In early 1990, Perruzza recommended that North York license and regulate its previously-illegal rooming houses and basement apartments. He argued that the city had an obligation to provide protection to tenants and improve living conditions, but could not do so as long as the dwellings had no legal status. He opposed an 8.4% property tax increase in the same period, and suggested that the city transfer $11.7 million from its planned performing arts centre to make up the necessary operational funds. He argued that developers were being given tax breaks, while residents were required to contribute more at the onset of a recession.