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<SEC-DOCUMENT>0000950137-01-505340.txt : 20020413
<SEC-HEADER>0000950137-01-505340.hdr.sgml : 20020413
ACCESSION NUMBER:		0000950137-01-505340
CONFORMED SUBMISSION TYPE:	N-30D
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20011031
FILED AS OF DATE:		20011228

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			VAN KAMPEN TRUST FOR INVESTMENT GRADE NEW YORK MUNICIPALS
		CENTRAL INDEX KEY:			0000883265
		STANDARD INDUSTRIAL CLASSIFICATION:	 []
		IRS NUMBER:				366981632
		STATE OF INCORPORATION:			MA
		FISCAL YEAR END:			1031

	FILING VALUES:
		FORM TYPE:		N-30D
		SEC ACT:		1940 Act
		SEC FILE NUMBER:	811-06537
		FILM NUMBER:		1824993

	BUSINESS ADDRESS:	
		STREET 1:		ONE PARKVIEW PLZ
		STREET 2:		VAN KAMPEN INVESTMENTS INC
		CITY:			OAKBROOK TERRACE
		STATE:			IL
		ZIP:			60181
		BUSINESS PHONE:		6306846774

	MAIL ADDRESS:	
		STREET 1:		VAN KAMPEN INVESTMENTS INC
		STREET 2:		ONE PARKVIEW PLAZA
		CITY:			OAKBROOK TERRACE
		STATE:			IL
		ZIP:			60181

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	VAN KAMPEN AMERICAN CAPITAL TRUST FOR INVT GRADE NEW YORK MU
		DATE OF NAME CHANGE:	19960102

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	VAN KAMPEN MERRITT TRUST FOR INVESTMENT GRADE NEW YORK MUNIC
		DATE OF NAME CHANGE:	19920929
</SEC-HEADER>
<DOCUMENT>
<TYPE>N-30D
<SEQUENCE>1
<FILENAME>c66259n-30d.txt
<DESCRIPTION>ANNUAL REPORT
<TEXT>
<PAGE>

<Table>
<S>                                           <C>
                            Table of Contents

                                     OVERVIEW
                       LETTER TO SHAREHOLDERS       1
                            ECONOMIC SNAPSHOT       2

                          PERFORMANCE SUMMARY
                            RETURN HIGHLIGHTS       4

                        PORTFOLIO AT A GLANCE
                               CREDIT QUALITY       6
                TWELVE-MONTH DIVIDEND HISTORY       6
                             TOP FIVE SECTORS       7
             NET ASSET VALUE AND MARKET PRICE       7
              Q&A WITH YOUR PORTFOLIO MANAGER       8
                            GLOSSARY OF TERMS      12

                               BY THE NUMBERS
                     YOUR TRUST'S INVESTMENTS      13
                         FINANCIAL STATEMENTS      17
                NOTES TO FINANCIAL STATEMENTS      22
               REPORT OF INDEPENDENT AUDITORS      26
                   DIVIDEND REINVESTMENT PLAN      27



    BOARD OF TRUSTEES AND IMPORTANT ADDRESSES      29
                 RESULTS OF SHAREHOLDER VOTES      30
</Table>

With four generations of investment management experience, we understand market
declines--and that opportunities may arise at any time.
              NOT FDIC INSURED  MAY LOSE VALUE  NO BANK GUARANTEE
<PAGE>

 OVERVIEW

LETTER TO SHAREHOLDERS
November 20, 2001

Dear Shareholder,

Recent events, market fluctuations and a worldwide economic slowdown affected
everyone in 2001. We at Van Kampen understand how disconcerting these tragic
events are, that's why we continue to stress the importance of long-term
investing--a prudent strategy for dealing with uncertain markets.

To help you put recent events--and your trust's performance--into perspective,
we've prepared this informative report. It examines how your trust's portfolio
manager invested the trust's assets and how those investments performed. Inside
you'll find an interview with the trust manager, a complete list of the trust's
holdings at the end of the reporting period, charts and graphs summarizing
interest rate and inflation trends, and other information which will help you
better understand your investment.

                  With nearly four generations of investment management
                  experience, we understand market declines--and that new
                  opportunities may arise at any time. So, as you craft an
                  investment strategy that can minimize the impact of future
                  downturns, consider these time-tested investing principles:

- - DIVERSIFY--Owning a portfolio that includes a variety of stock and
  fixed-income funds may moderate your investment risk and improve your
  long-term portfolio performance.

- - BEFORE YOU INVEST, SEEK FINANCIAL ADVICE--Your financial advisor can help you
  develop a personalized investment strategy based on your age, family status
  and goals. He or she can help assess your situation by reviewing your
  investment time frame, tolerance for risk, personal savings, and investments
  and retirement assets. While no portfolio is immune to volatility, your
  advisor can help you structure a portfolio designed to address your long-term
  financial goals.

Thank you for your continued trust in Van Kampen.

Sincerely,

/s/ RICHARD F. POWERS, III
Richard F. Powers, III
President and CEO
Van Kampen Investment Advisory Corp.

                                        1
<PAGE>

ECONOMIC SNAPSHOT

THE ECONOMY
BY THE END OF OCTOBER 2001, THE EFFECTS OF THE SEPTEMBER TERRORIST ATTACKS
CONTINUED TO REVERBERATE IN AN ALREADY SLUGGISH U.S. ECONOMY. GROSS DOMESTIC
PRODUCT (GDP), THE PRIMARY MEASURE OF ECONOMIC GROWTH, FELL AT AN ANNUAL RATE OF
0.4 PERCENT.

BUSINESS ACTIVITY CONTINUED ITS YEAR-LONG DECLINE, SPIRALING DOWNWARD IN THE
WEEKS FOLLOWING THE TRAGEDY. THROUGHOUT THE REPORTING PERIOD THE ECONOMY
TEETERED ON THE EDGE OF RECESSION, PROMPTING BUSINESSES TO SLASH INVENTORIES AND
CAPITAL EXPENDITURES. CONSUMER CONFIDENCE, WHICH HAD SLIPPED IN RECENT MONTHS,
PLUMMETED IMMEDIATELY AFTER THE TERRORIST ATTACKS. CONFIDENCE LEVELS STABILIZED
BY THE END OF THE PERIOD, BUT CONSUMER RESOLVE WAS FURTHER CHALLENGED BY MASS
LAYOFFS, RISING UNEMPLOYMENT AND AN APPARENT BIOTERROR THREAT.

AGAINST THIS BACKDROP, CONSUMER SPENDING--THE ENGINE DRIVING TWO-THIRDS OF U.S.
ECONOMIC GROWTH--REMAINED WEAK, BUT SURPRISINGLY RESILIENT.
STRONGER-THAN-EXPECTED CONSUMPTION OF SERVICES AND DURABLE GOODS, SUCH AS COMMON
HOUSEHOLD APPLIANCES, PREVENTED A GREATER DROP IN GDP. REGARDLESS, MANY ECONOMIC
ANALYSTS WONDERED HOW LONG CONSUMERS COULD CONTINUE TO SPEND. UNEMPLOYMENT
LEVELS, WHICH WERE ON THE RISE THROUGHOUT THE REPORTING PERIOD, SURGED TO 5.4
PERCENT BY THE END OF OCTOBER 2001.

ALTHOUGH FACED WITH INCOMPLETE DATA, MANY ECONOMIC ANALYSTS SUGGESTED THE UNITED
STATES COULD NO LONGER AVOID A RECESSION, COMMONLY DEFINED AS TWO CONSECUTIVE
QUARTERS OF NEGATIVE GROWTH. ANALYSTS WERE UNABLE TO PREDICT THE DURATION OF THE
DOWNTURN, BUT MANY SUGGESTED THE GOVERNMENT'S ECONOMIC STIMULUS PACKAGE AND
RECENT INTEREST-RATE CUTS COULD PROVIDE THE SPARK NEEDED FOR A POSSIBLE
RECOVERY.

INTEREST RATES AND INFLATION
CONSISTENT WITH ITS RECENT ACTIONS, THE FEDERAL RESERVE BOARD (THE FED) AGAIN
ATTEMPTED TO STIMULATE THE FALTERING ECONOMY BY SLASHING INTEREST RATES. THE
FED'S 0.50 PERCENT CUT ON OCTOBER 2--THE NINTH RATE-CUT TO OCCUR BETWEEN JANUARY
1 AND OCTOBER 31, 2001--BROUGHT THE FEDERAL FUNDS RATE TO 2.5 PERCENT. (NOTE: ON
NOVEMBER 6, 2001, THE FED CUT INTEREST RATES BY AN ADDITIONAL 0.50 PERCENT. THIS
WAS THE TENTH RATE-CUT IN 2001.)

FINALLY, INFLATION REMAINED MODEST DURING THE REPORTING PERIOD. THE CONSUMER
PRICE INDEX, A COMMON MEASURE OF THE INFLATION RATE, ROSE 2.1 PERCENT IN THE 12
MONTHS ENDED OCTOBER 31.

                                        2
<PAGE>

U.S. GROSS DOMESTIC PRODUCT

SEASONALLY ADJUSTED ANNUALIZED RATES

(September 30, 1999--September 30, 2001)
[BAR GRAPH]

<Table>
<Caption>
                                                                      U.S. GROSS DOMESTIC PRODUCT
                                                                      ---------------------------
<S>                                                           <C>
Sep 99                                                                            5.70
Dec 99                                                                            8.30
Mar 00                                                                            4.80
Jun 00                                                                            5.70
Sep 00                                                                            1.30
Dec 00                                                                            1.90
Mar 01                                                                            1.30
Jun 01                                                                            0.30
Sep 01                                                                           -0.40
</Table>

Source: Bureau of Economic Analysis

INTEREST RATES AND INFLATION

(October 31, 1999--October 31, 2001)
[LINE GRAPH]

<Table>
<Caption>
                                                                       INTEREST RATES                       INFLATION
                                                                       --------------                       ---------
<S>                                                           <C>                                <C>
Oct 99                                                                      5.25                               2.60
                                                                            5.50                               2.60
                                                                            5.50                               2.70
Jan 00                                                                      5.50                               2.70
                                                                            5.75                               3.20
                                                                            6.00                               3.80
Apr 00                                                                      6.00                               3.10
                                                                            6.50                               3.20
                                                                            6.50                               3.70
Jul 00                                                                      6.50                               3.70
                                                                            6.50                               3.40
                                                                            6.50                               3.50
Oct 00                                                                      6.50                               3.40
                                                                            6.50                               3.40
                                                                            6.50                               3.40
Jan 01                                                                      5.50                               3.70
                                                                            5.50                               3.50
                                                                            5.00                               2.90
Apr 01                                                                      4.50                               3.30
                                                                            4.00                               3.60
                                                                            3.75                               3.20
Jul 01                                                                      3.75                               2.70
                                                                            3.50                               2.70
                                                                            3.00                               2.60
Oct 01                                                                      2.50                               2.10
</Table>

Interest rates are represented by the closing midline federal funds target rate
on the last day of each month. Inflation is indicated by the annual percentage
change of the Consumer Price Index for all urban consumers at the end of each
month.

Source: Bloomberg

                                        3
<PAGE>

       PERFORMANCE SUMMARY

RETURN HIGHLIGHTS

(as of October 31, 2001)

- ------------------------------
NYSE Ticker Symbol - VTN
- ------------------------------

<Table>
<Caption>
                                                  MARKET(1)    NAV(2)
- --------------------------------------------------------------------------
<S>                                               <C>         <C>      <C>
One-year total return                               13.68%      12.87%
- --------------------------------------------------------------------------
Five-year average annual total return                8.76%       7.24%
- --------------------------------------------------------------------------
Life-of-Trust average annual total return            7.36%       7.83%
- --------------------------------------------------------------------------
Commencement date                                              3/27/92
- --------------------------------------------------------------------------

Distribution rate as a % of closing common
share price(3)                                                   6.07%
- --------------------------------------------------------------------------
Taxable-equivalent distribution rate as a % of
closing common share price(4)                                   10.71%
- --------------------------------------------------------------------------
Preferred share rate(5)                                         2.000%
- --------------------------------------------------------------------------
Net asset value                                                 $17.50
- --------------------------------------------------------------------------
Closing common share price                                    $16.2200
- --------------------------------------------------------------------------
One-year high common share price (08/27/01)                   $16.8800
- --------------------------------------------------------------------------
One-year low common share price (12/13/00)                    $14.7500
- --------------------------------------------------------------------------
</Table>

                                        4
<PAGE>

(1) Total return based on market price assumes an investment at the market price
    at the beginning of the period indicated, reinvestment of all distributions
    for the period in accordance with the Trust's dividend reinvestment plan,
    and sale of all shares at the closing common share price at the end of the
    period indicated.

(2) Total return based on net asset value (NAV) assumes an investment at the
    beginning of the period indicated, reinvestment of all distributions for the
    period, and sale of all shares at the end of the period, all at NAV.

(3) Distribution rate represents the monthly annualized distributions of the
    Trust at the end of the period and not the earnings of the Trust.

(4) The taxable-equivalent distribution rate is calculated assuming a 43.3%
    combined federal and state income tax bracket, which takes into
    consideration the deductibility of individual state taxes paid.

(5) See "Notes to Financial Statements" footnote #4, for more information
    concerning Preferred Share reset periods.

    A portion of the interest income may be taxable for those investors subject
    to the federal alternative minimum tax (AMT).

    Past performance is no guarantee of future results. Investment return, share
    price and net asset value will fluctuate and Trust shares, when sold, may be
    worth more or less than their original cost. An investment in the Trust is
    subject to investment risks, and you could lose money on your investment in
    the Trust. As a result of recent market activity, current performance may
    vary from the figures shown. For more up-to-date information, please visit
    vankampen.com or speak with your financial advisor.

                                        5
<PAGE>

               PORTFOLIO AT A GLANCE

CREDIT QUALITY

(as a percentage of long-term investments)


<Table>
<Caption>
As of October 31, 2001
<S>                    <C>     <C>
- - AAA/Aaa............  41.4%   [PIE CHART]
- - AA/Aa..............  43.7%
- - A/A................   9.0%
- - BBB/Baa............   5.9%
<Caption>
As of October 31, 2000
<S>                    <C>     <C>
- - AAA/Aaa............  38.9%   [PIE CHART]
- - AA/Aa..............  24.5%
- - A/A................  29.2%
- - BBB/Baa............   5.4%
- - Non-Rated..........   2.0%
</Table>

Based upon the credit quality ratings as issued by Standard & Poor's Credit
Market Services/Moody's Investor Services, respectively. Subject to change
daily.

TWELVE-MONTH DIVIDEND HISTORY

(for the period ended October 31, 2001, for common shares)

[BAR GRAPH]

<Table>
<Caption>
                                                                         DIVIDENDS                        CAPITAL GAINS
                                                                         ---------                        -------------
<S>                                                           <C>                                <C>
11/00                                                                      0.086
12/00                                                                       0.08                               0.25
1/01                                                                        0.08
2/01                                                                        0.08
3/01                                                                        0.08
4/01                                                                        0.08
5/01                                                                        0.08
6/01                                                                       0.082
7/01                                                                       0.082
8/01                                                                       0.082
9/01                                                                       0.082
10/01                                                                      0.082
</Table>

The dividend history represents dividends that were paid on the trust and is no
guarantee of the trust's future dividends.

                                        6
<PAGE>

TOP FIVE SECTORS

(as a percentage of long-term investments)
[INVESTMENT PERFORMANCE GRAPH]

<Table>
<Caption>
                                                                      OCTOBER 31, 2001                   OCTOBER 31, 2000
                                                                      ----------------                   ----------------
<S>                                                           <C>                                <C>
General Purpose                                                            19.70                              21.90
Public Building                                                            12.30                              10.20
Higher Education                                                            9.50                              10.70
Transportation                                                              9.30                               8.70
Other Care                                                                  8.80                               7.00
</Table>

Subject to change daily.

NET ASSET VALUE AND MARKET PRICE

(based upon quarter-end values--March 1992 through October 2001)
[INVESTMENT PERFORMANCE GRAPH]

<Table>
<Caption>
                                                                      NET ASSET VALUE                      MARKET PRICE
                                                                      ---------------                      ------------
<S>                                                           <C>                                <C>
3/92                                                                      14.9100                            14.9100
                                                                          15.2800                            15.5000
                                                                          15.4300                            15.1250
                                                                          15.5000                            15.1250
3/93                                                                      16.4400                            16.2500
                                                                          16.9900                            16.3750
                                                                          17.6900                            16.7500
                                                                          17.5800                            16.5000
3/94                                                                      15.8500                            15.0000
                                                                          15.5800                            14.7500
                                                                          15.3400                            14.0000
                                                                          14.4900                            12.7500
3/95                                                                      15.7500                            14.2500
                                                                          16.0300                            14.5000
                                                                          16.2200                            14.1250
                                                                          17.1000                            14.5000
3/96                                                                      16.2900                            14.2500
                                                                          16.1000                            14.6250
                                                                          16.4500                            14.6250
                                                                          16.7100                            14.6250
3/97                                                                      16.3600                            14.3750
                                                                          16.6900                            15.3750
                                                                          17.2900                            15.6250
                                                                          17.5600                            16.8125
3/98                                                                      17.5300                            16.6250
                                                                          17.5400                            16.6875
                                                                          17.9500                            17.5000
                                                                          17.7500                            17.6875
3/99                                                                      17.6000                            17.3125
                                                                          16.9300                            16.3125
                                                                          16.6000                            15.8125
                                                                          16.1800                            14.1250
3/00                                                                      16.3700                            14.6250
                                                                          16.3300                            15.3750
                                                                          16.4900                            16.0000
                                                                          17.1400                            15.7500
3/01                                                                      17.3000                            16.6500
                                                                          17.1300                            16.4500
                                                                          17.3300                            15.9500
10/01                                                                     17.5000                            16.2200
</Table>

The solid line above represents the trust's net asset value (NAV), which
indicates overall changes in value among the trust's underlying securities. The
trust's market price is represented by the dashed line, which indicates the
price the market is willing to pay for shares of the trust at a given time.
Market price is influenced by a range of factors, including supply and demand
and market conditions.

                                        7
<PAGE>

                                                                         [PHOTO]

Q&A WITH YOUR PORTFOLIO MANAGER

WE RECENTLY SPOKE WITH THE MANAGEMENT TEAM OF THE VAN KAMPEN TRUST FOR
INVESTMENT GRADE NEW YORK MUNICIPALS ABOUT THE KEY EVENTS AND ECONOMIC
FORCES THAT SHAPED THE MARKETS AND INFLUENCED THE TRUST'S RETURN DURING
THE PAST 12 MONTHS. DENNIS PIETRZAK, PORTFOLIO MANAGER, HAS MANAGED THE TRUST
SINCE 1995 AND HAS WORKED IN THE INVESTMENT INDUSTRY SINCE 1968. THE FOLLOWING
DISCUSSION REFLECTS HIS VIEWS ON THE TRUST'S PERFORMANCE DURING THE 12-MONTH
PERIOD ENDED OCTOBER 31, 2001.

The investment teams that manage the Van Kampen trusts extend their condolences
to those touched by the tragic events of September 11, 2001. Please know that
our thoughts are with all those who have been affected.

Q   HOW WOULD YOU CHARACTERIZE
    THE MARKET ENVIRONMENT IN WHICH THE TRUST OPERATED IN THE LAST 12 MONTHS,
    AND HOW DID THE TRUST PERFORM IN THAT ENVIRONMENT?

A   The market environment of the
past year has been dominated by the effects of the faltering U.S. economy. It
seems hard to imagine that one year ago both investors and the Federal Reserve
Board (the "Fed") were worried about inflation. Those worries disappeared when
growth slowed drastically in the second half of 2000, with gross domestic
product (GDP) falling to an anemic 1.9 percent in the fourth quarter of 2000.
The slowing economy had predictable effects, including widespread layoffs and
deteriorating conditions for business investment.

    The severity and suddenness of the slowdown led the Fed to shift its
attention rapidly from fighting inflation to avoiding recession. Acting between
scheduled meetings, the Fed cut interest rates on January 3, 2001 by 50 basis
points. This was only the first of nine cuts over the period ending October 31,
2001 for a total of 400 basis points or four percentage points. These moves did
not seem to have an appreciable effect on the economy, however, which continued
to slow going into September.

    The tragic events of September 11 made a bad economic situation worse.
Business activity came to a standstill nationwide and across industries, and the
travel sector was especially hard hit. Employment, which had been weak to begin
with, fell sharply as companies announced layoffs as part of a general move to
cut costs to address a markedly weaker future. For the third quarter of 2001,
GDP fell by 0.4 percent, its largest decline since the recession of the early
1990s. Most analysts are predicting an even steeper drop in the fourth quarter.

    Uncertainty surrounding the slowing economy led many investors to

                                        8
<PAGE>

seek out the relative stability of bonds. This preference for potential
stability produced large cash inflows for all types of bond trusts. While this
money was initially put to work in higher-rated issues in consideration of the
weakness in the economy, by April spreads in lower-grade credits also started to
compress as more money flowed into the bond markets.

    These cash inflows joined with Fed policy to drive interest rates lower.
Rates fell across the yield curve, with the most dramatic declines happening on
the short end of the yield curve, which is the most responsive to changes in
monetary policy. This shift steepened the curve significantly as short- and
intermediate-term paper rallied strongly.

    The general decline in interest rates led municipalities to increase their
issuance of debt to take advantage of lower financing costs. For the year ended
October 31, overall issuance nationwide was up 36 percent from the year earlier.
Slowing economic conditions also led investors to pay more attention to credit
quality, with the result that issuance of insured paper was up 56 percent
nationwide over the same period.

    For much of the period, the New York market enjoyed strong performance
because of its favorable balance of supply and demand. On the supply side, the
state legislature's continued inability to come up with a budget effectively
halted most issuance. At the same time, demand continued to be strong,
especially from New York investors looking to benefit from state bonds' double
tax-free status (New York City residents are triple tax-free).

    The state's picture became much less positive in the wake of the events of
September 11. The state's economy is dependent largely on the economy of New
York City, which was already facing strains because of the slide in the
financial markets. Those strains worsened considerably in the last two months of
the period.

    For the 12 months ended October 31, 2001, the trust produced a total return
of 13.68 percent based on market price. This reflects an increase in market
price from $15.375 per share on October 31, 2000, to $16.22 per share on October
31, 2001. Of course, past performance is no guarantee of future results. As a
result of recent market activity, current performance may vary from the figures
shown. For more up-to-date information, please visit vankampen.com or speak with
your financial advisor.

    By comparison, the Lehman Brothers New York Municipal Bond Index posted a
total return of 10.22 percent for the same period. The Lehman Brothers New York
Municipal Bond Index is an unmanaged, broad-based statistical composite of
municipal bonds. Index returns do not include any sales charges or fees that
would be paid by an investor purchasing the securities it represents. Such costs
would lower performance. It is not possible to invest directly in an index. For
additional performance results, please refer to the chart and footnotes on page
4.

                                        9
<PAGE>

Q   HOW DID THESE FACTORS AFFECT THE
    WAY YOU MANAGED THE PORTFOLIO?

A   Much of our attention over the
period was focused on fine-tuning the structure of the trust's portfolio. Many
of the positions in the portfolio were seasoned bonds that were issued in
previous years when interest rates were higher. Not surprisingly, the issuers
moved to take advantage of lower interest rates by calling their debt in order
to issue new bonds at lower market rates. The trust also held a number of
prerefunded issues. While it would have been possible to hold these bonds to
term, we chose instead to actively manage that portion of the portfolio by
selling out of the positions when the market presented attractive opportunities.

    We replaced these bonds with yield and structural characteristics that
helped maintain the trust's income stream. Many of these bonds were intermediate
securities in the 15-year range. These securities offered the potential double
benefit of strong income and moderate price volatility. We also selectively
added longer duration coupon bonds when their profiles met our investment
objectives.

    We also continued to make relative value trades to position the portfolio to
benefit from shifts in the market. Some of the trust's higher education holdings
benefited from price appreciation over the period, and we sold these issues when
they reached their price targets. We put those assets back to work in securities
that we thought more likely to produce strong performance going forward. For
example, we purchased a bond in the water and sewer sector when our analysis
showed that it was an attractively structured deal that, in our opinion, offered
good relative value.

    The portfolio remained well diversified over the period, with its top three
sectors accounting for only 41.5 percent of long-term investments. The
portfolio's sector distribution was also stable over the period, with the same
top three--general purpose, public buildings and higher education--at the
beginning as at the end.

    The most dramatic change in the portfolio had nothing to do with recent
purchases. We have long believed that the New York economy was fundamentally
strong, and as a result have bought credits that we felt were optimally
structured to benefit from that strength. Over the period, a significant portion
of the trust's portfolio benefited from the state's economic strength and as a
result were upgraded. These upgrades helped dramatically lift the trust's
overall credit profile, with roughly one-fifth of the portfolio moving up to an
AA rating.

Q   WHAT IS YOUR OUTLOOK FOR THE
    MUNICIPAL MARKET?

A   Now that the economy has moved
measurably closer to recession, our focus has turned to the reversal that has
historically followed every such decline. It is anticipated by many that a
recovery may take place at some point next year, though it's impossible to
predict just when that will happen. In the interim, interest rates are likely to
remain at or near their current low levels. This may bode well for the municipal
market, as we believe many

                                        10
<PAGE>

states will move to take advantage of low interest rates by issuing new debt.
Even in those cases where states opt out of new debt, there is likely to be
sufficient volume of refundings as long as rates stay low.

    Equity markets are not likely to recover quickly from the double blows of a
slowing economy and an uncertain global future in the wake of the tragic events
of September 11. We believe the ongoing volatility in the equity markets has
raised the profile of bonds in general as a viable asset allocation for many
investors. We expect investors may continue to look on bonds favorably as long
as the equity markets continue to be challenging.

    New York faces a difficult future in the aftermath of September 11. As
mentioned previously, the state's economy is tied to the fortunes of New York
City, which has been hit hard by falling financial markets and tourism revenue.
The weakening economy has also undercut tax revenues, and the economy doesn't
appear likely to improve in the very near future. It's simply too early to tell
how these factors will play out, and we will be watching developments closely
for any further indications about the direction of the state's economy.

                                        11
<PAGE>

GLOSSARY OF TERMS

A HELPFUL GUIDE TO SOME OF THE COMMON TERMS YOU'RE LIKELY TO SEE IN THIS REPORT
AND OTHER FINANCIAL PUBLICATIONS.

CREDIT RATING: An evaluation of a bond issuer's credit history and capability of
repaying debt obligations. Standard & Poor's Ratings Group and Moody's Investors
Service are two companies that assign credit ratings. Standard & Poor's ratings
range from a high of AAA to a low of D, while Moody's ratings range from a high
of Aaa to a low of C.

FEDERAL FUNDS RATE: The interest rate charged by one financial institution
lending federal funds to another. The Federal Reserve Board adjusts the federal
funds rate to affect the direction of interest rates.

FEDERAL RESERVE BOARD (THE FED): The governing body of the Federal Reserve
System, which is the central bank of the United States. Its policy-making
committee, called the Federal Open Market Committee, meets at least eight times
a year to establish monetary policy and monitor the economic pulse of the United
States.

GROSS DOMESTIC PRODUCT (GDP): The total market value of all finished goods and
services produced in a country in a given year.

INSURED BOND: A bond insured against default by the bond insurer. If the issuer
defaults, the insurance company will take over payments of interest and
principal when due. Once a bond is insured, it typically carries the credit
rating of the issuer. Most issuers are rated AAA. Municipal bond insurance
applies to specific securities held in the portfolio. It does not protect the
shareholder against changes in the value of trust shares.

MUNICIPAL BOND: A debt security issued by a state, municipality, or other state
or local government entity to finance capital expenditures of public projects,
such as the construction of highways, public works, or school buildings.
Interest on public-purpose municipal bonds is exempt from federal income taxes
and, in some states, from state and local income taxes.

NET ASSET VALUE (NAV): The value of a trust share, calculated by deducting a
trust's liabilities from the total assets applicable to common shareholders in
its portfolio and dividing this amount by the number of common shares
outstanding.

YIELD CURVE: The pattern that results from viewing the yields of U.S. Treasury
securities maturing in 1, 5, 10, and 30 years. When grouped together and
graphed, a pattern of increasing yield is often reflected as the time to
maturity extends. This pattern creates an upward sloping "curve." A "flat" yield
curve represents little difference between short- and long-term interest rates,
while a "negative" yield curve represents decreasing yields as the time to
maturity extends.

                                        12
<PAGE>

                                               BY THE NUMBERS

YOUR TRUST'S INVESTMENTS

October 31, 2001
THE FOLLOWING PAGES DETAIL YOUR TRUST'S PORTFOLIO OF INVESTMENTS AT THE END OF
THE REPORTING PERIOD.

<Table>
<Caption>
PAR
AMOUNT                                                                         MARKET
(000)      DESCRIPTION                                  COUPON   MATURITY      VALUE
<C>        <S>                                          <C>      <C>        <C>
           MUNICIPAL BONDS  98.9%
           NEW YORK  92.1%
$ 1,000    Amherst, NY Indl Dev Agy Civic Fac Rev UBF
           Fac Student Hsg Ser B (AMBAC Insd).......... 5.750%   08/01/30   $  1,079,410
  3,000    Cohoes, NY Indl Dev Agy Indl Dev Rev Norlite
           Corp Proj Ser B (Prerefunded @ 05/01/02).... 6.750    05/01/09      3,126,480
  1,000    Erie Cnty, NY Pub Impt Ser C (AMBAC Insd)... 5.500    07/01/29      1,045,210
  1,075    Groton, NY Cmnty Hlthcare Ctr Inc Hlthcare
           Fac Rev Groton Cmnty Ser A (FHA Gtd)........ 7.450    07/15/21      1,225,919
  5,000    Long Island Pwr Auth NY Elec Sys Rev Cap
           Apprec (FSA Insd)...........................   *      06/01/19      2,060,750
  3,000    Long Island Pwr Auth NY Elec Sys Rev Gen Ser
           A (MBIA Insd)............................... 5.500    12/01/29      3,052,680
  2,295    Metropolitan Trans Auth NY Svc Contract
           Commuter Fac Ser O.......................... 5.750    07/01/07      2,568,862
  2,000    Nassau Cnty, NY Interim Fin Auth Sales Tax
           Secd Ser A.................................. 5.750    11/15/15      2,208,160
  2,500    Nassau Cnty, NY Interim Fin Auth Sales Tax
           Secd Ser A-1 (AMBAC Insd)................... 5.375    11/15/15      2,695,000
  1,000    New York City Hsg Dev Corp Multi-Family Hsg
           Rev Ser A................................... 5.850    11/01/20      1,046,380
  1,500    New York City Indl Dev Agy Airl JFK I LLC
           Proj A...................................... 5.500    07/01/28      1,351,155
  1,000    New York City Indl Dev Agy Pkg Royal
           Charter--NY Presbyterian (FSA Insd)......... 5.250    12/15/11      1,101,850
  3,200    New York City Muni Wtr Fin Auth Wtr & Swr
           Sys Rev Ser A (FGIC Insd)................... 4.750    06/15/31      3,031,968
  3,900    New York City Muni Wtr Fin Auth Wtr & Swr
           Sys Rev Ser B (FSA Insd).................... 5.250    06/15/29      3,953,079
  1,325    New York City Muni Wtr Fin Ser B............ 6.000    06/15/33      1,547,653
  2,175    New York City Muni Wtr Fin Ser B
           (Prerefunded @ 06/15/10).................... 6.000    06/15/33      2,586,466
  2,000    New York City Ser A......................... 7.000    08/01/04      2,207,580
  3,290    New York City Ser B (Prerefunded @ 10/01/02)
           (Var Rate Cpn).............................. 6.600    10/01/16      3,475,326
     10    New York City Ser D......................... 7.500    02/01/16         10,268
</Table>

See Notes to Financial Statements

                                        13
<PAGE>

YOUR TRUST'S INVESTMENTS

October 31, 2001

<Table>
<Caption>
PAR
AMOUNT                                                                         MARKET
(000)      DESCRIPTION                                  COUPON   MATURITY      VALUE
<C>        <S>                                          <C>      <C>        <C>
           NEW YORK (CONTINUED)
$ 5,000    New York City Ser H......................... 5.000%   03/15/29   $  4,851,000
  1,250    New York City Ser K......................... 5.625    08/01/13      1,357,175
  1,675    New York City Transitional Fin Auth Rev
           Future Tax Secd Ser B (FGIC Insd)........... 4.750    11/01/23      1,616,258
  1,250    New York City Transitional Fin Auth Rev
           Future Tax Secd Ser C....................... 5.000    05/01/26      1,236,937
  2,500    New York City Transitional Fin Auth Rev
           Future Tax Secd Ser C....................... 5.000    05/01/29      2,461,425
  1,000    New York St Dorm Auth Rev City Univ Sys Cons
           Third Gen 1 (FSA Insd)...................... 5.500    07/01/29      1,045,120
  1,500    New York St Dorm Auth Rev Court Fac Lease
           Ser A....................................... 5.375    05/15/16      1,540,845
  2,500    New York St Dorm Auth Rev Grace Manor
           Hlthcare Fac................................ 6.150    07/01/18      2,712,100
  1,250    New York St Dorm Auth Rev Hosp NY &
           Presbyterian (AMBAC Insd)................... 4.750    08/01/27      1,169,900
  2,340    New York St Dorm Auth Rev Mental Hlth Svc
           Fac Impt Ser D (FSA Insd)................... 5.750    08/15/12      2,641,696
  4,375    New York St Dorm Auth Rev Mtg KMH Homes Inc
           (FHA Gtd)................................... 6.950    08/01/31      4,474,050
  1,835    New York St Dorm Auth Rev NY Pub Lib Ser A
           (Escrowed to Maturity) (MBIA Insd)..........   *      07/01/02      1,809,567
  1,910    New York St Dorm Auth Rev NY Pub Lib Ser A
           (Escrowed to Maturity) (MBIA Insd)..........   *      07/01/03      1,836,599
  1,000    New York St Dorm Auth Rev St Univ Ed Fac
           1989 Res (MBIA Insd)........................ 6.000    05/15/15      1,142,390
  2,600    New York St Dorm Auth Rev St Univ Ed Fac Ser
           A (MBIA Insd)............................... 5.250    05/15/15      2,850,068
  5,010    New York St Dorm Auth Rev St Univ Ed Fac Ser
           B Rfdg...................................... 5.250    05/15/19      5,308,846
  1,500    New York St Energy Resh & Dev Auth Gas Fac
           Rev Brooklyn Union Gas Ser B (Var Rate Cpn)
           (MBIA Insd)................................. 6.750    02/01/24      1,561,740
  4,000    New York St Energy Resh & Dev Auth Gas Fac
           Rev Brooklyn Union Gas Ser C (Var Rate Cpn)
           (MBIA Insd)................................. 5.600    06/01/25      4,114,920
    800    New York St Environmental Fac Corp Pollutn
           Ctl Rev St Wtr Rev.......................... 6.600    06/15/09        890,272
  1,200    New York St Environmental Fac Corp Pollutn
           Ctl Rev St Wtr Rev (Prerefunded @
           06/15/04)................................... 6.600    06/15/09      1,347,984
</Table>

                                               See Notes to Financial Statements

                                        14
<PAGE>

YOUR TRUST'S INVESTMENTS

October 31, 2001

<Table>
<Caption>
PAR
AMOUNT                                                                         MARKET
(000)      DESCRIPTION                                  COUPON   MATURITY      VALUE
<C>        <S>                                          <C>      <C>        <C>
           NEW YORK (CONTINUED)
$ 3,500    New York St Hsg Fin Agy Rev Multi-Family Hsg
           Secd Mtg Pgm Ser A.......................... 7.050%   08/15/24   $  3,621,240
  3,000    New York St Loc Govt Assistance Corp Ser E
           Rfdg........................................ 6.000    04/01/14      3,497,610
  3,735    New York St Med Care Fac Fin Agy Rev Hosp &
           Nurs Ser B (FHA Gtd)........................ 6.950    02/15/32      3,856,350
    935    New York St Med Care Fac Fin Agy Rev Long
           Term Hlthcare Ser A (FSA Insd).............. 6.800    11/01/14        974,036
  2,050    New York St Med Care Fac Fin Agy Rev Saint
           Peter's Hosp Proj Ser A (AMBAC Insd)........ 5.375    11/01/20      2,081,632
  1,155    New York St Mtg Agy Rev Homeowner Mtg Ser 42
           (FHA Gtd)................................... 6.400    10/01/20      1,231,704
  1,755    New York St Mtg Agy Rev Homeowner Mtg Ser
           52.......................................... 6.100    04/01/26      1,837,555
  4,000    New York St Mtg Agy Rev Homeowner Mtg Ser
           71.......................................... 5.400    04/01/29      4,061,640
  4,725    New York St Mtg Agy Rev Homeowner Mtg Ser
           79.......................................... 5.300    04/01/29      4,768,990
  1,000    New York St Muni Bd Bk Agy Spl Pgm Rev
           Buffalo Ser A............................... 6.875    03/15/06      1,031,000
  1,500    New York St Ser A Rfdg...................... 5.250    03/15/15      1,594,260
  2,000    New York St Thruway Auth Svc Contract Rev
           Loc Hwy & Brdg.............................. 5.750    04/01/08      2,198,300
  2,500    New York St Urban Dev Corp Rev Correctional
           Fac Ser A Rfdg.............................. 5.500    01/01/14      2,780,500
  2,000    New York St Urban Dev Corp Rev Correctional
           Fac Svc Contract Ser B (AMBAC Insd)......... 4.750    01/01/28      1,899,360
  1,625    New York St Urban Dev Corp Rev Proj Ctr for
           Indl Innovation Rfdg........................ 5.500    01/01/13      1,812,428
 20,000    New York St Urban Dev Corp Rev St Office
           South Mall Ser A............................   *      01/01/11     12,092,400
  1,000    Niagara Cnty, NY Indl Dev Agy Ser C Rfdg.... 5.625    11/15/24      1,044,730
  3,570    Niagara, NY Frontier Auth Arpt Buffalo
           Niagara Intl Arpt Ser A (MBIA Insd)......... 5.625    04/01/29      3,709,944
  4,500    Port Auth NY & NJ Cons 97th Ser (FGIC
           Insd)....................................... 6.650    01/15/23      4,785,210
  2,000    Port Auth NY & NJ Delta Airl Inc Proj Ser
           1R.......................................... 6.950    06/01/08      1,972,940
  2,025    Rensselaer, NY Hsg Auth Multi-Family Rev Mtg
           Renwyck Pl Ser A............................ 7.650    01/01/11      2,140,081
  1,870    Rensselaer, NY Hsg Auth Multi-Family Rev Mtg
           Van Rensselaer Heights Ser A................ 7.750    01/01/11      1,976,160
</Table>

See Notes to Financial Statements

                                        15
<PAGE>

YOUR TRUST'S INVESTMENTS

October 31, 2001

<Table>
<Caption>
PAR
AMOUNT                                                                         MARKET
(000)      DESCRIPTION                                  COUPON   MATURITY      VALUE
<C>        <S>                                          <C>      <C>        <C>
           NEW YORK (CONTINUED)
$ 1,825    Syracuse, NY Ctfs Partn Syracuse Hancock
           Intl Arpt................................... 6.625%   01/01/12   $  1,867,650
  1,000    Yonkers, NY Indl Dev Agy Civic Cmnty Dev
           Ppty Yonkers Inc Ser A...................... 6.625    02/01/26      1,068,040
  1,700    Yonkers, NY Ser A (FGIC Insd)............... 5.750    10/01/14      1,910,681
                                                                            ------------
                                                                             155,157,529
                                                                            ------------
           GUAM  1.7%
  1,650    Guam Arpt Auth Rev Ser B.................... 6.400    10/01/05      1,721,099
  1,000    Guam Pwr Auth Rev Ser A (Prerefunded @
           10/01/04)................................... 6.625    10/01/14      1,141,400
                                                                            ------------
                                                                               2,862,499
                                                                            ------------
           PUERTO RICO  4.5%
  5,000    Puerto Rico Comwlth Hwy & Trans Auth Hwy Rev
           Ser Y (Var Rate Cpn) (FSA Insd)............. 6.250    07/01/21      6,027,000
  1,500    Puerto Rico Comwlth Pub Impt (Prerefunded @
           07/01/02)................................... 6.800    07/01/21      1,570,260
                                                                            ------------
                                                                               7,597,260
                                                                            ------------
           U. S. VIRGIN ISLANDS  0.6%
  1,000    Virgin Islands Pub Fin Auth Rev Gross Rcpt
           Taxes Ln Nt Ser A (ACA Insd)................ 6.125    10/01/29      1,069,710
                                                                            ------------

TOTAL INVESTMENTS  98.9%
  (Cost $151,120,511)....................................................    166,686,998
OTHER ASSETS IN EXCESS OF LIABILITIES  1.1%..............................      1,858,982
                                                                            ------------

NET ASSETS  100.0%.......................................................   $168,545,980
                                                                            ============
</Table>

* Zero coupon bond

ACA--American Capital Access
AMBAC--AMBAC Indemnity Corp.
FGIC--Financial Guaranty Insurance Co.
FHA--Federal Housing Administration
FSA--Financial Security Assurance Inc.
MBIA--Municipal Bond Investors Assurance Corp.

                                               See Notes to Financial Statements

                                        16
<PAGE>

FINANCIAL STATEMENTS
Statement of Assets and Liabilities
October 31, 2001

<Table>
<S>                                                           <C>
ASSETS:
Total Investments (Cost $151,120,511).......................  $166,686,998
Interest Receivable.........................................     2,393,077
Other.......................................................         1,519
                                                              ------------
    Total Assets............................................   169,081,594
                                                              ------------
LIABILITIES:
Payables:
  Income Distributions--Common and Preferred Shares.........       123,766
  Investment Advisory Fee...................................        85,673
  Custodian Bank............................................        72,207
  Administrative Fee........................................        28,557
  Affiliates................................................         9,361
Trustees' Deferred Compensation and Retirement Plans........       132,129
Accrued Expenses............................................        83,921
                                                              ------------
    Total Liabilities.......................................       535,614
                                                              ------------
NET ASSETS..................................................  $168,545,980
                                                              ============
NET ASSETS CONSIST OF:
Preferred Shares ($.01 par value, authorized 100,000,000
  shares, 2,400 issued with liquidation preference of
  $25,000 per share)........................................  $ 60,000,000
                                                              ------------
Common Shares ($.01 par value with an unlimited number of
  shares authorized, 6,203,651 shares issued and
  outstanding)..............................................        62,037
Paid in Surplus.............................................    91,268,149
Net Unrealized Appreciation.................................    15,566,487
Accumulated Net Realized Gain...............................       937,379
Accumulated Undistributed Net Investment Income.............       711,928
                                                              ------------
Net Assets Applicable to Common Shares......................   108,545,980
                                                              ------------
NET ASSETS..................................................  $168,545,980
                                                              ============
NET ASSET VALUE PER COMMON SHARE ($108,545,980 divided by
  6,203,651 shares outstanding).............................  $      17.50
                                                              ============
</Table>

See Notes to Financial Statements

                                        17
<PAGE>

Statement of Operations
For the Year Ended October 31, 2001

<Table>
<S>                                                           <C>
INVESTMENT INCOME:
Interest....................................................  $ 9,471,397
                                                              -----------
EXPENSES:
Investment Advisory Fee.....................................    1,044,367
Administrative Fee..........................................      333,201
Preferred Share Maintenance.................................      165,929
Legal.......................................................       25,802
Trustees' Fees and Related Expenses.........................       25,228
Custody.....................................................       10,501
Other.......................................................      171,569
                                                              -----------
    Total Expenses..........................................    1,776,597
                                                              -----------
NET INVESTMENT INCOME.......................................  $ 7,694,800
                                                              ===========
REALIZED AND UNREALIZED GAIN/LOSS:
Net Realized Gain...........................................  $   937,569
                                                              -----------
Unrealized Appreciation/Depreciation:
  Beginning of the Period...................................    9,176,170
  End of the Period.........................................   15,566,487
                                                              -----------
Net Unrealized Appreciation During the Period...............    6,390,317
                                                              -----------
NET REALIZED AND UNREALIZED GAIN............................  $ 7,327,886
                                                              ===========
NET INCREASE IN NET ASSETS FROM OPERATIONS..................  $15,022,686
                                                              ===========
</Table>

                                               See Notes to Financial Statements

                                        18
<PAGE>

Statements of Changes in Net Assets
For the Years Ended October 31, 2001 and 2000

<Table>
<Caption>
                                                        YEAR ENDED          YEAR ENDED
                                                     OCTOBER 31, 2001    OCTOBER 31, 2000
                                                     ------------------------------------
<S>                                                  <C>                 <C>
FROM INVESTMENT ACTIVITIES:
Operations:
Net Investment Income...............................   $  7,694,800        $  8,090,735
Net Realized Gain...................................        937,569           2,180,725
Net Unrealized Appreciation During the Period.......      6,390,317             449,927
                                                       ------------        ------------
Change in Net Assets from Operations................     15,022,686          10,721,387
                                                       ------------        ------------

Distributions from Net Investment Income:
  Common Shares.....................................     (6,054,733)         (6,327,437)
  Preferred Shares..................................     (1,526,840)         (2,406,495)
                                                       ------------        ------------
                                                         (7,581,573)         (8,733,932)
                                                       ------------        ------------

Distributions from Net Realized Gain:
  Common Shares.....................................     (1,514,932)                -0-
  Preferred Shares..................................       (639,940)                -0-
                                                       ------------        ------------
                                                         (2,154,872)                -0-
                                                       ------------        ------------
Total Distributions.................................     (9,736,445)         (8,733,932)
                                                       ------------        ------------

NET CHANGE IN NET ASSETS FROM INVESTMENT
  ACTIVITIES........................................      5,286,241           1,987,455
NET ASSETS:
Beginning of the Period.............................    163,259,739         161,272,284
                                                       ------------        ------------
End of the Period (Including accumulated
  undistributed net investment income of $711,928
  and $587,437, respectively).......................   $168,545,980        $163,259,739
                                                       ============        ============
</Table>

See Notes to Financial Statements

                                        19
<PAGE>

Financial Highlights
THE FOLLOWING SCHEDULE PRESENTS FINANCIAL HIGHLIGHTS FOR ONE COMMON SHARE OF THE
TRUST OUTSTANDING THROUGHOUT THE PERIODS INDICATED.

<Table>
<Caption>

                                                              -----------------------------
                                                               2001       2000       1999
                                                              -----------------------------
<S>                                                           <C>        <C>        <C>
NET ASSET VALUE, BEGINNING OF THE PERIOD (A)................  $ 16.64    $ 16.32    $ 17.83
                                                              -------    -------    -------
 Net Investment Income......................................     1.25       1.30       1.30
 Net Realized and Unrealized Gain/Loss......................     1.19        .43      (1.53)
                                                              -------    -------    -------
Total from Investment Operations............................     2.44       1.73       (.23)
                                                              -------    -------    -------
Less:
 Distributions from Net Investment Income:
   Paid to Common Shareholders..............................      .98       1.02        .96
   Common Share Equivalent of Distributions Paid to
     Preferred Shareholders.................................      .25        .39        .31
 Distributions from Net Realized Gain:
   Paid to Common Shareholders..............................      .25        -0-        -0-
   Common Share Equivalent of Distributions Paid to
     Preferred Shareholders.................................      .10        -0-        -0-
                                                              -------    -------    -------
Total Distributions.........................................     1.58       1.41       1.28
                                                              -------    -------    -------
NET ASSET VALUE, END OF THE PERIOD..........................  $ 17.50    $ 16.64    $ 16.32
                                                              =======    =======    =======
Market Price Per Share at End of the Period.................  $ 16.22    $15.375    $ 15.25
Total Investment Return at Market Price (b).................   13.68%      7.80%     -8.73%
Total Return at Net Asset Value (c).........................   12.87%      8.52%     -3.26%
Net Assets at End of the Period (In millions)...............  $ 168.5    $ 163.3    $ 161.3
Ratio of Expenses to Average Net Assets Applicable to Common
 Shares (d).................................................    1.67%      1.69%      1.68%
Ratio of Net Investment Income to Average Net Assets
 Applicable to Common Shares (d)............................    7.22%      8.00%      7.51%
Portfolio Turnover..........................................      15%        34%         4%
SUPPLEMENTAL RATIOS:
Ratio of Expenses to Average Net Assets Including Preferred
 Shares (d).................................................    1.07%      1.06%      1.07%
Ratio of Net Investment Income to Average Net Assets
 Applicable to Common Shares (e)............................    5.79%      5.62%      5.72%
SENIOR SECURITIES:
Total Preferred Shares Outstanding..........................    2,400      2,400      2,400
Asset Coverage Per Preferred Share (f)......................  $70,227    $68,025    $67,197
Involuntary Liquidating Preference Per Preferred Share......  $25,000    $25,000    $25,000
Average Market Value Per Preferred Share....................  $25,000    $25,000    $25,000
</Table>

 * Non-Annualized

 1  If certain expenses had not been assumed by the investment adviser for the
    period ended October 31, 1992, the annualized ratios of expenses to average
    net assets applicable to common shares, expenses to average net assets
    including preferred shares and net investment income to average net assets
    applicable to common shares would have been 1.58%, 1.10% and 5.19%,
    respectively.

(a) Net Asset Value at March 27, 1992 is adjusted for common and preferred share
    offering costs of $.258 per common share.

(b) Total return based on market price assumes an investment at the market price
    at the beginning of the period indicated, reinvestment of all distributions
    for the period in accordance with the Trust's dividend reinvestment plan,
    and sale of all shares at the closing common share price at the end of the
    period indicated.

(c) Total return based on net asset value (NAV) assumes an investment at the
    beginning of the period indicated, reinvestment of all distributions for the
    period, and sale of all shares at the end of the period, all at NAV.

(d) Ratios do not reflect the effect of dividend payments to preferred
    shareholders.

(e) Ratios reflect the effect of dividend payments to preferred shareholders.

(f) Calculated by subtracting the Trust's total liabilities (not including the
    preferred shares) from the Trust's total assets and dividing this by the
    number of preferred shares outstanding.

                                        20
<PAGE>

<Table>
<Caption>
                                                                       MARCH 27, 1992
                                                                       (COMMENCEMENT
YEAR ENDED OCTOBER 31,                                                 OF INVESTMENT
- -------------------------------------------------------------------    OPERATIONS) TO
      1998       1997       1996       1995       1994       1993     OCTOBER 31, 1992
- --------------------------------------------------------------------------------------
<S> <C>        <C>        <C>        <C>        <C>        <C>        <C>
    $  17.33   $  16.63   $  16.49   $  14.80   $  17.62   $  14.81       $  14.74
    --------   --------   --------   --------   --------   --------       --------
        1.29       1.28       1.30       1.30       1.34       1.35            .60
         .52        .70        .10       1.79      (2.87)      2.77            .03
    --------   --------   --------   --------   --------   --------       --------
        1.81       1.98       1.40       3.09      (1.53)      4.12            .63
    --------   --------   --------   --------   --------   --------       --------
         .94        .90        .90       1.00       1.02       1.02            .42
         .33        .34        .36        .39        .27        .29            .14
         .03        .03        -0-        .01        -0-        -0-            -0-
         .01        .01        -0-        -0-        -0-        -0-            -0-
    --------   --------   --------   --------   --------   --------       --------
        1.31       1.28       1.26       1.40       1.29       1.31            .56
    --------   --------   --------   --------   --------   --------       --------
    $  17.83   $  17.33   $  16.63   $  16.49   $  14.80   $  17.62       $  14.81
    ========   ========   ========   ========   ========   ========       ========
    $17.6875   $15.5625   $ 14.625   $ 14.375   $ 13.125   $ 17.125       $  15.00
      20.29%     13.08%      8.09%     17.49%    -18.07%     21.52%          2.79%*
       8.69%     10.12%      6.50%     18.88%    -10.55%     26.50%          1.48%*
    $  170.5   $  167.5   $  163.2   $  162.2   $  151.8   $  169.3       $  151.8
       1.66%      1.70%      1.73%      1.78%      1.70%      1.62%          1.49%(1)
       7.35%      7.63%      7.92%      8.36%      8.19%      8.20%          6.79%
          1%         8%        20%        54%        38%        18%            24%*
       1.07%      1.08%      1.09%      1.10%      1.07%      1.02%          1.03%(1)
       5.45%      5.63%      5.78%      5.89%      6.55%      6.45%          5.28%(1)
       1,200      1,200      1,200      1,200      1,200      1,200          1,200
    $142,118   $139,565   $135,961   $135,197   $126,486   $141,056       $126,539
    $ 50,000   $ 50,000   $ 50,000   $ 50,000   $ 50,000   $ 50,000       $ 50,000
    $ 50,000   $ 50,000   $ 50,000   $ 50,000   $ 50,000   $ 50,000       $ 50,000
</Table>

See Notes to Financial Statements

                                        21
<PAGE>

NOTES TO
FINANCIAL STATEMENTS

October 31, 2001

1. SIGNIFICANT ACCOUNTING POLICIES

Van Kampen Trust for Investment Grade New York Municipals (the "Trust") is
registered as a non-diversified, closed-end management investment company under
the Investment Company Act of 1940 (the "1940 Act"), as amended. The Trust's
investment objective is to provide a high level of current income exempt from
federal as well as New York State and New York City income taxes, consistent
with preservation of capital. The Trust will invest substantially all of its
assets in New York municipal securities rated investment grade at the time of
investment. The Trust commenced investment operations on March 27, 1992.

    The following is a summary of significant accounting policies consistently
followed by the Trust in the preparation of its financial statements. The
preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates.

A. SECURITY VALUATION Municipal bonds are valued by independent pricing services
or dealers using the mean of the bid and asked prices or, in the absence of
market quotations, at fair value based upon yield data relating to municipal
bonds with similar characteristics and general market conditions. Securities
which are not valued by independent pricing services or dealers are valued at
fair value using procedures established in good faith by the Board of Trustees.
Short-term securities with remaining maturities of 60 days or less are valued at
amortized cost, which approximates market value.

B. SECURITY TRANSACTIONS Security transactions are recorded on a trade date
basis. Realized gains and losses are determined on an identified cost basis. The
Trust may purchase and sell securities on a "when-issued" or "delayed delivery"
basis, with settlement to occur at a later date. The value of the security so
purchased is subject to market fluctuations during this period. The Trust will
maintain, in a segregated account with its custodian, assets having an aggregate
value at least equal to the amount of the when-issued or delayed delivery
purchase commitments until payment is made. At October 31, 2001, there were no
when-issued or delayed delivery purchase commitments.

C. INVESTMENT INCOME Interest income is recorded on an accrual basis. Bond
premium is amortized and original issue discount is accreted over the expected
life of each applicable security.

                                        22
<PAGE>

NOTES TO
FINANCIAL STATEMENTS

October 31, 2001

    In November 2000, the American Institute of Certified Public Accountants
(AICPA) issued a revised version of the AICPA Audit and Accounting Guide for
Investment Companies (the "Guide"). The revised version of the Guide is
effective for annual financial statements issued for fiscal years beginning
after December 15, 2000 and will require investment companies to amortize
premiums and accrete discounts on fixed income securities. The Trust currently
does not accrete market discount on fixed income securities. Upon adoption, the
Trust will be required to record a cumulative effect adjustment to reflect the
accretion of market discount. The adjustment will increase accumulated
undistributed net investment income and reduce unrealized appreciation on
securities and therefore will not impact total net assets. As of October 31,
2001, the cumulative effect adjustment to reflect the accretion of market
discount would be $220,650.

D. FEDERAL INCOME TAXES It is the Trust's policy to comply with the requirements
of the Internal Revenue Code applicable to regulated investment companies and to
distribute substantially all of its taxable income to its shareholders.
Therefore, no provision for federal income taxes is required.

    At October 31, 2001, for federal income tax purposes, cost of long-term
investments is $151,120,511; the aggregate gross unrealized appreciation is
$15,711,462 and the aggregate gross unrealized depreciation is $144,975,
resulting in net unrealized appreciation on long-term investments of
$15,566,487.

E. DISTRIBUTION OF INCOME AND GAINS The Trust declares and pays monthly
dividends from net investment income to common shareholders. Net realized gains,
if any, are distributed annually on a pro rata basis to common and preferred
shareholders Distributions from net realized gains for book purposes may include
short-term capital gains, which are included as ordinary income for tax
purposes.

    Due to inherent differences in the recognition of income, expenses and
realized gains/losses under generally accepted accounting principles and federal
income tax purposes, permanent differences between book and tax basis reporting
for the 2001 fiscal year have been identified and appropriately reclassified. A
permanent book and tax basis difference relating to expenses that are not
deductible for tax purposes totaling $11,264 has been reclassified from
accumulated undistributed net investment income to capital.

F. RECLASSIFICATIONS Certain information included in the prior years' financial
highlights has been conformed to the current year presentation.

                                        23
<PAGE>

NOTES TO
FINANCIAL STATEMENTS

October 31, 2001

2. INVESTMENT ADVISORY AGREEMENT AND
OTHER TRANSACTIONS WITH AFFILIATES

Under the terms of the Trust's Investment Advisory Agreement, Van Kampen
Investment Advisory Corp. (the "Adviser") will provide investment advice and
facilities to the Trust for an annual fee payable monthly of .60% of the average
daily net assets of the Trust. Effective May 17, 2001, this fee was reduced from
 .65% to .60% of the average daily net assets of the Trust. In addition, the
Trust will pay a monthly administrative fee to Van Kampen Investments Inc. or
its affiliates (collectively "Van Kampen"), the Trust's Administrator, at an
annual rate of .20% of the average daily net assets of the Trust. The
administrative services provided by the Administrator include record keeping and
reporting responsibilities with respect to the Trust's portfolio and preferred
shares and providing certain services to shareholders.

    For the year ended October 31, 2001, the Trust recognized expenses of
approximately $6,200 representing legal services provided by Skadden, Arps,
Slate, Meagher & Flom (Illinois), counsel to the Trust, of which a trustee of
the Trust is an affiliated person.

    Under separate Accounting Services and Legal Services agreements, the
Adviser provides accounting and legal services to the Trust. The Adviser
allocates the cost of such services to each trust. For the year ended October
31, 2001, the Trust recognized expenses of approximately $36,200 representing
Van Kampen's cost of providing accounting and legal services to the Trust, which
are reported as part of "Other" and "Legal" expenses, respectively, in the
Statement of Operations.

    Certain officers and trustees of the Trust are also officers and directors
of Van Kampen. The Trust does not compensate its officers or trustees who are
officers of Van Kampen.

    The Trust provides deferred compensation and retirement plans for its
trustees who are not officers of Van Kampen. Under the deferred compensation
plan, trustees may elect to defer all or a portion of their compensation to a
later date. Benefits under the retirement plan are payable upon retirement for a
ten-year period and are based upon each trustee's years of service to the Trust.
The maximum annual benefit per trustee under the plan is $2,500.

3. INVESTMENT TRANSACTIONS

During the period, the cost of purchases and proceeds from sales of investments,
excluding short-term investments, were $25,183,827 and $28,829,712,
respectively.

                                        24
<PAGE>

NOTES TO
FINANCIAL STATEMENTS

October 31, 2001

4. PREFERRED SHARES

As of October 31, 2001, the Trust has outstanding 2,400 Auction Preferred Shares
("APS"). Dividends are cumulative and the dividend rate is generally reset every
28 days through an auction process. The rate in effect on October 31, 2001 was
2.000%. During the year ended October 31, 2001, the rates ranged from 2.000% to
7.000%.

    The Trust pays annual fees equivalent to .25% of the preferred share
liquidation value for the remarketing efforts associated with the preferred
auctions. These fees are included as a component of "Preferred Share
Maintenance" expense in the Statement of Operations.

    The APS are redeemable at the option of the Trust in whole or in part at the
liquidation value of $25,000 per share plus accumulated and unpaid dividends.
The Trust is subject to certain asset coverage tests and the APS are subject to
mandatory redemption if the tests are not met.

                                        25
<PAGE>

REPORT OF INDEPENDENT AUDITORS

The Board of Trustees and Shareholders of Van Kampen Trust for Investment Grade
New York Municipals

We have audited the accompanying statement of assets and liabilities of Van
Kampen Trust for Investment Grade New York Municipals (the "Trust"), including
the portfolio of investments, as of October 31, 2001, the related statement of
operations for the year then ended, and the statements of changes in net assets
and the financial highlights for each of the two years in the period then ended.
These financial statements and financial highlights are the responsibility of
the Trust's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits. The Trust's
financial highlights for the periods ended prior to October 31, 2000, were
audited by other auditors whose report, dated December 6, 1999, expressed an
unqualified opinion on those financial highlights.

    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 October 31, 2001, by correspondence with the Trust's
custodian. An 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 Van
Kampen Trust for Investment Grade New York Municipals as of October 31, 2001,
the results of its operations, the changes in its net assets and the financial
highlights for the respective stated periods, in conformity with accounting
principles generally accepted in the United States of America.

DELOITTE & TOUCHE LLP
Chicago, Illinois
December 10, 2001

                                        26
<PAGE>

DIVIDEND REINVESTMENT PLAN

    The Trust offers a dividend reinvestment plan (the "Plan") pursuant to which
Common Shareholders may elect to have dividends and capital gains distributions
reinvested in Common Shares of the Trust. The Trust declares dividends out of
net investment income, and will distribute annually net realized capital gains,
if any. Common Shareholders may join or withdraw from the Plan at any time.

    If you decide to participate in the Plan, State Street Bank and Trust
Company, as your Plan Agent, will automatically invest your dividends and
capital gains distributions in Common Shares of the Trust for your account.

HOW TO PARTICIPATE

    If you wish to participate and your shares are held in your own name, call
1-800-341-2929 for more information and a Plan brochure. If your shares are held
in the name of a brokerage firm, bank, or other nominee, you should contact your
nominee to see if it would participate in the Plan on your behalf. If you wish
to participate in the Plan, but your brokerage firm, bank or nominee is unable
to participate on your behalf, you should request that your shares be
re-registered in your own name which will enable your participation in the Plan.

HOW THE PLAN WORKS

    Participants in the Plan will receive the equivalent in Common Shares valued
on the valuation date, generally at the lower of market price or net asset
value, except as specified below. The valuation date will be the dividend or
distribution payment date or, if that date is not a trading day on the national
securities exchange or market system on which the Common Shares are listed for
trading, the next preceding trading day. If the market price per Common Share on
the valuation date equals or exceeds net asset value per Common Share on that
date, the Trust will issue new Common Shares to participants valued at the
higher of net asset value or 95% of the market price on the valuation date. In
the foregoing situation, the Trust will not issue Common Shares under the Plan
below net asset value. If net asset value per Common Share on the valuation date
exceeds the market price per Common Share on that date, or if the Board of
Trustees should declare a dividend or capital gains distribution payable to the
Common Shareholders only in cash, participants in the Plan will be deemed to
have elected to receive Common Shares from the Trust valued at the market price
on that date. Accordingly, in this circumstance, the Plan Agent will, as agent
for the participants, buy the Trust's Common Shares in the open market for the
participants' accounts on or shortly after the payment date. If, before the Plan
Agent has completed its purchases, the market price exceeds the net asset value
per share of the Common Shares, the average per share purchase price paid by the
Plan Agent may exceed the net asset value of the Trust's Common Shares,
resulting in

                                        27
<PAGE>

the acquisition of fewer Common Shares than if the dividend or distribution had
been paid in Common Shares issued by the Trust. All reinvestments are in full
and fractional Common shares and are carried to three decimal places.

    Experience under the Plan may indicate that changes are desirable.
Accordingly, the Trust reserves the right to amend or terminate the Plan as
applied to any dividend or distribution paid subsequent to written notice of the
change sent to all Common Shareholders of the Trust at least 90 days before the
record date for the dividend or distribution. The Plan also may be amended or
terminated by the Plan Agent by at least 90 days written notice to all Common
Shareholders of the Trust.

COSTS OF THE PLAN

    The Plan Agent's fees for the handling of the reinvestment of dividends and
distributions will be paid by the Trust. However, each participant will pay a
pro rata share of brokerage commissions incurred with respect to the Plan
Agent's open market purchases in connection with the reinvestment of dividends
and distributions. No other charges will be made to participants for reinvesting
dividends or capital gains distributions, except for certain brokerage
commissions, as described above.

TAX IMPLICATIONS

    You will receive tax information annually for your personal records and to
help you prepare your federal income tax return. The automatic reinvestment of
dividends and capital gains distributions does not relieve you of any income tax
which may be payable on dividends or distributions.

RIGHT TO WITHDRAW

    Plan participants may withdraw at any time by calling 1-800-341-2929 or by
writing State Street Bank and Trust Company, P.O. Box 8200, Boston, MA
02266-8200. If you withdraw, you will receive, without charge, a share
certificate issued in your name for all full Common Shares credited to your
account under the Plan and a cash payment will be made for any fractional Common
Share credited to your account under the Plan. You may again elect to
participate in the Plan at any time by calling 1-800-341-2929 or writing to the
Trust at:

       Van Kampen Funds Inc.
        Attn: Closed-End Funds
         2800 Post Oak Blvd.
          Houston, TX 77056

                                        28
<PAGE>

BOARD OF TRUSTEES AND IMPORTANT ADDRESSES
VAN KAMPEN TRUST FOR INVESTMENT GRADE
NEW YORK MUNICIPALS

BOARD OF TRUSTEES

DAVID C. ARCH
ROD DAMMEYER
HOWARD J KERR
THEODORE A. MYERS
RICHARD F. POWERS, III* - Chairman
HUGO F. SONNENSCHEIN
WAYNE W. WHALEN*

INVESTMENT ADVISER

VAN KAMPEN INVESTMENT ADVISORY CORP.
1 Parkview Plaza
P.O. Box 5555
Oakbrook Terrace, IL 60181-5555

CUSTODIAN AND TRANSFER AGENT

STATE STREET BANK AND TRUST COMPANY
c/o EquiServe
P.O. Box 43011
Providence, Rhode Island 02940-3011

LEGAL COUNSEL

SKADDEN, ARPS, SLATE,
MEAGHER & FLOM (ILLINOIS)
333 West Wacker Drive
Chicago, Illinois 60606

INDEPENDENT AUDITORS

DELOITTE & TOUCHE LLP
180 North Stetson Avenue
Chicago, Illinois 60601

 For federal income tax purposes, the following information is furnished with
 respect to the distributions paid by the Trust during its taxable year ended
 October 31, 2001. The Trust designated 99.99% of the income distributions as a
 tax-exempt income distribution. Additionally, during the period, the Trust paid
 $2,073,193 as a long-term capital gain distribution. In January, the Trust
 provides tax information to shareholders for the preceding calendar year.

*   "Interested persons" of the Trust, as defined in the Investment Company Act
    of 1940, as amended.

                                        29
<PAGE>

RESULTS OF
SHAREHOLDER VOTES

An Annual Meeting of the Shareholders of the Trust was held on June 27, 2001,
where shareholders voted on the election of trustees.

With regard to the election of the following trustees by the common shareholders
of the Trust:

<Table>
<Caption>
                                                                  # OF SHARES
                                                         -----------------------------
                                                         IN FAVOR             WITHHELD
- --------------------------------------------------------------------------------------
<S>                                                      <C>                  <C>
Richard F. Powers, III.................................  5,652,074             46,007
Hugo F. Sonnenschein...................................  5,652,427             45,653
</Table>

With regard to the election of the following trustee by the preferred
shareholders of the Trust:

<Table>
<Caption>
                                                                   # OF SHARES
                                                           ----------------------------
                                                           IN FAVOR            WITHHELD
- ---------------------------------------------------------------------------------------
<S>                                                        <C>                 <C>
Theodore A. Myers........................................   2,221                --
</Table>

The other trustees whose terms did not expire in 2001 were David C. Arch, Rod
Dammeyer, Howard J Kerr and Wayne W. Whalen.

                                        30
<PAGE>

Van Kampen
Privacy Notice

The Van Kampen companies and investment products* respect your right to privacy.
We also know that you expect us to conduct and process your business in an
accurate and efficient manner. To do so, we must collect and maintain certain
nonpublic personal information about you. This is information we collect from
you on applications or other forms, and from the transactions you make with us,
our affiliates, or third parties. We may also collect information you provide
when using our web site, and text files (a.k.a. "cookies") may be placed on your
computer to help us to recognize you and to facilitate transactions you
initiate. We do not disclose any nonpublic personal information about you or any
of our former customers to anyone, except as permitted by law. For instance, so
that we may continue to offer you Van Kampen investment products and services
that meet your investing needs, and to effect transactions that you request or
authorize, we may disclose the information we collect to companies that perform
services on our behalf, such as printers and mailers that assist us in the
distribution of investor materials. These companies will use this information
only for the services for which we hired them, and are not permitted to use or
share this information for any other purpose. To protect your nonpublic personal
information internally, we permit access to it only by authorized employees, and
maintain physical, electronic and procedural safeguards to guard your nonpublic
personal information.

* Includes Van Kampen Investments Inc., Van Kampen Investment Advisory Corp.,
  Van Kampen Asset Management Inc., Van Kampen Advisors Inc., Van Kampen
  Management Inc., Van Kampen Funds Inc., Van Kampen Investor Services Inc., Van
  Kampen Trust Company, Van Kampen System Inc. and Van Kampen Exchange Corp., as
  well as the many Van Kampen mutual funds and Van Kampen unit investment
  trusts.

Van Kampen Funds Inc.
1 Parkview Plaza, P.O. Box 5555
Oakbrook Terrace, IL 60181-5555
www.vankampen.com

                         [VAN KAMPEN INVESTMENTS LOGO]
                    Copyright (C)2001 Van Kampen Funds Inc. All rights reserved.
VTN ANR 12/01                                                  Member NASD/SIPC.
                                                                4622L01-AS-12/01

</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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