Bill Text: NY A01570 | 2017-2018 | General Assembly | Amended

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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 13-0)

Status: (Introduced - Dead) 2018-05-21 - print number 1570a [A01570 Detail]

Download: New_York-2017-A01570-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                         1570--A
                               2017-2018 Regular Sessions
                   IN ASSEMBLY
                                    January 12, 2017
                                       ___________
        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 -- reported and referred to the Committee on Ways  and
          Means  -- recommitted to the Committee on Ways and Means in accordance
          with Assembly Rule 3, sec. 2 -- committee  discharged,  bill  amended,
          ordered reprinted as amended and recommitted 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:
     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 eighteen 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
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00323-02-8
        A. 1570--A                          2
     1  public expense, such social services official shall not assert any claim
     2  under any provision of this section to recover:
     3    (1) payments made as part of Supplemental Nutrition Assistance Program
     4  (SNAP),  child care services, Emergency Assistance to Adults or the Home
     5  Energy Assistance Program (HEAP)[.
     6    3. A social services official may  not  assert  any  claim  under  any
     7  provision of this section to recover];
     8    (2)  payments of public assistance if such payments were reimbursed by
     9  child support collections[.
    10    4. A social services official may  not  assert  any  claim  under  any
    11  provision of this section to recover];
    12    (3)  payments  of public assistance unless, before [it has accepted] a
    13  deed or mortgage was accepted from an applicant or recipient,  [it  has]
    14  the  official  first received a signed acknowledgment from the applicant
    15  or recipient acknowledging that:
    16    [(a)] A. benefits provided as part of Supplemental  Nutrition  Assist-
    17  ance Program (SNAP), child care services, Emergency Assistance to Adults
    18  or the Home Energy Assistance Program (HEAP) may not be included as part
    19  of the recovery to be made under the mortgage or lien; and
    20    [(b)] B. if the applicant or recipient declines to provide the lien or
    21  mortgage  the children in the household shall remain eligible for public
    22  assistance.
    23    [5. (a)] (b) Such property shall not be considered public property and
    24  shall remain on the tax rolls and such deed or mortgage shall be subject
    25  to redemption as provided in subparagraph one of paragraph (d)  of  this
    26  subdivision.
    27    (c)  (1) Until a deed, mortgage, or lien, accepted prior to [or after]
    28  the effective date of this [act,]  section  is  satisfied  or  otherwise
    29  disposed  of,  the  social services district shall issue and mail to the
    30  last known address of the person [giving] who gave such  deed  or  mort-
    31  gage,  or  his  or  her  estate  or  those  entitled thereto, a biennial
    32  accounting of the public assistance incurred and repairs and taxes  paid
    33  on  property. The social services district shall provide such accounting
    34  no later than February first, two thousand sixteen and biennially there-
    35  after.
    36    [(b)] (2) Such accounting shall include information regarding the debt
    37  owed as of the end of the district's most recent fiscal year  including,
    38  but not limited to:
    39    [(1)]  A.  an  enumeration  of  all  public assistance incurred by the
    40  person [giving] who gave such deed or mortgage or his or  her  household
    41  to date;
    42    [(2)] B. the current amount of recoverable public assistance under the
    43  deed or mortgage;
    44    [(3)] C. the amount of any credits against public assistance including
    45  but not limited to:
    46    [A.]  (i)  the  amount  of child support collected and retained by the
    47  social services district as reimbursement for public assistance;
    48    [B.] (ii) recoveries made under  section  one  hundred  four  of  this
    49  title;
    50    [C.]  (iii)  recoveries made under section one hundred thirty-one-r of
    51  this chapter.
    52    [(4)] D. Said accounting shall also provide information regarding  the
    53  manner  in which payments may be made to the social services district to
    54  reduce the amount of the mortgage or lien.
    55    [(c)] (3) In the event that a biennial accounting is  not  issued  and
    56  mailed  to  the  last known address of the person [giving] who gave such
        A. 1570--A                          3
     1  deed or mortgage or his or her estate or those entitled thereto,  within
     2  the time period required in [paragraph (a) of this subdivision] subpara-
     3  graph  one  of this paragraph, no public assistance shall be recoverable
     4  under  this section for the previous two fiscal years. In the event that
     5  a biennial accounting is not issued and mailed to the last known address
     6  of the person [giving] who gave such deed or  mortgage  or  his  or  her
     7  estate  or  those  entitled  thereto, within the time period required in
     8  [paragraph (a) of this subdivision] subparagraph one of this  paragraph,
     9  and  such  person  has  received no recoverable public assistance in the
    10  district's most recent fiscal year, no public assistance shall be recov-
    11  erable under this section for the most recent  two  fiscal  years  where
    12  public assistance remains recoverable.
    13    [6.  (a)  (1)]  (d)  (1)  A.  Until such property or mortgage is sold,
    14  assigned or foreclosed pursuant to law by the social services  official,
    15  the person [giving] who gave such deed or mortgage, or his or her estate
    16  or  those  entitled  thereto,  may redeem the same by the payment of all
    17  expenses incurred for the support of the person,  and  for  repairs  and
    18  taxes  paid  on such property, provided, however, that a social services
    19  official may enter into a contract for such redemption, subject  to  the
    20  provisions  of  this [paragraph] subparagraph, and containing such terms
    21  and conditions, including  provisions  for  periodic  payments,  without
    22  interest,  for  an  amount  less than the full expenses incurred for the
    23  support of the person and for repairs and taxes paid  on  such  property
    24  (hereinafter  called a "lesser sum"), which lesser sum shall in no event
    25  be less than the difference between the appraised value of such property
    26  and the total of the then unpaid principal balance of any recorded mort-
    27  gages and the unpaid balance of sums secured by other liens against such
    28  property.
    29    [(2)] B. In the case of a redemption for  a  lesser  sum,  the  social
    30  services  official  shall  obtain (i) an appraisal of the current market
    31  value of such property, by an appraiser acceptable to both parties,  and
    32  (ii)  a  statement of the principal balance of any recorded mortgages or
    33  other liens against such property (excluding the  debt  secured  by  the
    34  deed,  mortgage  or  lien of the social services official). Any expenses
    35  incurred pursuant to this [paragraph] subparagraph shall be audited  and
    36  allowed in the same manner as other official expenses.
    37    [(3)]  C.  Every  redemption  contract  for  any  lesser  sum shall be
    38  approved by the department upon an application by  the  social  services
    39  official  containing  the  appraisal and statement required by [subpara-
    40  graph two] clause B of this subparagraph,  a  statement  by  the  social
    41  services  official  of his or her reasons for entering into the contract
    42  for such lesser sum and any other information required by regulations of
    43  the department.
    44    [(4)] D. So long as the terms of the approved redemption contract  are
    45  performed, no public sale of such property shall be held.
    46    [(5)] E. The redemption for a lesser sum shall reduce the claim of the
    47  social  services  official against the recipient on the implied contract
    48  under section one hundred four of this  [chapter]  title  or  under  any
    49  other law, to the extent of all sums paid in redemption.
    50    [(b)]  (2)  In  order  to  allow  a minimum period for redemption, the
    51  social services official shall not sell the property or  mortgage  until
    52  after  the  expiration  of one year from the date he or she received the
    53  deed or mortgage, but if unoccupied property has not been redeemed with-
    54  in six months from the date of death of the person who  conveyed  it  to
    55  him  or  her  by  deed  the social services official may thereafter, and
    56  before the expiration of such year, sell the property.
        A. 1570--A                          4
     1    [(c)] (3) Except as otherwise provided in this chapter, upon the death
     2  of the person or his or her receiving institutional care, if  the  mort-
     3  gage  has not been redeemed, sold or assigned, the social services offi-
     4  cial may enforce collection of the mortgage debt in the manner  provided
     5  for the foreclosure of mortgages by action.
     6    [(d)](4)  Provided  the  department  shall  have given its approval in
     7  writing, the social services official may, when in his or  her  judgment
     8  it  is advisable and in the public interest, release a part of the prop-
     9  erty from the lien of the mortgage to permit, and in  consideration  of,
    10  the  sale  of such part by the owner and the application of the proceeds
    11  to reduce said mortgage or to satisfy and discharge or reduce a prior or
    12  superior mortgage.
    13    [(e)](5) While real property covered by a deed or  mortgage  is  occu-
    14  pied,  in  whole  or  in  part, by an aged, blind or disabled person who
    15  executed such deed or mortgage to the social services official  for  old
    16  age  assistance,  assistance to the blind or aid to the disabled granted
    17  to such person before January first, nineteen hundred seventy-four,  the
    18  social  services  official  shall  not  sell  the  property or assign or
    19  enforce the mortgage unless it appears reasonably certain that the  sale
    20  or  other  disposition  of  the  property  will not materially adversely
    21  affect the welfare of such person. After the death  of  such  person  no
    22  claim  for  assistance  granted him or her shall be enforced against any
    23  real property while it is occupied by the surviving spouse.
    24    [(f)](6) Except as otherwise provided, upon the death of a person  who
    25  executed  a  lien  to the social services official in return for old age
    26  assistance, assistance to the blind or aid to the disabled granted prior
    27  to January first, nineteen hundred seventy-four, or before the death  of
    28  such  person  if  it  appears  reasonably certain that the sale or other
    29  disposition of the property will not  materially  adversely  affect  the
    30  welfare  of  such  person, the social services official may enforce such
    31  lien in the manner provided by article three of the lien law. After  the
    32  death  of such person the lien may not be enforced against real property
    33  while it is occupied by the surviving spouse.
    34    [7.](e) The sale of any parcel of real property or  mortgage  on  real
    35  property  by  the social services official, under the provisions of this
    36  section, shall be made at a public sale, held at least two  weeks  after
    37  notice thereof shall have been published in a newspaper having a general
    38  circulation  in that section of the county in which the real property is
    39  located. Such notice shall specify the time and  place  of  such  public
    40  sale  and  shall contain a brief description of the premises to be sold,
    41  or upon which the mortgage is a lien, as the case may be. Unless in  the
    42  judgment  of  the  social  services  official, it shall be in the public
    43  interest to reject all bids, such parcel or mortgage shall  be  sold  to
    44  the highest responsible bidder.
    45    [8.](f) It is permissible for social services officials to subordinate
    46  a  mortgage  taken on behalf of the social services district pursuant to
    47  this section. In the event that a social services official determines to
    48  subordinate a mortgage, or lien, he or she shall  do  so  within  thirty
    49  days  of  receipt  of written notice that the mortgagor is attempting to
    50  modify their mortgage that is held by a  mortgagee  with  superior  lien
    51  rights  and  subordination of the social services district's mortgage is
    52  required by such mortgagee in order for it to approve  or  complete  the
    53  modification.
    54    §  2.  Section 360 of the social services law, as added by chapter 722
    55  of the laws of 1951, subdivisions 1 and 3 as amended by  section  92  of
    56  part  B  of chapter 436 of the laws of 1997, subdivision 2 as amended by
        A. 1570--A                          5
     1  chapter 909 of the laws of 1974, and subdivision 4 as amended by chapter
     2  803 of the laws of 1959, is amended to read as follows:
     3    §  360.    Real  property of legally responsible relatives[; deeds and
     4  mortgages may be required].  [1.]  The ownership of real property by  an
     5  applicant  or  applicants, recipient or recipients who is or are legally
     6  responsible relatives of the child or children  for  whose  benefit  the
     7  application  is  made  or  the aid is granted, whether such ownership be
     8  individual or joint as tenants in common, tenants  by  the  entirety  or
     9  joint  tenants,  shall not preclude the granting of family assistance or
    10  the continuance thereof if he or they are without the necessary funds to
    11  maintain himself, herself or themselves  and  such  child  or  children.
    12  [The  social  services official may, however, require, as a condition to
    13  the granting of aid or the continuance thereof, that he or she be  given
    14  a  deed  of  or  a  mortgage  on  such  property  in accordance with the
    15  provisions of section one hundred six.
    16    2.  However, while the property covered by the  deed  or  mortgage  is
    17  occupied, in whole or in part, by the responsible relative who gave such
    18  deed  or  mortgage  to  the  social services official or, by a child for
    19  whose benefit the aid was granted the social services official shall not
    20  sell the property or assign or enforce the mortgage without the  written
    21  consent  of  the  department; and, when the property is occupied by such
    22  child, such consent shall not be  given  unless  it  appears  reasonably
    23  certain  that  the  sale  or  other disposition of the property will not
    24  materially adversely affect the welfare of such child.
    25    3.  The net amount recovered by the social  services  department  from
    26  such  property, less any expenditures approved by the department for the
    27  burial of the relative or the child who dies while  in  receipt  of  aid
    28  under  this  title, shall be used to repay the social services district,
    29  the state and the federal government their proportionate  share  of  the
    30  cost of family assistance granted.  The state and federal share shall be
    31  paid  by  the  social  services district to the state and the manner and
    32  amount of such payment shall be determined in accordance with the  regu-
    33  lations of the department.
    34    4.  If any balance remains it shall belong to the estate of the legal-
    35  ly  responsible  relative  or  relatives and the public welfare district
    36  shall forthwith credit the same accordingly, and, provided they claim it
    37  within four years thereafter, pay it to the  persons  entitled  thereto.
    38  If not so claimed within four years it shall be deemed abandoned proper-
    39  ty  and  be  paid  to the state comptroller pursuant to section thirteen
    40  hundred five of the abandoned property law.
    41    5.  The proceeds or moneys due the United  States  shall  be  paid  or
    42  reported in such manner and at such times as the federal security agency
    43  or other authorized federal agency may direct.]
    44    §  3. This act shall take effect on the first of April next succeeding
    45  the date on which it shall have become a law.