NY State Senate Bill 2009-S4586

Senate Bill S4586

2009-2010 Legislative Session

Relates to the powers of a social services official to receive and dispose of a deed, mortgage or lien

download bill text pdf

Archive: Last Bill Status - In Senate Committee Social Services Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2010	referred to social services
Apr 24, 2009	referred to social services

2009-S4586 (ACTIVE) - Details

Current Committee:: Senate Social Services
Law Section:: Social Services Law
Laws Affected:: Amd §106, Soc Serv L

2009-S4586 (ACTIVE) - Summary

Relates to the powers of a social services official to receive and dispose of a deed, mortgage or lien.

2009-S4586 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S4586

 TITLE OF BILL :

An act to amend the social services law, in relation to the powers of
a social services official to receive and dispose of a deed, mortgage
or lien


 PURPOSE OR GENERAL IDEA OF BILL :

Requires local social service districts to provide an annual
cost-accounting of public assistance incurred in exchange for a deed,
mortgage or lien taken against a recipient's real property.

 SUMMARY OF SPECIFIC PROVISIONS :

Section 1 describes provisions of the social services law that are
being amended.

Sections 2 and 3 provide that a social services official may not
assert any claim to recover payments made or the cost of benefits
provided to a recipient or the members of his or her household under
food stamps, child care or the home energy assistance program (HEAP).

Section 4 provides that in cases where a custodial parent declines to

provide the lien or mortgage on their home in exchange for public
assistance to the entire family, that the children in the home remain
eligible.

Section 5 provides that until any mortgage taken against the property
of the public assistance recipient is paid off, that recipient shall
receive an annual accounting of the public assistance incurred no
later than four months after the end of the county's fiscal year.
Such accounting shall delineate all assistance incurred, the current
amount of recoverable assistance, the amount of child support
collected. Further, in the event that no accounting is produced for
the recipient, no recoupment can be made for that fiscal year.

 JUSTIFICATION :

Currently, the eligibility and receipt of public assistance for people
who own homes is treated much differently than for people who rent.
Public assistance is issued as a grant to individuals who do not own a
home, but is issued as a loan to individuals for families who own a
home or have resources exceeding the eligibility threshold. In cases
where a divorce, death or other unfortunate circumstance results in
the custodial parent retaining ownership of the home, often their only
asset, local social services districts can take a lien against the
home in exchange for benefits. While any applicant is required to
provide all financial information, including assets toward which the
local district may be entitled to a lien - the district is not
required to provide any clear accounting after the issue of any
benefits. This lack of accountability on part of the local district
has left many in prolonged repayment plans, often repaying
significantly more than they were "loaned."

Additionally, local districts are currently able to take liens against
a recipient's home in exchange for food stamp benefits, child care and
home energy assistance - all funds that originate largely at the
Federal level. Food stamps in particular come with no cost to a county
or local district, they actually bring more money to these counties.
In a situation where one must decide between their home and providing
food for their family, taking a lien against ones home is hardly just.
Home Energy Assistance Program and child care subsidies also originate
at the federal level with no significant cost to the county aside from
those associated with administration. These federally funded programs
were enacted to keep individuals, children and families nourished,
safe and in good health.

In one particular circumstance a woman applied for benefits so that
she and her children could survive after a series of unfortunate
circumstances, during which she was able to retain ownership of her
home.  During the application process she signed over a lien on her
home.  Following three years of receiving public assistance, she was
able to thrive without benefits only to discover that the local social
services district claimed that she owed $50 thousand, and would not
remove the lien until that amount was paid.  Uncommonly, she retained
all of the records of what assistance she received and confirmed that
she only received $20 thousand in benefits, of which a large portion
originated at the Federal level.  In situations like this, where there
is an undue burden of proof on a public assistance recipient it is
necessary that they are provided with all records justifying the debts
assessed by local social services districts - especially when these
debts are incurred against the value of the home, often the sole
family asset.

This bill also provides that an applicant can decline the granting of
a lien against their home. In cases where a custodial parent willingly
declines the lien, they are willingly declining benefits paid to them,
but are still able to receive support for any children or dependents
without potentially sacrificing the ownership of their home.

 PRIOR LEGISLATIVE HISTORY :

None.

 FISCAL IMPLICATIONS :

To be determined.

 LOCAL FISCAL IMPLICATIONS :

To be determined.

 EFFECTIVE DATE :
This act shall take effect on the sixtieth day after it shall have
become law.

2009-S4586 (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  4586

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                             April 24, 2009
                               ___________

Introduced  by Sen. SQUADRON -- read twice and ordered printed, and when
  printed to be committed to the Committee on Social Services

AN ACT to amend the social services law, in relation to the powers of  a
  social services official to receive and dispose of a deed, mortgage or
  lien

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Section 106 of the social services law, as amended by chap-
ter 200 of the laws of 1946, the section heading as  amended  and  para-
graphs (e) and (f) of subdivision 2 as added by chapter 1080 of the laws
of  1974, subdivision 1 and paragraph (a) of subdivision 2 as amended by
chapter 764 of the laws of 1972, subparagraph  5  of  paragraph  (a)  of
subdivision  2  as  amended  by  chapter  764 of the laws of 1972 and as
renumbered by chapter 1080 of the laws of 1974, paragraph (b) of  subdi-
vision 2 as amended by chapter 150 of the laws of 1955, paragraph (c) of
subdivision  2  as amended by chapter 310 of the laws of 1962, paragraph
(d) of subdivision 2 as added by chapter 43 of the laws of 1952,  subdi-
vision  3 as amended by chapter 271 of the laws of 1948, and subdivision
4 as added by chapter 340 of the laws of 2003, is  amended  to  read  as
follows:
  S  106. Powers of social services official to receive and dispose of a
deed, mortgage, or lien. 1. A social services official  responsible,  by
or  pursuant to any provision of this chapter, for the administration of
assistance or care granted or applied for may  accept  a  deed  of  real
property  and/or  a  mortgage  thereon  on  behalf of the public welfare
district for the assistance and care of a person at public  expense  but
such  property  shall  not  be  considered  as public property and shall
remain on the tax rolls and such deed or mortgage shall  be  subject  to
redemption  as provided in paragraph (a) of subdivision [two hereof] SIX
OF THIS SECTION.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11198-03-9

S. 4586                             2

  2. ANY INCONSISTENT  PROVISION  OF  THIS  CHAPTER  OR  ANY  OTHER  LAW
NOTWITHSTANDING,  A  SOCIAL  SERVICES  OFFICIAL MAY NOT ASSERT ANY CLAIM
UNDER ANY PROVISION OF THIS CHAPTER TO RECOVER PAYMENTS MADE OR THE COST
OF BENEFITS PROVIDED TO A RECIPIENT OR THE MEMBERS OF HIS OR HER  HOUSE-
HOLD UNDER FOOD STAMPS, CHILD CARE OR THE HOME ENERGY ASSISTANCE PROGRAM
(HEAP).
  3.  ANY  INCONSISTENT  PROVISION  OF  THIS CHAPTER OR OF ANY OTHER LAW
NOTWITHSTANDING, A SOCIAL SERVICES OFFICIAL MAY  NOT  ASSERT  ANY  CLAIM
UNDER  ANY  PROVISION  OF  THIS  CHAPTER  TO  RECOVER PAYMENTS OF PUBLIC
ASSISTANCE  IF  SUCH  PAYMENTS  WERE   REIMBURSED   BY   CHILD   SUPPORT
COLLECTIONS.
  4.  ANY  INCONSISTENT  PROVISION  OF  THIS CHAPTER OR OF ANY OTHER LAW
NOTWITHSTANDING, A SOCIAL SERVICES OFFICIAL MAY  NOT  ASSERT  ANY  CLAIM
UNDER  ANY  PROVISION  OF  THIS  CHAPTER  TO  RECOVER PAYMENTS OF PUBLIC
ASSISTANCE UNLESS, BEFORE IT HAS ACCEPTED A DEED  OR  MORTGAGE  FROM  AN
APPLICANT  OR RECIPIENT, IT HAS FIRST RECEIVED A WRITTEN ACKNOWLEDGEMENT
FROM THE APPLICANT OR RECIPIENT ACKNOWLEDGING THAT IF THE  APPLICANT  OR
RECIPIENT  DECLINES  TO PROVIDE THE LIEN OR MORTGAGE THE CHILDREN IN THE
HOUSEHOLD REMAIN ELIGIBLE FOR PUBLIC ASSISTANCE.
  5.(A) UNTIL SUCH PROPERTY OR MORTGAGE IS SOLD, ASSIGNED OR  FORECLOSED
PURSUANT  TO LAW BY THE SOCIAL SERVICES OFFICIAL, OR UNTIL SUCH MORTGAGE
HAS BEEN PAID OFF PURSUANT TO THIS SUBDIVISION, THE PERSON  GIVING  SUCH
DEED  OR MORTGAGE, OR HIS OR HER ESTATE OR THOSE ENTITLED THERETO, SHALL
RECEIVE AN ANNUAL ACCOUNTING  OF  THE  PUBLIC  ASSISTANCE  INCURRED  AND
REPAIRS  AND  TAXES  PAID  ON  PROPERTY. THE DISTRICT SHALL PROVIDE SUCH
ACCOUNTING NO LATER THAN FOUR MONTHS  AFTER  THE  END  OF  THE  COUNTY'S
FISCAL YEAR.
  (B) SUCH ACCOUNTING SHALL INCLUDE INFORMATION REGARDING THE DEBT OWED,
INCLUDING, BUT NOT LIMITED TO: AN ENUMERATION OF ALL ASSISTANCE INCURRED
BY  THE  PERSON  GIVING SUCH DEED OR MORTGAGE OR HIS OR HER HOUSEHOLD TO
DATE, THE CURRENT AMOUNT OF RECOVERABLE ASSISTANCE  UNDER  THE  DEED  OR
MORTGAGE,  THE  AMOUNT  OF  CHILD  SUPPORT  COLLECTED BY THE DISTRICT AS
REIMBURSEMENT FOR ASSISTANCE PROVIDED TO THE PERSON GIVING SUCH DEED  OR
MORTGAGE  OR  HIS  OR  HER  HOUSEHOLD,  WHICH SHALL BE DEDUCTED FROM THE
AMOUNT RECOVERABLE PURSUANT TO SUBDIVISION THREE OF THIS SECTION.
  (C) IN THE EVENT THAT AN ANNUAL ACCOUNTING  IS  NOT  PROVIDED  TO  THE
PERSON  GIVING SUCH DEED OR MORTGAGE OR HIS OR HER ESTATE OR THOSE ENTI-
TLED THERETO, WITHIN THE FOUR MONTH PERIOD REQUIRED IN PARAGRAPH (A)  OF
THIS  SUBDIVISION,  NO  ASSISTANCE  SHALL BE RECOVERABLE FOR THAT FISCAL
YEAR.
  (D) NO DEED OR MORTGAGE TAKEN ON OR BEFORE JANUARY FIRST, TWO THOUSAND
TEN SHALL BE  VALID  UNLESS  A  SOCIAL  SERVICES  OFFICIAL  PROVIDES  AN
ACCOUNTING  TO  THE  PERSON  GIVING  SUCH DEED OR MORTGAGE OR HIS OR HER
ESTATE OR THOSE ENTITLED THERETO, PURSUANT TO THIS  SUBDIVISION,  ON  OR
BEFORE NOVEMBER FIRST, TWO THOUSAND TEN.
  [2.]  6.  (a) (1) Until such property or mortgage is sold, assigned or
foreclosed pursuant to law by the social services official,  the  person
giving  such  deed or mortgage, or his estate or those entitled thereto,
may redeem the same by the payment of  all  expenses  incurred  for  the
support  of the person, and for repairs and taxes paid on such property,
provided, however, that a social services  official  may  enter  into  a
contract  for  such  redemption, subject to the provisions of this para-
graph, and containing such terms and  conditions,  including  provisions
for  periodic  payments,  [with  or]  without  interest,  [as the social
services official shall deem appropriate,] for an amount less  than  the
full expenses incurred for the support of the person and for repairs and

S. 4586                             3

taxes  paid  on such property (hereinafter called a "lesser sum"), which
lesser sum shall in no event be less than  the  difference  between  the
appraised  value of such property and the total of the then unpaid prin-
cipal  balance  of any recorded mortgages and the unpaid balance of sums
secured by other liens against such property.
  (2) In the case of a redemption for a lesser sum, the social  services
official  shall  obtain  (i) an appraisal of the current market value of
such property, by an appraiser acceptable to both parties,  and  (ii)  a
statement  of  the  principal balance of any recorded mortgages or other
liens against such property (excluding the debt  secured  by  the  deed,
mortgage or lien of the social services official). Any expenses incurred
pursuant  to  this  paragraph  shall  be audited and allowed in the same
manner as other official expenses.
  (3) Every redemption contract for any lesser sum shall be approved  by
the  department  upon  an  application  by  the social services official
containing the appraisal and statement required by subparagraph  two,  a
statement  by  the  social services official of his reasons for entering
into the contract for such lesser sum and any other information required
by regulations of the department.
  (4) So long as the terms  of  the  approved  redemption  contract  are
performed, no public sale of such property shall be held.
  (5)  The  redemption  for  a  lesser sum shall reduce the claim of the
social services official against the recipient on the  implied  contract
under  section  one hundred four of this chapter or under any other law,
to the extent of all sums paid in redemption.
  (b) In order to allow a minimum  period  for  redemption,  the  public
welfare official shall not sell the property or mortgage until after the
expiration  of  one year from the date he received the deed or mortgage,
but if unoccupied property has not been redeemed within six months  from
the  date  of  death  of  the  person who conveyed it to him by deed the
public welfare official may thereafter, and  before  the  expiration  of
such year, sell the property.
  (c)  Except  as  otherwise provided in this chapter, upon the death of
the person or his receiving institutional care, if the mortgage has  not
been redeemed, sold or assigned, the public welfare official may enforce
collection  of the mortgage debt in the manner provided for the foreclo-
sure of mortgages by action.
  (d) Provided the department shall have given its approval in  writing,
the  public  welfare  official may, when in his judgment it is advisable
and in the public interest, release a part of the property from the lien
of the mortgage to permit, and in consideration of,  the  sale  of  such
part  by  the  owner  and the application of the proceeds to reduce said
mortgage or to satisfy and discharge or reduce a prior or superior mort-
gage.
  (e) While real property covered by a deed or mortgage is occupied,  in
whole or in part, by an aged, blind or disabled person who executed such
deed or mortgage to the social services official for old age assistance,
assistance  to  the  blind or aid to the disabled granted to such person
before January first, nineteen hundred seventy-four, the social services
official shall not sell the property or assign or enforce  the  mortgage
unless  it appears reasonably certain that the sale or other disposition
of the property will not materially adversely affect the welfare of such
person. After the death of such person no claim for  assistance  granted
him  shall be enforced against any real property while it is occupied by
the surviving spouse.

S. 4586                             4

  (f) Except as otherwise provided, upon  the  death  of  a  person  who
executed  a  lien  to the social services official in return for old age
assistance, assistance to the blind or aid to the disabled granted prior
to January first, nineteen hundred seventy-four, or before the death  of
such  person  if  it  appears  reasonably certain that the sale or other
disposition of the property will not  materially  adversely  affect  the
welfare  of  such  person, the social services official may enforce such
lien in the manner provided by article three of the lien law. After  the
death  of such person the lien may not be enforced against real property
while it is occupied by the surviving spouse.
  [3.] 7. The sale of any parcel of real property or  mortgage  on  real
property  by  the  public welfare official, under the provisions of this
section, shall be made at a public sale, held at least two  weeks  after
notice thereof shall have been published in a newspaper having a general
circulation  in that section of the county in which the real property is
located. Such notice shall specify the time and  place  of  such  public
sale  and  shall contain a brief description of the premises to be sold,
or upon which the mortgage is a lien, as the case may be. Unless in  the
judgment  of  the  public  welfare  official,  it shall be in the public
interest to reject all bids, such parcel or mortgage shall  be  sold  to
the highest responsible bidder.
  [4.  Any  inconsistent  provision  of this chapter or of any other law
notwithstanding, a social services official may  not  assert  any  claim
under  any  provision  of  this  chapter  to  recover payments of public
assistance  if  such  payments  were   reimbursed   by   child   support
collections.]
  S  2.  This  act  shall take effect on the sixtieth day after it shall
have become a law.

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