PROPOSED LEGISLATIVE LIMITATIONS ON DISCIPLINARY ACTION (April 2025)

The California Legislature is working on further limitations to Associations’ power to impose discipline on owners who violate the governing documents.  Senate Bill No. 681 (SB681) is currently working its way through the legislative process.  In its current form, SB681, if passed, would limit monetary penalties (fines) to a maximum of $100 per violation.  It would also reduce the time to provide written notification of a decision to impose discipline from 15 days to 14 days.

SB681 would further require that the offending owner have the opportunity to cure the violation before the meeting at which the Board will consider or impose discipline.  If the member cures the violation before the meeting, the Board cannot impose discipline.  If curing the violation would take longer than the time provided before the meeting, the Board cannot impose discipline if the member provides “financial commitment to cure the violation.”  SB681 does not define or provide any guidance on the meaning or parameters of “financial commitment.”

This ambiguity inevitably will lead to doubt and disputes over whether the owner has provided sufficient “financial commitment,” leaving Boards in a quandary as to whether they can impose discipline when the owner offers some monetary amount.