Your Fine Policy May Be Unenforceable as of June 30, 2025
California HOA boards face an urgent compliance challenge following the immediate implementation of Assembly Bill 130. This legislation fundamentally restricts your association’s ability to impose meaningful fines for governing document violations, creating enforcement gaps that could undermine community standards.
What Every Board Member Must Know About AB 130
Immediate $100 Fine Ceiling – Your association can no longer impose fines exceeding $100 for most violations, regardless of what your current governing documents authorize. This cap applies to all enforcement actions taken after June 30, 2025, making many existing fine schedules legally unenforceable.Limited Exception Creates Complex – Requirements The only pathway to exceed the $100 limit involves proving a violation creates “adverse health or safety impact” on common areas or other members’ property. However, this exception requires:
• Public documentation of specific health/safety risks during open board meetings
• Formal written findings that become part of official meeting minutes
• Potential exposure of sensitive member information to the entire community
• Members must receive explicit opportunities to remedy violations before hearings
• Boards face a compressed 14-day window to provide violation decisions (reduced from 15 days)
• Failed compliance with notification timelines automatically voids enforcement actions
• Members gain expanded rights to request internal dispute resolution
The Real-World Impact on Your Community
Wealthy Owners May Ignore Rules – In upscale communities, $100 fines become insignificant business expenses. Owners operating unauthorized vacation rentals or pursuing unpermitted modifications can simply budget for minimal fines while continuing violations.
Privacy Concerns in Health/Safety Cases – Consider scenarios requiring health/safety exceptions: noise violations affecting elderly residents, secondhand smoke impacting families with children, or pet waste creating sanitation hazards. Boards must now publicly discuss these sensitive situations in open meetings, potentially exposing the association to privacy complaints or defamation risks.
Enforcement Becomes Administrative Burden – The compressed timeline and expanded procedural requirements mean more staff time, detailed documentation, and formal processes for every violation—while the financial deterrent effect diminishes significantly.
Board Action Required: Policy Review and Revision
Immediate Compliance Steps:
-
• Audit Your Current Fine Schedule – Review every monetary penalty in your existing policies. Fines exceeding $100 must be reduced immediately unless your board can demonstrate clear health/safety justification requiring public disclosure.
• Revise Enforcement Procedures – Update your violation process to include mandatory cure opportunities, shortened notification windows, and expanded dispute resolution options. Document these changes formally through board resolution.
• Assess Alternative Enforcement Tools – With reduced fine effectiveness, explore other compliance mechanisms: privilege suspensions, architectural review modifications, or expedited legal remedies for serious violations.
• Train Board Members – Ensure directors understand when health/safety exceptions apply, how to document required findings, and the risks associated with public disclosure of sensitive information.
AB 130’s complexity extends beyond simple fine adjustments. The legislation intersects with your association’s specific governing documents, insurance coverage, and member relations policies. Attempting to navigate these changes without experienced legal guidance creates several risks:
• Unenforceable policies that waste board time and resources
• Procedural errors that void legitimate enforcement actions
• Legal exposure from improper handling of health/safety exceptions
• Member challenges to revised policies lacking proper legal foundation
Take Action Now: Schedule Your Policy Review
Don’t let AB 130 render your community’s enforcement efforts ineffective. Our experienced HOA legal team provides comprehensive policy review services specifically designed for California associations navigating these new requirements.
Our AB 130 Compliance Services Include:
• Complete fine policy audit and revision
• Enforcement procedure updates aligned with new timelines
• Board training on health/safety exception protocols
• Alternative enforcement strategy development
• Ongoing compliance monitoring and support
Time is critical—every day your association operates under non-compliant policies creates potential legal exposure and enforcement challenges. Let our expertise guide your board through these complex changes while preserving your community’s standards.
Call (949) 729-8002 or email us to schedule your consultation.
Your community’s enforcement effectiveness depends on immediate action. Don’t navigate AB 130’s requirements alone—partner with legal professionals who understand California HOA law and can protect your association’s interests.
This analysis provides general information about California AB 130 and its impact on HOA operations. Every association’s situation involves unique factors requiring individualized legal advice. Contact our office for consultation specific to your community’s needs and governing documents.