Discipline And Cost Reimbursement - Dispute Resolution And Enforcement - CA Civil Law

Section § 5850

This law section says that if a homeowners association (HOA) has rules that include monetary penalties for members breaking those rules, they must clearly outline these penalties in an annual statement to all members. Any new penalties can be updated and sent out to members if necessary. Penalties can't exceed $100 unless the violation affects health or safety, which then needs a formal finding by the board. The association can't charge extra fees or interest on these penalties, and they must provide the penalty list to any member who asks.

(a) If an association adopts or has adopted a policy imposing any monetary penalty, including any fee, on any association member for a violation of the governing documents, including any monetary penalty relating to the activities of a guest or tenant of the member, the board shall adopt and distribute to each member, in the annual policy statement prepared pursuant to Section 5310, a schedule of the monetary penalties that may be assessed for those violations, which shall be in accordance with authorization for member discipline contained in the governing documents. Monetary penalties shall be reasonable.

(b) Any new or revised monetary penalty that is adopted after complying with subdivision (a) may be included in a supplement that is delivered to the members individually, pursuant to Section 4040.

(1) The monetary penalty stated in the schedule of monetary penalties or supplement that is in effect at the time of the violation.

(2) One hundred dollars ($100) per violation.

(d)

(1) Notwithstanding subdivision (c), the board may impose a penalty stated in the schedule of monetary penalties or supplement that is in effect at the time of the violation that is greater than one hundred dollars ($100) per violation, if the violation may result in an adverse health or safety impact on the common area or another association member’s property.

(2) Before imposing a penalty on a violation pursuant to this subdivision, the board shall make a written finding specifying the adverse health or safety impact in a board meeting open to the members.

(e) A late charge or interest shall not be charged to a member for a monetary penalty.

(f) An association shall provide a copy of the most recently distributed schedule of monetary penalties, along with any applicable supplements to that schedule, to any member upon request.

homeowners association monetary penalties violation of governing documents annual policy statement member discipline health or safety impact association members schedule of penalties maximum penalty written finding board meeting late charge interest charges penalty supplement individual notice

(Amended by Stats. 2025, Ch. 22, Sec. 3. (AB 130) Effective June 30, 2025.)

Section § 5855

If a homeowner association board wants to discipline a member or charge them for damages caused by the member, their guest, or tenant, they must give written notice at least 10 days before the meeting. The notice should include details of the meeting and inform the member of their right to attend and speak. Members can fix the issue before the meeting to avoid penalties. If fixing the problem takes time, they need to commit financially to the repairs. After the meeting, if there's no agreement, the member can request a resolution process. Otherwise, a binding agreement is signed. If penalties are imposed, the board must inform the member in writing within 14 days. These actions aren’t valid unless all steps are followed.

(a) When the board is to meet to consider or impose discipline upon a member, or to impose a monetary charge as a means of reimbursing the association for costs incurred by the association in the repair of damage to the common area and facilities caused by a member or the member’s guest or tenant, the board shall notify the member in writing, by either personal delivery or individual delivery pursuant to Section 4040, at least 10 days prior to the meeting.

(b) The notification shall contain, at a minimum, the date, time, and place of the meeting, the nature of the alleged violation for which a member may be disciplined or the nature of the damage to the common area and facilities for which a monetary charge may be imposed, and a statement that the member has a right to attend and may address the board at the meeting. The board shall meet in executive session if requested by the member.

(c) A member shall have the opportunity to cure the violation prior to the meeting. The board shall not impose discipline in either of the following circumstances:

(1) The member cures the violation prior to the meeting.

(2) If curing the violation would take longer than the time between the notice provided pursuant to subdivision (a) and the meeting, the member provides financial commitment to cure the violation.

(d) If the board and the member are not in agreement after the meeting, a member shall have the opportunity to request internal dispute resolution pursuant to Section 5910.

(e) If the board and the member are in agreement after the meeting, the board shall draft a written resolution. The written resolution, signed by the board and the member of the dispute pursuant to procedures not in conflict with the law or governing documents, binds the association and is judicially enforceable.

(f) If the board imposes discipline on a member or imposes a monetary charge on the member for damage to the common area and facilities, the board shall provide the member with a written notification of the decision, by either personal delivery or individual delivery pursuant to Section 4040, within 14 days following the action.

(g) A disciplinary action or the imposition of a monetary charge for damage to the common area shall not be effective against a member unless the board fulfills the requirements of this section.

homeowner association board discipline meeting notice member rights damage reimbursement common area damage executive session internal dispute resolution written resolution penalty notification financial commitment repair costs disciplinary action executive session request violation cure

(Amended by Stats. 2025, Ch. 22, Sec. 4. (AB 130) Effective June 30, 2025.)

Section § 5865

This law clarifies that previous sections don't change a board's power to fine members for breaking community rules. It means the board's authority to impose fines stays as it was.

Nothing in Section 5850 or 5855 shall be construed to create, expand, or reduce the authority of the board to impose monetary penalties on a member for a violation of the governing documents.

board authority monetary penalties member violation governing documents community rules fine authority board fines penalty authority violation penalties authority unaffected

(Added by Stats. 2012, Ch. 180, Sec. 2. (AB 805) Effective January 1, 2013. Operative January 1, 2014, by Sec. 3 of Ch. 180.)

Section § 5875

Homeowner associations can't enforce violations of their rules, except for unpaid fees, if there's an emergency that makes it unsafe or impossible for homeowners to address the issues.

An association shall not pursue any enforcement actions for a violation of the governing documents, except those actions relating to the homeowner’s nonpayment of assessments, during a declared state or local emergency if the nature of the emergency giving rise to the declaration makes it unsafe or impossible for the homeowner to either prevent or fix the violation.

association enforcement governing documents homeowner violations nonpayment of assessments declared emergency state emergency local emergency safety concerns prevent violations fix violations homeowner rights emergency declaration unsafe conditions impossible compliance assessment payment

(Added by Stats. 2022, Ch. 858, Sec. 4. (AB 1410) Effective January 1, 2023.)