AB-130: The Law That’s Making Bad HOAs Panic in California

In June, California passed AB-130, a groundbreaking HOA reform measure that’s sending shockwaves through bad homeowners associations. For years, many HOA disputes have stemmed from excessive fines, lack of due process, and an uneven balance of power between HOAs and homeowners. Now, AB-130 law in California is changing the game, empowering homeowners and putting strict limits on how far an HOA homeowners association can go.

This law isn’t just another small amendment to the Davis-Stirling Act; it’s a signal that Sacramento is listening to the voices of frustrated homeowners and finally taking steps to stand up to HOAs.

What Is AB-130?

AB-130 is a state law that was passed in June 2024, aimed at protecting homeowners from abusive or overreaching HOA enforcement practices. While many laws over the years have favored the HOA industry, this bill shifts momentum toward empowering homeowners and ensuring the law requires HOAs to follow a proper process.

The bill has three core elements:

- A $100 fine limit for HOA violations.

- Elimination of interest and late fees on homeowners association fines.

- Strengthened due process requirements before fines can be issued.

Why it matters: These changes curb the most common tactics bad HOAs have used to intimidate homeowners—escalating fines, piling on fees, and issuing penalties without notice.

The $100 Fine Limit: Ending Escalating Penalty Abuse

Before the AB-130 law in California, an HOA could start with a small fine, say $100 for a mailbox violation, and increase it to hundreds or even thousands of dollars, sometimes threatening foreclosure.

Now, the $100 fine limit stops that abuse cold.

Example:

- Before AB-130: $100 fine → $200 fine → $500 fine → $5,000 fine.

- After AB-130: $100 fine, period.

This change:

- Prevents financial intimidation.

- Protects homeowners from losing their homes over minor infractions.

- Forces HOAs to resolve disputes without turning fines into a revenue stream.

No More Interest or Late Fees on HOA Fines

The second key provision eliminates interest and late fees on homeowners association fines. In the past, these charges often doubled or tripled the original fine, making it harder for homeowners to catch up.

Now:

- Fines remain fixed at $100.

- No compounding interest.

- No “hidden” financial penalties that spiral out of control.

Due Process: The Law Requires HOAs to Follow a Proper Process

Perhaps the most important reform is the new requirement that the law requires HOAs to follow a proper process before issuing fines.

Under AB-130:

- Homeowners must be given written notice of the alleged violation.

- The HOA must allow time to correct the issue.

- The homeowner has the right to a hearing before the legislative body (the HOA board).

This closes the loophole where HOAs issued fines without notifying the owner, leaving them blindsided months later with massive penalties.

Why Bad HOAs Are Panicking

For years, abusive HOAs have relied on unchecked authority to issue large fines, add interest, and skip due process. AB-130 dismantles those tools.

Now, boards that once acted as unchecked enforcers must operate within tight limits, follow legal notice procedures, and prove violations before collecting money.

This is a direct win for:

- Ownership housing residents in residential units governed by an HOA.

- Regional housing communities are struggling with unfair HOA practices.

- Homeowners are concerned about property values and fair treatment.

How AB-130 Fits into the Bigger Picture of HOA Reform

AB-130 is part of a growing movement in California to hold HOAs accountable. Similar to post-tragedy reforms in Florida’s condo laws, this bill shows that lawmakers recognize the need for change before disasters or widespread injustice occur.

The law aligns with California’s state-mandated local program approach, ensuring rules are enforced at the community level while protecting homeowner rights statewide.

Empowering Homeowners: Practical Steps to Use AB-130 to Your Advantage

With AB-130 law in California now in effect, homeowners can take proactive steps to protect themselves:

1.  Learn the Rules

- Request a copy of your HOA’s governing documents and enforcement policies.

- Understand how fines were handled before and after the new law.

2. Keep Written Records

- Document all HOA communications, especially regarding violations.

- Save letters, emails, and meeting notices.

3. Attend Board Meetings

- Hold the legislative body accountable for following the law requires HOAs to follow a proper process.

4. Challenge Improper Fines

- If you receive a fine above $100, demand a correction citing AB-130.

- Contact an experienced HOA attorney if the HOA refuses to comply.

By following these steps, you can ensure the $100 fine limit and due process requirements are enforced in your community.

AB-130 and the Bigger Housing Context

While AB-130 focuses on HOA governance, it also intersects with California’s housing policy goals, including:

- Preserving affordable sales price protections in ownership housing developments.
- Ensuring fair treatment across regional housing markets.
- Supporting equitable enforcement in private neighborhoods and neighborhood associations.

By preventing abusive fines and guaranteeing due process, the law indirectly supports property values and stability in residential units statewide.

Why You Might Still Need an HOA Attorney

Even with AB-130 in place, some HOAs will try to skirt the rules. When that happens, a skilled HOA attorney can:

- Enforce your rights under the AB-130 law in California.
- Represent you in HOA disputes involving improper fines or process violations.
- Help you navigate your governing documents and local ordinances.
- Guide you through dispute resolution before litigation.

Remember: Laws are only effective if enforced—and sometimes, that requires legal action.

Take Action Today!

If your HOA is ignoring AB-130 law in California or violating your rights, LS Carlson Law can help. Our experienced HOA attorneys specialize in defending homeowners, enforcing the $100 fine limit, and ensuring that the law requires HOAs to follow a proper process. Contact us now to protect your property, your finances, and your peace of mind.