Homeowners associations across California continue adjusting to caps imposed on HOA fines in the wake of Assembly Bill 130 (AB 130). Signed into law by Governor Gavin Newsom on June 30, 2025, and taking immediate effect, AB 130 places a $100 cap on HOA fines – although it’s important to note that this is on a per-violation basis. So, yes, there are still ways to rack up those HOA fines if you’re not mindful. Everyone, from homeowners to the board members of the homeowners associations themselves, needs to understand how the ins and outs of AB 130 significantly change the way community rules are upheld.
How AB 130 Caps HOA Fines
Formally, AB 130 changes aspects of the Davis-Stirling Common Interest Development Act, more specifically, sections 5850, 5855, and 714.3. But what does that mean in layman’s terms? Most notably, AB 130 caps the amount that homeowners associations can fine homeowners for community violations to a $100 maximum per violation. This puts a bit of a damper on how California HOAs can collect funding through fines, since prior to AB 130, an HOA could use fine scheduling to attach a higher cost to penalties.
Since the $100 cap on HOA fines is instituted on a per-violation basis, multiple violations can still quickly accrue into significant amounts. To reiterate, the $100 cap is not per day. It’s worth noting that repeated violations will incur additional $100 fines. AB 130 also stipulates that if a community violation infringes on health or safety, the HOA is within its rights to exceed the $100 HOA fines cap – as long as the HOA follows proper procedure.
Health and Safety Violations Standards of Procedure
To initiate a fine in excess of $100 for a health and safety violation, homeowners associations in California must first compose a written finding connecting a potential threat to health and safety stemming from the violation. This report can’t be put together behind closed doors. Rather, for full transparency, it must be made at an open board meeting.
Unfortunately, AB 130 doesn’t do us the courtesy of clearly defining an “adverse health or safety impact”, so there’s room for interpretation. Therefore, homeowners associations planning to invoke this aspect of the new law will want to cover themselves by clearly defining how the violation poses a direct threat to health and safety. HOAs may also want to offer actionable solutions to the violations.
The Cure for HOA Violations
Homeowners associations shouldn’t be too hasty with those fines. Under AB 130, homeowners are entitled to an “opportunity to cure” prior to fines being accrued. In addition, members can produce a financial commitment to correct a violation if the issue is not amended within the usual notice period preceding an HOA disciplinary hearing. The “cure first” approach to AB 130 underscores that the objective is to fix violations while keeping all parties smiling.
Additional Changes Under AB 130
The $100 cap on HOA fines ushered in by AB 130 earns the lion’s share of attention, but it is by no means the only change instituted by the law. Additional changes under AB 130 include:
- The deadline for notifying HOA members of hearing outcomes has been reduced from 15 days to 14 days.
- Members can also dispute HOA-instituted disciplinary action by requesting an internal dispute resolution (IDR)
- Homeowners associations are now prohibited from charging interest or late fees on any HOA fines.
Renewed Best Practices for Homeowners Associations
As a California law, HOA compliance with AB 130 is critical. Therefore, it’s important for homeowners associations to familiarize themselves with compliance best practices. These include:
- Reviewing and updating fine schedules and policies to reflect the $100 fine cap.
- Adhering to a clear process for identifying and documenting health and safety violations.
- Conforming to due process regulations, including cure periods and reduced deadlines for notices.
- Consulting legal professionals for additional clarity on AB 130’s more ambiguous points (such as what defines a “health and safety” violation).
Obviously, AB 130 was written with the protection of the homeowner in mind. But homeowners associations shouldn’t discount that, especially looking beyond the $100 cap on fines, this new law serves to more effectively repair and uphold community standards. Yet, homeowners and HOAs alike will now need to hold themselves to exacting standards of transparency and clear communication to ensure successful results.
With a brand that says as much as JohnHart’s, Senior Copywriter Seth Styles never finds himself at a loss for words. Responsible for maintaining the voice of the company, he spends each day drafting marketing materials, blogs, bios, and agent resources that speak from the company’s collective mind and Hart… errr, heart.
Having spent over a decade in creative roles across a variety of industries, Seth brings with him vast experience in SEO practices, digital marketing, and all manner of professional writing with particular strength in blogging, content creation, and brand building. Gratitude, passion, and sincerity remain core tenets of his unwavering work ethic. The landscape of the industry changes daily, paralleling JohnHart’s efforts to {re}define real estate, but Seth works to maintain the company’s consistent message while offering both agents and clients a new echelon of service.
When not preserving the JohnHart essence in stirring copy, Seth puts his efforts into writing and illustrating an ongoing series entitled The Death of Romance. In addition, he adores spending quality time with his girlfriend and Romeo (his long-haired chihuahua mix), watching ‘70s and ‘80s horror movies, and reading (with a particular penchant for Victorian horror novels and authors Yukio Mishima and Bret Easton Ellis). He also occasionally records music as the vocalist and songwriter for his glam rock band, Peppermint Pumpkin.
