Understanding SB 721
For many property owners, managers, and contractors, these projects have become a source of real stress and sleepless nights. We continue to navigate legislation that is often vaguely written while doing our best to comply with evolving standards, rising insurance costs, and increasing material and labor expenses, all while rental income has remained relatively stagnant.
Let’s jump into it. If you haven’t heard of Senate Bill 721 yet, congratulations on your peaceful
existence over the past few years. Inspection deadlines have now passed, and city housing inspectors are beginning to request proof of compliance reports during systematic code enforcement inspections.
The purpose of SB 721 was straightforward: to help ensure that elevated exterior elements that support human life are structurally sound and free of conditions that could place occupants at risk through evaluation by a qualified professional. It was not intended to generate meaningless paperwork or create a false sense of security through incomplete evaluations.
The Problem With “Drive-By” Inspections
Over time, we’ve coined the term “drive-by inspections” to describe inspections that rely solely on surface-level observations of balconies, walkways, and stair landings without opening
concealed assemblies for proper evaluation. These inspections often lean heavily on moisture meters, infrared imaging, or visual observations alone.
The problem is that many of the most serious structural deficiencies are not detectable through these methods alone. In Southern California’s dry climate, deteriorated framing is often not actively wet at the time of inspection, making moisture readings unreliable as a standalone evaluation method. There are several reasons this becomes problematic, especially because property owners may still retain liability if a failure occurs after the inspection and reporting process has been completed. If an inspection consists solely of walking the property, taking photographs, and generating a visual report without evaluating concealed structural components, property owners should carefully consider what information is actually being obtained and whether the inspection meaningfully reduces risk.
Of course, this discussion primarily applies to exterior elevated elements that are concealed with stucco soffits on the underside and waterproofed walking surfaces above. If framing is fully exposed and visible, a visual inspection alone may be sufficient. However, when structural components are concealed, selective openings on the underside are a necessary part of a thorough evaluation.
Why Concealed Framing Matters
How much should be opened? That is ultimately left to the judgment of the inspector or design professional performing the evaluation. In our experience, multiple openings throughout each inspected element are important to establish a representative understanding of the structure’s condition. Areas near railing post connections, edge framing, beam connections, and other high load or high-moisture locations are often good places to begin.
Borescopes have become a popular tool for viewing inside joist bays during inspections, but it is important to also consider what happens after the inspection is complete. How will these penetrations be sealed? If the stucco soffit is part of a rated assembly, are the sealed penetrations restoring the original performance of the system?
Image quality is another important consideration. We have reviewed many reports that relied heavily on borescope imaging, and in some cases the photographs were unclear, poorly documented, or inconclusive. This can create situations where additional openings are later recommended by the inspector in order to properly evaluate the structure. Some companies have started using more creative approaches that allow for clearer documentation and easier future access. One example is the installation of ember-resistant soffit vents at inspection locations, which can provide improved visibility into concealed framing, while also adding ventilation that may help reduce moisture buildup if a future waterproofing failure occurs.
Repair Plans and Engineering Costs
Once the inspection report is complete, the next phase typically involves repair recommendations and, in some cases, engineering plans. If repair plans are being offered directly through the inspection company, obtaining a second or third opinion can be worthwhile, particularly for larger projects.
We have seen significant variation in pricing for balcony repair plans. While every project is different, many common balcony waterproofing and minor structural repair plans are relatively straightforward for experienced professionals and should be priced accordingly.
More complex projects involving extensive framing replacement, beam design, shoring requirements, structural analysis, or larger buildings may reasonably require additional engineering time and higher design costs. However, property owners should understand what they are paying for and ask questions about the complexity and scope of the proposed design work before proceeding.
Waterproofing, Permits, and Certification
Waterproofing replacement projects in some jurisdictions may qualify for over-the-counter permits, particularly when the scope is limited to repair and replacement of existing assemblies. During these projects, all plywood or sheathing should be removed and replaced so that the underlying framing can be fully evaluated during construction.
These projects involve multiple city inspections throughout construction, including rough framing inspection, plywood nailing inspection, lath inspection, and final inspection. The waterproofing assembly itself is generally installed in accordance with manufacturer specifications and approved system details.
Many waterproofing manufacturers require installation by certified applicators in order for warranty coverage to apply. Property owners should verify both the installer’s certification status and the warranty requirements for the selected system before construction begins.
California Building Code requires waterproofing systems to have an approved ICC (International Code Council) Evaluation Report, meaning the assembly has undergone testing and has been approved for its intended application.
Waterproofing replacement on elevated exterior elements always requires a permit and city oversight. If a contractor is telling you that permits are not necessary for a full waterproofing
replacement project, get another estimate from someone who is confident in their work, comfortable with city inspections, and willing to follow the law. If a contractor is comfortable ignoring permitting requirements, property owners should reasonably question what other shortcuts may be taken during construction. Having a building inspector review rough framing, plywood attachment, lath installation, and final waterproofing details adds another layer of accountability that benefits both the property owner and the contractor. These assemblies support human life, which makes proper inspections throughout construction extremely important.
These projects often involve elevated work areas, scaffolding, and fall exposure. Property owners should verify that contractors carry active general liability insurance and valid workers’ compensation coverage for employees performing the work.
There is an old saying that “everyone can afford to do it right the second time,” but balcony and waterproofing projects are one area where property owners should aim to do it right the first time. If your elevated walking surfaces are repaired properly, your waterproofing contractor should not become the person you repeatedly call every rainy season for leaks, failures, or recurring balcony issues over the next 10 to 20 years.
A properly installed and maintained waterproofing system should generally require only routine maintenance and periodic resurfacing as the top surface color coat wears over time, often in accordance with the manufacturer’s maintenance schedule or warranty requirements. Of course, if you simply enjoy your contractor’s company and want to stay friends after the waterproofing is complete, that is a different story entirely. We fully support birthday cards and occasional lunches under structurally sound balconies.
Flashing: The Small Detail That Causes Big Problems
One of the most common causes of balcony deterioration is improper or incomplete flashing. In many cases, the waterproofing membrane itself is not the first thing to fail.
We frequently encounter balconies where edge metal was improperly installed or missing altogether. Scuppers are especially vulnerable areas because this is where most installation errors are seen. Over time, small amounts of water intrusion can lead to concealed dry rot, corrosion of metal lath and fasteners, staining, stucco deterioration, and structural framing damage.
Almost anyone can trowel or roll waterproofing material onto the surface of a deck. What separates a long-lasting waterproofing system from a recurring problem is everything that happens before the coating is applied. Full waterproofing replacement projects involve demolition, proper sloping, plywood nailing, flashing integration, and proper waterproofing assembly.
Railing Repairs and Liability
Railings are considered life safety components, and even seemingly minor modifications can trigger code compliance requirements related to structural attachment, guard height, spacing, and load resistance. Improperly secured railings are one of the more common deficiencies found during balcony investigations. Movement at railing connections can create cracks in the waterproofing system, allowing water intrusion to occur over time.
Current California Building Code (CBC) guardrail height requirements are generally 42 inches measured from the deck surface to the top of the guardrail. Existing railings can often be retrofitted to meet current codes, but permits are still required because the railing connection to the structure must be evaluated and inspected.
Coatings on railings are also something to consider. Powder coating is one of the most durable finishes available, but only if applied properly. The metal should be thoroughly cleaned and properly primed prior to powder coating for the longest-lasting finish. Property owners should verify whether primer is included as part of the coating system listed in the estimate. If painting railings instead, urethane-based paints are a durable option because they provide a higher-build finish that helps resist scratches from keys, rings, and general wear.
Confusion Aside, Choose to Put Safety First
The challenge moving forward is ensuring inspections and repairs are performed in a way that meaningfully evaluates risk rather than simply generating paperwork or cutting into repair budgets to satisfy a deadline.
More thorough inspections can also help prevent unnecessary repairs by providing a clearer understanding of the actual condition of the structure. In some cases, limited or inconclusive evaluations may result in overly broad repair recommendations simply because the concealed conditions were never properly verified in the first place.
Balcony inspections and repairs are not just about compliance. They are about understanding how these assemblies perform, how they fail, and how to properly maintain them before small issues become major structural problems.
Miko Development is led by General B Contractor and C-8 Concrete Contractor Michelle Durey, who brings over 10 years of expertise in the multi-family construction industry. By staying informed about local laws, building codes, and housing regulations, Michelle serves as a reliable and proactive resource for property owners and management companies. Serving the South Bay and Orange County, Miko Development specializes in SB-721 inspections and balcony repairs, waterproofing, stucco, soft story seismic retrofitting and structural restoration. Contact by telephone: (213) 263-6456 or by email: michelle@mikodevelopment.com.


