University May Support Coop Apartment House

The University is negotiating to become a financial backer of Cambridge's first management-type cooperative apartment house. In addition to providing more housing in the lower-middle income bracket, the venture "will accomplish a real purpose by showing that building of this sort can be done here," John W. Teele, Planning Coordinator, stated yesterday.

Teele said that talks will remain in the "sketch study" phase for the next month, until it is determined whether the project is economically feasible. More than one location is being considered for the apartments, but the most likely location is near the old Harvard Bindery between Dunster House and the River St. Bridge.

The University has indicated that its major interest in the project lies with the possibility of introducing cooperative housing to Cambridge as a possible solution to the city's shortage of reasonably priced apartments.

The only cooperative houses now in Cambridge are those in which individual apartments are owned outright, at costs up to $40,000. In a management cooperative, on the other hand, tenants purchase capital stock in a specially set up corporation, and collectively own the apartment house. Tenants reduce the cost of rental by a "mortgage" down payment, and the cost of operation is less because it involves no profit for a realtor.

Teele claimed that the cost of apartments can be reduced by 40 per cent in cooperatives, and pointed out that a substantial part of the rent can be deducted on federal income tax returns.

"The University has no plans to go into the housing business," Teele said. He emphasized that Harvard is interested only in promoting the cooperative house, and plans to take no other part in its operation or construction. In examining the project, the University has been working with the Committee for Cambridge and reportedly with M.I.T. officials.