HRE Professes Rent Control Neutrality

Although it is one of Cambridge's biggest landowners, Harvard Real Estate (HRE) is not taking a position on the upcoming referendum on rent control.

Question Nine, which could ban rent control across the state, would result in a financial gain for the University if it passed, as HRE would be able to charge higher rents and would have greater freedom with its properties.

But HRE's assistant vice president of residential housing, Susan K. Keller, said in an interview that Harvard is not staking out a position on the issue.

"We will work with whatever outcome occurs," Keller said. "Like Cambridge, the Harvard community is very diverse. So we're netural on it."

But Malcolm Kaufman, a pro-rent control activist, said he thinks HRE's position is "a formality."

"I think any large real estate holder is in favor of Question Nine," Kaufman said yesterday. "It probably makes sense to take a position of neutrality. I'm sure there's quiet chatter around the real estate office."

"They're opposed to [rent control] in their minds but they're keeping their mouths shut," Kaufman said.

Still, Kaufman said that he won't complain about HRE's official position.

"In the real world, we're probably better off," Kaufman said. "If they decide not to put a lot of resources into the campaign, we're better off. They're certainly not going to come out on our side . If they're essentially neutralized, that's better for us."

Not Substantial

Keller also said that HRE's windfall if rent control were banned would not be substantial.

In fact, she said, HRE has not even quantified the figure.

"To tell you the truth, we haven't even thought about it in that context," Keller said.

But she said that HRE acquires property that isoften in a "state of disrepair."

Indeed, she said, HRE has invested $15 millionover the years to shore up dilapidated properties.

Because of these investments, Keller said, "wehave not been projecting any kind of windfall."

Rents will also not necessarily risedramatically. "There are a lot of tenants," shesaid. "We have to be prudent and responsiblelandlords."

Keller also said that many of Harvard's rentswould not be affected by a rent control ban, sincemany of them are already close to the marketprice.

Kaufman agreed with this statement "preciselybecause they work the system so aggressively."

He said HRE's "only big money would be fromselling....the next landlord may not haveHarvard's resources" to secure higher rents.

The removal of that barrier to higher rents,Kaufman said, would sent the value of rental unitssoaring.

Kaufman conceded that Harvard is unlikely tosell many of its properties. "Harvard is anaccumulator, not a seller," he said.

But the higher property values are incentiveenough for Harvard to want Question Nine to pass,he said. This is especially true for when Harvardwants to make a swap involving some of its land,which it has done in the past, Kaufman said

But she said that HRE acquires property that isoften in a "state of disrepair."

Indeed, she said, HRE has invested $15 millionover the years to shore up dilapidated properties.

Because of these investments, Keller said, "wehave not been projecting any kind of windfall."

Rents will also not necessarily risedramatically. "There are a lot of tenants," shesaid. "We have to be prudent and responsiblelandlords."

Keller also said that many of Harvard's rentswould not be affected by a rent control ban, sincemany of them are already close to the marketprice.

Kaufman agreed with this statement "preciselybecause they work the system so aggressively."

He said HRE's "only big money would be fromselling....the next landlord may not haveHarvard's resources" to secure higher rents.

The removal of that barrier to higher rents,Kaufman said, would sent the value of rental unitssoaring.

Kaufman conceded that Harvard is unlikely tosell many of its properties. "Harvard is anaccumulator, not a seller," he said.

But the higher property values are incentiveenough for Harvard to want Question Nine to pass,he said. This is especially true for when Harvardwants to make a swap involving some of its land,which it has done in the past, Kaufman said