By Emilie de la Motte
The collapse of a cantilevered balcony in Berkeley, in which six college students lost their lives in 2015, prompted California to enact two important laws — SB 326 and SB 721 — to address structural safety concerns in multi-family residential buildings. These laws, known as the balcony inspection laws, primarily focus on the inspection and maintenance of exterior elevated elements (EEEs) such as balconies, decks, walkways, and stairways.
The deadline for compliance with both SB 721 and SB 326 is December 31, 2025, making it crucial these laws are understood by homeowners’ associations (HOAs), landlords, and property managers to ensure compliance and safety.
What is SB 326?
SB 326, also known as the “Balcony Inspection Law for HOAs,” was signed into law in 2019. It applies specifically to condominiums and other multi-family housing developments governed by HOAs. This law requires periodic inspections of EEEs that are supported by wood or wood-based products.
Key Provisions of SB 326:
- Applicability: Applies to condominium buildings with three or more dwelling units.
- Inspection Requirements: Inspections must be conducted by a licensed architect, structural engineer, or other qualified professional.
- Inspection Timeline: The first inspection must be completed by January 1, 2026, and subsequent inspections every nine years.
- Purpose: Identifies potential safety risks, water damage, and structural deterioration in common area elements that the HOA is responsible for maintaining.
- Report and Repairs: Findings must be documented in a report submitted to the HOA board, which is then responsible for addressing any necessary repairs.
What is SB 721?
SB 721, passed in 2018, is a similar law but applies to apartment buildings instead of condominiums. It mandates the inspection of EEEs in residential buildings, residential care facilities and mixed use properties with at least three units, excluding condominiums or individual single-family homes.
Key Provisions of SB 721:
- Applicability: Applies to rental apartment buildings with three or more units.
- Inspection Requirements: Inspections must be carried out by a qualified professional, such as a structural engineer, licensed contractor, or architect on balconies and walking surfaces more than 6-feet above ground level.
- Inspection Timeline: The first inspection is due by January 1, 2026, with re-inspections required every six years.
- Purpose: Identifies structural weaknesses, dry rot, and potential hazards in EEEs that could endanger tenants.
- Report and Repairs: Inspection results must be provided to the local building department upon identifying serious safety concerns. Landlords are required to complete necessary repairs within a prescribed timeframe.
Similarities Between SB 326 and SB 721
Both SB 326 and SB 721 aim to prevent tragedies like the 2015 Berkeley balcony collapse, to ensure the safety of exterior structures in multi-family buildings. Key similarities include:
- Focus on EEEs: Both laws require inspections of exterior elevated elements, including balconies, decks, stairways, and walkways.
- Qualified Inspectors: Both laws mandate that inspections be conducted by licensed professionals with expertise in structural integrity.
- Inspection Deadlines: The initial inspections under both laws must be completed by January 1, 2026.
- Periodic Inspections: Both laws establish regular inspection intervals—every nine years for HOAs (SB 326) and every six years for rental properties (SB 721).
- Repair Requirements: If significant defects are found, property owners and HOAs must take corrective action to ensure the safety of residents.
Two Laws, Two Purposes
Despite their similarities, the two laws have notable differences:
- Property Type: SB 326 applies to condominiums governed by HOAs, while SB 721 applies to apartment buildings with rental units.
- Reporting Obligations: Under SB 326, reports are kept within the HOA, whereas SB 721 requires notification to local building officials if significant safety concerns are identified.
- Inspection Frequency: SB 721 requires re-inspections every six years, whereas SB 326 mandates inspections every nine years.
- Responsibility for Repairs: HOAs handle repairs in SB 326, while landlords are responsible under SB 721.
Who Pays for the Repairs?
The financial responsibility for the necessary repairs depends on the type of property:
- For Condominiums (SB 326): The HOA is responsible for addressing common area defects, and repair costs may be covered through reserve funds or special assessments on unit owners.
- For Apartment Buildings (SB 721): The landlord bears the financial burden of repairs and may need to pass costs onto tenants through rent adjustments, subject to local rent control laws.
When Should a Building Owner or HOA Hire an Attorney?
Legal counsel can be invaluable in navigating compliance and mitigating liability. Property owners and HOAs should consider hiring an attorney in the following situations:
- Before the Inspection: To ensure compliance with legal requirements and contract with an appropriate inspector.
- After Identifying Defects: To understand legal obligations and potential liability exposure.
- For Disputes Over Repairs: If disputes arise between landlords, tenants, or HOA members regarding repair costs or responsibility.
- When Facing Enforcement Actions: If local building authorities issue notices of violation or penalties for non-compliance.
As of July 1, 2025 there are no published California court decisions explicitly addressing the allocation of balcony repair responsibilities under SB 326 when Covenants, Conditions, and Restrictions (CC&Rs) define balconies as common areas. This absence of case law means that SB 326’s inspection mandates and specific CC&R provisions remain untested in the courts. However, legal analyses and industry discussions suggest that, despite CC&Rs assigning maintenance responsibilities to individual owners, the HOA retains a duty to ensure safety through mandated inspections.
For Californians, SB 326 and SB 721 establish crucial safety protocols for multi-family residential properties in California. Building owners, landlords, and HOAs must be proactive in conducting timely inspections and addressing repairs to ensure compliance and protect residents. Understanding these laws and seeking legal counsel, when necessary, can help property stakeholders navigate their obligations and avoid potential liabilities.
Emilie de la Matte is a Partner at Carmel & Naccasha specializing in construction defect law, civil litigation, insurance coverage and defense and product liability. She is a versatile litigator who helps clients solve their most complex and difficult legal matters. If you have any questions about this article, please contact attorney Emilie de la Motte at edelamotte@carnaclaw.com or (805) 546-8785.
About Carmel & Naccasha
Founded in 2004, Carmel & Naccasha has offices in San Luis Obispo and Paso Robles. The firm’s lawyers focus their practice and provide exemplary client services in the areas of business transactions, real property, land use, commercial and employment litigation, trusts and estate planning, municipal law, and insurance coverage. For more information about Carmel & Naccasha, visit the website at www.carnaclaw.com
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