S T A T E O F N E W Y O R K
________________________________________________________________________
10166
I N A S S E M B L Y
May 13, 2016
___________
Introduced by M. of A. BARRON -- read once and referred 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
section 1 of part S of chapter 56 of the laws of 2014, 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] SHALL NOT accept a
deed of real property and/or a mortgage thereon on behalf of the social
services 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 six
hereof].
2. [A social services official may not assert any claim under any
provision of this section to recover] (A) NOTWITHSTANDING SUBDIVISION
ONE OF THIS SECTION, IF, PRIOR TO THE EFFECTIVE DATE OF THE CHAPTER OF
THE LAWS OF TWO THOUSAND SIXTEEN THAT AMENDED THIS SECTION, A SOCIAL
SERVICES OFFICIAL ACCEPTED A DEED OF REAL PROPERTY AND/OR A MORTGAGE ON
BEHALF OF THE SOCIAL SERVICES DISTRICT FOR THE ASSISTANCE OF A PERSON AT
PUBLIC EXPENSE, SUCH SOCIAL SERVICES OFFICIAL SHALL NOT ASSERT ANY CLAIM
UNDER ANY PROVISION OF THIS SECTION TO RECOVER:
(1) payments made as part of Supplemental Nutrition Assistance Program
(SNAP), child care services, Emergency Assistance to Adults or the Home
Energy Assistance Program (HEAP)[.];
[3. A social services official may not assert any claim under any
provision of this section to recover] (2) payments of public assistance
if such payments were reimbursed by child support collections[.];
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD13675-02-6
A. 10166 2
[4. A social services official may not assert any claim under any
provision of this section to recover] (3) payments of public assistance
unless, before [it has accepted] a deed or mortgage WAS ACCEPTED from an
applicant or recipient, [it has] THE OFFICIAL first received a signed
acknowledgment from the applicant or recipient acknowledging that:
[(a)] A. benefits provided as part of Supplemental Nutrition Assist-
ance Program (SNAP), child care services, Emergency Assistance to Adults
or the Home Energy Assistance Program (HEAP) may not be included as part
of the recovery to be made under the mortgage or lien; and
[(b)] B. if the applicant or recipient declines to provide the lien or
mortgage the children in the household SHALL remain eligible for public
assistance.
[5. (a)] (B) SUCH PROPERTY SHALL NOT BE CONSIDERED PUBLIC PROPERTY AND
SHALL REMAIN ON THE TAX ROLLS AND SUCH DEED OR MORTGAGE SHALL BE SUBJECT
TO REDEMPTION AS PROVIDED IN SUBPARAGRAPH ONE OF PARAGRAPH (D) OF THIS
SUBDIVISION.
(C) (1) Until a deed, mortgage, or lien, accepted prior to [or after]
the effective date of this [act,] SECTION is satisfied or otherwise
disposed of, the social services district shall issue and mail to the
last known address of the person [giving] WHO GAVE such deed or mort-
gage, or his or her estate or those entitled thereto, a biennial
accounting of the public assistance incurred and repairs and taxes paid
on property. The social services district shall provide such accounting
no later than February first, two thousand sixteen and biennially there-
after.
[(b)] (2) Such accounting shall include information regarding the debt
owed as of the end of the district's most recent fiscal year including,
but not limited to:
[(1)] A. an enumeration of all public assistance incurred by the
person [giving] WHO GAVE such deed or mortgage or his or her household
to date;
[(2)] B. the current amount of recoverable public assistance under the
deed or mortgage;
[(3)] C. the amount of any credits against public assistance including
but not limited to:
[A.] (I) the amount of child support collected and retained by the
social services district as reimbursement for public assistance;
[B.] (II) recoveries made under section one hundred four of this
title;
[C.] (III) recoveries made under section one hundred thirty-one-r of
this chapter.
[(4)] D. Said accounting shall also provide information regarding the
manner in which payments may be made to the social services district to
reduce the amount of the mortgage or lien.
[(c)] (3) In the event that a biennial accounting is not issued and
mailed to the last known address of the person [giving] WHO GAVE such
deed or mortgage or his or her estate or those entitled thereto, within
the time period required in [paragraph (a) of this subdivision] SUBPARA-
GRAPH ONE OF THIS PARAGRAPH, no public assistance shall be recoverable
under this section for the previous two fiscal years. In the event that
a biennial accounting is not issued and mailed to the last known address
of the person [giving] WHO GAVE such deed or mortgage or his or her
estate or those entitled thereto, within the time period required in
[paragraph (a) of this subdivision] SUBPARAGRAPH ONE OF THIS PARAGRAPH,
and such person has received no recoverable public assistance in the
district's most recent fiscal year, no public assistance shall be recov-
A. 10166 3
erable under this section for the most recent two fiscal years where
public assistance remains recoverable.
[6. (a) (1)] (D) (1) A. Until such property or mortgage is sold,
assigned or foreclosed pursuant to law by the social services official,
the person [giving] WHO GAVE such deed or mortgage, or his OR HER 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 [paragraph] SUBPARAGRAPH, and containing such terms
and conditions, including provisions for periodic payments, without
interest, for an amount less than the full expenses incurred for the
support of the person and for repairs and 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 principal balance of any recorded mort-
gages and the unpaid balance of sums secured by other liens against such
property.
[(2)] B. 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] SUBPARAGRAPH shall be audited and
allowed in the same manner as other official expenses.
[(3)] C. 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 [subpara-
graph two] CLAUSE B OF THIS SUBPARAGRAPH, a statement by the social
services official of his OR HER reasons for entering into the contract
for such lesser sum and any other information required by regulations of
the department.
[(4)] D. So long as the terms of the approved redemption contract are
performed, no public sale of such property shall be held.
[(5)] E. 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] TITLE or under any
other law, to the extent of all sums paid in redemption.
[(b)] (2) In order to allow a minimum period for redemption, the
social services official shall not sell the property or mortgage until
after the expiration of one year from the date he OR SHE received the
deed or mortgage, but if unoccupied property has not been redeemed with-
in six months from the date of death of the person who conveyed it to
him OR HER by deed the social services official may thereafter, and
before the expiration of such year, sell the property.
[(c)] (3) Except as otherwise provided in this chapter, upon the death
of the person or his OR HER receiving institutional care, if the mort-
gage has not been redeemed, sold or assigned, the social services offi-
cial may enforce collection of the mortgage debt in the manner provided
for the foreclosure of mortgages by action.
[(d)](4) Provided the department shall have given its approval in
writing, the social services official may, when in his OR HER judgment
it is advisable and in the public interest, release a part of the prop-
erty 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
A. 10166 4
to reduce said mortgage or to satisfy and discharge or reduce a prior or
superior mortgage.
[(e)](5) While real property covered by a deed or mortgage is occu-
pied, 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 OR HER shall be enforced against any
real property while it is occupied by the surviving spouse.
[(f)](6) 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.
[7.](E) The sale of any parcel of real property or mortgage on real
property by the social services 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 social services official, it shall be in the public
interest to reject all bids, such parcel or mortgage shall be sold to
the highest responsible bidder.
[8.](F) It is permissible for social services officials to subordinate
a mortgage taken on behalf of the social services district pursuant to
this section. In the event that a social services official determines to
subordinate a mortgage, or lien, he or she shall do so within thirty
days of receipt of written notice that the mortgagor is attempting to
modify their mortgage that is held by a mortgagee with superior lien
rights and subordination of the social services district's mortgage is
required by such mortgagee in order for it to approve or complete the
modification.
S 2. Section 360 of the social services law, as added by chapter 722
of the laws of 1951, subdivisions 1 and 3 as amended by section 92 of
part B of chapter 436 of the laws of 1997, subdivision 2 as amended by
chapter 909 of the laws of 1974, and subdivision 4 as amended by chapter
803 of the laws of 1959, is amended to read as follows:
S 360. Real property of legally responsible relatives[; deeds and
mortgages may be required]. [1.] The ownership of real property by an
applicant or applicants, recipient or recipients who is or are legally
responsible relatives of the child or children for whose benefit the
application is made or the aid is granted, whether such ownership be
individual or joint as tenants in common, tenants by the entirety or
joint tenants, shall not preclude the granting of family assistance or
the continuance thereof if he or they are without the necessary funds to
A. 10166 5
maintain himself, herself or themselves and such child or children.
[The social services official may, however, require, as a condition to
the granting of aid or the continuance thereof, that he or she be given
a deed of or a mortgage on such property in accordance with the
provisions of section one hundred six.
2. However, while the property covered by the deed or mortgage is
occupied, in whole or in part, by the responsible relative who gave such
deed or mortgage to the social services official or, by a child for
whose benefit the aid was granted the social services official shall not
sell the property or assign or enforce the mortgage without the written
consent of the department; and, when the property is occupied by such
child, such consent shall not be given unless it appears reasonably
certain that the sale or other disposition of the property will not
materially adversely affect the welfare of such child.
3. The net amount recovered by the social services department from
such property, less any expenditures approved by the department for the
burial of the relative or the child who dies while in receipt of aid
under this title, shall be used to repay the social services district,
the state and the federal government their proportionate share of the
cost of family assistance granted. The state and federal share shall be
paid by the social services district to the state and the manner and
amount of such payment shall be determined in accordance with the regu-
lations of the department.
4. If any balance remains it shall belong to the estate of the legal-
ly responsible relative or relatives and the public welfare district
shall forthwith credit the same accordingly, and, provided they claim it
within four years thereafter, pay it to the persons entitled thereto.
If not so claimed within four years it shall be deemed abandoned proper-
ty and be paid to the state comptroller pursuant to section thirteen
hundred five of the abandoned property law.
5. The proceeds or moneys due the United States shall be paid or
reported in such manner and at such times as the federal security agency
or other authorized federal agency may direct.]
S 3. This act shall take effect on the first of April next succeeding
the date on which it shall have become a law.