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Fine Lines: Navigating the New Law Regarding Monetary Penalties

By Amy Tinetti, Esq. & Matt Meadors, CMCA, AMS, PCAM

This article first appeared in the Communicator, Fall 2025 Edition. To view click here.

On July 1, 2025, the latest bad law to impact community associations in California was thrust upon us. Assembly Bill (AB) 130, which modified Civil Code sections 5850 and 5855, is arguably one of the most negatively impactful law changes this industry has experienced in decades. It creates some impossible challenges for community associations and leaves associations, their boards of directors, and those who work with associations with more questions than answers.

Even the enactment of AB 130 was unique because the bill did not go through the normal legislative process. CAI’s California Legislative Action Committee ("CLAC") was actively working with Senator Wahab (D-Senate District 10), who initially introduced the language in a standalone bill. However, the language amending Section 5850 and 5855 was added to AB 130 (a massive bill adopted as ...

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Penalize This: Fines and Penalties Imposed on Associations

By Ellen Schuster, Esq.

We talk a lot about the fines and other penalties associations can impose on members who violate the governing documents. What about the fines and penalties that can be imposed on associations? Associations that violate certain Civil Code sections may have to pay monetary penalties or fines (typically called "civil penalties") in addition to paying for actual damages, attorneys’ fees, and court costs.

At a time when members are increasingly challenging associations and associations are under increased scrutiny, it is important to understand the common violations that can subject associations to significant fines and penalties.

Open Meeting Act (Civil Code section 4900, et seq.)

Associations that violate this act may have to pay attorneys’ fees, court costs, and civil penalties of up to $500 per violation. (Civil Code section 4955(b).) Common violations include failure to provide the required four days’ or two days’ notice of an open board meeting or executiv...

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