The University has sent to tenants at the Craigie Arms apartments its final proposal to settle a dispute over the residents' charge that Harvard violated the Cambridge rent control ordinance by intentionally keeping empty units off the housing market.

The proposal, hand-delivered to tenants on Friday, sets an end-of-summer deadline for tenants to move out of the 122 Mt. Auburn St. building, Associates, the developer Harvard has chosen to perform a $2.5 million renovation on the 80 year-old structure.

The settlement would also offer tenants more than $1500 to cover moving costs and increased rents at their new homes.

Of most interest to tenants, who had hoped to receive a guarantee from Harvard about improving its future treatment of tenants as well as an admission of guilt in the Craigie case from the University, is a short discussion of the future use of the apartments and a section on the history of the building.

Kuehn has promised that at least 25 percent of the space in the building renovated for luxury condominiums would be reserved for low-and moderate-income residents.

Spokesmen for tenants and the University declined specific comment on details of the proposal.

In a November hearing before the Cambridge rent control board, the tenants charged that Harvard owed the city more than $3 million in fines for violating a set of housing ordinances. But the tenants subsequently agreed to seek a private settlement with University representatives.