Senate Bill 326, signed into law in 2019, requires every California condominium HOA with three or more units to inspect its exterior elevated elements — balconies, decks, walkways, and stairways — on a recurring cycle. The initial inspection deadline was January 1, 2025. If your community has completed its inspection, this guide covers what comes next. If it hasn't, this guide covers what to do now.
Last updated: April 2026. We review this guide when the law or enforcement landscape changes.
What SB 326 requires
SB 326 added Civil Code §5551 to the Davis-Stirling Act. The law applies to any condominium (common interest development) that has:
- Three or more units (single-unit and two-unit buildings are exempt)
- Exterior elevated elements (balconies, decks, walkways, stairways, railings) that are:
- Supported substantially by wood or wood-based products (steel-framed balconies are not covered)
- More than six feet above ground level (ground-floor patios are not covered)
- Designed for human occupancy or use
If your community meets all three criteria — and most Bay Area condominiums and townhome communities do — SB 326 applies.
What "inspection" means under SB 326
The inspection is not a visual walkthrough. SB 326 requires a licensed structural engineer or licensed architect to:
- Conduct a visual inspection of the exterior elevated elements, including the waterproofing systems, load-bearing components, and associated railings
- Open and inspect a statistically significant sample of the elements if the visual inspection reveals conditions that warrant further investigation (this means destructive testing — cutting into walls, removing finishes — to assess hidden structural members)
- Issue a written report that includes:
- The current condition of each inspected element
- The expected remaining useful life of each element
- Recommendations for any necessary repairs
- A categorization of urgency: immediate safety hazard, needs repair within a defined timeline, or satisfactory condition
The report is an official association record and must be made available to members who request it. Under SB 410 (effective January 1, 2026), the report must also be included in seller disclosure packages for prospective buyers.
The deadline has passed — what happens now?
The initial SB 326 inspection deadline was January 1, 2025. As of April 2026, any condominium HOA that has not completed its inspection is over a year past the statutory deadline.
Is there a penalty for missing the deadline?
SB 326 itself does not specify a monetary penalty or enforcement mechanism for late compliance. There is no government agency actively auditing HOAs for SB 326 compliance — the California Department of Real Estate does not enforce Davis-Stirling, and local building departments do not have jurisdiction over HOA internal inspections.
However, the absence of a direct penalty does not mean there is no consequence. The liability exposure comes from three directions:
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Director duty of care. California Corporations Code §7231 requires HOA directors to act in good faith, with the care an ordinarily prudent person would exercise in a like position. A board that knows about the SB 326 requirement and fails to act is exposed to a claim of breach of fiduciary duty if a structural failure occurs. The defense of "we didn't know" is not available — the law has been in effect since 2020 and every HOA management company, HOA attorney, and industry publication has been communicating the deadline for years.
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Insurance coverage gaps. Many HOA insurance carriers are now asking about SB 326 compliance status at renewal. A community that cannot demonstrate compliance may face higher premiums, reduced coverage for structural claims, or explicit exclusion of balcony/deck-related claims from the policy. If an uninspected element fails and someone is injured, the carrier may deny the claim on the grounds that the board knew about the inspection requirement and did not act.
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Resale disclosure obligations. Under SB 410 (effective January 2026), sellers in condominiums must disclose the most recent SB 326 inspection report to buyers. If no inspection exists, the absence itself becomes a disclosure item — and a savvy buyer's agent will flag it. This can depress resale values or cause deals to fall through entirely.
What your board should do if inspections are not complete
- Schedule the inspection immediately. In the Bay Area, qualified structural engineers have backlogs of 3-6 months as of early 2026. Every month of delay adds to the wait.
- Budget for the inspection. For a typical Bay Area condominium community of 50-100 units, initial SB 326 inspections cost approximately $15,000-$40,000 depending on the number of elevated elements, the age of the building, and whether destructive testing is required. This is a reserve expenditure in most communities.
- Notify the membership. Under Davis-Stirling's open meeting requirements, the decision to commission an SB 326 inspection should be discussed at a board meeting. The cost, the selected inspector, and the timeline should be disclosed.
- Do not defer because of cost. The cost of inspection is a fraction of the cost of a structural repair — and a rounding error compared to the cost of a personal injury lawsuit arising from an uninspected balcony failure. A single balcony collapse in the Bay Area (see the 2015 Berkeley balcony collapse, which killed 6 people) resulted in settlements exceeding $40 million.
What happens after the inspection
If the report says "satisfactory condition"
File the report with your management company. Ensure it is available for member requests and seller disclosures. Calendar the next inspection — SB 326 requires re-inspection every 9 years from the date of the most recent inspection. If your initial inspection was completed in 2024, the next is due by 2033.
If the report recommends repairs
The inspector's report will categorize recommended repairs by urgency:
- Immediate safety hazard: The element must be restricted from use immediately (barricaded, posted with signage) until repairs are completed. The board must act on this within days, not weeks.
- Repair within a defined timeline: The inspector will specify a timeline — typically 6-24 months depending on the severity. The board should budget for these repairs in the current or next fiscal year.
- Monitoring / minor maintenance: Not urgent, but should be addressed before the next inspection cycle to prevent escalation.
Budgeting for repairs
SB 326 repairs are typically funded from reserves. If your reserve fund is not adequate to cover the repairs:
- Commission a reserve study update (or an emergency Level I study) to re-assess the funding plan in light of the new repair obligations
- Consider a special assessment if the shortfall is large and cannot be covered by increasing regular assessments over time
- Explore loan financing — several California lenders specialize in HOA loans for capital projects, including SB 326 remediation
- Do not defer repairs to avoid a special assessment. The board's fiduciary duty requires it to act on known structural deficiencies. Deferring a repair that the inspector has classified as urgent exposes every director to personal liability.
How SB 326 interacts with SB 800
If your community was built after January 1, 2003, some or all of the defects identified in an SB 326 inspection may be covered under SB 800 (the Right to Repair Act, Civil Code §§895-945.5). SB 800 allows the HOA to compel the original builder to repair construction defects — but only within the statute of limitations, which ranges from 1 to 10 years depending on the defect type.
Critical timing issue: If your SB 326 inspection reveals waterproofing or structural defects in a community built in 2015, the 10-year statute of limitations for some defect categories expires in 2025. If the inspection is not completed until 2026, the board may have lost the right to pursue the builder — even though the defect was discoverable earlier.
This is one of the strongest arguments for completing SB 326 inspections on time: the inspection report is the evidence that triggers the SB 800 claim. Without it, the clock runs out silently.
Frequently asked questions
Does SB 326 apply to townhomes?
It depends on the legal structure, not the building type. SB 326 applies to condominium common interest developments (where the HOA owns or is responsible for the building exterior). If your townhome community is structured as a planned development (where each owner owns their own exterior walls and roof), SB 326 may not apply — the owner, not the HOA, is responsible for their own balcony. Check your CC&Rs and the community's legal classification to confirm.
Does SB 326 apply to single-family home HOAs?
No. SB 326 applies only to common interest developments with shared exterior elevated elements that the HOA has a maintenance obligation for. Single-family home HOAs with no shared balconies, walkways, or elevated structures are not covered.
Who pays for the SB 326 inspection?
The HOA pays. The inspection is an association expense, typically funded from reserves. Individual homeowners do not pay separately for the inspection, though they may be assessed if the reserve fund is insufficient.
Can the HOA use its existing building inspector instead of a structural engineer?
No. SB 326 specifically requires a licensed structural engineer (P.E. with structural authorization) or a licensed architect. A general contractor, building inspector, or home inspector does not satisfy the requirement.
How much does an SB 326 inspection cost in the Bay Area?
For a typical Bay Area condominium community of 50-100 units, expect $15,000-$40,000 for the initial inspection. Larger communities or those requiring extensive destructive testing may exceed this range. The cost is driven by: the number of elevated elements, the age and construction type of the buildings, and whether the visual inspection triggers a requirement for invasive/destructive investigation.
What is the re-inspection cycle?
Every 9 years from the date of the most recent inspection. If your initial inspection was completed in 2024, the next inspection is due by 2033. There is no option to extend or waive the cycle.
Can the board be held personally liable for not completing SB 326 inspections?
Yes. Under the director duty of care (Corporations Code §7231) and the business judgment rule, a board member who knows about the SB 326 requirement and votes to defer or skip the inspection is exposed to a claim of breach of fiduciary duty if a structural failure occurs. The protection of the business judgment rule applies only when directors act on informed judgment — knowingly ignoring a statutory inspection mandate is the opposite of informed judgment.
This guide is written by Lawson Pan, Founder & CEO of nexova ai. It is intended as an educational resource for HOA board members and is not legal advice. For legal questions about your community's SB 326 obligations, consult a California attorney specializing in common interest development law.
Sources: California Civil Code §5551, SB 410 (2025), Corporations Code §7231.