Sounds like you and your husband have quite the commute right now! I have lived in Orange County for the majority of my life so I will provide you with information on some of the most attractive locations within the county.
I assume that you and your husband are working at one of two locations: Orange County Jail (Goshen) or Downstate Correctional Facility (Fishkill).
First off, there are a few locations that you want to avoid in the county: Downtown-City of Middletown, City of Newburgh, and probably the City of Port Jervis. These locations have the highest crime rates and unsurprisingly the worst schools, statistically speaking.
Despite this, there are many attractive locations in the county that are worth your time in investigation. It would be nice to know your budget, but I'll lay out a general list for you:
Montgomery, NY
Trulia
Wiki
Small and affluent village just inside the eastern crest of the Catskill Mountains. Superb schools (Valley Central School District). I graduated from this district and was very well prepared for college and left with a whopping 21 college credits. Grocery store (Shoprite) and other stores in-town. Major retail 10 miles away in either Newburgh or Middletown. Plenty of parks nearby. Right on I-84 and near 17/87.
Washingtonville
Trulia
Wiki
Another small and upscale village. Excellent schools. Stop & Shop in town. Major retail a short ride away in Newburgh or Harriman. Plenty of parks nearby.
Goshen
Trulia
Wiki
The county seat of Orange - one of the most expensive spots in the county. A nice village with excellent schools. Major retail 5 miles away in Middletown. Plenty of parks nearby. On Route 17.
Chester
Trulia
Wiki
Village in the southern part of the county. Great schools. Good amenities. Right on major Route 17. Plenty of parks nearby.
The aforementioned locations will provide you with a good starting point and are a reasonable commute distance from either the Orange County Jail or the Downstate Correctional Facility (again, not sure which one you are working at).
Some other locations that may be worth looking in to: Monroe/Woodbury, Central Valley, Cornwall, Warwick, Florida
*Major retail in the county is in the Town of Wallkill, Town of Newburgh, and Harriman.
*Many commuters to NYC, but I wouldn't call any community a 'bedroom' community.
*Rail service to NYC is abundant (stations at Port Jervis, Otisville, Middletown, Campbell Hall, Salisbury Mills/Cornwall, Harriman, and Tuxedo with service to Secaucus). Other option would be direct service to Manhattan out of Beacon. Buses also plentiful.
*Second fastest growing county in the state according to the 2010 census. Growth started in earnest following 9/11. I would expect property values to be stable or potentially rise slightly in the near future.
Bottom line:
You won't have any issues finding what you are looking for here. State College [Penn State] is 3.5 hours away (easy drive) - I'll actually be working there shortly.
If you have any other questions, comments, or concerns, feel free to ask here or message me.