State College council approves plan to buy Addison Court to preserve senior housing

The State College Borough Council voted to advance an agreement that would allow the borough to acquire Addison Court and preserve it as senior affordable housing. Borough staff told council the purchase price is $15,750,000, with $250,000 due at signing, $5,000,000 due when the Low‑Income Housing Tax Credit (LIHTC) application is filed and the balance due at closing in 2027.

Borough manager Mr. Fontaine said the deal envisions the borough owning the building and entering a ground lease with Primecor to operate and manage the property while Primecor applies for LIHTC funding. ‘‘If the LIHTC tax credit is not approved by 02/01/2031, the borough may require Primecor to repurchase the property, retain ownership, or sell it to another party,’’ Fontaine said. He added staff expects an LIHTC‑related payment to the borough of roughly $2–3 million once the project is approved, likely after 2028, and cautioned borrowing in 2027 could be needed if other funding does not come through.

John Hashjack of the Leach Tishman law firm, representing Primecor, told council the seller is ‘‘ready and willing to execute the agreement as soon as the borough would approve it’’ and that Primecor is prepared to move quickly to assemble the LIHTC application. Supporters from the public urged the council to act. ‘‘I can think of no greater responsibility for this council than the preservation of that exceptional community fabric,’’ said Silas Smith, a borough resident who spoke in favor of the purchase.

Council president moved to approve the agreement and authorize borough officers to execute it; after public comment and a brief council discussion about funding sources and the inclusionary housing fund, council members signaled their support. The chair announced the motion passed unanimously. The approval advances the project into the LIHTC application phase; the ordinance and final financing still depend on the credit application outcome and subsequent closing steps.

Next steps: planning and finance staff will work with Primecor on the LIHTC filing and return to council with specifics on any borrowing plans, fund allocations from the inclusionary housing fund, and the final purchase schedule.