California HOA Law Changes to Know in 2026
California HOA law constantly evolves. HOA board members, lawyers, and managers can expect legislation to reshape how associations enforce rules, manage safety obligations, conduct elections, and reduce legal risk.
While there are no brand new HOA statutes coming January 1, 2026, several existing laws have critical deadlines or begin having their full operational impact in 2026.
For boards, community managers, and attorneys preparing for the 2026 CAI Law Seminar, understanding these changes is essential for compliance, budgeting, and risk management.
Why 2026 Is a Critical Year for California HOAs
Recent legislative changes reflect a broader shift in California HOA law toward reduced punitive enforcement, increased safety accountability, and stricter procedural requirements. Rather than introducing sweeping new statutes, lawmakers have focused on limiting fines, mandating inspections, and tightening governance standards.
Two legal developments stand out in 2026.
- The $100 cap on most HOA fines under AB 130
- The mandatory January 1, 2026 inspection deadline for exterior elevated elements under SB 326.
Together, these laws change how associations enforce rules and how boards manage physical risk and liability.
AB 130 and the $100 Cap on HOA Fines
Assembly Bill 130 was signed on June 30, 2025 and took effect immediately. The law limits most HOA fines to $100 per violation and removes several enforcement tools that associations have traditionally relied on.
Under AB 130, fines for most violations may not exceed $100 per violation. Late fees and interest on unpaid fines are prohibited. Homeowners must be given expanded opportunities to cure violations before disciplinary hearings. Fines above $100 are permitted only when a violation presents a health or safety risk and the board makes that finding in an open meeting.
The law does not clearly define what constitutes a separate violation for repeat or ongoing conduct. It also does not define health or safety violations or what qualifies as a financial commitment to cure when remediation cannot be completed before a hearing.
As a result, many associations are revising fine schedules, updating enforcement policies, and consulting legal counsel. In practice, AB 130 reduces the effectiveness of monetary penalties and increases the likelihood that unresolved disputes move toward internal dispute resolution, mediation, or litigation.
For boards and managers, documentation, consistency, and procedural compliance now matter more than the size of a fine.
SB 326 and the January 1, 2026 Balcony Inspection Deadline for HOA Condos
The most significant hard compliance deadline facing California condominium HOAs is Senate Bill 326. Enacted in 2019 and amended in 2024, SB 326 requires qualifying associations to complete their initial inspections of exterior elevated elements by January 1, 2026.
SB 326 applies only to condo HOAs with three or more units that contain exterior elevated elements such as balconies, decks, or walkways that are supported substantially by wood or wood based materials and are more than six feet above ground level. The law was enacted in response to structural failures, including the 2015 Berkeley balcony collapse, and is intended to identify dry rot, waterproofing failures, and structural deterioration before injuries occur.
The original deadline of January 1, 2025 was extended to January 1, 2026 due to inspector shortages and high demand. AB 2114, signed in July 2024, expanded the pool of qualified inspectors to include licensed civil engineers, easing compliance pressure.
SB 326 does not apply to planned developments or apartment buildings without HOAs. Those properties are governed by SB 721, which also has a January 1, 2026 deadline but requires inspections every six years and reporting to local authorities when hazards are found. For condominium HOAs, SB 326 inspections must be repeated every nine years and aligned with every third reserve study.
By January 1, 2026, the HOA must hire a qualified professional such as a licensed architect, structural engineer, civil engineer, or certified building inspector. The inspection must include a visual review of a statistically significant sample of exterior elevated elements, typically at least 15 percent, sufficient to provide 95 percent confidence with a five percent margin of error.
Inspections evaluate load bearing components like joists and beams, as well as waterproofing systems such as membranes and sealants. Inspectors may use moisture meters, borescopes, infrared imaging, or destructive testing if deterioration is suspected.
A stamped and signed report must be delivered to the board within 45 days. The report must identify the condition of the components, estimate remaining useful life of at least six years, and include repair recommendations. Reports must be retained for at least 18 years and incorporated into the association’s reserve study.
If an HOA is compliant, it gains valuable data for budgeting and long term maintenance planning. Early detection of minor water intrusion or rot can significantly reduce repair costs. If an HOA is non compliant, local building departments may impose fines, recover enforcement costs, and place liens on the property. Insurance coverage for injuries related to elevated elements may be jeopardized, and boards may face claims of negligence.
As of early 2026, demand for qualified inspectors is surging, with many professionals booked months in advance. Enforcement activity is expected to increase in 2026, including audits in major jurisdictions such as Los Angeles and San Diego. HOAs should budget approximately $500 to $2,000 per building for inspections, with repair costs potentially exceeding $10,000 per balcony if waterproofing or structural issues are found.
Election and Governance Changes Continuing Into 2026
Several laws that took effect on January 1, 2025 continue to shape HOA governance as associations implement new procedures in 2026.
AB 2159 allows opt-in electronic voting (also called e-voting) for director elections and governing document amendments, excluding assessments.
Associations must amend election rules at least 90 days before using electronic voting and must continue offering paper ballot options. While electronic voting can increase participation, non compliance with procedural requirements may invalidate election results.
AB 2460 lowers quorum requirements for reconvened elections to 20 percent of the membership unless governing documents specify otherwise. A minimum 15 day notice is required for reconvened meetings. While this reduces barriers to completing elections, it increases the importance of accurate notices and recordkeeping.
Operational and Liability Issues Boards Should Monitor
Other recent legislation continues to affect HOA operations and risk exposure in 2026.
SB 900 requires HOAs to begin repairs to restore utilities such as gas, water, heat, or electricity within 14 days when disruptions originate from common area systems. The law allows emergency assessments or loans without a member vote when reserves are insufficient and requires utility infrastructure to be included in reserve studies.
SB 428 expands harassment protections to include HOA managers and staff, allowing restraining orders in cases involving threats, repeated disturbances, or intimidation. As enforcement disputes increase under AB 130, this law provides additional protection for association personnel.
AB 572 limits assessment increases for new HOAs with significant deed restricted affordable housing components. While narrower in scope, it affects budgeting for certain mixed income communities.
How HOA Management Software Supports Compliance
As enforcement becomes more procedural and safety obligations more prescriptive, many California associations are relying on HOA management software to reduce administrative risk.
Platforms such as ManageCasa help HOAs track violation notices, hearings, cure timelines, inspection reports, and long term records. They also support election documentation, reserve study integration, maintenance planning, and transparent communication with homeowners.
What Boards and Managers Should Do Now
Boards and managers preparing for 2026 should take proactive steps well in advance of the CAI Law Seminar.
- Review and update fine schedules to comply with AB 130
- Consult legal counsel regarding enforcement procedures and health and safety findings
- Schedule SB 326 inspections as early as possible
- Confirm reserve studies reflect inspection and utility obligations
- Update election rules before implementing electronic voting
- Strengthen documentation, record retention, and communication practices
Preparing for the 2026 CAI Law Seminar
The 2026 CAI Law Seminar is expected to focus heavily on enforcement ambiguity, inspection compliance, and governance risk. Boards and managers who understand these changes in advance will be better positioned to ask informed questions and avoid costly missteps.
California HOA law is evolving… Though 2026 is more about subtle changes than dramatic overhauls. Enforcement tools are more limited, safety obligations are more defined, and procedural errors carry greater consequences.
Frequently Asked Questions
No. AB 130 does not eliminate HOA fine… But it does limit most fines to $100 per violation. Fines can exceed $100 only when the board agrees that a violation presents a health or safety risk. Late fees and interest on unpaid fines are no longer permitted.
It’s unclear. The law does not clearly define whether repeat or ongoing violations may be fined multiple times. Some legal professionals think each separate incident may still be fined up to $100 if proper notice and hearings are held... Others interpret the law as limiting enforcement to a single $100 fine until the violation is cured. For now, it’s ambiguous.
AB 130 does not define health or safety violations. Examples may include conditions that create fire hazards, structural risks, or threats to common areas or neighboring property. Boards should consult legal counsel and make any health or safety determinations in open meetings with clear documentation.
No. SB 326 applies only to condominium HOAs with three or more units that have exterior elevated elements supported substantially by wood or wood based materials and located more than six feet above ground. Planned developments and apartment buildings without HOAs are governed by SB 721 instead.
Failure to complete inspections by January 1, 2026 may result in enforcement actions by local building departments, including fines, cost recovery, and liens. Insurance coverage for injuries related to balconies or elevated elements may be affected, and boards could face liability claims if injuries occur.
No. Electronic voting is optional under AB 2159. Associations must amend their election rules at least 90 days before using electronic voting and must continue to offer paper ballot options.
