Bill Text: NY S05731 | 2019-2020 | General Assembly | Introduced

---

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 1-0)

Status: (Introduced - Dead) 2020-01-08 - REFERRED TO SOCIAL SERVICES [S05731 Detail]

Download: New_York-2019-S05731-Introduced.html

---

                STATE OF NEW YORK
        ________________________________________________________________________

                                          5731

                               2019-2020 Regular Sessions

                    IN SENATE

                                      May 13, 2019
                                       ___________

        Introduced  by  Sen. KRUEGER -- 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:

     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:
    22    (1) payments made as part of Supplemental Nutrition Assistance Program
    23  (SNAP), child care services, Emergency Assistance to Adults or the  Home
    24  Energy Assistance Program (HEAP)[.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00036-01-9
        S. 5731                             2

     1    3.  A  social  services  official  may  not assert any claim under any
     2  provision of this section to recover];
     3    (2)  payments of public assistance if such payments were reimbursed by
     4  child support collections[.
     5    4. A social services official may  not  assert  any  claim  under  any
     6  provision of this section to recover];
     7    (3)  payments  of public assistance unless, before [it has accepted] a
     8  deed or mortgage was accepted from an applicant or recipient,  [it  has]
     9  the  official  first received a signed acknowledgment from the applicant
    10  or recipient acknowledging that:
    11    [(a)] A. benefits provided as part of Supplemental  Nutrition  Assist-
    12  ance Program (SNAP), child care services, Emergency Assistance to Adults
    13  or the Home Energy Assistance Program (HEAP) may not be included as part
    14  of the recovery to be made under the mortgage or lien; and
    15    [(b)] B. if the applicant or recipient declines to provide the lien or
    16  mortgage  the children in the household shall remain eligible for public
    17  assistance.
    18    [5. (a)] (b) Such property shall not be considered public property and
    19  shall remain on the tax rolls and such deed or mortgage shall be subject
    20  to redemption as provided in subparagraph one of paragraph (d)  of  this
    21  subdivision.
    22    (c)  (1) Until a deed, mortgage, or lien, accepted prior to [or after]
    23  the effective date of this [act,]  section  is  satisfied  or  otherwise
    24  disposed  of,  the  social services district shall issue and mail to the
    25  last known address of the person [giving] who gave such  deed  or  mort-
    26  gage,  or  his  or  her  estate  or  those  entitled thereto, a biennial
    27  accounting of the public assistance incurred and repairs and taxes  paid
    28  on  property. The social services district shall provide such accounting
    29  no later than February first, two thousand sixteen and biennially there-
    30  after.
    31    [(b)] (2) Such accounting shall include information regarding the debt
    32  owed as of the end of the district's most recent fiscal year  including,
    33  but not limited to:
    34    [(1)]  A.  an  enumeration  of  all  public assistance incurred by the
    35  person [giving] who gave such deed or mortgage or his or  her  household
    36  to date;
    37    [(2)] B. the current amount of recoverable public assistance under the
    38  deed or mortgage;
    39    [(3)] C. the amount of any credits against public assistance including
    40  but not limited to:
    41    [A.]  (i)  the  amount  of child support collected and retained by the
    42  social services district as reimbursement for public assistance;
    43    [B.] (ii) recoveries made under  section  one  hundred  four  of  this
    44  title;
    45    [C.]  (iii)  recoveries made under section one hundred thirty-one-r of
    46  this chapter.
    47    [(4)] D. Said accounting shall also provide information regarding  the
    48  manner  in which payments may be made to the social services district to
    49  reduce the amount of the mortgage or lien.
    50    [(c)] (3) In the event that a biennial accounting is  not  issued  and
    51  mailed  to  the  last known address of the person [giving] who gave such
    52  deed or mortgage or his or her estate or those entitled thereto,  within
    53  the time period required in [paragraph (a) of this subdivision] subpara-
    54  graph  one  of this paragraph, no public assistance shall be recoverable
    55  under this section for the previous two fiscal years. In the event  that
    56  a biennial accounting is not issued and mailed to the last known address
        S. 5731                             3

     1  of  the  person  [giving]  who  gave such deed or mortgage or his or her
     2  estate or those entitled thereto, within the  time  period  required  in
     3  [paragraph  (a) of this subdivision] subparagraph one of this paragraph,
     4  and  such  person  has  received no recoverable public assistance in the
     5  district's most recent fiscal year, no public assistance shall be recov-
     6  erable under this section for the most recent  two  fiscal  years  where
     7  public assistance remains recoverable.
     8    [6.  (a)  (1)]  (d)  (1)  A.  Until such property or mortgage is sold,
     9  assigned or foreclosed pursuant to law by the social services  official,
    10  the person [giving] who gave such deed or mortgage, or his or her estate
    11  or  those  entitled  thereto,  may redeem the same by the payment of all
    12  expenses incurred for the support of the person,  and  for  repairs  and
    13  taxes  paid  on such property, provided, however, that a social services
    14  official may enter into a contract for such redemption, subject  to  the
    15  provisions  of  this [paragraph] subparagraph, and containing such terms
    16  and conditions, including  provisions  for  periodic  payments,  without
    17  interest,  for  an  amount  less than the full expenses incurred for the
    18  support of the person and for repairs and taxes paid  on  such  property
    19  (hereinafter  called a "lesser sum"), which lesser sum shall in no event
    20  be less than the difference between the appraised value of such property
    21  and the total of the then unpaid principal balance of any recorded mort-
    22  gages and the unpaid balance of sums secured by other liens against such
    23  property.
    24    [(2)] B. In the case of a redemption for  a  lesser  sum,  the  social
    25  services  official  shall  obtain (i) an appraisal of the current market
    26  value of such property, by an appraiser acceptable to both parties,  and
    27  (ii)  a  statement of the principal balance of any recorded mortgages or
    28  other liens against such property (excluding the  debt  secured  by  the
    29  deed,  mortgage  or  lien of the social services official). Any expenses
    30  incurred pursuant to this [paragraph] subparagraph shall be audited  and
    31  allowed in the same manner as other official expenses.
    32    [(3)]  C.  Every  redemption  contract  for  any  lesser  sum shall be
    33  approved by the department upon an application by  the  social  services
    34  official  containing  the  appraisal and statement required by [subpara-
    35  graph two] clause B of this subparagraph,  a  statement  by  the  social
    36  services  official  of his or her reasons for entering into the contract
    37  for such lesser sum and any other information required by regulations of
    38  the department.
    39    [(4)] D. So long as the terms of the approved redemption contract  are
    40  performed, no public sale of such property shall be held.
    41    [(5)] E. The redemption for a lesser sum shall reduce the claim of the
    42  social  services  official against the recipient on the implied contract
    43  under section one hundred four of this  [chapter]  title  or  under  any
    44  other law, to the extent of all sums paid in redemption.
    45    [(b)]  (2)  In  order  to  allow  a minimum period for redemption, the
    46  social services official shall not sell the property or  mortgage  until
    47  after  the  expiration  of one year from the date he or she received the
    48  deed or mortgage, but if unoccupied property has not been redeemed with-
    49  in six months from the date of death of the person who  conveyed  it  to
    50  him  or  her  by  deed  the social services official may thereafter, and
    51  before the expiration of such year, sell the property.
    52    [(c)] (3) Except as otherwise provided in this chapter, upon the death
    53  of the person or his or her receiving institutional care, if  the  mort-
    54  gage  has not been redeemed, sold or assigned, the social services offi-
    55  cial may enforce collection of the mortgage debt in the manner  provided
    56  for the foreclosure of mortgages by action.
        S. 5731                             4

     1    [(d)](4)  Provided  the  department  shall  have given its approval in
     2  writing, the social services official may, when in his or  her  judgment
     3  it  is advisable and in the public interest, release a part of the prop-
     4  erty from the lien of the mortgage to permit, and in  consideration  of,
     5  the  sale  of such part by the owner and the application of the proceeds
     6  to reduce said mortgage or to satisfy and discharge or reduce a prior or
     7  superior mortgage.
     8    [(e)](5) While real property covered by a deed or  mortgage  is  occu-
     9  pied,  in  whole  or  in  part, by an aged, blind or disabled person who
    10  executed such deed or mortgage to the social services official  for  old
    11  age  assistance,  assistance to the blind or aid to the disabled granted
    12  to such person before January first, nineteen hundred seventy-four,  the
    13  social  services  official  shall  not  sell  the  property or assign or
    14  enforce the mortgage unless it appears reasonably certain that the  sale
    15  or  other  disposition  of  the  property  will not materially adversely
    16  affect the welfare of such person. After the death  of  such  person  no
    17  claim  for  assistance  granted him or her shall be enforced against any
    18  real property while it is occupied by the surviving spouse.
    19    [(f)](6) Except as otherwise provided, upon the death of a person  who
    20  executed  a  lien  to the social services official in return for old age
    21  assistance, assistance to the blind or aid to the disabled granted prior
    22  to January first, nineteen hundred seventy-four, or before the death  of
    23  such  person  if  it  appears  reasonably certain that the sale or other
    24  disposition of the property will not  materially  adversely  affect  the
    25  welfare  of  such  person, the social services official may enforce such
    26  lien in the manner provided by article three of the lien law. After  the
    27  death  of such person the lien may not be enforced against real property
    28  while it is occupied by the surviving spouse.
    29    [7.](e) The sale of any parcel of real property or  mortgage  on  real
    30  property  by  the social services official, under the provisions of this
    31  section, shall be made at a public sale, held at least two  weeks  after
    32  notice thereof shall have been published in a newspaper having a general
    33  circulation  in that section of the county in which the real property is
    34  located. Such notice shall specify the time and  place  of  such  public
    35  sale  and  shall contain a brief description of the premises to be sold,
    36  or upon which the mortgage is a lien, as the case may be. Unless in  the
    37  judgment  of  the  social  services  official, it shall be in the public
    38  interest to reject all bids, such parcel or mortgage shall  be  sold  to
    39  the highest responsible bidder.
    40    [8.](f) It is permissible for social services officials to subordinate
    41  a  mortgage  taken on behalf of the social services district pursuant to
    42  this section. In the event that a social services official determines to
    43  subordinate a mortgage, or lien, he or she shall  do  so  within  thirty
    44  days  of  receipt  of written notice that the mortgagor is attempting to
    45  modify their mortgage that is held by a  mortgagee  with  superior  lien
    46  rights  and  subordination of the social services district's mortgage is
    47  required by such mortgagee in order for it to approve  or  complete  the
    48  modification.
    49    §  2.  Section 360 of the social services law, as added by chapter 722
    50  of the laws of 1951, subdivisions 1 and 3 as amended by  section  92  of
    51  part  B  of chapter 436 of the laws of 1997, subdivision 2 as amended by
    52  chapter 909 of the laws of 1974, and subdivision 4 as amended by chapter
    53  803 of the laws of 1959, is amended to read as follows:
    54    § 360.  Real property of legally  responsible  relatives[;  deeds  and
    55  mortgages  may be required].  [1.]  The ownership of real property by an
    56  applicant or applicants, recipient or recipients who is or  are  legally
        S. 5731                             5

     1  responsible  relatives  of  the  child or children for whose benefit the
     2  application is made or the aid is granted,  whether  such  ownership  be
     3  individual  or  joint  as  tenants in common, tenants by the entirety or
     4  joint  tenants,  shall not preclude the granting of family assistance or
     5  the continuance thereof if he or they are without the necessary funds to
     6  maintain himself, herself or themselves  and  such  child  or  children.
     7  [The  social  services official may, however, require, as a condition to
     8  the granting of aid or the continuance thereof, that he or she be  given
     9  a  deed  of  or  a  mortgage  on  such  property  in accordance with the
    10  provisions of section one hundred six.
    11    2.  However, while the property covered by the  deed  or  mortgage  is
    12  occupied, in whole or in part, by the responsible relative who gave such
    13  deed  or  mortgage  to  the  social services official or, by a child for
    14  whose benefit the aid was granted the social services official shall not
    15  sell the property or assign or enforce the mortgage without the  written
    16  consent  of  the  department; and, when the property is occupied by such
    17  child, such consent shall not be  given  unless  it  appears  reasonably
    18  certain  that  the  sale  or  other disposition of the property will not
    19  materially adversely affect the welfare of such child.
    20    3.  The net amount recovered by the social  services  department  from
    21  such  property, less any expenditures approved by the department for the
    22  burial of the relative or the child who dies while  in  receipt  of  aid
    23  under  this  title, shall be used to repay the social services district,
    24  the state and the federal government their proportionate  share  of  the
    25  cost of family assistance granted.  The state and federal share shall be
    26  paid  by  the  social  services district to the state and the manner and
    27  amount of such payment shall be determined in accordance with the  regu-
    28  lations of the department.
    29    4.  If any balance remains it shall belong to the estate of the legal-
    30  ly  responsible  relative  or  relatives and the public welfare district
    31  shall forthwith credit the same accordingly, and, provided they claim it
    32  within four years thereafter, pay it to the  persons  entitled  thereto.
    33  If not so claimed within four years it shall be deemed abandoned proper-
    34  ty  and  be  paid  to the state comptroller pursuant to section thirteen
    35  hundred five of the abandoned property law.
    36    5.  The proceeds or moneys due the United  States  shall  be  paid  or
    37  reported in such manner and at such times as the federal security agency
    38  or other authorized federal agency may direct.]
    39    §  3. This act shall take effect on the first of April next succeeding
    40  the date on which it shall have become a law.