##### 



UNITED STATES SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 
 FORM 10Q
 
 x
    
    Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of
1934
 For the quarterly period ended August 31, 2005
 Or
 o
    
    Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of
1934
 For the transition period from  to
 Commission File No. 81700807
 
 Access Capital Strategies Community Investment Fund, Inc.
 (Exact name of registrant as specified in its charter)
 
 Maryland
    
    043369393(State or other jurisdiction of
incorporation or organization)
    
    (I.R.S. Employer
Identification No.)124 Mt. Auburn Street, Suite 200N
    
    Cambridge, MA 02138(Address of principal executive offices)
    
    (Zip Code)
 6175765858
(Registrants telephone number, including area code)
 N/A
(Former name, former address and former fiscal year, if changed since last report)
 
 x  ̈
 x  ̈




---



##### 



Access Capital Strategies Community Investment Fund, Inc.
August 31, 2005 Form 10Q Quarterly Report
 TABLE OF CONTENTS
 PAGEPART I. FINANCIAL INFORMATIONItem 1.
    
    Condensed Financial StatementsCondensed Statements of Assets and Liabilities
August 31, 2005 (unaudited) and May 31, 2005
    
    
    3Condensed Statements of Operations (unaudited)
Three months ended August 31, 2005 and August 31, 2004
    
    
    4Condensed Statements of Changes in Net Assets (unaudited)
Three months ended August 31, 2005 and August 31, 2004
    
    
    5Condensed Statements of Cash Flows (unaudited)
Three months ended August 31, 2005 and August 31, 2004
    
    
    6Financial Highlights
Three months ended August 31, 2005 (unaudited) and August 31, 2004 (unaudited); and year ended
May 31, 2005 and May 31, 2004
    
    
    7Schedule of Investments August 31, 2005 (unaudited)
    
    
    8Notes to Condensed Financial Statements (unaudited)
    
    
    11Item 2.
    
    Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    12Item 3.
    
    Quantitative and Qualitative Disclosures about Market Risk
    
    
    20Item 4.
    
    Controls and Procedures
    
    
    21PART II. OTHER INFORMATION
    
    
    22Item 1.
    
    Legal Proceedings
    
    
    22Item 2.
    
    Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    22Item 3.
    
    Defaults Upon Senior Securities
    
    
    22Item 4.
    
    Submission of Matters to a Vote of Security Holders
    
    
    22Item 5.
    
    Other Information
    
    
    22Item 6.
    
    Exhibits and Reports
    
    
    22Signatures
    
    
    
    
    24
  2




---



##### 



Access Capital Strategies Community Investment Fund, Inc.
 
 PART I  FINANCIAL INFORMATION
 
 Item 1:
 Condensed Financial Statements
 
 CONDENSED STATEMENTS OF ASSETS AND LIABILITIES
 August 31, 2005(unaudited)
    
    
    May 31, 2005Assets:Investments in unaffiliated securities, at value*
    
    $
    460,891,746
    
    
    $
    457,698,912Cash
    
    
    
    
    
    
    1,094,568Receivables:Capital shares sold
    
    
    4,240,000
    
    
    
    1,895,289Interest
    
    
    2,062,930
    
    
    
    2,134,375Principal paydowns
    
    
    767,161
    
    
    
    260,794Prepaid expenses
    
    
    561
    
    
    
    561Total assets
    
    
    467,962,398
    
    
    
    463,084,499Liabilities:Payables:Reverse repurchase agreements (including
accrued interest of $130,415 and $83,779,
respectively)
    
    
    63,223,415
    
    
    
    68,596,779Securities purchased
    
    
    4,712,415
    
    
    
    4,337,013Dividends to shareholders
    
    
    1,192,243
    
    
    
    1,488,313Custodian bank
    
    
    390,281
    
    
    
    Investment advisor
    
    
    149,436
    
    
    
    141,417Variation margin
    
    
    187,501
    
    
    
    132,813Other affiliates
    
    
    7,055
    
    
    
    3,318Accrued expenses
    
    
    82,853
    
    
    
    85,906Total liabilities
    
    
    69,945,199
    
    
    
    74,785,559Net Assets:Net Assets
    
    $
    398,017,199
    
    
    $
    388,298,940Net Assets Consist of:Paid-in capital
    
    $
    406,616,512
    
    
    $
    394,186,630Accumulated distributions in excess of investment
income  net
    
    
    (1,310,503
    )
    
    
    (1,310,503
    )Accumulated
realized capital losses  net
    
    
    (10,451,363
    )
    
    
    (10,407,517
    )Unrealized
appreciation  net
    
    
    3,162,553
    
    
    
    5,830,330Total
accumulated losses  net
    
    
    (8,599,313
    )
    
    
    (5,887,690
    )Net Assets
    
    $
    398,017,199
    
    
    $
    388,298,940Net Asset Value Per Share
    
    $
    9.75
    
    
    $
    9.82*Identified cost
    
    $
    457,306,996
    
    
    $
    451,642,590Shares issued and outstanding, $.0000001 par value,
100,000,000 shares authorized
    
    
    40,822,641
    
    
    
    39,552,378
  3




---



##### 



Access Capital Strategies Community Investment Fund, Inc.
 
 CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED)
 Three Months EndedAugust 31,
    
    
    August 31,2005
    
    
    2004Investment
    
    Interest
    
    $
    5,885,969
    
    
    $
    5,340,698Income:Expenses:
    
    Management fees
    
    
    571,275
    
    
    
    511,664Interest expense
    
    
    541,770
    
    
    
    193,893Professional fees
    
    
    40,559
    
    
    
    30,745Accounting services
    
    
    33,359
    
    
    
    36,913Custodian fees
    
    
    13,921
    
    
    
    14,370Pricing fees
    
    
    13,482
    
    
    
    14,183Directors' fees and expenses
    
    
    5,621
    
    
    
    8,586Transfer agent fees
    
    
    4,684
    
    
    
    5,724Other
    
    
    7,191
    
    
    
    7,808Total expenses before reimbursement
    
    
    1,231,862
    
    
    
    823,886Reimbursement of expenses
    
    
    42,408
    
    
    
    137,503Total expenses after reimbursement
    
    
    1,274,270
    
    
    
    961,389Investment income-net
    
    
    4,611,699
    
    
    
    4,379,309Realized &
    
    Realized gain (loss) on:Unrealized
    

Investments-net
    
    
    (26,393
    )
    
    
    8,250Gain (Loss)
    
    Financial futures contracts-net
    
    
    (17,453
    )
    
    
    (1,757,491
    )-Net:
    
    Change in unrealizedappreciation/depreciation on:Investments-net
    
    
    (2,471,572
    )
    
    
    11,069,581Financial futures contracts-net
    
    
    (196,205
    )
    
    
    (374,844
    )Total realized and unrealized gain (loss)-net
    
    
    (2,711,623
    )
    
    
    8,945,496Net Increase in Net Assets Resulting fromOperations
    
    $
    1,900,076
    
    
    $
    13,324,805
  4




---



##### 



Access Capital Strategies Community Investment Fund, Inc.
 
 CONDENSED STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED)
 Three Months EndedAugust 31,
    
    
    August 31,Increase (Decrease) in Net Assets:
    
    2005
    
    
    2004Operations:
    
    Investment income-net
    
    $
    4,611,699
    
    
    $
    4,379,309Realized loss-net
    
    
    (43,846
    )
    
    
    (1,749,241
    )Change in unrealized appreciation/depreciation-net
    
    
    (2,667,777
    )
    
    
    10,694,737Net increase in net assets resulting from operations
    
    
    1,900,076
    
    
    
    13,324,805Dividends to
    
    Dividends to shareholders from investment income-net
    
    
    (4,611,699
    )
    
    
    (4,379,309
    )Shareholders:Capital Share
    
    Net proceeds from sale of shares
    
    
    13,350,000
    
    
    
    14,350,000Transactions:
    
    Value of shares issued to shareholders in reinvestment ofdividends
    
    
    1,027,410
    
    
    
    949,479Total issued
    
    
    14,377,410
    
    
    
    15,299,479Cost of shares redeemed
    
    
    (1,947,528
    )
    
    
    (4,995,318
    )Net increase in net assets derived from capital share transactions
    
    
    12,429,882
    
    
    
    10,304,161Net Assets:
    
    Total increase in net assets
    
    
    9,718,259
    
    
    
    19,249,657Beginning of period
    
    
    388,298,940
    
    
    
    346,567,200End of period*
    
    $
    398,017,199
    
    
    $
    365,816,857*Accumulated distributions in excess of investment income-net
    
    $
    (1,310,503
    )
    
    $
    (1,310,503
    )
  5




---



##### 



Access Capital Strategies Community Investment Fund, Inc.
 CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)
 Three Months EndedAugust 31,
    
    
    August 31,2005
    
    
    2004Cash Used
    
    Net increase in net assets resulting from operations
    
    $
    1,900,076
    
    
    $
    13,324,805for Operating
    
    Adjustments to reconcile net increase in net assetsActivities:
    
    resulting from operations to net
cash provided by operating activities:Decrease in receivables
    
    
    71,445
    
    
    
    69,008Increase (decrease) in other liabilities
    
    
    110,027
    
    
    
    (628,533
    )Realized and unrealized loss (gain)-net
    
    
    2,711,623
    
    
    
    (8,945,496
    )Realized and unrealized loss on financial futures contracts-net
    
    
    (213,658
    )
    
    
    (2,132,335
    )Amortization of premium and discount
    
    
    9,546
    
    
    
    (10,601
    )Proceeds from paydowns and sales of long-term investments
    
    
    29,402,713
    
    
    
    24,731,529Purchases of long-term investments
    
    
    (35,234,023
    )
    
    
    (53,414,945
    )Net cash used for operating activities
    
    
    (1,242,251
    )
    
    
    (27,006,568
    )Cash Provided
    
    Cash receipts from issuance of common stock
    
    
    11,005,289
    
    
    
    18,835,251by Financing
    
    Cash receipts (payments) from reverse repurchase agreements-net
    
    
    (5,420,000
    )
    
    
    16,800,000Activities:
    
    Cash payments on capital shares redeemed
    
    
    (1,947,528
    )
    
    
    (4,995,318
    )Dividends paid to shareholders
    
    
    (3,880,359
    )
    
    
    (3,633,365
    )Increase in custodian bank payable
    
    
    390,281
    
    
    
    Net cash provided by financing activities
    
    
    147,683
    
    
    
    27,006,568Cash:
    
    Net decrease in cash
    
    
    (1,094,568
    )
    
    
    Cash at beginning of period
    
    
    1,094,568
    
    
    
    Cash at end of period

    
    $
    
    
    
    $
    Cash Flow
    
    Cash paid for interest
    
    $
    495,134
    
    
    $
    171,216Information:Non-Cash
    
    Capital shares issued in
reinvestment of dividends to shareholders
    
    $
    1,027,410
    
    
    $
    949,479FinancingActivities:
  6




---



##### 



Access Capital Strategies Community Investment Fund, Inc.
 
 FINANCIAL HIGHLIGHTS
 
 Three Months EndedAugust 31,
    
    
    August 31,2005
    
    
    2004
    
    
    Year Ended(unaudited)
    
    
    (unaudited)
    
    
    May 31, 2005
    
    
    May 31, 2004Per Share
    
    Net asset value, beginning of period
    
    $
    9.82
    
    
    $
    9.62
    
    
    $
    9.62
    
    
    $
    10.21Operating
    
    Investment income-net+
    
    
    .12
    
    
    
    .12
    
    
    
    .48
    
    
    
    .54Performance:
    
    Realized and unrealized gain (loss)-net
    
    
    (.07
    )
    
    
    .24
    
    
    
    .20
    
    
    
    (.59
    )Total from investment operations
    
    
    .05
    
    
    
    .36
    
    
    
    .68
    
    
    
    (.05
    )Less dividends from investment income-net
    
    
    (.12
    )
    
    
    (.12
    )
    
    
    (.48
    )
    
    
    (.54
    )Net asset value, end of period
    
    $
    9.75
    
    
    $
    9.86
    
    
    $
    9.82
    
    
    $
    9.62Total
    
    Based on net asset value per share
    
    
    .46
    %#
    
    
    3.77
    %#
    
    
    7.14
    %
    
    
    (.56
    %)InvestmentReturn:**Ratios to
    
    Expenses, net of reimbursement andAverage Net
    
    excluding interest expense andAssets:
    
    investment structuring fees
    
    
    .74
    %*
    
    
    .87
    %*
    
    
    .85
    %
    
    
    .87
    %Expenses, excluding interest expense
    
    
    .70
    %*
    
    
    .71
    %*
    
    
    .74
    %
    
    
    .78
    %Expenses
    
    
    1.25
    %*
    
    
    1.09
    %*
    
    
    1.13
    %
    
    
    1.04
    %Investment income-net
    
    
    4.69
    %*
    
    
    4.95
    %*
    
    
    4.87
    %
    
    
    5.43
    %Ratios to
    
    Expenses, net of reimbursement andAverage Net
    
    excluding interest expense andAssets, Plus
    
    investment structuring fees
    
    
    .64
    %*
    
    
    .75
    %*
    
    
    .72
    %
    
    
    .71
    %Average
    
    Expenses, excluding interest expense
    
    
    .60
    %*
    
    
    .62
    %*
    
    
    .63
    %
    
    
    .64
    %Borrowings:++
    
    Expenses
    
    
    1.08
    %*
    
    
    .94
    %*
    
    
    .96
    %
    
    
    .85
    %Investment income-net
    
    
    4.04
    %*
    
    
    4.28
    %*
    
    
    4.13
    %
    
    
    4.44
    %Supplemental
    
    Net assets, end of period (in thousands)
    
    $
    398,017
    
    
    $
    365,817
    
    
    $
    388,299
    
    
    $
    346,567Data:
 
 *
    
    Annualized.**
    
    Total investment returns exclude the effects of sales charges.#
    
    Aggregate total investment return.+
    
    Based on average shares outstanding.++
    
    This ratio is calculated based upon the average net assets plus average borrowings.
    
    Effective June 1, 2003, the six basis point and two basis point expense reimbursement caps described below were
replaced with and superceded by a 25 basis point expense reimbursement cap. To the extent that the Funds operating
expenses (exclusive of management fees and interest expense) in a given fiscal year are less than .25% of the Funds
monthly average net assets, the Fund will repay the Funds investment manager (Access) and sub-investment manager
(MLIM) for operating expenses previously borne or reimbursed by Access and MLIM (provided that in no circumstance
will the Fund pay or reimburse more than 25 basis points of the Funds monthly average assets for operating expenses.
Prior to June 1, 2003, the expense reimbursement cap was six basis points (0.06%). During the fiscal year ended May
31, 2003, the Fund also continued to be charged two basis points (0.02%) of the Funds total assets, including assets
purchased with borrowed funds, to reimburse Access for unreimbursed expenses relating to the Fund paid by Access prior
to March 2001.  7




---



##### 



Access Capital Strategies Community Investment Fund, Inc.
 SCHEDULE OF INVESTMENTS
AUGUST 31, 2005 (unaudited)
 Face Amount
    
    
    Market ValueMORTGAGE-BACKED SECURITIES (112.8%):Federal National Mortgage Association (FNMA) (75.6%):15 Year Fixed Rate Single Family Mortgage-Backed Securities4.50%, 6/1/18 - 3/1/19 (c)
    
    $
    13,340,735
    
    
    $
    13,312,7285.00%, 12/1/17 - 2/1/19
    
    
    7,620,014
    
    
    
    7,718,7745.50%, 3/1/16 - 7/1/19
    
    
    1,402,165
    
    
    
    1,440,2087.00%, 1/1/15
    
    
    74,232
    
    
    
    78,12730 Year Fixed Rate Single Family Mortgage-Backed Securities4.50%, 5/1/33 - 9/1/34 (c)
    
    
    16,275,138
    
    
    
    15,896,5595.00%, 7/1/32 - 8/1/35
    
    
    109,686,747
    
    
    
    109,717,4375.50%, 9/1/32 - 9/15/35 (b) (c)
    
    
    91,238,874
    
    
    
    92,695,0366.00%, 7/1/29 - 10/1/34 (c)
    
    
    22,358,584
    
    
    
    23,021,9116.50%, 3/1/31 - 8/1/32
    
    
    14,069,080
    
    
    
    14,650,2227.00%, 6/1/29 - 3/1/31
    
    
    770,470
    
    
    
    812,8937.25%, 12/1/29
    
    
    29,441
    
    
    
    31,2137.50%, 12/1/29 - 1/1/31
    
    
    556,592
    
    
    
    593,2898.00%, 2/1/30-4/1/30
    
    
    369,173
    
    
    
    396,838Total Single Family Mortgage-Backed Securities
    
    
    
    
    
    
    280,365,235Multi Family
Mortgage-Backed Securities4.66%, 10/1/13
    
    
    976,606
    
    
    
    995,3004.78%, 5/1/14
    
    
    491,522
    
    
    
    501,1654.89%, 6/1/15
    
    
    997,923
    
    
    
    1,024,1484.93%, 10/1/12
    
    
    975,966
    
    
    
    1,003,2895.22%, 6/1/20
    
    
    2,492,899
    
    
    
    2,608,2385.23%, 4/1/21
    
    
    1,945,841
    
    
    
    1,996,9945.37%, 11/1/21
    
    
    5,017,765
    
    
    
    5,382,1965.41%, 2/1/21 (c)
    
    
    1,051,731
    
    
    
    1,130,1635.51%, 11/1/21
    
    
    760,200
    
    
    
    811,5676.38%, 5/1/11
    
    
    1,193,282
    
    
    
    1,307,5316.50%, 5/1/17
    
    
    1,262,399
    
    
    
    1,399,8376.70%, 6/1/19
    
    
    650,568
    
    
    
    736,6547.58%, 5/1/18
    
    
    605,259
    
    
    
    737,0177.97%, 9/1/17
    
    
    717,794
    
    
    
    872,078Total Multi Family Mortgage-Backed Securities
    
    
    
    
    
    
    20,506,177Total Federal National Mortgage Association Securities
    
    
    
    
    
    
    300,871,412Federal Home Loan Mortgage Corporation (31.1%):15 Year Fixed Rate Single Family Mortgage-Backed Securities4.50%, 1/1/19 - 11/1/19
    
    
    1,733,483
    
    
    
    1,729,6175.00%, 11/1/18 - 11/1/19
    
    
    2,398,682
    
    
    
    2,430,8905.50%, 9/1/19 - 11/1/19
    
    
    1,643,566
    
    
    
    1,689,00530 Year Fixed Rate Single Family Mortgage-Backed Securities4.50%, 8/1/33 - 9/1/33
    
    
    1,997,652
    
    
    
    1,948,5035.00%, 6/1/33 - 8/1/35
    
    
    31,932,260
    
    
    
    31,920,6825.50%, 11/1/32 - 8/1/35
    
    
    55,550,203
    
    
    
    56,472,8416.00%, 3/1/31 - 12/1/34(c)
    
    
    19,824,667
    
    
    
    20,415,4256.50%, 3/1/31 - 8/1/32
    
    
    5,264,083
    
    
    
    5,481,4157.00%, 11/1/29 - 3/1/31
    
    
    784,548
    
    
    
    825,7087.50%, 12/1/29 - 2/1/30
    
    
    682,487
    
    
    
    728,886Total Federal Home Loan Mortgage Corporation
Single Family Mortgage-Backed Securities
    
    
    
    
    
    
    123,642,972
 8




---



##### 



Face Amount
    
    
    Market ValueGNMA Pool (1.2%):30 Year Fixed Rate Single Family Mortgage-Backed Securities6.00%, 12/15/31
    
    $
    757,253
    
    
    $
    785,3326.50%, 4/15/32-4/20/32
    
    
    347,240
    
    
    
    363,7197.00%, 4/15/32
    
    
    174,837
    
    
    
    184,830Multi Family Mortgage-Backed Securities5.125%, 3/15/34
    
    
    624,979
    
    
    
    637,9055.75%, 9/15/23
    
    
    730,011
    
    
    
    766,4866.25%, 9/15/32
    
    
    521,201
    
    
    
    567,9148.25%, 12/15/32
    
    
    1,440,817
    
    
    
    1,574,654Total GNMA Pool Mortgage-Backed Securities
    
    
    
    
    
    
    4,880,840Community Reinvestment Revenue Notes (0.7%)4.21%, 9/1/19
    
    
    3,000,000
    
    
    
    2,925,000Total Community Reinvestment Revenue Notes
    
    
    
    
    
    
    2,925,000Small Business Administration (d) (4.2%):3.55%, 4/25/28 (a)
    
    
    1,432,157
    
    
    
    1,420,7853.55%, 3/25/29
    
    
    2,903,624
    
    
    
    2,880,7163.60%, 3/25/28
    
    
    1,274,330
    
    
    
    1,266,7663.60%, 9/25/29
    
    
    1,623,882
    
    
    
    1,614,4573.60%, 11/25/29
    
    
    2,165,608
    
    
    
    2,153,0723.60%, 4/25/30
    
    
    1,759,896
    
    
    
    1,749,7723.625%, 6/25/18 (a)
    
    
    633,397
    
    
    
    629,5903.65%, 10/25/10
    
    
    608,973
    
    
    
    604,8123.65%, 3/25/14
    
    
    2,208,933
    
    
    
    2,195,6896.375%, 5/25/16
    
    
    1,347,079
    
    
    
    1,459,8976.875%, 1/25/09
    
    
    630,061
    
    
    
    647,485Total Small Business Administration Securities
    
    
    
    
    
    
    16,623,041Total Mortgage-Backed Securities
    
    
    
    
    
    
    448,943,265FLOATING RATE NOTES (d) (2.5%):Massachusetts Housing Investment Corporation, due 4/1/35, initial coupon 6.67% (e)
    
    
    9,375,000
    
    
    
    10,069,500Total Floating Rate Notes
    
    
    
    
    
    
    10,069,500MUNICIPAL BONDS (0.5%):Guam Power Authority Revenue Bonds, Series A, 5% due 10/01/2024
    
    
    140,000
    
    
    
    146,936Utah Housing Corporation Single Family Mortgage Revenue Bonds, 3.36% due 7/1/2014
    
    
    735,000
    
    
    
    736,088Utah Housing Corporation Single Family Mortgage Revenue Bonds, 3.48% due 7/1/2014
    
    
    970,000
    
    
    
    995,957Total Municipal Bonds
    
    
    
    
    
    
    1,878,981Total investments (cost  $457,306,996*) - 115.8%
    
    
    
    
    
    
    460,891,746Liabilities in excess of other assets  (15.8%)
    
    
    
    
    
    
    (62,874,547
    )Net assets
 100.0%
    
    
    
    
    
    $
    398,017,199
 9




---



##### 



*
    
    The cost and unrealized appreciation (depreciation) of investments, as of August 31, 2005,
as computed for federal income tax purposes, were as follows:
 Aggregate cost
    
    $
    457,306,996Gross unrealized appreciation
    
    $
    5,486,200Gross unrealized depreciation
    
    
    (1,901,450
    )Net unrealized appreciation
    
    $
    3,584,750
 
 (a)
    
    All or a portion held as collateral in connection with open financial futures contracts.(b)
    
    Represents or includes a to-be-announced (TBA) transaction. The Fund has committed to
purchasing securities for which all specific information is not available at this time.(c)
    
    All or a portion held as collateral in connection with open reverse repurchase agreements.(d)
    
    Floating rate note.(e)
    
    Restricted securities as to resale, representing 2.5% of net assets, were as follows: AcquisitionIssue
    
    Date
    
    Cost
    
    ValueMassachusetts Housing Investment Corporation,
due 4/1/35, initial coupon 6.67%
    
    3/29/2005
    
    $
    9,375,000
    
    
    $
    10,069,500
  Number of
    
    
    
    Expiration
    
    
    Face
    
    
    UnrealizedContracts
    
    Issue
    
    Date
    
    
    Value
    
    
    Depreciation200
    
    U.S. Five-Year Treasury Bonds
    
    December 2005
    
    $
    21,500,814
    
    
    $
    (174,186
    )200
    
    U.S. Ten-Year Treasury Bonds
    
    September 2005
    
    $
    22,336,364
    
    
    
    (248,011
    )Total Unrealized Depreciation
    
    
    
    
    
    
    
    
    
    $
    (422,197
    )
  10




---



##### 



Access Capital Strategies Community Investment Fund, Inc.
 NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
     11




---



##### 



Item 2:
 Managements Discussion and Analysis of Financial Condition and
Results of Operations
 This quarterly report contains certain statements that may be considered forward-looking
statements within the meaning of Section 27A of the Securities Act of 1933, as amended and
Section 21E of the Securities Exchange Act of 1934, as amended. The Funds actual results
could differ materially from those projected in the forward-looking statements as a result
of, among other factors, changes in interest rates, fluctuations in assets under management
and other sources of fee income, and changes in assumptions used in making such
forward-looking statements. 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.
 Overview
    Compliance
   12




---



##### 



Fund Operations
 Investment Activity
 Purchases
  Sales
  Borrowings
     13




---



##### 



Net Assets and Fund Holdings at August 31, 2005
    Investment Income
  Management Fees & Expenses
    14




---



##### 



Yield
   Realized Gain/Loss
  Dividends Paid
   June 2005
    
    $
    .038327July 2005
    
    $
    .038598August 2005
    
    $
    .038185
  June 2004
    
    $
    .040113July 2004
    
    $
    .041624August 2004
    
    $
    .039350
  15




---



##### 



Total Return
   Fund Designated Target Regions at August 31, 2005
  DTRs*
    
    AMOUNTCalifornia
    
    $
    60,668,939Colorado
    
    
    1,187,171Connecticut
    
    
    13,108,526Florida
    
    
    500,000Georgia
    
    
    500,000Hawaii
    
    
    154,232Illinois
    
    
    3,670,270Indiana
    
    
    1,065,334Iowa
    
    
    633,540Louisiana
    
    
    5,000,000Maine
    
    
    112,260Maryland
    
    
    650,000Massachusetts
    
    
    92,342,780Mississippi
    
    
    501,569Nebraska
    
    
    10,000,000New York
    
    
    18,055,728New Jersey
    
    
    94,171,613New Mexico
    
    
    1,144,142North Carolina
    
    
    1,250,000Ohio
    
    
    12,570,034Oregon
    
    
    2,500,000Pennsylvania
    
    
    35,205,138Rhode Island
    
    
    250,000South Dakota
    
    
    5,655,359Tennessee
    
    
    1,740,810Texas
    
    
    21,408,020Utah
    
    
    12,695,228Vermont
    
    
    1,374,041Virginia
    
    
    923,924Washington
    
    
    2,000,000Wisconsin
    
    
    544,142TOTAL
    
    $
    401,582,801
 
 *
    
    All investors are listed by headquarters location 16




---



##### 



Fund Impact per the Community Reinvestment Act
   Whole LoansAlabama
    
    
    28Arizona
    
    
    116California
    
    
    415Colorado
    
    
    34Connecticut
    
    
    109Delaware
    
    
    31Florida
    
    
    126Georgia
    
    
    18Guam
    
    
    2Idaho
    
    
    4Illinois
    
    
    100Indiana
    
    
    6Iowa
    
    
    30Kansas
    
    
    2Kentucky
    
    
    16Louisiana
    
    
    17Maine
    
    
    2Maryland
    
    
    6Massachusetts
    
    
    984Michigan
    
    
    23Mississippi
    
    
    22Minnesota
    
    
    7Missouri
    
    
    5Montana
    
    
    2Nebraska
    
    
    70Nevada
    
    
    42New Hampshire
    
    
    57New Jersey
    
    
    1,030New Mexico
    
    
    71New York
    
    
    244North Carolina
    
    
    36Ohio
    
    
    60Oregon
    
    
    72Pennsylvania
    
    
    654Rhode Island
    
    
    19South Carolina
    
    
    14South Dakota
    
    
    104Tennessee
    
    
    22Texas
    
    
    468Utah
    
    
    365Vermont
    
    
    14Virginia
    
    
    19Washington
    
    
    52Washington, D.C.
    
    
    3Wisconsin
    
    
    8TOTAL
    
    
    5,529
 17




---



##### 



Multi-Family UnitsAlabama
    
    
    52California
    
    
    160Delaware
    
    
    120Louisiana
    
    
    230Massachusetts
    
    
    201Mississippi
    
    
    47New Jersey
    
    
    205New York
    
    
    222South Dakota
    
    
    48Texas
    
    
    294Utah
    
    
    172TOTAL
    
    
    1,751Affordable HousingSub Total 7,280Community Based Non-ProfitRhode Island
    
    
    12Massachusetts
    
    
    1Connecticut
    
    
    1TOTAL
    
    
    14SBA LoansCA
    
    
    8FL
    
    
    2KY
    
    
    1MA
    
    
    7MD
    
    
    1MN
    
    
    2NJ
    
    
    13NY
    
    
    2UT
    
    
    65TOTAL
    
    
    101Economic Development LoansCA
    
    
    4MA
    
    
    5TX
    
    
    1TOTAL
    
    
    10
 18




---



##### 



Liquidity Discussion
 Sale and Redemption of Fund Shares
     19




---



##### 



Item 3:
 Quantitative and Qualitative Disclosures About Market Risk
  Credit Risk
 Liquidity Risk
 Interest Rate Risk
    Leverage Risk
 Derivatives Risk
  20




---



##### 



Item 4:
 Controls and Procedures
  21




---



##### 



PART II  OTHER INFORMATION
 
   
   
   
   
   
   (a)
    
    
    (1
    )
    
    
    
    N/A(2
    )
    
    
    
    None(3
    )
    
    (i)
    
    Articles of Incorporation are incorporated by reference
to the Funds Form 10-Q for the period ended August 31,
1998.(ii)
    
    By-Laws are incorporated by reference to the FundsForm 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 dated February 18, 1998,
revised as June 1, 2003, is incorporated by reference to the
Funds Form 10-K filed on August 29, 2004.(iii)(A)
    
    Management Agreement is incorporated by reference to
the Funds Form 10-Q for the period ended August 31, 1998.(B)
    
    Amendment to the Management Agreement dated as of May
23, 2003 is incorporated by reference to the Funds Form
10-K filed on August 29, 2004.Amendment to the Management Agreement dated as of June 16,
2005 is incorporated by reference to the Funds Form 10-K
filed on August 13, 2005.(11
    )
    
    
    
    N/A(12
    )
    
    
    
    N/A(13
    )
    
    
    
    N/A(15
    )
    
    
    
    N/A(16
    )
    
    
    
    None(17
    )
    
    
    
    N/A(18
    )
    
    
    
    N/A
 22




---



##### 



(19
    )
    
    
    
    N/A(20
    )
    
    
    
    N/A(21
    )
    
    
    
    None(22
    )
    
    
    
    N/A(23
    )
    
    
    
    N/A(24
    )
    
    
    
    Powers of Attorney incorporated by reference to the
Funds Form 10-K for the fiscal year ended May 31, 2002
filed on August 29, 2002.(25
    )
    
    
    
    N/A(26
    )
    
    
    
    N/A(27
    )
    
    
    
    Reserved(28
    )
    
    
    
    Reserved(29
    )
    
    
    
    Reserved(30
    )
    
    
    
    Reserved(31
    )
    
    
    
    Certification required by the Sarbanes-Oxley Act of 2002(32
    )
    
    
    
    Certification required by the Sarbanes-Oxley Act of 2002(b) Reports on Form 8-KNone.
 23




---



##### 



Signatures
  Access Capital Strategies Community Investment Fund, Inc.Date: October 7, 2005
    
    /s/ Ronald A. HomerRonald A. Homer, ChairmanDate: October 7, 2005
    
    /s/ Kevin J. MulvaneyKevin J. Mulvaney, DirectorDate: October 7, 2005
    
    /s/ Peter BlampiedPeter Blampied, DirectorDate: October 7, 2005
    
    /s/ W. Carl KesterW. Carl Kester, DirectorDate: October 7, 2005
    
    /s/ Andrew J. DonohueAndrew J. Donohue, DirectorDate: October 7, 2005
    
    /s/ Stephen B. SwensrudStephen B. Swensrud, DirectorDate: October 7, 2005
    
    /s/ David F. SandDavid F. Sand, Chief Executive Officer,Principal Accounting Officer, Principal Financial Officer
 *  By:
    
    /s/ Martin E. LybeckerMartin E. Lybecker
Attorney-in-fact
 24