S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  787--A
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 6, 2021
                                ___________
 
 Introduced  by  Sen. KRUEGER -- read twice and ordered printed, and when
   printed to be committed to the Committee on Social Services -- commit-
   tee discharged, bill amended, ordered reprinted as amended and  recom-
   mitted to said committee

 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:
   §  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 TWENTY-ONE 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:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD00308-02-1

 S. 787--A                           2
 
   (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[.
   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-

 S. 787--A                           3
 
 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-
 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-

 S. 787--A                           4
 
 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
 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.
   §  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. 787--A                           5
 
   § 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
 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.]
   §  3. This act shall take effect on the first of April next succeeding
 the date on which it shall have become a law.