New Law Caps HOA Fines for Homeowner Violations
A last-minute addition to AB 130 resulted in a substantial change to an HOA’s power to fine homeowners. This change, which amended Civil Code § 5850 effective July 1, 2025, caps the amount that an HOA can fine a homeowner at $100 unless the violation results in an “adverse health or safety impact on the common area or another association member’s property.” In cases where there is a potential adverse health or safety impact, the HOA board must make a written finding describing the adverse health or safety impact during an open board meeting. The bill also amended Civil Code § 5855 to allow the violating member an opportunity to cure the infraction and precludes the board from implementing the fine if the member either cures the violation prior to the meeting or, if curing would take longer than the time between the notice and the meeting, the member provides a “financial commitment” to cure the violation.
Proponents of the change argue that these new additions to the Davis-Stirling Act will reign in HOAs that, they claim, have for far too long operated with unfettered power using inter alia fines to bend communities to their will. Opponents of the change point to the fact that fines are not a money making tool for the HOA but, rather, a tool to deter behavior that runs afoul of an HOAs governing documents. There is growing concern that these changes may incentivize homeowners to incur the relatively mild $100 fine in favor of operating on their own outside of a community’s rules and regulations. For example, many communities require a homeowner to follow architectural guidelines and obtain approval from an Architectural Committee before making substantial changes to their property, which may include anything from paint color to substantial additions to a dwelling. Now, homeowners may opt to forego architectural approval, which can sometimes be time consuming and cumbersome, and instead simply pay the $100 fine.
The full scope of the implications of AB 130 are not yet known; however, it is safe to say that the new law may have unintended consequences. What exactly constitutes an “adverse health or safety impact” warranting an increased fine remains largely unsettled and is sure to be a hot topic in the coming months and years. Moreover, while no homeowner wants to pay fines to their HOA, homeowners also do not want to live in a community where their HOA is powerless to stop a neighbor erecting a fence that may block a view or fail to maintain their property resulting in a decrease in property values.
As experienced HOA attorneys, the Blake Law Firm is prepared to consult with you on these changes to an HOA fine structure and any other HOA-related questions that you may have.