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Closing Loopholes or Blocking Growth?

Charles Laverty, president of the management firm Laverty Associates, says that even the current city policy that requires rent board approval for any repairs or rent hikes is too restrictive. "The buildings are getting shabby because landlords can't afford to repair them," Laverty says.

Some city politicians also oppose rent capping "Tenants want the owners to take care of properties, but they're not getting enough rent as it is," says Councilor Walter J. Sullivan, a member of the conservative Independent bloc on the council.

Even CCA-endorsed Councilor David A Wylie is opposed. "I'm in favor of its general aims and objectives, but I think capping itself is illegal," Wylie says. He explains that the Cambridge Rent Control Enabling Act, the state law that in 1973 made rent control possible, requires that landlords give a fair return on their investments.

"If we didn't have rent increases, we would lose rent control altogether," Wylie adds. "I don't think it is wise to put things on the ballot that mislead people as to what can be done." Wylie was one of the councilors who voted down the referendum when it came before the city council in August.

Turk, however, maintains that the first referendum provision lowers the cost of funds for landlords, and that there should be enough room in the new guidelines to allow landlords to make reasonable repairs.

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The last three points on the referendum address zoning problems.

*Requiring any new commercial and residential development to provide housing units for low-and moderate-income people:

*Rezoning vacant land to promote new housing, especially for families:

*Replacing, one-for-one, units housing low- to moderate-income people when such units are lost to commercial development or university expansion.

Such provisions outline an inclusionary zoning program similar to the one recently begun in Boston. Under Boston's "linkage" plan, commercial developers must build a certain amount of housing in the city--although not necessarily on the same site--whenever they put up a non-residential building.

Cambridge currently has no inclusionary zoning laws, and motions before the city council suggesting such laws have failed. However, the city has currently set up a group to study linkage in Boston, says Les Barber, project planner for the Community Development Office.

Turk cites Kendall Square as an example of the need in Cambridge for inclusionary zoning. He says that the recent surge of commercial development there has created an impossibly tight housing market.

"Zoning power is invested in the city to provide for general welfare, and the city should use it wisely and in that fashion," Turk says.

Another problem with the increasing rents in Cambridge is the so called "gentrification" of the city; its transition from an area dominated by blue-collar families to a "bedroom community" of upper-middle class communters.

The referendum criticizes the city for planning large new office and commercial developments but building no new housing.

But landlords counter that such a move would hurt the city economically. Thayer says there is sufficient capital risk in getting a project started that such stringent restriction would drive new development out of town. Laverty adds that a lack of development would decrease the tax base in the city.

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