AB 130 and the New $100 Limit on HOA Fines, Problem Solved or Created? Time Will Tell

An important tool in the proper operation of homeowners’ associations in California is the ability of associations to impose fines on owners when their actions, or those of their tenants or guests, violate the association’s rules. When used properly, this tool undoubtedly has helped countless associations to manage and discourage a variety of undesirable activity in a commonly owned building, such as loud or noisy behavior, poorly supervised pets, smoking in common areas, and the like.

The problem, however, arose when reasonable fines were not sufficient to curb the issue at hand. Associations were forced to make a difficult choice between tolerating the behavior, playing a seemingly endless game of ‘whack-a-mole,’ or considering expensive and time-consuming legal action. Many faced with that Hobson’s Choice elected to impose an escalating fine schedule instead, imposing penalties of thousands of dollars, sometimes many thousands of dollars. But that rarely solved the problem, as it only foisted the situation onto the hands of individual owners, who were often unable to pay the amounts in question or to easily address the problems themselves. Likely in response, the California legislature chose to weigh in.

What is AB 130?

Effective June 30, 2025, AB 130 took effect, modifying the Civil Code to provide that California homeowners associations may only impose fines for such conduct of $100 per violation or less. The new rule does provide an exception where the “violation may result in an adverse health or safety impact on the common area or another association member’s property.” That broad exception may enable associations to continue undeterred with much higher penalties, as they did before. But the new rule will undoubtedly have a real impact on these situations moving forward. Whether that is a good or bad thing, we shall have to wait and see.

Contact a San Francisco Real Estate Lawyer Today

For assistance with or questions about your homeowner’s association, you may contact Scott A. Freedman at Zacks & Freedman, PC for guidance. Contact us at your convenience to request a consultation.

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