S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7940
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              April 16, 2025
                                ___________
 
 Introduced  by M. of A. BRONSON -- read once and referred to the Commit-
   tee on Codes
 
 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,
 owned  and occupied as a principal residence, is exempt from application
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09079-02-5
 A. 7940                             2
              

 
 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,
 or where [he] SUCH JUDGMENT  DEBTOR  dies  after  the  sale  and  before
 A. 7940                             3
 
 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.
   (B) NOT WITHSTANDING THE OPENING PARAGRAPH OF THIS SECTION,  AN  INDI-
 VIDUAL  BANKRUPTCY  DEBTOR  DOMICILED  IN THIS STATE WHO IS NOT THE SOLE
 A. 7940                             4
 
 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.