New California law restricts HOA fines to $100 per violation
12 hours ago
- #California law
- #HOA regulations
- #homeowner rights
- New California law caps HOA fines at $100, eliminating late fees and accumulating penalties.
- Law aims to protect middle- and low-income residents from exorbitant fines amid affordability crisis.
- HOAs worry the cap limits their authority to enforce community rules.
- Attorneys note the law prevents extreme cases of unfair fines and retaliatory actions by HOA boards.
- Legislation was quietly included in a major housing reform bill (AB 130) by Assemblymember Buffy Wicks.
- HOAs are prevalent, governing 65% of California homeowners with median monthly fees of $278.
- New law bans additional late fees or interest, except for public health or safety violations.
- Homeowners advocate sees the law as a check on HOA power and unfair violation fines.
- HOA boards fear diminished power will lead to more rule-breaking and costly litigation.
- Fines are not a significant revenue source for HOAs, so financial impact is minimal.