are officers and/or directors of BlackRock or its affiliates. The Funds reimburse the Manager for a portion of the compensation paid to the Funds’ Chief Compliance Officer, which is included in officer and directors in the Statements of Operations.

For the six months ended December 31, 2015, affiliates earned underwriting discounts, direct commissions and dealer concessions on sales of the Funds’ Investor A Shares as follows:

	High Yield Municipal		National Municipal		Short-Term Municipal		New York Municipal
Investor A	$	11,919	$	50,428	$	3,457	$	10,172

For the six months ended December 31, 2015, affiliates received CDSCs as follows:

	High Yield Municipal		National Municipal		Short-Term Municipal		New York Municipal
Investor A	$	9,993	$	19,055	$	17,407	$	6,583
Investor B		—	$	2		—		—
Investor C	$	4,429	$	20,278	$	2,099	$	4,737
Investor C1		—	$	766		—		—

The Funds may purchase securities from, or sell securities to, an affiliated fund, provided the affiliation is due solely to having a common investment advisor, common officers, or common directors. For the six months ended December 31, 2015, the purchase and sale transactions with an affiliated fund in compliance with Rule 17a-7 under the 1940 Act were as follows:

	Purchases		Sales
New York Municipal	$	3,113,845		—

7. Purchases and Sales:

For the six months ended December 31, 2015, purchases and sales of investments, excluding short-term securities, were as follows:

	Purchases		Sales
High Yield Municipal	$	155,548,078	$	55,687,848
National Municipal	$	2,334,779,847	$	1,769,606,006
Short-Term Municipal	$	218,717,367	$	261,128,943
New York Municipal	$	123,274,113	$	38,065,341

8. Income Tax Information:

It is the Funds’ policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute substantially all of their taxable income to their shareholders. Therefore, no federal income tax provision is required.

The Funds file U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the Funds’ U.S. federal tax returns remains open for each of the four years ended June 30, 2015. The statutes of limitations on the Funds’ state and local tax returns may remain open for an additional year depending upon the jurisdiction.

Management has analyzed tax laws and regulations and their application to the Funds as of December 31, 2015, inclusive of the open tax return years, and does not believe there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.

As of period end, the Funds had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates as follows:

Expires June 30,	High Yield Municipal			National Municipal		Short-Term Municipal		New York Municipal
No expiration date1		$	8,146,428	$	34,524,810		—	$	5,893,033
2016			—		9,699,108	$	322,206		—
2017			2,901,962		29,857,944		—		2,020,225
2018			4,665,271		41,255,757		—		367,311
2019			1,973,257		—		—		1,028,212
Total		$	17,686,918	$	115,337,619	$	322,206	$	9,308,781

¹  Must be utilized prior to losses subject to expiration.

As of period end, gross unrealized appreciation and depreciation based on cost for federal income tax purposes were as follows:

	High Yield Municipal				National Municipal			Short-Term Municipal			New York Municipal
Tax cost		$	595,654,150		$	5,770,485,033		$	603,906,642		$	401,627,840
Gross unrealized appreciation		$	42,024,636		$	406,585,510		$	539,892		$	27,227,247
Gross unrealized depreciation			(2,383,992	)		(777,304	)		(768,343	)		(541,007	)
Net unrealized appreciation (depreciation)		$	$39,640,644		$	405,808,206		$	(228,451	)	$	26,686,240

SEMI-ANNUAL REPORT DECEMBER 31, 2015 77

Notes to Financial Statements (continued)

9. Bank Borrowings:

The Corporation and the Trust, on behalf of the Funds, along with certain other funds managed by the Manager and its affiliates (“Participating Funds”), is a party to a 364-day, $2.1 billion credit agreement with a group of lenders, under which the Funds may borrow to fund shareholder redemptions. Excluding commitments designated for certain funds, the Participating Funds, including the Funds, can borrow up to an aggregate commitment amount of $1.6 billion at any time outstanding, subject to asset coverage and other limitations as specified in the agreement. The credit agreement has the following terms: a fee of 0.06% per annum on unused commitment amounts and interest at a rate equal to the higher of (a) one-month LIBOR (but, in any event, not less than 0.00%) on the date the loan is made plus 0.80% per annum or (b) the Fed Funds rate (but, in any event, not less than 0.00%) in effect from time to time plus 0.80% per annum on amounts borrowed. The agreement expires in April 2016 unless extended or renewed. Participating Funds paid administration, legal and arrangement fees, which, if applicable, are included in miscellaneous expenses in the Statements of Operations, and along with commitment fees, were allocated among such funds based upon portions of the aggregate commitment available to them and relative net assets of Participating Funds. During the six months ended December 31, 2015, the Funds did not borrow under the credit agreement.

10. Principal Risks:

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

Inventories of municipal bonds held by brokers and dealers may decrease, which would lessen their ability to make a market in these securities. Such a reduction in market making capacity could potentially decrease a Fund’s ability to buy or sell bonds. As a result, a Fund may sell a security at a lower price, sell other securities to raise cash, or give up an investment opportunity, any of which could have a negative impact on performance. If a Fund needed to sell large blocks of bonds, those sales could further reduce the bonds’ prices and impact performance.

In the normal course of business, the Funds invest in securities and enter into transactions where risks exist due to fluctuations in the market (market risk) or failure of the issuer to meet all its obligations, including the ability to pay principal and interest when due (issuer credit risk). The value of securities held by the Funds may decline in response to certain events, including those directly involving the issuers of securities owned by the Funds. Changes arising from the general economy, the overall market and local, regional or global political and/or social instability, as well as currency, interest rate and price fluctuations, may also affect the securities’ value.

TOB Trusts

The Funds may hold a significant amount of bonds subject to calls by the issuers at defined dates and prices. When bonds are called by issuers and the Funds reinvest the proceeds received, such investments may be in securities with lower yields than the bonds originally held, and correspondingly, could adversely impact the yield and total return performance of a Fund.

The new TOB Trust structure resulting from the compliance with Volcker Rule remains untested. It is possible that regulators could take positions that could limit the market for such newly structured TOB Trust transactions or the Funds’ ability to hold TOB Residuals. Under the new TOB Trust structure, the Funds will have certain additional duties and responsibilities, which may give rise to certain additional risks including, but not limited to, compliance, securities law and operational risks.

There can be no assurance that the Funds can successfully enter into restructured TOB Trust transactions in order to refinance their existing TOB Residual holdings prior to the compliance date for the Volcker Rule, which may require that the Funds unwind existing TOB Trusts.

Should short-term interest rates rise, the Funds’ investments in TOB transactions may adversely affect the Funds’ net investment income and dividends to shareholders. Also, fluctuations in the market value of municipal bonds deposited into the TOB Trust may adversely affect the Funds’ NAVs per share.

The SEC and various federal banking and housing agencies recently adopted credit risk retention rules for securitizations (the “Risk Retention Rules”), which take effect in December 2016. The Risk Retention Rules would require the sponsor of a TOB Trust to retain at least 5% of the credit risk of the underlying assets supporting the TOB Trust’s Municipal Bonds. The Risk Retention Rules may adversely affect the Funds’ ability to engage in TOB Trust transactions or increase the costs of such transactions in certain circumstances.

TOB Trust transactions constitute an important component of the municipal bond market. Accordingly, implementation of the Volcker Rule may adversely impact the municipal market, including through reduced demand for and liquidity of municipal bonds and increased financing costs for municipal issuers. Any such developments could adversely affect the Funds. The ultimate impact of these rules on the TOB market and the overall municipal market is not yet certain.

Counterparty Credit Risk: Similar to issuer credit risk, the Funds may be exposed to counterparty credit risk, or the risk that an entity may fail to or be unable to perform on its commitments related to unsettled or open transactions. The Funds manage counterparty credit risk by entering into transactions only with counterparties that the Manager believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Funds to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Funds’ exposure to market, issuer and counterparty credit risks with respect to these financial assets is approximately their value recorded in the Statements of Assets and Liabilities, less any collateral held by the Funds.

78 SEMI-ANNUAL REPORT DECEMBER 31, 2015

Notes to Financial Statements (continued)

A derivative contract may suffer a mark-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform under the contract.

With exchange-traded futures, there is less counterparty credit risk to the Funds since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, a Fund does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency). Additionally, credit risk exists in exchange-traded futures with respect to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Funds.

Concentration Risk: New York Municipal invests a substantial amount of its assets in issuers located in a single state or limited number of states. This may subject the Fund to the risk that economic, political or social issues impacting a particular state or group of states could have an adverse and disproportionate impact on the income from, or the value or liquidity of, the Fund’s respective portfolio. Investment percentages in specific states or U.S. territories are presented in the Schedule of Investments.

As of period end, Short-Term Municipal invested a significant portion of its assets in securities in the state sector. New York Municipal invested a significant portion of its assets in securities in the county, city, special district, and school district sectors. Changes in economic conditions affecting such sectors would have a greater impact on the Funds and could affect the value, income and/or liquidity of positions in such securities.

Certain Funds may invest in municipal bonds below investment grade quality (sometimes called “junk bonds”), which are predominantly speculative, have greater credit risk and generally are less liquid and have more volatile prices than higher quality securities.

The Funds invest a significant portion of their assets in fixed-income securities and/or use derivatives tied to the fixed-income markets. Changes in market interest rates or economic conditions may affect the value and/or liquidity of such investments. Interest rate risk is the risk that prices of bonds and other fixed-income securities will increase as interest rates fall and decrease as interest rates rise. The Funds may be subject to a greater risk of rising interest rates due to the current period of historically low rates.

11. Capital Share Transactions:

Transactions in capital shares for each class were as follows:

	Six Months Ended December 31, 2015						Year Ended June 30, 2015
High Yield Municipal	Shares			Amount			Shares			Amount
Institutional
Shares sold		10,569,079		$	99,247,074			45,102,954		$	423,065,828
Shares issued in reinvestment of distributions		456,546			4,287,368			1,000,744			9,390,641
Shares redeemed		(4,633,026	)		(43,241,877	)		(37,458,625	)		(352,592,076	)
Net increase		6,392,599		$	60,292,565			8,645,073		$	79,864,393
Investor A
Shares sold		4,923,058		$	46,121,028			9,254,843		$	86,320,049
Shares issued in reinvestment of distributions		270,146			2,532,300			455,687			4,259,873
Shares redeemed		(2,737,509	)		(25,566,740	)		(10,544,977	)		(97,769,831	)
Net increase (decrease)		2,455,695		$	23,086,588			(834,447	)	$	(7,189,909	)
Investor C
Shares sold		680,366		$	6,399,825			2,559,556		$	24,094,275
Shares issued in reinvestment of distributions		76,365			717,179			142,625			1,336,310
Shares redeemed		(551,886	)		(5,163,766	)		(2,545,298	)		(23,540,341	)
Net increase (decrease)		204,845		$	1,953,238			156,883		$	1,890,244
Total Net Increase		9,053,139		$	85,332,391			7,967,509		$	74,564,728
National Municipal
BlackRock
Shares sold		67,597		$	738,319			172,837		$	1,900,188
Shares issued in reinvestment of distributions		238,059			2,602,997			502,814			5,518,768
Shares redeemed		(1,440,158	)		(15,698,036	)		(2,948,248	)		(32,361,822	)
Net decrease		(1,134,502	)	$	(12,356,720	)		(2,272,597	)	$	(24,942,866	)

SEMI-ANNUAL REPORT DECEMBER 31, 2015 79

Notes to Financial Statements (continued)

	Six Months Ended December 31, 2015						Year Ended June 30, 2015
National Municipal (concluded)	Shares			Amount			Shares			Amount
Institutional
Shares sold		75,184,784		$	818,570,395			55,833,740		$	613,105,629
Shares issued in reinvestment of distributions		2,315,308			25,324,575			3,523,411			38,668,413
Shares redeemed		(16,654,451	)		(181,805,701	)		(32,299,646	)		(354,184,923	)
Net increase		60,845,641		$	662,089,269			27,057,505		$	297,589,119
Service
Shares sold		41,962		$	457,305			113,954		$	1,251,903
Shares issued in reinvestment of distributions		1,729			18,890			2,857			31,287
Shares redeemed		(23,236	)		(253,680	)		(56,790	)		(618,780	)
Net increase		20,455		$	222,515			60,021		$	664,410
Investor A
Shares sold		37,335,367		$	407,627,685			80,144,915		$	879,503,968
Shares issued in reinvestment of distributions		3,250,825			35,563,891			5,786,719			63,549,696
Shares redeemed		(24,596,530	)		(268,653,411	)		(49,111,145	)		(539,239,530	)
Net increase		15,989,662		$	174,538,165			36,820,489		$	403,814,134
Investor B
Shares sold		3,733		$	40,828,			3,438		$	37,908
Shares issued in reinvestment of distributions		1,754			19,168			5,828			63,943
Shares redeemed		(55,638	)		(606,533	)		(207,595	)		(2,270,700	)
Net decrease		(50,151	)	$	(546,537	)		(198,329	)	$	(2,168,849	)
Investor C
Shares sold		4,650,010		$	50,871,270			5,941,576		$	65,316,455
Shares issued in reinvestment of distributions		356,319			3,898,046			722,056			7,930,234
Shares redeemed		(2,507,001	)		(27,376,128	)		(5,856,453	)		(64,270,673	)
Net increase		2,499,328		$	27,393,188			807,179		$	8,976,016
Investor C1
Shares sold		107		$	1,166			16,455		$	178,738
Shares issued in reinvestment of distributions		44,023			481,418			98,884			1,085,699
Shares redeemed		(276,382	)		(3,016,538	)		(761,168	)		(8,347,153	)
Net decrease		(232,252	)	$	(2,533,954	)		(645,829	)	$	(7,082,716	)
Total Net Increase		77,938,181		$	848,805,926			61,628,439		$	676,849,248
Short-Term Municipal
Institutional
Shares sold		5,751,080		$	58,270,180			15,259,025		$	154,700,384
Shares issued in reinvestment of distributions		44,023			446,272			104,379			1,058,434
Shares redeemed		(9,755,086	)		(98,872,524	)		(27,652,754	)		(280,338,097	)
Net decrease		(3,959,983	)	$	(40,156,072	)		(12,289,350	)	$	(124,579,279	)
Investor A
Shares sold		3,411,258		$	34,569,005			5,017,051		$	50,843,007
Shares issued in reinvestment of distributions		4,608			46,756			8,784			89,117
Shares redeemed		(4,290,740	)		(43,482,506	)		(8,587,605	)		(87,128,142	)
Net decrease		(874,874	)	$	(8,866,745	)		(3,561,770	)	$	(36,196,018	)

80 SEMI-ANNUAL REPORT DECEMBER 31, 2015

Notes to Financial Statements (continued)

	Six Months Ended December 31, 2015						Year Ended June 30, 2015
Short-Term Municipal (concluded)	Shares			Amount			Shares			Amount
Investor A1
Shares sold		3		$	34			822		$	8,350
Shares issued in reinvestment of distributions		2,854			28,954			5,245			53,234
Shares redeemed		(213,165	)		(2,160,949	)		(383,755	)		(3,894,078	)
Net decrease		(210,308	)	$	(2,131,961	)		(377,688	)	$	(3,832,494	)
Investor C
Shares sold		1,255,271		$	12,481,137			1,325,819		$	13,280,247
Shares issued in reinvestment of distributions		165			1,639			—			—
Shares redeemed		(685,883	)		(6,826,111	)		(2,025,529	)		(20,290,134	)
Net increase (decrease)		569,553		$	5,656,665			(699,710	)	$	(7,009,887	)
Class K
Shares sold		—			—			7,841		$	79,399
Shares issued in reinvestment of distributions		1,355		$	13,742			3,287			33,323
Shares redeemed		(148,272	)		(1,500,515	)		(213,202	)		(2,153,460	)
Net decrease		(146,917	)	$	(1,486,773	)		(202,074	)	$	(2,040,738	)
Total Net Decrease		(4,622,529	)	$	(46,984,886	)		(17,130,592	)	$	(173,658,416	)
New York Municipal Opportunities
Institutional
Shares sold		4,260,871		$	46,858,261			6,829,410		$	74,757,900
Shares issued in reinvestment of distributions		120,209			1,324,993			148,603			1,636,295
Shares redeemed		(746,139	)		(8,229,163	)		(2,906,311	)		(31,813,541	)
Net increase		3,634,941		$	39,954,091			4,071,702		$	44,580,654
Investor A
Shares sold		4,534,379		$	49,850,788			5,313,915		$	58,535,084
Shares issued in reinvestment of distributions		133,121			1,468,242			172,179			1,895,701
Shares redeemed		(708,472	)		(7,809,261	)		(2,199,385	)		(24,210,035	)
Net increase		3,959,028		$	43,509,769			3,286,709		$	36,220,750
Investor A1
Shares sold		506		$	5,856			10,627		$	116,434
Shares issued in reinvestment of distributions		128,846			1,419,493			288,948			3,179,983
Shares redeemed		(525,158	)		(5,772,126	)		(1,010,068	)		(11,121,792	)
Net decrease		(395,806	)	$	(4,346,777	)		(710,493	)	$	(7,825,375	)
Investor C
Shares sold		1,540,343		$	16,940,991			1,150,240		$	12,623,904
Shares issued in reinvestment of distributions		42,120			464,355			63,969			703,690
Shares redeemed		(225,333	)		(2,469,885	)		(314,641	)		(3,451,754	)
Net increase		1,357,130		$	14,935,461			899,568		$	9,875,840
Investor C1
Shares sold		—		$	—			6		$	65
Shares issued in reinvestment of distributions		6,493			71,533			14,812			162,982
Shares redeemed		(23,829	)		(261,854	)		(120,323	)		(1,320,232	)
Net decrease		(17,336	)	$	(190,321	)		(105,505	)	$	(1,157,185	)
Total Net Increase		8,537,957		$	93,862,223			7,441,981		$	81,694,684

12. Subsequent Events:

Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.

SEMI-ANNUAL REPORT DECEMBER 31, 2015 81

Officers and Directors

Robert M. Hernandez, Chair of the Board and Director

Fred G. Weiss, Vice Chair of the Board and Director

James H. Bodurtha, Director

Bruce R. Bond, Director

Valerie G. Brown, Director

Donald W. Burton, Director

Honorable Stuart E. Eizenstat, Director

Robert Fairbairn, Director

Kenneth A. Froot, Director

Henry Gabbay, Director

John F. O’Brien, Director

Donald C. Opatrny, Director

Roberta Cooper Ramo, Director

David H. Walsh, Director

John M. Perlowski, Director, President and Chief Executive Officer

Jennifer McGovern, Vice President

Neal Andrews, Chief Financial Officer

Jay Fife, Treasurer

Charles Park, Chief Compliance Officer

Fernanda Piedra, Anti-Money Laundering Compliance Officer

Benjamin Archibald, Secretary

Investment Advisor BlackRock Advisors, LLC Wilmington, DE 19809	Distributor BlackRock Investments, LLC New York, NY 10022	Accounting Agent and Custodian State Street Bank and Trust Company Boston, MA 02110	Legal Counsel Willkie Farr & Gallagher LLP New York, NY 10019	Address of the Funds 100 Bellevue Parkway Wilmington, DE 19809
Transfer Agent BNY Mellon Investment Servicing (US) Inc. Wilmington, DE 19809		Independent Registered Public Accounting Firm Deloitte & Touche LLP Boston, MA 02116

82 SEMI-ANNUAL REPORT DECEMBER 31, 2015

Additional Information

General Information

Householding

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

Availability of Quarterly Schedule of Investments

The Funds file their complete schedules of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the SEC’s website at http://www.sec.gov and may also be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on how to access documents on the SEC’s website without charge may be obtained by calling (800) SEC-0330. The Funds’ Forms N-Q may also be obtained upon request and without charge by calling (800) 441-7762.

Availability of Proxy Voting Policies and Procedures

A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available upon request and without charge (1) by calling (800) 441-7762; (2) at http://www.blackrock.com; and (3) on the SEC’s website at http://www.sec.gov.

Availability of Proxy Voting Record

Information about how the Funds voted proxies relating to securities held in the Funds’ portfolios during the most recent 12-month period ended June 30 is available upon request and without charge (1) at http://www.blackrock.com; or by calling (800) 441-7762; and (2) on the SEC’s website at http://www.sec.gov.

BlackRock’s Mutual Fund Family

BlackRock offers a diverse lineup of open-end mutual funds crossing all investment styles and managed by experts in equity, fixed income and tax-exempt investing. Visit http://www.blackrock.com for more information.

SEMI-ANNUAL REPORT DECEMBER 31, 2015 83

Additional Information (concluded)

Shareholder Privileges

Account Information

Call us at (800) 441-7762 from 8:00 AM to 6:00 PM EST on any business day to get information about your account balances, recent transactions and share prices. You can also reach us on the Web at http://www.blackrock.com/funds.

Automatic Investment Plans

Investor Class shareholders who want to invest regularly can arrange to have $50 or more automatically deducted from their checking or savings account and invested in any of the BlackRock funds.

Systematic Withdrawal Plans

Investor Class shareholders can establish a systematic withdrawal plan and receive periodic payments of $50 or more from their BlackRock funds, as long as their account balance is at least $10,000.

Retirement Plans

Shareholders may make investments in conjunction with Traditional, Rollover, Roth, Coverdell, Simple IRAs, SEP IRAs and 403(b) Plans.

BlackRock Privacy Principles

BlackRock is committed to maintaining the privacy of its current and former fund investors and individual clients (collectively, “Clients”) and to safeguarding their non-public personal information. The following information is provided to help you understand what personal information BlackRock collects, how we protect that information and why in certain cases we share such information with select parties.

If you are located in a jurisdiction where specific laws, rules or regulations require BlackRock to provide you with additional or different privacy-related rights beyond what is set forth below, then BlackRock will comply with those specific laws, rules or regulations.

BlackRock obtains or verifies personal non-public information from and about you from different sources, including the following: (i) information we receive from you or, if applicable, your financial intermediary, on applications, forms or other documents; (ii) information about your transactions with us, our affiliates, or others; (iii) information we receive from a consumer reporting agency; and (iv) from visits to our websites.

BlackRock does not sell or disclose to non-affiliated third parties any non-public personal information about its Clients, except as permitted by law or as is necessary to respond to regulatory requests or to service Client accounts. These non-affiliated third parties are required to protect the confidentiality and security of this information and to use it only for its intended purpose.

We may share information with our affiliates to service your account or to provide you with information about other BlackRock products or services that may be of interest to you. In addition, BlackRock restricts access to non-public personal information about its Clients to those BlackRock employees with a legitimate business need for the information. BlackRock maintains physical, electronic and procedural safeguards that are designed to protect the non-public personal information of its Clients, including procedures relating to the proper storage and disposal of such information.

84 SEMI-ANNUAL REPORT DECEMBER 31, 2015

This report is intended for current holders. It is not authorized for use as an offer of sale or a solicitation of an offer to buy shares of the Funds unless preceded or accompanied by the Funds’ current prospectus. Past performance results shown in this report should not be considered a representation of future performance. Investment returns and principal value of shares will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Statements and other information herein are as dated and are subject to change.

MBNYMB-12/15-SAR

Item 2 –	Code of Ethics – Not Applicable to this semi-annual report
Item 3 –	Audit Committee Financial Expert – Not Applicable to this semi-annual report
Item 4 –	Principal Accountant Fees and Services – Not Applicable to this semi-annual report
Item 5 –	Audit Committee of Listed Registrants – Not Applicable
Item 6 –	Investments (a) The registrant’s Schedule of Investments is included as part of the Report to Stockholders filed under Item 1 of this Form. (b) Not Applicable due to no such divestments during the semi-annual period covered since the previous Form N-CSR filing.
Item 7 –	Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies – Not Applicable
Item 8 –	Portfolio Managers of Closed-End Management Investment Companies – Not Applicable
Item 9 –	Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not Applicable
Item 10 –	Submission of Matters to a Vote of Security Holders –There have been no material changes to these procedures.
Item 11 –	Controls and Procedures
	(a) –  The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 15d-15(b) under the Securities Exchange Act of 1934, as amended.
	(b) –  There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12 –	Exhibits attached hereto
	(a)(1) – Code of Ethics – Not Applicable to this semi-annual report
	(a)(2) – Certifications – Attached hereto
	(a)(3) – Not Applicable
	(b) –    Certifications – Attached hereto

2

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

BlackRock Municipal Bond Fund, Inc.

By:	/s/ John M. Perlowski
	John M. Perlowski
	Chief Executive Officer (principal executive officer) of
	BlackRock Municipal Bond Fund, Inc.

Date: March 1, 2016

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

By:	/s/ John M. Perlowski
	John M. Perlowski
	Chief Executive Officer (principal executive officer) of
	BlackRock Municipal Bond Fund, Inc.
Date: March 1, 2016
By:	/s/ Neal J. Andrews
	Neal J. Andrews
	Chief Financial Officer (principal financial officer) of
	BlackRock Municipal Bond Fund, Inc.
Date: March 1, 2016

3

EX-99.CERT

EX-99. CERT

CERTIFICATION PURSUANT TO RULE 30a-2(a) UNDER THE 1940 ACT AND SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, John M. Perlowski, Chief Executive Officer (principal executive officer) of BlackRock Municipal Bond Fund, Inc., certify that:

1.             I have reviewed this report on Form N-CSR of BlackRock Municipal Bond Fund, Inc.;

2.             Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.             Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4.             The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

a)             designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)             designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)             evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

d)             disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.             The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)             all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

b)             any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: March 1, 2016

/s/ John M. Perlowski         

John M. Perlowski

Chief Executive Officer (principal executive officer) of

BlackRock Municipal Bond Fund, Inc.

EX-99. CERT

CERTIFICATION PURSUANT TO RULE 30a-2(a) UNDER THE 1940 ACT AND SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Neal J. Andrews, Chief Financial Officer (principal financial officer) of BlackRock Municipal Bond Fund, Inc., certify that:

1.             I have reviewed this report on Form N-CSR of BlackRock Municipal Bond Fund, Inc.;

2.             Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.             Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4.             The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

a)             designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)             designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)             evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

d)             disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.             The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)             all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

b)             any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: March 1, 2016

/s/ Neal J. Andrews            

Neal J. Andrews

Chief Financial Officer (principal financial officer) of

BlackRock Municipal Bond Fund, Inc.

EX-99.906CERT

Exhibit 99.906CERT

Certification Pursuant to Rule 30a-2(b) under the 1940 Act and

Section 906 of the Sarbanes-Oxley Act of 2002

Pursuant to 18 U.S.C. § 1350, the undersigned officer of BlackRock Municipal Bond Fund, Inc. (the “registrant”), hereby certifies, to the best of his knowledge, that the registrant’s Report on Form N-CSR for the period ended December 31, 2015 (the “Report”) fully complies with the requirements of Section 15(d) of the Securities Exchange Act of 1934, as amended, and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the registrant.

Date: March 1, 2016

/s/ John M. Perlowski          

John M. Perlowski

Chief Executive Officer (principal executive officer) of

BlackRock Municipal Bond Fund, Inc.

Pursuant to 18 U.S.C. § 1350, the undersigned officer of BlackRock Municipal Bond Fund, Inc. (the “registrant”), hereby certifies, to the best of his knowledge, that the registrant’s Report on Form N-CSR for the period ended December 31, 2015 (the “Report”) fully complies with the requirements of Section 15(d) of the Securities Exchange Act of 1934, as amended, and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the registrant.

Date: March 1, 2016

/s/ Neal J. Andrews            

Neal J. Andrews

Chief Financial Officer (principal financial officer) of

BlackRock Municipal Bond Fund, Inc.

This certification is being furnished pursuant to Rule 30a-2(b) under the Investment Company Act of 1940, as amended, and 18 U.S.C. Section 1350 and is not being filed as part of the Form N-CSR with the Securities and Exchange Commission.