New California law has imposed significant and immediate changes concerning the authority of homeowners’ associations to impose fines for violations of their governing documents. On June 30, 2025, California Governor Gavin Newsom signed AB 130 into law. While most of the language in AB 130 deals with matters unrelated to homeowners’ associations, the bill included language that amends the Davis Stirling Common Interest Development Act and makes significant changes to how homeowners’ associations may impose fines for violations of their governing documents.
Critically, because AB 130 is a budget bill, it is effective immediately.
We understand that keeping up with legislative changes can be challenging, and our goal is to help associations navigate these new requirements seamlessly to ensure continued compliance and effective community governance.
What Are the Key Changes to Homeowners’ Association Fining Authority?
AB 130 introduces substantial modifications ostensibly designed to further bolster homeowner due process and enforces a strict cap on the amounts of fines which boards may impose for most violations. While there are myriad changes that have been made to Civil Code Sections 5850 and 5855 of the Davis-Stirling Act, the most pertinent and pressing changes that require immediate attention are as follows:
- Association Fines Capped at $100 for Most Violations:
- Civil Code Section 5850(c) now provides that the maximum fine an association can impose for a violation is $100.
- This cap applies unless a specific exception (detailed below) applies.
- Exception for “Adverse Health or Safety Impact”:
- The board may impose a penalty stated in the schedule of monetary penalties, or a supplement thereto, that is in effect at the time of the violation that is greater than one hundred dollars ($100) per violation, if the violation may result in an adverse health or safety impact on the common area or another association member’s property.
- Before imposing a fine in excess of $100 under this health and safety exception, the board must first make a written finding specifying the adverse health or safety impact in a board meeting that is open to the members. This finding must clearly articulate the specific risk or danger posed by the violation; however, given that it must be made in an open meeting, identifying information concerning individuals subject to disciplinary proceedings should not be revealed.
- Mandatory Opportunity to Cure Violation:
- Civil Code Section 5855(c) has been amended to now state that, before imposing any discipline, including fines, a board must provide the member with an opportunity to cure the violation prior to the disciplinary hearing.
- Additionally, if the member cures the violation before the disciplinary hearing, or if curing the violation would take longer than the notice period and the member provides financial commitment to cure the violation, such as a signed contract or paid deposit for repairs, then no fine or discipline can be imposed.
- This requirement for an opportunity to cure has likely invalidated daily or automatic reoccurring fines for a continuing violation.
- Shortened Notification of Decision:
- New Civil Code Section 5855(f) has also shortened the timeframe for the board to provide written notification of its hearing decision from fifteen (15) days to fourteen (14) days following the board’s action.
Recommendation: Review and Update Enforcement and Fine Policies
To ensure compliance with the new law, we strongly advise that associations review their enforcement and fine policies and seek legal advice concerning the need to amend same. Policies may need to be amended to reflect the $100 maximum fine amount for most violations, as well as new hearing and notice procedural requirements and the prohibition against charging late fees or interest on fines. As the current fine schedule must be included in the annual disclosures for residential associations, boards should endeavor to amend the fine policy, following a 28-day general notice to members, prior to the annual disclosure deadline, so that the new policy may be included therein. Changes to the enforcement and fine policy after the disclosure will require individual notice to members.
Roseman Law is Here to Help
We are committed to helping our clients navigate these important legislative changes. Our team is fully up to date on the new requirements and is ready to assist you. Email us at info@roseman.law for a flat fee proposal to update your enforcement and fine policy to comply with the new law.
