Overview

More than a year has passed since the initial compliance deadline for California’s “Balcony Law,” yet misinformation about what SB 326 required of HOAs continues to circulate. Unfortunately, that confusion does not come from obscure internet posts or outdated guidance. It comes from at least one widely circulated “legal trends” article written by someone who has marketed himself as a purported HOA law expert and “thought leader,” and who, if his self-description were accurate, should have known better.

In that article, the author made the following assertion under a section titled “Key Takeaways”:

“SB 326 sets a January 1, 2026, deadline for inspections of balconies and other exterior elevated elements, and noncompliant associations face code enforcement penalties, insurance problems, and potential personal liability for board members.”

Later in the same article, the author doubled down when we wrote:

“The January 1, 2026, deadline for SB 326 compliance represents one of the most consequential 2026 HOA legal trends. California condominium associations with three or more units must complete exterior elevated element inspections by this date. These inspections cover balconies, decks, walkways, and any load-bearing components more than six feet above the ground that are substantially supported by wood.”

Both statements are flatly incorrect as applied to California HOAs. SB 326, as codified in the Davis-Stirling Act at Civil Code 5551, required all California HOAs to complete their initial SB 326 inspections by January 1, 2025, not January 1, 2026. (Civil Code 5551(f).)

Contrary to what this “thought leader” wrote, the California Legislature never extended the SB 326 inspection deadline for HOAs. The fact is that the extension referenced by this author actually relates to SB 721, which applies to apartment buildings rather than HOAs. Initially, both SB 326 and SB 721 had January 1, 2025 inspection deadlines. But, a subsequent bill, SB 2579, extended the inspections deadline for apartments only to January 1, 2026. That bill explicitly excluded common interest developments (i.e., HOAs) from that extension.

The same article also misstated who is legally authorized to perform SB 326 inspections, claiming:

“Qualified inspectors—including licensed architects, structural engineers, civil engineers, and certified building inspectors—must examine a statistically significant sample of elements.”

That statement is also dead wrong. Civil Code 5551(b)(1) authorizes only licensed architects or licensed civil or structural engineers to perform SB 326 inspections for HOAs. Certified building inspectors do not, in fact, qualify. This error arises from the same statutory confusion that produced the incorrect deadline. In this case, also, that purported expert conflated SB 326, which governs HOAs, with SB 721, which applies to apartment buildings and happens to allow inspections by a broader class of professionals, including “certified building inspectors.”

These errors do not amount to minor technical mistakes. They reflect a fundamental misunderstanding of the statutory framework by an attorney who has actively marketed himself as a leading authority on HOA law. For an attorney who claims to have literally written the book on bad HOAs, this kind of misinformation predictably frustrates homeowners, boards, insurers, and lenders alike.

The purpose of this Fact Sheet is straightforward. It explains what SB 326 actually required of HOAs, why the January 1, 2025 deadline never changed, who may legally perform the inspections for your HOA, how confusion regarding these issues probably arose, and the practical consequences HOAs (and thus all of you homeowners) face if they are or remain out of compliance with Civil Code 5551.

For a quick statutory overview, see my article “California SB 326 Balcony Law: Consequences for HOAs and Homeowners.” For a deeper explanation of how SB 721 probably resulted in this so-called “expert’s” confusion, see my Fact Sheet, “New California Laws for 2026: What Employers, HOA Members, and Landlords Need to Know.”

Key Points

Now that more than a year has passed since the SB 326 compliance deadline for HOAs, the legal focus has shifted from planning to exposure. The following points explain what the law required, where misinformation arose, and why noncompliance carries real risk today.

• SB 326 required HOAs to complete their initial balcony inspections by January 1, 2025. Civil Code 5551 required HOAs to complete their first inspection of qualifying exterior elevated elements by January 1, 2025. That deadline applied to all common interest developments (i.e., HOAs) covered by the statute and was never amended or extended for HOAs.
• The January 1, 2026 deadline referred to by the author of that unfortunate article only ever applied to apartment buildings, and explicitly excluded HOAs. The 2026 date referred to in the erroneous article comes from SB 721 and AB 2579, which apply to multi-family rental and apartment buildings and explicitly exclude common interest developments. Those statutes did not amend Civil Code 5551 and thus did not change the HOA deadline.
• The same article that misstated the deadline also misstated who may perform SB 326 inspections. In the same discussion that incorrectly identified a 2026 deadline, the purported expert also claimed that certified building inspectors were authorized to perform SB 326 inspections for HOAs. That is most certainly NOT the case.
• Only licensed architects or licensed civil or structural engineers may perform SB 326-mandated inspections for HOAs. Civil Code 5551(b)(1) requires the inspection to be conducted by a licensed architect or a licensed civil or structural engineer. Certified building inspectors and contractor licensees are not authorized. An HOA that relied on an inspection performed by an unauthorized individual remains out of compliance.
• Confusing SB 326 with SB 721 produces legally invalid inspections for HOAs. SB 721 permits a broader class of inspectors for apartment buildings. SB 326 does not. Importing SB 721 standards into an HOA context, as this purported expert did, creates the illusion of compliance while leaving your HOA woefully exposed (if your HOA were to rely on such information without seeking the advice of its counsel).
• HOAs that missed the January 1, 2025 deadline are currently noncompliant. There is no statutory grace period and no retroactive cure built into Civil Code 5551. Noncompliant HOAs remain exposed until proper inspections are completed.
• Noncompliance with the Balcony Act’s requirements could have dire consequences for your HOA. Those HOAs who have not completed their initial inspections have placed themselves (and be extension, their members—i.e., you) in a precarious position. For example:
  • Insurance carriers are increasingly enforcing SB 326 compliance. Many insurers now require a valid SB 326 inspection report as a condition of renewing or issuing master policies. HOAs that relied on incorrect advice face nonrenewal, premium increases, or coverage exclusions.
  • Noncompliance affects lending, sales, and refinances. Lenders are flagging noncompliant associations, which can delay or derail unit sales and refinances and create disclosure-driven transaction risk.
  • Failure to comply materially increases negligence exposure. If an applicable exterior elevated element fails and the HOA did not complete the required inspection by January 1, 2025, plaintiffs will argue that the association ignored a clear statutory safety mandate, dramatically increasing liability exposure.
• Reliance on inaccurate information does not excuse noncompliance. What controls is what Civil Code 5551 requires, not what an article or trend piece claims. That’s why you should always verify information you read with an HOA attorney that you can trust. To help you determine which attorney you can really trust when it comes to HOA disputes, read my Fact Sheet, “How to Choose the Right HOA Lawyer in California: Experience, Costs, and Davis-Stirling Expertise.”

Taken together, these points show that SB 326 compliance is no longer a future obligation for HOAs. It is a missed statutory deadline with potential serious present-day insurance, lending, and liability consequences.

FAQs

About MBK Chapman Fact Sheets

Homeowners searching for answers online will often come across articles that appear authoritative, but are actually written as search-engine marketing content rather than by an experienced HOA lawyer. These pieces tend to prioritize keyword density over clarity, accuracy, or legal context, which often leaves homeowners more confused than informed.

At MBK Chapman, our Fact Sheets are part of our HOA Law Library and are written by Michael Kushner, an HOA lawyer with decades of hands-on experience representing California homeowners. In fact, Michael Kushner is the HOA lawyer who pioneered the systems and strategies used by some of California’s most successful homeowner-side HOA law firms.

Each Fact Sheet is deliberately concise, statute-based, and designed as a quick-reference guide to help homeowners understand key HOA laws and enforcement rules at a glance.

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