Region XII works directly with developers, contractors, local governments, and other community stakeholders to identify properties that have the most promise for the development of quality affordable housing. Once a site is selected, Region XII Housing staff work to put together the financing package needed to support construction of the home and future maintenance of the property if it is a rental unit. With their financing package in place, Region XII Housing staff work directly with developers and contractors in the construction phase to ensure each funding source’s requirements are met. As each project requires a substantial amount of funding, Region XII has been able to work effectively with private, local, state, and federal funding sources, to pull each project’s funding package together. At any one Region XII housing project site, there could be upwards of four or five different funding sources working together. Region XII has found significant success in using Workforce Housing Tax Credits (a state of Iowa tax credit) to make the deals “pencil-out” and credits their success to their staff’s constant search for new funding opportunities. Additionally, Region XII staff found that the regional organization must be willing to take on some level of financial risk through these projects. While the vast majority of Region XII’s projects turn a small profit, there is still a financial risk due to the nature of real estate development. To mitigate these risks, Region XII staff recommend that other EDDs factor in substantial contingencies and added high maintenance estimates for rental units to create budgets that represent the worst-case scenario. Proper budgeting allows the EDD to approach this inherent risk in a more fiscally responsible manner.