California AB 130: HOA Fines Capped at $100 — What Homeowners Need to Know

If you own a home in a California HOA, you just got a major new protection. Assembly Bill 130 (AB 130), signed by Governor Newsom and effective June 30, 2025, caps HOA fines at $100 per violation for non-safety issues. No more $500 fines for a misplaced trash can. No more $1,000 penalties for unapproved paint colors.

This is one of the most significant HOA reforms in California history. Combined with the SB 326 balcony inspection deadline that passed in January 2025, California homeowners are entering 2026 with substantially stronger protections than they had a year ago.

Here's exactly what changed, what it means for your existing fines, and how to use these new protections in your defense.

AB 130 amends the Davis-Stirling Common Interest Development Act (California Civil Code §4000–6150) to impose a hard cap on what HOAs can fine homeowners for non-safety violations.

Key Provisions

• $100 maximum fine per violation for non-safety issues
• Safety violations are exempt — but the board must make a written finding at an open meeting that the violation poses a genuine safety threat before imposing a higher fine
• No late fees or interest on fines — AB 130 also prohibits associations from adding late charges or accruing interest on fine balances
• Effective date: June 30, 2025 — applies to all fines imposed after this date

What Counts as "Non-Safety"?

The vast majority of common HOA violations are non-safety: landscaping, architectural changes, parking, decorations, noise, outdoor furniture, paint colors, holiday lights, and similar aesthetic or lifestyle issues. Under AB 130, all of these are subject to the $100 cap.

Safety violations — like blocking fire lanes, creating structural hazards, or maintaining dangerous conditions — can still carry higher fines. But the board can't simply label any violation "safety" to circumvent the cap. They must make a formal written finding at an open board meeting explaining why the specific violation poses a safety risk.

AB 130 applies to fines imposed after June 30, 2025. Fines levied before that date are governed by the law that was in effect when they were imposed.

However, if your HOA is currently trying to collect on an old fine, or if daily fines were accumulating and continued past the effective date, there's a strong argument that any amounts accruing after June 30, 2025 must comply with the new cap. Additionally, the prohibition on late fees and interest applies going forward — your HOA cannot add new late charges to any fine balance after the effective date.

If you're dealing with a fine that predates AB 130, you can still use other defenses: selective enforcement, due process violations, failure to follow CC&R procedures, or state-mandated hearing rights.

SB 326 (Civil Code §5551) is the other major California HOA law affecting homeowners in 2026. It required condominium associations with buildings containing 3+ multifamily units to complete inspections of all exterior elevated elements — balconies, decks, walkways, stairways — by January 1, 2025.

What You Should Know

• The deadline has passed — the January 1, 2025 deadline was NOT extended (unlike SB 721 for rental properties, which was extended to 2026 by AB 2579)
• Non-compliant HOAs face penalties up to $500 per day from local enforcement agencies
• Repair requirements: If inspections reveal safety issues, the association must complete repairs within a specific timeline
• This may trigger special assessments: Many condo associations are levying special assessments to fund inspection costs and resulting repairs

How SB 326 Affects You

If your condo HOA hasn't completed the required inspections, the board may be in violation of state law. If they try to fine you for a balcony modification while they're non-compliant with inspection requirements, that's a strong defense. And if they levy a special assessment for inspections and repairs, you have the right to demand transparency about costs and challenge procedural defects.

If your California HOA has fined you more than $100 for a non-safety violation since June 30, 2025, here's exactly what to do:

Step 1: Identify the Violation Category

Confirm your violation is non-safety (landscaping, architectural, parking, noise, decorations, etc.). If the board claims it's a safety violation, demand the written finding made at an open board meeting. Without that finding, they can't exceed the $100 cap.

Step 2: Calculate the Correct Fine

Under AB 130, the maximum is $100 per violation. If you were fined $500, the legal maximum is $100. Also check for late fees or interest — AB 130 prohibits both on fine balances.

Step 3: Send a Written Response

Use certified mail to notify your board that the fine exceeds the statutory maximum under AB 130. Cite "California Civil Code, as amended by AB 130" and request the fine be reduced to the legal maximum or dismissed entirely. Use our dispute letter templates to structure your response.

Step 4: Request a Hearing

California law already requires HOAs to offer a hearing before imposing fines (Civil Code §5855). If your HOA skipped the hearing, the fine is likely void regardless of AB 130. Exercise your homeowner rights and demand the hearing.

Step 5: Escalate If Needed

If the board refuses to comply with AB 130, your options include: filing a complaint with the California Department of Real Estate, pursuing mediation or arbitration (required before litigation under Civ. Code §5930), or consulting an HOA attorney. Given the clear statutory cap, most boards will comply rather than risk litigation they'll lose.

Common questions about California's 2026 HOA law changes: