ARIZONA STATE SENATE

ANNA NGUYEN

LEGISLATIVE RESEARCH INTERN

MOLLY GRAVER

LEGISLATIVE RESEARCH ANALYST

FINANCE COMMITTEE

Telephone: (602) 926-3171

RESEARCH STAFF

TO:                  MEMBERS OF THE SENATE

FINANCE COMMITTEE

DATE:            March 21, 2022

SUBJECT:      Strike everything amendment to H.B. 2351, relating to homestead exemptions

Purpose

            Increases the homestead exemption from $250,000 to $450,000, which applies to any recorded and otherwise valid claim of homestead against any creditor who attempts to enforce a judgement or lien on or after the effective date.

Background

Arizona's homestead exemption exempts up to $250,000 of a person’s equity in their dwelling from attachment, execution or forced sale. The exemption applies to a person’s house and land, condominium or cooperative, mobile home or mobile home and land. A person or married couple may only claim one homestead exemption and must reside in the home for which the exemption is claimed. The homestead exemption automatically attaches to a person's interest in identifiable cash proceeds from the voluntary or involuntary sale of the property which continues for 18 months after the date of the sale or until the person establishes a new homestead with the proceeds, whichever is shorter. The homestead exemption does not attach to the person's interest in identifiable cash proceeds from refinancing the homestead property (A.R.S. § 33-1101).

There is no anticipated fiscal impact to the state General Fund associated with this legislation.

Provisions

1. Increases, from $250,000 to $450,000, the homestead exemption.

2. Applies the homestead exemption increase to any recorded and otherwise valid claim of homestead against any creditor who attempts to enforce a judgement or lien on or after the effective date.

3. Makes technical changes.

4. Becomes effective on the general effective date.