qualified program
(10) Treatment of resale price control and subsidy lien programs (A) In general In the case of a residence which is located in a high housing cost area (as defined in section 143(f)(5)), the interest of a governmental unit in such residence by reason of financing provided under any qualified program shall not be taken into account under this section (other than subsection (m)), and the acquisition cost of the residence which is taken into account under subsection (e) shall be such cost reduced by the amount of such financing. (B) Qualified program For purposes of subparagraph (A), the term “qualified program” means 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.