Less than a year after promising a groundbreaking, plans to build affordable housing units near Moore Square have been put on pause due to conflicts with the developer, according to a spokesperson with the city of Raleigh. 

In May of 2025, city staff said during a council meeting that a proposed 160-unit affordable project from developer Harmony Housing was set for construction early this year. These units were part of a larger redevelopment plan of city-owned sites just east and south of Moore Square in downtown Raleigh. 

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"As far as this project, it's not a showstopper," said District C councilmember Corey Branch at the time. "The affordable housing component is still moving forward ... that's what is this council's focus."

A residential tower on the Moore Square East side, which city documents state was central to a mixed-use development proposal, was already scrapped from the plan. Back in May, city staff said development company LODEN Properties cited rising interest rates and declining asking rents, adding that, "a residential tower cannot be financed on this site in the current market."

Now, the affordable housing portion of this project has been put on hold after LODEN reportedly withdrew from the broader Moore Square East development proposal, according to the city of Raleigh. 

"Loden has withdrawn from both efforts and their affordable housing partner, Harmony Housing, had an option to lease a portion of the Moore Square East site for their project," said Julia Milstead with the city. "They did not exercise the option before it expired in November and no lease was executed."

Council member Mitchell Silver told WRAL News Tuesday, "It is disappointing the vision to develop the two areas around Moore Square did not come to pass at this time."

Meanwhile, other Raleigh leaders indicated that discussions with Harmony Housing are still ongoing.

"The project will be delayed," said council member Corey Branch. "We don't have a timeframe on it now because we're not sure what the final verdict will be with Harmony or if another RFP is needed. But the goal, the intent, is within this calendar year to find a way to move forward."

Harmony Housing did not immediately respond to WRAL News's request for comment.

A LODEN spokesperson wrote to WRAL News on Tuesday:

Our team remains confident in the long-term strength and trajectory of Downtown Raleigh. We worked collaboratively and in good faith with City staff to establish a valuation of the City's property (east and South) that would have enabled us to deliver the project we proposed in response to the RFP.Ultimately, statutory requirements limited the City's ability to negotiate terms that aligned with our financial framework. The affordable housing component was negotiated separately and was not within our purview; however, we continue to believe that affordable housing is an essential part of a vibrant and inclusive downtown and support its thoughtful integration into future projects. We remain open to opportunities to contribute meaningfully to Downtown Raleigh's continued growth. LODEN Properties

Milstead and Silver said the city is evaluating next steps for the Moore Square East and South properties and is "committed to any vision for the combined sites, including an affordable housing component."