Larry Sutton, finance director for the diocese, said he did not support the decision.
"[I'm] surprised because we feel the law is very clear about use of space for religious purposes, and disappointed because as far as we understand ... they view it just as an extension of student services -- not with the chapel," he said.
Sutton said the diocese must wait two weeks for the board's decision to be released in writing and then it will have 30 days to make an appeal. He added that he would not know until then whether the diocese would appeal the decision.
"It's a Catholic student center -- we focused on the 'Catholic' ... but the board focused on the 'student,' " Sutton said.
Jeffrey Stover, zoning board solicitor, said the amount of space that would be used as a student center played a factor in the decision.
"The zoning ordinance allows a church or place of worship," Stover said. "Based upon the fact that 22 percent [of the total area] was chapel, ... the board determined the primary use was not place of worship."
Board Member Wayne Bicehouse, who voted in favor of the center, said he thought the building met zoning requirements. "As long as they have a chapel and worship services on Sunday, it can be classified as a church. If you look at the zoning codes, it could go either way," he said.
State College Borough Council President Tom Daubert said accessory use, or "non-chapel" use, is not well-defined in the ordinance.
"I think [Borough Council] needs to make a definition for the future," he said.
Daubert added that even if the ordinance were defined more clearly, it would not impact the outcome.
Some residents who attended the meeting were supportive of the board's decision.
"I was pleased," said College Heights resident Tom Campney. "I think that the zoning board did take into consideration the issues from both sides. ...They came to an appropriate decision."
Mary Barnes, former president of the College Heights Association, said she also agreed with the decision, and said it would help College Heights remain a strictly residential area.
"When you live near a university like Penn State, you get pressure like this from outside groups," she said.
"We want to have a residential neighborhood with college students mixed in, but not with a student center," Barnes added.