Bernstein v. Toia

• Decision Date: 21 December 1977
• Citation: 43 N.Y.2d 437,402 N.Y.S.2d 342
• Parties: , 373 N.E.2d 238 In the Matter of Betty BERNSTEIN et al., on behalf of themselves and all others similarly situated, Respondents, v. Philip L. TOIA, as Commissioner of the New York State Department of Social Services, Appellant, and J. Henry Smith, as Commissioner of the New York City Department of Social Services, Respondent.
• Court: New York Court of Appeals Court of Appeals

Page 342

402 N.Y.S.2d 342

43 N.Y.2d 437, 373 N.E.2d 238

In the Matter of Betty BERNSTEIN et al., on behalf of

themselves and all others similarly situated, Respondents, v. Philip L. TOIA, as Commissioner of the New York State

Department of Social Services, Appellant,

and

J. Henry Smith, as Commissioner of the New York City

Department of Social Services, Respondent.

Court of Appeals of New York.

Dec. 21, 1977.

Louis J. Lefkowitz, Atty. Gen. (Amy Juviler, Samuel A. Hirshowitz, Herbert J. Wallenstein and Joseph F. Wagner, New York City, of counsel), for appellant.

Robert J. Anderson, Ralph Murphy, Nancy E. Le Blanc, New York City and K. Wade Eaton, Rochester, for respondents.

JONES, Judge.

We find no sufficient basis to disturb a regulation adopted by the Department of Social Services that fixes maximum shelter allowances for recipients of public assistance without at the same time making provision for exceptions due to circumstances peculiar to individual recipients. The flat grant concept in the administration of shelter allowances is neither unconstitutional nor in conflict with section 131-a of the Social Services Law.

Section 131-a of the Social Services Law contains the basic legislative authorization for monthly grants and allowances of public assistance. Subdivision 1 states the general authorization therefor; subdivision 2 prescribes the standard of monthly need for determining eligibility; subdivision 3 provides the maximum monthly grants for basic needs of eligible recipients; and subdivision 6 makes provision for special items and services. To be more specific, subdivision 1 provides that eligible recipients shall receive grants and allowances within the limits of the schedule set forth in subdivision 3 "except for additional amounts which shall be included therein for shelter, fuel for heating, additional cost of meals for persons who are unable to prepare meals at home and for other items for which specific provision is otherwise made". In this CPLR article 78 proceeding, petitioners, recipients challenge the regulation promulgated by respondent Commissioner of Social Services which prescribes the method for determining the amounts payable for shelter. That regulation 18 N.Y.C.R.R. 352.3(a) provides: "Rent allowances. (a)(1) Each social services district shall provide * * * a monthly allowance for rent in the amount actually paid, but not in excess of the appropriate maximum of such district for each family size, in accordance with the following schedules:" There then follows a schedule establishing a maximum shelter allowance for each district within the State with variations from district to district and for family size within each district. The regulation was made effective October 1, 1975 except that for persons who had been receiving shelter grants prior to its adoption under a practice by which local social services commissioners were authorized to establish shelter allowance maxima for their own districts and in some areas were approving payment of grants in excess of the local maxima in individual cases ^* the regulation's effective date was October 1, 1976. Prior to the latter date petitioners, two recipients of and one applicant for social services benefits, instituted this proceeding to challenge the validity of the regulation contending that, insofar as it permits no payments of shelter allowances in excess of the scheduled maxima and thus precludes recognition of special circumstances in individual cases, the regulation is in violation of State statute and both State and Federal Constitutions.

On appeal by respondents (the State and local commissioners of social services) from an order of the Appellate Division affirming the denial of their motion to dismiss the petition we assume, as we must, the truth of the factual allegations set forth in petitioners' pleading (cf. Rovello v. Orofino Realty Co., 40 N.Y.2d 633, 389 N.Y.S.2d 314, 357 N.E.2d 970). On the basis of that assumption it appears that all three petitioners reside in New York City where the applicable rent ceiling is fixed at $152 per month. Petitioner Bernstein, a recipient of social services benefits in the amount of $40.80 a month, is a 64-year-old widow living alone in a building with elevator service. For her accommodations she pays a monthly rental of $198.90. Because of two previous heart attacks, seizures and a diabetic condition, her physician has issued a letter stating that she needs to remain in the building in which she resides, where she also receives assistance from neighbors. Under the practice which had existed before promulgation of the challenged regulation Mrs. Bernstein's rent had been approved by the Social Services Commissioner by reason of her special circumstances; however, inasmuch as under the new regulation the maximum monthly shelter allowance for a single-member family in the City of New York is $152, she was advised that as of October 1, 1976 her benefits would cease because the local social services agency would no longer consider the rent paid by her in excess of $152 a month in determining her eligibility for benefits. The resulting disallowance of benefits would prevent Mrs. Bernstein from continuing to reside at her present location because she would "find it nearly impossible to find an apartment in an elevator building in her neighborhood for $152 per month."

Petitioner Banister, a recipient of home relief public assistance, also resides alone. The rent on his ground floor apartment of $160 a month had been approved by the local Social Services Department because of physical and emotional limitations which made it "unhealthy" for him to climb stairs and which require him to be near his brother, who lives a block away and is thus able to look in on him from time to time. Mr. Banister was advised that, as of October 1, 1976, his benefit for shelter would be reduced from $160 to $152, the scheduled maximum allowance. He asserts that if he is evicted from his present residence it will be "nearly impossible" for him to locate an apartment on a ground floor or with elevator service in the neighborhood near his brother.

Petitioner Piotrowicz, a severely disabled veteran existing on Social Security and veteran's disability benefits, resides alone in an apartment for which he pays monthly rent of $180. Friends residing in the apartment building assist him when he has a seizure, an occurrence to which he is subject from time to time. His application for medical assistance filed on March 2, 1976 was rejected by the local Department of Social Services when, in determining his eligibility for benefits, his standard of need was computed on the basis of the maximum $152 shelter allowance rather than the rental of $180 actually paid by him.

Petitioners joined together in this proceeding which they sought to maintain as a class action on behalf of all those receiving or eligible to receive home relief, veteran's assistance or medical assistance who are paying rents higher than the ceiling set forth in 18 N.Y.C.R.R. 352.3(a) and whose public assistance grant for rent accordingly is or is about to become lower than the amount of rent they actually pay, or who have been ruled ineligible to receive home relief or medical assistance solely on the basis that their standard of need is determined by the maxima in the regulation rather than by taking into account rents actually paid. In addition to a declaration of invalidity of 18 N.Y.C.R.R. 352.3(a), petitioners sought a permanent injunction against enforcement of the regulation and a direction that respondents commissioners provide petitione and other members of the class with a shelter grant for rent actually paid (up to a reasonable amount to be determined on a case-by-case basis) and determine eligibility for social services benefits on a standard of need determined on the same basis, without respect to the maximum shelter allowances set forth in the regulation.

Special Term denied the application for class action status but held that the imposition of maximum shelter allowances by the regulation was invalid as a failure to comply with the State's constitutional and statutory provisions with respect to public care of the needy, denied respondents' motion to dismiss and directed them to answer the petition. Pending determination of the proceeding, the court stayed any reduction of shelter allowances to petitioners below the level they were receiving on August 31, 1976. With its affirmance of the disposition at Special Term, the Appellate Division granted leave to appeal to this court on a certified question. We now reverse the determination below and uphold the departmental regulation.

At the outset it is to be observed that what is provided by 18 N.Y.C.R.R. 352.3(a) is a shelter allowance equal to rent actually paid by a benefits recipient, subject however to a fixed ceiling, the amount of which varies from district to district and then with the number of persons in a family unit; to the extent that the scheduled maximum restricts the allowance payable the feature challenged by petitioners it is in the nature of a flat grant, rather than a special grant, the entitlement to and the amount of which would be determined on an individual basis taking into account the particular circumstances of each recipient. Petitioners assert that the challenged regulation, by failing to treat the shelter allowance as a special grant, violates and is inconsistent with section 131-a of the Social Services Law, violates the mandate of section 1 of article XVII of the New York State Constitution and deprives them of equal protection and due process of law under Federal and State Constitutions.

We note that, while petitioners purport to disclaim any challenge to the "use of maximum rent schedules", assertedly limiting their attack to respondents' failure "to make exceptions to those schedules when warranted", their assault is in truth one on the flat grant...