California HOA fines are capped at $100 — and owners get to cure first
California HOA fines are capped at $100 — and owners get to cure first
2026-09-09 · California · Compliance
The most consequential change to California homeowners association enforcement in a decade arrived inside a housing budget bill, took effect the day it was signed, and is still being applied incorrectly.
AB 130 was chaptered as Chapter 22, Statutes of 2025 on June 30, 2025. Because it was an urgency budget measure, it took effect immediately — not on the following January 1, which is where boards working from a “new laws for 2026” summary will have looked for it.1
It rewrote Civil Code sections 5850 and 5855, the provisions that govern monetary penalties and disciplinary hearings.
The cap
New section 5850(c): a monetary penalty “shall not exceed the lesser of” the amount in the association's published penalty schedule in effect at the time of the violation, or $100 per violation.2
“The lesser of” matters. An association whose schedule sets a $50 fine for a violation cannot charge $100; the schedule still binds it downward.
The exception has a procedure attached
Section 5850(d) permits a penalty above $100 only where the violation “may result in an adverse health or safety impact on the common area or another association member's property.”
And the board “shall make a written finding specifying the adverse health or safety impact in a board meeting open to the members” — before imposing it. The finding is not something a board can supply afterwards if the fine is challenged, and it cannot be made in executive session.
No late fees, no interest
Section 5850(e) is one sentence: “A late charge or interest shall not be charged to a member for a monetary penalty.”
Section 5850(f) requires the association to give any member, on request, a copy of the most recently distributed penalty schedule plus supplements.
The cure right
New section 5855(c) is the provision boards most often miss: “A member shall have the opportunity to cure the violation prior to the meeting.”
The board shall not impose discipline if the member cures before the meeting — or, where a cure would take longer than the gap between the 10-day notice and the meeting, if the member “provides financial commitment to cure.”3
Keep reading with the California State Pass
The rest of this analysis — what an association can actually do, the recent bills and rulings, and how California compares nationally — is for subscribers. $49/month for every California topic on HOA Weekly.
$49/month, $449/year, or a $19.99 day pass.
What you unlock
- What it changes for boards and managers
- The settlement provision worth using
- One deadline moved by a day, and it will catch people
and 1 more section in detail
Already a subscriber? Sign in
Recurring monthly subscription · Cancel anytime · Need help?
Related California HOA Topics
- AB 130, California Legislature — chaptered text and Legislative Counsel's Digest (Chapter 22, Statutes of 2025, effective June 30, 2025) ↩
- Civil Code § 5850, California Legislative Information — operative text of the $100 cap, the health and safety exception and the bar on late charges and interest ↩
- Civil Code § 5855, California Legislative Information — operative text of the cure opportunity, the binding written resolution and the 14-day notice ↩
- AB 2579, California Legislature — bill status showing the measure ordered to the inactive file on May 21, 2026 ↩
Stay on top of California HOA law
Every week: new California legislation, court rulings, and regulatory developments affecting condos, planned communities, and property managers. Free.
No spam. Unsubscribe anytime.