New California law caps HOA fines, sparks confusion
California’s new law caps HOA fines at $100 and bans late fees to curb abuse and strengthen due process, but vague rules on repeat violations and enforcement are fueling confusion
CARLSBAD — A new state law capping homeowner association fines at $100 per violation is sparking confusion and pushback as some boards explore new enforcement tactics.
Assembly Bill 130, signed by Gov. Gavin Newsom last summer, aims to rein in excessive HOA fines and strengthen due process. But critics say unclear language on repeat violations and enforcement loopholes could lead to more lawsuits and strained community relations.
The law also prohibits late fees and interest, but some associations are finding new ways to fine homeowners, according to reports. In addition, AB 130 allows for virtual meetings without requiring a physical location, proper notice of meetings, time for public speakers, and ensuring HOA meetings comply with existing public meeting laws and record-keeping rules.
Other provisions require due process with written notice, an opportunity to cure, and a hearing before any fine is levied; although higher fines are allowed if a violation poses a health or safety risk, according to the law. Any fine above $100 must be justified in an open meeting with written findings.
However, one Carlsbad homeowner said her association, the Carlsbad Woodbridge Association, and its legal team attempted to pass a measure approving more aggressive fines for various new violations. The law was signed by Gov. Gavin Newsom on June 30, 2025, and enacted on July 1, 2025.
At least 100 homes are part of the association, which is tucked away at Hosp Grove across from The Shoppes at Carlsbad.
Olga Workman, who immigrated from Russia to the U.S. 30 years ago, said she first became aware of AB 130 from a letter sent by her HOA in November outlining new fines. The letter states the board would vote on the issue during its Dec. 18 meeting.
She called them excessive and “harassment” as some of the fines reach $5,000 for minimal “violations.”
“According to what the HOA told us, some lawyers crafted the letter,” Workman added. “At the same time, the HOA apologized for making an impression that the letter presents information as if it was already in action. I have a lot of questions about who crafted this letter. It doesn’t read like a letter written by a legal professional.”
