New laws impacting community associations in 2026

California’s evolving legal landscape continues to reshape how community associations operate, and 2026 brings a new wave of legislative changes with significant implications for boards, managers, and homeowners alike. From enhanced inspection and disclosure requirements to updated governance standards and limits on enforcement practices, these new laws reflect a broader push toward transparency, accountability, and resident protection. Understanding these developments is essential for community associations seeking to remain compliant, mitigate risk, and effectively navigate an increasingly complex regulatory environment. Please contact Jeff Machado, our Executive Vice President, at 415-431-7655 or jmachado@hsmsf.com if you have any questions.

AB 1152: Impacts on Junior ADUs (“JADUs”)

This bill modified the law regarding when an owner is required to occupy the single-family residence to which a JADU is attached. Previously, an owner was required to occupy the main residence; now owners are only required to occupy the main home if the JADU shares a bathroom with the main home. Additionally, the law provides that JADU rental terms must be for a minimum of 30 days.

SB 410: SB 326 Reports

This bill classified reports created in response to Civil Code 5551 (i.e., SB 326) inspections as “association records” subject to member review and copying upon request. The reports are also now included on the list of documents owners must provide to prospective purchasers. Finally, the SB 326 report must now include a front page that provides a summary of the inspection details.

SB 547: Property Insurance Cancellation.

Insurers are now prohibited from canceling or refusing to renew a policy of commercial property insurance in any ZIP code within or adjacent to the fire perimeter for one year after the declaration of a state of emergency AND based solely on the fact that the insured structure is located in an area in which a wildfire has occurred.

SB 625: Rebuilding after natural disaster.

In response to the January 2025 fires in Southern California, the law now provides that, ,if an owner wishes to reconstruct a residential structure that was “substantially similar” to the prior residence, governing documents may not prohibit such action and associations must provide expedited review of applications and maintain clear and timely communication with such owners during the process.

SB 770: EVCS Insurance Requirements.

This bill removed one of the few protections offered to associations when owners wish to install electric vehicle charging stations on the common area. Unfortunately, owners are no longer legally required to name the association as an additional insured on their liability insurance policies. This change eliminates the association’s ability to access an owner’s insurance funds if their EVCS causes damage to a person or other property.

AB 130: Fines & Enforcement Procedures.

This was the BIG law from the 2025 legislative session; it was enacted on an emergency basis so it has been on the books since July 1, 2025. The bill significantly changed an association’s fine and enforcement ability for the worse. Fines are now limited to the lesser of the amount set forth in an association’s fine policy OR $100 “per violation.” The only exceptions to the $100 limit are those violations which pose an adverse health of safety risk to the common area or another owner’s property. Even then, the Board must make a written finding of the violation posing such a risk before a fine in excess of $100 can be imposed. The bill also added new procedural requirements prior to imposing a fine, including participation in IDR if requested by the owner, eliminated the right of an association to fine an owner for any violation which is remedied prior to the hearing.

This information originally appeared on the Hughes Gill Cochrane Tinetti website.