If you're a member of a California Homeowners Association (HOA) for a condominium or other common interest development, understanding Senate Bill 326 (SB-326) is not just recommended, it's required. This law mandates the inspection of Exterior Elevated Elements (EEEs) to ensure the safety and structural integrity of balconies, decks, stairways, and walkways. Unlike its counterpart affecting apartments (SB-721), SB-326 has specific requirements that condo HOAs need to navigate.
Signed into law in 2019, Senate Bill 326 (California Civil Code Sec. 5551) was enacted to address the safety of EEEs in common interest developments. The law stemmed from the recognition of the dangers posed by deteriorating EEEs, tragically highlighted by events like the Berkeley balcony collapse.
For HOAs, SB-326 matters because it places a clear legal responsibility to have these elements inspected periodically. This is crucial for preventing accidents, protecting residents, and fulfilling the HOA's fiduciary duty to maintain the property.
SB-326 applies to common interest developments (condominiums) with three or more attached units. You can determine if your property is classified as a common interest development under California Civil Code ยง4100.
The law requires the inspection of "Exterior Elevated Elements." SB-326 defines EEEs as the load-bearing components together with their associated waterproofing system. This includes:
These inspections are particularly critical because, as experience has shown, serious damage can be hidden from view with no visible signs on the exterior.
To ensure the rigor and accuracy of the inspection, SB-326 has specific requirements for qualified professionals. Only a Licensed Architect or a Licensed Structural Engineer can perform SB-326 inspections and stamp the inspection report. Unlike SB-721 (which was amended), licensed contractors and certified building inspectors are not permitted to perform these inspections for condos under SB-326.
This is a key difference between SB-326 and SB-721. Instead of a set percentage, SB-326 requires a "random and statistically significant sample" of EEEs to be inspected. The law defines "statistically significant sample" as a sufficient number of units inspected to provide 95 percent confidence that the results reflect the whole, with a margin of error no greater than plus or minus five percent.
This often means a substantial percentage of EEEs will need to be inspected, particularly in smaller complexes, to meet the 95% confidence level. The reason for this more rigorous requirement is likely tied to the way condominiums are often constructed in phases with potential variations in materials, crews, and timelines between phases, making a smaller sample less reliable for extrapolating findings across the entire property.
The inspector is required to generate a random list of locations for each type of EEE and follow that list precisely for the inspection.
The first deadline for compliance with SB-326 was January 1, 2025. Subsequent inspections must be completed every nine years thereafter, and the inspection report must be incorporated into the HOA's reserve study.
If an inspection reveals conditions that pose an immediate threat to the safety of occupants, the inspector must report this to the local enforcement agency within 15 days. The HOA must immediately take preventive measures, such as preventing access to the affected EEEs, until emergency repairs are completed and approved by the enforcement agency.
For non-critical repairs, SB-326 does not specify a strict timeline for completion. However, since the inspection report and recommended repairs are incorporated into the reserve study, the costs will be factored into HOA fees, and the HOA board has a fiduciary duty to address necessary repairs in a timely manner.
HOAs are required to keep copies of at least two inspection cycles worth of EEE inspection reports in their association records.
Navigating SB-326 requires a clear understanding of the requirements and proactive planning. Engaging qualified professionals with experience in EEE inspections for common interest developments is crucial. Don't wait to address this important mandate.
Contact The Balcony Assurance Group today to learn how we can help your HOA achieve and maintain compliance with California's SB-326.