LHC Newsletter Vol. 17, No. 1
NEW LAWS ENACTED IN 2025
By: David A. Loewenthal, Esq.
Michael E. Zárate, Esq.
AB 130. Limitation of Fines by Homeowner Associations.
[Status: Approved by Governor and Chaptered by the Secretary of State 06/30/25.]
This bill restricts the fines an association may impose on a member, capping them at no more than $100 per violation. Any fine schedule that includes fines exceeding this amount is now void and unenforceable. AB 130 also prohibits late charges or interest from being added to any fine. The only exception to the $100 cap applies when a violation creates a potential adverse “health or safety” impact on the common area or another member’s property. An HOA can identify and pre-approve certain types of violations as health or safety hazards (e.g. speeding, parking in front of a fire hydrant or fire lane, glass at pool, aggressive/off-leash pets, etc.) by adding them to its rules and fine schedule in advance; however, if a specific fine is not included then the association’s board must adopt a written finding at an open meeting explaining the specific “health or safety” risk to exercise this option.
Before any fine can be imposed, owners must be given a meaningful opportunity to cure the violation. The Board may not impose discipline if: (1) the member cures the violation before the hearing, or (2) the violation cannot reasonably be cured within the notice period before the hearing, and the member provides a financial commitment to complete the cure.
If, after the hearing, the member and the Association do not reach an agreement, the member must be given the option to pursue Internal Dispute Resolution (IDR). Conversely, if an agreement is reached, the Association must prepare a written resolution, signed by both parties. This resolution is judicially enforceable.
Additionally, AB 130 shortens the deadline for issuing written hearing results from fifteen (15) days to fourteen (14) days. If an Association’s existing fine policy or fine schedule does not comply with AB 130, it must be revised and replaced. The updated policy must then be provided to the membership for the required 28-day review and comment period before the Board may adopt it.
AB 130 may make it difficult for associations to obtain compliance from owners violating the governing documents due to the limit on the amount of each fine. The likely unintended result of AB130 will be associations being forced to proceed with stronger steps to attempt to gain compliance including Alternative Dispute Resolution (ADR) and possibly litigation.
[AB 130 amends, among other Civil Code sections, Sections 714.3, 5850, and 5855.]
SB 410. Exterior Elevated Elements
[Status: Approved by Governor and Chaptered by the Secretary of State 10/10/2025]
This bill strengthens oversight of common interest developments by mandating more comprehensive inspection and disclosure requirements for exterior elevated elements such as balconies, decks, stairs, and walkways. Inspection reports must now detail the number of units and elevated elements inspected, and these reports become official association records accessible to all members. The bill also requires sellers to provide these inspection reports to prospective buyers as part of the mandatory disclosure package. In addition, the bill expands the inspection mandate to include buildings with three or more attached multifamily dwelling units, strengthening the previous standard, which applied to buildings with three or more multifamily units.
[SB 410 amends Sections 4525, 4528, 5200, 5210, and 5551 of the Civil Code, relating to common interest developments.]
SB 625. Housing Developments: Disasters: Reconstruction of Destroyed or Damaged Structures
[Status: Approved by Governor and Chaptered by the Secretary of State 10/10/2025]
The bill renders any rule or document unenforceable if it interferes with the rebuilding of a substantially similar home after a declared disaster. This includes all covenants, restrictions, or conditions contained in deeds, contracts, security instruments, governing documents, or any other instrument. Any such provision is void and unenforceable to the extent that it would prohibit or impede the reconstruction of a similar residential structure. The bill also establishes an expedited review process for post-disaster residential reconstruction.
Local agencies must accelerate their review of qualifying projects when the proposed development complies with the planning standards specified in SB 625.
Additionally, the bill sets firm timelines for Homeowners Association review bodies: (1) 30 days to determine the completeness of an application; and (2) 45 days to issue a final decision.
SB 625 further expands the ministerial exemption under the California Environmental Quality Act, applying this streamlined process to projects that would otherwise require discretionary review. Finally, the bill invalidates any local ordinance that prohibits the placement of manufactured homes, mobile homes, or recreational vehicles (RVs) for use as temporary housing during reconstruction.
This protection applies for three years following a disaster declaration, ensuring that displaced residents can remain on their property while rebuilding their homes.
[SB 625 adds Sections 4752 and 4766 to the Civil Code and adds Chapter 4.2.2 (commencing with Section 65914.200) to Division 1 of Title 7 of the Government Code, relating to housing.]
SB 547. Insurance
[Status: Approved by Governor and Chaptered by the Secretary of State 10/10/2025]
This bill expands California’s wildfire-related insurance cancellation moratorium to protect not only individual homeowners but also commercial-property policies with limits of $10,000,000 or more when those policies insure communities such as Homeowners Associations (HOA’s), condominium associations, and multifamily housing. Prior to this, the moratorium applied only to personal residential policies. SB 547 adds these higher-value commercial policies to the list of policies that cannot be canceled or nonrenewed for one year after a declared wildfire emergency if the property is in or near fire-affected areas.
Many HOA’s rely on large-limit commercial master policies for buildings, common areas, and liability coverage, and were previously unprotected from wildfire-driven cancellations. The law still allows cancellation in cases of willful misconduct, unrelated severe losses, or major changes in insurability, but provides stability for community associations facing post-wildfire insurance volatility.
[SB 547 adds to Section 675.55 to the Insurance Code, relating to insurance.]
SB 770. EV Charging Stations
[Status: Approved by Governor and Chaptered by the Secretary of State 10/10/2025]
This bill changes California law for common-interest developments by eliminating the requirement that a homeowner installing an electric-vehicle charging station must carry a liability insurance policy naming the homeowner association as an additional insured. While the bill supports broader EV adoption, the change increases liability exposure for associations if a charger causes property damage and the homeowner’s insurance is inadequate or lapses, since the association is no longer automatically protected under the owner’s policy. The bill prioritizes accessibility to EV infrastructure in multi-unit communities but shifts some liability considerations back to associations.
[SB 547 amends Section 4745 of the Civil Code, relating to common interest developments.]
REVIEW – ELECTRONIC VOTING EFFECTIVE JANUARY 1, 2024
Although AB 2159 took effect on January 1, 2024, it remains important for California homeowner associations (HOA’s) to fully understand the significant changes it brings to HOA election procedures. The rollout and implementation of its provisions have been noticeably slow. Many associations are still working to update their election rules, educate members, and put the required systems and safeguards in place. Some HOA’s may still be considering the adoption of electronic voting, making it even more critical to revisit the law’s requirements and ensure a smooth transition to the new election framework.
AB 2159. Adoption of Electronic Voting.
[Status: Approved by Governor and Chaptered by the Secretary of State on 9/22/24.]
California homeowner associations (HOA’s) may, but are not required to, use electronic voting for most secret-ballot elections, including director elections, recalls, and votes on governing documents. However, electronic voting cannot be used for regular or special assessment votes, which must continue to use traditional paper secret ballots.
The new law imposes several technical requirements to strengthen the security and integrity of electronic voting systems, including verifying member identity and authentication. To adopt electronic voting, an association must: (1) Adopt updated election rules; (2) Maintain records of each member’s voting preference; and (3) Ensure all members are informed of their choice between electronic and paper ballots.
HOA’s may implement electronic voting under one of two models: (1) Opt-out model: electronic voting is the default, but members may opt out and request a paper ballot; or (2) Opt-in model: paper ballots remain the default, and members may opt-in to electronic voting.
Each model carries its own procedural responsibilities. With electronic voting, associations will now need to: (1) Manage a dual voting system; (2) Ensure transparency and compliance with notice requirements; (3) Provide members with detailed instructions on how to vote electronically and how to change their voting preference; and (4) Deliver this information at least 30 days before the opt-out deadline. A key difference from traditional paper voting is that floor nominations will no longer be permitted when electronic voting is used. All candidate nominations must be submitted in advance. To protect ballot integrity, no person, including association members or management company employees, may open or review any electronic ballot tally sheet before the designated time and place for counting ballots. Finally, timing requirements remain critical. Election rules may not be amended within 90 days of an election, and proposed changes must be provided to owners at least 28 days before board adoption.
[AB 2159 amended Sections 5105, 5110, 5115, 5120, 5125, 5200, and 5260 of the Civil Code, relating to common interest developments.]
Disclaimer
This newsletter is provided for informational purposes only and does not constitute legal advice. The information contained here is general in nature and may not reflect current legal developments or apply to your specific circumstances. Receipt of this newsletter does not create an attorney-client relationship.
The firm is licensed to practice law in the State of California. This newsletter is not intended to provide legal advice regarding any jurisdiction outside of California. Readers should not act upon the information contained in this newsletter without seeking professional legal advice based on their particular facts and circumstances.
This newsletter may be considered attorney advertising under the California Rules of Professional Conduct. Prior results do not guarantee a similar outcome. The author and the firm expressly disclaim all liability with respect to actions taken or not taken based on the contents of this article.
