S T A T E   O F   N E W   Y O R K
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                                  10166

                          I N  A S S E M B L Y

                              May 13, 2016
                               ___________

Introduced by M. of A. BARRON -- 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:

  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:
  S  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 SIXTEEN 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:
  (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[.];

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
              

                                                           LBD13675-02-6

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  [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-
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-

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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-
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

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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.
  S 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  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

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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.]
  S  3. This act shall take effect on the first of April next succeeding
the date on which it shall have become a law.