On June 30, 2025, Governor Newsom signed Assembly Bill 130, which made significant modifications to the California Environmental Quality Act (“CEQA”) but also dramatically changed the landscape for HOAs. While CEQA reforms received much of the immediate attention because of their impact on housing development and statewide policy, AB 130’s HOA provisions are likely to have a day-to-day effect for many California residents.
Homeowners’ associations or HOAs have become a dominant feature of the modern housing market, shaping both what communities look like and how people experience homeownership. According to CalMatters and Census Bureau data, 67% of all new single-family homes built in 2024 nationwide were in communities with HOAs, and California residents paid a median of $278 in monthly fees, among the highest in the nation. In many parts of California, buying into an HOA is the default for new homeowners, meaning that HOA obligations and limitations now operate along with more traditional obligations of property ownership.
HOAs in California are formed through private agreements but they exercise authority that directly affects how people use their homes and common areas in their neighborhoods or condominiums. HOAs exist through recorded declarations of covenants, conditions, and restrictions, along with bylaws and rules. HOAs are generally governed by HOA boards, which have the power to make sure their rules are followed, and to impose fines on homeowners who do not follow those rules.
HOAs can govern a wide range of issues, including whether a homeowner may repaint a door, change landscaping, install solar panels, renovate a kitchen, rent out a unit, replace windows, park in a particular spot, or even keep certain items visible from the street. In many communities, HOAs also control access to shared amenities and impose mandatory monthly assessments.
AB 130 operates within the Davis-Stirling Common Interest Development Act (the “Act”), which provides the statutory foundation for HOA governance statewide. The Act governs elections, assessments, meetings, records, and enforcement authority. It was designed to create uniformity and predictability within the HOA governance system, and to provide a mechanism for homeowners to appeal certain HOA actions.
AB 130 is a significant addition to the structure under the Act. AB 130 sets limits to the enforcement authority of HOAs. Enforcement actions, in which an HOA can levy fines or impose compliance demands on homeowners, are one of the most common sources of HOA conflict. Disputes frequently arise over architectural rules, landscaping requirements, alleged noise violations, pet restrictions, use limitations, or maintenance standards. Historically, these enforcement disputes often turned on informal practices and managerial discretion by the HOA, giving HOAs wide latitude in enforcing regulations.
AB 130 creates additional due process rights for homeowners in enforcement actions by their HOA and sets a limit on the amount of fines that can be imposed. Under the statute, an HOA generally cannot assess a fine of more than $100 per violation, except for health and safety regulations.
The fee cap means that an HOA cannot use the threat of fines as a significant source of financial leverage against homeowners to ensure enforcement. HOA proponents claim that this cap on fines may result in homeowners choosing to ignore the rules because they can only be fined once for a maximum of $100. If a violation threatens health or safety, higher fines may still be permitted, but the association must have a defensible basis for that conclusion and must make required findings.
Additionally, HOAs must give homeowners a meaningful opportunity to cure violations before they can impose any fines or take other disciplinary action. At least 10 days before any meeting to assess a fine, the HOA must notify the homeowner in writing, and provide the meeting’s date, time, location, and the nature of the violation and requested fine. Homeowners have the right to attend the meeting and speak to the HOA board.
If a homeowner cures the violation before the meeting, the HOA cannot discipline the homeowner or impose any fine. If curing the violation would take longer than the time between the notice provided and the meeting, the homeowner makes a financial commitment to cure the violation, and if they do so, the HOA may not assess a fine or take any other disciplinary action.
After a meeting, if the homeowner and HOA reach an agreement, they must create a written resolution signed by both parties, which is enforceable in court as long as it is consistent with the HOA’s governing documents and the law. If the homeowner and HOA do not agree, and the HOA imposes discipline or charges a fine, the board has to provide written notification of the decision within 14 days.
AB 130 formalizes the process for HOA fees and fines and gives homeowners more due process opportunities to cure or challenge fines. Additionally, the cap on fines of $100 for the same violation limits an HOA’s ability to use fines as a hammer to ensure compliance with rules. The statute’s impact is especially relevant in communities with high property values and complex developments. In these communities, associations frequently oversee architectural standards, renovation approvals, and use restrictions.
At its core, AB 130 rebalances the power between homeowner and HOA by making enforcement harder to impose quickly and more difficult to use as leverage. In communities where HOA rules meaningfully affect renovations, aesthetics, and the day-to-day experience of living at home, the changes will have a significant impact.
