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<p class="MsoNormal"><font size="2" face="Calibri"><span style="font-size:11.0pt">The Senate passed a bill yesterday that is a major amendment to the homestead exemption. The homestead exemption would become the greater of $125,000 or the county median price
home value as determined by an academic department at the UW. So, we would have 39 different homestead exemption amounts. And they would float. This bill started out as a clarification to resolve a dispute among bankruptcy judges about how Washington homestead
exemption law fit into the Bankruptcy Code. Then someone decided to make a Washington version of what just went into effect in California Jan 1, 2021:<o:p></o:p></span></font></p>
<p class="MsoNormal"><font size="2" face="Calibri"><span style="font-size:11.0pt"><o:p> </o:p></span></font></p>
<p style="margin:0in;text-indent:23.65pt;background:white"><font size="2" color="#292929" face="Calibri"><span style="font-size:11.0pt;color:#292929;letter-spacing:.15pt">Section 704.730 of California’s Civil Code:<o:p></o:p></span></font></p>
<p style="mso-margin-top-alt:0in;margin-right:0in;margin-bottom:0in;margin-left:23.65pt;background:white;box-sizing: border-box;overflow-wrap: break-word;font-variant-ligatures: normal;font-variant-caps: normal;orphans: 2;text-align:start;widows: 2;-webkit-text-stroke-width: 0px;text-decoration-thickness: initial;text-decoration-style: initial;text-decoration-color: initial;word-spacing:0px">
<font size="2" color="#292929" face="Calibri"><span style="font-size:11.0pt;color:#292929;letter-spacing:.15pt">(a) The amount of the homestead exemption is the greater of the following:<o:p></o:p></span></font></p>
<p style="mso-margin-top-alt:0in;margin-right:23.65pt;margin-bottom:0in;margin-left:47.3pt;background:white;box-sizing: border-box;overflow-wrap: break-word;font-variant-ligatures: normal;font-variant-caps: normal;orphans: 2;text-align:start;widows: 2;-webkit-text-stroke-width: 0px;text-decoration-thickness: initial;text-decoration-style: initial;text-decoration-color: initial;word-spacing:0px">
<font size="2" color="#292929" face="Calibri"><span style="font-size:11.0pt;color:#292929;letter-spacing:.15pt">(1) The countywide median sale price for a single-family home in the calendar year prior to the calendar year in which the judgment debtor claims
the exemption, not to exceed six hundred thousand dollars ($600,000).<o:p></o:p></span></font></p>
<p style="mso-margin-top-alt:0in;margin-right:23.65pt;margin-bottom:0in;margin-left:47.3pt;background:white;box-sizing: border-box;overflow-wrap: break-word;font-variant-ligatures: normal;font-variant-caps: normal;orphans: 2;text-align:start;widows: 2;-webkit-text-stroke-width: 0px;text-decoration-thickness: initial;text-decoration-style: initial;text-decoration-color: initial;word-spacing:0px">
<font size="2" color="#292929" face="Calibri"><span style="font-size:11.0pt;color:#292929;letter-spacing:.15pt">(2) Three hundred thousand dollars ($300,000).<o:p></o:p></span></font></p>
<p style="mso-margin-top-alt:0in;margin-right:0in;margin-bottom:0in;margin-left:23.65pt;background:white;box-sizing: border-box;overflow-wrap: break-word;font-variant-ligatures: normal;font-variant-caps: normal;orphans: 2;text-align:start;widows: 2;-webkit-text-stroke-width: 0px;text-decoration-thickness: initial;text-decoration-style: initial;text-decoration-color: initial;word-spacing:0px">
<font size="2" color="#292929" face="Calibri"><span style="font-size:11.0pt;color:#292929;letter-spacing:.15pt">(b) The amounts specified in this section shall adjust annually for inflation, beginning on January 1, 2022, based on the change in the annual California
Consumer Price Index for All Urban Consumers for the prior fiscal year, published by the Department of Industrial Relations.<o:p></o:p></span></font></p>
<p class="MsoNormal"><font size="2" face="Calibri"><span style="font-size:11.0pt"><o:p> </o:p></span></font></p>
<p class="MsoNormal"><font size="2" face="Calibri"><span style="font-size:11.0pt">Here are the details:<o:p></o:p></span></font></p>
<p class="MsoNormal" style="background:white"><font size="2" color="black" face="Calibri"><span style="font-size:11.0pt;color:black">SB 5408 - 2021-22. Concerning the homestead exemption.
<o:p></o:p></span></font></p>
<p class="MsoNormal" style="background:white"><font size="2" color="black" face="Calibri"><span style="font-size:11.0pt;color:black">Bill Information:
<a href="https://app.leg.wa.gov/billsummary?BillNumber=5408&year=2021">Washington State Legislature</a>
</span></font><o:p></o:p></p>
<p class="MsoNormal" style="background:white"><font size="2" color="black" face="Calibri"><span style="font-size:11.0pt;color:black">Passed Senate 46-2</span></font><o:p></o:p></p>
<p class="MsoNormal" style="background:white"><o:p> </o:p></p>
<p class="Default"><font size="2" color="black" face="Calibri"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">RCW 6.13.030 is amended as:<o:p></o:p></span></font></p>
<p class="Default"><u><font size="2" color="black" face="Calibri"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">(1) The homestead exemption amount is the greater of: <o:p></o:p></span></font></u></p>
<p class="Default" style="margin-left:.5in"><u><font size="2" color="black" face="Calibri"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">(a) $125,000; [or]<o:p></o:p></span></font></u></p>
<p class="Default" style="margin-left:.5in"><u><font size="2" color="black" face="Calibri"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">(b) The county median sale price of a single-family home in the preceding calendar year; …<o:p></o:p></span></font></u></p>
<p class="Default"><u><font size="2" color="black" face="Calibri"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">(2) In determining the county median sale price of a single-family home in the preceding year, a court shall use data from the
Runstad department of real estate at the University of Washington or, if the Runstad department no longer provides the data, a successor entity designated by the office of financial management.
<o:p></o:p></span></font></u></p>
<p class="Default"><font size="2" color="black" face="Calibri"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">
</span></font><font size="2" face="Calibri"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"><o:p></o:p></span></font></p>
<p class="Default"><font size="2" color="black" face="Calibri"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">RCW 6.13.010 is amended as:<o:p></o:p></span></font></p>
<p class="Default"><font size="2" color="black" face="Calibri"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">(1) The homestead consists of real or personal property that the owner
<u>or a dependent of the owner</u> uses as a residence. <o:p></o:p></span></font></p>
<p class="Default"><font size="2" color="black" face="Calibri"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">(2) (d)
<u>"Dependent" has the meaning given in Title 11 U.S.C. Sec. 522(a)(1)</u>.<o:p></o:p></span></font></p>
<p class="Default"><font size="2" color="black" face="Calibri"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"><o:p> </o:p></span></font></p>
<p class="Default"><font size="3" color="black" face="Courier New PSMT"><span style="font-size:12.0pt"><o:p> </o:p></span></font></p>
<p class="Default"><font size="2" color="black" face="Calibri"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">The bill report refers to these two bankruptcy cases:<o:p></o:p></span></font></p>
<p class="MsoNormal" style="background:white"><i><font size="2" color="black" face="Calibri"><span style="font-size:11.0pt;color:black;font-style:italic">In re Good</span></font></i><font color="black"><span style="color:black">, 588 B.R. 573 (Bankr. W.D. Wash.
2018)<span style="background:white"> (Bankruptcy sale of debtors' homestead property by Chapter 7 trustee was in nature of “forced sale,” that did not trigger obligation on part of debtors to timely reinvest exempt sales proceeds in order to maintain their
exempt character for more than one year following sale). </span><i><span style="font-style:italic">Wilson v. Rigby</span></i>, 909 F.3d 306 (9th Cir. 2018)<span style="background:white"> (While each state is entitled to set the parameters of the homestead
exemption that debtor may claim, in all cases, debtor is limited to the value that may lawfully be claimed under state law on petition date).<o:p></o:p></span></span></font></p>
<p class="MsoNormal" style="background:white"><font size="2" color="black" face="Calibri"><span style="font-size:11.0pt;color:black;background:white"><o:p> </o:p></span></font></p>
<p class="MsoNormal" style="text-autospace:none"><font size="2" color="black" face="Calibri"><span style="font-size:11.0pt;color:black;background:white">The engrossed bill report is telling: “</span></font><font size="3" color="#212529" face="Times"><span style="font-size:12.0pt;font-family:"Times",serif;color:#212529">Staff
Summary of Public Testimony on Original Bill:<b><span style="font-weight:bold"> </span>
</b><i><span style="font-style:italic">The committee recommended a different version of the bill than what was heard.</span></i>”<o:p></o:p></span></font></p>
<p class="MsoNormal"><font size="2" face="Calibri"><span style="font-size:11.0pt"><o:p> </o:p></span></font></p>
<p class="MsoNormal"><font size="4" color="#1f497d" face="Arial"><span style="font-size:13.0pt;font-family:"Arial",sans-serif;color:#1F497D">Rod Harmon</span></font><o:p></o:p></p>
<p class="MsoNormal"><b><font size="4" color="#1f497d" face="Arial"><span style="font-size:13.0pt;font-family:"Arial",sans-serif;color:#1F497D;font-weight:bold"> </span></font></b><o:p></o:p></p>
<p class="MsoNormal"><b><font size="4" color="#1f497d" face="Arial"><span style="font-size:13.0pt;font-family:"Arial",sans-serif;color:#1F497D;font-weight:bold">RODNEY T. HARMON</span></font></b><o:p></o:p></p>
<p class="MsoNormal"><b><font size="2" color="#1f497d" face="Arial"><span style="font-size:11.0pt;font-family:"Arial",sans-serif;color:#1F497D;font-weight:bold"> Attorney at Law</span></font></b><o:p></o:p></p>
<p class="MsoNormal"><font size="2" color="#1f497d" face="Arial"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D"> P.O. Box 1066</span></font><o:p></o:p></p>
<p class="MsoNormal"><font size="2" color="#1f497d" face="Arial"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D"> Bothell, WA 98041</span></font><o:p></o:p></p>
<p class="MsoNormal"><font size="2" color="#1f497d" face="Arial"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D"> Tel: (425) 402-7800</span></font><o:p></o:p></p>
<p class="MsoNormal"><font size="2" color="#1f497d" face="Arial"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D"> Fax: (425) 458-9096</span></font><o:p></o:p></p>
<p class="MsoNormal"><font size="2" color="#1f497d" face="Arial"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D"> <a href="http://www.rodharmon.com">www.rodharmon.com</a></span></font><o:p></o:p></p>
<p class="MsoNormal"><font size="2" color="#1f497d" face="Arial"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D"> <a href="mailto:rodharmon@msn.com">rodharmon@msn.com</a></span></font><o:p></o:p></p>
<p class="MsoNormal" style="margin-top:6.0pt"><font size="2" face="Calibri"><span style="font-size:11.0pt"><o:p> </o:p></span></font></p>
<p class="MsoNormal"><font size="2" face="Calibri"><span style="font-size:11.0pt"><o:p> </o:p></span></font></p>
<p class="MsoNormal" style="background:white"><font size="3" color="black" face="Arial"><span style="font-size:12.0pt;font-family:"Arial",sans-serif;color:black"><o:p> </o:p></span></font></p>
<p class="MsoNormal" style="background:white"><font size="2" color="black" face="Calibri"><span style="font-size:11.0pt;color:black"><o:p> </o:p></span></font></p>
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