Co-ops to benefit from Bush’s mortgage plan

President Bush’s plan to relieve mortgage debt could be a boon to the city’s co-ops. The Mortgage Forgiveness Debt Relief Act of 2007 will allow co-ops to raise rents for retail tenants, which could bring in more money for doormen and capital projects, and could lead to a drop in monthly maintenance fees. The federal 80/20 law had mandated that no more than 20 percent of the co-op’s income could come from outside sources, which has become a challenge as retail rents have shot up. Now, co-ops need only to show that a building is 80 percent residential, or that at least 90 percent of the total income benefits shareholders.