SB 326 (Civil Code §5551) requires California condominium and common interest development (CID) associations to inspect exterior elevated elements—balconies, decks, stairs, and walkways—in buildings with three or more units. The deadline was January 1, 2025, with no extension. Unlike SB 721 for apartments, which received an AB 2579 extension to 2026, SB 326 has stricter inspector qualifications, a more rigorous sampling methodology, and significant insurance and liability consequences for non-compliant HOA boards. This guide explains every requirement, the consequences of inaction, and what boards should do now.

What Does SB 326 Require for Condominium Associations?

SB 326, codified as Civil Code §5551, requires associations that govern condominiums and common interest developments (CIDs) with three or more units to conduct inspections of exterior elevated elements (EEEs). The statute was enacted in 2019 as a companion to SB 721, which covers apartment buildings.

While SB 721 and SB 326 address the same safety concern—preventing catastrophic failures of balconies and other exterior structures—SB 326 places the compliance obligation on the HOA board, not individual unit owners. This makes board members personally exposed to liability if they fail to act. For an overview of all 2026 construction law changes, see our 2026 California Construction Law Update.

What Was the SB 326 Inspection Deadline?

The SB 326 deadline was January 1, 2025. This deadline has passed, and associations that have not completed inspections are currently out of compliance.

Did AB 2579 Extend the SB 326 Deadline?

No. This is one of the most common points of confusion in California construction law. AB 2579 extended only the SB 721 deadline (for apartment buildings) from January 1, 2025, to January 1, 2026. SB 326 received no extension. HOA boards that assumed the extension applied to their properties are now facing an unexpected compliance gap. Read our SB 721 balcony inspection guide to understand how the two laws differ.

Which HOAs Must Comply With SB 326?

SB 326 applies to associations that govern buildings meeting all of the following criteria:

• Building type: Condominiums and common interest developments (CIDs)
• Unit count: Three or more units
• Construction: Contains exterior elevated elements (balconies, decks, walkways, stairs) that are six or more feet above ground level and substantially supported by wood or wood-based products

The obligation falls on the HOA board of directors—not individual unit owners. This is a critical distinction. Board members have a fiduciary duty under the Davis-Stirling Common Interest Development Act to maintain common-area components, and exterior elevated elements typically qualify as common areas or exclusive-use common areas. Visit our Davis-Stirling compliance page for more on board duties.

What Elements Must Be Inspected Under SB 326?

SB 326 covers exterior elevated elements (EEEs) that meet specific structural criteria:

• Balconies and decks
• Exterior stairways
• Exterior walkways and corridors
• Railings and guardrails on elevated elements
• Any associated waterproofing system

The key threshold: the element must be six or more feet above ground level and substantially supported by wood or wood-based products. Elements made entirely of steel, concrete, or masonry are generally not covered, though they may be subject to other maintenance obligations under the Davis-Stirling Act.

Who Is Qualified to Perform SB 326 Inspections?

SB 326’s inspector requirements are stricter than SB 721’s. Only the following professionals may perform SB 326 inspections:

• Licensed structural engineers
• Licensed architects
• Licensed civil engineers (added by AB 2114)

General contractors cannot perform SB 326 inspections—even if they hold an A, B, or C-5 license with extensive experience. This is a significant difference from SB 721, where qualified contractors may inspect. HOA boards that hired a general contractor for their SB 326 inspection may need to redo the inspection with a qualified engineer or architect.

What Sampling Methodology Does SB 326 Require?

SB 326 requires a statistically rigorous sampling approach: inspectors must achieve a 95% confidence level with no more than a 5% margin of error. In practice, this means inspecting a larger percentage of elements than SB 721’s simpler 15% minimum.

The exact number of elements to inspect depends on:

• The total number of each type of exterior elevated element on the property
• The variability in condition observed during the inspection
• Statistical formulas applied by the inspector to meet the confidence threshold

For a property with 100 balconies, the inspector might need to examine 50 or more to meet the 95%/5% standard—far more than the 15 that SB 721 would require. Boards should anticipate higher inspection costs as a result.

What Are the SB 326 Reporting Requirements?

SB 326 imposes detailed reporting obligations that go well beyond simply receiving an inspector’s report:

• Board review at open meeting: The inspection report must be presented and reviewed at an open meeting of the HOA board.
• Written summary to all owners: Within 15 days of the board meeting, the association must distribute a written summary of the inspection findings to all unit owners.
• Record retention: The inspection report and related documents must be retained for at least two inspection cycles (18 years, given the 9-year cycle).

Must SB 326 Findings Be Incorporated Into the Reserve Study?

Yes. Under Civil Code §5550, the results of the SB 326 inspection must be incorporated into the association’s reserve study. If the inspection identifies needed repairs, those repair costs must be reflected in the reserve study’s funding projections. Failure to update the reserve study can constitute a breach of the board’s fiduciary duties and create exposure under the Davis-Stirling Act.

How Does SB 326 Non-Compliance Affect HOA Insurance?

Insurance carriers are paying close attention to SB 326 compliance, and the consequences for non-compliant associations are severe:

• Proof of compliance: Many carriers now require proof of a completed SB 326 inspection as a condition of issuing or renewing a policy.
• Premium increases: Non-compliant HOAs have reported premium increases of up to 300%. Some carriers are refusing to quote coverage entirely for associations that cannot demonstrate compliance.
• Coverage exclusions: Even if coverage is obtained, carriers may exclude claims related to exterior elevated element failures if the association has not completed its required inspection.
• Claims denials: In the event of a structural failure, a carrier is likely to investigate whether the association completed its SB 326 inspection. A failure to inspect strengthens the carrier’s basis for denying the claim.

For associations already experiencing insurance difficulties, consult our HOA construction defect page for guidance on managing carrier relationships and coverage disputes.

What Happens if the SB 326 Inspection Reveals Problems?

When an inspection identifies deficiencies, the board must act promptly:

• Immediate hazards: If the inspector identifies conditions that pose an immediate threat to safety, the board must restrict access to the affected element and arrange emergency repairs.
• Repair obligations: The association must complete all identified repairs within the timeline specified in the inspection report. California law does not specify a fixed repair window like SB 721’s 120 days, but unreasonable delay exposes the board to liability.
• Cost allocation: Repair costs for common-area elements are typically borne by the association (funded through reserves or special assessments). Exclusive-use common-area repairs may be allocated differently depending on the CC&Rs.
• Re-inspection: After repairs are completed, the inspector should verify that the work was performed correctly and issue an updated report.

How Often Must SB 326 Inspections Be Repeated?

SB 326 inspections must be completed on a nine-year recurring cycle. For associations that completed their initial inspection by the January 1, 2025, deadline, the next inspection will be due by January 1, 2034.

Boards should calendar the next inspection well in advance—ideally beginning the process 12 to 18 months before the deadline to allow time for inspector selection, scheduling, review, and any necessary repairs.

What Legal Exposure Do Board Members Face for Failing to Act?

HOA board members who fail to initiate and complete SB 326 inspections face multiple categories of legal exposure:

• Breach of fiduciary duty: Board members owe fiduciary duties to the association under the Davis-Stirling Act. Failing to comply with a mandatory safety statute is strong evidence of a breach.
• Personal liability: While the business judgment rule provides some protection, it does not shield board members who ignore clear legal requirements. Willful failure to inspect could overcome director and officer (D&O) insurance protections.
• Negligence claims: If an exterior elevated element fails and causes injury, the association and individual board members may face negligence claims. Non-compliance with SB 326 establishes a clear standard of care that the board failed to meet.
• Government enforcement: Local building departments may impose fines or other enforcement actions against non-compliant associations.

Board members should treat SB 326 compliance as a non-negotiable governance obligation—not an optional maintenance item.

Need Help With SB 326 Compliance or HOA Disputes?

Bay Legal’s construction law attorneys help property owners, contractors, and HOA boards navigate California’s complex regulatory landscape. Schedule a consultation today to discuss how these changes affect your projects and legal obligations.

Call (650) 668-8000 or visit baylegal.com/practice-areas/construction-law/.

Frequently Asked Questions

Q: Did AB 2579 extend the SB 326 deadline for condos?

A: No. AB 2579 extended only the SB 721 deadline (apartment buildings) to January 1, 2026. The SB 326 deadline for condominiums remained January 1, 2025, with no extension.

Q: Can our HOA hire a general contractor to perform the SB 326 inspection?

A: No. SB 326 requires inspections by a licensed structural engineer, architect, or civil engineer (expanded by AB 2114). General contractors—even highly experienced ones—are not qualified to perform SB 326 inspections.

Q: How much does an SB 326 inspection typically cost?

A: Costs vary based on property size and the number of exterior elevated elements. For a mid-size condominium complex, inspection costs typically range from $15,000 to $50,000 or more. The 95% confidence/5% margin of error sampling requirement means more elements must be inspected than under SB 721, which increases costs.

Q: What if our HOA completed inspections but hasn’t made repairs yet?

A: Completing the inspection is the first step, but the obligation does not end there. The board must promptly address identified deficiencies, update the reserve study, and distribute findings to owners. Unreasonable delay in making repairs creates ongoing liability for the board.

Q: Can a board member be personally sued for failing to comply with SB 326?

A: Yes. While the business judgment rule provides some protection for good-faith decisions, it does not protect board members who ignore mandatory legal requirements. Personal liability is possible, and D&O insurance may not cover willful non-compliance.

Disclaimer

This content is for informational purposes only and does not constitute legal advice. Results depend on the specific facts of each situation. No attorney-client relationship is created by reading this article. Contact Bay Legal, PC for advice on your specific situation.

Responsible attorney: Bay Legal, PC | (650) 668-8000 | baylegal.com