Developers shift plans at Addison Court, will pursue keeping it low-income, senior housing
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- Developers presented a zoning text amendment and new plans to preserve Addison Court.
- They would receive tax credits for 10 years with affordability required for about 40.
- If preservation fails, they would demolish and build a mostly student housing project.
Developers looking to take over a downtown low-income senior housing complex shared new plans Thursday that would potentially allow the residents to stay in their Addison Court homes, though questions remain.
Officials from PrimeCore, the developer, gave the update during a State College Planning Commission meeting Thursday, where they presented a text amendment to allow the building height for the 120 E. Beaver Ave. property to be increased. Borough council voted on April 20 to refer the text amendment proposal to the planning commission for recommendations.
Plans to develop the low-income, senior housing complex into a student housing building were revealed earlier this year, drawing backlash from residents and community members for the potential displacement of seniors who’ve lived in the building for decades.
Thursday’s meeting required developers to present their amendment to the commission for their consideration and recommendation to the borough. Ara Kervandjian, PrimeCore CEO, argued that current zoning restrictions force the project to comply with two separate height regulations, making the redevelopment more costly and less financially feasible.
In support of the amendment request, PrimeCore revealed new plans for the development, where instead of an apartment building for student housing, they will try to preserve Addison Court as affordable senior housing and do a complete building rehabilitation.
“Our development team has evaluated over these weeks, and we’re now actively pursuing a path for preservation of that building,” Kervandjian said. “This is now our plan A, as opposed to the original submission, which is right now sitting with the staff.”
Plan hinges on Low Income Housing Tax Credits
To accomplish this, the developers said they would need to secure Low Income Housing Tax Credits through Pennsylvania’s Section 42 program under the Internal Revenue Code, a competitive process administered by the Pennsylvania Housing Finance Agency. They noted that the same program helped keep Addison Court affordable for the past 30 years.
If they are awarded, they would receive tax credits for a 10-year period on the condition that the building remains affordable for about 40 years. This would allow them to completely rehabilitate the existing 32-year-old building and allow current residents to stay, they said.
However, even if LIHTC is awarded, rehabilitation will still require a major construction period and could temporarily displace residents, developers said. They added that they do not intend to leave any residents without housing security and will need to work with residents and plan accommodations early in the process.
“We do not intend to leave anyone without security or peace of mind about where they will live. Our goal is to give residents stability during this planning period, possibly at the property itself,” Kervandjian said.
He added that some residents may be able to remain in place while certain floors and units are renovated. But that would not be possible for all residents, meaning at least some temporary displacement would likely be necessary.
While acknowledging that the application process does not always guarantee approval, developers emphasized that over the last 12 years, they submitted seven projects where all of them advanced.
“We are confident about our abilities,” Kervandjian said. “We’ve got a good relationship with the PHFA, and we know how to submit proposals for those applications.”
However, the developers need to own the Addison Court property, which is currently owned by Calibre Residential, to be eligible to apply for the federal tax credit program. They plan to close a deal on the property by the end of next week.
Kervandjian said they are prioritizing a preservation path for Addison Court through the tax credit program, which would take around two years, with the application process beginning as early as fall.
“We will pursue the tax credit preservation structure ... that is our Plan A ... there is no hidden agenda, but again, that is not guaranteed. LIHTC is competitive, costly, and time‑intensive,” Kervandjian said.
If their preservation plan fails, they would go forward with their initial plan to tear down and construct a new building that would primarily consist of student housing with minimal affordable units, which they said is the only way to make the project financially viable.
Some residents remain distrustful
During the public comment period, several speakers displayed skepticism over the developer’s commitment to affordable housing and viewed the plan as untrustworthy. Others advocated for the borough to own and manage the property, emphasizing the importance of maintaining affordable housing for the elderly downtown.
“It didn’t seem like workforce housing was considered, single units were considered, and that to me did not seem like a good faith effort. It didn’t seem trustworthy. I would recommend not to do this if there’s any way that we could, as a community, push to have the borough own this in any way, and keep it,” one speaker said.
Other concerns were raised about lease renewals for current residents, with the developer assuring they will close on the property next week and work with residents to extend their lease on a month-to-month basis. They also offered to help residents find alternative housing through Continental Realty, a local property management agency, if they choose to relocate.
Planning staff will present their recommendation to the commission during its June 18 meeting, where they will decide what recommendations to forward to the borough. Afterward, the borough will hold a public hearing on the amendment before making a final decision on whether to approve it.
