Involves an analysis of residential property to be developed or rehabilitated under Section 42 of the Federal Code. Sponsors are provided with federal [and state] tax credits based on a percentage of qualified basis, which can then be sold to receive funds to help pay for development costs. In return, the sponsor agrees to restrict rent and occupancy to a percentage of area median income. Tax credit due diligence can address many of the issues faced by developers and syndicators, including compliance, strength of the development team, design, marketability, cash flow, and sources and uses of funds. The principals of GRHCo have completed over 92 of these assignments in 25 states and have sponsored 22 projects in four states.