AB 130 $100 Fine Caps, Hearing Procedures, and Prohibited ADU Fees
Synopsis: AB 130 was a housing bill passed with urgency by the State legislature that is now in effect. This bill makes significant changes to governance by implementing new fine limits, hearing procedures, and ADU/JADU fee restrictions. These changes, made without any input from industry experts, will dramatically and negatively impact homeowners’ associations.
Changes to Fines and Hearing Procedures
Summary Highlights:
· A one-hundred-dollar ($100) fine limit has been set notwithstanding the fine amounts stated in your current fine policy, unless a reasonable fine amount is imposed for a violation that may result in an adverse health or safety impact to the common area or another owner’s property.
· For any health or safety fine, before the fine can be imposed, a board of directors is now required to make written findings specifying the adverse health or safety impact in an open board meeting.
· Before any fine or reimbursement assessment is imposed, violators must be given the opportunity to cure their violations.
· The violator and the association have to attempt to resolve the violation with a written agreement. If no agreement is reached, then the violator has the opportunity to request internal dispute resolution (“IDR”).
· Hearing decisions must now be issued within fourteen (14) days instead of fifteen (15) days.
Comments & Recommendations: Many questions and issues are created with this new law (fines, IDR demands, hearings, curing violations, and health and safety impacts), all of which should be discussed with legal counsel. We also suggest that associations review and revise their fine and hearing policies to avoid confusion and conflicts with the new law.
Reasonable Restrictions for ADU/JADU Do Not Include Fees or Other Financial Requirements
Summary: Civil Code § 714.3 is property law regarding ADU/JADU restrictions. Previously, only “reasonable restrictions” could be imposed on the construction of an ADU/JADU with some guidance provided. But now the law expressly adds, “’[r]easonable restrictions’ shall not include any fees or other financial requirements.”
Comments & Recommendations: The question is how broad is this prohibition on fees and does it apply to every situation. Until this new law is settled, we suggest you consult with your legal counsel to discuss what may or may not work for your association.
Amended/New Sections: Civil Code §§ 5850, 5855 (fine caps and hearing procedures). Civil Code § 714.3 (ADU fees).
Effective Date: June 30, 2025