New California law restricts HOA fines to $100 per violation

Summary

In summary Millions of California residents could get a break if they violate HOA rules under a new state law that caps fees at $100, without late fees or accumulating penalties. An ornate balcony or quirky garage door might be in reach for more Californians as homeowners associations across the state are being forced to govern without the power of exorbitant fees to enforce regulations. Millions of California residents could get a break if they violate their homeowners association rules due to a new law that caps fines at $100, down from hundreds to thousands of dollars. Amid an affordability crisis, lawmakers and groups that represent homeowners have characterized the cap, which took effect July 1, as protecting the pocketbooks of middle- and low-income residents. However, HOA boards worry the new restriction will limit their authority to enforce rules. Attorneys for homeowners and HOAs say it will get rid of extreme cases where board members impose unfair and egregious fines to retaliate against homeowners they dislike. “I have seen the worst of the worst and HOAs fine thousands of dollars and foreclose on those homes,” said Edward Susolik, CEO and president of Callahan & Blaine, who represents both homeowners and HOAs. “Generally speaking, that seems reasonable to bring that down because that is one of the biggest issues living in California, because HOAs have very broad powers to enforce their rules.” The cap on HOA fines was quietly inserted into unrelated major housing reform legislation, Assembly Bill 130, that exempts most new housing from environmental review and was led by Democratic Assemblymember Buffy Wicks of Oakland. The language of a separate bill by Democratic Sen. Aisha Wahab of Fremont, Senate Bill 681, capping the HOA fee was included in the housing reform bill just days before the governor signed it into law, drawing little attention. “We were in active negotiations with Sen. Wahab’s staff and actually provided amendments to the pro tem’s offic...