By: JMPC Team
Jan 12, 2026
2026 for HOAs in Los Angeles: What’s Coming and How to Protect Your Association
How boards can stay ahead of new laws, higher insurance costs, and rising risks in 2026.
As 2026 approaches, HOA boards in Los Angeles County are staring at a crowded to-do list: new California laws, higher insurance premiums, stricter underwriting, and more scrutiny on budgets, reserves, and compliance.
This guide explains what’s changing for HOAs in 2026 and gives you a practical checklist to protect your association’s finances, buildings, and homeowners. This article is general information only, not legal or financial advice.
Estimated reading time: ~5 minutes.
Why 2026 matters so much for HOAs
2025 brought a wave of laws that take full effect in 2025–2026, plus large, ongoing shifts in California’s insurance market. Together, they change how boards can:
- Fine residents for violations (AB 130 – fines cap) (SilvercreekAM.com)
- Run elections and adopt online voting (AB 2159) (SilvercreekAM.com)
- Budget for affordable units and reserves (AB 572, SB 900) (SilvercreekAM.com)
- Protect managers and volunteers from harassment (SB 428) (SilvercreekAM.com)
- Handle fast-rising property and liability insurance driven by wildfire risk, construction inflation, and reinsurance costs (SilvercreekAM.com)
- Comply with federal reporting rules under the Corporate Transparency Act in many associations (davis-stirling.com)
For most boards, 2026 is the year where “we should look at that soon” becomes “we have to deal with this now.”
The key 2025–2026 law changes every board should know
Below are the headline changes that will shape day-to-day HOA operations as you plan for and live through 2026.
1. $100 cap on most HOA fines (AB 130)
What changed
Assembly Bill 130 limits most HOA fines in California to $100 per violation, unless a violation involves an adverse health or safety impact. It also adjusts Davis–Stirling enforcement sections to reflect that cap. (SilvercreekAM.com)
What it means for boards
- You likely cannot rely on escalating $250–$500+ fines to enforce routine rules.
- Your enforcement policy and fine schedule must be updated to match the cap.
- For higher fines, you’ll need good documentation showing a health or safety risk.
Board action items
- Review and revise your rules & regulations and fine schedule.
- Train the board on due process hearings and clear notice letters.
- Strengthen non-monetary enforcement (education, cure periods, mediation).
2. Electronic voting and tighter election rules (AB 2159)
What changed
AB 2159 lets HOAs use electronic secret ballots for director elections and certain member votes if they update their election rules, give owners an opt-in/opt-out choice, and follow strict security standards. (SilvercreekAM.com)
What it means for boards
- You can modernize elections and increase turnout with e-voting.
- You must revise your election rules before using electronic ballots.
- You need a plan for dual systems if you allow both paper and electronic ballots.
Board action items
- Ask HOA counsel or management to review and redraft election rules.
- Decide if your association is ready for e-voting in 2026 or later.
- Educate owners on how to opt in, how ballots will remain secret, and deadlines.
3. New limits for affordable units and reserve/utility obligations (AB 572 & SB 900)
AB 572 – Assessment cap for some affordable units
New associations with 20+ deed-restricted affordable units must limit annual regular assessment increases on those units to 5% + CPI (max 10%). (SilvercreekAM.com)
Impact
- If your community qualifies, you cannot push large assessment increases on those units.
- You’ll need more precise budgeting and reserve planning to avoid shortfalls.
SB 900 – Utility interruptions and reserve studies
SB 900 clarifies that HOAs are generally responsible (unless documents say otherwise) for addressing gas, heat, water, and electrical service interruptions from common-area systems, and requires that utility lines be added as line items in reserve studies. (SilvercreekAM.com)
Impact
- Utility failures may trigger emergency assessments or loans without member vote.
- Reserve studies must explicitly account for utility infrastructure going into 2026 budgeting cycles.
4. Stronger protections for staff, managers, and volunteers (SB 428)
What changed
SB 428 expands workplace violence restraining orders to include harassment of employees and certain volunteers, including HOA managers and directors. (SilvercreekAM.com)
Impact
- Boards must treat harassment complaints against staff and volunteers very seriously.
- Policies, training, and possible restraining order procedures should be in place.
Board action items
- Adopt or update a harassment and violence prevention policy.
- Train directors and community volunteers on expected conduct and procedures.
2026: Insurance, wildfire, and the pressure on HOA budgets
Beyond statutes, insurance is the wildcard going into 2026.
Recent analysis shows:
- Many HOAs are facing 7–10%+ premium increases for property coverage, with steeper jumps in high-risk wildfire zones. (SilvercreekAM.com)
- California’s climate-driven wildfire risk is driving insurer withdrawals, reinsurance cost spikes, and tighter underwriting across the state. (McKinsey & Company)
- New state rules require insurers to gradually increase coverage in wildfire-prone areas but allow them to pass more reinsurance costs to owners, contributing to rising premiums. (AP News)
What this means for your 2026 HOA budget
- Insurance line items may jump faster than general inflation.
- Underwriting may demand proof of defensible space, roof condition, and maintenance.
- Underfunded reserves and old replacement cost numbers can hurt insurability and payouts.
Board action checklist for 2026 insurance
- Schedule a pre-renewal review with your broker 3–6 months early. (SilvercreekAM.com)
- Update replacement cost valuations in your reserve study.
- Document risk-reduction work (tree trimming, roof projects, lighting, security).
- Model your 2026 budget assuming at least a 10% premium increase, and communicate that early to owners. (SilvercreekAM.com)
Pro Tip: Put insurance as a stand-alone agenda item at your 2026 budget meeting. A 10–15 minute insurance overview with your broker or manager can avoid confusion and build trust when assessments go up.
Compliance, transparency, and board risk in 2026
Corporate Transparency Act (CTA) filings
By the end of 2024, many associations needed to file beneficial ownership information with FinCEN under the Corporate Transparency Act. Some HOAs have continuing or corrective obligations going into 2025–2026. (davis-stirling.com)
Not all HOAs are covered, but for those that are:
- Failing to file or update CTA reports can bring federal penalties.
- Boards should confirm with counsel and/or CPA whether their HOA has ongoing CTA duties.
Local pressures in Los Angeles County
Los Angeles County’s 2025–26 budget narrative highlights tight public finances and big competing priorities, from homelessness to disaster recovery. (Archivo del Condado de Los Ángeles)
For HOAs, this usually means:
- No one is coming to rescue a weak budget or reserve fund.
- Associations must rely on their own reserves, special assessments, and loans when facing big projects or insurance shocks.
How to protect your association in 2026: A simple board checklist
Use this as a working list at your next board workshop.
1. Legal & governance
- Review with HOA counsel whether you have implemented:
- AB 130 (fine cap)
- AB 2159 (elections / electronic voting)
- AB 572 (if you have affordable units)
- SB 900 (utility responsibility & reserves)
- SB 428 (harassment protections)
- Update rules & regulations, fine schedule, and election rules
- Document all changes in minutes and owner notices.
2. Budgets, reserves, and insurance
- Ask your reserve analyst to:
- Add utility lines (gas, water, electrical, heat) as separate components if not already there. (SilvercreekAM.com)
- Confirm that replacement costs and inflation factors are realistic for 2026.
- Build your 2026 budget assuming notable insurance increases and communicate early. (SilvercreekAM.com)
- Meet with your broker to review:
- Policy limits and deductibles
- Wildfire and catastrophe exposures
- Possible credits for mitigation work
3. Risk management and operations
- Formalize inspection and maintenance schedules (roofs, drainage, lighting, vegetation).
- Keep a central file of all risk-mitigation work (photos, invoices, reports).
- Train managers, board members, and key volunteers on:
- De-escalation and proper communication with residents
- Harassment and workplace violence policies (SB 428)
4. Communication with homeowners
- Prepare a simple summary letter or newsletter piece:
- “What’s changing in 2026”
- “How it affects our budget and rules”
- “What the board is doing about it”
- Host a short Q&A at your annual meeting to walk owners through the big changes.
If you’re an HOA board member in Los Angeles, Montrose, Glendale, Pasadena, Burbank, West Hollywood, or nearby areas and you want help getting 2026 right, JPMC can partner with you on budgets, reserves, insurance strategy, and day-to-day management. —start a quick consult with JPMC.
Deck / TL;DR – 2026 for HOAs in LA
- New laws cap most fines at $100 and tighten election and maintenance rules.
- Insurance premiums are expected to rise again in 2026, especially in wildfire-exposed areas.
- Boards must update rules, budgets, and reserve studies to reflect AB 130, AB 2159, AB 572, SB 900, and SB 428.
- Good documentation of risk-mitigation and maintenance matters more than ever with insurers.
- Proactive boards that plan early for 2026 will protect property values and homeowner trust.
FAQs
Q: Do we have to change our fine schedule if we rarely fine people?
A: Yes. If your schedule allows fines higher than $100 for routine violations, it should be updated so it doesn’t conflict with AB 130—even if you don’t use it often. (SilvercreekAM.com)
Q: Is electronic voting mandatory for HOAs in California now?
A: No. AB 2159 allows, but does not require, electronic voting. Your board must choose to adopt it and amend election rules before using it. (SilvercreekAM.com)
Q: Our community doesn’t have “affordable units.” Does AB 572 still apply?
A: Probably not. AB 572 targets new associations with more than 20 deed-restricted affordable units. Many communities won’t meet that definition, but your legal counsel should confirm. (SilvercreekAM.com)
Q: How much should we budget for insurance increases in 2026?
A: Statewide projections and industry commentary suggest high single- to low double-digit increases on average, with more in high-risk areas. Planning for at least ~10% is a conservative starting point, but your broker can give a better local estimate. (SilvercreekAM.com)
Q: Do all HOAs have to file under the Corporate Transparency Act?
A: Not all, but many do. Whether your association is a “reporting company” depends on how it’s structured and whether any exemptions apply. This is a legal/accounting question—check with your attorney or CPA. (davis-stirling.com)
What to do next
- Put a 2026 Readiness Workshop on the agenda: 30–45 minutes with management, legal counsel, or a consultant.
- Order or update your reserve study with proper utility line items and current replacement costs.
- Schedule a 2026 insurance strategy call with your broker and document risk-mitigation steps.
— External Sources —
[1] Silvercreek Association Management – What New California Legislation Means for Your HOA (Late 2025) (SilvercreekAM.com)
[2] Silvercreek Association Management – Anticipating 2026 Insurance Rate Hikes: What HOAs Can Do Now (SilvercreekAM.com)
[3] Davis-Stirling – Corporate Transparency Act: Impact on HOAs (davis-stirling.com)
[4] McKinsey – Forging a resilient future for California’s homeowners and insurers (McKinsey & Company)
[5] Climate Integrity – Premiums on Fire: Updated 2025 Report on Insurance Costs (climateintegrity.org)
(Remember: this article is general information only and not legal or financial advice. Boards should consult qualified professionals.)