Imagine getting a $500 fine for leaving a trash bin out one day too long. That was a real possibility for millions of California homeowners before July 2025.
Since California AB 130 took effect, HOA fines are capped at $100 per violation for most HOA rule violations. The law also bans late fees and interest on unpaid fines, and gives homeowners the right to fix a violation before any penalty applies.
This article breaks down exactly what changed, what the exceptions are, and what your board needs to do now to stay compliant with your HOA’s governing documents and enforcement procedures.
Important: this content cannot be considered as legal advice. This is provided solely for informational purposes. If you have any questions, we advise you to contact your community’s attorney.
Understanding California AB 130
The California AB 130 was signed into law on June 30, 2025, and took effect immediately. Beyond its housing provisions, the law amends the Davis-Stirling Act, specifically Civil Code Sections 5850 and 5855, which govern HOA enforcement procedures.
The law caps fines for most governing document violations at $100 per violation, or less, as set by the association’s fine schedule. Fines issued before June 30, 2025, are not affected and remain valid.
One practical consequence boards often overlook: if your current fine schedule lists amounts above $100, that schedule is now out of compliance. Boards should revise it and make the updated version available to all homeowners.
Curing the violations
Beyond the $100 cap, AB 130 requires associations to give homeowners a chance to correct a violation before any fine or disciplinary action applies. This is called the “cure” process, and it changes how boards must handle enforcement.
Before scheduling a disciplinary hearing, the HOA must notify the homeowner in writing of the meeting’s date, time, location, and the nature of the violation. A clear HOA communication plan makes this step easier to manage consistently. With Neigbrs by Vinteum, you can send violation notices directly to a homeowner’s phone or computer. Book a free demo to see how it works.
Homeowners have the right to attend the hearing and present their case. If fixing the violation requires more time than the notice period allows, the homeowner must provide a written financial commitment to resolve the issue.
If the homeowner corrects the violation at least 7 days before the hearing, the board must cancel the meeting and cannot impose any fine. If the violation is corrected after that window but before the hearing begins, the board still cannot impose disciplinary action.
This process does introduce some gray areas. Take HOA parking violations as an example: if a resident parks in a restricted area but moves the car before the hearing, attorneys disagree on whether that counts as a true cure. When in doubt, consult your community’s attorney.
Exceptions under AB 130
The $100 cap does not apply to every violation. Boards can impose fines above $100 when a violation poses a risk to the health or safety of residents.
To apply this exception, the board must make a written finding during an open meeting that documents the specific health or safety risk. Without that written record, the exception does not hold.
Violations that may qualify as a health or safety risk include:
- Loud parties in high-rise buildings that consistently disrupt residents’ sleep.
- Failure to restrain an aggressive animal with a documented history of biting.
- Construction or renovation work that affects the building’s structural stability.
- Hazardous materials stored in unauthorized locations or blocked fire clearance areas.
The violation does not need to have already caused harm. A documented potential risk can be enough, as long as the board records its finding in the meeting minutes.
How to write a valid health and safety finding:
Attach supporting evidence where possible, such as photos, inspection reports, or prior notices.
Boards that skip this documentation step risk having the fine challenged and overturned. Review your most common HOA violations to identify which ones in your community could meet this threshold.
- State the specific violation and the date it was observed.
- Describe the potential risk to residents in plain, concrete terms.
- Reference the relevant section of the association’s governing documents or fine schedule.
- Record the finding as a motion, voted on and approved during an open board meeting.
What happens after the hearing?
If the homeowner and the board reach an agreement at the disciplinary hearing, both parties must sign a written resolution. This document should be kept on file and shared with the homeowner as proof of the outcome.
The HOA must provide written notice of its decision within 14 days of the hearing, regardless of the outcome. Missing this deadline can weaken the board’s position if the homeowner later disputes the fine.
If the homeowner disagrees with the decision, they can request Internal Dispute Resolution (IDR) under Civil Code Section 5910. IDR is a structured, low-cost process that gives both sides a chance to reach a resolution without going to court. Boards unfamiliar with the process should review the rules for calling an HOA emergency board meeting, as some IDR timelines may require fast action.
If IDR does not resolve the dispute, the homeowner can escalate to Alternative Dispute Resolution (ADR) or pursue the matter in small claims court. At that stage, having clean documentation from every step is critical: the notice, the hearing, the written finding, and the 14-day decision letter.
What the $100 Cap Means for HOA Revenue?
Some boards worry that the $100 cap will hurt the association’s finances. That concern is understandable, but fines were never meant to be a reliable revenue source.
Under the Davis-Stirling Act, HOA fines are an enforcement tool, not a budget line. Associations that relied on high fines to cover operating costs were already on shaky financial ground. A healthy HOA balance sheet depends on assessments, reserves, and sound planning, not on penalty income.
What the cap does change is the cost of non-compliance for repeat violators. A $100 fine may feel minor to a homeowner who repeatedly breaks the rules. This is exactly why AB 130 allows each uncorrected day to be treated as a separate violation, each carrying its own $100 fine, as long as your enforcement policy explicitly states that.
Boards that update their fine schedules now, and document them clearly, will have more consistent enforcement than boards that relied on large one-time fines. A well-run HOA audit is a good starting point to identify where your current policy has gaps.
Frequently Asked Questions
What is California AB 130?
California AB 130 is a state law signed on June 30, 2025, that caps HOA fines at $100 per violation for most governing document violations. It also bans late fees and interest on unpaid fines, and requires associations to give homeowners a chance to correct a violation before any fine applies. The law amends Civil Code Sections 5850 and 5855 of the Davis-Stirling Act.
When did AB 130 take effect?
AB 130 took effect on June 30, 2025, the same day it was signed into law. Fines issued before that date are not affected by the new rules and remain valid.
What is the new law for HOA fines in California?
Under AB 130, most HOA fines in California are now capped at $100 per violation. Boards cannot charge late fees or interest on unpaid fines. The only exception is for violations that pose a documented health or safety risk, which may be fined above $100 with proper written board approval.
What is the AB 130 exemption?
AB 130 allows boards to exceed the $100 cap for violations that pose a risk to health or safety. To apply this exception, the board must make a written finding during an open meeting that documents the specific risk. Without that written record, the exception does not apply. Consult your community’s attorney to determine whether a specific violation qualifies.
What are the new HOA laws in California in 2026?
AB 130 remains the most significant recent change to HOA enforcement rules in California. As of 2026, boards must comply with the $100 fine cap, the cure process before hearings, and the 14-day written notice requirement after a disciplinary decision. Boards that have not yet updated their fine schedules should do so and make the revised version available to all homeowners.
What is the most common HOA violation?
The most common HOA violations include parking infractions, landscaping issues, noise complaints, and unapproved modifications to units or common areas. Under AB 130, all of these are subject to the $100 fine cap unless they meet the health and safety exception. You can find a full breakdown in our guide to the 7 most common HOA violations.
Are daily fines allowed under AB 130?
AB 130 states the $100 limit applies per violation, not per day. Daily fines are not automatically allowed. That said, a board can treat each uncorrected day as a separate violation if the association’s enforcement policy explicitly states that. Update your fine schedule to make this clear and remove any ambiguity.
Your Next Steps
California AB 130 is not a future concern. It has been in effect since June 2025, and boards that have not updated their policies are already out of compliance.
Start with these four actions:
- Revise your fine schedule to reflect the $100 cap and explicitly state that each uncorrected day counts as a separate violation.
- Adopt a health and safety resolution listing violations that qualify for fines above $100, with documented board approval for each.
- Update your enforcement process to include the written cure notice, the hearing procedure, and the 14-day decision letter.
- Share all revised documents with homeowners to make your enforcement policy clear and consistent.
Need a second set of eyes on your current policies? A formal HOA audit can help your board identify exactly where your documents need updating before a dispute arises.
Once your policies are in order, the next step is making sure homeowners actually receive notices, updates, and decisions on time. Neigbrs by Vinteum centralizes violation tracking, document storage, and resident communication in one place. See how it works with a free demo.
