As we hear about the high-rise condominium building collapsing in Florida and balconies collapsing during parties in Malibu, the structural integrity of construction is in the news and the forefront of new government laws and building codes.
In August 2019 California passed SB 326 that went into effect January 1, 2020. Commonly referred to as the “balcony bill,” the legislation requires that “exterior elevated elements” be evaluated, inspected, and if necessary, repaired. Any Association with three or more dwelling units in a building must comply with this law.
This is applicable to all condominiums, not PUDs (Planned Urban Development) or single family dwellings. The initial inspection has to be completed by December 31, 2024, and then again in 9 year increments.
All load-bearing components more than 6 feet above the ground, that extend beyond the exterior walls and supported by wood products must be inspected. This includes balconies, stairways, walkways, and railings.
The evaluation must be conducted by a structural engineer or licensed architect. The report must identify building components, current physical condition, expected future performance and useful life, and recommendations for repair or replacement.
Homeowner Associations are notorious for procrastinating and not wanting to spend any money. The HOAs will have to be careful because of potential legal liabilities if they don’t follow the law.
An adequate quantity of reserve funds is an issue for many complexes. Now above and beyond covering previously required inspections, future roof replacements and such, the SB 326 inspection must be conducted. If repairs are required, there may be a need for special assessments.
When a buyer is under contract to purchase a unit in a condo complex with load bearing features, they should to request a copy of the inspection report during the due diligence contingency period when evaluating the other HOA documentation. If the report can’t be supplied, it’s advantageous to question the HOA on the status of the inspection/report.
It’s always exciting when purchasing a property. The shine comes off when it’s discovered that the use of a balcony has been curtailed because it’s been red-tagged, an increase in dues, or there’s a special assessment imposed.
If you are in the Los Angeles area, have any questions or real estate sales or financing needs, feel free in contacting me
Ron Henderson GRI, SRES, SFR, RECS, CIAS
President/Broker
Multi Real Estate Services, Inc.
Gov’t Affairs Chair – California Association of Mortgage Professionals (2017-2018)
Chairman – OutWest Marketing Meeting (Real Estate Education)
BRE #00905793 NMLS #310358
www.mres.com
ronh@mres.com
Specialist in the Art of Real Estate Sales and Finance
Real Estate market, mortgage rates, Los Angeles, San Fernando Valley, Conejo Valley, Simi Valley, Woodland Hills, West Hills, Calabasas, Chatsworth
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