Imagine sitting home at night watching the game and getting a call from your property manager who tells you that the railing broke free from the second-story walkway on the small apartment building you own. You are devastated to find out that an eleven-year-old boy is in the hospital and the outcome is uncertain. Once you get past the initial shock of the horrific news you can’t help but wonder if was it because of kid’s horseplay, unrealized differed maintenance on your building, or a little of each. Not sure what to think, you call your insurance carrier and the first thing she asks for is a copy of your SB-721 inspection. You wonder, what’s that? I’ll explain.
What Is the California Balcony Inspection Law and What Properties Does It Apply To?
The California Balcony Inspection Law SB-721 for Apartment Buildings and SB-326 for Condominium Complexes are laws that mandate inspections for all residential buildings three units or more that have Exterior Elevated Elements such as balconies, decks, porches, stairways, and walkways that extend beyond the exterior walls of the building and which have a walking surface that is elevated more than six feet above the ground which are made of wood, have wood-based framework or are supported by wood.
This pretty much means any residential property with at least three units that are two to approximately six stories in height having a balcony, stairs, or walkway that is on the exterior of the building. If you think it might apply to your building, it probably does.
What Is the Deadline for California Balcony Inspection Law and How Often Are Inspections Needed?
Both SB-721 for Apartment Buildings and SB-326 for residential Condominium Complexes require initial inspections to be completed by January 1, 2025. From that point on Apartment Buildings under SB-721 need to have inspections every 6 years and Condominium Complexes under SB-326 need to have them every 9 years.
Who Can Perform These Mandatory Exterior Elevated Element Inspections?
Condominium complexes under SB-326 need to be inspected by a licensed architect or structural engineer. Apartment buildings under SB-721 can be inspected by a licensed architect, structural engineer, or general contractor with an “A”, “B”, or “C-5” license with at least five years’ experience or have achieved appropriate certification as a building inspector.
But don’t just use anybody with a license. Use a firm that knows what they are doing. Use a company that focuses on inspections to the degree that they have a core competence in these specific types of inspections. There are technical requirements for the inspection, certain reporting requirements based on the municipality of the property, various levels of insurance coverages and you want a quality report.
If Needed Corrections Are Found in a Balcony Inspection, When Must They Be Made?
If emergency repairs are found immediate action is required as this represents a real and present risk to life and personal safety. There are protocols for notifying the local authorities, notifying occupants, restricting access, and making repairs. Non-emergency repairs must be completed within 120 days after receipt of the report unless a local enforcement agency grants an extension.
Can the Company Performing the Balcony Inspection Make the Repairs?
Condominium complexes under SB-326 are to be inspected by licensed architects or structural engineers, work performed would be presumably performed by a separately licensed contractor.
Since apartment buildings under SB-721 can also be inspected by qualified licensed general contractors, those inspectors could potentially do the work called out in their own inspections. SB-721 initially prohibited this but since then, SB607 has amended SB-721 to allow contractors to both inspect and repair Exterior Elevated Elements in multi-family residential apartment buildings. Building owners should be sure to exercise care using the same contractor to make repairs who did the inspection, as it does pose potential conflicts of interest.
What if the January 1 2025 Deadline Is Missed?
First, try not to miss the deadline. If you’re seeing this after the deadline, schedule an inspection ASAP. Don’t panic; just start researching inspection companies and get something set up right away. You don’t want to mess around with this one.
As of now, most municipalities are in the process of working out what kind of enforcement measures they will be employing. Some of the risks you are taking by not having your mandated SB-721 or SB-326 inspection include:
Fines – the fines can be between $100 to $500 per day if a project is not in compliance.
Insurance cancelation – your insurance may be canceled and you may not be able to obtain new insurance until an inspection is done and necessary work is completed.
Someone could get hurt – someone could get injured or even die from an unknown condition that could have been discovered from an inspection. The consequences of this are much more than just financial.
Significant financial liability – if someone gets hurt on your property due to something that happens on an Exterior Elevated Element and you did not have the mandated inspection or you have not completed the repairs, you could face huge legal trouble with significant damages that may likely fall outside of your insurance coverage.
Do Balcony Inspections Protect the Tenants or the Property Owner?
Balcony inspections protect both the tenant and the property owner. Having an inspection and completing the required work helps keep tenants safe, which is good for everybody. An inspection also protects the property owner should something bad happen on the property; by having an inspection done you will at least be able to show diligence with an expert opinion regarding the Exterior Elevated Elements of your property and proof you have taken any corrective action that was recommended.
Bottom Line
There are new laws In California requiring all residential buildings three units or more having Exterior Elevated Elements such as balconies, stairways, and walkways made of or supported by wood be inspected before January 1, 2025. From then on, Apartment Buildings under SB-721 need to have inspections every 6 years, and Condominium complexes under SB-326 need to have inspections every 9 years. Condominium complexes must be inspected by a licensed architect or structural engineer. Apartment buildings can be inspected by a licensed architect, structural engineer, or general contractor meeting certain requirements.
If emergency repairs are discovered, they must be performed immediately. Non-emergency repairs must be completed within 120 days unless an extension is granted. Work must be performed by licensed contractors. If the contractor doing repairs also did the inspection use extra care due to potential conflicts of interest.
Do not delay getting these inspections. Property owners not completing balcony inspections and the work called out on them risk fines, insurance cancelation and someone could get hurt putting the property owner at significant financial risk or worse.
These mandatory inspections protect both tenants and property owners. If you have a building that qualifies, get your inspection done and complete any necessary work. It’s the law.
We hope that you found this helpful and informative. Remember, we are not attorneys or CPAs so we don’t give legal or tax advice. Laws are always changing and vary depending on the specific municipality in which the property is located. For legal advice please consult a real estate attorney familiar with the laws in your area.
For Real Estate Advice
If you are looking for a reliable property management company or real estate broker in Long Beach, Los Angeles or Orange County, California; or you are just considering it and have a few questions about real estate contact the Mike Dunfee Group today! We are happy to help.
