AB 130 Disaster for HOAs in California

California recently enacted AB 130 which became effective on June 30, 2025. It is now California Civil Code Section 5855.

The law caps HOA fines to $100 per violation unless the violation involves “a significant and imminent threat to health or safety.” Unfortunately our brilliant state legislature has opened the door to litigation by not providing clear definitions of key terms. The result of the new law is to make it easier for those who violate CC&Rs and Operating Rules to do so without facing meaningful penalties. This may also be the intent of the law.

The new law is nearly certain to result in more violations of HOA CC&Rs and Operating Rules and it will undoubtedly cost associations more money to prevent these violations. Most HOAs will be required to rewrite most their rules at additional expense in order to comply.