The developer of the qualified project receives an allocation of tax credits from the state housing agency. Developer sells credits through skilled intermediaries who assess risk and provide asset management. (some corporate taxpayers may develop this capacity for their own account). Market discipline applied to Public/Private Partnerships. Compliance enforcement with a tax penalty, Third-Party oversight of property and asset management, annual compliance and financial audit, efficient pricing is competitive, transparent market, Price is driven by the value of tax credit, not the market value of housing (Community Reinvestment Act Compliance in the U.S), Equity Pays for 30% – 70% of total development cost: Dependent on the value of the credit, level of affordability (% AMI), The market price of tax credits. State allocating agency with underwriting and asset management capacity, Corporate tax payers, Capable developers, property and asset managers, Intermediary investment managers, Capital sources (debt, subsidy) to pay for the balance of development costs.