This bill amends the existing homestead right laws by increasing the exempted amount from $120,000 to $350,000 for individuals and from $240,000 to $500,000 for married couples. It also expands the definition of homestead rights to include ownership interests in mobile homes, housing cooperatives, and condominiums, provided these properties are occupied as a primary residence. Additionally, the bill introduces new provisions that allow for the full market value of a property to be claimed as a homestead right if the debt arises from unpaid medical bills or debts due to terminal or catastrophic injuries. Furthermore, it stipulates that to qualify for the exemption, the residence must have been continuously used as a primary residence for the previous 12 months, with protections for proceeds from the sale of a qualifying residence if reinvested within six months.

The bill also clarifies that the homestead right does not erase any debts but protects the homestead from attachment during its continuance from levy or sale on execution, with specific exceptions for tax collections, liens for forfeited bail bonds, and debts related to construction or repair of the homestead. It modifies the notification process for individuals residing on real estate subject to execution, ensuring they are informed of their potential homestead exemption rights. The act is set to take effect on January 1, 2026.

Statutes affected:
Introduced: 480:1, 480:4, 529:20-a
As Amended by the House: 480:1, 480:4, 529:20-a
As Amended by the Senate: 480:1, 480:4, 529:20-a