Actually that "homestead" thing does ring a bell with me. I was always getting something in the mail about it but didn't really understand it until I read an article in the paper about it.
Basically its supposed to help homeowners with their property tax payments. But it seems to be a little bit more complicated than that. Although the article doesn't spell out 100% clearly about what this homestead act thing is - they encourage homeowners to fill it out and send it in.
Personally I haven't done it yet because I want to know more about it first!