Senate Bill S5968

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5968
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                               March 4, 2025
                                ___________
 
 Introduced  by  Sen.  PARKER -- read twice and ordered printed, and when
   printed to be committed to the Committee on Judiciary
 
 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.
                                                            LBD06695-02-5
              

 S. 5968                             2
 
 for the remaining counties of the state. The exemption of a homestead is
 not void because the value of the property  exceeds  [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, Alba-
 ny, Columbia, Orange, Saratoga and  Ulster;  and  seventy-five  thousand
 dollars  for the remaining counties of the state but the lien of a judg-
 ment 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]  SUCH
 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]  SUCH  JUDGMENT  DEBTOR  dies  after the sale and before
 payment to [him] SUCH JUDGMENT DEBTOR of [his]  SUCH  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
 benefit of the  exemption,  or  be  otherwise  disposed  of  as  justice
 requires.
   § 2. This act shall take effect immediately.