The downtown Raleigh development project that was supposed to be a blueprint for the city’s future affordable housing efforts quietly fell through late last year. The collapse of the Moore Square-adjacent redevelopment and revitalization project that included 160 affordable apartment units on city-owned property raises questions about the city’s ability to successfully execute on its long-term housing strategy.
In 2022, the city of Raleigh partnered with two development firms, Loden Properties and Harmony Housing Affordable Development, to build a mixed-use development on two city-owned parcels near Moore Square. Together, the Moore Square South and East sites were originally supposed to include a hotel, shops, restaurants, a grocery store, and a 160-unit affordable apartment complex.
The project hit financial headwinds last year, but the Triangle Business Journal reported at the time that the affordable housing component, for which Harmony Housing was responsible, was still on track. In May 2025, city staff told the council that construction would begin on the apartments in January 2026. In October, the city approved $32 million in financing to help pay for the development.
But in November, a city spokesperson told the INDY this week, the entire development proposal fell apart.
“The Moore Square Affordable Housing project was a component of the broader Moore Square East development proposal submitted by Loden Properties, which also included the Moore Square South site,” city spokesperson Julia Milstead wrote in an email. “Loden has withdrawn from both efforts and their affordable housing partner, Harmony Housing, had an option to lease a portion of the Moore Square East site for their project. They did not exercise the option before it expired in November and no lease was executed.”
Harmony Housing is based in Raleigh and specializes in affordable housing financing, construction, and rehabilitation. According to the company’s website, it has partnered with other cities on similar projects to build hundreds of affordable housing units. The INDY has reached out to Harmony Housing for more information about what happened.
Raleigh has an acute housing shortage, and affordable housing is especially scarce. Ever since Loden won the bid for the Moore Square project, city leaders have touted it as a shining example of the work they’re doing to ease the housing crunch. The project exemplified many of Raleigh’s affordable housing strategies and priorities: utilizing city-owned land, seeking out public-private partnerships, building near jobs and transit, and catering to a range of incomes (the units would have been priced for residents earning between 30% and 80% of the area median income).
“This project helps make downtown living a reality for working families, and individuals who want to be part of the City’s vibrant core,” read the city’s October press release about the project.
Now that Loden and Harmony Housing are out, the future of the Moore Square sites is in limbo.
“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,” Milstead wrote.
This is a developing story. Check back for updates.
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