In the recent past, developers often neglected due diligence in an effort to close deals. It was not uncommon 10 years ago for developers of historic tax credit (HTC) projects to skip this step, and the tax credit investors rarely investigated the project themselves. Due diligence is not a new concept, however. It is simply doing one’s homework, checking and rechecking the pro forma’s veracity and logic. It is a necessary step for sound real estate development performed by sound real estate developers, and tax credit investors are realizing its importance in projects. As the marketplace rekindles, investors are hiring historic preservation consultants to verify their HTC projects. The following pages explore the most common problem areas for HTC projects and provide a breakdown of the due diligence process.