Senate Bill S1965

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  1965

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                            January 14, 2011
                               ___________

Introduced  by  Sens.  PARKER,  DILAN,  SAMPSON, SMITH -- read twice and
  ordered printed, and when printed to be committed 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:

  Section 1. Subdivisions (a), (d) and (e) of section 5206 of the  civil
practice  law  and rules, as amended by chapter 568 of the laws of 2010,
are amended to read as follows:
  (a) Exemption of homestead. Property of one of  the  following  types,
not  exceeding [one] TWO hundred fifty thousand dollars for the counties
of Kings, Queens, New York, Bronx, Richmond, Nassau, Suffolk,  Rockland,
Westchester and Putnam; one hundred twenty-five thousand dollars for the
counties of Dutchess, Albany, Columbia, Orange, Saratoga and Ulster; and
seventy-five thousand dollars for the remaining counties of the state in
value  above  liens  and encumbrances, owned and occupied as a principal
residence, is exempt from application to the  satisfaction  of  a  money
judgment,  unless  the  judgment  was  recovered wholly for the purchase
price thereof:
  1. a lot of land with a dwelling thereon,
  2. shares of stock in a cooperative apartment corporation,
  3. units of a condominium apartment, or
  4. a mobile home.
  But no exempt homestead shall be exempt from taxation or from sale for
non-payment of taxes or assessments.
  (d) Exemption of homestead exceeding [one] TWO hundred fifty  thousand
dollars  in  value  for  the counties of Kings, Queens, New York, Bronx,
Richmond, Nassau, Suffolk, Rockland, Westchester and Putnam; one hundred
twenty-five thousand dollars  for  the  counties  of  Dutchess,  Albany,

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01614-02-1
              

S. 1965                             2

Columbia, Orange, Saratoga and Ulster; and seventy-five thousand dollars
for the remaining counties of the state. The exemption of a homestead is
not  void  because  the  value of the property exceeds one hundred fifty
thousand  dollars  for  the  counties of Kings, Queens, New York, Bronx,
Richmond, Nassau, Suffolk, Rockland, Westchester and Putnam; one hundred
twenty-five thousand dollars  for  the  counties  of  Dutchess,  Albany,
Columbia, Orange, Saratoga and Ulster; and seventy-five thousand dollars
for  the  remaining  counties  of  the  state but the lien of a judgment
attaches to the surplus.
  (e) Sale of homestead  exceeding  [one]  TWO  hundred  fifty  thousand
dollars  for  the  counties of Kings, Queens, New York, Bronx, Richmond,
Nassau, Suffolk, Rockland, Westchester and Putnam; one  hundred  twenty-
five  thousand  dollars  for the counties of Dutchess, Albany, Columbia,
Orange, Saratoga and Ulster; and seventy-five thousand dollars  for  the
remaining  counties  of  the  state  in  value.  A judgment creditor may
commence a special proceeding in the county in which  the  homestead  is
located  against  the  judgment  debtor  for  the  sale, by a sheriff or
receiver, of a homestead exceeding  [one]  TWO  hundred  fifty  thousand
dollars  for  the  counties of Kings, Queens, New York, Bronx, Richmond,
Nassau, Suffolk, Rockland, Westchester and Putnam; one  hundred  twenty-
five  thousand  dollars  for the counties of Dutchess, Albany, Columbia,
Orange, Saratoga and Ulster; and seventy-five thousand dollars  for  the
remaining  counties of the state in value. The court may direct that the
notice of petition be served upon any other person.  The  court,  if  it
directs  such a sale, shall so marshal the proceeds of the sale that the
right and interest of each person in the proceeds  shall  correspond  as
nearly  as may be to his right and interest in the property sold. Money,
not exceeding [one] TWO hundred fifty thousand dollars for the  counties
of  Kings, Queens, New York, Bronx, Richmond, Nassau, Suffolk, Rockland,
Westchester and Putnam; one hundred twenty-five thousand dollars for the
counties of Dutchess, Albany, Columbia, Orange, Saratoga and Ulster; and
seventy-five thousand dollars for the remaining counties of  the  state,
paid to a judgment debtor, as representing his interest in the proceeds,
is  exempt for one year after the payment, unless, before the expiration
of the year, he  acquires  an  exempt  homestead,  in  which  case,  the
exemption  ceases  with  respect  to  so  much  of  the money as was not
expended for the purchase of that property; and  the  exemption  of  the
property  so  acquired  extends to every debt against which the property
sold was exempt. Where the exemption of property sold as  prescribed  in
this  subdivision  has been continued after the judgment debtor's death,
or where he dies after the sale and before payment to him of his portion
of the proceeds of the sale, the court may direct that  portion  of  the
proceeds  which  represents  his interest be invested for the benefit of
the person or persons entitled to the benefit of the  exemption,  or  be
otherwise disposed of as justice requires.
  S  2.  This  act  shall take effect immediately and shall be deemed to
have been in full force and effect on and after August 30, 2005.