A timely breakdown of new state laws and their impact on boards and residents

As we approach 2026, several important laws affecting HOAs in California have either taken effect or will soon. For boards, management firms, and homeowners alike it is critical to understand how these changes affect governance, enforcement, assessments, elections, disclosures, and homeowner rights. This article explains the key legislative developments, what they require or prohibit, and practical next steps to remain compliant – and proactive.

Key Legislative Changes to Know

Here are the major new or amended laws that HOAs need to be aware of, with what each does and what the impact is for your community.

1. Assembly Bill 130 (effective July 1, 2025)

What it does:

• AB 130 places a cap on monetary fines that an HOA in California may impose for violations of governing documents, limiting most fines to $100 per violation unless the violation involves an adverse health or safety impact.
• It modifies the enforcement provisions under the Davis‑Stirling Common Interest Development Act (Civil Code §§ 5850 and 5855) to reflect the new limit.
• The law was enacted as part of the 2025 California budget and became effective immediately upon signing.

Impact for HOAs:

• Boards will need to review their fine schedules and enforcement policies and ensure that they do not exceed the $100 cap for routine violations.
• For violations that genuinely involve health or safety risk, the board will need to document the risk to use a higher fine (if permitted) and align with the statute’s language.
• Homeowners will have stronger protection against high daily or cumulative fines for rule violations, which means boards may need to rethink enforcement strategies beyond high-dollar penalties.
• Communication with homeowners becomes more important: explaining the enforcement framework clearly and making sure fines and schedules are updated and documented.

2. Assembly Bill 2159 – Electronic Voting & Election Rules (effective from Jan 1 2025)

What it does:

• AB 2159 added a new Civil Code section 5116 and amended several existing election-related sections. It allows HOAs to adopt electronic secret ballot voting (for board director elections or recalls and amendments of governing documents) under defined conditions.
• Under the law HOAs must first amend their election rules to permit electronic voting and allow homeowners the option to opt in or opt out; they must also manage the dual-ballot process (electronic + paper) if they offer both.
• The law prohibits nomination from the floor when using electronic secret ballot voting unless the HOA chooses to continue only paper ballots.

Impact for HOAs:

• Boards and management should review the association’s election rules, including bylaws and election guidelines, and determine whether to adopt electronic voting and how to implement it.
• If the board chooses electronic voting it must update the rules well in advance of the election (a minimum of 90 days before is typically recommended) and provide homeowner notice of the opt-in/opt-out right.
• The board must ensure proper security protocols for electronic ballots (identity authentication, separation of votes from voter identity, custody of election materials) as required by § 5110, § 5120, § 5125 and other amended sections.
• If the association chooses to remain with paper ballots only the board still may want to update the rules for clarity and to maintain optionality for future election cycles.

3. Assembly Bill 572 – Affordable Unit Assessment Cap (effective Jan 1, 2025)

What it does:

• AB 572 requires that, for certain new associations with more than 20 deed-restricted affordable units, the annual increase in regular assessments for those affordable units cannot exceed 5 % plus the regional Consumer Price Index (CPI), with a maximum cap of 10 % per year.
• The requirement applies only to new associations (formed or with qualifying units) as of January 1 2025.

Impact for HOAs:

• If your association includes deed-restricted affordable units and meets the criteria (new association with >20 such units), the board must ensure conformity with the assessment-increase cap for those units.
• Budgeting and reserve planning must factor this limitation in. If your association falls under the statute then the board may need to separate the calculation of assessment increases for affordable units vs. general units.
• Homeowners in those units have an additional statutory protection against large regular assessment hikes. Boards should communicate clearly which units and owners the cap applies to.

4. Senate Bill 900 – Maintenance/Utility Repair Obligations (effective Jan 1 2025)

What it does:

• SB 900 amends Civil Code § 4775 and adds a new subsection to § 5550 making the HOA responsible, unless the governing documents say otherwise, for necessary maintenance, repair or replacement following any gas, heat, water or electrical service interruption emanating from the common area.
• If there are insufficient reserve funds designated for utility repairs the HOA may impose an emergency assessment or obtain a loan without a membership vote to cover the required repair or replacement.
• The law also requires that applicable utility lines be included as line-item components in future reserve studies.

Impact for HOAs:

• Boards must review whether their governing documents place the responsibility for utility lines and service interruptions on the association or individual units; if not, they may want to revise the documents or clearly communicate responsibilities.
• The reserve study must now account specifically for common-area utility line infrastructure (gas, water, electrical, heat) as a component. Boards should coordinate with their reserve analysts or engineers to update this.
• Budgeting for emergency assessments or funding mechanisms should be revisited: since the board has the power to impose emergency assessments or obtain loans under the statute without a homeowner vote in such circumstances, boards should craft policies or communication plans for when these trigger.
• Homeowners should be informed of the association’s maintenance responsibility and the process for addressing service interruptions.

5. Senate Bill 428 – Workplace Violence & Harassment Protections (effective Jan 1, 2025)

What it does:

• SB 428 expands the definition of workplace violence restraining orders (WVROs) to include “harassment” defined as a knowing and willful course of conduct directed at a specific person that seriously alarms, annoys or harasses them and causes substantial emotional distress.
• The law applies to employees and contractors (including those who perform work for associations) and covers HOA management staff, directors and volunteers who perform services for the association.

Impact for HOAs:

• Boards and management firms must recognize that association staff and volunteers are now more clearly protected under this law; association policies should be reviewed to ensure compliance with harassment prevention and response requirements.
• The association should consider developing or updating its harassment and workplace violence prevention policy, training for board members and management, and coordination with legal counsel or HR consultants to ensure that procedures (reporting, investigation, restraining order requests) are available.
• Homeowners involved in community committees, boards or working with management should also be aware of the protections and procedures under this statute.

What These Changes Mean for Your HOA Board & Residents

For Board Members and Management

• You must review and update your governing documents, rules and policies to reflect the new statutes. This includes fine schedules (AB 130), election rules (AB 2159), maintenance responsibilities (SB 900), and harassment/violence prevention policies (SB 428).
• Timelines matter. For electronic voting you must amend election rules before upcoming meetings and provide notice to homeowners in time. For maintenance and reserve study updates you should plan and budget accordingly.
• Communication with homeowners is key. When law changes reduce board authority (for example, fines capped) or impose new obligations, it is essential to explain the changes, update your community handbook or website, and place the revisions in meeting agendas so homeowners understand what is changing and why.
• Legal counsel or association-specialist counsel should review the changes and implications. The evolving statutory framework means that association practices that were once standard may now be non-compliant or require modification.
• Budgeting and reserve study preparation require closer attention. For example, separate budgeting for affordable units if applicable, reserve studies must incorporate utility lines, emergency assessment authority must be reviewed.
• Board training is more important than ever. Especially for election oversight, enforcement procedures, and harassment prevention, board members should be aware of their fiduciary and statutory obligations under the updated statutes.

For Residents and Homeowners

• Homeowners should review updates from their association regarding the new laws and understand how the changes affect them. For example, if you receive a fine you should know the cap and the board’s authority under AB 130.
• Participating in elections is critical. With new electronic voting options (or maintenance of paper ballots) you should verify if your association has amended rules and whether you need to opt-in or opt-out of electronic voting for the next cycle.
• If you live in a unit covered by the assessment cap under AB 572 (affordable deed-restricted units), you should confirm the association’s compliance and budget for small increases.
• Homeowners should pay attention to reserve study disclosures and budget planning. The board’s new responsibilities (e.g. maintenance of utility lines under SB 900) have cost implications and may reflect in assessments, emergency assessments or special assessments.
• When dealing with enforcement issues or violations, homeowners should know their rights and the limits of board power under the new law (for example, the $100 fine cap). If you believe a board is over-enforcing or imposing excessive penalties you may want to seek legal guidance.
• For associations with committees, boards or volunteers it is important to behave in a respectful, non-harassing manner. With SB 428 in effect you should understand the protections for staff and volunteers against harassment or threatening conduct.

Strategic Steps to Prepare Now

Here are action items boards and management should undertake to ensure readiness and alignment with the new California legislation:

• Conduct a legislative compliance audit. Review your current governing documents (CC&Rs, bylaws, rules & regulations), enforcement procedures, fine schedule, election rules, maintenance plans, reserve study and policies. Identify where changes are needed to conform with AB 130, AB 2159, SB 900, SB 428, AB 572, etc.
• Amend governing documents as required. For example if you wish to offer electronic voting, you must adopt amendments to your election rules and provide homeowner notice. If your CC&Rs assign responsibility for utility lines, you may consider whether to revise or clarify the assignment.
• Update board policies. Create or revise: fine schedule policy, enforcement policy, election and voting policy (electronic voting option, opt-out process, nomination from floor rules), maintenance/repair escalation policy (utility service interruption), harassment prevention policy.
• Review and update your reserve study. Particularly you need to ensure that utility line infrastructure is included as a line item in the reserve study per SB 900 and that your budgeting reflects assessment caps (if applicable) and potential emergency assessment authority.
• Review budget impact. The law changes may affect association expenses (e.g. new maintenance responsibility, legal fees, election process changes) and homeowner assessments. Boards should model scenarios (e.g. increased cost, reduced enforcement revenue) and communicate impact to owners.
• Communicate with homeowners. Send a summary of legal changes to your membership: what the law changes, how the association is responding, and any upcoming decisions (for example, whether the association will adopt electronic voting). Provide FAQs, update the association website or portal, and allow owners to ask questions.
• Train your board and management. Organize a board workshop or engage legal/association specialist counsel to educate directors about the new statutes, their fiduciary duty, enforcement considerations, election changes, and homeowner rights.
• Monitor upcoming legislation. Even though we’ve covered the major changes at the end of 2025, the legislative landscape remains active. Some bills may fail now but be re-introduced; keeping legal counsel or association specialist engaged and monitoring trends is wise.

Final Thoughts

The regulatory environment for HOAs in California is evolving in ways that increase homeowner protections, tighten election rules, impose new maintenance obligations, and refine enforcement powers. For boards and management the message is clear: being proactive, transparent and aligned with new statutes is not optional – it is a governance imperative.

By taking early action to update your rules, communicate with homeowners, adjust budgets and train your leadership, your association can navigate this changing landscape with confidence and maintain trust and stability in your community.

Contact Silvercreek Association Management for more information.