Boards are given considerable authority by the courts to enforce both their CC&R governing documents (Covenants, Conditions, and Restrictions) and their rules and regulations. Think of an association as a quasi-governmental agency. State legislatures pass laws that everyone in the state must follow. The city where the association is located can then pass its own laws, provided they do not conflict with state law. The board can go a step further and establish even stricter rules for its own community. For example, a city may permit overnight parking on all public streets, but an association may prohibit parking on streets within the community entirely and have the right to fine owners who violate that rule or tow the vehicle at the owner’s expense.
What Did HOA Fines Look Like Before AB 130?
Before Assembly Bill 130 passed in 2025, the amount of fines a board could levy was largely at its own discretion. Most boards were reasonable about the fines they charged owners who violated the rules, but others were excessive, and some boards even targeted owners they did not like. Fine amounts were not always reasonable but were at times vindictive. Prior to AB 130, the fine landscape looked like this:
- High board discretion: Boards had the authority to set their own fine schedules, allowing for high progressive, escalating penalties, ranging from $100 to $1,000, for repeat violations. In more affluent communities, fine amounts were sometimes set to match the perceived ability of owners to pay.
- No cap: There was no ceiling on penalties. The only limiting standard was “reasonableness,” a term that left considerable room for interpretation.
- Interest and late fees: Associations were permitted to charge interest and late fees on unpaid fines and could restrict an owner’s access to common areas, such as pools and tennis courts, until those fines were paid.
What Changed Under AB 130?
Effective June 30, 2025, Assembly Bill 130 brought significant changes to how HOA fines can be levied:
- A hard cap of $100: Regardless of the violation, fines are now capped at $100 or less, unless the violation involves a health and safety concern, such as parking in a fire lane.
- Health and safety exceptions: Fines exceeding $100 are only permitted for violations that pose a genuine threat to community health and safety, and the board must formally record this determination in an open meeting before the fine is charged.
- No interest or additional fees: Boards are no longer permitted to charge interest or additional fees on unpaid fines.
- Right to cure: Before any fine is imposed, the owner or member must be given the opportunity to correct, or “cure,” the violation.
How Can an Owner Fight an HOA Fine?
If an owner believes they are being improperly targeted for a fine, there are several steps they can take, roughly in order of escalation:
- Contact the management company: If an owner receives a warning that a fine may be issued, the first step is to reach out to the management company to understand the reason. Some owners are unaware of the rule they are allegedly violating or the specific language in the governing documents that applies.
- Speak at an open board meeting: As a member of the association, every owner has the right to address the board during the open forum portion of a board meeting. This is a good opportunity to discuss the alleged violation and propose a resolution before a fine is formally issued.
- Request Internal Dispute Resolution (IDR): If a fine has already been levied, the owner may request IDR. One or more board members will meet privately with the owner to discuss the situation and work toward a solution.
- Request Alternate Dispute Resolution (ADR): If IDR does not resolve the dispute, the owner may request ADR. A neutral third party is brought in to arbitrate, listens to both sides, and issues a binding ruling. Given that the cost of the arbitrator is shared equally by both parties and runs $500 to $1,000 per hour with a minimum commitment, this option is best reserved for significant monetary disputes.
- File a small claims case: An owner can file a claim for amounts under $12,500 at the local courthouse. Each side represents themselves, and a judge decides whether the association is entitled to collect the fine. Filing costs are minimal, though hearings can run up to three hours and are typically scheduled during business hours.
Is the Fight Over HOA Fines Really Settled?
AB 130 has reined in much of the abuse that came from boards arbitrarily and unjustly fining owners for perceived or real violations. However, management companies and the organizations that represent them, including the California Association of Community Managers (CACM) and the Community Associations Institute (CAI), are already pushing back. They argue that the $100 cap is too restrictive and may actually encourage owners to violate community rules. The logic is straightforward: if paying a $100 fine is cheaper than renting an RV storage space, some owners may simply choose to pay the fine and keep the RV parked on the street. The debate over what constitutes a fair and effective fine structure is far from over.
