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 not only to traditional homes but also to manufactured housing, mobile homes, housing cooperatives, and condominiums, provided they are occupied as a primary residence. New provisions 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, and it establishes that proceeds from the sale of a qualifying residence can be protected if reinvested in a new primary residence within six months.

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. It introduces new exceptions to this protection, including enforcement of liens for unpaid domestic support obligations and mechanics' liens for construction-related debts. The bill also mandates that individuals must notify the sheriff and judgment creditor of their homestead claim to ensure the exemption is honored during property sales. The changes will 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