Bill Text: NY S05498 | 2013-2014 | General Assembly | Introduced
Bill Title: Relates to the powers of social services officials to receive and dispose of a deed, mortgage, or lien; restricts circumstances where an action may be made.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2014-04-28 - RECOMMIT, ENACTING CLAUSE STRICKEN [S05498 Detail]
Download: New_York-2013-S05498-Introduced.html
S T A T E O F N E W Y O R K
________________________________________________________________________
5498
2013-2014 Regular Sessions
I N S E N A T E
May 16, 2013
___________
Introduced by Sen. SAVINO -- 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
social services officials 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 chap-
2 ter 200 of the laws of 1946, the section heading as amended, subpara-
3 graph 5 of paragraph (a) of subdivision 2 as renumbered and paragraphs
4 (e) and (f) of subdivision 2 as added by chapter 1080 of the laws of
5 1974, subdivision 1 and paragraph (a) of subdivision 2 as amended by
6 chapter 764 of the laws of 1972, paragraph (b) of subdivision 2 as
7 amended by chapter 150 of the laws of 1955, paragraph (c) of subdivision
8 2 as amended by chapter 310 of the laws of 1962, paragraph (d) of subdi-
9 vision 2 as added by chapter 43 of the laws of 1952, subdivision 3 as
10 amended by chapter 271 of the laws of 1948 and subdivision 4 as added by
11 chapter 340 of the laws of 2003, is amended to read as follows:
12 S 106. Powers of social services official to receive and dispose of a
13 deed, mortgage, or lien. 1. A social services official responsible, by
14 or pursuant to any provision of this chapter, for the administration of
15 assistance or care granted or applied for may accept a deed of real
16 property and/or a mortgage thereon on behalf of the public welfare
17 district for the assistance and care of a person at public expense but
18 such property shall not be considered as public property and shall
19 remain on the tax rolls and such deed or mortgage shall be subject to
20 redemption as provided in paragraph (a) of subdivision [two] SIX hereof.
21 2. ANY INCONSISTENT PROVISION OF THIS CHAPTER OR ANY OTHER LAW
22 NOTWITHSTANDING, A SOCIAL SERVICES OFFICIAL MAY NOT ASSERT ANY CLAIM
23 UNDER ANY PROVISION OF THIS CHAPTER TO RECOVER PAYMENTS MADE AS PART OF
24 SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM (SNAP), CHILD CARE SERVICES,
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11116-01-3
S. 5498 2
1 EMERGENCY ASSISTANCE TO ADULTS OR THE HOME ENERGY ASSISTANCE PROGRAM
2 (HEAP).
3 3. ANY INCONSISTENT PROVISION OF THIS CHAPTER OR OF ANY OTHER LAW
4 NOTWITHSTANDING, A SOCIAL SERVICES OFFICIAL MAY NOT ASSERT ANY CLAIM
5 UNDER ANY PROVISION OF THIS CHAPTER TO RECOVER PAYMENTS OF PUBLIC
6 ASSISTANCE IF SUCH PAYMENTS WERE REIMBURSED BY CHILD SUPPORT
7 COLLECTIONS.
8 4. ANY INCONSISTENT PROVISION OF THIS CHAPTER OR OF ANY OTHER LAW
9 NOTWITHSTANDING, A SOCIAL SERVICES OFFICIAL MAY NOT ASSERT ANY CLAIM
10 UNDER ANY PROVISION OF THIS CHAPTER TO RECOVER PAYMENTS OF PUBLIC
11 ASSISTANCE UNLESS, BEFORE IT HAS ACCEPTED A DEED OR MORTGAGE FROM AN
12 APPLICANT OR RECIPIENT, IT HAS FIRST RECEIVED A SIGNED ACKNOWLEDGMENT
13 FROM THE APPLICANT OR RECIPIENT ACKNOWLEDGING THAT:
14 (A) THE APPLICANT OR RECIPIENT UNDERSTANDS THAT BENEFITS PROVIDED AS
15 PART OF SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM (SNAP), CHILD CARE
16 SERVICES, EMERGENCY ASSISTANCE TO ADULTS OR THE HOME ENERGY ASSISTANCE
17 PROGRAM (HEAP) MAY NOT BE INCLUDED AS PART OF THE RECOVERY TO BE MADE
18 UNDER THE MORTGAGE;
19 (B) IF THE APPLICANT OR RECIPIENT DECLINES TO PROVIDE THE LIEN OR
20 MORTGAGE THE CHILDREN IN THE HOUSEHOLD REMAIN ELIGIBLE FOR PUBLIC
21 ASSISTANCE.
22 5. (A) UNTIL SUCH PROPERTY OR MORTGAGE IS SOLD, ASSIGNED OR FORECLOSED
23 PURSUANT TO LAW BY THE SOCIAL SERVICES OFFICIAL, OR UNTIL SUCH MORTGAGE
24 HAS BEEN PAID OFF, THE PERSON GIVING SUCH DEED OR MORTGAGE, OR HIS OR
25 HER ESTATE OR THOSE ENTITLED THERETO, SHALL RECEIVE AN ANNUAL ACCOUNTING
26 OF THE PUBLIC ASSISTANCE INCURRED AND REPAIRS AND TAXES PAID ON PROPER-
27 TY. THE DISTRICT SHALL PROVIDE SUCH ACCOUNTING NO LATER THAN FOUR MONTHS
28 AFTER THE END OF THE COUNTY'S FISCAL YEAR.
29 (B) SUCH ACCOUNTING SHALL INCLUDE INFORMATION REGARDING THE DEBT OWED,
30 INCLUDING, BUT NOT LIMITED TO:
31 (1) AN ENUMERATION OF ALL ASSISTANCE INCURRED BY THE PERSON GIVING
32 SUCH DEED OR MORTGAGE OR HIS OR HER HOUSEHOLD TO DATE;
33 (2) THE CURRENT AMOUNT OF RECOVERABLE ASSISTANCE UNDER THE DEED OR
34 MORTGAGE;
35 (3) THE AMOUNT OF ANY CREDITS AGAINST ASSISTANCE INCLUDING BUT NOT
36 LIMITED TO:
37 A. THE AMOUNT OF CHILD SUPPORT COLLECTED AND RETAINED BY THE DISTRICT
38 AS REIMBURSEMENT FOR ASSISTANCE;
39 B. RECOVERIES UNDER SECTION ONE HUNDRED FOUR OF THIS TITLE;
40 C. RECOVERIES UNDER SECTION ONE HUNDRED THIRTY-ONE-R OF THIS CHAPTER.
41 (4) SAID ACCOUNTING SHALL ALSO PROVIDE INFORMATION REGARDING THE
42 MANNER IN WHICH PAYMENTS MAY BE MADE TO THE SOCIAL SERVICES DISTRICT TO
43 REDUCE THE AMOUNT OF THE MORTGAGE.
44 (C) IN THE EVENT THAT AN ANNUAL ACCOUNTING IS NOT PROVIDED TO THE
45 PERSON GIVING SUCH DEED OR MORTGAGE OR HIS OR HER ESTATE OR THOSE ENTI-
46 TLED THERETO, WITHIN THE FOUR MONTH PERIOD REQUIRED IN PARAGRAPH (A) OF
47 THIS SUBDIVISION, NO ASSISTANCE SHALL BE RECOVERABLE FOR THAT FISCAL
48 YEAR. IN THE EVENT THAT THE PERSON GIVEN THE DEED OR MORTGAGE HAS
49 RECEIVED NO RECOVERABLE ASSISTANCE IN ANY YEAR, THE ANNUAL ACCOUNTING
50 MUST CONTINUE TO BE PROVIDED, REFLECTING ANY CREDITS THAT HAVE BEEN
51 APPLIED AGAINST THE ACCOUNT.
52 (D) NO DEED OR MORTGAGE TAKEN ON OR BEFORE JANUARY FIRST, TWO THOUSAND
53 FOURTEEN SHALL BE VALID UNLESS A SOCIAL SERVICES OFFICIAL PROVIDES AN
54 ACCOUNTING TO THE PERSON GIVING SUCH DEED OR MORTGAGE OR HIS OR HER
55 ESTATE OR THOSE ENTITLED THERETO, PURSUANT TO THIS SUBDIVISION, ON OR
56 BEFORE NOVEMBER FIRST, TWO THOUSAND FOURTEEN.
S. 5498 3
1 6. (a) (1) Until such property or mortgage is sold, assigned or fore-
2 closed pursuant to law by the social services official, the person
3 giving such deed or mortgage, or his estate or those entitled thereto,
4 may redeem the same by the payment of all expenses incurred for the
5 support of the person, and for repairs and taxes paid on such property,
6 provided, however, that a social services official may enter into a
7 contract for such redemption, subject to the provisions of this para-
8 graph, and containing such terms and conditions, including provisions
9 for periodic payments, [with or] without interest, [as the social
10 services official shall deem appropriate,] for an amount less than the
11 full expenses incurred for the support of the person and for repairs and
12 taxes paid on such property (hereinafter called a "lesser sum"), which
13 lesser sum shall in no event be less than the difference between the
14 appraised value of such property and the total of the then unpaid prin-
15 cipal balance of any recorded mortgages and the unpaid balance of sums
16 secured by other liens against such property.
17 (2) In the case of a redemption for a lesser sum, the social services
18 official shall obtain (i) an appraisal of the current market value of
19 such property, by an appraiser acceptable to both parties, and (ii) a
20 statement of the principal balance of any recorded mortgages or other
21 liens against such property (excluding the debt secured by the deed,
22 mortgage or lien of the social services official). Any expenses incurred
23 pursuant to this paragraph shall be audited and allowed in the same
24 manner as other official expenses.
25 (3) Every redemption contract for any lesser sum shall be approved by
26 the department upon an application by the social services official
27 containing the appraisal and statement required by subparagraph two, a
28 statement by the social services official of his reasons for entering
29 into the contract for such lesser sum and any other information required
30 by regulations of the department.
31 (4) So long as the terms of the approved redemption contract are
32 performed, no public sale of such property shall be held.
33 (5) The redemption for a lesser sum shall reduce the claim of the
34 social services official against the recipient on the implied contract
35 under section one hundred four of this chapter or under any other law,
36 to the extent of all sums paid in redemption.
37 (b) In order to allow a minimum period for redemption, the public
38 welfare official shall not sell the property or mortgage until after the
39 expiration of one year from the date he received the deed or mortgage,
40 but if unoccupied property has not been redeemed within six months from
41 the date of death of the person who conveyed it to him by deed the
42 public welfare official may thereafter, and before the expiration of
43 such year, sell the property.
44 (c) Except as otherwise provided in this chapter, upon the death of
45 the person or his receiving institutional care, if the mortgage has not
46 been redeemed, sold or assigned, the public welfare official may enforce
47 collection of the mortgage debt in the manner provided for the foreclo-
48 sure of mortgages by action.
49 (d) Provided the department shall have given its approval in writing,
50 the public welfare official may, when in his judgment it is advisable
51 and in the public interest, release a part of the property from the lien
52 of the mortgage to permit, and in consideration of, the sale of such
53 part by the owner and the application of the proceeds to reduce said
54 mortgage or to satisfy and discharge or reduce a prior or superior mort-
55 gage.
S. 5498 4
1 (e) While real property covered by a deed or mortgage is occupied, in
2 whole or in part, by an aged, blind or disabled person who executed such
3 deed or mortgage to the social services official for old age assistance,
4 assistance to the blind or aid to the disabled granted to such person
5 before January first, nineteen hundred seventy-four, the social services
6 official shall not sell the property or assign or enforce the mortgage
7 unless it appears reasonably certain that the sale or other disposition
8 of the property will not materially adversely affect the welfare of such
9 person. After the death of such person no claim for assistance granted
10 him shall be enforced against any real property while it is occupied by
11 the surviving spouse.
12 (f) Except as otherwise provided, upon the death of a person who
13 executed a lien to the social services official in return for old age
14 assistance, assistance to the blind or aid to the disabled granted prior
15 to January first, nineteen hundred seventy-four, or before the death of
16 such person if it appears reasonably certain that the sale or other
17 disposition of the property will not materially adversely affect the
18 welfare of such person, the social services official may enforce such
19 lien in the manner provided by article three of the lien law. After the
20 death of such person the lien may not be enforced against real property
21 while it is occupied by the surviving spouse.
22 [3.] 7. The sale of any parcel of real property or mortgage on real
23 property by the public welfare official, under the provisions of this
24 section, shall be made at a public sale, held at least two weeks after
25 notice thereof shall have been published in a newspaper having a general
26 circulation in that section of the county in which the real property is
27 located. Such notice shall specify the time and place of such public
28 sale and shall contain a brief description of the premises to be sold,
29 or upon which the mortgage is a lien, as the case may be. Unless in the
30 judgment of the public welfare official, it shall be in the public
31 interest to reject all bids, such parcel or mortgage shall be sold to
32 the highest responsible bidder.
33 [4. Any inconsistent provision of this chapter or of any other law
34 notwithstanding, a social services official may not assert any claim
35 under any provision of this chapter to recover payments of public
36 assistance if such payments were reimbursed by child support
37 collections.]
38 8. IT IS PERMISSIBLE FOR SOCIAL SERVICES OFFICIALS TO SUBORDINATE A
39 MORTGAGE TAKEN ON BEHALF OF THE PUBLIC WELFARE DISTRICT PURSUANT TO THIS
40 SECTION. THE SOCIAL SERVICES OFFICIAL SHALL SUBORDINATE A MORTGAGE WITH-
41 IN THIRTY DAYS OF RECEIPT OF WRITTEN NOTICE THAT THE HOMEOWNER IS
42 ATTEMPTING TO MODIFY A MORTGAGE HELD BY A MORTGAGEE WITH SUPERIOR LIEN
43 RIGHTS AND SUBORDINATION OF THE PUBLIC WELFARE DISTRICT'S MORTGAGE IS
44 REQUIRED BY THE SUPERIOR LIEN HOLDER IN ORDER FOR IT TO APPROVE OR
45 COMPLETE THE MODIFICATION.
46 S 2. This act shall take effect on the sixtieth day after it shall
47 have become a law.
