HARVARD OFFICIALS: 'Our objective is to attract and retain faculty members. This is not a gimmick to raise Harvard rents.'

THE TENANTS: 'Disastrous and irresponsible. Harvard wants to make a nice quick profit.'

When Harvard buys up apartment space in the area local residents complain says Sally Zeckhauser president of Harvard Real Estate (HRE). But when Cambridge's largest landlord gets out of the market as it is doing now local residents complain, she adds.

It seems that 'Harvard just can't win.

That's Harvard's version.

To hear the tenant organizers tell it, Harvard is getting out of the market to make a quick profit and bypass Cambridge rent control laws.

By selling small apartment buildings to Harvard faculty members the tenants say, Harvard is cutting into the city's pool on rent controlled housing, because owner occupied buildings housing three families or less are not subject to rent control under Cambridge law.

The Cambridge City Council in its regular meeting this week expressed sympathy for the tenants and it looks like another classic town gown battle is shaping up as councilors will probably consider rezoning laws in an effort to halt the sales.

Harvard is looking to sell more than 50 apartment buildings in response to increased demand for faculty residences near campus perhaps also because of the difficulties of land lording with in Cambridge's strict rent control regulations.

"We're not looking to make top dollar," says HRE Vice President Nancy E. Kossan. Instead the units are being sold at near their tax appraised value.

Zeckhauser characterizes the policy as a "turning inward," to better serve the Harvard community. In addition to selling the buildings to faculty members, HRE is taking other steps, including the creation of a new administrative position to advice faculty on housing to be filled next semester.

"Our objective is to attract and retain faculty members and when they are making their decisions they ask. Can I buy a house here and how much would it be?" Kossan explains. Last month for instance Cornell German literature specialist Sander Gilman turned down a Harvard tenure after partially because of the Cambridge housing situation.

"This is not a gimmick to raise Harvard rents," Zekhauser says.

In fact she adds the divesting will have "positive benefits" for tenants such as increased responsiveness by the resident landlords. The University has always found the smaller units like the two and three family apartments now being sold difficult and expensive to maintain.

The tenants aren't buying it. They charge Harvard with offenses ranging from dishonestly and inconsiderateness to rushing senselessly after profits to the detriment of the community. City councilors who called the sales a circumvention of the law may well step in during the next month by changing the rent control rules, but the University would undoubtedly resist.

Carl P. Nagin an Expos teaching assistant on leave this team waited a year for the opportunity to rent a Harvard apartment at 70 Hammond St. for $250 a month. One of the other tenants in the three family building moved out in October and Harvard has plans to sell hopefully to a faculty member. When it does it the new owner moves in the remaining tenants will no longer benefit from Cambridge's strict control of rents and landlord relations. Nagin says his rent could climb to as much $900 in which case he would be forced to look for another of the very few available affordable apartments in the area.

Nagin and others maintain the University should be doing more to help its tenants relocate at the very least, HRE officials say the residents will be able to rejoin their waiting list for housing, but that list is too long to be of much help, according to tenants. Nagin and Michael H. Truk head of the Harvard Tenants Union are also upset because HRE didn't give him and other tenants notice of their intentions cutting the time to scout for new housing. Nagin speculates the Harvard run agency was primarily interested in collecting rent for as long as possible before a sale.

Turk calls the policy "disastrous and irresponsible," accusing HRE of trying "to make a nice quick profit" at residents expense.

According to tenants, Harvard will probably make a large profit from the sales because many three family buildings are appraised at higher prices than larger multi units, which must remain under rent control even if they are owner occupied. The new landlords may more than triple present rents in order to compensate for the high sale price they taking the units out of the reach of most Cambridge residents tenants add.

Turk says he also objects to what he terms the erosion of the Agassiz and Riverside neighborhoods as Harvard expands its holdings there. He adds selling more apartments to affiliates would all but absorb those areas into the campus.

In the past Harvard and city residents have clashed over the University's skirting of rent control Last spring. HRE made capital improvements in several apartments, which according to rent control regulations is an acceptable reason for raising rents.

But the rules also stipulate permits for significant construction must be obtained through the city and Harvard neglected to do this. Tenants say that the work was unnecessary and that HRE just used them as an excuse to get around the law. HRE officials attributed the violations to oversight on the part of the contractors hired by the University.

The dispute over the Harvard owned Craigie Arms will most likely remain in litigation for some time to come. The University is asking for an exemption from rent control on the grounds that substantial renovation is necessary. The city on the other hand would not like the building made into condominium housing and believe costly rehabilitation could keep rents there in the low and moderate range.