Dennis Greenstein Quoted in the New York Times
“Your Home: Co-Ops Get a Break on Revenue Rules”

Dennis Greenstein was quoted in the article, “Your Home: Co-Ops Get a Break on Revenue Rules,” published December 30, 2007 in the New York Times. The article reports that the Mortgage Forgiveness Debt Relief Act of 2007, which was signed into law by President Bush in December, modifies the 80-20 rule (requiring that no more than 20 percent of the co-op’s gross income come from sources other than tenant-shareholders).

Dennis notes that the measure provides three ways for a co-op to ensure that tenant-shareholders receive the same tax treatment as homeowners: (1) comply with the original 80-20 rule, (2) ensure that at least 80 percent of its total square footage is used by tenant-shareholders for residential purposes, and (3) spend at least 90 percent of its total income for the benefit of shareholders. Dennis remarks, “The second and third alternatives are going to cover most co-op buildings with 80-20 problems… There will be a lot of buildings that will benefit from it.”