SB 326 Requirements for CA Condos

California’s Senate Bill 326 is one of the most significant pieces of legislation affecting condominium associations in the state’s history. Signed into law in 2019, SB 326 requires mandatory inspections of elevated exterior elements — balconies, decks, walkways, and stairways — in condominium buildings with three or more units.

If your association has not yet completed its SB 326 inspection, time is running out. Here is everything your board needs to know about the requirements, deadlines, and how these inspections connect to your community’s reserve study.

What Is SB 326?

SB 326 (also known as the Balcony Inspection Law) was enacted after several high-profile balcony collapses in California caused injuries and deaths. The most notable incident was the 2015 Berkeley balcony collapse that killed six people, caused by dry rot in load-bearing joists that went undetected for years.

The law added Civil Code Section 5551 to the Davis-Stirling Act, requiring associations to hire licensed professionals to inspect exterior elevated elements and the waterproofing systems that protect them. The goal is to identify structural deterioration before it becomes a safety hazard.

Which Buildings Are Affected?

SB 326 applies to condominium associations (common interest developments governed by the Davis-Stirling Act) that have buildings with three or more multifamily dwelling units containing any of the following:

• Balconies
• Decks
• Exterior walkways
• Exterior stairways
• Elevated platforms that are more than six feet above grade
• Associated waterproofing systems (membranes, coatings, flashing)

If your building has exterior elements that people walk on and that extend beyond the building envelope, SB 326 almost certainly applies.

Single-Family and Townhome Exceptions

SB 326 specifically targets condominium associations. Planned developments with detached single-family homes are generally not covered. However, townhome communities with shared elevated walkways or stairways may still fall under the law depending on their governing documents and structural configuration. When in doubt, consult a construction attorney.

SB 326 Inspection Timeline and Deadlines

The original law established a phased deadline structure:

• Initial inspections must be completed by January 1, 2025.
• After the initial inspection, subsequent inspections are required at least once every nine years.
• Inspections must be completed at least nine months before the expiration of the association’s current nine-year inspection cycle.

If your association missed the January 2025 deadline, you are currently out of compliance with state law. This exposes your board to potential personal liability and creates issues with insurance carriers, lenders, and prospective buyers. The best course of action is to schedule an inspection immediately.

Who Can Perform SB 326 Inspections?

SB 326 requires that inspections be performed by a licensed structural engineer or a licensed architect. General contractors, home inspectors, and reserve study specialists are not qualified under the statute to perform these inspections.

The inspector must:

1. Conduct a visual inspection of a representative sample of exterior elevated elements (not less than 15% of each type of elevated element).
2. If visual inspection reveals signs of deterioration, the inspector may require further invasive or destructive testing (opening up walls, removing finishes) to assess the extent of damage.
3. Provide a written inspection report to the association’s board.

The report must include:

• The current condition of the inspected elements
• The expected future useful life of the components
• Repair recommendations with cost estimates
• A statement about whether any elements pose an immediate threat to safety

What Happens If Problems Are Found?

If the inspection reveals conditions that pose an immediate threat to the health or safety of residents, the inspector is required to:

1. Notify the association immediately (in writing, within 15 days).
2. The association must take preventive measures right away — this may mean barricading unsafe balconies, restricting access to walkways, or evacuating affected units.
3. The association must apply for a repair permit with the local building department within 120 days of receiving the report.

For non-emergency repairs, the association must include the recommended work in its reserve study and budget accordingly. This is where the connection between SB 326 and reserve planning becomes critical.

SB 326 vs. SB 721: What’s the Difference?

California has two parallel balcony inspection laws, and boards frequently confuse them:

	SB 326	SB 721
Applies to	Condominium associations (Davis-Stirling)	Apartment buildings (rental properties)
Governing code	Civil Code 5551	Health & Safety Code 17973
Building threshold	3+ multifamily units	3+ multifamily units
Inspector	Licensed architect or structural engineer	Licensed architect, structural engineer, or contractor with relevant license
Inspection cycle	Every 9 years	Every 6 years
Initial deadline	January 1, 2025	January 1, 2025
Sample size	15% of each element type	Statistically significant sample
Emergency notification	15 days to notify board	15 days to notify owner

The key distinction is ownership structure. SB 326 applies to associations where individual owners own their units. SB 721 applies to rental apartment buildings where a single entity owns the entire property. Some mixed-use properties may need to comply with both.

How SB 326 Connects to Reserve Studies

SB 326 inspections and reserve studies are deeply intertwined. Here is why:

Inspection Results Feed the Reserve Study

The condition assessments and cost estimates from your SB 326 inspection should be incorporated into your association’s reserve study. If the inspection reveals that balcony waterproofing needs replacement in five years at a cost of $250,000, that expense must be reflected in the reserve fund’s 30-year funding plan.

Reserve Funding Pays for Repairs

When SB 326 inspections identify needed repairs, the money to pay for those repairs comes from the reserve fund. Associations with underfunded reserves will face special assessments to cover the cost — exactly the outcome proper reserve planning is designed to prevent.

Coordinated Timing Saves Money

Smart boards coordinate their SB 326 inspections with their reserve study cycle. Having the reserve study specialist and the structural engineer work from the same information ensures accurate cost projections and eliminates redundant site visits.

Legal Compliance Requires Both

California law requires both a current reserve study (Civil Code 5550, every three years) and SB 326 compliance (Civil Code 5551, every nine years). Boards that neglect either obligation are not meeting their fiduciary duty to the membership.

For a comprehensive overview of California’s HOA legal requirements, visit our California law guide.

What Your Board Should Do Now

If You Have Not Yet Completed an SB 326 Inspection

1. Hire a licensed structural engineer or architect experienced with SB 326 inspections. Ask for references from other condominium associations.
2. Budget for the inspection cost, which typically ranges from $2,000 to $10,000+ depending on building size and the number of elevated elements.
3. Budget for potential repairs. The inspection may reveal deficiencies that require immediate attention.
4. Notify homeowners about the inspection process, including any access requirements for individual units or balconies.

If You Have Completed Your Inspection

1. Update your reserve study to reflect the inspection findings and any recommended repairs. Contact us to discuss incorporating SB 326 data into your reserve plan.
2. Schedule and fund identified repairs according to the urgency levels in the inspection report.
3. Document everything. Keep the inspection report, board minutes discussing the findings, and all repair records. These are critical for insurance, resale disclosures, and future inspections.
4. Mark your calendar for the next inspection, due within nine years.

The Bottom Line

SB 326 is not optional, and the deadlines have already passed for initial inspections. Associations that ignore this requirement face legal liability, insurance complications, and — most importantly — safety risks for their residents.

The inspection itself is only the first step. What matters is what your board does with the results: incorporating findings into your reserve study, funding necessary repairs, and maintaining a proactive approach to building safety.

Apex Reserve Study helps California condominium associations integrate SB 326 inspection findings into comprehensive reserve plans. Contact us today for a free quote and ensure your community is both safe and financially prepared.