A significant legislative change in California now limits homeowners association (HOA) fines to just $100 per violation, down from penalties that previously reached thousands of dollars. Effective July 1, 2025, this cap was included in Assembly Bill 130 to protect California’s middle- and low-income residents from excessive financial burdens. The law also prohibits additional late fees or interest charges, with exceptions only for health and safety violations.
The legislation has sparked mixed reactions across California’s 50,000+ HOAs governing approximately 65% of homeowners. While advocates celebrate protection from devastating fines and foreclosure, HOA board members worry the reduced penalty may weaken enforcement and increase noncompliance. Edward Susolik of Callahan & Blaine suggests this could positively reshape how associations approach minor violations, though some fear it may force reliance on costly legal action.
Source: CalMatters
