The Civil War removed the slavery issue because the Southern states had seceded from the Union. A homestead exemption reduces the amount of property taxes homeowners owe on their legal residence.The homestead act helped americans buy their way into the american dream and independently build up wealth through land ownership. By June, the land had been allocated to 40,000 of a total of 4 million freed slaves. The Southern Homestead Act was initiated to help former slaves gain their own land. Primary Sources that Document Enslaved and Free Persons of Color.