"We as an association have always encouraged landlords to consider Section 8 as a way of getting good tenants and good income," he said.

In response, the city encouraged landlords to reconvert more than 100,000 S.R.O. units to full-service apartments, a policy that has haunted the city ever since.

To encourage landlords to list with Cityfeet, listings are free, although the two executives say they intend to charge a fee once the system proves its value.

When the real-estate market was booming and few apartments were available, the payments encouraged landlords to renovate their properties to lease them to the homeless.

And they worry that even weak forms of vacancy decontrol will encourage landlords to harass tenants, especially those who complain or go to court.

That possibility encourages landlords to hold on to rental units, since rents might increase.

"There are some who argue that that would not improve the situation, but merely encourage landlords to increase their rent without making improvements," Mr. Dowling said.

In past years, the Garden City Village Board, assuming a laissez-faire attitude, had encouraged tenants and landlords to negotiate on their own.

"How can we encourage either tenants or landlords who have legitimate grievances to use this institution if the court's administrative arm only complicates the hardships they are already experiencing?"

He said such a provision would have encouraged landlords to dismiss veteran workers and hire new ones.