Advertisement

Harvard Real Estate Inc.:

I that Harvard recived tax abatements and did not inform the Rent Control Board about them; hence, they were not passed along to the tenants. HTU organizers claim that the abatements total nearly $500,000; Silverman says that the Rent Board was fully notified of the abatements and that subsequent rent increases were smaller because of them;

I and that Harvard is increasing rents to cover oil costs without making major efforts to conserve heat. A preliminary study commissioned by the HTU show 86 per cent of tenants lack storm windows, and 73 per cent do not consider their windows "weather tight."

The Crimson this spring investigated HRE and found several instances of questionable behavior by HRE officials. They include:

I Paying prices that may have been as much as three times higher than necessary for painting and plastering in one building, 27 Everett St., and then attempting to pass the costs on to the tenants. The city examiner disallowed some of the costs claimed by HRE, shifting the burden for payment to the University. HRE officials say that the costs were reasonable and that work on the building was atypical because there was not enough time to collect bids from contractors.

IPaying for at least one major job on what the contractor called a "cost-plus" basis. The work, on 18-20 Ware St., cost many thousands of dollars; and invoices show columns marked "ten-per-cent profit." Other contractors in the area said such arrangements are unusual, adding that the contracts could drive up prices.

Advertisement

I Failing to report to the state division of public charities are required by law that a member of the board of directors--Edward M. Strasser--was also one of the five highest paid consultants to HRE in two consecutive years. Zeckhauser acknowledged that there had been internal discussions about whether it was a conflict of interest to have Strasser on the board of directors and on the payroll; other University officials denied that there was any impropriety in the arrangement.

Whatever the validity of their charges, it seems unlikely the HTU and other tenant organizations will fade away. More likely, they will continue to make noise, reminding all who will listen that the growth of Harvard Real Estate comes at a price to its tenants.

Advertisement