Dan Saltzman pictured in his office in 2014

Commissioner Dan Saltzman pictured in his office in 2014.

(The Oregonian)

The Portland Housing Bureau flexed its contractual muscle this week by formally notifying one of the city's most prominent development companies that it will fight for more affordable housing in the Pearl District.

Under a 17-year-old deal between the city and Hoyt Street Properties, Portland could buy land from the company if Hoyt Street failed to ensure that 35 percent of new units built on its 34 acres were affordable to families or individuals of modest means.

Hoyt Street missed its target and, now, the city in a letter dated Wednesday officially said it wants to buy land to build more affordable units.

To date, only about 600 of the 2,000 units meet affordability standards, and the percentage is expected to dip to 28 percent when new projects are completed in coming years.

Traci Manning, the director for the Housing Bureau, recommended moving forward on the land purchase last week, a spokesman for the agency said Thursday. Commissioner Dan Saltzman, who oversees the bureau, gave Manning the go-ahead on Tuesday, the spokesman said.

The city had until Sept. 8 to formally notify Hoyt Street.

The company -- which includes prominent real estate figures Tiffany Sweitzer and Joe Weston -- has about six acres of vacant, available land remaining. Hoyt Street will select which piece of land, up to half a city block, it will sell to Portland at a discount.

Sweitzer, Hoyt Street's president, did not immediately respond to a request for comment.

-- Brad Schmidt