The Pennsylvania Attorney General’s Office has reached a settlement with the ownership group of three student apartment buildings in State College accused of improperly terminating the leases of more than 100 tenants last year, the state’s top prosecutor said on Wednesday.
Four limited liability companies that constitute the ownership group — 917 & 1013 Allen St. LLC; 1006 S Pugh St, LLC; Happy Valley Fund I, LLC; and Happy Valley Fund I Manager, LLC — agreed to pay $75,000, including $60,000 in restitution and $15,000 in costs.
Restitution checks will be mailed to affected former tenants of Allen Park (1013 S. Allen St.), Lenwood Place (917 S. Allen St.) and Mount Nittany apartments (1006 South Pugh St.), Attorney General Dave Sunday said in a release.
The ownership group acquired the three complexes in April 2025, and at the time tenants had leases extending until August 2026. With plans to perform extensive renovations to each of the buildings soon after the purchase, the owners, through property managers Continental Real Estate Management, Inc. and Ethos Residential, LLC, contacted current and future tenants of 104 units seeking to terminate the leases, citing expected construction conditions, according to the release.
A letter sent to tenants indicated the work would create “unpleasant conditions,” such as noise and dust, and that assistance finding another place to live would be provided.
“Many of the tenants reported that the relocation subjected them to less favorable housing options, additional financial expenses, and undue stress,” according to the filing. “Most tenants reported that they received no financial compensation or assistance … despite the hardships that they incurred due to the unexpected relocation.”
The settlement alleges that the owners terminated leases without legal basis under Pennsylvania’s Landlord-Tenant Act. It also alleges they failed to disclose to tenants in a timely manner that the pending property sale and related renovations would negatively impact the ability to use their rental units, and induced residents to terminate their leases by misrepresenting their legal duty to tenants to provide safe and habitable housing free of disruption.
“For many young people, college is their first time living on their own,” Sunday said in a statement. “These apartments were legally leased out for several additional months and the property owners and their representatives tried to illegally end those leases early. This settlement will provide the previous tenants some financial restitution to recoup some of the costs associated with having to suddenly find a new place to live.”
Christopher Albright, managing partner of Ethos Residential, is named in the assurance of voluntary compliance as an authorized member of each of the ownership LLCs. Albright and Ethos Residential did not immediately respond to a request for comment.
Under the umbrella “Allen & Pugh” two of the apartment buildings have been rebranded by the new management. Allen Park is now Penny by Allen & Pugh and Lenwood Place is now Allegory by Allen & Pugh.
A related LLC also acquired College Park apartments, 415 W. College Ave., which is now part of the Allen & Pugh brand as well.
