S T A T E   O F   N E W   Y O R K
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                                  8109--A
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                               May 15, 2025
                                ___________
 
 Introduced  by  Sen. S. RYAN -- read twice and ordered printed, and when
   printed to be committed to the Committee  on  Judiciary  --  committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee
 
 AN  ACT  to  amend  the  civil practice law and rules and the debtor and
   creditor law, in relation to the motor vehicle exemption and the home-
   stead exemption for certain money judgments and bankruptcy proceedings
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph 8 of subdivision (a) of section 5205 of the civil
 practice  law and rules, as amended by chapter 1 of the laws of 2011, is
 amended to read as follows:
   8. one motor vehicle not exceeding  [four]  TEN  thousand  dollars  in
 value  above  liens  and encumbrances of the debtor; if such vehicle has
 been equipped for use by a disabled debtor, then [ten] TWENTY-FIVE thou-
 sand dollars in value  above  liens  and  encumbrances  of  the  debtor;
 provided,  however,  that this exemption for one motor vehicle shall not
 apply if the debt enforced is for child support, spousal support,  main-
 tenance,  alimony or equitable distribution, or if the state of New York
 or any of its agencies or any  municipal  corporation  is  the  judgment
 creditor; and
   §  2. Subdivisions (a), (d) and (e) of section 5206 of the civil prac-
 tice law and rules, as amended by chapter 568 of the laws of  2010,  are
 amended and a new subdivision (g) is added to read as follows:
   (a)  Exemption  of  homestead. Property of one of the following types,
 not exceeding [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]
 THE  HOMESTEAD  EXEMPTION  AMOUNT in value above liens and encumbrances,
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09079-03-5
              

 S. 8109--A                          2
 
 owned and occupied as a principal residence, is exempt from  application
 to  the satisfaction of a money judgment, unless the judgment was recov-
 ered 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  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
 for the remaining counties of the state] THE HOMESTEAD EXEMPTION AMOUNT.
 The exemption of a homestead is not void because the value of the  prop-
 erty  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]
 THE HOMESTEAD EXEMPTION AMOUNT but the lien of a  judgment  attaches  to
 the surplus.
   (e)  Sale  of  homestead exceeding [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 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 in value] THE HOMESTEAD EXEMPTION AMOUNT.  A judg-
 ment 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 hundred  fifty  thou-
 sand  dollars  for the counties of Kings, Queens, New York, Bronx, Rich-
 mond, 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] THE HOMESTEAD EXEMPTION  AMOUNT
 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  JUDGMENT  DEBTOR'S right and interest in the property sold. Money,
 not exceeding [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]
 THE HOMESTEAD EXEMPTION AMOUNT, paid to a judgment debtor, as represent-
 ing [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,
 S. 8109--A                          3
 
 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.
   (G) HOMESTEAD EXEMPTION AMOUNT. FOR THE PURPOSES OF THIS SECTION,  THE
 TERM  "HOMESTEAD  EXEMPTION  AMOUNT"  SHALL  MEAN  SIX  HUNDRED THOUSAND
 DOLLARS FOR THE COUNTIES OF KINGS, QUEENS, NEW  YORK,  BRONX,  RICHMOND,
 NASSAU, SUFFOLK, ROCKLAND, WESTCHESTER AND PUTNAM; FIVE HUNDRED THOUSAND
 DOLLARS FOR THE COUNTIES OF DUTCHESS, ALBANY, COLUMBIA, ORANGE, SARATOGA
 AND  ULSTER;  AND THREE HUNDRED THOUSAND DOLLARS FOR THE REMAINING COUN-
 TIES OF THE STATE.
   § 3. Subdivision (b) of section 5253 of the  civil  practice  law  and
 rules,  as  added  by  chapter  568  of  the laws of 2010 and as further
 amended by section 104 of part A of chapter 62 of the laws of  2011,  is
 amended to read as follows:
   (b)  [The]  (1)  EXCEPT AS OTHERWISE PROVIDED BY PARAGRAPH TWO OF THIS
 SUBDIVISION, THE superintendent of financial  services  shall  determine
 the  amount  of the adjustment based on the change in the consumer price
 index for all urban consumers, New York-Northern New Jersey-Long Island,
 NY-NJ-CT-PA, published by the U.S. department of labor, bureau of  labor
 statistics,  for  the  most  recent three-year period ending on December
 thirty-first preceding the adjustment, with each adjusted amount rounded
 to the nearest twenty-five dollars.
   (2) BEGINNING APRIL FIRST, TWO THOUSAND TWENTY-SEVEN, AND EVERY  THREE
 YEARS  THEREAFTER, THE SUPERINTENDENT OF FINANCIAL SERVICES SHALL DETER-
 MINE THE AMOUNT OF THE ADJUSTMENT OF THE DOLLAR AMOUNT OF THE  HOMESTEAD
 EXEMPTION  PROVIDED IN SECTION FIFTY-TWO HUNDRED SIX OF THIS ARTICLE AND
 SECTION TWO HUNDRED EIGHTY-TWO OF THE DEBTOR AND CREDITOR LAW  BASED  ON
 THE  CHANGE  IN THE MEDIAN VALUE OF OWNER-OCCUPIED HOUSING UNITS FOR THE
 STATE OF NEW YORK FOUND IN  THE  FIVE-YEAR  ESTIMATES  OF  THE  AMERICAN
 COMMUNITY  SURVEY  FOR  THE MOST RECENT YEAR THEN AVAILABLE, COMPARED TO
 THE MEDIAN VALUE OF OWNER-OCCUPIED HOUSING UNITS FOR THE  STATE  OF  NEW
 YORK  FOUND  IN FIVE-YEAR ESTIMATES OF THE AMERICAN COMMUNITY SURVEY FOR
 THE YEAR THREE YEARS PREVIOUS TO THE MOST RECENT YEAR THEN AVAILABLE, AS
 PUBLISHED BY THE UNITED STATES CENSUS BUREAU.   IN THE EVENT  THE  FIVE-
 YEAR  ESTIMATES  OF THE AMERICAN COMMUNITY SURVEY IS DISCONTINUED BY THE
 UNITED STATES CENSUS BUREAU OR IS OTHERWISE NOT  AVAILABLE,  THE  SUPER-
 INTENDENT  OF  FINANCIAL  SERVICES  SHALL  SELECT  A  DIFFERENT ESTIMATE
 PREPARED BY NEW YORK STATE OR THE UNITED STATES THAT SIMILARLY  REFLECTS
 SINGLE FAMILY HOUSING VALUES IN NEW YORK STATE.
   §  4.  Subdivision 1 of section 282 of the debtor and creditor law, as
 amended by chapter 568 of the laws  of  2010,  is  amended  to  read  as
 follows:
   1.  Bankruptcy  exemption  of  a  motor vehicle. One motor vehicle not
 exceeding [four] TEN thousand dollars in value above  liens  and  encum-
 brances  of  the  debtor;  provided,  however,  if such vehicle has been
 equipped for use by a disabled debtor, then [ten]  TWENTY-FIVE  thousand
 dollars  in  value above liens and encumbrances of the debtor; PROVIDED,
 HOWEVER, THAT A DEBTOR IN A BANKRUPTCY PROCEEDING  SHALL  NOT  EXEMPT  A
 MOTOR  VEHICLE  UNDER  THIS SUBDIVISION WHERE SUCH DEBTOR HAS EXEMPTED A
 MOTOR VEHICLE UNDER SUBDIVISION EIGHT OF SECTION FIFTY-TWO HUNDRED  FIVE
 OF THE CIVIL PRACTICE LAW AND RULES.
 S. 8109--A                          4
 
   (B)  NOT  WITHSTANDING THE OPENING PARAGRAPH OF THIS SECTION, AN INDI-
 VIDUAL BANKRUPTCY DEBTOR DOMICILED IN THIS STATE WHO  IS  NOT  THE  SOLE
 OWNER  OF SUCH DEBTOR'S HOMESTEAD PROPERTY AND WHO IS CLAIMING THE HOME-
 STEAD EXEMPTION UNDER SECTION FIFTY-TWO HUNDRED SIX OF THE  CIVIL  PRAC-
 TICE LAW AND RULES MAY CLAIM AS AN EXEMPTION:
   (1)  IF  SUCH  DEBTOR  HOLDS A ONE-HALF INTEREST IN THE EQUITY IN SUCH
 HOMESTEAD PROPERTY, ONE-HALF OF THE HOMESTEAD EXEMPTION; OR
   (2) IF SUCH DEBTOR HOLDS A DIFFERENT FRACTIONAL INTEREST IN THE EQUITY
 OF  SUCH  HOMESTEAD  PROPERTY,  A  FRACTIONAL  SHARE  OF  THE  HOMESTEAD
 EXEMPTION EQUIVALENT TO SUCH DEBTOR'S FRACTIONAL EQUITY INTEREST.
   § 5. This act shall take effect immediately.