"It won't do everything, but it is an important step," he said. "The fact that Harvard stepped in to fill the void is a real show of leadership."

Setting an Example

Fund managers said Harvard's $21 million housing allocation could spur other universities and community institutions to take similar steps.

"This is the first time that a major civic institution has taken part of their financial assets to support community development," BCC's Jones said. "Other universities and institutions in Cambridge and across the country will look at this as a model."

Although no other area college has made such a large, single outlay, area colleges said they are already doing their part.

"I think MIT has a very strong track record in affordable housing," said Sarah E. Gallop, co-director of government and community relations at MIT.

Harvard Vice President of Government, Community and Public Affairs Paul S. Grogan said the University's location distinguishes its efforts from those of colleges in other parts of the country.

Because Cambridge and Boston are "in robust health," the University does not face the immediate problem of an unsafe or economically downtrodden location, according to Grogan.