A new California law caps HOA fines at $100 per violation and bans late fees and interest. Homeowners cheer, while boards lament their loss and warn of "weakened enforcement."
Millions of California residents could get a break if they violate their homeowners association rules due to a new law that caps fines at $100, down from hundreds to thousands of dollars. Amid an affordability crisis, lawmakers and groups that represent homeowners have characterized the cap, which took effect July 1, as protecting the pocketbooks of middle- and low-income residents. However, HOA boards worry the new restriction will limit their authority to enforce rules.
Attorneys for homeowners and HOAs say it will get rid of extreme cases where board members impose unfair and egregious fines to retaliate against homeowners they dislike.
"I have seen the worst of the worst and HOAs fine thousands of dollars and foreclose on those homes," said Edward Susolik, CEO and president of Callahan & Blaine, who represents both homeowners and HOAs. "Generally speaking, that seems reasonable to bring that down because that is one of the biggest issues living in California, because HOAs have very broad powers to enforce their rules."
CalMatters
HOAs seem to exist to exact torture and revenge on board members' neighbors, rather than responsibly manage and maintain community-owned spaces. California has taken away one of the many tools HOAs use to torture their homeowners, excessively large fines for the stupid things they declare in violation of their rules. HOAs levy fines in a guilty-until-proven-innocent manner, so the loss of interest and late fees also helps relieve the pressure they can put on folks.
Here is John Oliver's take on HOAs:
Previously:
• Homeowners' associations are not allowed to ban drought-tolerant landscaping
• New HOA to define and enforce 'Patriotism'
• John Oliver explains one of America's most evil institutions: The HOA
• Homeowners Association issues cease-and-desist over children playing sports in grassy field
