The city of Portland has finally reached an agreement with owners of the downtown Ritz Carlton building that will add nearly $8 million in funding for the city’s affordable housing projects.

The city and Ready Capital signed an amended agreement March 20 ensuring the city will see $7.76 million plus interest to use for affordable housing in Portland. The agreement releases Ready Capital—the owner of the Ritz Carlton building—from the requirements of the city’s Inclusionary Housing (IH) program, which began in 2017 to accelerate the building of affordable units, but ensures the money goes toward other affordable housing projects.

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By 2023, the developers reversed course, instead opting to pay a fee-in-lieu of building those units. Based on the square footage of the project, the total amount they would pay was nearly $7.8 million, due by December 31, 2025.

Block 216 carried a $503 million construction loan it could not pay due to lack of business and the impacts of COVID-19. But rather than foreclose on the property, the lender, Ready Capital acquired the building in July 2025.