1. (1) A social services official may approve a grant, not to exceed $2,500 toward the purchase of an interest in a cooperative unit in a low cost housing development.

2. (2) The social services official must require assignment of applicant's/recipient's equity in such cooperative housing.

   (b) Carrying charges.

   On applicant/recipient-owned property used as a home, carrying charges must be met in the amount actually paid by the applicant/recipient, but not in excess of the appropriate maximum of the rent schedule, for the items of taxes; interest on mortgage; fire insurance; and garbage disposal, sewer and water assessments.

   (c) Amortization.

   The amounts required to amortize a mortgage on the applicant's/recipient's property must be included in the carrying charges when property is income-producing and the resulting carrying charges do not exceed the property income by an amount in excess of the maximum of the established rent schedule or when property is not income-producing but it is essential to retain the home of the applicant/recipient and the resulting carrying charges do not exceed the appropriate maximum of the established rent schedule.

   (d) Property repairs.

   The cost of property repairs must be met when:

3. (1) the property is income-producing and the repairs are essential to retain that status; or

4. (2) the repairs are essential to the health or safety of the applicant/recipient.

   (e) Shelter costs of property deeded to social services official.

5. (1) Property on which a social services official has taken a deed under the provisions of section 106 of the Social Services Law may be used to shelter a public assistance recipient whether it be the recipient who conveyed such property or other recipient.
6. (2) Except in cases when property is used to shelter a surviving spouse of a former recipient who conveyed such property, it shall be used to shelter other recipients only for a period of one year subsequent to the date of the death of the recipient who conveyed such property. After the expiration of a six-month period from such date of death but on or before the expiration of such one year, appropriate action shall be taken to initiate a sale of such property in accordance with the provisions of section 106 of the Social Services Law.
7. (3) In cases in which property conveyed to a social services official is used to shelter a recipient other than the recipient who conveyed such property or his surviving spouse, a reasonable rental for such shelter shall be determined. Such reasonable rental shall be included in the grant of assistance of the recipient sheltered in such property and the net amount of such rent, in excess of all carrying charges paid for by the social services district, shall be credited to the amount required to redeem the property as provided in section 106 of the Social Services Law.

(a) Purchase of interest in low cost housing development.