The California Law That Could Leave Condo Owners on the Hook for Costly Repairs

Balconies and decks are prized features of California condos, but they also pose serious safety risks if not properly maintained. Following high-profile structural failures, the state passed a new balcony law requiring condo owners and homeowners associations (HOAs) to conduct regular inspections and address safety concerns.

If you own a condo or serve on an HOA board, understanding this law is crucial—not just to stay compliant, but to protect property values and ensure resident safety.

What Is the New Balcony Law?

California’s new law, often referred to as SB 721 and SB 326, requires inspections of “exterior elevated elements” such as:

  • Balconies

  • Decks

  • Walkways

  • Stair systems

These inspections must be carried out by licensed professionals to ensure structural integrity and safety.

Key Requirements for HOAs

For condominium HOAs under SB 326:

  • Initial Inspections: Associations must complete their first inspection by January 1, 2025.

  • Frequency: Inspections must be repeated every 9 years.

  • Scope: A statistically significant sample of balconies and exterior elements must be inspected.

  • Reporting: Results must be documented and shared with the HOA board, with repairs scheduled promptly if issues are found.

Failure to comply could expose HOAs to liability, fines, or lawsuits if structural failures occur.

What Condo Owners Need to Know

If you own a condo in California, here’s why this law matters:

  • HOA Dues May Increase: Inspection and repair costs are shared among owners. Budget for possible special assessments.

  • Disclosure Obligations: When selling your unit, inspection reports may need to be disclosed to potential buyers.

  • Peace of Mind: While compliance comes with costs, it also enhances safety and preserves property values.

Financial Implications

HOAs should plan ahead by:

  • Updating Reserve Studies to include inspection and repair costs.

  • Communicating with Owners early to avoid surprises when special assessments are needed.

  • Seeking Competitive Bids from licensed engineers or architects to manage expenses.

Why This Law Matters

California’s climate accelerates wear-and-tear on wood and concrete structures. Balconies, in particular, are vulnerable to water damage that can remain hidden until it’s too late. This law ensures:

  • Safety of residents and guests

  • Preservation of property values

  • Reduced liability for HOAs and owners

Conclusion

The new balcony law in California represents a significant shift in how HOAs and condo owners must manage their properties. While compliance requires planning and investment, it ultimately protects lives and enhances the long-term value of your community.

If you’re a condo owner or HOA board member, now is the time to get educated, schedule inspections, and budget for ongoing compliance.

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