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Ferguson Township pledges $150,000 to preserve 49 affordable units; board seeks deal terms before disbursement
Summary
The board pledged $150,000 in support of a Centre County Housing and Land Trust effort to preserve 49 formerly low-income units, with disbursement contingent on clearer deal terms and a future agreement; staff said $300,000 in predevelopment funds are needed to prepare a full financing application.
Ferguson Township supervisors voted Monday to pledge $150,000 toward a preservation effort led by the Centre County Housing and Land Trust (CCHLT) to keep 49 units affordable in a development the agenda identified as Sullivan View Estates (the name was also referenced in discussion as Sylvan Butte Estates).
Township staff and CCHLT representatives told the board the immediate need is for about $300,000 in predevelopment and application costs to assemble a funding package (including state and federal funding streams) that could leverage roughly $19 million for acquisition and renovation. Adam Roboff, a land trust board member, summarized the project as “about reserving what is there,” noting the units were built under an earlier affordability program decades ago.
CCHLT Executive Director Missy Schoonover told supervisors the land trust cannot itself access certain HUD developer programs and is partnering with a developer who can; the land trust’s role would provide perpetual affordability protections beyond initial program periods. Schoonover said the land trust’s involvement is what secures ongoing affordability, adding the organization is seeking pledges and partners to complete the application.
Board discussion focused on the deal structure: several supervisors said they were comfortable pledging funds in principle but wanted a written agreement that explains what the township receives in return for the upfront risk. "Let's make the pledge, but I want a deal," one supervisor said, urging staff to return with pro forma financials and clear disbursement triggers.
The final motion — to pledge $150,000 with payments conditioned on clarity of a contractual arrangement and milestones — passed by a voice vote. The board asked staff to return with the developer’s pro forma, memorandum-of-understanding language, and suggested contract terms before releasing funds.
What’s next: Staff and CCHLT will work to provide a draft agreement, a breakdown of the $300,000 soft-cost budget and suggested disbursement milestones for board review before funds are released.
