California Law Caps HOA Fines At $100, Cutting Costs But Limiting Board Power

California homeowners who live in communities governed by homeowners associations will see major changes after a new law capped HOA fines at $100. The limit replaces penalties that previously reached into the thousands. The law also bans late fees and interest on violations, except in cases involving health or safety. Supporters say the cap offers relief for millions of residents facing high housing costs, while critics argue it strips HOA boards of authority to enforce neighborhood rules. Some fear that smaller fines may encourage rule-breaking and lead to more disputes ending in litigation rather than resolution. The provision was added to a sweeping housing reform bill, with little public debate before it became law. California has more than 50,000 HOAs governing about two-thirds of homeowners, with monthly dues among the highest in the nation.