SB 326: What California Homeowners Need to Know

California has a clear and renewed focus on building safety, that, like so many that came before it, was born from heartbreak. In 2015, a balcony collapse in Berkeley claimed the lives of six students. This revealed a hidden (and all-too-common) danger: the quiet deterioration of balconies, decks, walkways, and other infrastructure in aging multi-unit buildings.

While these structures often look structurally sound from the outside, years of unnoticed water damage and dry rot are often lurking behind the scenes. To solve this issue, California passed Senate Bill 326 (SB 326) in an effort to make it easier for communities to take proactive action regardless of appearances and budgets.

Requiring professional inspections and ongoing maintenance, this law gives HOAs the resources to preserve their property values and, more importantly, uphold the safety of everyone who might call their community home.

If you’re serving on an HOA board, you’ve likely already heard about SB 326, and perhaps felt nervous about what it might mean for your community’s budget.

And that anxiety is legitimate, as implementing and upholding this law will cost money. There’s no way around it.

However, understanding the intricacies of the law is your first step in putting your mind at ease. That’s exactly what we’ll do in this guide.

What is SB 326?

SB 326 requires mandatory structural inspections for condominium associations with buildings of three or more attached units. The requirements are codified in Civil Code §5551. If you serve on the board of a condominium association, you need to understand that this bill marks a major step forward in community safety.  

These regular inspections are needed for all Exterior Elevated Elements (EEEs), including balconies, decks, stairways, and walkways, with the goal of preventing full structural failures like the ones we saw in the devastating Berkeley collapse.

The law covers exterior elevated elements: load-bearing components, together with their waterproofing, that meet every one of these conditions. They extend beyond the exterior walls of the building to carry loads from decks, balconies, stairways, walkways or their railings; they have a walking surface elevated more than six feet above ground level; they are designed for human occupancy or use; and they are supported in whole or in substantial part by wood or wood-based products. Components supported in whole or in substantial part by wood or wood-based products are the ones the law covers.

Of course, thorough inspections like these are important for compliance, but also for protecting your neighbors and property values. Essentially, if yours is a condominium association with a building of three or more attached units and wood-supported balconies, decks, stairways or walkways more than six feet above ground, SB 326 applies to you.

How Much Will Implementing SB 326 Cost?

Inspection costs vary with the size and complexity of the property. However, the costs don’t always end there, as inspectors may find damage that needs fixing, and the repairs also fall under the purview of SB 326.  

These could be as simple as a misplaced board here or there, or as costly as a full remodel. Given that the repairs for a single deteriorated balcony, the culprit in the tragedy that inspired the creation of the bill, can be costly, it’s easy to see how the costs can add up (especially when multiplied across multiple units).

What does SB 326 require?

An SB 326 inspection isn’t just something that can be subcontracted out to the cheapest bidder. Under state law, only a licensed structural or civil engineer or a licensed architect is qualified to conduct and certify an inspection. Your property manager, maintenance team, or general contractor, no matter how capable they might be, cannot sign off on this work.

Therefore, it’s important that you go about the process of selecting an inspector in a thoughtful way, rather than simply viewing it as checking off a box. You’ll want someone who will get things done right the first time, with accuracy, accountability, and safety from the very start. These findings, after all, will shape the maintenance priorities and reserve planning of your community for the next decade, so you want to get it done right.

The Process

The process of an SB 326 inspection is more scientific and precise than many people assume. Inspectors must evaluate a statistically significant sample of your EEEs to achieve 95% confidence in their findings. The margin of error can be no greater than ±5%.

The simple translation of this is that they don’t need to test every single balcony in your building, but they do need to test enough of them to confidently assess your building’s overall health.

You can expect your inspector to use tools like borescope cameras, moisture meters, and other minimally intrusive methods so they can detect hidden decay, water intrusion, or rot. These might not always be visible to the naked eye, which is where specialized tools and tailored expertise become so important. Through these measurements, the goal is to catch problems early, ideally before they morph into major safety hazards or expensive repairs.

The Deliverables

When the inspection is complete, your HOA will receive a formal, signed report that includes the following information:

• The current condition of your EEEs.

• The estimated remaining useful life of key load-bearing and waterproofing components.

• A prioritized list and timeline for any recommended repairs.

As a volunteer board member, what you do with this report is one of the most important ways you can fulfill your fiduciary duty, so don’t just file this document away when you receive it.  

Instead, keep it handy and use it as part of your future decision-making process. In addition, the law requires the findings to be incorporated into your HOA’s reserve study. That way, you can make sure your community’s long-term maintenance and financial decisions are based on real, data-driven insights, rather than guesswork.

What are the SB 326 deadlines?

SB 326 establishes a few different starting points for existing buildings and new construction. Regardless, don’t wait around for the deadline.

Be proactive if you want to protect yourself from serious legal and financial risks (and keep your community safe).

The Initial Inspection

Indeed, a common mistake HOAs make is assuming there’s plenty of time to get these inspections (and subsequent repairs) wrapped up.  

However, structural engineers and architects who are qualified to perform SB 326 inspections are already in high demand. The longer you wait around to book, the harder (and more expensive) the entire process gets. More worrisome, you risk falling out of compliance.

Ongoing Inspections

Once the initial inspection has been completed, you can’t just continue on with business as usual. You’ll need to conduct ongoing inspections at a frequency predetermined by the state of California if you wish to remain in compliance. It may be helpful to frame SB 326 as a recurring health check-up for your buildings, rather than a one-off project.

Every nine years after the initial inspection, your HOA must repeat the SB 326 inspection process as described earlier in this article.  

Again, each report must feed directly into your Reserve Study. This way, repair costs and remaining component lifespans will be built into your long-term financial plan, and safety and budgeting will be inherently linked in a smarter, more sustainable way. Because of this, you may find it helpful to align your inspection cycle with your Reserve Study updates to streamline planning and avoid unnecessary duplication.

Repair and Reporting Stages

Remember, your inspection report will become your roadmap for future planning, but don’t just wait until it’s convenient to schedule repairs. If the inspector identifies immediate safety hazards, the HOA needs to act swiftly to repair or restrict access to those areas.

In your report, any repairs will be categorized under two tracks: urgent hazards requiring prompt attention, or routine maintenance and longer-term repairs that can be budgeted for over time.

Maintaining Documentation

Paperwork is protection, especially for HOA management. If the inspector finds an immediate threat, the report goes to the association at once and to the local code enforcement agency within 15 days, and the findings must be incorporated into the reserve study.  

After the meeting, keep every inspection report, repair invoice, and maintenance record for at least two inspection cycles (up to 18 years). If there is ever a dispute or claim, this paper trail will serve as your first line of defense.

What are the Consequences of Not Complying with SB 326?

The stakes of ignoring or neglecting SB 326 are very real for volunteer board members. Some of the most common consequences for doing so include:

• Enforcement costs (local agencies can recover their enforcement costs from the association; the daily fines and liens often cited belong to SB 721, the parallel law for apartment buildings, not to SB 326).

• Legal liability, since failing to address known defects can be considered a breach of fiduciary duty (a structural failure could open up the HOA and even individual board members to lawsuits).

• Insurance risks, with non-compliance leading to policy cancellations, denied claims, and difficulty securing future coverage.

The list goes on. Where an inspector finds an immediate threat, the report also goes to the local code enforcement agency within 15 days. Ignoring SB 326 just doesn’t make sense, especially when the repercussions are this severe.

AB 2050 update (October 2026)

California’s AB 2050 (Chapter 796, Statutes of 2026) adds reserve funding rules for community associations: it takes effect on January 1, 2027, and its funding duties apply from January 1, 2032. Our California page sets out what it requires.

How to Finance SB 326 Repairs

Getting an SB 326 inspection is an important first step, but it’s not very useful if you don’t follow through on the repairs. After all, if you serve on your HOA board, you’re managing a multi-million dollar real estate asset that deserves the utmost attention.

With that said, financing those repairs is often easier said than done. Many SB 326 repairs cost more than a single year’s reserve contributions can handle.

Because of this, acting responsibly, and in accordance with your fiduciary duty, means you’ll need to find a sustainable funding path. This needs to be one that balances safety, financial stability, and perhaps most importantly, homeowner trust.

A one-time special assessment can strain your homeowners’ finances. If you’re asking each unit to suddenly pay thousands of dollars for an unexpected repair, you’re opening the door to a medley of unwanted consequences, including:

• Financial hardship for homeowners (in particular, families on fixed incomes and seniors)

• Delayed payments and delinquencies

• Frustration, conflict, and loss of trust within the community  

In turning directly to homeowners to foot the bill,  you’ve met your legal duty for safety, sure. But at what emotional and social cost?

HOA Loans

There’s a strategic case to be made for HOA loans, a form of good debt that can be weighed in the face of a six- or seven-figure repair bill.

They turn that massive, one-time expense into a predictable monthly cost that is now folded into their regular dues. Now, homeowners can budget. The board can still demonstrate its fiscal responsibility. And the community is avoiding an all-out financial panic.

Many boards treat an HOA loan as good debt because it preserves liquidity. You aren’t draining your reserves dry, instead keeping cash available for future emergencies like water main breaks or insurance increases. You’re also protecting property values, since prompt repairs prevent small issues from becoming large, value-destroying problems.  

And with inflation, cash in your reserves today is often worth more than what you’ll repay gradually over time. Using a loan strategically can actually protect your long-term purchasing power and be an integral component in your money management.

Choosing the Right HOA Loan Partner

Not all lenders understand HOA, and that’s an important distinction to make. You want a specialized financing partner who truly understands community association law and finances.  

As you’re shopping around for the right lender, be sure to find one that is experienced with SB 326 and the Davis-Stirling Act, rather than just generic commercial loans.  

Look for one with a reputation for offering transparent guidance, not just a sales pitch for one product. After all, you deserve unbiased advice that matches your community’s structure and goals.

Maintain a “Good Debt” Mindset

SB 326 repairs are unavoidable, but financial strain doesn’t have to be. Strong leadership looks like protecting safety, property values, and financial health all at once, and choosing a well-structured HOA loan could be just what you need to demonstrate it.  

Not only will you be funding essential repairs to keep your community safe, but you’ll be doing so while protecting homeowners from financial shock and preserving reserves for future needs. This can strengthen your long-term property values and stability, allowing you to turn a challenging mandate into an opportunity for smart, equitable governance.

You know that SB 326 inspections are required. And you also know that repairs (often expensive ones) are likely. But when that repair bill arrives, remember the power of strategic financial planning.

Facing SB 326 repairs without the reserves to cover them?

A balcony and walkway repair bill rarely waits for the next budget cycle. Book a free consultation: we’ll tell you what a lender is likely to flag in your file and how much the association might reasonably borrow, so the board can put a loan next to a special assessment before the vote. Our free capital planning tool lets you list the work ahead and what it’s likely to cost. There is no upfront cost, and we are paid at closing.

Get a free consultation or open the capital planning tool.