State College Borough is applying for more than $630,000 in grants from a state program to support two affordable housing projects.
Borough council on Monday voted unanimously to approve the applications on behalf of State College’s two Community Housing Development Organization partners — the State College Community Land Trust (SCCLT) and The HOME Foundation (THF) — to the federally-funded HOME Investment Partnership Program administered by the Pennsylvania Department of Community and Economic Development.
Council also authorized the use of $276,000 from the borough’s inclusionary housing funds for the projects, which include construction of two one-bedroom apartments for income-qualified renters and the purchase and rehabilitation of an existing house to be sold to an income-qualified first-time homebuyer.
One application seeks $396,662 to add two affordable one-bedroom units in a new duplex on the same property as the Old Boalsburg Road Townhomes, which were renovated and reopened as affordable housing units earlier this year in a partnership between SCCLT and THF. SCCLT acquired the land, which will be held for affordable housing in perpetuity, and THF owns the eight townhouse units at 803-817 Old Boalsburg Road.
The new construction next to the townhomes will be done in a similar partnership. SCCLT will develop and construct the duplex, which will then be managed by THF.
An existing land development plan for the property created prior to SCCLT’s purchase proposed adding a two-story home to the site, but Colleen Ritter, the land trust’s executive director, said the two-story duplex made more sense.
“Once we purchased it we recognized this is not a particular site that is conducive for a home ownership project,” Ritter said. “Also, when reviewing the recent data from the Affordable Housing and Homelessness Services Gap Analysis and Action Plan, completed in 2021, the two one-bedroom rental units in a similar footprint of the existing land development plan seemed the best way forward.”
The duplex will be two stories, with the ground level unit ADA accessible.
The total project cost is estimated at $1,056,662. In addition to the HOME program and inclusionary housing funds, Ritter said the organizations plan to seek grants from the Centre County Construction and Acquisition/Rehabilitation for Sustainable Housing (CASH) Grant Program program and the Pennsylvania Housing Affordability and Rehabilitation Enhancement (PHARE) Fund, as well as using their own funds toward the project.
“The idea of having the opportunity to build new-build in the borough is very exciting,” said Morgan Wasinkonis, executive director of THF and its sister organization, Housing Transitions. “This is completely new affordable housing to go up in the borough. It is going to take a lot of effort and support and funding. It’s very expensive to develop any kind of housing, especially affordable housing, so we appreciate the opportunity to apply for these funds through DCED.”
Responding to a question from council member Gopal Balachandran about the total project cost, Maureen Safko, senior borough planner, said several factors cause it to be costlier than it might be for a private developer. Because federal funds are involved, workers will be required to receive prevailing wage. Additionally, construction will follow the Energy+ standards used by SCCLT, THF and the borough.
“So building the walls with additional thickness and a high quality HVAC system to be energy efficient is all an investment upfront early in the project so that the long-term energy cost burden for the residents will be lower,” Safko said.
Ritter added that the estimate is “cautious,” and that it builds in anticipated cost increases for when construction is expected to begin in 2025.
The second grant application is for $241,176 to purchase and rehabilitate a single-family home on East Whitehall Road to be sold to an income-qualified first-time homebuyer.
Wasikonis said THF already has an option to purchase the property and will once again partner with SCCLT.
“This will be a situation where actually the land will be deeded to the land trust when the project is all said and done, so it will be affordable in perpetuity,” Wasikonis said. “It’s a different way of doing things than the HOME Foundation has done in the past, so we’re very excited about that opportunity.”
Council also approved applying for HOME program grants for operating expenses of $86,000 for SCCLT and $72,795 for THF.
“This is very valuable support for us as it represents 50% of our annual operating budget,” Ritter said.
The Community Development Block Grant Citizens Advisory Committee reviewed the proposals and recommended that council approve the grant applications
“I think they’re very strong proposals and I’m sure that when they are funded they are going to be very expertly executed,” committee chair Selden Smith said.
Mayor Ezra Nanes said he is looking forward to the projects coming to fruition.
“I think these are wonderful projects that help us achieve important goals,” Nanes said. “I know that they will be well supported, [and] they will be things people will be proud to see.”
