Residents of a downtown State College building for low-income older adults could potentially have more than a year longer to remain in their apartments than they we originally told ahead of a proposed redevelopment of the property, according to borough officials.
Arnold Addison Court tenants received an initial letter from property manager Calibre Residential on Dec. 8 informing them that the privately-owned building at 120 E. Beaver Ave. is “currently under consideration by new investors” and that all current leases would have an end date of Nov. 30, 2026.
Now, borough staff believe the owner might be required to allow most to stay until the end of 2027.
The income-restricted apartments for individuals 62 and older or with disabilities was constructed in 1994 using Low Income Housing Tax Credits, and the 30-year affordability requirements attached to those expired at the end of 2024. Owner Beaver Court Associates LP no longer has a long-term obligation to maintain the property as affordable housing, and a developer submitted a preliminary land development plan to the borough on Dec. 5 for a proposed new seven-story, mixed-use building on the Addison Court site.
In a letter to Addison Court residents on Dec. 23, however, State College Planning Director Ed LeClear wrote that staff from the borough and the Pennsylvania Housing Finance Agency, which administers the LHTC program in the commonwealth, have “reviewed legal documents related to the property” and believe many tenants have a right to stay through December 2027.
“Based on that review, it is both Borough and PHFA staff’s understanding that tenants who were under lease at Addison Court as of December 31, 2024 may not be displaced, evicted or have their lease terminated prior to December 31, 2027,” LeClear wrote.
He added that the letter should not be considered legal advice and wrote that “Borough staff will be in contact with tenants in Addison Court if we become aware of additional information regarding sale of the building that would affect existing leases.”
As of 2019, the most recent figures available, 56 of the one- and two-bedroom apartments in Addison Court had Section 8 vouchers, 74 units were rented to households with incomes of less than 60% of the median area income for State College and 15 units were rented to households with incomes less than 50% of the median, Borough Manager Tom Fountaine said at Dec. 15 Borough Council meeting .
According to records provided to the borough in early December, 29% of the units in the building are currently vacant, with 63 of the 89 apartments leased, Fountaine said.
Because of its interest in making affordable senior housing available downtown, the borough provided a $440,000 loan for the original property acquisition to develop Addison Court, and that was repaid in full in 2012. It has no ownership stake in the building, and Council President Evan Myers said that while Addison Court is important to the borough, State College is limited in what it can do.
“Clearly, we have a strong interest in the property. This is an important apartment complex and housing unit in downtown State College, and that is of critical importance in the community,” Myers said at the Dec. 15. “But … I think it’s important that the community understand the legality and the real estate and who owns what and what we can do and what we can’t do. And what we can’t do is have an impact on this particular property as it exists now. As long as people have submitted a plan or are going forward under the current law, we have to abide by that.”
Primecore, which co-developed the neighboring Pugh Centre, submitted the preliminary land development plan for the new building, which is referred to in the documents as “Encore.” The plans show a U-shaped building that essentially mirrors the Pugh Centre, with underground parking, first-floor commercial space and six floors of apartments.
Ara Kervandjian, a State College-based developer and CEO of Primecore, did not respond to StateCollege.com’s request for comment.
The plans are scheduled for review by the borough’s Design Review Board at 2 p.m. on Jan. 6 and Planning Commission at noon on Jan. 7.
The Addison Court issue is also expected to be discussed at future Borough Council meetings. After a reorganization meeting at noon on Jan. 5, the council’s next regular meeting is scheduled for 7 p.m. on Jan. 12.
