Governor Newsom has signed several key bills prior to the October deadline, marking the conclusion of the first year of the two-year legislative session. The Legislature has now adjourned and will return on January 5, 2026, to begin the second year. Bills that were made into two-year measures may be taken up at that time, but all must be acted upon by the end of 2026 legislative session, which adjourns on August 31.
We are already working to prepare for next year and, following CLAC’s annual planning meeting, we have identified key issues to prioritize in the upcoming legislative session. This was the outcome of the 2025 legislative session.
SB 770 (Allen): Eliminates the requirement for HOA members installing EV chargers in common areas to name the association as an additional insured. Despite discussions with the Senator, we were unable to secure significant amendments before the deadline. Signed by Governor Newsom on October 10.
Late in the session, Senator Allen expressed interest in addressing issues associations might have in obtaining indemnification for major events that occur as a result of an owners electric vehicle charging station. We will be working with him over the interim on ways to address this, which might result in legislation in 2026.
SB 625 (Wahab): Streamlines architectural review for rebuilding after natural disasters. After productive discussions, the bill’s scope was limited to disaster-related events, and CLAC moved to a neutral position. Signed by Governor Newsom on October 10.
SB 547 (Perez): Adds commercial property with policy limits of $10,000,000 or more to the cancellation moratorium list. CLAC supported this bill. Signed by Governor Newsom on October 10.
SB 410 (Grayson): Requires inspectors to include specific information on the cover page of balcony inspection reports. Signed by Governor Newsom on October 10.
Issues involving aging infrastructure continue to appear every year. While SB 410 focused on the SB 326 report, the issue driving the bill is aging infrastructure and the inability of most associations to address those concerns without passing a special assessment. We don’t expect this issue to go away.
SB 282 (Wiener): Would void any CC&R prohibiting the installation of electric heat pumps. This bill was held in the Senate Appropriations Committee but may be taken up again in 2026.
AB 942 (Calderon): Proposed reducing Net Energy Metering contracts for HOAs from 20 years to 10 years. CLAC did not take an active position. The bill remains in committee and may return next session.
SB 681 (Wahab) / AB 130 (Committee on Budget): Established a $100 cap on HOA fines (with exceptions for health or safety risks). Signed into law on June 30 and effective immediately. CLAC is engaging with legislators to address implementation concerns in 2026.
Our number one priority in 2026 will be to address the fine cap imposed by AB 130. We are in the process of talking with potential authors and building a coalition of support to Fix AB 130. Please join our campaign by going to the CAI-CLAC website and providing us examples of issues created by the passage of this bill.
While a number of bills passed that will have costly or negative impacts on HOAs, continued advocacy helped mitigate several measures and prevent others from advancing. It remains essential that we continue to engage with lawmakers, apply pressure, and advocate for balanced policy outcomes. HOAs play a vital role in providing affordable, well-maintained, and community-oriented housing for millions of Californians, and legislators must understand their value to avoid unintended harm.
Please mark your calendars to join us on December 4 for CAI-CLAC Virtual Town Hall: The Year in Review + A Look Ahead to 2026, where we plan to discuss our 2026 legislative agenda. You can register for this FREE virtual Zoom event here.
And it’s not too early to Mark Your Calendar and make plans to join us for CAI-CLAC 2026 Advocacy Days in Sacramento, Tuesday, April 7 – Wednesday, April 8, 2026. Event information and Sponsorship materials can be found on the event page of our website at www.caiclac.com beginning on Thursday, December 4, 2025. Registration information will be rolled out in mid-January 2026.
As we enter the busyness of the holiday season, we wish you and yours all the best and a Happy New Year!
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