Tenants of 3 State College apartment complexes to receive share of $60K settlement
About 100 tenants, many of them Penn State students, at three State College apartment complexes could receive a share of $60,000 under a settlement announced Wednesday by Pennsylvania’s top law enforcement official.
The agreement reached with the companies — identified as 917 & 1013 Allen St. LLC; 1006 S. Pugh St. LLC; Happy Valley Fund I LLC; and Happy Valley Fund I Manager LLC — resolved allegations they pressured tenants to give up valid leases ahead of planned renovations.
“For many young people, college is their first time living on their own,” Attorney General David Sunday said in a written 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.”
The settlement also requires the companies to pay $15,000 toward the state’s investigative costs. Under the deal, the companies did not admit to violating the law. A message left with their attorney was not immediately returned.
Sunday’s office said the ownership group bought 917 S. Allen St., 1013 S. Allen St. and 1006 S. Pugh St. in April 2025 with plans to conduct wide scale renovations soon after. The properties were purchased for $21.58 million.
At the time, tenants had leases extending into at least August. According to the settlement, Continental Real Estate Management contacted current and future tenants in May 2025 seeking to terminate the leases.
“There is going to be construction happening in every unit in your building beginning in August 2025. The construction will create unpleasant living conditions with dust, noise and increased activity at your building,” a letter sent to tenants read. “We understand that you have a lease for the 2025/2026 lease term, and it is our intention to find you another place to live during this period.”
The state said it received a pattern of complaints from tenants, alleging the companies failed to honor the leases and that the relocation subjected them to less favorable apartments, additional expenses and stress. Most said they received no financial compensation or assistance from the companies, according to the agreement.
The $75,000 payment is due by July 1. Restitution checks are to be mailed to eligible tenants.