### Question
How is the "qualified program" defined?


### Answer
The term **qualified program** is defined in *26 U.S.C. § 143* as follows -

> any governmental program providing mortgage loans (other than 1st mortgage loans) or grants—


(i) which restricts (throughout the 9-year period beginning on the date the financing is provided) the resale of the residence to a purchaser qualifying under this section and to a price determined by an index that reflects less than the full amount of any appreciation in the residence's value, or


(ii) which provides for deferred or reduced interest payments on such financing and grants the governmental unit a share in the appreciation of the residence,


  

but only if such financing is not provided directly or indirectly through the use of any tax-exempt private activity bond

#### Citation:
  - *26 U.S.C. § 143*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter B-Computation of Taxable Income > PART IV-TAX EXEMPTION REQUIREMENTS FOR STATE AND LOCAL BONDS > Subpart A-Private Activity Bonds**

