Five generic approaches to third-party financing were developed by adapting existing financing techniques to residential infrastructure. Three of the approaches initially selected for analysis are 'tax-influenced'. The other two alternatives provide for private financing through 'tax-exempt' obligations of local governments and special districts. These approaches were compared in terms of their attractiveness to investors and the reasonableness of their distribution of costs and benefits to all parties involved in the process of residential development. Based on the analysis, the general findings of the study are that it is technically feasible to finance new residential infrastructure using third-party techniques which provide attractive returns to investors and which remove the cost of infrastructure from a homebuyer's mortgage and downpayment.
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