Kingston Breaks Ground on $112 Million Affordable Housing Project

Construction officially began this week on what city officials are calling a generational investment in Kingston's housing stock. The Kingston Housing Authority's $112 million, three-property redevelopment project will preserve 158 existing affordable apartments and add 80 brand-new senior living units to the city.

The project, funded by a combination of $82.6 million in state financing, federal and state tax credits, a $2 million contribution from Kingston's Clean Energy Initiative, and $700,000 from Ulster County, represents the largest single investment in public housing the city has seen in decades.

Three Properties, One Vision

The redevelopment spans three existing public housing complexes across Kingston. Phase One — the Leonard and Vera Van Dyke Apartments — is where construction has started. Phase Two will bring Penn Court, an 80-unit affordable senior housing community. And Phase Three, expected to begin within two years, will overhaul the Rondout Garden Apartments.

All units will remain affordable for residents earning at or below the area median income. Thirty of the new units will include on-site support services, a first for Kingston public housing.

A City grappling with housing costs

The investment couldn't come at a better time. Kingston's housing vacancy rate for buildings with six or more units has dropped to just 1.57 percent. Two-bedroom apartments in the city average around $3,100 per month, and one-bedrooms run between $1,450 and $1,600. Nearly 58 percent of Kingston renters now pay more than 30 percent of their income on housing — a figure higher than most cities in New York State outside New York City.

"This is about making sure that Kingston remains a city where working families, seniors, and first-time residents can actually afford to live," said Mayor Steve Noble at the groundbreaking ceremony on July 29.

Beyond Public Housing: Kingston's Construction Boom

This project is part of a much larger wave of development hitting Kingston. The Midtown neighborhood alone is seeing a construction surge: the Barrel Factory Apartments will bring 112 units to Smith Avenue and Bruyn Street, Broadway Commons is adding 70 residential units and commercial space at 615 Broadway, and the Golden Hill Apartments — 164 affordable units at the former Ulster County Jail site — are on track for 2026 completion.

The Metro, a $30-40 million carbon-neutral building, will combine manufacturing, education, and arts space, with completion also expected this year. The city is simultaneously planning a 0.55-acre community park and the Headstone Gallery arts hub.

What This Means for Residents

For current public housing residents, the redevelopment means upgraded, modernized homes without displacement — all tenants will be relocated during construction and given first right of return. For the broader community, it signals that Kingston is serious about growing in a way that doesn't price out the people who've called it home.

The Kingston Housing Authority, in partnership with Mountco Construction and Development Corp, has been working on this plan since 2019. What started as a renovation of the Van Dyke Apartments has grown into the most ambitious housing project in the city's modern history.

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