N.Y. Comp. Codes R. & Regs. tit. 18 § 352.27 : DEPARTMENT OF SOCIAL SERVICES — Regulations of the Department of Social Services — Public Assistance — Determination of Eligibility-General — Standards of Assistance — Real property

(a) Ownership of real property by the applicant or recipient, or by the parent of a dependent child in ADC, when such property is utilized as his or her home, does not in and of itself make an individual ineligible for public assistance. A commissioner of a social services district may, however, take a deed or mortgage on the property of a parent of a child receiving ADC, in accordance with sections 106 and 360 of the Social Services Law. An applicant or recipient who fails or refuses to execute such a deed or mortgage when required by a commissioner of a social services district, must be budgeted in accordance with section 352.30(d) of this Part.
(b) While real property covered by a deed or mortgage is occupied, in whole or in part, by a person who executed that deed or mortgage to the social services official for aid to the aged, blind or disabled, granted to that person before January 1, 1974, 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 that person's welfare. After the person's death, no claim for assistance granted him shall be enforced against any real property while it is occupied by the surviving spouse.
(c) Except as otherwise provided, upon the death of a person who executed a lien to the social services official in return for aid to aged, blind or disabled granted prior to January 1, 1974, or before the person's death if it appears reasonably certain that the sale or other disposition of the property will not materially adversely affect that person's welfare, the social services official may enforce the lien in the manner provided in article 3 of the Lien Law. After the person's death the lien may not be enforced against real property while it is occupied by the surviving spouse.

N.Y. Comp. Codes R. & Regs. Tit. 18 § 352.27