Eliminates statutory authority of social services official to receive and dispose of a deed, mortgage, or lien; repealer

1 Co-sponsor

• Bill Perkins

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 § 106 of 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.

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.