‘Sad situation.’ Redevelopment of State College building could displace low-income tenants
AI-generated summary reviewed by our newsroom.
- Addison Court residents were notified their leases would end in November 2026.
- Preliminary land development plans include demolishing Addison Court and rebuilding.
- Council and housing staff offer support but lack authority to stop sale or redevelopment
Residents who live in Arnold Addison Court, an 89-unit low-income apartment building in downtown State College, were notified earlier this month that their leases will end in November 2026. What comes next for the tenants, who are all 62 years or older, or have a disability, is unclear.
The State College borough council heard a brief update on the situation during a meeting Monday evening, and a few residents spoke about the apartments during public comment. The borough recently received preliminary land development plans for the redevelopment of the site at 120 E. Beaver Ave., State College, Tom Fountaine, borough manager, said.
The Low Income Housing Tax Credit (LIHTC) apartment building began renting units in 1994, and based on records provided by the property manager this month, 63 of the 89 units are leased. Reports from July 2019 show the majority of the units had section eight vouchers.
The affordability requirements of the LIHTC expired in December 2024, Fountaine said, so future developments on the site are not required to be used for low-income or senior housing. The land development plan calls for demolition of the building, and constructing a new building about the same size as the existing building, he said. Planning Director Ed LeClear said the building design looks like a U shape and will look similar to the Pugh Centre.
The Design Review Board is set to review the plans at 2 p.m. Jan. 6 and the Planning Commission will do the same at noon Jan. 7.
“Borough housing staff has been in contact with tenants and spent time at Addison Court last week to provide information and support to tenants in response to the lease notice, and will continue to do so,” Fountaine said. “We will have more information as it becomes available.”
The letter sent to tenants states Addison Court is “currently under consideration by new investors.” Fountaine said the borough’s understanding is a sale has not been finalized as of Monday.
The property is privately owned, although the borough previously supported the project so the housing could be built.
Council member Kevin Kassab said he felt bad and somewhat responsible for the situation, because the borough worked to support and provided a loan for the housing that expired after 30 years.
“Hopefully we can help and assist these individuals that live at Addison Court. Sadly, we all know it’s probably going to be very difficult to locate them in the borough, and I understand why they want to be in the borough. … The access to CATA and all that, shops, Target. So it is a really sad situation. So I just want to make that clear that when we look at things like this, that we look at the future and what it does to individuals,” Kassab said.
But Fountaine said state and federal programs fund the low income housing trust funds, several of which are in State College and the surrounding area, and they have time limits on how long it lasts. Thirty years, he said, is a standard time limit, and would have been the same regardless of a loan the borough provided for a land acquisition.
Kathryn Santoro, a resident living at Addison Court, presented the council with a petition signed by 27 people against the sale and redevelopment that would force them to move. She’s lived there since August but said there are others who have lived there for decades. The location of Addison Court is ideal for them because it’s close to CATA and other shuttles. If she lived elsewhere, it also might not be wheelchair-accessible, which she would need it to be.
Council President Evan Myers and others stressed that it is largely out of their hands but are looking into how they can help.
“Certainly, this council has taken the stand and has looked at different ways that we can provide affordable housing, and we want to be able to do that. This particular project, though, is now out of our purview,” Myers said.
Susan Venegoni, the former president of the State College Community Land Trust board of directors, urged the council to put borough money toward affordable housing, as well as a housing policy.
“I think if we had some goals and metrics of things that we’re hoping to accomplish in the area of affordability, there may be some other options for the people now that are going to be displaced. It’s going to be really tough to find a place with the amenities at the affordability anywhere near here, and we can do better. And I know that,” Venegoni said. “I just urge council, as part of the whole zoning thing and thinking about affordability, we’ve got to do something on our own that augments the federal funding.”
Nathan Romig, a borough resident, said this situation shows “artificially created affordable housing” isn’t sustainable. When affordable housing is built, it needs to actually be affordable, he said, and not artificially affordable for a period of time.
“Because then these situations come up and we’re harming ourselves and harming people in our community. We have to allow for housing to be built that is truly affordable,” Romig said. “And the thing that I wanted to say before we started talking about this was also just about the budget — that also has a big impact on affordability in our community. The more that we spend as a borough means, the more money the borough has to bring in, the more taxes we have to levy on the residents, and the more taxes we levy on the residents, the less affordable our community is for those people.”
State College Mayor Ezra Nanes said this would continue to be a topic the council will hear updates on and discuss. The council will meet at noon Jan. 5 only to swear-in council members and reorganize, and will meet again at 7 p.m. Jan. 12 for a regular meeting.
This story was originally published December 17, 2025 at 1:31 PM.
