What's Changed: Davis‑Stirling Common Interest Development Act Under AB 130
California’s Assembly Bill 130 (“AB 130”), enacted June 30, 2025, introduces significant amendments to the Davis‑Stirling Common Interest Development Act (“Davis-Stirling”), specifically affecting enforcement provisions under Civil Code Sections 5850 and 5855. These changes take effect immediately as part of the 2025 state budget trailer bill package.
Davis-Stirling primarily applies to residential common interest developments, but not commercial and industrial properties unless specifically adopted in the governing documents or if the project is a mixed-use development with a residential component. In such cases, Davis-Stirling will govern the residential component. Where Davis-Stirling is incorporated into governing documents, the provisions will apply to the extent they are not in conflict with laws specifically governing commercial or industrial projects.
Under the new revisions, an association cannot impose a fine exceeding $100 per violation, even if higher fines are stated in schedules previously adopted by the governing board. This cap will apply going forward unless the violation may result in an adverse health or safety impact on the common area or another association member’s property. In those limited cases, the board may exceed the cap, but only after: 1) making a written finding; and 2) adopting that finding in an open board meeting. Additionally, any interest or late fee charging on fines is prohibited under the new law.
The $100 fine cap applies to violations occurring on or after June 30, 2025, and does not affect fines imposed before that date. However, existing fine schedules may now conflict with the new cap, particularly for ongoing or daily fines. Boards should revisit these schedules and consider revisions for consistency with the revised law.
In addition to fine limitations, AB 130 also makes significant changes to certain Davis-Striling procedures that an association must follow before imposing discipline on a member.
Overall, AB 130 updates Davis-Stirling by fundamentally rebalancing association enforcement authority toward owner rights and due process, by restraining fines and clarifying enforcement. To comply, associations should consider revisions to fee schedules, interest and late fee provisions, cure provisions, and hearing and notice procedures. It is also advisable for board members to be trained to document findings, understand open-meeting mandates (versus executive sessions), and adopt judicially enforceable resolutions.
Should you have any questions relating to the changes to Davis‑Stirling under AB 130 and how to implement them, reach out to Jessica Lomakin or your BBK attorney.
Disclaimer: BBK Legal Alerts are not intended as legal advice. Additional facts, facts specific to your situation, or future developments may affect subjects contained herein. Seek the advice of an attorney before acting or relying upon any information herein.
