If you’re buying or selling a condo in a California HOA, you should understand SB 326 before you close. This law—passed in 2019 and effective January 1, 2020—added exterior elevated element inspection requirements to the Davis-Stirling Act (California Civil Code § 5551). Davis-Stirling is the main body of California law that governs HOAs, condos, and other common interest developments.
Why SB 326 Exists
SB 326 traces back to a tragic balcony collapse in Berkeley that killed six people and injured several others. Investigators found the failure was caused by dry rot and structural deterioration that went undetected—largely because key framing components were concealed and not routinely inspected. Even when framing was accessible, there was no consistent statewide standard for regular inspections of balconies, decks, or walkways.
SB 326 was created to close that gap and reduce the risk of hidden structural failures.
What Buildings and Components Are Covered
SB 326 generally applies to condo complexes with three or more units and focuses on Exterior Elevated Elements (EEEs)—components that meet specific criteria, including:
- Wood-framed load-bearing components (wood framing is what triggers the structural inspection requirement)
- Elements more than 6 feet above the ground
- Elements that extend beyond the building’s exterior walls
These can include balconies, decks, exterior stairs, walkways, and their supporting structural systems. Inspectors evaluate not only framing, but also systems that affect safety and long-term durability, such as:
- Waterproofing and flashing
- Guardrails and railings
- Stairs and landings
- Surface conditions that may indicate moisture intrusion or deterioration
Who Can Perform the Inspection—and How Thorough It Must Be
SB 326 requires inspections to be performed by a licensed structural engineer or architect. The law also requires examining a statistically significant sample of exterior elevated elements—meaning the inspector cannot simply look at one or two balconies and treat the results as representative of the whole property.
The goal is to determine:
- The current condition of the components
- Whether deterioration is present (including concealed conditions)
- Which elements may need repair now vs. later
A Common Problem: “Shortcut” Inspections
Some inspection providers try to minimize their scope by interpreting “visual inspection” as “only what you can see from the outside.” That approach risks missing the very issues SB 326 was designed to detect.
The intent of the law is to identify structural deterioration—and much of that deterioration happens in concealed areas, especially soffits and enclosed cavities where moisture can enter and remain trapped. Those spaces are common locations for dry rot and insect activity.
The Berkeley balcony that failed reportedly looked normal from the outside. The damage was hidden inside.
What “Visual Inspection” Should Mean in Practice
A proper interpretation of “visual inspection” is not limited to exterior surfaces. In practice, it should mean using the least intrusive method necessary to visually evaluate load-bearing components—especially when the critical framing is concealed.
That’s why many qualified inspectors use tools such as:
- Moisture meters
- Specialized cameras
- Borescopes (which provide visual imagery inside concealed spaces with minimal disruption)
If signs of damage are found, further investigation may be recommended to confirm the extent and boundaries of deterioration and to support repair planning.
SB 326 Is Part of Davis-Stirling—and That Matters in a Condo Purchase
SB 326 isn’t a stand-alone rule. It’s an amendment within the Davis-Stirling system, which becomes very relevant in real estate transactions.
When you buy a condo, you’re not just buying the interior of a unit—you’re buying into a legal and financial system: HOA membership, shared responsibility for common areas, budgets, reserves, rules, and compliance obligations like SB 326.
Under Davis-Stirling, sellers typically must provide buyers with HOA disclosures such as:
- CC&Rs
- Bylaws and rules
- Current operating budget
- Reserve study summary
- Recent financial statements
- Insurance information
- Pending legal matters/notices
- Special assessment information
These documents help a buyer evaluate:
- Monthly dues
- HOA financial health
- Deferred maintenance risks
- Upcoming repair obligations
- Potential for special assessments
What Happens After an SB 326 Inspection?
This is where SB 326 can affect your purchase the most.
After the inspection, the HOA may need to:
- Plan repairs and timelines
- Obtain bids and engineering guidance
- Decide how to fund the work (reserves vs. special assessment)
- Schedule follow-up inspections or additional testing if deterioration is suspected
If the HOA is underfunded or already behind on maintenance, SB 326 findings can accelerate major spending.
What Buyers and Agents Should Ask About SB 326
SB 326 can directly impact both cost and risk. Buyers (and their agents) should ask:
- Has the SB 326 inspection been completed?
- Can we review the written report and findings?
- Were any repairs recommended or required—and are they scheduled?
- Is the HOA budgeting for repairs through reserves, or is a special assessment likely?
- Do meeting minutes mention SB 326, balcony repairs, waterproofing, or structural findings?
- Are reserves adequately funded for upcoming projects?
The Bottom Line
Buyers need to go in with eyes wide open. If reserves are underfunded and major repairs are pending, a buyer may inherit significant financial exposure shortly after closing.
SB 326 inspections and repairs can be expensive—but the cost of not finding hidden structural deterioration can be far worse.
Note: This article is informational only and is not legal or engineering advice. For property-specific guidance, consult a qualified engineer/architect and a real estate professional familiar with HOA transactions.
