Sacramento Report: Californians Get a Break from HOAs

California homeowners are getting relief from excessive HOA fines through a new state law that caps penalties at $100 per violation, unless public health or safety is at risk. The legislation also prohibits associations from continuously adding late fees and extra penalties—a move lawmakers say will help low- and middle-income homeowners in areas like San Diego, where HOA fees can run into hundreds of dollars on top of already high housing costs.

The regulations address growing concerns as 71 percent of new single-family homes built in 2024 in the western United States are within HOA communities. While HOA representatives worry the cap will limit rule enforcement, attorneys representing homeowners argue it prevents abuse and overreach. Legal experts say the law levels the playing field by removing threats of catastrophic fines and encouraging productive dispute resolution without costly litigation.

Source: CalMatters