Homestead Act of 1839
- The state of Texas passed the 1839 Homestead Act in direct reaction to the Panic of 1837, a depression that economically ruined people of all classes, especially in the American South. The law addressed the need for the state to protect impoverished people, especially women with children, from becoming homeless.
- The idea of a social safety net partially has its origins in the Texas Homestead Act of 1839, one of the first instances of a state protecting its citizens from the effects of extreme poverty. Homestead exemption is currently codified into law today in one form or another in all states except Rhode Island and Pennsylvania. In 2010, homestead exemptions vary widely from state to state, ranging from full protection of the home, to the protection of a certain number of acres, or the protection of a specified amount of home equity per owner, calculated from the assessed value of the property.
- The idea of protecting the home from forced sale due to unpaid debt or taxes has particular resonance in the tough recessionary times of 2010. "U.S. home foreclosures have reached a record high in the second quarter of 2010," reported the "Los Angeles Times." Current homestead exemption laws can completely protect a primary residence from foreclosure, thus preventing homelessness, or provide only a limited amount of home equity protection, doing little to keep people from living on the streets.