ENDING OF ANOTHER LEGISLATIVE YEAR:
CAI-CLAC 2025
Matthew A. Gardner, Esq., CCAL – Richardson|Ober, LLP Future issues of the magazine will feature articles that take a deeper dive into these new laws and provide additional clarity on what they mean for our communities.
The CAI California Legislative Action Committee (CLAC) wrapped up its annual efforts in Sacramento for 2025. Below is a brief summary of some of the wins and losses from this calendar year.
Homeowner Association Accountability - AB 21 (DeMaio) This bill proposed an overhaul of meeting procedures and board oversight over the management of common interest developments (CIDs) and homeowners associations (HOAs).
The bill was defeated in the Assembly Housing Committee, but eligible for a motion to move out of committee in January 2026. Pushing this off to another calendar year was defi nitely a win for 2025, but may resurface in 2026!
Cap on Fines- AB 130 (Committee on Budget) This bill included amendments covering numerous issues involving housing. One of the amendments mirrored the language from SB 681 to cap the fi nes an association can charge at $100, unless “the violation may result in an adverse health or safety impact on the common area or another association member’s property.”
The bill was signed and went into effect June 30, 2025. CLAC already
considers a response to this law as a top priority, but we will have to wait until the next legislative session. In the meantime, associations must look at their enforcement policies and fi ne schedules and reconsider how they use fi nes as an enforcement tool.
CID Real Estate Broker License - AB 739 (Jackson) This proposed legislation would require that managers hold a real estate broker license issued by the state.
This bill was defeated in the Assembly but will be eligible for a motion to move out of committee in January 2026. If and when it does move, CLAC is ready with signifi cant changes to the requirements. Another good outcome!
Balcony Inspection Cover Page - SB 410 (Grayson) This bill required inspectors to include specifi c information on the cover page of balcony inspection reports.
The bill passed the Assembly Floor without further debate and was signed by the Governor. It went into effect January 1, 2026.
Insurance Limits - SB 547 (Perez) This bill was introduced to prevent specifi c types of coverage from being cancelled. It prohibits insurers from cancelling or refusing to renew a policy within a fi re perimeter that has limits of $10,000,000 or more.
CAI supported this legislation, and it was passed and signed by the Governor. It went into effect January 1, 2026, and prevents associations from immediate loss of coverage until longer term insurance reform is in place. Another win!
14 March | April 2026
Streamlined Architectural Procedures - SB 625 (Wahab) This bill proposed a streamlined architectural review process for rebuilding after natural disasters.
After productive discussions, the bill’s scope was limited to actual disaster- related events, and CLAC moved to a neutral position. The bill passed the Assembly and was signed by the Governor. It went into effect January 1, 2026.
Invalidate Restrictions during Rebuilding - SB 677 (Wiener) The proposed legislation attempted to prevent associations from imposing CC&Rs that prohibit or unreasonably restrict housing developments or urban lot splits on single-family zoned districts statewide.
CAI opposed this legislation, and it failed to pass in the Senate. A good outcome for a bad association bill.
Electric Vehicle Charging Station - SB 770 (Allen) This bill proposed to eliminate the requirement that owners list their association as additional insured on individual policies covering EV charging equipment.
Despite no objection from insurers about being able to extend additional insured coverages to associations, the bill passed the Assembly and was signed by the Governor. It went into effect January 1, 2026. By removing the association as an additional insured, the law may shift risk from the owner of the charging station onto the association. Associations may need to increase their existing coverage to reduce the risk or to cover damage from owners’ EV equipment. Another setback for communities during an already challenging insurance market.
Overall, this was an incredibly challenging year for legislation. While legislators explored and spent a lot of time and energy focused on “affordable housing,” much of the legislation targeting California common interest developments will likely have the opposite effect.
Associations are already seeing some of the downside. As boards and managers work to implement new approaches to enforcement resulting from AB 130, they are realizing that owners may simply choose to ignore fi nes or violation notices. What was once a reasonable penalty of $100-$500 may instead turn into full-blown litigation effort
to correct violations and seek
attorney fees for enforcement of the governing documents. Legislation passed without signifi cant discussion or consideration of the unintended consequences may lead to openings in next year’s legislative session to make important revisions to existing harmful policy outcomes.
Do your part to make your voices heard in Sacramento. Continue to support CLAC and make sure to respond to emails and calls to action to limit harmful future legislation.
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