Eliminates statutory authority of social services official to receive and dispose of a deed, mortgage, or lien.
TITLE OF BILL: An act to amend the social services law and the abandoned property law, in relation to powers of social services officials to receive and dispose of certain property and to repeal section 106 of the social services law, relating to powers of social services official to receive and dispose of a deed, mortgage, or lien
PURPOSE OR GENERAL IDEA OF BILL: The purpose of this bill is to remove the current provision that permits local social services districts to require public assistance recipients to execute a mortgage in favor of the county in the amount of public assistance received, as a condition for eligibility for public assistance.
SUMMARY OF SPECIFIC PROVISIONS: The bill would repeal section 106 the Social Services Law, eliminating the statutory authority of social services officials to receive and dispose of a deed, mortgage, or lien on behalf of the local social services district providing assistance and care to a public assistance recipient. Amends section 360 of the Social Services Law to eliminate the ability of the social services official to require that he be given the deed of a mortgage reference in section 106 of the law.
JUSTIFICATION: Although New York treats a home as an exempt resource 353.23(b) (2) when determining public assistance eligibility, the mortgage provision of the Social Services Law permits counties to: require public assistance recipients to execute a mortgage in favor of the county in the amount of public assistance received, as a condition of eligibility for public assistance.
In several ways, Section 106 of the Social Services Law is archaic and counterproductive to the current goals of making welfare recipients self-sufficient. New York recognizes that home ownership is an important step toward self-sufficiency. As a part of welfare reform, low-income individuals are encouraged to save for a home by depositing earnings in special savings accounts called Individual Development Accounts (IDAS), which can be matched with other funds and used for certain limited purposes, including purchasing a home. For welfare recipients, it is a cruel hoax for the state to encourage the use of these accounts, because the savings which are used to buy a home will be taken back by the local social services district in the form of a mortgage against the newly purchased home.
Additionally, a woman, who is abandoned by a spouse who is the family's primary wage earner, is often left with one asset - the house. Unfortunately, when a social services district takes a mortgage against that home, its value is gradually whittled away. Ironically, the home of the non-custodial spouse who is not on assistance but has children who are, is not subject to the imposition of a lien under section 106 of the Social Services Law.
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: Undetermined.
EFFECTIVE DATE: Immediately.
STATE OF NEW YORK ________________________________________________________________________ 3269 2013-2014 Regular Sessions IN SENATE January 31, 2013 ___________Introduced by Sen. KRUEGER -- read twice and ordered printed, and when printed to be committed to the Committee on Children and Families AN ACT to amend the social services law and the abandoned property law, in relation to powers of social services officials to receive and dispose of certain property and to repeal section 106 of the social services law, relating to powers of 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 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 chap- ter 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 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 notS 2. Section 1305 of the abandoned property law, as amended by section 31 of part A of chapter 61 of the laws of 2011, is amended to read as follows: S 1305. Unclaimed surplus moneys after recovery of cost of public assistance and care. Any amount comprising a balance credited to an estate or person pursuant toEXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD01844-01-3 S. 3269 2
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.]
[sections]SECTION one hundred fifty-two-b [or three hundred sixty]of the social services law which, on June thir- tieth in any year, has for four years from the date of such credit remained unclaimed by the estate or person entitled thereto shall be deemed abandoned property. On or before the tenth day of September in each year every public welfare official shall pay such abandoned property to the state comp- troller. Such payment shall be accompanied by a written report, affirmed as true and accurate under penalty of perjury, in such form as the state comptroller may prescribe. S 3. Section 106 of the social services law is REPEALED. S 4. This act shall take effect immediately.