City Council expected to reconsider zoning, policies

For at least a year, the Beacon City Council has grappled with how to address housing "affordability."

The city recently streamlined the approval process to create accessory dwelling units, an element of Gov. Kathy Hochul's plan to reverse a statewide housing shortage. Beacon is part of a state grant program launched in 2024 that awards up to $125,000 to low- and middle-income residents to build or improve ADUs on their properties.

The City Council also negotiated the addition of 27 below-market-rate apartments in the complex under construction at 248 Tioronda Ave. Further, the rollback of parking requirements in some parts of the city may spur construction.

This year, council members have said they want to revisit the local law governing short-term rentals, potentially freeing up residential units, and to examine the city's "inclusionary" zoning policy, which requires new developments of 10 units or more to rent at least 10 percent at below-market rates.

With all this in mind, a team of Dutchess County planners earlier this month walked the council through various scenarios.

The planners said that renters earning between $50,000 and $75,000 annually should find a surplus of apartments in Beacon, but all other income levels will be challenged. The most significant shortages are for people making less than $20,000 annually or more than $75,000, they said.

At the same time, a survey found the city provides 17 percent of all affordable apartments in complexes with at least 20 units in Dutchess County, second only to the City of Poughkeepsie (44 percent). According to the 2024 Dutchess Rental Housing Survey — the most recent available — there are 783 "capital-A affordable" apartments in Beacon. This includes government-subsidized units, such as those managed by the Beacon Housing Authority, and apartments with below-market rents due to tax credits or the inclusionary requirement. However, the owners of six complexes, representing at least 400 apartments, did not respond to the voluntary survey.

During an April 6 workshop, the planners told the council that many renters in Dutchess County are "severely cost burdened" by housing, meaning they spend more than 30 percent of their income on rent. Rising construction and borrowing costs have driven rents higher, while incomes have not kept pace, they said.

Not Counted

These developers did not respond to a 2024 housing survey conducted by Dutchess County.

344 Main (25 units)*

50 Leonard St. (68 units)

Landgrove (44 units)

Lofts at Beacon (178 units)*

Prospect Realty (63 units)

The Beacon (29 units)

*Received government housing subsidies

According to the county survey, the average one-bedroom, market-rate apartment in Beacon costs $2,725 per month, nearly $900 more than the county average. The below-market rate for a one-bedroom in Beacon, based on developer responses, ranges from $1,400 to $1,853. The Dutchess average is $1,008. The report does not include average prices for subsidized units.

In addition, incomes are increasing faster at the top of the scale than at the low end, said Gail Padalino, a county representative. "Eventually it just pushes out the people at the bottom, so that people with the lowest incomes have the hardest time finding housing," she said.

Padalino noted that, along with the rental survey, some data was taken from the county's 2022 Housing Needs Assessment. The county is updating that report, she said, but "I don't think much has changed as far as the shortage and who's struggling the most to find affordable housing."

As for inclusionary zoning, if the city bumps its affordable requirement for developers from 10 percent to 15 percent or 20 percent, it will probably have to offer a "giveback," such as allowing more apartments in a complex or providing property tax relief.

"In general, having an incentive is part of the deal," said Emily Dozier, another Dutchess planner, because a higher percentage of afford...