diff --git a/eng/references.targets b/eng/references.targets
index 4f57bc14d1e4c0..934ad26e744350 100644
--- a/eng/references.targets
+++ b/eng/references.targets
@@ -7,13 +7,6 @@
     <_FindDependencies>false</_FindDependencies>
   </PropertyGroup>
 
-   <!-- If a CoreLib ProjectReference is present, make all P2P assets non transitive. -->
-  <ItemGroup Condition="'@(ProjectReference)' != '' and
-                         @(ProjectReference->AnyHaveMetadataValue('Identity', '$(CoreLibProject)'))">
-    <ProjectReference Update="@(ProjectReference)"
-                      PrivateAssets="all" />
-  </ItemGroup>
-
   <!-- Project references shouldn't be copied to the output for non test apps. -->
   <ItemDefinitionGroup Condition="'$(IsTestProject)' != 'true' and '$(IsTestSupportProject)' != 'true' and '$(IsGeneratorProject)' != 'true'">
     <ProjectReference>
@@ -21,6 +14,32 @@
     </ProjectReference>
   </ItemDefinitionGroup>
 
+  <ItemGroup Condition="'@(ProjectReference)' != ''">
+    <_coreLibProjectReference Include="@(ProjectReference->WithMetadataValue('Identity', '$(CoreLibProject)'))" />
+    <ProjectReference Update="@(_coreLibProjectReference)">
+      <!-- Don't flow TargetFramework and Platform to use same inputs and outputs as the CoreLib's build as part of the runtime. -->
+      <UndefineProperties>$(UndefineProperties);TargetFramework;Platform</UndefineProperties>
+      <SetConfiguration Condition="'$(RuntimeFlavor)' == 'CoreCLR' and
+                                   '$(Configuration)' != '$(CoreCLRConfiguration)'">Configuration=$(CoreCLRConfiguration)</SetConfiguration>
+      <SetConfiguration Condition="'$(RuntimeFlavor)' == 'Mono' and
+                                   '$(Configuration)' != '$(MonoConfiguration)'">Configuration=$(MonoConfiguration)</SetConfiguration>
+      <Private>false</Private>
+    </ProjectReference>
+    <!-- If a CoreLib ProjectReference is present, make all P2P assets non transitive. -->
+    <ProjectReference Update="@(ProjectReference)"
+                      PrivateAssets="all"
+                      Condition="'@(_coreLibProjectReference)' != ''" />
+  </ItemGroup>
+
+  <!-- Disable TargetArchitectureMismatch warning when we reference CoreLib as it is platform specific. -->
+  <Target Name="DisableProjectReferenceArchitectureMismatchWarningForCoreLib"
+          Condition="'@(_coreLibProjectReference)' != ''"
+          BeforeTargets="ResolveAssemblyReferences">
+    <PropertyGroup>
+      <ResolveAssemblyWarnOrErrorOnTargetArchitectureMismatch>None</ResolveAssemblyWarnOrErrorOnTargetArchitectureMismatch>
+    </PropertyGroup>
+  </Target>
+
   <!-- Filter out transitive P2Ps which should be excluded. -->
   <Target Name="FilterTransitiveProjectReferences"
           AfterTargets="IncludeTransitiveProjectReferences"
@@ -55,8 +74,10 @@
     </TargetPathWithTargetPlatformMoniker>
   </ItemDefinitionGroup>
 
-  <Target Name="ValidateReferenceAssemblyProjectReferences" Condition="'$(IsReferenceAssembly)' == 'true'" AfterTargets="ResolveReferences">
-    <Error Condition="'%(ReferencePath.ReferenceSourceTarget)' == 'ProjectReference' AND '%(ReferencePath.IsReferenceAssembly)' != 'true' AND '%(ReferencePath.ReferenceAssembly)' == ''"
+  <Target Name="ValidateReferenceAssemblyProjectReferences"
+          AfterTargets="ResolveReferences"
+          Condition="'$(IsReferenceAssembly)' == 'true'">
+    <Error Condition="'%(ReferencePath.ReferenceSourceTarget)' == 'ProjectReference' and '%(ReferencePath.IsReferenceAssembly)' != 'true' and '%(ReferencePath.ReferenceAssembly)' == ''"
            Text="Reference assemblies must only reference other reference assemblies and '%(ReferencePath.ProjectReferenceOriginalItemSpec)' is not a reference assembly project and does not set 'ProduceReferenceAssembly'." />
   </Target>
 </Project>
diff --git a/src/libraries/Directory.Build.targets b/src/libraries/Directory.Build.targets
index c6bb21939404be..1998f6196df53b 100644
--- a/src/libraries/Directory.Build.targets
+++ b/src/libraries/Directory.Build.targets
@@ -1,4 +1,4 @@
-<Project InitialTargets="UpdateProjectReferencesWithAttributes">
+<Project>
   <PropertyGroup>
     <!-- Override strong name key to default to Open for test projects,
          Tests which wish to control this should set TestStrongNameKeyId. -->
@@ -155,24 +155,6 @@
 
   <Import Project="$(RepositoryEngineeringDir)outerBuild.targets" Condition="'$(IsCrossTargetingBuild)' == 'true'" />
 
-  <Target Name="UpdateProjectReferencesWithAttributes" Condition="'@(ProjectReference)' != ''">
-    <ItemGroup>
-      <ProjectReference Condition="'%(Filename)' == 'System.Private.CoreLib'">
-        <!-- Don't flow TargetFramework and Platform to use same inputs and outputs as the CoreLib's build as part of the runtime. -->
-        <UndefineProperties>$(UndefineProperties);TargetFramework;Platform</UndefineProperties>
-        <SetConfiguration Condition="'$(RuntimeFlavor)' == 'CoreCLR' and
-                                     '$(Configuration)' != '$(CoreCLRConfiguration)'">Configuration=$(CoreCLRConfiguration)</SetConfiguration>
-        <SetConfiguration Condition="'$(RuntimeFlavor)' == 'Mono' and
-                                     '$(Configuration)' != '$(MonoConfiguration)'">Configuration=$(MonoConfiguration)</SetConfiguration>
-        <Private>false</Private>
-      </ProjectReference>
-    </ItemGroup>
-    <!-- Disable TargetArchitectureMismatch warning when we reference CoreLib which is platform specific. -->
-    <PropertyGroup Condition="@(ProjectReference->AnyHaveMetadataValue('Identity', '$(CoreLibProject)'))">
-      <ResolveAssemblyWarnOrErrorOnTargetArchitectureMismatch>None</ResolveAssemblyWarnOrErrorOnTargetArchitectureMismatch>
-    </PropertyGroup>
-  </Target>
-
   <!--
     Do not clean binplace assets in the ref targeting pack to avoid incremental build failures
     when the SDK tries to resolve the assets from the FrameworkList.