The Impact of SB 326 Inspections: Delays, Compliance Issues, and Property Sales at Risk

Senate Bill 326 (SB 326) has brought significant changes to the way condominium and homeowners' associations (HOAs) in California must manage structural safety. Designed to ensure the integrity of exterior elevated elements (EEEs), such as balconies, stairways, and decks, the law mandates inspections of these structures for multi-family buildings with three or more units.
 

Failure to comply with SB 326 can lead to severe consequences, including costly project delays, legal penalties, and even jeopardized property sales. If your HOA or community has not yet addressed these inspections, now is the time to act.
 

Understanding SB 326 Compliance Requirements

SB 326 requires that condominium associations conduct a visual inspection of their EEEs by a licensed structural engineer or architect. These inspections must be completed by January 1, 2025, and subsequent inspections are required every nine years. The goal is to identify safety risks and potential failures before they result in catastrophic damage, injury, or legal liability.
 

Despite the clear need for these inspections, many property owners and associations remain unaware of the risks they face by delaying compliance.
 

The Risks of Delayed SB 326 Inspections

1. Project Delays and Increased Costs

HOAs that wait too long to schedule inspections may find themselves scrambling to secure an inspector before the deadline. Structural engineers and architects are in high demand as the deadline approaches, leading to longer wait times and higher costs. Associations that fail to complete inspections on time may face legal action and be forced to halt repairs, delaying necessary maintenance.
 

2. Legal and Financial Consequences

If an inspection reveals safety deficiencies, an association must take immediate corrective action. Delaying these repairs can result in liability exposure, fines, and insurance complications. If a structural failure occurs due to negligence, the HOA and its board members could face litigation from homeowners, tenants, and other affected parties.
 

3. Complications for Property Sales

For homeowners looking to sell their property, an incomplete SB 326 inspection could be a dealbreaker. Buyers and lenders may be reluctant to proceed with a purchase if they suspect structural safety concerns. If an HOA has not completed an inspection or addressed required repairs, it could lead to delayed or canceled transactions, negatively impacting property values within the community.
 

Act Now to Avoid Risk

The consequences of delaying an SB 326 inspection are severe and far-reaching. Property owners, HOAs, and community managers must prioritize compliance to avoid legal and financial repercussions. If your association has not yet scheduled its inspection, now is the time to act.
 

At AD Magellan Construction Planning and Management, we provide expert guidance on navigating SB 326 compliance, ensuring a smooth inspection process and minimizing potential disruptions. Visit our office in Vista, California, or call (877) 899-5990 to schedule a consultation and protect your property’s value and safety.