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F I S C A L I M P A C T R E P O R T

SPONSOR:	Garcia, M.H.		DATE TYPED:	1/30/03		HB	363
SHORT TITLE:		Homestead Bankruptcy Exception Act				SB
					ANALYST:		L. Kehoe

APPROPRIATION

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY03

FY04

FY03

FY04

NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates Senate Bill 83

SOURCES OF INFORMATION

New Mexico Mortgage Finance Authority (MFA)

SUMMARY

Synopsis of Bill

House Bill 363 exempts a debtor’s homestead from the processes of the bankruptcy court and prohibits any judgment, decree or execution of a lien against it in bankruptcy court except for the payment of taxes, tax assessments or obligations contracted for the purchase, improvement or repair of the homestead. The homestead exemption is limited to the owner of the homestead and his heirs.

Significant Issues

House Bill 363 would give affordable housing providers the ability to file a lien on the homestead owners’ property for debt owed to providers for housing improvements or repair. The bill further protects the rights of the home improvement providers to secure a means for recovery of their costs due through the lien proviso.

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

House Bill 363 duplicates Senate Bill 83.

F I S C A L I M P A C T R E P O R T

SOURCES OF INFORMATION

LMK/yr