AB 130 Changes How HOAs Handle Fines
Reality Check
California lawmakers recently passed AB 130, and it isn’t just legislative wallpaper-it changes how HOAs like ours can issue and collect fines for rule violations. This law amends Civil Code § 5855, and that means a few big shifts in how we enforce community rules here in Eastridge Hills.
What’s Different Now?
- Fines are capped. Unless there’s a proven health or safety issue, the maximum fine is now $100 per violation.
- No interest or late fees on fines. That parking ticket or fence-height penalty won’t rack up monthly “interest.” You pay the fine, you’re done.
- Due process matters. Before any fine is issued, the HOA must send written notice, give homeowners a chance to respond, and provide a written decision after the hearing.
What’s Not Changing?
Your regular HOA dues and special assessments follow different rules – they’re governed by Civil Code § 5650.
- If dues or special assessments are paid late, the HOA can still apply a late fee (up to 10% of the delinquent amount or $10, whichever is greater) and interest (up to 12% annually) until the balance is paid.
- Translation: AB 130 doesn’t give anyone a free pass on dues.
Why Does This Matter to You?
This law draws a clear line: disciplinary fines are one thing, assessment payments are another. Homeowners now get more transparency and fairness when facing fines . . . but skipping dues? That still has financial teeth.
Call to Action
- Stay informed. The Eastridge Hills HOA will update our Fine Policy to reflect these new limits and procedures.
- Stay current. Pay your HOA dues on time-those late fees and interest charges still apply under the old rules.
- Stay connected. If you receive any notice of a potential fine, expect more structure: a notice, a hearing, and a written decision-by law.
Bottom line: AB 130 is about fairness and accountability. It makes sure rule enforcement is balanced and transparent, while keeping the HOA financially healthy.
- Eastridge Hills HOA
