On June 30, 2025, Governor Newsom signed Assembly Bill 130 into law, enacting significant changes to homeowners association enforcement rules under the Davis-Stirling Act. While AB 130 primarily aims to streamline housing development by easing California Environmental Quality Act (CEQA) regulations, it also introduces critical amendments to Civil Code Sections 5850, 5855, and 714.3, fundamentally altering HOA fine caps and enforcement procedures.

AB 130 limits association fines for most governing document violations to a maximum of $100 per violation or less, as adopted by the association’s fine schedule. This cap became effective immediately and prohibits imposing fines in excess of $100 unless the violation “may result in an adverse health or safety impact on the common area or another association member’s property.” To apply this exception, the Board must make a written finding at an open meeting describing the adverse health or safety impact.

AB 130 also requires that no disciplinary action may be taken if the violating association member cures the violation before the hearing. Where curing the violation requires more time than the notice period before the hearing, members must provide a “financial commitment” to remedy the violation. While the statute does not define this term, HOAs may impose a fine and suspend its enforcement pending a reasonable time to cure.