Gibbons submits homeowner protection Act of 2007

02/19/07

Carson City – Governor Jim Gibbons today submitted legislation to the Nevada State Legislature that will increase the homestead exemption and improve the ability of Nevada’s homeowners to protect their primary residences from bankruptcy or other legal proceedings.   

The homestead exemption currently provides protection of up to $350,000 for primary residences.  The median price of single family homes in many parts of the state has risen above $350,000, leaving many Nevadans at risk of losing their most valuable asset.

This legislation would make changes to the exemption level for primary residences, and does not propose any changes to current law regarding secondary homes or fee changes for homes valued above the homestead exemption amount, a change from the Governor’s original proposal delivered in his State of the State address.

“The value of homes in Nevada has risen at a dramatic rate in recent years, therefore, adequate protection must be provided for what is many Nevadans’ most valuable asset.  In many parts of the state, the value of homes has surpassed the current exemption level.  Increasing the exemption level to $550,000 will accommodate the continued growth in Nevada’s housing market that is expected in the coming years,” said Governor Gibbons.

Specifically, this bill increases the current exemption from $350,000 to $550,000 and removes the fee to file a declaration of homestead in the more populous counties, thereby encouraging more homeowners to take advantage of the Homestead Act.