New California Law Restricts HOA Fines to $100 per Violation – AB 130

The world has been shaken by California’s HOA. On June 30, 2025, the Assembly Bill 130 (AB 130) was signed, with an effective date immediately, which places a hard cap of $100 per violation on most HOA fines. 

Many homeowners and tenants are partying, which they consider a victory with no more jaw-dropping $500 or $1,000 penalties. 

However, there is a bigger, less publicized impact beneath the surface. One of the strongest enforcement tools HOAs and landlords had was the law strips. 

HOA violations may no longer create a substantial financial strain without the large fines, which makes them harder to use as an influence in eviction or obedience cases. 

This change could signal the beginning of more relaxed enforcement, whether residents want it or not, for the communities that have strict rules and uniformity. 

“I have seen the worst of the worst and HOAs fine thousands of dollars and foreclose on those homes,” said Edward Susolik, CEO and president of Callahan & Blaine, who represents both homeowners and HOAs. “Generally speaking, that seems reasonable to bring that down because that is one of the biggest issues living in California, because HOAs have very broad powers to enforce their rules.”

What changed under AB 130?

California’s Civil Code §§ 5850 and 5855 is amended by AB 130, which reshapes how the HOAs discipline the members for rule violations. The $100 per violation cap is the most significant change, which is applicable to almost all the governing document breaches. 

The law also-

• There will be no prohibited late fees or interest on fines.
• Before the fines are imposed, requires an opportunity to cure. 
• To cure in certain situations, allows boards to accept a financial commitment.
• For delivering hearing decisions from 15 to 14 days, which shortens the deadlines. 

The $100 Fine Cap

Previously, for repeat or severe violations, escalating fines of $250, $500, or even $1,000 were common. These amounts emerged as a powerful deterrent. However, as of now, there are most violations, no matter how disruptive, are restricted to $100 per occurrence. 

While some residents may welcome the smaller fines, boards that warn about removing the key deterrent and thus making the chronic violations more affordable to commit.

“We were in active negotiations with Sen. Wahab’s staff and actually provided amendments to the pro tem’s office as well. What we were promoting was greater transparency and notice when fines take place at associations and avoiding a cap at all,” said Louis Brown, an attorney who represents HOAs with the Community Associations Institute. “We were very surprised when the language showed up in AB 130.”

The Health & Safety Exception

When a violation results in an adverse health or safety impact on the community, AB 130 allows fines of over $100. 

To qualify-

At an open meeting, the board must adopt written findings.

The finding can be done per violation or by making a list of eligible violations in advance.

The listed examples are included-

• The dangerous or aggressive pets.
• A hazardous construction on a property.
• The short-term rentals bring unfamiliar guests or disrupt the security.
• The loud parties in high-density buildings impact the well-being and sleep.

The keyword is “may”—a potential risk is enough if documented correctly.

“Our concern about violation fines in the past is that there has been no procedure for determining if a violation has occurred,” said Marjorie Murray, an advocate for homeowners with the Center for California Homeowner Association Law. “The board tells the homeowner they’re guilty until the homeowner proves their innocence.”

SNAPSHOT Table: New California law restricts HOA fines to $100 per violation

Rule	Summary
Fine Limit	Max $100 per violation
Exception	More allowed only if there’s a health/safety risk, with written board findings.
Late Fees	No late fees or interest allowed
Right to Fix	Homeowners must get a chance to cure the violation before being fined.
Hearing Notice	The board must notify the decision within 14 days of the hearing.
Past Fines	Law does not affect fines imposed before June 30, 2025

Due-Process Requirements

HOAs must do the following under AB 130-

• Before hearing, give 10 days’ written notice.
• Within 14 days, deliver the written hearing decisions. 
• On fines, remove the late fee or interest provisions.
• The member should be allowed to cure the violation or to offer a financial commitment to cure. 

Impact on Landlords and Evictions

The reality is that in certain landlord-tenant disputes, the lower fines mean less legal leverage.

For repeated violations, an HOA could impose substantial fines before AB 130. The cost can support the landlord to exhibit the significant financial harm in the eviction cases. That financial impact is minimal, now at $100 per violation.

In HOA-governed communities, the shift eases pressure on tenants, which makes the eviction based on HOA violation more difficult. For owners, the outcome is fewer tools to report challenging occupants when HOA obedience is at stake.

“The days of homeowner’s associations telling you that your garage door needs to be painted might be over,” said Susolik, the attorney who has represented homeowners and HOA boards. “That’s probably a good thing.”

What HOA Should Do Now?

The board should follow the listed steps to stay effective and compliant.

• To reflect the $100 cap, revise the fine schedules.
• From governing documents, remove the late fee or interest provisions.
• On the new requirements, educate board members and managers. 
• For qualifying violations, adopt health and safety findings in an open meeting.
• For the opportunity to cure and a 14-day decision deadline, update the hearing procedures. 

“You don’t have the leverage anymore to get people to change bad behavior,” Zepponi said. A neighbor who leaves their RV parked on the driveway in violation of association rules might just eat the $100 rather than pay for more expensive RV storage, he said.

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