California HOA rules changed significantly on July 1, 2025

Many homeowners in HOA communities are dissatisfied with how HOAs are managed. While certain state laws do require compliance, the most recent change has been introduced to provide stronger support for homeowners.

on July 1, 2025, with the immediate effectiveness of Assembly Bill 130 (AB 130), which amended the Davis-Stirling Act to restrict HOA enforcement powers. Key changes include a $100 fine cap per violation, a ban on late fees or interest on fines,expanded homeowners rights to cure violations, and a requirement for written findings to justify higher fines for health and safety issues.

Key Changes under AB 130

  • $100 Fine Cap: Fines are capped at $100 per violation, though this can be exceeded if the violation poses a documented health or safety risk. 
  • Health and Safety JustificationFor fines over $100, the board must make a written finding of an adverse health or safety impact during an open meeting. 
  • No Late Fees or InterestAssociations are prohibited from charging late fees or interest on monetary penalties. 
  • Expanded “Right to Cure”Members must be given an opportunity to correct violations before disciplinary action, and they can provide a financial commitment to cure if more time is needed. 
  • Enhanced Dispute ResolutionMembers have the right to request Internal Dispute Resolution (IDR) if no agreement is reached after a hearing. 
  • Expedited Hearing ResultsBoards must provide hearing results within 14 days of the meeting. 

Why These Changes Matter

  • Balance of Power: The law shifts the balance of power by providing more protections and rights to homeowners. 
  • Fairness: It aims to prevent excessive or unfair fines and ensures greater transparency in the enforcement process.

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photo credit to Steadily

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