AB 130 Explained: California’s New $100 HOA Fine Cap and What Boards Must Do Now

California’s HOA world has been shaken. Assembly Bill 130 (AB 130), signed June 30, 2025, and effective immediately, places a hard cap of $100 per violation on most HOA fines. Many homeowners and tenants are celebrating what they see as a victory—no more jaw-dropping $500 or $1,000 penalties.

But beneath the surface, there’s a bigger, less publicized impact: this law strips away one of the strongest enforcement tools HOAs and landlords had. Without large fines, HOA violations may no longer create a substantial financial burden—making them harder to use as leverage in eviction or compliance cases. For communities that value strict rules and uniformity, this change could signal the beginning of more relaxed enforcement… whether residents want it or not.

Key Takeaways

• $100 cap per violation for most HOA fines; no late fees or interest allowed.
• Health and safety exception allows higher fines if documented in an open meeting.
• Opportunity to cure required before issuing fines; “financial commitment” to cure allowed.
• Decision notices must be sent within 14 days of the hearing.
• Reduced fines weaken HOAs’ ability to support landlord eviction cases based on violations.
• Effective immediately as of June 30, 2025; prior fines remain valid.

Table of Contents

• What Changed Under AB 130
• The $100 Fine Cap
• The Health & Safety Exception
• Due-Process Requirements
• Impact on Landlords and Evictions
• What HOAs Should Do Now
• The Bigger Picture: Are HOAs Losing Control?
• Final Thoughts

What Changed Under AB 130

AB 130 amends California Civil Code §§ 5850 and 5855, reshaping how HOAs discipline members for rule violations. The most significant change is the $100 per violation cap, applicable to nearly all governing document breaches.

The law also:

• Prohibits late fees and interest on fines.
• Requires an opportunity to cure before fines are imposed.
• Allows boards to accept a financial commitment to cure in certain situations.
• Shortens the deadline for delivering hearing decisions from 15 to 14 days.

The $100 Fine Cap

Previously, escalating fines—$250, $500, even $1,000—were common for repeat or severe violations. These amounts acted as a powerful deterrent. Now, most violations, no matter how disruptive, are limited to $100 per occurrence.

While residents may welcome smaller fines, boards are warning this removes a key deterrent and makes chronic violations more affordable to commit.

The Health & Safety Exception

AB 130 does allow fines over $100 when a violation may result in an adverse health or safety impact on the community.

To qualify:

• The board must adopt written findings at an open meeting.
• Findings can be made per violation or by creating a list of qualifying violations in advance.

Examples include:

• Hazardous construction on a property.
• Aggressive or dangerous pets.
• Short-term rentals that disrupt security or bring unfamiliar guests.
• Loud parties in high-density buildings affecting sleep and wellbeing.

The keyword is “may”—a potential risk is enough if documented correctly.

Due-Process Requirements

Under AB 130, HOAs must:

• Give 10 days’ written notice before a hearing.
• Allow the member to cure the violation or provide a financial commitment to cure.
• Deliver written hearing decisions within 14 days.
• Remove any late fee or interest provisions on fines.

Impact on Landlords and Evictions

Here’s the overlooked reality: lower fines mean less legal leverage in certain landlord-tenant disputes.

Before AB 130, an HOA could impose substantial fines for repeated violations—costs that could help a landlord demonstrate significant financial harm in eviction cases. Now, at $100 per violation, that financial impact is minimal.

This shift eases pressure on tenants in HOA-governed communities, making eviction based on HOA violations more difficult. For landlords, the result is fewer tools to address problematic tenants when HOA compliance is at stake.

What HOAs Should Do Now

To stay compliant and effective, boards should:

1. Revise fine schedules to reflect the $100 cap.
2. Adopt health and safety findings in an open meeting for qualifying violations.
3. Update hearing procedures for the opportunity to cure and the 14-day decision deadline.
4. Remove late fee/interest provisions from governing documents.
5. Educate board members and managers on the new requirements.

The Bigger Picture: Are HOAs Losing Control?

For those who chose HOA communities for their order, uniformity, and strict standards, AB 130 poses a hard question: are we trading enforcement power for short-term relief?

Without meaningful financial consequences, chronic violators may feel emboldened. What happens when landscaping rules, parking restrictions, and noise limits become harder to enforce? Will the sense of community pride erode—or will boards find new, creative ways to maintain order?

This law demands forward thinking. If fines won’t ensure compliance, HOAs must turn to other enforcement tools: suspension of privileges, mediation, or even legal action where necessary.

Final Thoughts

AB 130 may be framed as a win for affordability and fairness, but its ripple effects reach deep into HOA governance, landlord rights, and community standards. The key now is adaptation—understanding the limits of the new law, documenting violations thoroughly, and using every lawful tool to preserve the integrity of HOA living.

Because in the end, it’s not about the fine—it’s about the community.Do you want me to now adapt this article so it’s written in your Widget’s Way voice, using the same professional tone but directly addressing Southern California HOAs and landlords with local examples? That would make it even more targeted for your audience.