This bill amends the existing homestead right laws to significantly increase the exemption amounts and expand the types of properties eligible for homestead protection. Specifically, it raises the homestead exemption from $120,000 to $400,000 for individuals and from $240,000 to $550,000 for all persons with an interest in the property. Additionally, the bill clarifies that the homestead right applies to manufactured housing, mobile homes, housing cooperatives, and condominiums, provided they are occupied as a primary residence. It also introduces provisions that allow for the full market value of the property to be claimed as a homestead right in cases of debts arising from unpaid medical bills or catastrophic injuries.

Furthermore, the bill modifies the language regarding the homestead right's exemption from debt collection, stating that it does not erase any debt but protects the homestead from attachment during its continuance. New exemptions are added for the enforcement of liens related to forfeited bail bonds and domestic support obligations. The bill also requires that notice of the homestead exemption be provided to individuals residing on the property during execution sales, ensuring they are informed of their 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
Version adopted by both bodies: 480:1, 480:4, 529:20-a
CHAPTERED FINAL VERSION: 480:1, 480:4, 529:20-a