NEWS

California Cracks Down on Excessive HOA Fines: A New Era of Fairness for Homeowners

In a significant win for homeowner rights, California has enacted a game-changing law that limits how much homeowners associations (HOAs) can fine their members. Under Assembly Bill 130, which took effect July 1, 2025, HOAs across the state are now restricted to issuing no more than $100 in fines per violation—a stark contrast to the previously unchecked, often escalating penalties that left many homeowners feeling powerless and financially burdened.

The state recognized a troubling pattern: enforcement being used as a weapon, not a tool for community well-being. What began as an effort to uphold neighborhood standards had, in some cases, morphed into selective punishment, retaliation, and financial intimidation.

💥 Why This Matters

HOAs were once meant to maintain order and community standards, but in many cases, enforcement turned punitive. Some associations handed out fines of $250, $500, or even daily accruing penalties that skyrocketed into thousands of dollars—often over issues as minor as fence color, garden gnomes, or a slightly overgrown bush.

This new legislation reins in those practices, restoring balance and fairness to the enforcement process and ensuring that homeowners are no longer subjected to arbitrary or abusive financial penalties.

🔍 What AB 130 Says

  • $100 Maximum Fine: For any violation, an HOA cannot fine more than $100, or whatever lesser amount is already stated in the association’s adopted fine schedule.
  • No Daily Accumulation: Daily fines are effectively capped. For example, a $20/day fine over five days would violate the law if the total exceeded $100—unless a health or safety risk is formally documented.
  • No Late Fees or Interest: Unpaid fines can no longer accrue additional financial penalties. This protects homeowners from compounding debt and encourages timely resolution over punishment.
  • Health and Safety Exception: If a violation poses a risk to health or safety, an HOA may exceed the $100 limit—but only if the board makes a written finding in an open meeting.
  • Mandatory Hearing and Notice: Homeowners must be notified and given a chance to address or correct the issue before any fine is imposed. Final decisions must be sent in writing within 14 days of the hearing.
  • Dispute Resolution Option: Homeowners retain the right to challenge fines through internal dispute resolution (IDR), providing a legal avenue to question unfair enforcement.

🛠️ How This Impacts HOAs

Boards must now:

  • Revise enforcement policies and fine schedules to comply with the law.
  • Train staff and volunteers to ensure all violation letters and fines follow proper legal procedure.
  • Hold open meetings and provide clear documentation when invoking the health and safety exception.
  • Avoid blanket fine policies or vague justifications that could invite legal challenges.

Empowering Homeowners

For California homeowners, this law levels the playing field. It prevents abuse, restores transparency, and affirms that communities must be managed with respect, not fear. If you’ve received a fine exceeding $100 without a formal health or safety justification, you may have legal grounds to contest it.

✅ Final Takeaway

Assembly Bill 130 marks a turning point in HOA governance, signaling that California will no longer tolerate excessive or opaque fine practices. It’s a call to HOAs to enforce with integrity—and a reminder that communities are built on trust, not intimidation.

This reform sends a strong message: California communities must be governed with fairness, accountability, and respect. Punishing residents into silence or submission is no longer acceptable. The law now stands with the people who call these neighborhoods home.

If you live in an HOA, now is the time to review your fine policies, educate your board, and empower your neighbors with knowledge of their rights. The days of unchecked fines are over. Fairness has finally been codified into law.

The law is a message to all HOAs that impose fines that are excessive.

Homeowners’ associations exist to preserve shared values and protect the common good, not to intimidate, penalize, or profit from those you are meant to serve. Rules are necessary, but enforcement must always be reasonable, respectful, and transparent. When fines become excessive, selectively applied, or used as a control tool, trust erodes and communities suffer. Exceptions were given for health or safety reasons.  But  fines or covenants affecting a community’s health or the environment are unjust and immoral.