Bill Text: NY A02167 | 2019-2020 | General Assembly | Introduced

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

Spectrum: Partisan Bill (Democrat 14-0)

Status: (Introduced - Dead) 2020-01-08 - referred to ways and means [A02167 Detail]

Download: New_York-2019-A02167-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          2167
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                    January 22, 2019
                                       ___________
        Introduced  by  M. of A. BARRON, HEVESI, PEOPLES-STOKES, WILLIAMS, GOTT-
          FRIED, COOK, CRESPO, JAFFEE, CARROLL, STECK, AUBRY --  Multi-Sponsored
          by  --  M. of A.   SIMON -- 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:
     1    Section 1. Section 106 of the  social  services  law,  as  amended  by
     2  section  1  of  part  S of chapter 56 of the laws of 2014, is amended to
     3  read as follows:
     4    § 106. Powers of social services official to receive and dispose of  a
     5  deed,  mortgage,  or lien. 1. A social services official responsible, by
     6  or pursuant to any provision of this chapter, for the administration  of
     7  assistance  [or  care]  granted  or applied for [may] shall not accept a
     8  deed of real property and/or a mortgage thereon on behalf of the  social
     9  services  district  for  the assistance [and care] of a person at public
    10  expense [but such property shall not be considered  as  public  property
    11  and  shall  remain  on  the tax rolls and such deed or mortgage shall be
    12  subject to redemption as provided in paragraph (a)  of  subdivision  six
    13  hereof].
    14    2.  [A  social  services  official  may not assert any claim under any
    15  provision of this section to recover]  (a)  Notwithstanding  subdivision
    16  one  of  this section, if, prior to the effective date of the chapter of
    17  the laws of two thousand nineteen that amended this  section,  a  social
    18  services  official accepted a deed of real property and/or a mortgage on
    19  behalf of the social services district for the assistance of a person at
    20  public expense, such social services official shall not assert any claim
    21  under any provision of this section to recover:
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00036-01-9
        A. 2167                             2
     1    (1) payments made as part of Supplemental Nutrition Assistance Program
     2  (SNAP), child care services, Emergency Assistance to Adults or the  Home
     3  Energy Assistance Program (HEAP)[.
     4    3.  A  social  services  official  may  not assert any claim under any
     5  provision of this section to recover];
     6    (2) payments of public assistance if such payments were reimbursed  by
     7  child support collections[.
     8    4.  A  social  services  official  may  not assert any claim under any
     9  provision of this section to recover];
    10    (3) payments of public assistance unless, before [it has  accepted]  a
    11  deed  or  mortgage was accepted from an applicant or recipient, [it has]
    12  the official first received a signed acknowledgment from  the  applicant
    13  or recipient acknowledging that:
    14    [(a)]  A.  benefits provided as part of Supplemental Nutrition Assist-
    15  ance Program (SNAP), child care services, Emergency Assistance to Adults
    16  or the Home Energy Assistance Program (HEAP) may not be included as part
    17  of the recovery to be made under the mortgage or lien; and
    18    [(b)] B. if the applicant or recipient declines to provide the lien or
    19  mortgage the children in the household shall remain eligible for  public
    20  assistance.
    21    [5. (a)] (b) Such property shall not be considered public property and
    22  shall remain on the tax rolls and such deed or mortgage shall be subject
    23  to  redemption  as provided in subparagraph one of paragraph (d) of this
    24  subdivision.
    25    (c) (1) Until a deed, mortgage, or lien, accepted prior to [or  after]
    26  the  effective  date  of  this  [act,] section is satisfied or otherwise
    27  disposed of, the social services district shall issue and  mail  to  the
    28  last  known  address  of the person [giving] who gave such deed or mort-
    29  gage, or his or  her  estate  or  those  entitled  thereto,  a  biennial
    30  accounting  of the public assistance incurred and repairs and taxes paid
    31  on property. The social services district shall provide such  accounting
    32  no later than February first, two thousand sixteen and biennially there-
    33  after.
    34    [(b)] (2) Such accounting shall include information regarding the debt
    35  owed  as of the end of the district's most recent fiscal year including,
    36  but not limited to:
    37    [(1)] A. an enumeration of  all  public  assistance  incurred  by  the
    38  person  [giving]  who gave such deed or mortgage or his or her household
    39  to date;
    40    [(2)] B. the current amount of recoverable public assistance under the
    41  deed or mortgage;
    42    [(3)] C. the amount of any credits against public assistance including
    43  but not limited to:
    44    [A.] (i) the amount of child support collected  and  retained  by  the
    45  social services district as reimbursement for public assistance;
    46    [B.]  (ii)  recoveries  made  under  section  one hundred four of this
    47  title;
    48    [C.] (iii) recoveries made under section one hundred  thirty-one-r  of
    49  this chapter.
    50    [(4)]  D. Said accounting shall also provide information regarding the
    51  manner in which payments may be made to the social services district  to
    52  reduce the amount of the mortgage or lien.
    53    [(c)]  (3)  In  the event that a biennial accounting is not issued and
    54  mailed to the last known address of the person [giving]  who  gave  such
    55  deed  or mortgage or his or her estate or those entitled thereto, within
    56  the time period required in [paragraph (a) of this subdivision] subpara-
        A. 2167                             3
     1  graph one of this paragraph, no public assistance shall  be  recoverable
     2  under  this section for the previous two fiscal years. In the event that
     3  a biennial accounting is not issued and mailed to the last known address
     4  of  the  person  [giving]  who  gave such deed or mortgage or his or her
     5  estate or those entitled thereto, within the  time  period  required  in
     6  [paragraph  (a) of this subdivision] subparagraph one of this paragraph,
     7  and such person has received no recoverable  public  assistance  in  the
     8  district's most recent fiscal year, no public assistance shall be recov-
     9  erable  under  this  section  for the most recent two fiscal years where
    10  public assistance remains recoverable.
    11    [6. (a) (1)] (d) (1) A. Until  such  property  or  mortgage  is  sold,
    12  assigned  or foreclosed pursuant to law by the social services official,
    13  the person [giving] who gave such deed or mortgage, or his or her estate
    14  or those entitled thereto, may redeem the same by  the  payment  of  all
    15  expenses  incurred  for  the  support of the person, and for repairs and
    16  taxes paid on such property, provided, however, that a  social  services
    17  official  may  enter into a contract for such redemption, subject to the
    18  provisions of this [paragraph] subparagraph, and containing  such  terms
    19  and  conditions,  including  provisions  for  periodic payments, without
    20  interest, for an amount less than the full  expenses  incurred  for  the
    21  support  of  the  person and for repairs and taxes paid on such property
    22  (hereinafter called a "lesser sum"), which lesser sum shall in no  event
    23  be less than the difference between the appraised value of such property
    24  and the total of the then unpaid principal balance of any recorded mort-
    25  gages and the unpaid balance of sums secured by other liens against such
    26  property.
    27    [(2)]  B.  In  the  case  of a redemption for a lesser sum, the social
    28  services official shall obtain (i) an appraisal of  the  current  market
    29  value  of such property, by an appraiser acceptable to both parties, and
    30  (ii) a statement of the principal balance of any recorded  mortgages  or
    31  other  liens  against  such  property (excluding the debt secured by the
    32  deed, mortgage or lien of the social services  official).  Any  expenses
    33  incurred  pursuant to this [paragraph] subparagraph shall be audited and
    34  allowed in the same manner as other official expenses.
    35    [(3)] C. Every  redemption  contract  for  any  lesser  sum  shall  be
    36  approved  by  the  department upon an application by the social services
    37  official containing the appraisal and statement  required  by  [subpara-
    38  graph  two]  clause  B  of  this subparagraph, a statement by the social
    39  services official of his or her reasons for entering into  the  contract
    40  for such lesser sum and any other information required by regulations of
    41  the department.
    42    [(4)]  D. So long as the terms of the approved redemption contract are
    43  performed, no public sale of such property shall be held.
    44    [(5)] E. The redemption for a lesser sum shall reduce the claim of the
    45  social services official against the recipient on the  implied  contract
    46  under  section  one  hundred  four  of this [chapter] title or under any
    47  other law, to the extent of all sums paid in redemption.
    48    [(b)] (2) In order to allow  a  minimum  period  for  redemption,  the
    49  social  services  official shall not sell the property or mortgage until
    50  after the expiration of one year from the date he or  she  received  the
    51  deed or mortgage, but if unoccupied property has not been redeemed with-
    52  in  six  months  from the date of death of the person who conveyed it to
    53  him or her by deed the social  services  official  may  thereafter,  and
    54  before the expiration of such year, sell the property.
    55    [(c)] (3) Except as otherwise provided in this chapter, upon the death
    56  of  the  person or his or her receiving institutional care, if the mort-
        A. 2167                             4
     1  gage has not been redeemed, sold or assigned, the social services  offi-
     2  cial  may enforce collection of the mortgage debt in the manner provided
     3  for the foreclosure of mortgages by action.
     4    [(d)](4)  Provided  the  department  shall  have given its approval in
     5  writing, the social services official may, when in his or  her  judgment
     6  it  is advisable and in the public interest, release a part of the prop-
     7  erty from the lien of the mortgage to permit, and in  consideration  of,
     8  the  sale  of such part by the owner and the application of the proceeds
     9  to reduce said mortgage or to satisfy and discharge or reduce a prior or
    10  superior mortgage.
    11    [(e)](5) While real property covered by a deed or  mortgage  is  occu-
    12  pied,  in  whole  or  in  part, by an aged, blind or disabled person who
    13  executed such deed or mortgage to the social services official  for  old
    14  age  assistance,  assistance to the blind or aid to the disabled granted
    15  to such person before January first, nineteen hundred seventy-four,  the
    16  social  services  official  shall  not  sell  the  property or assign or
    17  enforce the mortgage unless it appears reasonably certain that the  sale
    18  or  other  disposition  of  the  property  will not materially adversely
    19  affect the welfare of such person. After the death  of  such  person  no
    20  claim  for  assistance  granted him or her shall be enforced against any
    21  real property while it is occupied by the surviving spouse.
    22    [(f)](6) Except as otherwise provided, upon the death of a person  who
    23  executed  a  lien  to the social services official in return for old age
    24  assistance, assistance to the blind or aid to the disabled granted prior
    25  to January first, nineteen hundred seventy-four, or before the death  of
    26  such  person  if  it  appears  reasonably certain that the sale or other
    27  disposition of the property will not  materially  adversely  affect  the
    28  welfare  of  such  person, the social services official may enforce such
    29  lien in the manner provided by article three of the lien law. After  the
    30  death  of such person the lien may not be enforced against real property
    31  while it is occupied by the surviving spouse.
    32    [7.](e) The sale of any parcel of real property or  mortgage  on  real
    33  property  by  the social services official, under the provisions of this
    34  section, shall be made at a public sale, held at least two  weeks  after
    35  notice thereof shall have been published in a newspaper having a general
    36  circulation  in that section of the county in which the real property is
    37  located. Such notice shall specify the time and  place  of  such  public
    38  sale  and  shall contain a brief description of the premises to be sold,
    39  or upon which the mortgage is a lien, as the case may be. Unless in  the
    40  judgment  of  the  social  services  official, it shall be in the public
    41  interest to reject all bids, such parcel or mortgage shall  be  sold  to
    42  the highest responsible bidder.
    43    [8.](f) It is permissible for social services officials to subordinate
    44  a  mortgage  taken on behalf of the social services district pursuant to
    45  this section. In the event that a social services official determines to
    46  subordinate a mortgage, or lien, he or she shall  do  so  within  thirty
    47  days  of  receipt  of written notice that the mortgagor is attempting to
    48  modify their mortgage that is held by a  mortgagee  with  superior  lien
    49  rights  and  subordination of the social services district's mortgage is
    50  required by such mortgagee in order for it to approve  or  complete  the
    51  modification.
    52    §  2.  Section 360 of the social services law, as added by chapter 722
    53  of the laws of 1951, subdivisions 1 and 3 as amended by  section  92  of
    54  part  B  of chapter 436 of the laws of 1997, subdivision 2 as amended by
    55  chapter 909 of the laws of 1974, and subdivision 4 as amended by chapter
    56  803 of the laws of 1959, is amended to read as follows:
        A. 2167                             5
     1    § 360.  Real property of legally  responsible  relatives[;  deeds  and
     2  mortgages  may be required].  [1.]  The ownership of real property by an
     3  applicant or applicants, recipient or recipients who is or  are  legally
     4  responsible  relatives  of  the  child or children for whose benefit the
     5  application  is  made  or  the aid is granted, whether such ownership be
     6  individual or joint as tenants in common, tenants  by  the  entirety  or
     7  joint  tenants,  shall not preclude the granting of family assistance or
     8  the continuance thereof if he or they are without the necessary funds to
     9  maintain himself, herself or themselves  and  such  child  or  children.
    10  [The  social  services official may, however, require, as a condition to
    11  the granting of aid or the continuance thereof, that he or she be  given
    12  a  deed  of  or  a  mortgage  on  such  property  in accordance with the
    13  provisions of section one hundred six.
    14    2.  However, while the property covered by the  deed  or  mortgage  is
    15  occupied, in whole or in part, by the responsible relative who gave such
    16  deed  or  mortgage  to  the  social services official or, by a child for
    17  whose benefit the aid was granted the social services official shall not
    18  sell the property or assign or enforce the mortgage without the  written
    19  consent  of  the  department; and, when the property is occupied by such
    20  child, such consent shall not be  given  unless  it  appears  reasonably
    21  certain  that  the  sale  or  other disposition of the property will not
    22  materially adversely affect the welfare of such child.
    23    3.  The net amount recovered by the social  services  department  from
    24  such  property, less any expenditures approved by the department for the
    25  burial of the relative or the child who dies while  in  receipt  of  aid
    26  under  this  title, shall be used to repay the social services district,
    27  the state and the federal government their proportionate  share  of  the
    28  cost of family assistance granted.  The state and federal share shall be
    29  paid  by  the  social  services district to the state and the manner and
    30  amount of such payment shall be determined in accordance with the  regu-
    31  lations of the department.
    32    4.  If any balance remains it shall belong to the estate of the legal-
    33  ly  responsible  relative  or  relatives and the public welfare district
    34  shall forthwith credit the same accordingly, and, provided they claim it
    35  within four years thereafter, pay it to the  persons  entitled  thereto.
    36  If not so claimed within four years it shall be deemed abandoned proper-
    37  ty  and  be  paid  to the state comptroller pursuant to section thirteen
    38  hundred five of the abandoned property law.
    39    5.  The proceeds or moneys due the United  States  shall  be  paid  or
    40  reported in such manner and at such times as the federal security agency
    41  or other authorized federal agency may direct.]
    42    §  3. This act shall take effect on the first of April next succeeding
    43  the date on which it shall have become a law.