NY Soc Serv L § 106 (2021)
2021 New York Laws SOS - Social Services Article 3 - Local Public Welfare Organization; Powers and Duties Title 6 - Powers to Enforce Support 106 - Powers of Social Services Official to Receive and Dispose of a Deed, Mortgage, or Lien.

* §  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 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  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 payments of public assistance if such payments were reimbursed by child support collections.   4. A social services official may  not  assert  any  claim  under  any provision  of  this  section  to  recover  payments of public assistance unless, before it has accepted a deed or mortgage from an  applicant  or recipient,  it  has  first  received  a  signed  acknowledgment from the applicant or recipient acknowledging that:  (a) benefits provided as part  of  Supplemental  Nutrition  Assistance 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) if the applicant or recipient declines  to  provide  the  lien  or mortgage  the  children  in  the  household  remain  eligible for public assistance.   5. (a) Until a deed, mortgage, or lien, accepted prior to or after the effective date of this act, is satisfied or otherwise disposed  of,  the social  services district shall issue and mail to the last known address of the person giving such deed or mortgage, 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 thereafter.  (b)  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)  an  enumeration  of  all public assistance incurred by the person giving such deed or mortgage or his or her household to date;  (2) the current amount of recoverable public assistance under the deed or mortgage;  (3) the amount of any credits against public assistance including  but not limited to:   A.  the  amount  of child support collected and retained by the social services district as reimbursement for public assistance;   B. recoveries made under section one hundred four of this title;   C. recoveries made under section  one  hundred  thirty-one-r  of  this chapter.  (4)  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)  In  the event that a biennial accounting is not issued and mailed to the last known address of the person giving such deed or mortgage  or his  or  her  estate  or  those entitled thereto, within the time period required in paragraph (a) of  this  subdivision,  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 such deed or mortgage or his  or  her  estate  or  those entitled thereto, within the time period required in paragraph (a) of  this  subdivision,  and  such  person  has received  no recoverable public assistance in the district's most recent fiscal year, no  public  assistance  shall  be  recoverable  under  this section  for  the  most  recent two fiscal years where public assistance remains recoverable.   6. (a) (1) Until such  property  or  mortgage  is  sold,  assigned  or foreclosed  pursuant  to law by the social services official, the person giving such deed or mortgage, or his 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,   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  mortgages  and the unpaid balance of sums secured by other liens against such property.  (2) 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  shall  be audited and allowed in the same manner as other official expenses.  (3) 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 subparagraph  two,  a statement  by  the  social services official of his reasons for entering into the contract for such lesser sum and any other information required by regulations of the department.  (4) So long as the terms  of  the  approved  redemption  contract  are performed, no public sale of such property shall be held.  (5)  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 or under any other law, to the extent of all sums paid in redemption.  (b) 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  received  the  deed  or mortgage,  but  if  unoccupied property has not been redeemed within six months from the date of death of the person who conveyed it  to  him  by deed  the  social  services  official  may  thereafter,  and  before the expiration of such year, sell the property.  (c) Except as otherwise provided in this chapter, upon  the  death  of the  person or his receiving institutional care, if the mortgage has not been redeemed, sold  or  assigned,  the  social  services  official  may enforce  collection  of the mortgage debt in the manner provided for the foreclosure of mortgages by action.  (d) Provided the department shall have given its approval in  writing, the  social  services official may, when in his judgment it is advisable  and in the public interest, release a part of the property 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 to reduce said mortgage  or  to  satisfy  and  discharge  or reduce a prior or superior mortgage.  (e) While real property covered by a deed or mortgage is occupied,  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  shall be enforced against any real property while it is occupied by the surviving spouse.  (f) 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. 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.  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.   * NB Effective until April 1, 2022   * § 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 granted or applied for  shall  not  accept  a  deed  of  real property  and/or  a  mortgage  thereon  on behalf of the social services district for the assistance of a person at public expense.   2. (a) Notwithstanding subdivision one of this section, if,  prior  to the effective date of the chapter of the laws of two thousand twenty-one 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);  (2) payments of public assistance if such payments were reimbursed  by child support collections;  (3)  payments  of  public assistance unless, before a deed or mortgage was accepted from an applicant or recipient, the official first received a signed acknowledgment from the applicant  or  recipient  acknowledging that:   A.  benefits  provided  as  part  of Supplemental Nutrition Assistance 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.  if  the  applicant  or  recipient  declines to provide the lien or mortgage the children in the household shall remain eligible for  public assistance.  (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  the effective  date  of  this section is satisfied or otherwise disposed of, the social services district shall issue and  mail  to  the  last  known address  of  the  person  who  gave such deed or mortgage, 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 thereafter.  (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:   A.  an enumeration of all public assistance incurred by the person who gave such deed or mortgage or his or her household to date;   B. the current amount of recoverable public assistance under the  deed or mortgage;   C.  the  amount of any credits against public assistance including but not limited to:  (i) the amount of child support collected and retained by  the  social services district as reimbursement for public assistance;  (ii) recoveries made under section one hundred four of this title;  (iii)  recoveries  made under section one hundred thirty-one-r of this chapter.   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.  (3)  In  the event that a biennial accounting is not issued and mailed to the last known address of the person who gave such deed  or  mortgage or  his  or her estate or those entitled thereto, within the time period required in subparagraph 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 who gave such deed or mortgage or his or her estate or those entitled thereto, within the  time  period required  in  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  recoverable under this  section for the most recent two fiscal  years  where  public  assistance remains recoverable.  (d)  (1)  A.  Until  such  property  or  mortgage is sold, assigned or foreclosed pursuant to law by the social services official,  the  person 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 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  mortgages  and the unpaid balance of sums secured by other liens against such property.   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 subparagraph shall be audited and allowed in the same manner as other official expenses.   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  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.   D. So long as the  terms  of  the  approved  redemption  contract  are performed, no public sale of such property shall be held.   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 title or under any other law, to the extent of all sums paid in redemption.  (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 within 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.  (3) Except as otherwise provided in this chapter, upon  the  death  of the  person  or his or her receiving institutional care, if the mortgage has not been redeemed, sold or assigned, the  social  services  official may  enforce  collection of the mortgage debt in the manner provided for the foreclosure of mortgages by action.  (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  property 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  to reduce  said  mortgage  or to satisfy and discharge or reduce a prior or superior mortgage.  (5) While real property covered by a deed or mortgage is occupied,  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.  (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.  (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.  (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.   * NB Effective April 1, 2022