SB 326 and SB 721 in short
Two laws came out of the June 2015 balcony collapse at the Library Gardens apartments in Berkeley, which killed six young people and injured seven. Investigators found decayed wooden joists caused by untreated dry rot. The Legislature responded with SB 721 (Hill, Chapter 445, Statutes of 2018) for apartments and SB 326 (2019) for condominiums and other common interest developments.
| Point | SB 721: apartments | SB 326: condos and HOAs |
|---|---|---|
| Statute | Health and Safety Code 17973 | Civil Code 5551 |
| Buildings covered | Buildings with three or more multifamily dwelling units | Common interest developments where the association maintains the elements |
| Who inspects | Architect, civil or structural engineer, A, B or C-5 contractor with five years of wood-framed multistory experience, or a certified building inspector or building official | Licensed architect, civil engineer or structural engineer |
| Sample | At least 15% of each type of element | A statistically significant sample (95% confidence, plus or minus 5%) |
| First deadline | January 1, 2026 (extended from January 1, 2025) | January 1, 2025 under Civil Code 5551; see the deadline note below |
| Repeat cycle | Every 6 years | Every 9 years |
Which balconies, decks and stairways the law covers
The definition of an EEE
Both laws use the same defined term, shortened by building departments to EEE. It means balconies, decks, porches, stairways, walkways and entry structures, including their supports and railings, that extend beyond the exterior walls of the building, have a walking surface more than six feet above ground level, are designed for human use, and rely in whole or in substantial part on wood or wood-based products for structural support. A concrete or steel-framed balcony is generally outside the definition; a wood-framed stair landing eight feet up is inside it.
Load-bearing components and waterproofing
The inspection looks at load-bearing components, meaning the parts that extend beyond the exterior walls and carry the element's weight back to the building, and at the associated waterproofing: flashings, membranes, coatings and sealants that keep water off those components. Most failures start with water getting past the waterproofing and rotting framing that cannot be seen from the surface.
Buildings under SB 721
SB 721 applies to buildings with three or more multifamily dwelling units. City guidance, such as San Ramon's building division page, lists apartment houses, hotels and motels, dormitories, boarding houses and similar residential buildings. Owner-maintained rental buildings are the core group.
Buildings under SB 326
SB 326 applies where a homeowners association is responsible for maintaining the elements, such as a condo complex where balconies are association-maintained exclusive use common area. If the CC&Rs make owners responsible for their own balconies, ask the association's counsel how it reads its duty under Civil Code 5551. The California HOA laws guide explains how repair responsibility is split between owners and associations.
How the inspection works: inspectors, samples and reports
Who can inspect apartment buildings
Under Health and Safety Code 17973, the inspector can be a licensed architect, a licensed civil or structural engineer, a contractor with an A, B or C-5 license and at least five years of experience constructing wood-framed multistory buildings, or a certified building inspector or building official. The California Building Officials' 2025 training materials list these same categories.
Who can inspect condo buildings
Under Civil Code 5551, only a licensed architect, civil engineer or structural engineer may do the inspection for an association. Contractors and building inspectors are not on the list.
Sample size for SB 721
The inspector must assess the load-bearing components and waterproofing of a sample of at least 15% of each type of element, for example 15% of the balconies and 15% of the stairways. If the inspector finds a problem, they may recommend inspecting more.
Sample size for SB 326
Associations must inspect a statistically significant sample, defined as enough units to give 95% confidence that the results reflect the whole, with a margin of error no greater than plus or minus 5%. In small complexes that can mean inspecting most of the elements. A visual inspection is the least intrusive method needed, which can include moisture meters, borescopes or infrared cameras.
What the report must contain
The report identifies each type of element, assesses load-bearing components and waterproofing, describes current condition, expected future performance and projected service life, and recommends any further inspection. Apartment reports must be stamped or signed, include photos and test results, and go to the owner within 45 days; owners keep them for two inspection cycles, or 12 years. Association reports go into the reserve study required by Civil Code 5550 and are kept for two cycles, or 18 years.
SB 721 and SB 326 deadlines
SB 721: January 1, 2026, then every six years
SB 721 originally required the first inspection by January 1, 2025. AB 2579 (Quirk-Silva, 2024) extended it. The bill first proposed July 1, 2027; the Senate Housing Committee analysis records that the author agreed to cut the extension to 12 months, and building departments such as San Mateo's now give the deadline as January 1, 2026. Later inspections are due every six years. That first deadline has passed, so any apartment building that has not been inspected is out of compliance.
SB 326: January 1, 2025, then every nine years
Civil Code 5551 still sets January 1, 2025 for the first inspection of existing condo buildings. AB 2579 amended the apartment statute; the Senate analysis describes it only as an extension for buildings with three or more multifamily units. City pages are not consistent: San Mateo's and San Ramon's each give January 1, 2025 for condos in one place and January 1, 2026 in another. Either way the date has passed, and associations that have not inspected should do so now and confirm their position with counsel.
New buildings
For a condo building whose permit application was submitted on or after January 1, 2020, the first inspection is due no later than six years after the certificate of occupancy, and then every nine years. For apartments built later, the six-year clock runs from the certificate of occupancy.
Repairs, reporting to the city and penalties
Immediate threats to safety
If an inspector finds an element that poses an immediate threat to the safety of occupants, the report goes to the local enforcement agency within 15 days, and to an association immediately (for apartments, to the owner within 15 days). The owner must take preventive action right away, such as blocking access and shoring. San Ramon's guidance says that where the balcony door is the only emergency exit from a sleeping area, access may be blocked with 2x4s no higher than 42 inches above the balcony surface.
Non-emergency repairs for apartments
Under SB 721 the owner must apply for a permit within 120 days of receiving the report and finish the work within 120 days of permit approval, unless the city grants an extension. Repairs must be done by a licensed contractor following the design professional's recommendations, manufacturer specifications and the building code.
Penalties for apartments
If repairs are not done within 180 days, the inspector must notify the local enforcement agency. If the work is still not completed 30 days after that notice, the owner is assessed a civil penalty of $100 to $500 per day until it is complete. Cities can grant extensions, so ask early if a contractor or permit delay is the cause.
Condo repairs and the reserve study
Civil Code 5551 has no fixed 120-day schedule for associations, but immediate threats must be addressed at once and the report's findings flow into the reserve study. Big repairs often lead to a special assessment, which is limited to 5% of the budget without a member vote except in emergencies; the HOA laws guide covers those limits.
Worked example: sample size and penalty math
Take a hypothetical building with 80 wood-framed balconies and 6 exterior stairways. The figures below apply the statutory sampling rules and the SB 721 penalty range.
| Scenario | Calculation | Result |
|---|---|---|
| Apartment (SB 721), balconies | 15% of 80 = 12 | At least 12 balconies |
| Apartment (SB 721), stairways | 15% of 6 = 0.9, rounded up | At least 1 stairway |
| Condo (SB 326), balconies | Standard sample formula at 95% confidence and plus or minus 5%, adjusted for a population of 80: 384.16 / (1 + 383.16 / 80) | About 67 of 80 balconies |
| Apartment penalty, 30 days late after notice | $100 to $500 x 30 days | $3,000 to $15,000 |
| Apartment penalty, 90 days late after notice | $100 to $500 x 90 days | $9,000 to $45,000 |
The condo figure shows why SB 326 inspections cost more per building than SB 721 inspections: a statistically significant sample in a small complex is close to a full count. The inspector decides the final sample, so treat 67 as an illustration, not a quote. Ask two or three licensed firms for proposals that state the sample size and method.
What buyers, owners and renters should check
Condo buyers
Ask the association for the SB 326 inspection report, the current reserve study and the last 12 months of board minutes. Look for elements marked as an immediate threat, recommended repairs, and whether the reserve funding plan covers them. A large repair not yet funded is the most common source of a special assessment after you buy.
Apartment buyers and investors
Ask for the SB 721 report, any final report showing repairs are complete, permits for the repair work and any notice from the city. Owners must keep reports for two cycles, so a seller of a building inspected in 2025 should be able to hand them over. Missing reports are a negotiating point and a cost to budget for.
Renters and condo residents
If a balcony feels soft, has stains under the deck surface, rusted fasteners or loose railings, report it in writing to the owner or manager. Your city's code enforcement or building division is the agency that receives immediate-threat reports from inspectors, and it can tell you whether a report has been filed for the building.
Insurance and closing
Ask your lender and insurance agent early whether open balcony repairs could affect a loan on the unit or the association's master policy. See the California homeowners insurance guide for the wider market and the closing costs guide for what a buyer pays at escrow.
Common SB 326 and SB 721 mistakes
- Assuming the deadline is still ahead. Both first-round dates have passed.
- Hiring the wrong professional for a condo. Only an architect, civil engineer or structural engineer can do an SB 326 inspection.
- Using a 15% sample for a condo association. SB 326 requires a statistically significant sample, which is usually much larger.
- Skipping the waterproofing. The law requires assessment of flashings, membranes, coatings and sealants as well as framing.
- Letting the repair clock run. Apartment owners face $100 to $500 a day once the 180-day and 30-day windows pass.
- Not keeping the reports. Owners must keep two cycles of reports, and future inspections must include copies of earlier ones.