What AB 130 Means for California HOAs

California’s Assembly Bill 130, signed into law on June 30, 2025, went into effect immediately—making major changes to HOA enforcement under Civil Code §§ 5850 and 5855 (Epsten, APC).

🔍 What AB 130 Means for California HOAs

1. $100 Cap on Fines per Violation

• HOAs cannot fine more than $100 for any single violation.

• This cap applies unless there’s an adverse health or safety impact on the common area or another homeowner’s property, in which case higher fines are permitted (avantonerealestate.com).

2. Health & Safety Exception

• To exceed the $100 cap, the board must make a written finding, in an open board meeting, explicitly describing the adverse health or safety impact.

• This exception applies strictly to impacts on property, not people — a limitation highlighted by legal analysts (cacm.org).

3. Right to Cure Before Discipline

• A violator must be given an opportunity to fix the issue before a hearing.

• If the violation is cured before the hearing, no fine may be imposed.

• If curing takes longer than the notice‑hearing period, the homeowner may provide a “financial commitment” to cure the issue instead, and avoid fines (Epsten, APC, igerwankel.com, cacm.org).

4. Ban on Interest or Late Charges

• HOAs cannot charge late fees or interest on unpaid fines—only the capped amount applies (cacm.org, davis-stirling.com).

5. Disciplinary Hearing & Dispute Process

• Post‑hearing, if the member and board disagree, the owner may request Internal Dispute Resolution (IDR).

• If they agree, both must sign a written resolution, which is judicially enforceable.

• Boards must provide hearing results within 14 days (reduced from the previous 15‑day requirement) (HOA Lawyer Blog).

  
  

⚖️ Why It Matters

For Homeowners

• Limits on fines offer more predictability and fairness.

• Encourages homeowners to address issues proactively to avoid fines.

For HOAs

• Dramatically reduces flexibility in enforcing CC&Rs—particularly for serious or repeated violations (e.g. unauthorized short‑term rentals or unapproved construction).

• Without the ability to escalate fines meaningfully, HOAs may resort more often to litigation or other enforcement mechanisms (HOA Lawyer Blog, igerwankel.com, cacm.org).

• Existing fine schedules and enforcement policies will likely need revision to comply with the new statute.

Legislative Context

• The fine cap was inserted into a broader housing affordability package with no public hearings, sparking concern among associations and prompting potential override efforts in future legislative sessions (HOA Lawyer Blog, krigerschuber.com).

  
  

📋 Summary Table

Aspect	Before AB 130	After AB 130
Maximum Fine per Violation	As per HOA schedule	$100, unless health/safety impacts ⇒ board finding
Interest / Late Fee	Allowed per policy	Prohibited
Right to Cure	Varies by policy	Must allow cure or financial commitment prior to hearing
Hearing Notice Timing	15 days to notify	14 days
Dispute Resolution	Less defined	IDR if no agreement; written binding resolution if agreed

✅ What HOAs Should Do Next

• Review and revise your association’s enforcement rules and monetary penalty schedules to conform to the new $100 cap.

• Identify CC&Rs or rules tied to health or safety risks and ensure your rules justify fines above $100 via open‑meeting board findings.

• Update your disciplinary hearing policies to reflect the right to cure and change the notice deadline to 14 days.

• Circulate updates promptly—changes conforming to law typically don’t require a full 28‑day rule‑change process but should still be documented and communicated (krigerschuber.com, roattorneys.com, cacm.org, Freeman Mathis & Gary, roattorneys.com, igerwankel.com).

• Consult legal counsel, especially if you intend to fine above $100 under the new exception.

  
  

🧭 Final Thoughts

AB 130 overhauls the HOA discipline landscape in California by limiting most violations to a $100 fine, eliminating interest on penalties, and significantly expanding homeowners’ ability to cure issues before facing fines. For boards, this means carefully crafted policies, well‑documented procedures, and attention to rule language to preserve enforcement within these new limits.