By: Fiore Racobs & Powers, A PLC
In addition to placing caps on most fines imposed by HOAs, Assembly Bill 130 (AB 130)— signed into law on June 30, 2025, and effective immediately—prohibits HOAs from imposing any fees or financial requirements on accessory dwelling unit (“ADU”) and junior accessory dwelling unit (“JADU”) projects.
What Changed?
Previously, HOAs were permitted to adopt and enforce “reasonable restrictions” on ADU and JADU projects, provided those restrictions did not:
- Unreasonably increase the cost of construction,
- Effectively prohibit the project, or
- Extinguish a homeowner’s ability to otherwise construct an ADU or JADU.
However, AB 130 redefines “reasonable restrictions” in Civil Code Section 714.3 to explicitly exclude any fees or other financial requirements for ADU and JADU projects.
This means that HOAs can no longer require:
- Application processing fees,
- Construction deposits,
- Architect/consultant review fees, or
- Any other monetary charges in connection with the review, processing, approval, or
construction of an ADU or JADU.
What Does This Mean for HOAs?
HOAs and association management companies will need to revise their architectural review guidelines and procedures to comply with this new law. This change represents a meaningful shift in how ADU and JADU projects can be processed by HOAs.
Legal Compliance and Next Steps
HOA boards are strongly encouraged to consult with legal counsel to:
- Review and revise governing documents (e.g., architectural review guidelines, etc.) to ensure compliance with AB 130.
- Update the application submittal and review process so that applications for ADU and JADU projects must be submitted separately from any other proposed improvement projects. That way, HOAs can more readily require fees, deposits and charges for the non-ADU/JADU projects.
Need guidance? Contact our team today to learn how our homeowners association management services can help your community adapt to these new requirements.