<PAGE>   1
                    U. S. SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                                 FORM 10-K/A

                               AMENDMENT NO. 1

 /X/ ANNUAL REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF
          1934 (FEE REQUIRED) FOR THE FISCAL YEAR ENDED: MAY 31, 2001

                       COMMISSION FILE NUMBER: 817-00807

           ACCESS CAPITAL STRATEGIES COMMUNITY INVESTMENT FUND, INC.
                        (NAME OF ISSUER IN ITS CHARTER)

           MARYLAND                                   04-3369393
(STATE OR OTHER JURISDICTION OF                    (I.R.S. EMPLOYER
INCORPORATION OR ORGANIZATION)                     IDENTIFICATION NUMBER)

             124 MT. AUBURN STREET, SUITE 200N CAMBRIDGE, MA 02138
               (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)(ZIP CODE)

                    ISSUER'S TELEPHONE NUMBER: 617-576-5858

        SECURITIES REGISTERED UNDER SECTION 12 (b) OF THE EXCHANGE ACT:
                                  COMMON STOCK

                     NAME OF EXCHANGE ON WHICH REGISTERED:
                                      N/A

        SECURITIES REGISTERED UNDER SECTION 12 (g) OF THE EXCHANGE ACT:
                                      NONE

                -----------------------------------------------

Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15 (d) of the Exchange during the past 12 months
(or for such shorter period that the Registrant was required to file such
reports), and (2) has been subject to such filing requirements for the past 90
Days: Yes /X / No / /

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K is not contained in this form, and will not be contained, to
the best of the Registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-K or any
amendment to this Form 10-K: / /

Documents incorporated by reference: YES

<PAGE>   2


                 ACCESS CAPITAL COMMUNITY INVESTMENT FUND, INC.
                          2001 FORM 10-K ANNUAL REPORT
                                TABLE OF CONTENTS


                                         PART I

                                                                          PAGE
                                                                          ----


Item 1.     DESCRIPTION OF BUSINESS .....................................  3

Item 2.     PROPERTIES ..................................................  3

Item 3.     LEGAL PROCEEDINGS ...........................................  4

Item 4.     SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS .........  4

                                     PART II

Item 5.     MARKET FOR THE REGISTRANT'S COMMON EQUITY AND
               RELATED STOCKHOLDER MATTERS ..............................  4

Item 6.     SELECTED FINANCIAL DATA .....................................  5

Item 7.     MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
               CONDITION AND RESULTS OF OPERATIONS ......................  5

Item 7A.    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT
               MARKET RISK ..............................................  9

Item 8.     FINANCIAL STATEMENTS ........................................ 12

Item 9.     CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
               ACCOUNTING AND FINANCIAL DISCLOSURE ...................... 13



                                    PART III
                                                                         PAGE
                                                                         ----


Item 10.    DIRECTORS AND EXECUTIVE OFFICERS OF REGISTRANT .............. 13

Item 11.    EXECUTIVE COMPENSATION ...................................... 14

Item 12.    SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS
              AND MANAGEMENT ............................................ 14

Item 13.    CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS .............. 15


                                     PART IV

Item 14.    EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND
              REPORTS ................................................... 15

            SIGNATURES .................................................. 17






                                        2


<PAGE>   3

ITEM 1:  DESCRIPTION OF BUSINESS

Access Capital Strategies Community Investment Fund, Inc. (the "Fund") completed
its organization and registration process in early 1998 and commenced operations
on June 23, 1998. This filing is the Form 10-K Annual Report for the Fund for
fiscal year 2001 covering the period from June 1, 2000 to May 31, 2001.

The Fund is a non-diversified closed-end management company electing status as a
business development company under the Investment Company Act (the "1940 Act").

The Fund's investment objective is to invest in geographically specific private
placement debt securities located in portions of the United States designated by
Fund investors. The Fund invests primarily in private placement debt securities
specifically designed to support underlying community development activities
targeted to low- and moderate-income individuals such as affordable housing,
education, small business lending, and job-creating activities in areas of the
United States designated by Fund investors.

In addition to their geographic specificity, Fund investments must carry a AAA
credit rating or carry credit enhancement from a AAA-rated credit enhancer or be
issued or guaranteed by the U.S. Government, government agencies or
government-sponsored enterprises. The Fund expects (but cannot guarantee) that
all investments made by the Fund will be considered eligible for regulatory
credit under the Community Reinvestment Act ("CRA").

Each of Access Capital Strategies LLC ("Access"), the Fund's manager, and
Merrill Lynch Investment Managers, L.P. ("MLIM"), the Fund's sub-manager, is a
registered investment adviser under the Investment Advisers Act of 1940
("Investment Advisors Act").

As of May 31,2001, the Federal National Mortgage Association ("Fannie Mae"),
through its affiliate Fannie Mae American Communities Fund, held a 32% equity
interest in Access. At May 31, 2001, the Fund held $105,247,017 in Fannie Mae
mortgage-backed securities, representing 86.2% of the Fund's net assets.

The Fund competes with a range of narrowly defined CRA qualified investments
including a few funds that operate on a regional and national basis. However, to
the knowledge of the Fund, there is no other CRA qualified fund in existence
that offers the same risk parameters as the Fund. The Fund competes most
directly with brokers who sell AAA credit quality CRA qualified securities
directly to banking institutions.

The Fund ended the fiscal year on May 31, 2001 with $122,187,672 in net assets
and 1,225.318 shares of common stock ("Shares") owned by twenty-six Fund
investors. The net asset value per Share as of May 31, 2001 was $99,719.15. The
Fund's total return for the fiscal year ended May 31, 2001 was 12.12%.

More information on the Fund is contained in the attached Private Offering
Memorandum and 2001 audited Annual Report.





                                       3
<PAGE>   4


ITEM 2:  PROPERTIES

None
----

ITEM 3.  LEGAL PROCEEDINGS

None
----

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

In connection with the Fund's Annual Meeting of Shareholders (the "Meeting")
held on February 20, 2001, a Proxy statement pursuant to Section 14(a) of the
Securities Exchange Act of 1934 was submitted to shareholders on February 14,
2001. The following proposals were described in the Proxy:

1.   Approval of a Sub-Management Agreement between Access and MLIM with respect
     to the Fund;

2.   Election of six Directors to the Fund's Board (three of whom were current
     Directors and three of whom were nominees) to serve until the next annual
     meeting of shareholders or until their successors are elected and
     qualified; and

3.   Ratification of the selection of KPMG LLP as the Fund's independent auditor
     for the fiscal year ended May 31, 2001.

Each of the proposals was approved at the Meeting. With respect to each
proposal, votes were cast by 16 of the Fund's then 19 shareholders (representing
approximately two-thirds of the amount of Shares at that time), in each case for
the proposal.

ITEM 5.  MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER
MATTERS

(a) Market Information: There is no established public trading market for the
Shares, which are the only class of equity securities authorized or issued by
the Fund.

(b) Holders: At May 31, 2001, the Fund had twenty-six shareholders and 1,225.318
Shares outstanding compared to fifteen shareholders and 525.067 Shares
outstanding at May 31, 2000.

(c) Dividends: The Fund distributes to shareholders substantially all of its net
investment income and net realized capital gains, if any, as determined for
income tax purposes. Dividends are paid on a calendar quarter basis. Applicable
law, including provisions of the 1940 Act, may limit the amount of dividends and
other distributions payable by the Fund. Substantially all of the Fund's net
capital gain (the excess of net long-term capital gain over net short-term
capital loss) and the excess of net short-term capital gain over net long-term
capital loss, if any, will be distributed annually with the Fund's dividend
distribution in December.

Per Share income dividends totaling $16,414.93 were paid as follows from
inception of the Fund on June 23, 1998 through May 31, 2001:

                                                          Dividend
                       Record Date     Payment Date      Per Share
                         30-Sep-98        19-Oct-98       1,389.71



                                        4
<PAGE>   5

                         23-Dec-98      23-Dec-98       1,270.46
                         31-Mar-99      13-Apr-99       1,227.90
                         30-Jun-99       6-Jul-99       1,327.30
                         30-Sep-99      15-Oct-99       1,464.10
                         30-Dec-99      30-Dec-99       1,557.84
                         31-Mar-00      17-Apr-00       1,593.26
                        30-June-00      3-July-00       1,636.09
                         30-Sep-00       3-Oct-00       1,641.80
                         31-Dec-00      27-Dec-00       1,668.45
                         31-Mar-01       5-Apr-01       1,638.02


The Fund has not made any capital gains distributions since inception.

ITEM 6:  SELECTED FINANCIAL DATA

       Selected Financial Data for the Fiscal Years ended May 31, 2001 and May
31, 2000 and for the period from June 23, 1998 (Commencement of Operations) to
May 31, 1999:
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------
                                          Fiscal year ended         Fiscal year ended               Period from June 23, 1998
                                                May 31, 2001              May 31, 2000        (Commencement of Operations) to
                                                                                                                 May 31, 1999
-----------------------------------------------------------------------------------------------------------------------------
<S>                                               <C>                       <C>                                    <C>
SEC Current Yield at end of period                     6.51%                     7.14%                                  5.46%
Annualized ratio of net investment                     6.63%                     6.54%                                  5.03%
income to average net assets
Total return                                          12.12%                     1.69%                                  3.17%
Dividends per share                                $6,584.36                 $5,942.50                              $3,888.07
Net investment income                             $4,192,371                $2,247,145                             $1,218,785
Net realized loss on investments                    $661,249                  $215,414                               -$74,875
Unrealized Gain/Loss                              $2,736,703                $1,266,025                              -$329,661
Management Fees and Expenses                        $367,446                  $199,214                               $140,514
</TABLE>


 ITEM 7:  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
            CONDITION AND RESULTS OF OPERATIONS

OVERVIEW

Access Capital Strategies Community Investment Fund, Inc. (the "Fund") is a
non-diversified closed- end management company electing status as a business
development company. The Fund's investment objective is to invest in
geographically specific private placement debt securities located in portions of
the United States designated by Fund investors. The Fund invests primarily in
private placement debt securities specifically designed to support underlying
community development activities targeted to low- and moderate-income
individuals such as affordable housing, education, small business lending, and
job-creating activities in areas of the United States designated by Fund
investors.

Investors in the Fund must designate a particular geography within the United
States as part of their


                                        5
<PAGE>   6

agreement to purchase Fund shares. The Fund invests only in areas where Fund
shareholders have made targeted designations.

In addition to their geographic specificity, Fund investments must carry a AAA
credit rating or carry credit enhancement from a AAA-rated credit enhancer or be
issued or guaranteed by the U.S. Government, government agencies or
government-sponsored enterprises. The Fund expects (but cannot guarantee) that
all investments made by the Fund will be considered eligible for regulatory
credit under the Community Reinvestment Act ("CRA").

COMPLIANCE

To qualify as a Regulated Investment Company, the Fund must, among other things,
satisfy a diversification standard under the Code such that, at the close of
each quarter of the Fund's taxable year, (I) not more than 25% of the value of
its total assets is invested in the securities (other than government securities
or securities of other RICs) of a single issuer, or two or more issuers which
the Fund controls (under a 20% test) and which are engaged in the same or
similar trades or business or related trades or businesses, and (ii) at least
50% of the market value of its total assets is represented by cash, cash items,
government securities, securities of other RICs and other securities (with each
investment in such other securities limited so that not more than 5% of the
value of the Fund's total assets is invested in the securities of a single
issuer and the Fund does not own more than 10% of the outstanding voting
securities of a single issuer).

Management believes the Fund was in compliance with the above requirements for
the year ended May 31, 2001.

FUND OPERATIONS

INVESTMENT ACTIVITY

During the fiscal year ended May 31, 2001 the Fund made $75.2 million in
purchases of fifty-five CRA securities at yields-to-maturity ranging from 5.9%
to 7.7%. In the prior fiscal year ended May 31, 2000, the Fund made $51.8
million in purchases of fifty-one CRA securities at yields-to-maturity ranging
from 6.9% to 8.1%

During the fiscal year ended May 31, 2001, the Fund made $21.8 million in sales
of nine portfolio holdings. Net realized losses on the sales from June 1, 2000
to May 31, 2001 totaled $661,249. In the prior fiscal year ended May 31, 2000,
the Fund made $16,281,046 in sales of the Federal Home Loan Adjustable Rate MBS
that was the original investment made by the Fund in 1998. Realized losses on
sales from June 1, 1999 to May 31, 2000 totaled $228,075.

The Fund is permitted to use leverage in its investment program, subject to
certain restrictions set forth in its Private Offering Memorandum and the 1940
Act. The Fund had $8.2 million in reverse repurchase agreements at a 4.05% rate
outstanding as of May 31, 2001. For the fiscal year ended May 31, 2001, the
average reverse repurchase agreement was $6.5 million at an average interest
rate of 6.2%. The Fund had a 6.5% $ 8.6 million reverse repurchase agreement
outstanding as of May 31, 2000. For the year ended May 31, 2000, average
borrowings were $6.1 million at an average rate of 5.8%.


                                        6
<PAGE>   7


NET ASSETS AND FUND HOLDINGS AT MAY 31, 2001

At May 31, 2001, the Fund's net assets were $122.2 million, or $99,719.15 per
Share. At May 31, 2000, the Fund's net assets were $49.9 million, or $94,992.49
per share.

The $72.3 million, or 145%, year-to-year increase in net assets was due to the
combination of new Shares issued in the aggregate amount of $70 million during
the period June 1, 2000 to May 31, 2001, and an increase in asset values due to
lower interest rates

The $4,726.66, or 4.4%, increase in the net asset value per Share was due to an
increase in the value of Fund investments, which occurred as a result of lower
interest rates.

The Fund's primary investments are listed on the Schedule of Investments
included with this report.

INVESTMENT INCOME

The Fund had investment income net of all fees (as discussed below) of $4.19
million for the fiscal year ended May 31, 2001. In the prior fiscal year, net
investment income was $2.24 million. This $1.95 million or 87% increase is due
to the Fund's increase in average invested assets and a 9 basis point increase
in the ratio of net investment income to average net assets compared to the
prior year.

MANAGEMENT FEES AND EXPENSES

Access Capital Strategies LLC ("Access") receives from the Fund an annual
management fee, paid quarterly, of fifty basis points (0.50%) of the Fund's
average monthly gross assets less accrued liabilities, other than indebtedness
for borrowing. Merrill Lynch Investment Managers, L.P. ("MLIM") receives from
Access an annual sub-management fee, paid quarterly, of twenty-five basis points
(0.25%) of the Fund's average monthly gross assets less accrued liabilities,
other than indebtedness for borrowings (or if greater, 50% of the management fee
payable to Access under the Management Agreement).

The Fund is also charged up to six basis points (0.06%) of the Fund's total
assets, including assets purchased with borrowed funds, for custody and
portfolio accounting services and operating expenses. To the extent such
expenses exceed six basis points (0.06%) of the Fund's total assets, they will
be borne by Access and MLIM.

Combined organizational and offering expenses (primarily legal) for the Fund
were approximately $100,000. Access agreed to pay these expenses and be
reimbursed by the Fund during the offering period. Beginning with the first
closing and continuing until the final closing of Shares, the Fund has been and
will continue to be charged an annual fee of two basis points (0.02%) of the
Fund's total assets, including assets purchased with borrowed funds, paid
quarterly, to reimburse Access up to the amount of combined organizational and
offering expenses. To the extent that Access is not fully reimbursed for these
expenses, they will continue to be borne by Access.

Investors withdrawing from the Fund will in general receive the then current net
asset value per Share



                                        7
<PAGE>   8

and have transferred to their account maintained by Access the net proceeds from
liquidation of their Shares in the Fund. Access will then charge their account a
1% withdrawal fee and the assets remaining in their account will then be
returned to the investor. The 1% fee will not be charged on funds withdrawn
after an investor has been in the Fund for three years. For shareholders of the
Fund as of March 1, 2001, the fee will be waived on redemptions subsequent to
March 1, 2004. Any arrangements made by individual shareholders prior to March
1, 2001 will take precedence over this change. For shareholders entering the
Fund after March 1, 2001, the fee will be waived on redemptions subsequent to
their third anniversary of becoming a shareholder.

For the fiscal year ended May 31, 2001, the management fee paid by the Fund was
$316,763 and the reimbursement of operating expenses was $50,683. For the prior
fiscal year, the management fee was $171,736 and the expense reimbursement
$27,478. These increases were due to increases in the net assets of the Fund.

YIELD

For the year ended May 31, 2001 the ratio of net investment income to average
net assets was 6.63% compared to 6.54% in the year ago period. At May 31, 2001,
the SEC current yield was 6.51% compared with an SEC current yield of 7.14% at
May 31, 2000.

REALIZED GAIN/LOSS

For the year ended May 31, 2001, the realized loss was $661,249 compared to the
realized loss of $215,414 for the year ago period.

DIVIDENDS PAID

During the year ended May 31, 2001, the Fund distributed dividends of $6,584.36
per share compared to $5,942.50 per share for the year ago period.

TOTAL RETURN

For the year ended May 31, 2001, the Fund's total return was 12.12% compared to
1.69% for the year ended May 31, 2000. The increase in total return was
primarily due to the decline in interest rates in the latter part of the year
and the corresponding increase in market values for the Fund's holdings.

FUND DESIGNATED TARGET REGIONS AT MAY 31, 2001

The Fund's Designated Target Regions ("DTR") are provided by Fund shareholders
at the time of investment. At May 31, 2001 DTRs were:

             DTRs                           AMOUNT
------------------------------      ---------------------------
Boston & Cambridge, MA                                 $500,000
California                                            7,000,000
Connecticut                                             500,000
Florida                                                 500,000
Texas/Louisiana                                       5,000,000
Massachusetts                                        13,750,000




                              8
<PAGE>   9

MA/NH/CT                                                        1,000,000
MA/NH                                                           1,000,000
New England                                                    17,123,838
NY/DC                                                          10,000,000
NY/NJ/TX/FL/CAL/MD/DE                                          10,000,000
New Jersey                                                     26,000,000
Texas                                                           5,000,000
Utah/NJ                                                        25,000,000
                             TOTAL                           $122,373,838

FUND IMPACT PER THE COMMUNITY REINVESTMENT ACT.

The Fund invests in securities that support community development economic
activity as defined in the Community Reinvestment Act.

As of May 31, 2001, the Fund's investments had outstanding loans to 1660
homebuyers with incomes below 80% of median income from the following states in
the following numbers.

California              81
Connecticut             89
Delaware                12
Florida                  5
Louisiana               26
Maryland                73
Massachusetts          583
New Hampshire            5
New Jersey             265
New York                56
Rhode Island            77
Texas                  137
Utah                   192
Washington, D.C.        59
                      ----

Total                 1660

As of May 31, 2001, the Fund's investments had outstanding loans to sponsors of
1027 multi-family affordable housing rental units in Low Income Housing Tax
Credit or HUD insured subsidized properties from the following states in the
following amounts.

California              152
Louisiana                48
Massachusetts           504
New York                157
Texas                   166
                      -----
Total                 1,027




                                        9
<PAGE>   10

The Fund also owned a U.S. Housing & Urban Development guaranteed security
supporting community development in low-income areas of Boston, Massachusetts.


ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

A full discussion of the risks associated with ownership of Fund Shares appears
in the Fund's Private Offering Memorandum. The Fund's market risks may be
summarized as follows:

CREDIT RISK. All investments made by the Fund must be in securities of U.S.
Government Agency or AAA credit quality. Fund investments will typically have
one or more forms of credit enhancement.

LIQUIDITY RISK. Securities purchased by the Fund will generally be privately
placed debt instruments. The market for resale of these securities may be
limited. Furthermore, the Fund may pay a premium for CRA securities purchased
without any assurance that a comparable premium can be received upon sale of the
security.

INTEREST RATE RISK. The Fund will generally invest in fixed rate investments
that have their market values directly affected by changes in prevailing
interest rates. An increase in rates will generally reduce the value of Fund
investments and a decline in interest rates will generally increase the value of
those investments. There may be exceptions due to shifts in the yield curve, the
performance of individual securities and other market factors.

Market Risk associated with Fund portfolio holdings at May 31, 2001:
<TABLE>
<CAPTION>

-------------------------------------------------------------------------------------------------
Investments (at market)                 Variable Rate                         Fixed Rate
-------------------------------------------------------------------------------------------------
<S>                                          <C>            <C>
Maturities less than 1 year                   -              $818,934 Federal Home Loan Bank 3.9%
                                                             Discount Note

Maturities (or weighted average               -              $523,398 FannieMae 5 1/2% MBS
lives) greater than 1 year less                              $492,348 FannieMae 6% MBS
than 7                                                       $638,018 FannieMae 6 1/2% MBS
                                                             $1,030,331 FannieMae 7% MBS

Maturities (or weighted average               -              $474,305 FannieMae 5% MBS
lives) greater than 7 years less                             $1,680,979 FannieMae 5 1/2% MBS
than 10                                                      $2,938,922 FannieMae 6% MBS
                                                             $3,979,601 FreddieMac 6% MBS
                                                             $42,834,857 FannieMae 6 1/2% MBS
                                                             $7,687,381 FreddieMac 6 1/2% MBS
                                                             $1,307,054 US Gov't 6.85% HUD note
                                                             $17,651,515 FannieMae 7% MBS
                                                             $12,955,440 FreddieMac 7% MBS
                                                             $84,263 FannieMae 7 1/4% MBS
                                                             $3,892,087 FreddieMac 7 1/2% MBS
                                                             $21,417,431 FannieMae 7 1/2% MBS
                                                             $2,312,378 FannieMae 7.9% MBS
                                                             $3,187,867 FannieMae 8% MBS
-------------------------------------------------------------------------------------------------
</TABLE>

                                       10





<PAGE>   11

<TABLE>
--------------------------------------------------------------------------------------------------------------
<S>                                   <C>       <C>
Maturities (or weighted average        -        $268,256 FannieMae 6.53% Multi-family
lives) greater than 10 years                    housing     MBS
                                                $8,242,038 FannieMae 7.12% Multi-family
                                                housing MBS
                                                $656,664 FannieMae 7.58% Multi-Family
                                                housing MBS
                                                $813,447 FannieMae 7.97% Multi-Family
                                                housing MBS
                                                $1,947,604 GinnieMae 8.25% Project loan
----------------------------------------------------------------------------------------------------------
 TOTAL                                                                                  137,835,118
----------------------------------------------------------------------------------------------------------
<CAPTION>

-----------------------------------------------------------------------------------------------------------
Borrowings                                                       Variable Rate                  Fixed Rate
-----------------------------------------------------------------------------------------------------------
<S>                                                                    <C>            <C>
Maturities less than 1 year                                                           ($8,207,380) Reverse
                                                                                      repurchase
Maturities (or weighted average lives) greater than 1 year              -                            -
less than 7
Maturities (or weighted average lives) greater than 7 year              -                            -
less than 10
Maturities (or weighted average lives) greater than 10 years            -                            -
-----------------------------------------------------------------------------------------------------------
 TOTAL                                                                                  ($8,207,380)
-----------------------------------------------------------------------------------------------------------
</TABLE>

Excludes $8,554,662 in assets held at brokers pending trade settlements and
$8,513,415 in liabilities for securities sold short with settlements in less
than thirty days.

All Fund activities occur in U.S. dollars.


                                       11
<PAGE>   12

ITEM 8: FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA






















                                       12
<PAGE>   13

                            ACCESS CAPITAL STRATEGIES
                        COMMUNITY INVESTMENT FUND, INC.

                              Financial Statements

                              May 31, 2001 and 2000

                   (With Independent Auditors' Report Thereon)







<PAGE>   14
                          INDEPENDENT AUDITORS' REPORT



The Board of Directors and Shareholders of
Access Capital Strategies Community Investment Fund, Inc.:


We have audited the accompanying statement of assets and liabilities of Access
Capital Strategies Community Investment Fund, Inc. (the "Fund") as of May 31,
2001, including the schedule of investments, and the related statements of
operations and cash flows for the year then ended, the statements of changes in
net assets for each of the two years then ended and the financial highlights for
the period from June 23, 1998 (commencement of operations) to May 31, 1999 and
each of the years in the two-year period ended May 31, 2001. These financial
statements and financial highlights are the responsibility of the Fund's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.

We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included confirmation of
securities owned as of May 31, 2001 by correspondence with the custodian. As to
securities purchased but not yet received, we performed other appropriate
auditing procedures. Our audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of Access
Capital Strategies Community Investment Fund, Inc. as of May 31, 2001 and the
results of its operations, changes in its net assets, cash flows and the
financial highlights for the periods noted above in conformity with accounting
principles generally accepted in the United States of America.



/s/ KPMG LLP


Boston, Massachusetts
July 23, 2001




<PAGE>   15

                            ACCESS CAPITAL STRATEGIES
                        COMMUNITY INVESTMENT FUND, INC.

                             Schedule of Investments

                                  May 31, 2001
<TABLE>
<CAPTION>

                                                                                                  MARKET
                                                                              PAR VALUE           VALUE
                                                                          ----------------   ---------------

MORTGAGE-BACKED SECURITIES (111.1%):
 Federal National Mortgage Association (FNMA) (86.2%):

<S>                                                                      <C>                 <C>
  15 Year Fixed Rate Single Family Mortgage Backed Securities
    5.50%, 3/1/16                                                        $       535,961     $       523,398
    6.00%, 4/1/14                                                                494,982             492,348
    6.50%, 12/1/14 - 6/1/14                                                      641,422             638,018
    7.00%, 1/1/15                                                              1,003,977           1,030,331

  30 Year Fixed Rate Single Family Mortgage Backed Securities
    5.00%, 3/1/29                                                                518,545             474,305
    5.50%, 1/1/29                                                              1,791,853           1,680,979
    6.00%, 3/1/31 - 4/1/31                                                     3,032,756           2,938,922
    6.50%, 6/1/14 - 6/1/31                                                    43,715,701          42,834,857
    7.00%, 5/1/29 - 3/1/31                                                    17,412,098          17,651,515
    7.25%, 12/1/29                                                                82,309              84,263
    7.50%, 7/1/29 - 2/1/31                                                    20,837,928          21,417,431
    7.90%, 1/1/18                                                              2,176,276           2,312,378
    8.00%, 2/1/30 - 4/1/30                                                     3,063,430           3,187,867
                                                                                             ---------------

       Total single family mortgage-backed securities                                             95,266,612
                                                                                             ---------------

  Multi-Family Mortgage Backed Securities
   6.53%, 6/1/16                                                                 273,906             268,256
   7.12%, 9/1/10                                                               7,954,615           8,242,038
   7.58%, 5/1/18                                                                 630,319             656,664
   7.97%, 9/1/17                                                                 769,444             813,447
                                                                                             ---------------

       Total multi-family mortgage-backed securities                                               9,980,405
                                                                                             ---------------

       Total Federal National Mortgage Association securities                                    105,247,017
                                                                                             ---------------

 Federal Home Loan Mortgage Corporation (23.3%):

  30 Year Fixed Rate Single Family Mortgage Backed Securities
   6.00%, 3/1/31 - 4/1/31                                                      4,102,681           3,979,601
   6.50%, 6/1/29 - 3/1/31                                                      7,733,317           7,687,381
   7.00%, 10/1/29 - 4/1/31                                                    12,788,487          12,955,440
   7.50%, 12/1/29 - 3/1/30                                                     3,787,919           3,892,087
                                                                                             ---------------

       Total Federal Home Loan Mortgage Corporation
         single family mortgage-backed securities                                                 28,514,509
                                                                                             ---------------
</TABLE>




                                2                                   (Continued)



<PAGE>   16

                            ACCESS CAPITAL STRATEGIES
                        COMMUNITY INVESTMENT FUND, INC.

                             Schedule of Investments

                                  May 31, 2001
<TABLE>
<CAPTION>

                                                                                                  MARKET
                                                                    PAR VALUE                     VALUE
                                                                  --------------              -------------

<S>                                                               <C>                         <C>
GNMA Pool (1.6%):
  Multi-Family Mortgage Backed Security
    8.25%, 12/15/32                                               $   1,884,048               $   1,947,604
                                                                                              -------------

        Total mortgage-backed securities                                                        135,709,130
                                                                                              -------------

GUARANTEED AND DISCOUNT NOTES (1.7%):

  Boston, MA, U.S. Government Guaranteed Notes
    6.85%, 8/1/07                                                     1,290,000                   1,307,054

  Cash Equivalent Discount Note
    3.90%, 6/13/01                                                      820,000                     818,934
                                                                                              -------------

        Total guaranteed and discount notes                                                       2,125,988
                                                                                              -------------

        Total investments (cost $136,707,405)                                                   137,835,118
                                                                                              -------------

OTHER ASSETS AND LIABILITIES (12.8%)                                                            (15,647,446)
                                                                                              -------------

        Net assets                                                                            $ 122,187,672
                                                                                              =============

SECURITIES SOLD SHORT (NOTE 3):
                                                                                                 Market
Mortgage-backed securities:                                          Par value                   value
                                                                  ---------------             -------------

  FNMA, 7.00%, 12/1/99                                                5,500,000               $   5,548,125
  FNMA, 6.50%, 4/29/01                                                3,000,000                   2,965,290
                                                                                              -------------

      Total (proceeds $8,526,720)                                                             $   8,513,415
                                                                                              =============
</TABLE>

See accompanying notes to financial statements.






                                       3




<PAGE>   17

                            ACCESS CAPITAL STRATEGIES
                         COMMUNITY INVESTMENT FUND, INC.

                       Statement of Assets and Liabilities

                               As of May 31, 2001
<TABLE>
<CAPTION>

                                     ASSETS

<S>                                                                                   <C>
Investments, at market value (cost $136,707,405)                                      $ 137,835,118
Deposits with broker                                                                      8,554,662
Cash                                                                                          3,546
Interest receivable                                                                         772,461
                                                                                      -------------

                                                                                        147,165,787
                                                                                      -------------

                                  LIABILITIES

Payable for investments purchased                                                         8,136,408
Payable for reverse repurchase agreements
   (including accrued interest of $7,380)                                                 8,207,380
Accrued expenses                                                                            101,579
Securities sold short (proceeds received $8,526,720)                                      8,513,415
Interest payable                                                                             19,333
                                                                                      -------------

                                                                                         24,978,115
                                                                                      -------------

                                                                                      $ 122,187,672
                                                                                      =============

                                   NET ASSETS

Net assets represented by:
   Paid-in capital                                                                    $ 121,374,970
   Accumulated undistributed net investment income                                          623,222
   Accumulated net realized loss on investment transactions                                (951,538)
   Net unrealized appreciation on investments and securities sold short                   1,141,018
                                                                                      -------------

   Net assets                                                                         $ 122,187,672
                                                                                      =============

   Net asset value per share                                                          $      99,719
                                                                                      =============

   Shares outstanding                                                                     1,225.318
                                                                                      =============


</TABLE>

See accompanying notes to financial statements.




                                       4
<PAGE>   18

                            ACCESS CAPITAL STRATEGIES
                        COMMUNITY INVESTMENT FUND, INC.

                             Statement of Operations

                             Year ended May 31, 2001
<TABLE>
<CAPTION>

<S>                                                                          <C>
Investment income:
  Interest                                                                   $ 4,970,231

Expenses:
  Management fee                                                                 316,763
  Administrative fees                                                             19,006
  Custody and accounting fees                                                     19,006
  Organizational expenses                                                         12,671
  Interest expense - reverse repurchase agreements                               410,414
                                                                             -----------

        Total expenses                                                           777,860
                                                                             -----------

        Net investment income                                                  4,192,371
                                                                             -----------

Realized and unrealized gain (loss) on investments:
  Net realized loss on investments                                              (661,249)
  Change in unrealized appreciation of investments                             2,736,703
                                                                             -----------

        Net realized and unrealized gain on investments                        2,075,454
                                                                             -----------

        Net increase in net assets resulting from operations                 $ 6,267,825
                                                                             ===========
</TABLE>

See accompanying notes to financial statements.








                                       5
<PAGE>   19

                            ACCESS CAPITAL STRATEGIES
                        COMMUNITY INVESTMENT FUND, INC.

                       Statements of Changes in Net Assets

                        Years ended May 31, 2001 and 2000

<TABLE>
<CAPTION>
                                                                                          2001                    2000
                                                                                     -------------           ------------

<S>                                                                                  <C>                        <C>
Net increase (decrease) in net assets:
  Operations:
     Net investment income                                                           $   4,192,371              2,247,145
     Net realized loss on investments                                                     (661,249)              (215,414)
     Change in unrealized appreciation (depreciation) of investments                     2,736,703             (1,266,025)
                                                                                     -------------           ------------

                Increase in net assets resulting from operations                         6,267,825                765,706
                                                                                     -------------           ------------

  Distributions to shareholders from:
     Net investment income                                                              (3,957,576)            (2,081,193)
                                                                                     -------------           ------------

        Total distribution to shareholders                                              (3,957,576)            (2,081,193)
                                                                                     -------------           ------------

  Capital share transactions:
     Proceeds from sale of shares                                                       69,999,999             25,750,135
                                                                                     -------------           ------------

  Increase in net assets resulting from capital share transactions                      69,999,999             25,750,135
                                                                                     -------------           ------------

  Increase in net assets                                                                72,310,248             24,434,648

Net assets at beginning of year                                                         49,877,424             25,442,776
                                                                                     -------------           ------------

Net assets at end of year                                                            $ 122,187,672             49,877,424
                                                                                     =============           ============

Accumulated undistributed net investment income                                      $     623,222                388,427
                                                                                     =============           ============
</TABLE>



See accompanying notes to financial statements.







                                       6


<PAGE>   20


                            ACCESS CAPITAL STRATEGIES
                         COMMUNITY INVESTMENT FUND, INC.

                              Financial Highlights

        Years ended May 31, 2001 and 2000, and period from June 23, 1998
                  (commencement of operations) to May 31, 1999

<TABLE>
<CAPTION>

                                                                       2001                 2000                 1999
                                                                 --------------         ------------        ------------

<S>                                                              <C>                       <C>                <C>
Per share operating performance:
  Net asset value, beginning of period                           $    94,992.49            99,288.88          100,000.00
                                                                 --------------         ------------        ------------

Income from investment operations:
  Net investment income                                                6,353.22             5,814.07            4,756.27
  Net realized and unrealized gain (loss)
    on investments                                                     4,957.80            (4,167.96)          (1,579.32)
                                                                 --------------         ------------        ------------

                Total from investment operations                      11,311.02             1,646.11            3,176.95
                                                                 --------------         ------------        ------------

Less distributions from net investment income                          6,584.36             5,942.50            3,888.07
                                                                 --------------         ------------        ------------

                Net asset value, end of period                   $    99,719.15            94,992.49           99,288.88
                                                                 ==============         ============        ============

                Total return                                              12.12%                1.69%               3.17%

Ratios/supplemental data:
  Net assets, end of period (in thousands)                       $      122,188               49,877              25,443
  Ratio of expenses to average net assets                                  0.58%                0.58%               0.58%(a)
  Ratio of net investment income to average
        net assets                                                         6.63%                6.54%               5.03%(a)
  Portfolio turnover rate                                                    25%                  57%                 29%
</TABLE>

(a) Annualized.



See accompanying notes to financial statements.






                                       7


<PAGE>   21


                            ACCESS CAPITAL STRATEGIES
                         COMMUNITY INVESTMENT FUND, INC.

                            Statements of Cash Flows

                             Year ended May 31, 2001





<TABLE>
<CAPTION>
<S>                                                                                <C>
Cash flows from operating activities:
  Net increase in net assets from operations                                       $   6,267,825
  Adjustments to reconcile net increase in net assets from
    operations to net cash used in operating activities:
      Net accretion of discount/premium on long-term securities                          (49,292)
      Increase in deposits with broker                                                (8,554,662)
      Decrease (increase) in interest receivable                                        (391,696)
      (Decrease) increase in liability for reverse repurchase
         agreement                                                                      (403,490)
      Increase in liability for investments purchased                                  8,136,408
      Increase in accrued expenses                                                        53,675
      Unrealized (appreciation) depreciation on investments                           (2,736,703)
      Net realized loss on investments                                                   661,249
      Increase in securities sold short                                                8,513,415
      Net appreciation of security sold short                                             13,304
      Increase in interest payable                                                        19,333
      Purchase of investment securities                                             (102,340,184)
      Proceeds from disposition of investment securities                              18,645,132
      Proceeds from mortgage-backed securities paydowns                                6,941,540
      Purchase and sales of short-term investment securities, net                       (814,731)
                                                                                   -------------

                Net cash used by operating activities                                (66,038,877)
                                                                                   -------------
Cash flows from financing activities:
  Capital stock subscriptions                                                         69,999,999
  Cash distributions paid                                                             (3,957,576)
                                                                                   -------------
                Net cash provided by financing activities                             66,042,423
                                                                                   -------------
Net increase in cash                                                                       3,546
Cash, beginning of year                                                                     --
                                                                                   -------------

Cash, end of year                                                                  $       3,546
                                                                                   =============

Cash paid for interest                                                             $     394,571
                                                                                   =============
</TABLE>



See accompanying notes to financial statements.




                                       8
<PAGE>   22



                            ACCESS CAPITAL STRATEGIES
                         COMMUNITY INVESTMENT FUND, INC.

                          Notes to Financial Statements

                                  May 31, 2001



(1)        ORGANIZATION

           Access Capital Strategies Community Investment Fund, Inc. (the
           "Fund"), a Maryland Corporation, is organized as a non-diversified
           closed-end management investment company electing status as a
           business development company ("BDC") under the Investment Company Act
           of 1940 ("1940 Act"). The Fund commenced operations on June 23, 1998.

           The Fund's investment objective is to invest in geographically
           specific private placement debt securities specifically designed to
           support underlying economic activities such as affordable housing,
           education, small business lending, and community development.


(2)        SIGNIFICANT ACCOUNTING POLICIES

           The following is a summary of significant accounting policies
           consistently followed by the Fund in the preparation of the financial
           statements. The policies are in conformity with accounting principles
           generally accepted in the United States of America which require
           management to make estimates and assumptions that affect amounts
           reported therein. Although actual results could differ from these
           estimates, any such differences are expected to be immaterial to the
           net assets of the Fund.

           (a)   VALUATION OF SECURITIES

                 Portfolio securities, the principal market for which is a
                 securities exchange will be valued at the closing sales price
                 on that exchange on the day of computation, or, if there have
                 been no sales during such day, at the bid quotations. If no
                 such bid prices are available, then the securities will be
                 valued in good faith at their respective fair market values
                 using methods determined by or under the supervision of the
                 Board of Directors of the Fund. Portfolio securities, the
                 principal market for which is not a securities exchange and for
                 which bid and ask prices are not available but for which the
                 Custodian can obtain a price from an independent pricing agent
                 for a comparable security without Community Reinvestment Act
                 characteristics shall be valued at the price obtained from the
                 independent pricing agent by the Custodian plus a markup of 1/2
                 of a point. Portfolio securities, the principal market for
                 which is not a securities exchange and for which the Custodian
                 cannot obtain a price from an independent pricing agent shall
                 be valued by the Custodian by using a pricing matrix designed
                 to maintain fair value of that security as provided by the
                 Adviser. All other assets and securities including securities
                 for which market quotations are not readily available are
                 valued at their fair value as determined in good faith under
                 the general supervision of the Board of Directors of the Fund.


                                  9                                  (Continued)
<PAGE>   23

                            ACCESS CAPITAL STRATEGIES
                         COMMUNITY INVESTMENT FUND, INC.

                          Notes to Financial Statements

                                  May 31, 2001



        (b)        REPURCHASE AGREEMENTS

                   It is the policy of the Fund to require the custodian bank to
                   take possession, to have legally segregated in the Federal
                   Reserve Book entry system all securities held as collateral
                   in support of the repurchase agreement investments.
                   Additionally, procedures have been established by the Fund to
                   monitor, on a daily basis, the market value of each
                   repurchase agreement's underlying securities to ensure the
                   existence of a proper level of collateral.

                   The Fund will only enter into repurchase agreements with
                   banks and other recognized financial institutions such as
                   broker/dealers which are deemed by the Fund's advisor to be
                   creditworthy pursuant to guidelines established by the
                   Directors. Risk may arise from potential inability of
                   counterparties to honor the terms of the repurchase
                   agreement. Accordingly, the fund could receive less than the
                   repurchase price on the sale of the collateral securities.

        (c)        REVERSE REPURCHASE AGREEMENTS

                   To obtain short-term financing, the Fund may enter into
                   reverse repurchase agreements with banks and other recognized
                   financial institutions such as broker/dealers which are
                   deemed by the Fund's advisor to be creditworthy pursuant to
                   the guidelines established by the Directors. Interest on the
                   value of the reverse repurchase agreements is based upon
                   competitive market rates at the time of issuance. At the time
                   the Fund enters into a reverse repurchase agreement, it will
                   establish and maintain a segregated account with the
                   custodian containing qualifying assets having a value not
                   less than the repurchase price, including accrued interest.
                   If the counterparty to the transaction is rendered insolvent,
                   the ultimate realization of the securities to be repurchased
                   by the Fund may be delayed or limited.

        (d)        DERIVATIVES

                   The Fund may use derivative instruments, including futures,
                   forwards, options, indexed securities and inverse securities
                   for hedging purposes only. Derivatives allow the Fund to
                   increase or decrease its risk exposure more quickly and
                   efficiently than other types of instruments.

        (e)        LEVERAGE

                   The Fund may borrow money from and issue debt securities to
                   banks, insurance companies, and other lenders to obtain
                   additional funds to invest in private placement debt
                   securities.

        (f)        SECURITY TRANSACTIONS AND INVESTMENT INCOME

                   Security transactions are recorded on trade date. Realized
                   gains and losses from security transactions are reported on
                   an identified-cost basis. Income and expenses are recorded
                   on the accrual basis. Premiums and discounts on
                   mortgage-backed securities are amortized and accreted into
                   interest income using the effective-yield method.


                                 10                                  (Continued)
<PAGE>   24


                            ACCESS CAPITAL STRATEGIES
                         COMMUNITY INVESTMENT FUND, INC.

                          Notes to Financial Statements

                                  May 31, 2001



                 For federal income tax purposes at May 31, 2001, the cost of
                 investments is $136,698,796 and the appreciation and
                 depreciation on investments and securities sold short are
                 $1,136,322 and $0, respectively.

           (g)   FEDERAL INCOME TAXES

                 No provision for federal income or excise taxes is required
                 since the Fund intends to continue to qualify as a regulated
                 investment company and distribute all of its taxable income to
                 its shareholders.

           (h)   RECLASSIFICATION OF CAPITAL ACCOUNTS

                 Distributions are determined in accordance with income tax
                 regulations which may differ from generally accepted accounting
                 principles. Accordingly, periodic reclassifications are made
                 within the Fund's capital accounts to reflect income and gains
                 available for distribution under income tax regulations. There
                 were no such reclassifications made during fiscal 2001.

           (i)    DISTRIBUTIONS TO SHAREHOLDERS

                 The Fund declares and distributes dividends quarterly from net
                 investment income and annually from net realized capital gains,
                 if any, after offsetting capital-loss carryovers.


(3)        SECURITIES SOLD SHORT

           The Fund maintains securities sold short that are shown as a
           liability in the accompanying statements of assets and liabilities.
           To settle this liability, the Fund would be required to purchase the
           previously shorted securities at the prevailing market price. These
           short sales may involve a level of risk in excess of the liability
           recognized in the accompanying statements of assets and liabilities.
           The extent of such risk cannot be quantified.


(4)        INVESTMENT MANAGEMENT AGREEMENT AND OTHER TRANSACTIONS WITH
           AFFILIATES

           Access Capital Strategies LLC ("Access") serves as the Fund's
           Investment Manager. Access is a registered investment adviser under
           the Investment Advisers Act 1940 ("Investment Advisers Act"). As of
           May 31, 2001, the Federal National Mortgage Association ("Fannie
           Mae") through its affiliate the FannieMae American Community Fund
           holds 32% equity interest in Access. At May 31, 2001, the Fund held
           $105,247,017 in Fannie Mae mortgage-backed securities representing
           86.2% of the Fund's net assets.


                                 11                                  (Continued)
<PAGE>   25


                            ACCESS CAPITAL STRATEGIES
                         COMMUNITY INVESTMENT FUND, INC.

                          Notes to Financial Statements

                                  May 31, 2001



        Access receives from the Fund an annual management fee, paid quarterly,
        of fifty basis points (0.50%) of the Fund's average monthly gross assets
        less accrued liabilities, other than indebtedness for borrowing. Under
        the terms of the management agreement, Access has agreed to pay all
        operating expenses of the Fund. In turn, Access charges the Fund a fee
        equal to the lesser of three basis points (0.03%) of average monthly net
        assets, paid quarterly, or cumulative administrative expenses incurred
        by Access less cumulative administrative expenses reimbursed by the
        Fund. As of March 1, 2001, Access entered into a sub-management
        agreement with Merrill Lynch Investment Managers, L.P. ("ML"), by which
        ML will assume Access and all fund expenses. For the period June 1, 2000
        to May 31, 2001, Access incurred $140,586 in administrative expenses and
        the Fund reimbursed Access $19,006 for such expenses. Since inception,
        Access has incurred $499,792 in administrative expenses, $36,578 of
        which has been reimbursed by the Fund. In the event the management
        agreement between Access and the Fund is terminated, the Fund will have
        no obligation to continue to pay Access for non-reimbursed
        administrative expenses.

        ML acts as investment sub-advisor to the Fund. ML is entitled to receive
        from Access, as compensation for its sub-advisory services to the Fund,
        an annual sub-management fee, paid quarterly, at an annual rate of 0.25%
        of the fund's average gross monthly assets, less accrued liabilities
        other than indebtedness for borrowings (or if greater, 50% of the
        management fee payable to the manager under the management agreement).

        Upon launch of the Fund, Access agreed to pay all organization and
        offering costs of the Fund. In turn, the Fund is charged two basis
        points (.02%) of the Fund's average monthly net assets, paid quarterly,
        to reimburse Access up to the amount of combined organizational and
        offering expenses. Since inception, the Fund incurred $78,508 in
        organizational expenses and the Fund reimbursed Access $12,671 and
        $6,869 for such expenses in 2001 and 2000, respectively. Since
        inception, Access has incurred $78,508 in organizational and offering
        costs, $24,385 of which has been reimbursed by the Fund. In the event
        the management agreement between Access and the Fund is terminated, the
        Fund will have no obligation to continue to pay Access for
        non-reimbursed organization and offering costs.

        Also, the Fund is charged three basis points (0.03%) of the Fund's
        monthly net assets for custody and fund accounting services.

        For certain issues purchased by the Fund, the issuer may pay a 100 basis
        point (1%) structuring fee to the Fund. In the event that the Fund
        receives a structuring fee from an issuer, Access charges the Fund an
        investment structuring fee equal to 100 basis points (1%). For the
        period from June 1, 2000 to May 31, 2001, the Fund received $0 in
        structuring fees from issuers and accordingly, the Fund paid Access $0
        in structuring fees.

        Access maintains a shareholder account for each investor in the Fund.
        Investors making a commitment to the Fund pay Access a one-time
        commitment fee of 25 basis points (0.25%) of the commitment. During the
        period from June 1, 2000 to May 31, 2001, Access received $177,508 in
        commitment fees gross of $131,250 payable to third parties.



                                 12                                  (Continued)
<PAGE>   26


                            ACCESS CAPITAL STRATEGIES
                         COMMUNITY INVESTMENT FUND, INC.

                          Notes to Financial Statements

                                  May 31, 2001



(5)        CAPITAL SHARE TRANSACTIONS

           The Fund has authorized 10,000 shares of $.01 par value common stock.
           At May 31, 2001, there were 1,309.45 shares issued and 1,225.32
           shares outstanding.

           Investors withdrawing from the Fund receive the then current net
           asset value and the total redemption proceeds are subject to 1%
           withdrawal fee. During the period from June 1, 2000 to May 31, 2001,
           no withdrawals were made. Access charges withdrawal fees if investors
           withdraw from the Fund within three years. After three years of
           investment, no withdrawal fees are charged.


(6)        CAPITAL LOSS CARRYFORWARD

           For federal income tax purposes, the Fund had capital loss carryovers
           at May 31, 2001 of $807,130 which, if not offset by subsequent
           capital gains, $16,310 will expire in 2007, $137,249 will expire in
           2008 and $653,571 will expire in 2009. It is unlikely that the Board
           of Directors will authorize distribution of any net realized capital
           gains until the available capital loss has been offset or expired.


(7)        SECURITIES TRANSACTIONS

           Cost of purchases and proceeds from sales and paydowns of investment
           securities (excluding short-term securities) were as follows for the
           year ended May 31, 2001:
<TABLE>
<CAPTION>

              COST OF PURCHASES           PROCEEDS FROM SALES          PROCEEDS FROM PAYDOWNS
              -----------------           -------------------          ----------------------

             <S>                         <C>                           <C>
             $   102,340,184             $          18,645,132         $            6,941,540
</TABLE>

           The Fund had the following reverse repurchase agreements outstanding
           at May 31, 2000:
<TABLE>
<CAPTION>

                REPURCHASE AMOUNT            COUNTERPARTY           INTEREST RATE      MATURITY DATE
                -----------------            ------------           -------------      -------------

               <S>                    <C>                                 <C>               <C>
               $     3,700,000        Credit Suisse First Boston           4.05%            6/13/01
                     4,500,000        Credit Suisse First Boston           4.05%            6/13/01
</TABLE>

           The average daily balance, weighted average interest rate and maximum
           amount outstanding under these agreements were as follows:
<TABLE>
<CAPTION>

                    AVERAGE DAILY                 WEIGHTED                MAXIMUM
                      BALANCE                 AVERAGE INTEREST             AMOUNT
                    OUTSTANDING                      RATE               OUTSTANDING(*)
                    -----------                      ----               --------------

                 <S>                                <C>                  <C>
                 $    6,500,000                      6.21%                14,800,000
</TABLE>

           (*) The maximum amount outstanding under reverse repurchase
agreements includes accrued interest.



                                       13
<PAGE>   27

Access Capital Strategies Community Investment Fund, Inc.


ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE

None during the fiscal year ended May 31, 2001.

The Fund has retained Deloitte & Touche LLP as the Fund's independent auditor
for the fiscal year ending May 31, 2002. The retention of Deloitte & Touche LLP
was unanimously approved by the Fund's Board of Directors. The Board's Audit
Committee, comprised of each Director of the Fund that is not an "interested"
Director, had unanimously recommended that the Board of Directors approve the
retention of Deloitte & Touch LLP.


Part III

ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT

The Fund's Board of Directors establishes and reviews policy for the management
of the Fund. A majority of the members of the Board of Directors, as required by
Section 56(a) of the 1940 Act, are disinterested. The Board meets no less
frequently than quarterly. The Board reviews and approves annually the contracts
between the Fund, Access, and any other affiliates of Access. Management is
responsible for all day-to-day business decisions regarding operations of the
Fund. Specifically, all decisions about buying and selling portfolio investments
are be Management's responsibility. The Board reviews and considers the
allocation of actual investments as compared to the allocation indicated by
investors' Designated Target Regions.

       At May 31, 2001, the Fund's Directors were:


<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------
Name, Age and Offices with the Fund     Principal Occupation During At Least Past Five Years and Public Directorships as
                                        of March 1, 2001
------------------------------------------------------------------------------------------------------------------------
<S>                                     <C>
Stephen B. Swensrud, 67                 Chairman of Fernwood Advisors (investment adviser) since 1996; Principal of
Director since 2001                     Fernwood Associates (financial consultant) since 1975; Director and Chairman,
                                        RPP Corporation, since 1999; Director, International Mobile Communications, Inc.
                                        since 1999.

                                        In addition, Mr. Swensrud is a director of 44 registered investment companies
                                        consisting of 91 portfolios advised by Merrill Lynch Investment Managers, L.P. or
                                        its affiliates.

------------------------------------------------------------------------------------------------------------------------
M. Colyer Crum, 68                      James R. Williston Professor of Investment Management Emeritus, Harvard
Director since 2001                     Business School since 1996; James R. Williston Professor of Investment
                                        Management, Harvard Business School, from 1971 to 1996; director of
                                        Cambridge Bancorp.

                                        In addition, Mr. Crum is a Director of 26 registered investment companies
                                        consisting of 51 portfolios advised by Merrill Lynch Investment Managers, L.P. or
                                        its affiliates.
------------------------------------------------------------------------------------------------------------------------

Terry K. Glenn(*), 60                   Executive Vice President of Merrill Lynch Investment Managers, L.P. and Fund
Director since 2001                     Asset Management, L.P. since 1983; Executive Vice President and Director of
                                        Princeton Services, Inc. since 1993; President of FAM Distributors, Inc. since 1986
                                        and Director thereof since 1991; President of Princeton Administrators, L.P. since
                                        1988.
------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                       13
<PAGE>   28
<TABLE>
------------------------------------------------------------------------------------------------------------------------
<S>                                     <C>
                                        In addition, Mr. Glenn is President of and a Director of substantially all investment
                                        companies advised by Merrill Lynch Investment Managers, L.P. or its affiliates.
------------------------------------------------------------------------------------------------------------------------

Peter J. Blampied, 58                   President, Corcoran Management Company, a real estate firm since 1998. Vice
Director since 1997                     Chairman Citizens Bank of Massachusetts (1993-94). Chairman, President & CEO
                                        Boston Five Bancorp (1989-1993).

                                        In addition Mr. Blampied is a director of A.W. Perry, Inv. (1998-present) and
                                        Environmental Power Corp. (1998-present) and a Trustee of Northeast Investors
                                        Trust (2000-present).

------------------------------------------------------------------------------------------------------------------------

Ronald A. Homer(*), 54                  CEO & Co-Managing Member, Access Capital Strategies LLC (the Manager) since
Director since 1997                     1997. President & CEO Boston Bank of Commerce (1983-1996).

                                        In addition Mr. Homer is a Director of Sallie Mae (GSE).
------------------------------------------------------------------------------------------------------------------------

Kevin J. Mulvaney, 52                   President, Strategic Advisors Group, a management-consulting firm since 1997.
Director since 1997                     Formerly President of DRI/McGraw Hill (1994-97). Executive Vice President Bank
                                        of Boston (prior to 1993).
------------------------------------------------------------------------------------------------------------------------
</TABLE>

  (*)An "interested" Director.

  Officers

            At May 31, 2001, the officers of the Fund were:
<TABLE>
<CAPTION>
    NAME                                   POSITION                       OTHER AFFILIATION
    ----                                   --------                       -----------------

<S>                                       <C>                            <C>
    Ronald A. Homer                        Chairman                       CEO & Co-Managing Member, Access Capital
                                                                          Strategies LLC

    David F. Sand                          CEO                            President & Co-Managing Member, Access
                                                                          Capital Strategies LLC

    David W. Clayton                       Secretary                      Vice President - Legal Advisory, Merrill Lynch
                                                                          Investment Managers, L.P.
</TABLE>


          The business backgrounds not shown above of the Fund's directors and
officers are as follows:

<TABLE>
<CAPTION>

  Name                   Employers (prior 5 years)              Industry                       Job Description
  ----                   -------------------------              --------                       ---------------

<S>                      <C>                                     <C>                         <C>
  David F. Sand           Access Capital Strategies LLC          Investment Adviser          President & Co-Managing Member (1997-
                                                                                                 present)
                          Access Capital Strategies Corp.        Investment Adviser          CIO & CEO (prior to 1997)
                          Commonwealth Capital Strategies        Investment Banking          President  (prior to 1995)
                          Commonwealth Capital Partners          Investment Banking          Managing Director  (prior to 1994)


  David W. Clayton        Milbank Tweed Hadley &                 Legal                       Attorney (1997-2000)
                           McCloy

                          Blake, Cassels & GraydonAccess         Legal                       Attorney (1995-1997)
</TABLE>

ITEM 11. EXECUTIVE COMPENSATION

The Fund pays no compensation to its officers who are "interested persons" (as
defined in the 1940 Act) of the Fund or to its directors who are officers,
directors or employees of Access, MLIM or any "affiliated person" (as defined in
the 1940 Act) of Access or MLIM. The Fund's disinterested directors received
$2,000 per meeting. There were 4 meetings during the reporting period. Such
directors also are reimbursed by the Fund for their expenses in attending
meetings of the Board or any committee thereof.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT




                                       14

<PAGE>   29


Beneficial Owners:

At May 31, 2001, Merrill Lynch Bank & Trust Company owned 20.4%, Merrill Lynch
Bank USA 20.4%, FleetBoston 14%, Amalgamated Bank 8.5% and JP Morgan Chase 8.2%
of the Fund's outstanding Shares.

Management:

Access Capital Strategies LLC, the manager of the Fund, owned 0.01 Fund shares
at May 31, 2001.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

The Fund may invest in securities guaranteed and issued by FannieMae. An
affiliate of FannieMae is an investor in Access Capital Strategies LLC, the
Fund's manager. The Fund Directors have adopted policies and procedures to
govern the direct purchase of FannieMae mortgage-backed securities by the Fund
from the FannieMae Customer Service Trading Desk.

At May 31, 2001, the Fund owned $105 million in FannieMae mortgage-backed
securities representing 86% of the Fund's total investments.

Part IV

ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS

(a)(1) The following financial statements are incorporated by reference from
 Item 8 hereof:

 Statements of Assets and Liabilities as of May 31, 2000 and 1999

 Statements of Operations for the fiscal year ended May 31, 2000 and the period
 June 23, 1998 (Commencement of Operations) to May 31, 1999

 Statements of Changes in Net Assets for the fiscal year ended May 31, 2000 and
 the period June 23, 1998 (Commencement of Operations) to May 31, 1999

 Financial Highlights for the fiscal year ended May 31, 2000 and the period June
 23, 1998 (Commencement of Operations) to May 31, 1999

 Notes to Financial Statements

Independent Auditors' Report

(a)(2) All other schedules for which provision is made in the applicable
accounting regulations of the Securities and Exchange Commission are omitted
because of the absence of conditions under which they are required or because
the required information is included in the financial statements and related
notes thereto.

(a)(3) The following exhibits are included as part of this Form 10-K.





                                       15

<PAGE>   30
                    PART II - OTHER INFORMATION


Item 1.    Legal Proceedings
           The Company is not involved in any pending legal proceedings.

Item 2.    Changes in Securities
           None

Item 3.    Defaults Upon Senior Securities
           None.

Item 4.    Submission of Matters to a Vote of Security Holders
           None.

Item 5.    Other Information
           None.

Item 6.    Exhibits and Reports
           The following Exhibits are filed as part of this Report:

     (a)   (1)       N/A
           (2)       None
           (3)  (i)  Articles of Incorporation are incorporated by reference
                     from an exhibit filed on Form 10-Q for the period
                     ended August 31, 1998
                (ii) By-Laws are incorporated by reference
                     from an exhibit filed on Form 10-Q for the period
                     ended August 31, 1998
           (4)       N/A
           (5)       N/A
           (8)       N/A
           (9)       None
           (10) (i)  Private Offering Memorandum is filed herewith
                (iii)(A)Management Agreement is incorporated by reference from
                     an exhibit filed on Form 10-Q for the period ended August
                     31, 1998
           (11)      N/A
           (12)      N/A
           (13)      N/A
           (15)      N/A
           (16)      None
           (17)      N/A
           (18)      None
           (19)      N/A
           (20)      N/A
           (21)      None
           (22)      None
           (23)      Consent of Independent Public Accountants is filed
                     herewith
           (24)      None
           (25)      N/A
           (26)      N/A
           (27)      N/A
     (b)  Reports on Form 8-K
                     None.



                                       16
<PAGE>   31
                                   SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Section 13 or 15(d) of report to be signed on
its behalf by the undersigned, thereunto duly authorized.



Date: 8/28/01                  Access Capital Strategies Community Investment
                               Fund, Inc.


                               */s/ DAVID.F. SAND
                                -----------------
                               David F. Sand, Chief Executive Officer and
                               Principal Financial Officer

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

Date: 8/28/01                  */s/ KEVIN J. MULVANEY
                               ----------------------
                               Kevin J. Mulvaney, Director


Date: 8/28/01                  */s/ PETER BLAMPIED
                               -------------------
                               Peter Blampied, Director


Date: 8/28/01                  */s/ RONALD A. HOMER
                               --------------------
                               Ronald A. Homer, Chairman of the Board


                               */s/ TERRY K. GLENN
Date: 8/28/01                  ---------------------------------------
                               Terry K. Glenn, Director



*Executed on behalf of the indicated person by the undersigned, pursuant to
power of attorney attached hereto.

By:  /s/ ALYSSA ALBERTELLI
     -----------------------
         Alyssa Albertelli
         Attorney-In-Fact


                                       17
<PAGE>   32
                                POWER OF ATTORNEY
                                -----------------


         David F. Sand, whose signature appears below, does hereby constitute
and appoint Martin E. Lybecker and Alyssa Albertelli, each individually, his
true and lawful attorneys and agents, with power of substitution or
resubstitution, to do any and all acts and things and to execute any and all
instruments which said attorneys and agents, each individually, may deem
necessary or advisable or which may be required to enable Access Capital
Strategies Community Investment Fund, Inc. ("the "Fund"), to comply with the
Investment Company Act of 1940, as amended, the Securities Act of 1933, as
amended, and the Securities Exchange Act of 1934, as amended, ("Acts"), and any
rules, regulations or requirements of the Securities and Exchange Commission in
respect thereof and any state filings, including specifically, but without
limiting the generality of the foregoing, the power and authority to sign in the
name and on behalf of the undersigned as a director and/or officer of the Fund
any and all such documents filed with the Securities and Exchange Commission
under said Acts, and any and all such documents filed with the state
authorities, and any other instruments or documents related thereto, and the
undersigned does hereby ratify and confirm all that said attorneys and agents,
or either of them, shall do or cause to be done by virtue thereof.



Dated: 7/10/98                           /s/ DAVID F. SAND
       -------                           -----------------






<PAGE>   33




                                POWER OF ATTORNEY
                                -----------------


         Ronald S. Homer, whose signature appears below, does hereby constitute
and appoint Martin E. Lybecker and Alyssa Albertelli, each individually, his
true and lawful attorneys and agents, with power of substitution or
resubstitution, to do any and all acts and things and to execute any and all
instruments which said attorneys and agents, each individually, may deem
necessary or advisable or which may be required to enable Access Capital
Strategies Community Investment Fund, Inc. ("the "Fund"), to comply with the
Investment Company Act of 1940, as amended, the Securities Act of 1933, as
amended, and the Securities Exchange Act of 1934, as amended, ("Acts"), and any
rules, regulations or requirements of the Securities and Exchange Commission in
respect thereof and any state filings, including specifically, but without
limiting the generality of the foregoing, the power and authority to sign in the
name and on behalf of the undersigned as a director and/or officer of the Fund
any and all such documents filed with the Securities and Exchange Commission
under said Acts, and any and all such documents filed with the state
authorities, and any other instruments or documents related thereto, and the
undersigned does hereby ratify and confirm all that said attorneys and agents,
or either of them, shall do or cause to be done by virtue thereof.



Dated: 7/10/98                           /s/ RONALD S. HOMER
       -------                           -------------------




<PAGE>   34




                                POWER OF ATTORNEY
                                -----------------


         Peter J. Blampied, whose signature appears below, does hereby
constitute and appoint Martin E. Lybecker and Alyssa Albertelli, each
individually, his true and lawful attorneys and agents, with power of
substitution or resubstitution, to do any and all acts and things and to execute
any and all instruments which said attorneys and agents, each individually, may
deem necessary or advisable or which may be required to enable Access Capital
Strategies Community Investment Fund, Inc. ("the "Fund"), to comply with the
Investment Company Act of 1940, as amended, the Securities Act of 1933, as
amended, and the Securities Exchange Act of 1934, as amended, ("Acts"), and any
rules, regulations or requirements of the Securities and Exchange Commission in
respect thereof and any state filings, including specifically, but without
limiting the generality of the foregoing, the power and authority to sign in the
name and on behalf of the undersigned as a director and/or officer of the Fund
any and all such documents filed with the Securities and Exchange Commission
under said Acts, and any and all such documents filed with the state
authorities, and any other instruments or documents related thereto, and the
undersigned does hereby ratify and confirm all that said attorneys and agents,
or either of them, shall do or cause to be done by virtue thereof.



Dated: 7/20/98                           /s/ PETER J. BLAMPIED
       -------                           ---------------------




<PAGE>   35




                                POWER OF ATTORNEY
                                -----------------


         Kevin J. Mulvaney, whose signature appears below, does hereby
constitute and appoint Martin E. Lybecker and Alyssa Albertelli, each
individually, his true and lawful attorneys and agents, with power of
substitution or resubstitution, to do any and all acts and things and to execute
any and all instruments which said attorneys and agents, each individually, may
deem necessary or advisable or which may be required to enable Access Capital
Strategies Community Investment Fund, Inc. ("the "Fund"), to comply with the
Investment Company Act of 1940, as amended, the Securities Act of 1933, as
amended, and the Securities Exchange Act of 1934, as amended, ("Acts"), and any
rules, regulations or requirements of the Securities and Exchange Commission in
respect thereof and any state filings, including specifically, but without
limiting the generality of the foregoing, the power and authority to sign in the
name and on behalf of the undersigned as a director and/or officer of the Fund
any and all such documents filed with the Securities and Exchange Commission
under said Acts, and any and all such documents filed with the state
authorities, and any other instruments or documents related thereto, and the
undersigned does hereby ratify and confirm all that said attorneys and agents,
or either of them, shall do or cause to be done by virtue thereof.



Dated: 7/17/98                           /s/ KEVIN J. MULVANEY
       -------                           ---------------------

<PAGE>   36
                                POWER OF ATTORNEY
                                -----------------


     Terry K. Glenn, whose signature appears below, does hereby constitute and
appoint Martin E. Lybecker and Alyssa Albertelli, each individually, his true
and lawful attorneys and agents, with power of substitution or resubstitution,
to do any and all acts and things and to execute any and all instruments which
said attorneys and agents, each individually, may deem necessary or advisable or
which may be required to enable Access Capital Strategies Community Investment
Fund, Inc. ("the "Fund"), to comply with the Investment Company Act of 1940, as
amended, the Securities Act of 1933, as amended, and the Securities Exchange Act
of 1934, as amended, ("Acts"), and any rules, regulations or requirements of the
Securities and Exchange Commission in respect thereof and any state filings,
including specifically, but without limiting the generality of the foregoing,
the power and authority to sign in the name and on behalf of the undersigned as
a director and/or officer of the Fund any and all such documents filed with the
Securities and Exchange Commission under said Acts, and any and all such
documents filed with the state authorities, and any other instruments or
documents related thereto, and the undersigned does hereby ratify and confirm
all that said attorneys and agents, or either of them, shall do or cause to be
done by virtue thereof.



Dated: August 28, 2001                               /s/ Terry K. Glenn
                                                     -------------------
                                                     Terry K. Glenn