Part 2 of a 3-part Law Desk series on California HOAs and the Davis-Stirling Act. Part 1 was the overview - the board is powerful but not above the law. This one is about money: the fines, the assessments, the liens, and the line between a lawful charge and an unlawful one.
Nothing gets a homeowner's attention like a fine that keeps growing or the word "lien." Ava asked her husband, attorney Michael Benavides, what a California HOA is actually allowed to charge - and what changed recently in the homeowner's favor.
Ava: Let's start with fines. Is there a limit on how much my HOA can fine me?
Michael, Esq.: There is now, and it is a big deal. In 2025 California passed AB 130, which took effect immediately in June 2025 and amended the Davis-Stirling fine statute. For most violations of the governing documents, HOA fines are now capped at $100 per violation. The main exception is a violation that poses a significant and imminent threat to health or safety - those can be higher. So if you are staring at a $500 or $1,000 fine for something like a trash can or a paint color, the current cap is a real defense, not wishful thinking.
Ava: They have been adding late fees and interest to an unpaid fine. Can they do that?
Michael, Esq.: Under the recent changes, generally no. The law now restricts tacking late charges and interest onto unpaid fines. That matters, because the old playbook was to let a small fine balloon with penalties until it looked like a serious debt. Stripping the late fees and interest off a fine often shrinks the "scary number" back down to what the law actually allows.
Ava: Can they just fine me, or do they have to give me a chance to respond first?
Michael, Esq.: They have to give you process, and this is where a lot of fines fall apart. Before imposing discipline, the board generally must give you at least 10 days' written notice of a hearing, tell you the nature of the alleged violation, and hold that hearing - typically in executive session - so you can be heard. If they decide to fine you, they have to notify you of the decision in writing, generally within 15 days. Skip the notice, skip the hearing, and the fine is vulnerable. The association also has to have adopted and distributed a fine schedule in advance; a fine for conduct that was not on a published schedule is on shaky ground.
Ava: What is the difference between a "fine" and an "assessment"? People use them like the same word.
Michael, Esq.: They are very different animals, and the difference decides what the HOA can do to collect. Assessments are your share of the community's expenses - the regular dues, plus any special assessment the association levies for a big-ticket item like a new roof or a reserve shortfall. Assessments are the association's lifeblood, and the law gives them strong collection tools. A fine is a penalty for a rule violation. That distinction matters enormously, because as a general rule an HOA cannot foreclose on your home over unpaid fines - only over unpaid assessments. When a board blurs the two to make a fine feel like it threatens your house, that is worth challenging.
Ava: A special assessment showed up out of nowhere. Can the board just impose one?
Michael, Esq.: Not without limits. Davis-Stirling caps how much a board can raise regular assessments and levy special assessments in a year without a vote of the members - there are percentage thresholds, with emergency exceptions. So a giant special assessment dropped by the board alone may have required a membership vote it never got. The first questions are always: what does our budget and reserve study say, what do the governing documents require, and did this assessment follow the statutory limits and voting rules?
Ava: They put a lien on my home for unpaid assessments. How does that even happen?
Michael, Esq.: There is a required sequence, and each step is a place the HOA can slip. Before recording an assessment lien, the association generally must send you a formal notice - an itemized statement of what is owed, notice of your right to dispute the debt and to request a payment plan or meeting, and notice of the collection and foreclosure procedures. The board also has to approve recording the lien in an open meeting by recorded vote. If they skipped the pre-lien notice or the board vote, the lien itself can be attacked as improperly recorded.
Ava: This is the part that scares people - can the HOA actually take my house?
Michael, Esq.: Only in limited circumstances, and the law deliberately makes it hard. An HOA generally cannot foreclose on an assessment lien unless the past-due assessments total at least $1,800 - not counting late charges, collection fees, attorney fees, or interest - or are more than 12 months delinquent. That dollar floor exists precisely so a homeowner does not lose a house over a few missed months of dues plus a pile of fees. And even after a foreclosure sale, California gives the owner a 90-day right to redeem the property. So "we'll foreclose" is not a button the board can push on a small balance.
Ava: If the numbers do not add up, what should a homeowner do?
Michael, Esq.: Demand the breakdown in writing and separate the buckets. Ask them to itemize: how much is actual assessments, how much is fines, how much is late charges, interest, and attorney fees. Very often the "assessment" number that supposedly justifies a lien or foreclosure is padded with charges the law does not let them count toward the threshold. Do not pay a lump sum just to make it stop, and do not ignore it either - request a payment plan and a meeting, both of which the statute contemplates, and get advice before a deadline passes.
Ava: Bottom line on HOA money demands?
Michael, Esq.: The scary total is usually negotiable and often partly unlawful. Fines are capped and cannot foreclose on your home; assessments have strict notice, voting, and threshold rules before they can. Make them show their work, hold them to the $100 fine cap and the pre-lien steps, and keep fines and assessments in separate boxes. In Part 3, we get to the offense: how you formally challenge the board and stop an assessment foreclosure in its tracks.
How Law Desk / Michael Benavides Legal Can Help
If your HOA has hit you with a large fine, a surprise special assessment, or a lien, we can separate what is lawful from what is not - the $100 fine cap, the notice-and-hearing rules, the pre-lien steps, and the foreclosure thresholds. Call or text 707-362-4166 for a free, confidential review. Bring the fine or assessment notices and any lien paperwork; we will start there. (Next in this series: how to fight back and stop an HOA foreclosure.)
Law Desk - Michael Benavides Legal | Michael Benavides, Esq., CA Bar No. 270714 | Sacramento, Stockton & Modesto | call/text 707-362-4166 | attorneymichaelbenavides.com
Attorney advertising. Ava is an editorial brand voice, not an attorney; only Michael Benavides, Esq. (CA Bar No. 270714) provides legal analysis. General legal information, not legal advice, and no attorney-client relationship is created by reading this. Davis-Stirling Act fine, assessment, lien, and foreclosure rules (including 2025's AB 130) may change and turn on your specific governing documents and facts - confirm current law and consult an attorney about your situation. Outcomes vary by facts and jurisdiction.
