Dutchess County Pauses Big Stadium Spend; Invests In Housing Instead After National and Local Pushback

Dutchess County Executive Marcus Molinaro amplified via his Instagram that the county has decided to shift federal American Rescue Plan (ARP) funds away from the planned minimum of $11.6 million that was dedicated for a renovation to Dutchess Stadium, as reported by Times Union and Daily Freeman. Instead, the county changed its focus to allocate $9.5 million for housing, as reported by Times Union after an announcement by Dutchess County Executive Marc Molinaro at a recent county legislature meeting.

The Highlands Current pointed out that using federal funds from ARP money for a stadium upgrade had grouped Dutchess County into a New York Times story highlighting projects that were being criticized for use of the federal funds.

The County Executive received pushback from the allocation of the funds towards tourism instead of the current housing crisis in the Hudson Valley.

The Times Union reported that “Dutchess County Comptroller Robin Lois released an audit scrutinizing the county’s plan, finding ‘investment in water, sewer and broadband infrastructure surprisingly low at $1.7 million, particularly compared to the stadium spending.’”

In the article, Dutchess County Minority Leader Yvette Valdés Smith (D-Fishkill) told the Times Union: "This should have been the case from the get-go. Our county needs so much assistance. Our housing market has really boomed, but it has really hit us hard as communities. There are a lot of renters in my own district … trying to buy their first home and simply cannot. Prices have really gone up.”

Dutchess County has received $57 million in federal ARP funds.

Dutchess County announced today that $3.1 million will be spent on an Emergency Housing facility with wrap around services for guests.

Summary of the 9/13/2021 Beacon City Council Workshop Meeting :: Housing, Meeting Time Off, Etc.lea

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The September 13, 2021 City Council Workshop agenda and video recording of the meeting have been added to A Little Beacon Blog’s Easy Access City Government section.

In short, a brief summary of some of the items discussed on the agenda is below. Click here for links to the agenda items for any digital resources linked to the topics discussed, as well as the video recording of the meeting.

Housing Initiative Prioritization + Parking

The City Council discussed Mayor Kyriacou’s Affordable Housing Proposals, lingering on the Accessory Dwelling Units (ADUs) component. The Mayor, who is a landlord who has owned several properties in Beacon, wants to see the right to have an Accessory Dwelling Unit be approved as of right for homeowners to build and rent out. An Accessory Dwelling Unit is like a giant garage/studio, that is a stand-alone structure built next to someone’s home, that can have water and electricity flowing to it. There are restrictions as to how far it needs to be from the house, and how large it can be.

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Editorial Note 9/20/2021: The paragraph above originally included a line stating that Mayor Kyriacou “is married to a realtor,” which has since been deleted. Mayor Kyriacou submitted what can be taken as a correction during the City Council Meeting on 9/20/2021. While he did not email or phone in with this correction, as is standard with most publications, he included it after his public service announcements, leading with sarcasm: “I've been made aware that I am a bigamist, which I find interesting. My spouse of 30-some years is a professional and spent most of the last dozen years in higher education as a marketing and communication executive. The last 6 years at West Point, but before that at Fordham and at RPI. But apparently I have a second spouse who is a realtor. So, unbeknownst to me, I've been married twice. And I wanted to say, whoever you are out there, come say ‘Hi,’ and I'll learn a lot more. I could at least have some fun, right? Oh, and I learned that online, by the way.”

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Currently, Beacon’s zoning laws make building Accessory Dwelling Units difficult. In general, ADUs have not been popular with the public - rather - the public who is motivated enough to attend public meetings to speak out against them. Including when homeowners want to build an ADU for in-laws or caregivers. The fear by some of the public is that the ADU will be used by developers and homeowners as rentals. Which seems to be the goal of affordable housing.

The Mayor’s proposal encourages small residential units and more cluster housing. City Administrator Chris White projected his vision of who Accessory Dwelling Units was intended for: couples and single people moving from New York City who do not need large homes, he said, and move to Beacon without cars. He referred to this concept for the ADUs as “workforce units,” and stated that he did not think homeowners would build luxury Accessory Dwelling Units, similar to the expensive apartments on Main Street. He assumed homeowners would use low or moderate grade materials to keep costs down. Which does not indicate what the homeowner may then charge for that unit.

Perhaps he has not seen the adorable tear-down renovation of the tired house with studio garage on Cross Street.

Parking Requirements Possibly Waved For Accessory Dwelling Units (ADUs)

Parking requirements for Accessory Dwelling Units is also under consideration to be waved. Parking requirements are the number of parking spaces a property owner must make available to tenants. Often, these requirements are used to stall a building project if street parking cannot be found.

Councilmember George Mansfield suggested that people are moving to Beacon without cars. City Administrator Chris stated his belief that generally, people moving to Beacon do not have cars, and therefore do not need parking spaces. Councilperson Air Nonken Rhodes suggested that people do buy cars after moving to Beacon in order to leave the bubble of Beacon for necessities, jobs and enjoyment.

City Administrator Chris stated that with people moving from New York City without cars, there is less of a need for parking. He stated that he feels that assuming someone would want to buy a car after moving to Beacon, and to park that car in one of the property’s parking spots that the building owner is required to offer, is a “social justice” issue, concluding that poor people do not want to own cars and absorb the burden of incurred expenses from car ownership, and instead can rely on existing public transportation as a better idea.

City Administrator Chris stated: “Where is the evidence that you need that level of parking that we require in our code? I felt like, as a planner, a lot of this was made up. 'You have this size unit, you need 2 cars or 3 cars.' There is no evidence that you necessarily need that. Also, just be aware that we have new technology and common solutions that we could implement. The new technologies...George rode here on an electric bike. We see the proliferation of micro-mobility through scooters. If you watch people whipping up Beekman from the train station, you'll see a lot of people are looking at these things as much cheaper than maintaining a car with insurance and repairs. Again, a social justice issue is that we shouldn't have to require every poor person to own a car to get around. The other part is the societal thing which is moving toward that micro-management where there is on-demand transit. The County seems to be moving in that direction, and I've talked to them about piloting something like that in Beacon. Because again, you have 5 square miles. It's a walkable, compact community. Particularly with the new e-bikes. It really makes it accessible to someone who never would have been able to ride a bike."

Councilmember Air reiterated: "The issue is getting out of town."

It should be noted that there is no requirement of a person living in a building or house to own a car, even if they have access to a parking spot from the building owner.

Additionally, for couples who move into these units, who start families and stay in these small dwellings because they cannot afford to buy larger homes, may eventually have kids old enough to go to soccer or ice-hockey practice. Getting the family to soccer practice in Beacon on an e-bike would be impossible, and getting the family to ice-hockey practice in Poughkeepsie would be very difficult on public transit.

No Discussion Of Families With Children

There was no discussion of families - parents with children - who have moved out of Beacon because they grew out of their small apartment or rental in a duplex, and cannot afford to buy a house in Beacon with a yard. Nor was it discussed how many families are living in cramped quarters in their current small apartments because they do not want to move out of Beacon, or move out of the Beacon City School District.

City Administrator Chris stated: “Now you see more people moving in who are single adults, empty nesters, younger people who maybe have a different...or are single or are just 2 people. We are building houses for these huge families...and I know I look a lot of the housing as someone who is single, and it doesn't fit. It would never fit. I don't need that much house. I think a lot of people think that way."

Several families have also left Beacon because they could not find a house to buy with several bedrooms with a yard in their price range.

Also not discussed was how many people of high and low incomes do buy cars after moving to Beacon from New York City. Leaving the bubble of New York City for any community outside of that island usually involves leaving the municipality for doctor appointments, different grocery shopping experiences, dining out in new locations, visiting family, going to the Dutchess County Fairgrounds, etc.

Some people who do not have cars hire taxis to get their children to school, to the public pool, to Girl Scouts. Some take the bus, however, getting children onto public transportation is work.

Recreation Needs Assessment Scoping

Parks and Recreation Director Mark Price was called to the meeting by City Administrator Chris to present Mark’s early vision of what the Recreation Study could look like. Now that the Recreation Department is done with the Kids Camp Program and the Public Pool Program, the City Administrator said that he felt that Recreation Director Mark had time to think about preparing the study.

In last year’s budget planning, where there was a groundswell of demands from the public for more money to be placed into the Recreation Department, which Recreation Director Mark voluntarily decreased. Mayor Kyriacou earmarked at least $50,000 for a Recreation Study to discover what people needed.

During this City Council Workshop, Councilmember Dan Aymar-Blair pointed out that he wanted to see the building of a new and larger Recreation Community Center be part of that study, and recalled that the budget earmarked two studies for $50,000, totalling $100,000: one for programs, and one for a building. He did not want to see the building left out.

Mayor Kyriacou and City Administrator Chris responded that they wanted to see programs first in order to see what kind of building to build. For instance, City Administrator Chris suggested that a theater program could happen in the Memorial Building, which has a stage and according to him, sits empty most of the time, he said.

It should be noted that the Memorial Building was dedicated to the Veterans, where Veterans are regularly requesting maintenance to it as it is in disrepair.

Councilperson Air Nonken Rhodes stressed their desire to see a space for “hanging out,” that is not structured with programming, but just is a place for kids to come hang out, in addition to programming going on around the space.

Hiring and Promoting City of Beacon Employees

In the hiring and promoting of City Employees, the Council has requested more information before they make hires, which they do by voting at public meetings. Spearheaded by Councilperson Jodi McCredo, who wants to see more information before the Council votes to hire people, she has made a suggestion to City Administrator Chris to see resumes before being presented with a candidate at public meetings. In past workshops, City Administrator Chris has responded to that concept that he did not want to “waste their time” with sending resumes, but could consider obliging.

It should be noted that the public is not regularly informed when city employees are terminated or quit, unless the position is in the the public eye, such as the City Administrator position last year, Police Chief, etc. Terminations or resignations of employees of Police Officers, Highway Department, Water Department, etc. are not regularly shared in public meetings or in Resolution documents that are uploaded to the internet. One usually needs to find out by submitting a FOIL request.

Proposed Amendment to 2021 City Council Meeting Schedule

Mayor Kyriacou would like to have less City Council meetings, similar to what was tried during the summer of 2021 when public City Council meetings were paired with Workshops where the public is not allowed to speak. The lighter summer schedule left some Monday nights open with no meetings scheduled.

Mayor Kyriacou consistently tells his constituents that he is a “part time” mayor while he is out chatting in the community, or even during his most recent testimony against the Damskammer plant, as reported by the Beacon Free Press.

City Administrator Chris referred to the preparation for weekly meetings as a “hamster wheel” that was a lot of work. Mayor Kyriacou positioned the proposed change of reduced meetings as not necessarily a reduction of meetings, but as a way to favor seasonally crowded meeting agendas, such as October’s budget season.

Councilperson Dan disagreed with the proposal, and cited that he saw this as a reduction in meeting times. Though he figured his kids would like to see him on Monday nights, Councilperson Dan felt it right to continue with the weekly meetings. Councilperson George Mansfield noted that while he has been attending the weekly meetings for 12 years, and would appreciate an open Monday, he also wanted to continue with regular meetings for consistency for the public.

The Council was not aligned with the Mayor’s vision of a reduction in meetings, so the Mayor suggested hiring an additional support person for the City Administrator, to which the Council agreed was a good idea.

Community Facilities Grant Applications

Movement has been made on the awarding of unused grant money that can be used to improve buildings owned or leased by non-profits or by building owners whose buildings have been designated historic, or are in the Historic District. The monies need to be used for permanent structures that cannot be removed. The first entities who look the most promising are the Beacon Historical Society for an accessible ramp, and the Howland Cultural Center for facade improvements.

The River Pool of Beacon did apply for money to help with this temporary pool that it sets up in the Hudson River each year, but the City Administrator said that the grant rules state that the structure needs to be permanent, but that he was happy to see them apply and had not considered an entity like that. Applications are still open for this financial opportunity.

Executive Session Items

Personnel and Contract Negotiations

Details on what is talked about during the Executive Session portion of the meeting are never revealed. Only the City Council members, Mayor, City Administrator, Attorney, and if anyone else was in the meeting have access to this knowledge.

How $2.2 Million+ In Dutchess County Grants Is Slated To Be Spent In Beacon And Beyond

The Office of the Dutchess County Executive, Marcus Molinaro, today announced that over $2.2 Million in CDBG and Home Funding for Community Infrastructure, Programs and Affordable Housing Projects is slated to be awarded to different communities throughout the county.

The money has been awarded to 21 projects to improve accessibility, address critical community needs, and expand affordable housing options throughout Dutchess County, according to the press release. County Executive Marc Molinaro said, “Dutchess County continues to invest in projects and programs that help to lift up our most vulnerable residents. Whether it is improving infrastructure to promote accessibility for residents and visitors of all abilities; expanding affordable housing options; or supporting programs that address critical community issues like homelessness and substance abuse to the county’s most vulnerable populations, our investment of CDBG and HOME funding will have positive impacts for generations to come.”

Beacon was awarded one infrastructure upgrade project, and a traffic safety project. It is unknown if Beacon applied for other types of uses and were denied, or if these were the two projects they applied for, and were awarded.

Other municipalities put in for upgrades or new additions to park playgrounds for children, public bathrooms, and upgrades to senior centers. While the City of Beacon employs a grant writer, it is unknown at this time how they brainstorm to get ideas on what kind of funding to apply for. Beacon has steadily made investments in infrastructure upgrades, which is reassuring during these dramatic weather swings and history of broken water mains that require emergency budgeting to fix.

Where Is Community Development Block Grant (CDBG) and HOME Funding From?

Community Development Block Grant (CDBG) and HOME program funding is provided by the U.S. Department of Housing and Urban Development (HUD) to address locally identified community development and housing needs. CDBG funding supports community development projects and activities that benefit low- and moderate-income neighborhoods, populations and communities; while the HOME Program supports the development of affordable housing. These designations are dependent upon census data, which is why hyper-local politicians are so eager for everyone to fill it out when it comes around like it did last year during the pandemic.

CDBG Municipal and HOME applications are accepted annually by the Department of Planning and Development. CDBG Public Service applications are solicited bi-annually. Applications are reviewed by the Community Development Advisory Committee with recommendations forwarded to the County Executive for final approval. More information about these application cycles can be found on the Planning and Development website.

Grant Money Proposed To Be Awarded - Needs Public Comment Period First

According to the press release, an in-person public hearing on the plans will be held on Wednesday, July 14, 2021 at 1:00 p.m. at Poughkeepsie City Hall, Common Council Chambers, 3rd floor, 62 Civic Center Plaza, Poughkeepsie. A second virtual public hearing will be held on Thursday, July 15, 2021 at 11:00 a.m. via this link.

Comments may also be submitted in writing to Anne Saylor at asaylor@dutchessny.gov, mailed to:
Anne Saylor
85 Civic Center Plaza, Suite 107
Poughkeepsie, NY 12601

Or by calling (845) 486-3638.

The awards are preliminary pending a public comment period of the draft 2020-2024 Consolidated Plan and the 2020 and 2021 Action Plan. The comment period for these documents will run until Thursday, August 5, 2021.

Following the public comment period, a resolution will be sent to the County Legislature’s for consideration at its September 2021 meeting to formally accept the federal CDBG and HOME funding.

How The Grant Money Has Been Awarded

The following is a breakdown from the County Executive’s office. Of these breakdowns, $233,988 will be set aside for new, competitive application cycle later this year for the creation of qualified, new affordable rental units.

CDBG Infrastructure Projects ($1,213,700 Total)

City of Beacon - Verplanck Avenue Crosswalk Upgrade – $51,870
Improve pedestrian safety and accessibility with new crosswalks on Verplanck Avenue.

City of Beacon - Fishkill Avenue/Hanna Lane Sewer Main Replacement - $108,130
Sewer line replacement to meet pitch requirements, add sewer flow capacity and eliminate the risk of overflow, and to promote economic and housing development.

Town of Clinton - Friends Park Improvement Project - $98,700
Installation of handicapped accessible parking spaces, pathways and bathroom upgrades to eliminate barriers and improve accessibility for senior citizens.

Town of Dover - J. H. Ketcham Memorial Park Walking Track - $99,000
New quarter-mile porous asphalt accessible walking path to enhance recreation options and promote favorable health outcomes for residents.

Town of East Fishkill - Senior Center Sidewalk Renovation - $61,000
Construction of approximately 1,130 square feet of ADA sidewalk, removing barriers and promoting accessibility for seniors.

East Fishkill Supervisor Nicholas D'Alessandro was quoted in the press release saying: “Making our community more accessible to all residents of all abilities is a priority in East Fishkill. We thank Dutchess County for this collaboration through the Community Development Block Grant program, a partnership which will provide greater access to all residents, including the many seniors who utilize our community center.”

Town of Hyde Park - Dinsmore Park Playground Improvement Project– $100,000
Construction of an ADA compliant playground including ADA compliant swing, slides and climbing equipment.

Hyde Park Supervisor Aileen Rohr was quoted in the press release saying: “Hyde Park is once again thankful to our County partners for their CDBG award for playground improvements at Dinsmore Park that will enhance quality of life for all residents. Working together while ‘Thinking Differently,’ we work collaboratively to create improvements to our parks, playgrounds and sidewalks without local tax impact.”

Town of Pawling - Pawling Library Bathroom Installation – $200,000
Construct two new ADA compliant bathroom facilities, including new plumbing and electric, to promote accessibility for disabled residents.

Town of Poughkeepsie - Inclusive Playground at Sheafe Road Park - $95,000
Removal of deteriorated, non-ADA compliant play equipment and installation of a new inclusive play structure.

Town of Wappinger - Carnwath Farms Senior Center– $150,000
Construction of a new ADA compliant senior center, including electrical, HVAC replacement, accessible parking, walkways and entrances for senior citizens.

Village of Wappingers Falls - Bain Park Development - $100,000
Site preparation, assembly and installation of new ADA compliant playground recently purchased by the Village.

Village of Millerton -Sidewalk Infrastructure Repair & Replacement - $150,000
Replacement of 600 linear feet of deteriorated sidewalks along NYS Route 44 (Main Street) with a new accessible sidewalk and crosswalk in front of Millerton Library to promote accessibility.

CDBG Public Service Projects – Totaling $150,000

Catholic Charities - Homeless Prevention Case Management Program – $25,000
Emergency rent assistance and limited utilities assistance to approximately 50 low-income Dutchess County residents to help stabilize housing. Case management assists clients to independently sustain their household needs.

Friends of Seniors - Senior Transportation and Support Services – $25,000
Provide county residents age 60+ with basic support services, including transportation to non-emergency medical appointments, grocery shopping, visiting services, telephone reassurance and respite to primary caregivers.

Hudson River Housing - Housing First Support Services – $25,000
Case management services under the Housing First Program, which helps high-risk, vulnerable homeless adults secure and maintain stable housing.

Hudson River Housing - River Haven Homeless Youth Program – $25,000
Crisis services, emergency housing, counseling, case management, and youth development programming for runaway, homeless and at-risk youth ages 10-17. River Haven Independent Living Program provides services for older homeless and at-risk youth transitioning towards self-sufficiency. River Haven Transitional Living Community provides 17- to 25-year-old homeless youth safe housing as they work towards independence within two years.

Mid-Hudson Addiction Recovery Center (MARC) - Substance Abuse Residential Recovery Services – $25,000
A comprehensive continuum of services offering the promise of recovery to chemically dependent individuals. MARC offers emergency housing, non-hospital-based detox and treatment referral, community residences, supportive housing, counseling, life skill training, vocational development, sober supported apartments, tenant counseling and rent subsidies.

Northeast Community Council - Youth Development: Teen Team and CPSB – $25,000
Teen Team is a peer support group that provides educational, recreational and community service opportunities for socioeconomically disadvantaged youth ages 14-18. The Community Partnership with Schools and Business (CPSB) offers workforce development and intern opportunities in local business for youth 14-21.

HOME affordable housing projects - Totaling $863,794

The Woods at Rhinebeck, Astor Drive, Rhinebeck – $350,000
New construction of 80 one, two and three- bedroom affordable workforce apartments within walking distance of Northern Dutchess Hospital and the village.

Annex at Snow Terrace, 28 Snow Terrace, Poughkeepsie – $227,806
Rehabilitation of former Webster House emergency shelter into 6 permanent one-bedroom units for the homeless/formerly homeless.

Rebuilding Together – $52,000
Rehabilitation of 10 single-family homes throughout Dutchess County occupied by low- and moderate-income households, often senior citizens, by volunteers.

Property Taxes - How Are They Paid By People Who Experienced Income Reduction?

While renters in Beacon are experiencing little protection from increases on where they live, causing some Beaconites to leave Beacon or live with anxiety of rent increases, people with qualifying mortgages backed by the Department of Housing and Urban Development, Department of Veterans Affairs, and Department of Agriculture who have escrow accounts with the mortgage company holding their account may be catching a break when their property tax to the City of Beacon, school and library come due.

The CARES ACT legislated that if a qualifying homeowner has experienced lower income due to the pandemic, they can put their mortgage into forbearance, thereby pausing payments and not incurring additional interest or penalties. The paused payments get added back into the total owned of the home, which are added to the total debt the homeowner owes. This forbearance was started by the Trump administration, and was continued by the Biden administration, who recently extended that deadline through June 2021.

Forbearance Is Set - What Does It Mean For Property Taxes?

While relief is experienced for a homeowner who lost income due to the pandemic, what happens to the property, school and library taxes that are due directly to the City of Beacon?

Some residents pay these payments directly from their own accounts, versus having the institution servicing their mortgage divide a portion of their payment into an escrow account, so that when property taxes come due, the money is there and company servicing the mortgage, like Quicken Loans or Rhinebeck Bank, makes the payment on behalf of the homeowner.

One year ago in March 2020, at the start of the pandemic, A Little Beacon Blog asked the City of Beacon how property tax was being handled. At the time, Mayor Kyriacou, who is a landlord in Beacon and owns several properties, advised us to ask state officials about it.

This year, A Little Beacon Blog inquired again, and received this response from Beacon’s City Administrator, Chris White: “The City delayed foreclosing on any properties in 2020. Normally, the City would have sent last chance agreements in March of 2020 to properties with 2018 taxes still open. In compliance with the State's COVID-19 Emergency Eviction and Foreclosure Act, the City mailed hardship declaration forms to anyone with open taxes from 2018 giving them until May 1, 2021 to pay or enter into an installment agreement. We have also not taken action on back taxes for 2019 or 2020 so there has been some flexibility.”

New York City’s City Council passed legislation in 2020 on late payment penalty interest to 0% for a period of time. As for Beacon, Chris explained: “The interest on taxes is 1% a month but is not compounded. We allow partial payments and offer installment agreements of up to 24 months for past due taxes as long as property owners remain current on any upcoming taxes (including school) while in an agreement.”

A Benefit To Escrow Accounts: Advance Payments Have Been Made For Some Mortgages

When a homeowner has an escrow account with the company handling their mortgage, that company sets aside a portion of the monthly mortgage payment and places it into an escrow account for property taxes to the City of Beacon and to the school and library. Same can be done with homeowners insurance. It’s one less bill to worry about, and makes setting aside money automatic.

If an escrow account is not used, however, then the homeowner needs to make the payment themselves. Even before the pandemic, some residents who had not disciplined themselves to save the money found it difficult to scrape the money together. With the pandemic and economic shut-down, collecting that money could be more difficult.

Property Tax Escrow Account 101

When we reached out to Dave Curry, VP Commercial Lender for Rhinebeck Bank, to inquire as to if Rhinebeck Bank was also advancing property tax payments for residential mortgages, he went beyond the question to provide some education about escrow accounts as they pertain to residential mortgages:

“Yes, we escrow taxes into the monthly payment. For Rhinebeck Bank, we do this on both the residential and commercial side. This a typical requirement as financial institutions want to be sure the taxes are being paid on an annual basis and that the borrower is in a position to do so. Some Banks will not escrow taxes if it was requested by the borrower, however, the bank is putting the trust in the borrower to be able to manage their finances enough to pay those big bills when they come! Unfortunately, most people are not disciplined enough with their finances.”

Dave continued: “Escrowing Insurance is a different story. Normally Banks do not require the escrow of insurance. So how this works is that your monthly mortgage payment is normally broken down 3 ways: Principle, Interest and Escrow. The escrow portion goes into a separate escrow account and when the Bank receives the tax bill, they cut a check from this account. Additionally, there is an escrow analysis done on an annual basis, which determines if your monthly escrow portion is enough to satisfy the annual taxes. Sometimes there is a shortage and you will have an increased monthly payment, and sometimes there is an overage where you will be cut a check from the Bank. That is pretty much the scope of it, but very common for mortgages.”

The escrow analysis is conducted for if the taxes in the city increase or the city reviews their appraisal amounts on each home, as Beacon did a few years ago after not having done it for years, which resulted in a substantial increase for property owners. The amount set aside from the monthly mortgage payment needs then to also increase in order to set aside enough property tax money.

People who are done paying their mortgages may not be in the habit of making the monthly required payment anymore, thus needing to be disciplined enough to set aside the money for tax collection time. If they have the money, during the pandemic where some have experienced job loss.

Rent Increases In Beacon - Sometimes 12% - Driving Beaconites Out Or Stress On How To Stay

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Renters during the pandemic have had some protections, in the form of the Eviction Protection under New York State as well as at the federal level via the CDC. Currently, some renters who cannot make payments may see an eviction paused, which the CDC has extended through March 31, 2021.

However, renters who are still making payments to landlords are also at the mercy of their landlords as Beacon’s real estate market continues to heat up, as a result of favorable tourism media (including this blog, lots of mixed-feelings here!), sexy hypes by realtors (ex: “bidding war!…buying with cash!…”), and city-dwellers leaving NYC at a faster rate as the pandemic makes social distancing unbearable. There is no rent regulation in Beacon, so property owners can make decisions based on the market and their relationships with tenants.

Some Beaconites Share Their Rent Experience

Some Beacon residents wanted to share their stories, to get a read on how other renters are faring, but wanted to remain anonymous, as landlords could be local, neighbors, influential people in the community, etc. We are respecting that for this story.

The Artist, The Dog, and the 12% Increase

Real life Beaconite after hearing the news of their 12% rent increase. The caption is from the artist.

Real life Beaconite after hearing the news of their 12% rent increase. The caption is from the artist.

An artist living in Beacon with her life partner recently put her dog (pictured here) up on Instagram after their landlord raised the rent 12%, hoping her dog could pull his weight a little by posing on Instagram and somehow making money. Her dog is known for his many facial expressions, so she posted a picture of his “surprised face” when they learned that the landlord was raising the rent 12%.

The caption read: “The face U make when UR landlord raises your rent 12% and U want UR dog to make money on Instagram bc other people somehow do it but U really have no time for that and wish he could just do it himself.”

This artist recently rented an office to do her commissioned work out of the home, as her life partner had surgery, which took him out of his job as he recovers at home. She needed space to spread out as orders come in and she needs to make the orders. Their residential rent will increase 12%. They are currently in negotiations.

The Renting Family Whose Residence Might Sell With Slim Chances To Buy In Beacon

Another resident with a child in the Beacon City School System used to work in hospitality, but saw her job disappear. While she and her life partner have been making the rent, the owner of the property they rent was considering selling, which would create more uncertainty about their rent. “I do feel lucky in that they could have just sold no problem months ago,” she told A Little Beacon Blog, “but told us that we could stay for however long we need to. We speak next month about renewing in the summer. Fingers crossed they haven’t changed their minds. One of my biggest anxieties right now is being pushed out of Beacon because we can’t afford it anymore. It’s fantastic for those that already own, but our chances of buying feel slimmer than they were one year ago.”

“For Sale By Owner” Listing For $800K - “NYCers Will Buy Anything!” - Or Will They?

The time came for a Beaconite, who was raised here and grew up to raise their own family, to sell his parent’s home. With the help of his siblings, they intended to sell the home themselves. The house is a Victorian “with good bones” but is not updated, and an unfinished but usable attic. His childhood nickname is still painted on the attic ceiling which served as their playroom.

The adult children were going to list the house at $800K. “We aren’t going to list it with comps (examples of recent nearby home sales),” he told me one afternoon as I lent him my extension cord for his leaf blower, in preparation for the first open house the next day. “These people from Manhattan will buy anything.”

I told him that 2 of my friends who live in Beacon were looking to buy, and I would send them right over, but at that price, they most likely could not afford. One friend with kids in the district rents in a complex, and cannot find an affordable home in Beacon. They are looking in Wappingers Falls. The other friend had outgrown their home with their kids, and also needed a larger place. They ended up buying in Newburgh.

The listing went up for $800,000. I didn’t see many cars for the open house. The following week, a realtor’s sign was out front, and the for-sale-by-owner listing online disappeared. The house popped up on Zillow for $699K, then was lowered to $625K, then $599K, then lowered again to $525K, and finally sold at $490K, according to Zillow.

While it’s understandable that everyone needs to make a buck, and pay for nursing homes for aging parents, or private nursing, or settling debts, or purchasing the next family home, a lot can be determined by the personal decision of a homeowner selling to the next person.

Councilperson Nelson Urges Landlords Not To Raise Rents - Calling Out West End Lofts

In a City Council Meeting in December 2020, Councilperson Terry Nelson voiced his disapproval with property management companies raising the rent during a pandemic, “even if it’s for $40,” he stated. Councilpeople often allude to people or companies, but don’t mention names. Therefore, A Little Beacon Blog followed up with Terry to confirm which property was raising the rent, and he stated West End Lofts, which is the complex along Wolcott that was billed and financed as affordable living with artist lofts by Kearney Realty Group.

A Little Beacon Blog reached out to West End Lofts for confirmation on the rent increase, and did not receive response. The West End Lofts complex was viewed by some residents as a solution to more apartments to accommodate more people wanting to stay in Beacon. When the property was initially cleared for development and the trees were cut, the loss of woods was traumatic for some who were not expecting it. Others viewed it as an opportunity to move their young children to Beacon. Said one resident who grew up in her parent’s home near South Avenue and now has children of her own: “I remember watching fireworks in Newburgh from my parents home (near South Avenue) through those trees. I hope I can live in those new apartments.”

West End Lofts are marketed largely to artists. There is a discount if a person is an artist. According to their website: “West End Lofts is a mixed-income artist housing development in the heart of Beacon, New York. West End Lofts consists of 50 affordable artist lofts, 21 middle-income units, and 25 market rate units.”

The Neighbor Who Lost 2 Neighbors After The Landlord Raised The Rent For New NYC Renters

A reader contacted A Little Beacon Blog with their story of their neighbors having to move out when the landlord raised the rent, replacing them with New Yorkers who left the city for a greener life, and found Beacon’s rents lower then NYC. Said the Beacon resident: “Our rent innitially was very affordable,“ she said. “A year ago, my house was sold to an investor and immediately he tired to raise my rent $150 a month after living in the space for 4 years. I very kindly said no way - and then asked him down to the original rent and had to school him that everyone in the building had lived here for years and that our landlord only raised the rent $20 years for cost of living. Needless to say, 2 tenants moved out because of that and of course people from Manhattan moved in who paid $1,600 instead of the going $1,300/$1,400.”

The connection between NYC and Beacon has always been there, with economic activity happening on the river bringing goods up and down the water. The surprise of residents from New York is not new, but the replacement of residents with rising rents is hard to watch. As is families who rent currently and want to buy are having such trouble.

How are homeowners faring with their mortgages? Some are faring well with federally mandated forbearance for those who have reduced income. But property taxes are still due, and sometimes that is a cash payment to the City of Beacon. How is that working out? Those who have an escrow account might have experienced an unexpected benefit. We look into it here.

Learn more about Help for Renters at the Consumer Financial Protection Bureau, and if a landlord is getting mortgage relief under the CARES ACT.

Affordability In Beacon - Personal/Residential and Businesses Staying In Beacon - Or Leavaing.

UPDATE 2/27/2021: ALBB published an article titled “Rent Increases In Beacon - Sometimes 12% - Driving Beaconites Out Or Stress On How To Stay” - but we linked to this page (also related) by accident! Click here to find that article. Thank you!

With the 2021 Budget discussion hot off the City Council books - which has been voted on to be approved - there was much chatter about the items in - or not in - the budget. Chatter is an understatement. There was a large evening protest about the 2021 budget when the budget first came out because of the unavoidable headline of the Police budget being increased despite wide calls for a decrease in police funding. The increase was a matter or pre-negotiated contracts with the Police Union that does not fit into the bars of this rhyme, as well as the long haul that is union negotiations and the power that unions hold - for better or worse.

While the Police budget was the lead character in the protest, many members of the public during Budget Season (October - December) called into City Council Meetings every other week during Public Comment to voice their concern for the lack of focus on affordable housing in the budget. At the same time, some members of the public were calling for the property tax increase to go to cap, of 2%, in order to fund more community services. However, this would result in more of an increase for all in some form, either directly as a homeowner, or indirectly as a renter if the landlord raises the rent. Ultimately, Mayor Lee Kyriacou maintained his direction of not going to cap, and was supported by City Council in the budget.

Personal/Residential Rent Experiences

People did begin writing into A Little Beacon Blog with the concern of affordable housing and rental as well. One reader, who wanted to remain anonymous because, they stated, “everyone knows someone” in a small town, wanted to share their concern of rising rents. They stated:

“I’ll share my experience about affordable living. I’m originally from (somewhere in the 5 boroughs) but my family lives in (somewhere up north) for the last 20 years and I moved to Beacon about 6 years ago.

“The rent was very affordable. A year ago, my house was sold to an investor and immediately he tired to raise my rent $150 a month after living in the space for 4 years. I very kindly said no way - and then asked him down to the original rent and had to school him that everyone in the building had lived here for years and that our landlord only raised the rent $20 years for cost of living.

“Needless to say, 2 tenants moved out because of that and of course people from Manhattan moved in who paid $1,600 instead of the going $1,300/$1,400.

“So because of the stay at home work order, you have NYC salaries coming in, drawing up every price while the Hudson Valley local residents stay within their former means as prices are driven up on real estate and other goods. It’s a huge shifting around.

“I am happy I know how to advocate for myself, and I’m always looking on the bright side. There are some good things to everything.”

This reader is not the only one. In A Little Beacon Blog’s immediate sphere, one of our own was threatened by their landlord with a raised rent, all of a sudden. The landlord wanted to sell the house at an inflated price that they were sure would attract New York City folk. This ALBB person left their rental house, and pursued buying a home in Wappingers Falls. After a questionable process, the move ended in success, and they are now proud homeowners in Wappingers, leaving the landlord of their formal rental house a bit surprised. They aren’t the first one with a story like this.

Business Rent Increases

In the business world, there are about 20 business turnovers in Beacon, which A Little Beacon Blog hasn’t been able to blog about yet, despite this chronic turnover starting during the pandemic.

Businesses are usually quiet about how they negotiate with their landlords. The landlords hold power over them, as their landlords hold the keys to their shops. They can pull the lease, and out the shop goes. In fact, simply knowing the going rate for square footage can be difficult to come by, as business owners keep their cards close to the vest.

In terms of how businesses fared during the first shutdown, many of whom continue to suffer from reduced capacity and overall comfort levels of returning to offices, some Beacon landlords gave no concessions during the pandemic. While some businesses were shut, not bringing in any income, some landlords pondered if the renter would stay, and wanted to see financials and projections of shut-down businesses. This was especially true for fitness studios - as the landlords considered keeping the business in the space or not.

Some landlords are out of town people, who we will never meet, while other landlords are locals, including Mayor Lee Kayriakou, who owns several properties in Beacon; Nick Page’s family Hudson Valley Todd, LLC (Nick is a Dutchess County Legislator); the owner(s) of Brothers Trattoria; the owner of Minute Men Construction down on Tioranda; and other longtime Beacon residents who have made property ownership part of their profession.

Landlords, Relationships & Pricing

Many times, the reason a business stays or goes in a space can be directly tied to the relationship between the tenant (business owner) and landlord. Some building owners are compassionate with their tenants, as mine was when I had my office in the Telephone Building at 291 Main Street when it was under the ownership of Deobrah Bigelow, who fully renovated the building and it sold to a new owner - Shady Twal - who was much different.

In Beacon right now, we are seeing many turnovers. We may never know - publicly - the details of why those businesses are leaving. So I will share while I left my place on Main Street. Why I left 291 Main Street when a new building owner came to town. It may shed light on what goes on behind the scenes of why your favorite business leaves their storefront.

Personally - I don’t believe in regulation controlling this. I do believe in math, and relationships. Math means that numbers need to add up. A new building owner does need to earn something profitable to sustain their livelihood and their bills. But the relationship is just as important. And can lose a tenant.

Why ALBB Left The Telephone Building

When the new owner came in - Shady Twal - he showed much interested in my business. At the time, A Little Beacon Blog and Tin Shingle did 2 revenue generating models in that building:

  • Hosted Pop-Up Shops

  • Hosted Private Meetings

  • New: started to host a co-working space. In addition to the original business model that is there - Beahive. I did this in an effort to buy the building and keep us all there in one big co-working family. So many ideas were flying around for any of us to stay there.

When the new building owner, Shady Twal, and I first started talking, he loved my business model. He thrived on the pop-up concept, telling me that “his investors” were old-school, and didn’t understand it, but that he did. He told me that because his investors were so old, they weren’t sure if the concept of pop-up shops were legal in this historic building. However, he said, his people in Chicago were looking into it. By the way, he said he was originally from the Hudson Valley, and had moved back to this area - Wappingers Falls specifically - to get back to family roots.

Shady informed me that while pop-ups might not be legal, his people might be OK with it if I gave them a cut of my business from the event space rental business. I knew that the pop-up shops were legal. My former landlord, Deborah Bigelow, was by the book. Big time. So if she allowed it, it was most likely legal. In due diligence, I called the Building Department. The Building Inspector, David Buckley, told me that the pop-up shops were very much very legal.

To present the rent increase, Shady took me to coffee, and told me that there was a very long line for people who wanted my space. I was paying $25/square foot, but that he was told he could get $75/square foot. He could offer me $35/square foot. Plus, he had big ideas for how he could expand my business with more events. Shady made sure to tell me that if for some reason, I couldn’t get approval on future events for some reason, he and his investors could give me approval, if I gave them a cut of the business. He asked if I understood what he was talking about. I told him I understood very well.

When the lease arrived in my inbox, it included a demand for 20% of my event business. This 20% take also included a percentage of my pop-up shop’s income from their sale. This was a no-go for me. In no way was my landlord qualified to take 20% of my business. Let alone any % of the shops who rented from me. My business model was a flat rate, so that my renters could make as much money as they wanted. They paid me a flat rate, and I did as much promotion as possible to help their chances of a great sales weekend.

Of course, this was a non-negotiable item. When I balked at the item in the lease, Shady tried to backtrack, telling me why this was something I should agree to. I disagreed. He agreed to take it off the table. But by then, all trust was broken. There had been other signs that were glaring red flags, and now they were all flashing and blinking as big as possible. I told him I was out. I gave notice that I would move out by January 31, 2020.

This decision was so hard. I said to myself over and over again: “Just deal with it. Everyone has to deal with sucky landlords.” But, my experience with him on normal days - on weekend days when I was co-hosting events - became painful. He talked to me the entire time of changes he wanted to make. Major security systems he wanted to put in. Locked doors (I had an open-door policy, which is customary in retail pop-ups). He wanted to take ownership of the glass door of my office door - where he would hold 50% of what could be written there. My office windows on Main Street - he wanted ownership of those as well, giving me approval of how I could decorate.

It was too much. I was out. I cried. I sobbed. I was leaving a community space that this person had told me he loved, and wanted to support. But there was no way to nurture it within that environment. The lease also included a Privacy Policy clause, where I could not talk about him or the building or the investors. As a publisher, that was of course impossible. For example: the building had just been tagged in a graffiti artist attack, that damaged many buildings in Beacon. And I wasn’t allowed to talk about it.

I moved out very quickly that month. I painted over my chalk-board editorial calendars on the wall. He told me I didn’t need to, but I insisted. When I brought in professional painters to do it, he demanded to see paperwork and insurance from them. Done and delivered. I did not want to leave one ounce of my vision behind.

All cleared out, I arrived on the final day to show him that everything was neat and clean, ready for the security deposit to be returned to me in full. He was so nice that day, saying that everything was 100% great. Until the time came for the security deposit. His attorney, Patrick from Sobo and Sobo, had sent me a multi-page contract that was mainly comprised of a silence-clause, telling me I could not speak of Shady Twal, or the Telephone Building, or any investor or anyone involved at any time.

Of course there was no way I was going to sign that. That day, while I was closing out my clean office, Shady casually told me I could talk to his attorney about the security deposit. I told him that I had already, and that I wasn’t signing a privacy clause, and to send me a check to my new PO Box. Shady got angry, and told me that I knew everything about him, why wouldn’t I sign this. He then said that there wasn’t any money in his building account, based on how he bought the building.

Fortunately, a woman who he introduced as his business partner, Crystal, who it turns out is a realtor, and who now has an office in the Telephone Building, ominously stated: “There is money in an accountant at Sobo and Sobo,” which was the attorney of the building and of Shady.

Later that afternoon, I emailed the attorney, Patrick, letting him know I had the good fortune of meeting Crystal, after Shady told me there was no money in the account, but that Crystal kindly told me that there was, and to please send the check to my brand new PO Box in the Beacon Post Office.

I tell you this story because one never knows what happens between the lines of a business transaction, or of a business moving out.

What follows this article is a series of articles of the businesses that have left and opened. We wish all of these businesses the best: those who have opened here - in brand new locations - or who moved down the road to occupy a newly empty space - and to those who closed up shop and are trying to do it differently, or maybe here again.