NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A6390
SPONSOR: Walker TITLE OF BILL:
An act to amend the civil practice law and rules, in relation to
increasing the value of homesteads which are to be exempt from civil
judgments
PURPOSE OR GENERAL IDEA OF BILL:
This bill would amend the Civil Practice Law and Rules, in relation to
increasing the value of the homestead exemption for civil judgments.
SUMMARY OF PROVISIONS:
This bill would amend Section 5206 of the Civil Practice Law and Rules
to increase the homestead exemption amount from civil judgments in New
York State from $50,000 to $250,000.
JUSTIFICATION:
The idea of the homestead exemption to civil judgments seems to have
been that no civil judgment against any person should result in that
person forfeiting his or her having a right to a place to live. To that,
end, Chapter 181 of the Laws of 1977 made the value of a person's home-
stead up to $10,000 exempt from civil judgments against that person.
Later on, Section 282 of the Debtor and Creditor Law extended this
exemption to assessments of the value of a person's estate when Bank-
ruptcy is declared. When laws mention specific dollar amounts, it is
prudent to periodically review and update those amounts. Current law
sets the homestead exemptions at $50,000. That amount was set by Chapter
623 of the laws of 2005.
This bill proposes to increase the homestead exemption to $250,000, a
much more, realistic figure. The current amount, although only one year
old, is not at all realistic in today's economy.
PRIOR LEGISLATIVE HISTORY:
2021-2022: A7820 - Referred to Codes
2023-2024: A1069 - Referred to Codes
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None.
EFFECTIVE DATE:
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
6390
2025-2026 Regular Sessions
IN ASSEMBLY
March 4, 2025
___________
Introduced by M. of A. WALKER -- read once and referred to the Committee
on Codes
AN ACT to amend the civil practice law and rules, in relation to
increasing the value of homesteads which are to be exempt from civil
judgments
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivisions (a), (d) and (e) of section 5206 of the civil
2 practice law and rules, as amended by chapter 568 of the laws of 2010,
3 are amended to read as follows:
4 (a) Exemption of homestead. Property of one of the following types,
5 not exceeding [one] two hundred fifty thousand dollars for the counties
6 of Kings, Queens, New York, Bronx, Richmond, Nassau, Suffolk, Rockland,
7 Westchester and Putnam; one hundred twenty-five thousand dollars for the
8 counties of Dutchess, Albany, Columbia, Orange, Saratoga and Ulster; and
9 seventy-five thousand dollars for the remaining counties of the state in
10 value above liens and encumbrances, owned and occupied as a principal
11 residence, is exempt from application to the satisfaction of a money
12 judgment, unless the judgment was recovered wholly for the purchase
13 price thereof:
14 1. a lot of land with a dwelling thereon,
15 2. shares of stock in a cooperative apartment corporation,
16 3. units of a condominium apartment, or
17 4. a mobile home.
18 But no exempt homestead shall be exempt from taxation or from sale for
19 non-payment of taxes or assessments.
20 (d) Exemption of homestead exceeding [one] two hundred fifty thousand
21 dollars in value for the counties of Kings, Queens, New York, Bronx,
22 Richmond, Nassau, Suffolk, Rockland, Westchester and Putnam; one hundred
23 twenty-five thousand dollars for the counties of Dutchess, Albany,
24 Columbia, Orange, Saratoga and Ulster; and seventy-five thousand dollars
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD06695-01-5
A. 6390 2
1 for the remaining counties of the state. The exemption of a homestead is
2 not void because the value of the property exceeds one hundred fifty
3 thousand dollars for the counties of Kings, Queens, New York, Bronx,
4 Richmond, Nassau, Suffolk, Rockland, Westchester and Putnam; one hundred
5 twenty-five thousand dollars for the counties of Dutchess, Albany,
6 Columbia, Orange, Saratoga and Ulster; and seventy-five thousand dollars
7 for the remaining counties of the state but the lien of a judgment
8 attaches to the surplus.
9 (e) Sale of homestead exceeding [one] two hundred fifty thousand
10 dollars for the counties of Kings, Queens, New York, Bronx, Richmond,
11 Nassau, Suffolk, Rockland, Westchester and Putnam; one hundred twenty-
12 five thousand dollars for the counties of Dutchess, Albany, Columbia,
13 Orange, Saratoga and Ulster; and seventy-five thousand dollars for the
14 remaining counties of the state in value. A judgment creditor may
15 commence a special proceeding in the county in which the homestead is
16 located against the judgment debtor for the sale, by a sheriff or
17 receiver, of a homestead exceeding [one] two hundred fifty thousand
18 dollars for the counties of Kings, Queens, New York, Bronx, Richmond,
19 Nassau, Suffolk, Rockland, Westchester and Putnam; one hundred twenty-
20 five thousand dollars for the counties of Dutchess, Albany, Columbia,
21 Orange, Saratoga and Ulster; and seventy-five thousand dollars for the
22 remaining counties of the state in value. The court may direct that the
23 notice of petition be served upon any other person. The court, if it
24 directs such a sale, shall so marshal the proceeds of the sale that the
25 right and interest of each person in the proceeds shall correspond as
26 nearly as may be to [his] such person's right and interest in the prop-
27 erty sold. Money, not exceeding [one] two hundred fifty thousand dollars
28 for the counties of Kings, Queens, New York, Bronx, Richmond, Nassau,
29 Suffolk, Rockland, Westchester and Putnam; one hundred twenty-five thou-
30 sand dollars for the counties of Dutchess, Albany, Columbia, Orange,
31 Saratoga and Ulster; and seventy-five thousand dollars for the remaining
32 counties of the state, paid to a judgment debtor, as representing [his]
33 such judgment debtor's interest in the proceeds, is exempt for one year
34 after the payment, unless, before the expiration of the year, [he] the
35 judgment debtor acquires an exempt homestead, in which case, the
36 exemption ceases with respect to so much of the money as was not
37 expended for the purchase of that property; and the exemption of the
38 property so acquired extends to every debt against which the property
39 sold was exempt. Where the exemption of property sold as prescribed in
40 this subdivision has been continued after the judgment debtor's death,
41 or where [he] the judgment debtor dies after the sale and before payment
42 to [him] the judgment debtor of [his] the judgment debtor's portion of
43 the proceeds of the sale, the court may direct that portion of the
44 proceeds which represents [his] such judgment debtor's interest be
45 invested for the benefit of the person or persons entitled to the bene-
46 fit of the exemption, or be otherwise disposed of as justice requires.
47 § 2. This act shall take effect immediately.
