Balcony Safety Laws SB 326, SB 721, and the Newly Updated SB 410 Have Entered Full Enforcement
California property managers are urged to act on SB 721, SB 326, and new SB 410 rules that tighten inspection requirements for apartment buildings and condominium associations.
California property managers overseeing apartment communities and condominium associations are facing escalating compliance demands as thousands of structures across the state remain past due for required inspections, and early findings reveal widespread concealed wood deterioration in elevated elements. With insurers, lenders, and real estate professionals beginning to require evidence of compliance, delays may soon hinder sales, refinancing, or insurance renewals.
The California Department of Real Estate, legal experts, and inspection professionals continue to advise property managers to take immediate action. “Consumer protection is the Department of Real Estate’s top priority. With that, we encourage all licensees managing properties affected by this new law to take a proactive approach,” said Chika Sunquist, DRE Commissioner. “Partner with the appropriate licensed professionals now to ensure the safety of residents and full compliance with requirements.”
SB 721 Apartments Ongoing Six-Year Inspection Cycle
SB 721 governs apartment buildings with three or more multifamily dwelling units and requires recurring inspections of elevated exterior structures every six years. Unlike SB 326, this mandate applies to rental housing and may be performed by licensed contractors, engineers, or architects.
Property managers responsible for both HOAs and apartment communities now operate under two separate regulatory frameworks, each with different inspection intervals, documentation requirements, and enforcement mechanisms. This dual compliance environment has contributed to statewide backlogs as inspection schedules tighten and repair needs increase.
SB 326 Condominiums Inspection Deadline Passed January 1, 2025
SB 326 applies specifically to condominium associations and requires structural evaluations of Exterior Elevated Elements (EEE) constructed with wood or wood-based materials. These include balconies, decks, bridges, stairways, catwalks, walkways, and similar load-bearing elevated structures.
“SB 326 applies specifically to California condominium projects with three or more attached units and requires inspections of exterior elevated elements, such as decks, balconies, and walkways, by a licensed structural or civil engineer or architect,” said Laurie S. Poole, Co-Managing Partner at Adams-Stirling, PLC. Under Civil Code §5551, these first inspections were due by January 1, 2025.
The law was created following the 2015 Berkeley balcony collapse, which caused multiple fatalities and revealed extensive concealed dry rot within enclosed structural framing. The incident exposed vulnerabilities in aging wood-based structures and demonstrated the necessity of periodic intrusive evaluation. Like apartments, condominiums require recurring inspections of elevated exterior structures every nine years
Since the January 1, 2025, deadline, inspection professionals continue to report a large number of community associations that either missed the deadline entirely or remain uncertain about their reporting and documentation obligations under SB 326.
SB 410 2024 Update: Strengthened Compliance Requirements for Condominiums
Signed in 2024 and going into effect in January 2026, SB 410 clarifies and expands the enforcement mechanisms of SB 326 by standardizing reporting and documentation requirements, refining definitions and technical criteria for elevated elements, and establishing new timelines for associations to respond to inspection findings. The law also aligns inspection obligations with evolving insurance underwriting practices, reflecting increased scrutiny from insurers, and introduces greater accountability for boards and managers who delay inspections or fail to initiate required repairs. Overall, SB 410 reinforces the expectation that associations complete their SB 326 inspections promptly, with noncompliance potentially increasing legal exposure for property managers, boards of directors, and associations.
Widespread Hidden Damage Identified in Multifamily and HOA Buildings
Across California, a significant percentage of inspections reveal damage that remains invisible from exterior surfaces. Because many elevated elements are enclosed with stucco, waterproofing membranes, or soffits, deterioration often goes undetected until a professional evaluation is performed. Statewide inspection data indicate that 20–60% of assessed buildings exhibit different types of damage, including dry rot from prolonged moisture intrusion, failed or aged waterproofing systems, corroded or compromised hardware and connectors, distorted or sagging load-bearing components, and damage resulting from UV exposure and extended deferred maintenance. These conditions pose direct life-safety risks, and as awareness grows, lenders, insurers, real estate agents, and due diligence professionals are increasingly requiring proof of SB 326 or SB 721 compliance as part of underwriting, closing escrow, or loan qualification.
Impact on Sales, Refinancing, and Insurance
Buildings that lack required balcony inspections may soon encounter a range of financial and administrative obstacles, including non-renewal or denial of property insurance, delays or cancellations in real estate transactions, and financing challenges for both buyers and associations seeking loans. Many communities may also face emergency or special assessments to cover unanticipated repair needs, along with increased liability exposure for association boards and property management firms. As statewide enforcement tightens and insurers continue adjusting their risk models in response to structural failures, climate impacts, and historical loss patterns, compliance with SB 326 and SB 721 is becoming increasingly essential to maintaining marketability and financial stability.
Recommended Actions for Apartment Property Managers and Associations
Property managers overseeing apartment or condominium communities are encouraged to take several proactive steps to maintain compliance and reduce potential financial or safety risks. These include scheduling required SB 326 or SB 721 inspections without delay, particularly for properties that have missed deadlines, while ensuring that only qualified professionals, such as licensed engineers, architects, or properly licensed inspection firms, perform the evaluations. Managers should also prepare their communities for possible repair needs based on inspection results, maintain comprehensive documentation of reports, repairs, and board actions, and educate both residents and boards about the legal and safety obligations associated with these inspection laws. In addition, planning for recurring inspections, especially under SB 721’s six-year cycle for apartment buildings, is essential. Taking these measures early may help prevent disruptions related to insurance coverage, lender requirements, or real estate transactions.
Michael Malki is CEO of South Coast Deck Inspections (a dba of Malki Construction, Inc., CSLB #1118042). For more information, please visit www.SouthCoastDeckInspections.com or reach out to 657-707-9127 or [email protected].