Relates to the powers of a social services official to receive and dispose of a deed, mortgage or lien

Sections 2 and 3 provide that a social services official may not assert any claim to recover payments made or the cost of benefits provided to a recipient or the members of his or her household under food stamps, child care or the home energy assistance program (HEAP).

Section 4 provides that in cases where a custodial parent declines to provide the lien or mortgage on their home in exchange for public assistance to the entire family, that the children in the home remain eligible.

Section 5 provides that until any mortgage taken against the property of the public assistance recipient is paid off, that recipient shall receive an annual accounting of the public assistance incurred no later than four months after the end of the county's fiscal year. Such accounting shall delineate all assistance incurred, the current amount of recoverable assistance, the amount of child support collected. Further, in the event that no accounting is produced for the recipient, no recoupment can be made for that fiscal year.

Justification

Currently, the eligibility and receipt of public assistance for people who own homes is treated much differently than for people who rent. Public assistance is issued as a grant to individuals who do not own a home, but is issued as a loan to individuals for families who own a home or have resources exceeding the eligibility threshold. In cases where a divorce, death or other unfortunate circumstance results in the custodial parent retaining ownership of the home, often their only asset, local social services districts can take a lien against the home in exchange for benefits. While any applicant is required to provide all financial information, including assets toward which the local district may be entitled to a lien - the district is not required to provide any clear accounting after the issue of any benefits. This lack of accountability on part of the local district has left many in prolonged repayment plans, often repaying significantly more than they were "loaned."

Additionally, local districts are currently able to take liens against a recipient's home in exchange for food stamp benefits, child care and home energy assistance - all funds that originate largely at the Federal level. Food stamps in particular come with no cost to a county or local district, they actually bring more money to these counties. In a situation where one must decide between their home and providing food for their family, taking a lien against ones home is hardly just. Home Energy Assistance Program and child care subsidies also originate at the federal level with no significant cost to the county aside from those associated with administration. These federally funded programs were enacted to keep individuals, children and families nourished, safe and in good health.

In one particular circumstance a woman applied for benefits so that she and her children could survive after a series of unfortunate circumstances, during which she was able to retain ownership of her home. During the application process she signed over a lien on her home. Following three years of receiving public assistance, she was able to thrive without benefits only to discover that the local social services district claimed that she owed $50 thousand, and would not remove the lien until that amount was paid. Uncommonly, she retained all of the records of what assistance she received and confirmed that she only received $20 thousand in benefits, of which a large portion originated at the Federal level. In situations like this, where there is an undue burden of proof on a public assistance recipient it is necessary that they are provided with all records justifying the debts assessed by local social services districts - especially when these debts are incurred against the value of the home, often the sole family asset.

This bill also provides that an applicant can decline the granting of a lien against their home. In cases where a custodial parent willingly declines the lien, they are willingly declining benefits paid to them, but are still able to receive support for any children or dependents without potentially sacrificing the ownership of their home.

Prior legislative history

None.

Fiscal implications

To be determined.

Local fiscal implications

To be determined.

Effective date

This act shall take effect on the sixtieth day after it shall have become law.