### Question
How is the "qualified rehabilitation loan" defined?


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

> any owner-financing provided in connection with—


(i) a qualified rehabilitation, or


(ii) the acquisition of a residence with respect to which there has been a qualified rehabilitation,


  

but only if the mortgagor to whom such financing is provided is the first resident of the residence after the completion of the rehabilitation

#### 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**

