AB 130 Signed Into Law

The legislature passed immediate amendments to Sections 5850 and 5855 of the California Civil Code, enacted through Assembly Bill 130, which was signed into law by Governor Newsom on June 30, 2025. Due to the nature of this legislative process, these changes are effective immediately and, among other things, place a cap on association fines of $100 per violation, except for violations relating to health and safety. 

Section 5850 Amendments

Limitation on Monetary Penalties: 

Penalties are capped at the lesser of the association’s stated fine schedule or $100 per violation. The only exception is when the violation may have adverse health or safety impact on the common area or another association member's property. In those cases, penalties may exceed $100. However, to impose a health and safety related fine in excess of $100, the board must make a written finding specifying the adverse health or safety impact in a board meeting open to the members. 

No Late Charges: 

Members cannot be charged late fees or interest on these penalties. 

Section 5855 Amendments

Opportunity to Cure Violations: 

Members have the opportunity to cure violations before a hearing, and the board cannot impose any discipline if the violation is cured before the hearing. Furthermore, the board may not impose discipline if curing the violation would require more time than the period between the notice of the hearing and the hearing itself, and if, prior to the hearing, the owner makes a financial commitment to cure the violation. 

Internal Dispute Resolution: 

If the board and the member are not in agreement after the hearing, a member shall have the opportunity to request internal dispute resolution. If after the dispute resolution meeting the board and the member are in agreement, the board must draft a written resolution. The written resolution, signed by the board and the member of the dispute binds the association and is judicially enforceable as long as it is not in conflict with the law or the association’s governing documents. 

Notification of Discipline: 

The period to provide written notification of any imposed discipline or charges is reduced from 15 days to 14 days. 

Conclusion

We recognize that some of these changes are significant and will limit an association's ability to deter violations with fines. However, boards must continue their efforts to enforce the governing documents through all available means. Enforcement efforts should include requesting a member to attend a meeting with the board via the association's internal dispute resolution process, sending letters from legal counsel advising the owner of the violation, requesting alternative dispute resolution such as mediation, and, where appropriate, filing a civil suit and seeking an injunction to require compliance with the governing documents and recover attorney's fees. Boards and managers should also consult with counsel to determine if updating the association's fine and enforcement policy to align with the new law is prudent, along with any additional suggestions to enhance the association's ability to enforce its governing documents.