Recently, the State legislature added California Civil Code § 5551 required condominium associations with certain elevated exterior elements (“EEEs”). The cause for this measure was due to the collapse of a balcony that caused several deaths few years ago.
This law does not apply to Planned Developments, multifamily dwelling buildings with two or less units; commercial condominiums; and industrial condominiums.

California Law SB 721 requires periodic inspections on multifamily apartment buildings with three or more units. Owners now have until December 31, 2025, to complete the first inspection.

California SB 326 / CA Civil Code 5551 requires inspections of condominiums or multi-family housing controlled by residential homeowners’ associations (HOAs). The first inspection must be completed no later than January 1, 2026

Must be Inspected buildings with:
• Balconies, decks, porches, railings, stairways, walkways, and entry structures that extend beyond exterior walls of the building and that rely in whole or in substantial part on wood or wood-based products for structural support or stability.
• A walking surface that is elevated more than 6 feet above the ground level.
• Balconies designed for human occupancy or use.

The evaluation and assessment shall address each of the following:
➢ The current condition of the exterior elevated elements.
➢ Expectations of future performance and projected service life.
➢ Recommendations of any further inspection necessary.
➢Recommendations of any necessary repair or replacement.

The inspection must be completed by January 1, 2026 and then every nine (9) years thereafter. Exception: Newer developments and construction completed after January 1, 2020 have six (6) years since the issued certificate of occupancy to complete the first inspection.
A new inspection is not required until January 1, 2026, if the property was inspected between January 1, 2016, and January 1, 2019, and thereafter, a new inspection is required every six years; and if an adequate inspection was conducted between January 1, 2019, and the present time, a re-inspection is not required, until six years after the date of the inspection report, and thereafter, every six years.

This safety inspection must be done by a licensed architect, civil or structural engineer, or a specialty-license building contractor. The inspector must review the structural integrity and waterproong of the building’s EEEs.

The inspector conducting the inspection shall produce an initial report (may require more intrusive observations, including destructive testing) and a final report indicating that any required repairs have been completed. A written report of the evaluation stamped or signed by the inspector should be presented to the owner of the building or the owner’s designated agent within 45 days of completion of the inspection. The report shall include photographs, any test results, and narrative sufficient to establish a baseline of the condition of the components inspected that can be compared to the results of subsequent inspections.
In addition to the evaluation required by this section, the report shall advise which, if any, exterior elevated element poses an immediate threat to the safety of the occupants, and whether preventing occupant access or conducting emergency repairs, including shoring, are necessary. A copy of the inspection report must be presented to the owner of the building within 45 days of the completion of the inspection. The law requires that if the inspection reveals conditions that pose an immediate hazard to the safety of the occupants, the inspection report be delivered to the owner of the building within 15 days and emergency repairs be undertaken, as specified, with notice given to the local enforcement agency. The building owners will then have anywhere from 15 to 120 days to undertake the repairs (obviously, immediate threats to life will have to be remediated on an urgent basis). Shall apply for a permit within 120 days of receipt of the inspection report. Once the permit is approved, the owner of the building shall have 120 days to make the repairs unless an extension of time is granted by the local enforcement agency. If the owner of the building does not comply with the repair requirements within 180 days, the inspector shall notify the local enforcement agency and the owner of the building. If within 30 days of the date of the notice the repairs are not completed, the owner of the building shall be assessed a civil penalty based on a fee of not less than $100 or more than $500 per day until the repairs are completed, unless an extension of time is granted by the local enforcement agency. If a civil penalty is assessed, a building safety lien may be recorded against the property.

Certain balconies or stairs may be “yellow-tagged” or “red-tagged” by your City with a notice of a violation and notice to comply after receiving the inspection results resulting in the EEEs being barred from use until it is repaired. When EEEs are red-tagged, your association is required by Civil Code § 5551 to take immediate action to limit access to the affected area. Your association may then be dealing with angry residents who cannot use their balcony, deck, or stairway until the required repairs are made.

If your association doesn’t perform the required inspections timely, your association is exposed to liability. The possible claims and issues include:
-Breach of fiduciary duties by the Board of Directors
-Breach of the CC&Rs and lawsuit to force the association to complete the inspection
-Successful claims of negligence for personal injury and/or property damage claims if the inspection was required and not timely performed resulting in someone’s injury
-Some members of our industry express concern about the possible lack of insurance coverage for untimely inspections and resulting injuries.

Of course, the real concern is if there are any safety concerns that need to be addressed irrespective of the liability issues. That’s the reason why we are here to guide to create a safer community.