New California Law Caps HOA Fines with AB 130

California law AB 130, focused on protecting HOA members. This is especially relevant for clients in HOA-managed communities like Westlake Island, North Ranch, Lake Sherwood, and other areas in Westlake Village, Thousand Oaks, and the Conejo Valley.

A Win for Homeowners: Understanding AB 130

On July 1, 2025, Assembly Bill 130 (AB 130) officially became law in California, marking a significant step forward for homeowners living in HOA-governed neighborhoods. This long-anticipated legislation directly addresses concerns about excessive, disproportionate, and compounding fines by:

• Placing a $100 maximum cap per violation

• Prohibiting interest and late fees on fines

• Requiring HOAs to offer homeowners the chance to correct a violation before a fine is imposed

This is not just a procedural change—it’s a financial and legal protection that ensures fairness and prevents abuse.

💡 Why This Matters in HOA Communities Like Westlake Village and Lake Sherwood

If you live in communities such as Westlake Island, North Ranch, or Lake Sherwood, you’re likely familiar with how HOA fines can quickly add up—especially when late fees or interest are tacked on. For years, homeowners have voiced concerns about unclear violation notices, lack of transparency, and hefty fines that escalate due to delayed responses or procedural confusion.

AB 130 now closes that gap.
It puts limits in place and ensures due process, giving homeowners more control and clarity.

🔍 What Does AB 130 Require from Your HOA?

Let’s break it down:

1. $100 Cap Per Violation

   • No HOA can fine more than $100 for any single infraction.

   • This cap applies regardless of the violation’s nature.

2. No Interest or Late Fees Allowed

   • HOAs cannot tack on extra charges to unpaid fines.

   • This prevents a $100 fine from ballooning into hundreds more.

3. Mandatory Opportunity to Cure

   • Before any disciplinary hearing, the HOA must give homeowners a chance to fix the issue.

   • If fixed before the hearing, no fine can be imposed.

   • If it can’t be resolved by the hearing, proof of a financial commitment (like scheduling a repair) may also satisfy the requirement.

These changes are now codified in California Civil Code Sections 5850 and 5855.

Real-World Impact: More Fairness, Less Stress

For homeowners—especially long-time residents or seniors who may not be familiar with fast-changing HOA rules—this reform brings peace of mind. It prevents punitive financial surprises and gives residents a chance to respond appropriately and fairly.

What You Should Do as a Homeowner or Buyer

If you’re currently living in, buying into, or considering selling a home in an HOA-managed neighborhood, now is a great time to:

• Review your HOA’s fine and notice procedures

• Request a copy of updated rules & regulations

• Make sure your HOA is compliant with the new Civil Code changes

If you’re preparing to sell your home, knowing your rights—and your obligations—can help you avoid last-minute surprises in escrow.

At Avant ONE Real Estate, we work extensively in HOA-managed luxury communities, including:

• Westlake Island (Lakefront HOA, private gates)

• Lake Sherwood (HOA-governed, exclusive estates)

• North Ranch (varied HOA compliance rules)

• Thousand Oaks, Agoura Hills, Calabasas, and Oak Park

We’re local experts who live and work in these communities—and we stay current on changes that affect you as a homeowner, seller, or investor.

📞 Have Questions? We’re Here to Help

This law is a perfect example of why working with an experienced, transparent, and client-first real estate advisor matters. Understanding the fine print is what helps you protect your property, your investment—and your peace of mind.

If you’d like to know how this affects your specific community or if you're considering selling your HOA-governed home, let’s talk. We're not just agents—we’re advisors with over $1B in career sales and 37+ years of experience.

At Avant ONE, we do real estate differently—with you first, always.