CORRECTION:

An article on page three of yesterday's Crimson incorrectly described realtor Fred Meyer's initiative petition, Proposition 1-2-3.

The petition, which supporters want to place on the 1989 municipal ballot, would not use a "means test" to let only low-income tenants live in rent-controlled housing. Such a law would be illegal.

Instead, Proposition 1-2-3 would:

1. allow tenants of two years or more to buy their units, whether they are under rent control or not.

2. exempt single-family homes from rent control if they have been owner-occupied for two years or more. The rule would apply to owners who move out and rent their former homes to tenants.

3. create a fund for poor tenants using two-thirds of the increase in city revenue caused when tenants buy their units, thus converting them into condominiums. This part of the proposition would impose a "means test" only to decide who should receive money from the fund.