For HOA boards and community managers across Santa Clara and California, Assembly Bill 130 (AB 130) is more than just another legislative update — it’s a major shift in how HOAs enforce community rules and issue fines.
Signed into law by Governor Newsom in June 2025, AB 130 introduces immediate changes to the Davis-Stirling Common Interest Development Act, placing new limits on association fines, updating enforcement procedures, and amending environmental review processes under CEQA.
If your community hasn’t reviewed its enforcement policies yet, now is the time. Here’s a clear breakdown of what AB 130 means for HOAs, and how boards can stay compliant while maintaining community standards.
1. $100 Fine Cap for Most Violations
One of the most impactful parts of AB 130 is the new $100 cap on fines for most violations of an HOA’s governing documents.
Previously, associations had flexibility to set higher fines depending on the severity of the infraction. Under AB 130, this is no longer allowed — unless the violation poses a direct health or safety risk to the common area or another member’s property.
Even in those exceptional cases, the board must:
Make a written finding explaining the risk
Present and approve this finding during an open board meeting
Document the justification clearly for members
👉 This means HOAs can no longer issue steep fines for routine violations without meeting new procedural standards.
2. Immediate Enforcement – No Grace Period
Unlike many new laws, AB 130’s HOA provisions took effect immediately upon signing.
This has created a time-sensitive situation for boards. Any HOA currently enforcing fines above $100 must act quickly to:
Review and revise fine schedules
Update enforcement policies to reflect the new limits
Notify members of the updated rules in compliance with Davis-Stirling procedures
Boards that continue enforcing outdated fine structures risk legal challenges and noncompliance penalties.
3. Changes to Davis-Stirling Enforcement Procedures
AB 130 amends Civil Code Sections 5850 and 5855, which outline how HOAs can enforce rules and hold disciplinary hearings.
Key procedural updates include:
Adjustments to notice requirements before disciplinary action
Tighter rules on how fines are determined and approved
Greater emphasis on open meeting transparency when applying exceptions
These changes mean boards must revisit their enforcement workflows, hearing processes, and internal documentation to ensure they align with the new legal framework.
4. Broader Legislative Context – CEQA & Housing
Beyond HOA enforcement, AB 130 also makes significant changes to California’s environmental and housing development laws.
It streamlines CEQA reviews for infill housing projects by:
Capping the number of hearings for housing applications
Freezing development standards at the time of submission
Limiting appeals in certain coastal zones
While this doesn’t directly change how HOAs fine members, it can impact development projects near communities, especially in urban areas like Santa Clara. Boards should stay informed on local planning decisions, as these may intersect with community operations.
5. What HOA Boards Should Do Now
AB 130 requires immediate and careful action from HOA boards to stay compliant and avoid disputes. Here’s a recommended approach:
Review & Revise Fine Schedules
Ensure no violations exceed the $100 limit unless properly justified under the health/safety exception.Update Enforcement Policies & Annual Disclosures
Align all written rules with the amended Davis-Stirling requirements and distribute updates to members.Document Health & Safety Exceptions Properly
Any fine above $100 must be backed by a written finding during an open meeting. Keep these records organized.Train Your Board & Management Team
Make sure board members, managers, and hearing committees understand the new rules thoroughly.Consult HOA Legal Counsel
Have your legal team review enforcement policies, hearing procedures, and governing documents for compliance.
AB 130: A New Era of HOA Accountability
AB 130 represents a shift toward more structured, transparent, and consistent enforcement practices for HOAs across California.
While this means adjustments for many communities, it also offers an opportunity to build fairer, more accountable processes that reduce disputes and strengthen trust between boards and homeowners.
For Santa Clara HOA boards, staying ahead of these changes is key. Updating your policies now will protect your association, ensure compliance, and help maintain the smooth operation of your community.
👉 Need help reviewing your HOA’s enforcement policies?
At PMI SouthBay, we guide boards through California’s evolving HOA laws with practical, hands-on support. Our team combines statewide expertise and local knowledge to keep your community compliant and thriving.
Info@pmisouthbay.com Contact us today to schedule a consultation and make sure your HOA is fully prepared for AB 130.
