Guest Author, Robert Riddick, HOA Board Member, CAI-CLAC Delegate for the CAI Greater Inland Empire Chapter
With the recent passage of AB 130, I respectfully submit that its impact on the more than 13 million Californians living in homeowners’ associations (HOAs) has been overwhelmingly negative — and perhaps not fully considered. The bill has resulted in a series of unintended consequences that threaten the very structure and effectiveness of HOA governance statewide.
Chief among these consequences is the near-total weakening of HOA governing documents, which were specifically created to protect and maintain the quality of life within our communities. AB 130’s provision capping all fines for violations at $100 — regardless of the nature or frequency of the infraction — creates an incentive for non-compliance. Why fix a problem if it’s cheaper to simply pay a nominal fine?
Though the bill was intended to make home-ownership more affordable, the result will likely be the opposite. In my own community of 2,677 single-family homes, most residents value a high standard of community living far more than they believe this cap will improve affordability for future buyers.
To be clear: I fully support the goal of making home-ownership more attainable for first-time buyers. But this law, and particularly its fine cap, will effectively strip HOA boards of the enforcement tools necessary to preserve our neighborhoods. The result? Communities will be left with governing documents that are largely unenforceable — not by design, but by legislative fiat.
My greatest concern is that the nearly 55,000 HOAs across California will find themselves powerless to prevent ongoing and repeat violations. Why? Because it will be more cost-effective for violators to simply pay the $100 fine rather than comply with rules they agreed to upon purchase.
Expect to see the consequences firsthand:
- Properties falling below minimum maintenance standards
- Homes turned into unlicensed small businesses (including driveway-based auto repair shops)
- Driveways rented out for RV storage
- A surge in short-term rentals
- And an increase in disputes that will clog up the already burdened IDR and ADR systems, potentially leading to more lawsuits
How does any of this support affordable housing? It doesn’t. Meanwhile, the 2,676 other homeowners in my community are expected to accept this change as progress? Seriously?
In the end, AB 130 will inflict far more damage on community standards and property values than it will ever contribute toward housing affordability. It’s a classic case of good intentions producing deeply harmful unintended consequences.
Continue to Stay Informed and Involved
If you haven’t already done so, we urge you to take a moment to sign up for CAI-CLAC email updates to stay informed. You can also follow us on LinkedIn, Facebook, Instagram, X (formerly Twitter), and YouTube for real-time updates on legislative news, resources, events and legislative action.
You can also continue to find any legislative call to actions on our Current Campaigns page.