HOA boards fume as California limits fees to $100 per violation

A new California law that took effect July 1, 2025, caps homeowners association (HOA) fines at $100 per violation and eliminates late fees and interest charges. The legislation aims to protect middle- and low-income residents during the state’s affordability crisis, offering relief to millions of Californians who previously faced fines ranging from hundreds to thousands of dollars for HOA rule violations.

While homeowners celebrate the change, HOA boards express concern that the cap will weaken their enforcement authority. Edward Susolik of Callahan & Blaine, who represents both homeowners and HOAs, notes the law will eliminate extreme cases where boards imposed excessive fines as retaliation, including instances where HOAs fined thousands of dollars and even foreclosed on homes. The elimination of late fees and interest charges further reduces the financial pressure HOAs can place on residents.