2025 Legislative Update

By Melissa Bauman Ward, Esq., CCAL

This article first appeared in our Communicator Magazine, Winter 2026 Issue.

In 2025, despite vigorous advocacy, we did not get any of our proposed legislation sponsored. Perhaps it wasn’t our day, week, month, or even our year. We did have some legislative successes in terms of educating legislators with regard to our priorities for our HOA communities, as well as defeating some particularly bad bills and encouraging amendment of several other bills so that they were less damaging to our community stakeholders.

2025 brought us a mid-year surprise – and not a good one – in the form of AB 130, the fine cap bill, but fortunately, the rest of the year was relatively mild from a legislative standpoint. In addition to limiting fines, bills were enacted which clarified disclosures to prospective purchasers regarding balcony repair projects (SB 410), dealt with EVCS insurance (SB 770), changed requirements for JADUs (AB 1154), protected owners whose homes were destroyed in a disaster and are seeking to rebuild (SB 625), and responded to insurance needs for properties destroyed by wildfires (SB 547). All of the new laws take effect on January 1, 2026, except for AB 130, which took effect on July 1, 2025.

AB 130: THE ONE THAT TOOK AWAY A REASONABLE ENFORCEMENT TOOL

If you’re tired of hearing about AB 130, please scroll on down. For those that have been on vacation for the past six months, AB 130 made changes to an association’s ability to impose disciplinary fines and the disciplinary process. The bill was signed by the governor on June 30, 2025, along with the budget and took effect immediately on July 1, 2025.

The bill implemented a $100 "per violation" fine cap unless the governing documents state a lower cap and excepting from the fine cap violations which could result in an "adverse health or safety impact on the common area or another association member’s property." Before imposing an "adverse health and safety" violation fine, the board must make written findings specifying the health or safety impact. Neither "violation" nor examples of "adverse health and safety violations" are defined; but we believe that continuing violations are now prohibited, and remind boards that only health and safety violations affecting common area or other separate interests count; health and safety violations affecting only people are apparently not included in the exception.

Members must be given the opportunity to cure the violation prior to a disciplinary hearing, and if they do so, or provide a "financial commitment" to cure the violation, then no discipline can be imposed. If no agreement is reached at a hearing, a notice of decision must be sent out within 14 (not 15) days. The IDR process must then be followed.

SB 410: THE ONE THAT REQUIRES DISCLOSURE OF BALCONY REPAIRS

Now that SB 326 (the "Balcony Bill") has been in place for some time, a question arose as to who is entitled to copies of the inspection reports. SB 410, which takes effect on December 1, 2026, has resolved this issue. All SB 326 reports are now considered "association records," which means they must be made available to members upon written request (Civil Code section 5200) and they must also be provided to prospective purchasers (Civil Code section 4528).

The first page of the SB 326 reports must now contain the following specific information:

• Date of inspection
• Total number of units in project
• Total number of units with exterior elevated elements (EEEs)
• Total number of EEEs in the project
• Total number of EEEs inspected
• Total number of inspected EEEs that pose a safety threat and the number of affected units
• Inspector certification

Other clarifications include stating that inspections are only required for developments with three (3) or more attached multifamily dwelling units, and the requirement that EEE reports be maintained in the association records for two inspection cycles, which is eighteen (18) years.

SB 770: THE ONE THAT REMOVES AN INSURANCE OBLIGATION FOR EVCSs

Until now, members who wanted to install electric vehicle charging stations (EVCSs) were required to name the association as an Additional Insured on their homeowner’s insurance policy. This bill amends Civil Code section 4745 to remove the requirement of naming the association as an Additional Insured. The potential effect of this bill is that liability for damages or injuries resulting from a member’s EVCS could be covered under the association’s insurance policy, rather than the member’s policy. Associations may see an increase in insurance costs as a result.

AB 1154: THE ONE ABOUT JADUS

Until now, if there was a JADU on a single-family lot, the main residence had to be owner-occupied, and there were no timelines for JADU rentals. This bill amends Government Code section 66333 to state that owners are only required to occupy the single-family residence if the JADU will share a bathroom in the existing structure. Additionally, JADU rentals must be for a term longer than thirty (30) days.

SB 625: THE ONE THAT HELPS DISASTER VICTIMS REBUILD THEIR HOMES

New Civil Code section 4752 adds requirements that prevents associations from prohibiting people whose homes have been destroyed or damaged in a disaster (like the Los Angeles fires) from building a "substantially similar reconstruction of a residential structure." There are a number of technical requirements that define what "substantially similar reconstruction" means, e.g., same exterior footprint, interior square footage doesn’t exceed 110% of previous square footage, etc.

The bill also adds Civil Code section 4766, which mandates certain procedures for architectural review of applications to rebuild homes destroyed or damaged in a disaster. The most important change to note is that an architectural application must be reviewed and decided upon within 30 days of submission. Great care must be taken to ensure that review is done immediately for completeness and the 30-day deadline is complied with. Otherwise, unacceptable designs may be deemed approved and built without association review.

SB 547: THE ONE THAT HELPS DISASTER VICTIMS KEEP THEIR INSURANCE

This new law prohibits an insurer from canceling or refusing to renew a policy of commercial property insurance (as most association policies are) for any property located within or adjacent to a fire perimeter (determined by ZIP code) where a wildfire has occurred for one year after the declaration of a state of emergency, based solely on the fact that the insured structure is located in an area in which a wildfire has occurred. The prohibition applies to commercial insurance policies, including those covering homeowners associations, condominium associations, and condominium complexes.

REMINDERS FROM PRIOR LEGISLATION

ELECTRONIC VOTING

If your association wants to use electronic voting, you will need to update your Election Rules to include the statutorily required information. You also need to include information on electronic voting procedures for members to opt in or out of electronic voting in the annual policy statement prepared under Civil Code section 5310. If you don’t have this language in your 2025 annual policy statement, you may not be able to use electronic voting.

NON-POTABLE WATER FOR NONFUNCTIONAL TURF

January 1, 2029, seems far away, but it is coming fast. After that date, associations will no longer be able to irrigate nonfunctional turf with potable water. Associations with more than 5,000 square feet of irrigated area will be required to certify that their property complies with the Water Code requirements. Turf areas used for recreation (e.g., playgrounds, pet exercise areas) are considered functional turf and can continue to be irrigated with potable water.

CONCLUSION

If you need more information about these bills and how they affect your community, please contact your association’s legal counsel or insurance professional for assistance. They’ll be there for you!

Melissa Ward is the Partner in charge of Adams Stirling PLC’s Northern California offices. She is a member of the BayCen Chapter’s Legislative Support Committee (LSC). Melissa encourages everyone to get involved in advocating on behalf of your HOAs with your state legislators because voicing your opinions, educating your legislators, and voting can effect positive change for our communities.