Have We Been Wasting Affordable Housing Money?

The tenants of Warren Hall fear they have run out of options. Many have lived in the 33-unit building in the once-low-rent Boston neighborhood of Brighton for decades. Warren Hall's owner participated in the Section 236 program, a housing affordability program that dates back to the Great Society. Section 236 established a network of subsidies and tax incentives to building owners, who also received 40-year mortgages, and in exchange had to keep rents priced affordably for low- to moderate-income families.

This section of Brighton has seen its fortunes change along with the rest of the city. After struggling through the mid-century urban crisis, early 21st century Boston is one of America's hottest housing markets. There are few neighborhoods in the city that haven't been affected, and the western Brighton section-sandwiched between Cambridge to the north and Brookline to the south-is no exception.

And like the rest of the buildings in the 236 program, Warren Hall has reached the end of its 40-year mortgage term and its accompanying rent restrictions; and its owners, New York-based real estate firm the Olnick Organization, want to cash in. After years of wrangling with Olnick and seeking some way to keep their rents from rising, the tenants have run out of options.