On June 30, 2025, Governor Newsom signed Assembly Bill 130 into law, enacting significant changes to homeowners association enforcement rules under the Davis-Stirling Act. While AB 130 primarily aims to streamline housing development by easing California Environmental Quality Act (CEQA) regulations, it also introduces critical amendments to Civil Code Sections 5850, 5855, and 714.3, fundamentally altering HOA fine caps and enforcement procedures.
AB 130 limits association fines for most governing document violations to a maximum of $100 per violation or less, as adopted by the association’s fine schedule. This cap became effective immediately and prohibits imposing fines in excess of $100 unless the violation “may result in an adverse health or safety impact on the common area or another association member’s property.” To apply this exception, the Board must make a written finding at an open meeting describing the adverse health or safety impact.
AB 130 also requires that no disciplinary action may be taken if the violating association member cures the violation before the hearing. Where curing the violation requires more time than the notice period before the hearing, members must provide a “financial commitment” to remedy the violation. While the statute does not define this term, HOAs may impose a fine and suspend its enforcement pending a reasonable time to cure.
Additionally, associations may no longer charge late fees or interest on imposed fines. Importantly, fines imposed prior to June 30, 2025, are unaffected by AB 130’s new rules and remain enforceable.
California hosts over 50,000 HOAs, encompassing nearly 4.7 million homes—more than one-third of Californians live in HOA communities, according to The California Association of Homeowners Associations. Given this reach, AB 130’s new $100 fine cap and enforcement regulations will have a widespread effect. The restriction will significantly limit an association’s ability to enforce governing documents effectively, especially in cases involving costly unauthorized improvements, short-term rental violations, or other high-impact infractions where the risk of non-compliance outweighs the cost of the fine.
Following this immediate enactment of AB 130, HOAs should promptly conduct a thorough review of current rules and fine schedules to identify potential health or safety-related violations. Associations should adopt clear written resolutions or rule amendments categorizing specific violations, such as speeding, glass hazards at the pool, or aggressive pets, as health or safety hazards, therefore qualifying for fines above $100.
AB 130 immediately changes how California HOAs can impose and enforce fines, capping fines at $100 per violation. While the health and safety exception offers some flexibility, the new $100 fine cap will substantially limit the ability of common interest developments to deter high-risk, high-reward violations by reducing the financial consequences for non-compliance. Timely policy updates and legal guidance will be essential for associations seeking to maintain effective enforcement under the new law.
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