As of July 1, 2025, a new law changes how California HOAs can fine homeowners for rule violations.
Assembly Bill 130 (AB 130) introduces a $100 HOA fine limit, aiming to create fairness and consistency in enforcement, but it also brings new challenges for HOA boards. Understanding this law is essential for staying compliant and protecting your community.
In this blog, we’ll explain the new law, what’s changed, why it’s controversial, and what actions your board should take now.
AB 130 is a California law that directly amends the Davis-Stirling Common Interest Development Act—specifically Civil Code §§ 5850 and 5855.
The law took effect on July 1, 2025, meaning HOAs across California should already be operating in full compliance with the updated rules.
AB 130 aims to prevent excessive fines and ensure homeowners are given a fair opportunity to resolve issues before being penalized. It reflects growing concerns from homeowners about transparency and fairness in HOA governance.
AB 130 brings several important changes that affect how your HOA can issue and manage fines. Understanding each provision will help your board stay compliant.
One of the most important changes is that monetary fines are now capped at $100 per violation. This applies to most rule violations in HOA communities.
There is one major exception: health or safety-related violations.
If the board makes written findings showing a rule violation endangers residents’ health or safety, the $100 cap does not apply. However, this must be clearly documented.
California HOAs can no longer add interest, late fees, or additional charges to unpaid fines. The penalty stops at $100, even if the homeowner delays payment.
This is a big shift from previous practices, where escalating fines could apply for repeat offenses or non-payment.
Before a fine can be imposed, California homeowners must be given a chance to fix (or “cure”) the issue. This could include fixing a landscaping violation or removing an unauthorized structure.
HOA boards in California must document this opportunity and give members clear communication about what needs to be corrected.
The law also updates hearing procedures:
These updates promote due process but require boards to stay organized and timely in their responses.
While the intent behind AB 130 is to protect homeowners, many HOA boards are concerned about the practical effects. Here are the reasons this new law has sparked debate across HOA communities in California.
A flat $100 fine may not be enough to deter repeat violations. Previously, some boards used escalating fines as a tool to enforce compliance, especially for persistent issues like noise complaints, pet violations, or short-term rentals.
California homeowners who don’t take rules seriously might now view the $100 fine as a minor inconvenience. This could lead to more frequent or repeated violations, increasing strain on HOA members and property managers.
Many communities have detailed enforcement procedures written into their Covenants, Conditions, and Restrictions (CC&Rs). AB 130 limits how HOA boards in California can act, even if their governing documents allow stronger penalties.
Since this law is new, it may take time before the courts interpret it clearly. Until then, boards must operate in a legal gray area, which increases the risk of disputes or litigation.
Your board needs to take proactive steps to comply with AB 130 and avoid legal issues. Here are some actions you can take to stay compliant and protect your community.
The law requires HOA boards to annually distribute their enforcement and fine policies to members. This means your board must decide:
Either way, boards must ensure policies reflect the new law and are easy for homeowners to understand.
This is a great time to work with professionals who understand the details of HOA law and can help you avoid costly mistakes.
At Hignell HOA, we help boards:
If you’re unsure how AB 130 affects your community, we’re here to help.
As with many new laws, AB 130 could evolve.
Legal experts expect future court cases or new legislation to clarify parts of the law or address its challenges. For now, staying flexible, monitoring developments, and documenting your enforcement actions is essential.
AB 130 is a big change for California HOAs. It’s designed to protect homeowners, but it also limits how your board can operate. To avoid enforcement problems, legal risk, and community confusion, you need a clear, updated policy—and the right support behind you.
At Hignell HOA, we’ve helped hundreds of boards adapt to new laws and build stronger, more compliant communities. Our team brings decades of experience in HOA management, governance, and HOA Accounting. Let’s talk about your fine schedule and enforcement policy. We’ll help you understand current laws, make necessary changes, and communicate those changes to your members with confidence.
Contact us today to schedule your free HOA consultation.