Though residents of Addison Court may have more time to stay in their homes than originally thought, they remain worried about where they will go next as plans to redevelop the downtown State College apartment building advance.
The privately-owned complex at 120 E. Beaver Ave. has operated as low-income apartments for seniors and people with disabilities since it opened in 1994. The affordability requirements of the Low-Income Housing Tax Credits used in its development, however, expired at the end of 2024, and developer Primecore recently submitted plans to demolish it and construct a new seven-story building primarily for student apartments.
“It’s very difficult for me to find something that’s handicap-accessible and affordable,” Addison Court resident Kathryn Santoro said during public comment at Monday night’s State College Borough Council meeting.
Tenants received a letter in December from building manager Calibre Residential stating that the property is “under consideration by new investors” and that all current leases would have an end date of Nov. 30, 2026.
Staff from the borough and the Pennsylvania Housing Finance Agency, which administers the tax credit program in the commonwealth, reviewed legal documents related to the property and determined a deed covenant prohibits the eviction of tenants who resided there as of Dec. 31, 2024 without cause before Dec. 31, 2027 because of a required three-year wind-down period, State College Planning Director Ed LeClear said at a recent Planning Commission meeting.
The extra year for many tenants has been of little solace to Santoro, who uses a wheelchair and just moved into the building in the fall.
“I was not told about this [when she moved in], that I’m going to have to find another place to live,” Santoro said. “And I came to Addison Court because it’s 55 and over and I wanted to be close to the community.”
She added that low-income and senior housing in places like Bellefonte and Boalsburg are not an option because of limited public transportation.
“What about single, older people? When you’re planning stuff for a community, you have to think of everybody, not just the students,” Santoro said.
Lee Nielsen, who has lived in Addison Court for about 10 years, said that being close to downtown has been crucial for tenants of the building.
“It’s been very helpful to me to live right in the middle of town,” she said. “Everything is available: drug stores, little grocery stores, library … all the really great places that you can walk to I can walk to with this. So now if you’re going to knock this building down and build something else, what are we supposed to do?”
Tenant Richard McCarty, who has epilepsy and Parkinson’s disease, said he is no longer able to drive and that some of his neighbors have difficulty leaving their apartments.
He added that while there are other older buildings in State College that may be appropriate to replace, Addison Court, where 63 of its 89 apartments are currently leased, is “relatively new” and serves an important purpose.
“I do not know of any other place aside from Addison that basically operates such as it does,” McCarty said. “The vast majority of other apartments and similar housing places and such are for students, of which I fully understand. I was once a Penn State student … and you need the student housing in State College. But there are other people that need housing options and stuff, you know, and they cannot go to Bellefonte. They need these options within State College.”
The planned U-shaped building proposed for the Addison Court site is designed to structurally mirror and abut the neighboring Pugh Centre, which was co-developed by Primecore. It would have two 2,120-square-foot spaces for commercial tenants on the ground floor, six levels with with 40 apartments, a rooftop terrace and underground parking. Four apartments will be designated for inclusionary housing.
At the Jan. 7 Planning Commission meeting, Primecore land development attorney John Haschak said the goal is to help Addison Court residents transition to new housing over the next two years.
“The goal isn’t to wait until December 31 of the last year until everybody is gone,” Haschak said. “The goal is to work over that [wind-down] period to relocate people, assist people, figure out an option for the existing residents. If that happens sooner rather than later, construction starts sooner… So while the tenants and the PHFA may have enforcement rights, the goal is to certainly use the wind-down period to wind down and not just wait till the last minute and create chaos.”
Haschak noted that Primecore and its affiliates have developed multiple low-income housing complexes and that the company understands the obligations under the tax credit program. Primecore’s CEO is State College-based developer Ara Kervandjian, one of the area’s most prolific developers of low-income housing in recent years and whose projects have included the 40-unit Evergreen Heights, income-restricted apartments in College Township for individuals 62 and older.
The Centre County Housing Authority has been notified to assist Addison Court residents with next steps, and State College Borough staff are also providing information to tenants about housing options.
“We have had our housing staff going into Addison Court, providing information to residents, making commitments to assist in attempts to relocate,” Borough Manager Tom Fountaine said on Monday. “At this point, we are continuing to do that. We’re still committed to working through that. But ultimately, at the end of the day, it is not a borough property. The property has not been officially sold at this point, but there is a land development plan that was [submitted]… in December. It is going through the regulatory process for approvals. If it meets the zoning code, it is allowed by right of law to proceed with that development. So we’ll continue to monitor that and we can try to provide more information on it as it progresses.”
Several council members said that while the borough does not own Addison Court, it provided a a $440,000 loan to Addison Court’s original developer for the property acquisition in the early 1990s, which was repaid in full in 2012, and must do whatever it can to help its current tenants.
“We did help facilitate its construction and use, and it behooves us to do all we can to help to provide some similar living situation and we should do what we can to make that happen,” Council President Evan Myers said. “We have to look into that. We have to show that we care about our community because we do, and really need to exhaust every effort that we can provide to do that. For the folks that have spoken tonight and other nights, we hear you and i think it’s important for us to acknowledge that.”
Council member Nalini Krishnankutty said she wants more clarity on the timeline and for the borough to explore options with partners like Housing Transitions. Council member Gopal Balachandran added that he “would like to use whatever levers we have to make sure that individuals are not literally thrown out into the cold.”
“We had an investment or whatever we’d had when Addison court was built putting these individuals into a home that they thought was going to be their home until they passed and now they’re going to be displaced,” added council member Kevin Kassab. “Ao i do feel kind of like it’s something, somehow, we have to figure out …and it’s going to be tough because we all know affordable housing in the borough practically doesn’t exist.”
Josh Portney, who stepped down from council following Monday’s meeting to take a clerkship with Pennsylvania’s Commonwealth Court, suggested considering bolder moves, such as using eminent domain to ensure a place for Addison Court residents or guaranteeing them housing in places like the borough-owned Bellaire Court, which consists of 18 income-restricted apartments for individuals 60 and older.
“It’s really heartbreaking. We have to literally look at every option,” Portney said. “I’ve said this before, and I know it’s really uncomfortable for us, but we’ve done eminent domain before.
We’ve done eminent domain for parking. Parking is a priority for us. …And I know that this is very controversial. This might be the most extreme thing that I’m proposing. I’ve proposed a lot of extreme things in my tenure, but we have to look at every option. I’m leaving, but I feel for every resident of Addison Court.
“If it’s not that, it’s promising them a place at Bellaire Court. If it’s not that, it’s promising them a place at another housing that’s on a bus line that’s located in our downtown…. This is our work. It’s down the street.”
