Proceeding pursuant to CPLR article 78 to review a determination of the respondent State commissioner, dated May 14, 1976 and made after a statutory fair hearing, which affirmed a determination of the respondent Commissioner of the Nassau County Department of Social Services terminating a grant of aid to dependent children to the petitioner and her children. Petition granted and determination annulled, on the law, without costs or disbursements, and the benefits in question are directed to be reinstated retroactive to the date of their discontinuance. The grant in question was terminated on the ground that the petitioner was the registered owner of a 1957 MG automobile and had declined to utilize its value toward the support of herself and her minor children. It appears, on this record, that the petitioner's automobile was essential to her health, living requirements or production of income (see Matter of Knowles v Lavine, 34 N.Y.2d 721, 722; Matter of Thornton v Lavine, 51 A.D.2d 640, 641). In any event, the petitioner's failure to comply with the demand of the local agency could not serve to deprive her children of the assistance which they were entitled to receive in the absence of any indication in the record of a present lack of need (see Matter of Ryan v New York State Dept. of Social Servs., 40 A.D.2d 867; Matter of Zabala v Lavine, 48 A.D.2d 880, 881). Rabin, Acting P.J., Shapiro, Titone and O'Connor, JJ., concur.