HRES proposes 2007-08 rents for Affiliated Housing

Per University policy, Harvard Real Estate Services (HRES) is required to charge market rent for its housing. To establish proposed rents for 2007-08, HRES performed a regression analysis on three years of market rents for more than 4,000 neighboring apartments, all of which were voluntary postings at the Harvard Housing Office by non-Harvard property owners. The results of this analysis were reviewed and endorsed by an external expert, Jayendu Patel of Economic, Financial, & Statistical Consulting Services. Furthermore, HRES conducted an additional study of private rental market apartments of similar size and quality to HRES apartments. The results of the market research demonstrate that market rents are increasing at a moderate but steady rate and that HRES rents must rise to keep pace.

The “market increase” that is analyzed and proposed by HRES applies to new rentals. Continuing tenants pay a different and often lower increase. The proposed rent increases described below have been reviewed by the Faculty Advisory Committee on Affiliated Housing (described below) and will take effect July 1 for a term of one year.

All revenues generated by Affiliated Housing in excess of operating expenses and debt service are used to fund capital improvements and renewal of the facilities in HRES’s existing portfolio.

Proposed 2007-08 continuing rents for Harvard affiliates: Current Affiliated Housing residents who choose to extend their lease for another year will receive either a rent increase of 2 percent or will be charged the new market rent for their apartment, whichever rent is lower. Heat, hot water, electricity, and Harvard Internet service are included in the majority of Harvard’s Affiliated Housing apartment rents.

Harvard affiliate residents will receive an e-mail from HRES in March with instructions on how to submit a request to either extend or terminate their current lease. Residents who would like additional information or help in determining their continuing rent rates for 2007-08 may call Harvard’s Affiliated Housing Leasing Office at (617) 495-1459.

Proposed increases for continuing former rent control residents: Proposed rent increases for continuing former rent control residents who reside in Harvard’s properties will be announced in late March or early April.

Proposed 2007-08 rents for new Affiliated Housing leases: HRES’s research for its proposed 2007-08 rents resulted in a recommendation that the overall new market rents for all new residents should increase, on average, by just over 3 percent, starting on July 1. In support of Harvard’s fair market rent policy,* which is applied on a unit-by-unit basis, rent rates will increase for the majority of unit types, while some rent rates will stay at their current levels.

Written comments on the proposed rents may be sent to the Faculty Advisory Committee on Affiliated Housing, c/o Harvard Real Estate Services, 7 Holyoke St. – Mezzanine Level, Cambridge, MA 02138. Comments to the committee may also be sent via e-mail to leasing@camail.harvard.edu. Any written comments should be submitted to either of the above addresses by Feb. 22.

The comments received will be reviewed by the Faculty Advisory Committee, which includes William Hogan, Raymond Plank Professor of Global Energy Policy, Kennedy School of Government; Jerold S. Kayden, Frank Backus Williams Professor of Urban Planning and Design, Graduate School of Design; Daniel P. Schrag, professor of earth and planetary sciences; Howell Jackson, James S. Reid Jr. Professor of Law, Harvard Law School; and James Gray, associate vice president, HRES chair. After the comments are reviewed and considered, the final rent schedule will be published in March.

Variety of housing available from HRES

Harvard Real Estate Services manages approximately 3,000 apartments, offering a broad choice of styles, amenities, and sizes to meet the individual budgets and housing needs of Harvard affiliates (full-time graduate students, faculty members, or employees). Apartments available are standard and double studios; standard and convertible one bedrooms; and two-, three-, and four-bedroom units. HRES also announces its newest Riverside Area Affiliated Housing properties, which will open in the summer. Five Cowperthwaite Street will feature common and study rooms, a fitness center, a laundry room, landscaped yard, bicycle storage, and underground parking. All 141 apartments include a dishwasher, disposal, microwave, carpeted floors, and cable. Additionally, new two- and three-family homes on Banks and Grant streets (totaling 22 apartments) will offer an array of amenities including gas fireplaces, dishwashers, disposals, and hardwood floors; many will also have washer/dryer access. All of the new properties include heat, hot water, electricity, air conditioning, and Harvard Internet service in the cost of the rent.

Affiliates of the University may apply for housing at http://www.hres.harvard.edu/rre.htm (click on Affiliated/Residential Housing). The homepage also provides information about additional housing options and useful Harvard and community resources for incoming and current affiliates.

New Market Rents for New Residents Effective July 1, 2007

• 18 Banks/8A Mt. Auburn: (no utilities included): one bedrooms $1,455-$1,545; two bedrooms $1,833-$1,894.
• Beckwith Circle (all utilities included): three bedrooms $2,058-$2,118; four bedrooms $2,542-$2,608.
• Botanic Gardens (all utilities and Harvard Internet service included): one bedrooms $1,449-$1,499; two bedrooms $2,020; three bedrooms $2,368.
• 472-474 Broadway (heat and hot water included): one bedrooms $1,485.
• 5 Cowperthwaite St. (all utilities included): studios $1,331; one bedroom convertibles $1,661; two bedrooms $2,052.
• 27 Everett St. (all utilities included): one bedrooms $1,419-$1,638; three bedrooms $2,310-$2,474.
• 29 Garden St. (all utilities and Harvard Internet service included): studios $1,237-$1,257; double studios $1,698-$1,778; two bedrooms $2,060-$2,090; three bedrooms $2,393-$2,413.
• Harvard @ Trilogy (all utilities and Harvard Internet service included): studios $1,224-$1,264; one bedroom convertibles $1,745-$1,785; double studios $1,869-$1,909.
• Haskins Hall (all utilities included): studios $1,177; one bedrooms $1,419.
• Holden Green (no utilities included): one bedrooms $1,245-$1,430; two bedrooms $1,545-$1,670; three bedrooms $2,087.
• 2 Holyoke St. (all utilities included): one bedrooms $1,379-$1,490.
• Kirkland Court (all utilities included): one bedrooms $1,462-$1,572; two bedrooms $1,799-$1,985; three bedrooms $2,372-$2,524.
• 1306 Massachusetts Ave. (heat, hot water, and cooking gas included): studios $1,245; one bedrooms $1,488; two bedrooms $1,845.
• 65 Mt. Auburn St. (all utilities included): studios $1,269; one bedrooms $1,532-$1,568; two bedrooms $1,902.
• Peabody Terrace (all utilities and Harvard Internet included): studios $1,125-$1,158; one bedrooms $1,333-$1,363; two bedrooms $1,630-$1,660; three bedrooms $2,467.
• 8 Plympton St. (all utilities included): studios $1,211-$1,262; one bedrooms $1,550; two bedrooms $1,920-$1,980; three bedrooms $2,505.
• 16 Prescott St. (heat and hot water included): studios $1,150; one bedrooms $1,387-$1,437.
• 18 Prescott St. (heat and hot water included): studios $1,150; one bedrooms $1,387.
• 20-20A Prescott St. (all utilities included): studios $1,211; one bedrooms $1,463-$1,575; two bedrooms $1,903; three bedrooms $2,493-$2,705.
• 85-95 Prescott St. (all utilities included): studios $1,200-$1,250; one bedrooms $1,545.
• Shaler Lane: (no utilities included): one bedrooms $1,359; two bedrooms $1,655-$1,730.
• Soldiers Field Park (all utilities and Harvard Internet included): studios $1,236-$1,332; one bedrooms $1,469-$1,559; two bedrooms $1,797-$1,949; three bedrooms $2,452-$2,557.
• Terry Terrace (all utilities and Harvard Internet included): studios $1,224-$1,254; one bedrooms $1,467-$1,562; two bedrooms $2,020.
• 9-13A Ware St. (all utilities included): studios $1,188; one bedrooms $1,439; two bedrooms $1,787.
• 19 Ware St. (heat and hot water included): two bedrooms $2,280; three bedrooms $2,416.
• One Western Ave. (all utilities and Harvard Internet service included): studios $1,406; one bedrooms $1,668; two bedrooms $2,062-$2,122; three bedrooms $2,718.
• Wood-frame buildings, Agassiz area (inclusion of utilities varies by property): studios $1,312; one bedrooms $1,485; two bedrooms $2,254; three bedrooms $2,136; four bedrooms $2,682.
• Wood-frame buildings, Harvard Square/mid-Cambridge area (inclusion of utilities varies by property): studios $1,110; one bedrooms $1,329; two bedrooms $1,606.
• Wood-frame buildings, Riverside area (inclusion of utilities varies by property): one bedrooms $1,221; two bedrooms $1,644; three bedrooms $2,057.
• New construction, wood-frame buildings, Banks and Grant streets (all utilities and Harvard Internet service included): one bedrooms $1,735; two bedrooms $2,241; three bedrooms $2,819.

* In keeping with the University’s fair market rent policy that was established in 1983 by a faculty committee chaired by Professor Archibald Cox, the rents for Affiliated Housing are set at prevailing market rates. The original faculty committee determined that market-rate pricing was the fairest method of allocating apartments and that setting rents for Affiliated Housing below market rate would be a form of financial aid, which should be determined by each individual School, not via the rent-setting process. Additionally, the cost of housing should be considered when financial aid is determined.