San Francisco, CA – A new California law is giving homeowners a major victory against aggressive HOA boards by limiting violation fines to $100—a move that recently spared a condo owner from facing $3,500 a week in penalties.
Steep HOA Fine Sparks Outrage
The incident began when a California woman replaced a doorway inside her condo without HOA approval. The association’s manager spotted the renovation through an open garage door and quickly issued a $100 fine for the first day, followed by threats of $500 per day for as long as the violation continued. Within days, she also received fines for installing an EV charger and owning a dog.
California, home to over 50,000 HOA communities, has a long history of homeowner disputes. “These boards often push the limits of their authority,” said a housing advocate.
AB130 Brings Relief to Homeowners
That changed on July 1 when AB130 took effect, capping most HOA fines at $100 unless a violation poses a health or safety risk. The law also prohibits collecting interest or late fees on violations, and requires HOAs to give owners the chance to fix issues before disciplinary action.
This meant the woman’s $500-per-day penalty was voided, leaving her with only the initial $100 fine.
Loopholes and Concerns
While the law curbs excessive penalties, some HOAs are already exploring ways to reclassify minor infractions—such as having an “aggressive” pet or speeding—as health or safety risks to justify higher fines. Such changes would require board meetings and bylaw amendments, which critics warn could lead to further abuse.
Broader Implications for Florida and Beyond
The issue isn’t limited to California. Florida ranks second in the nation for the number of HOA communities, and advocates there say similar protections are needed. Many HOA horror stories—from excessive fines to foreclosures—come out of Florida and Georgia.
Related Homeowner Challenges: Home Warranties Under Fire
In a separate consumer protection concern, home warranty companies are drawing criticism for denying costly repairs. One Louisiana homeowner, covered by American Home Shield, faced weeks without AC after repeated denials and lowball offers. After state intervention, he received a partial payout, but only about half of the repair cost.
Consumer watchdogs warn that vague contract language and lack of regulation in some states leave customers vulnerable. “If you’re going to get one, ask exactly what’s covered,” said a consumer protection official.
Cost of Living Adds to Housing Strain
Meanwhile, new data from SmartAsset shows that to live comfortably in Florida now requires an income of $97,000 a year for a single adult—and over $217,000 for a family of four. Coastal living offers health and lifestyle benefits, but rising expenses are pricing out many would-be residents.
Do you think more states should cap HOA fines like California? Share your thoughts in the comments.
