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Hi There,
I’m a Realtor and see conversions happen all the time. Typically, changing a single family into a multi-family residence can be difficult. However, if you are converting from a 2 to a 3 family, you’d have to apply for it at the buildings dept. They would assess if the third unit has the proper exits/entrances, ceiling height, etc. Historical districts add another layer of difficulty at times, but a lot of the historical homes in the area are converted to multi family dwellings these days so you should be OK.
Here’s a link to the Newburgh Buildings Dept
http://www.townofnewburgh.org/Cit-e-Access/webpage.cfm?TID=40&TPID=4848
Hope that helps!
Cecilly Bumatay
Keller Williams Realty
http://www.C2CHomes.com