Assembly Bill A6390

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6390
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               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:
 
   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,
 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
 
 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] SUCH PERSON'S right and interest in the  prop-
 erty 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 thou-
 sand 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]
 SUCH JUDGMENT DEBTOR'S interest in the proceeds, is exempt for one  year
 after  the  payment, unless, before the expiration of the year, [he] THE
 JUDGMENT DEBTOR  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] THE JUDGMENT DEBTOR dies after the sale and before payment
 to [him] THE JUDGMENT DEBTOR of [his] THE JUDGMENT DEBTOR'S  portion  of
 the  proceeds  of  the  sale,  the  court may direct that portion of the
 proceeds which represents  [his]  SUCH  JUDGMENT  DEBTOR'S  interest  be
 invested  for the benefit of the person or persons entitled to the bene-
 fit of the exemption, or be otherwise disposed of as justice requires.
   § 2. This act shall take effect immediately.