The city of Portland has agreed to pay $7.8 million to the new owners of the Block 216 tower, which houses Ritz-Carlton hotel and condos, a fee after its prior owner declined to include affordable housing units in the building. The deal was uncertain after developer Walter Bowen handed the keys to the building to New York lender Ready Capital last year, which stated that the building owner was "completely underwater" on its construction loan. The total amount due could rise due to interest at a rate of 10% per year. The funds will be used for future affordable housing developments in Portland under a funding agreement that city officials are finalizing by the end of August.