California Balcony Bill Poses New Requirements For HOAs

The California Balcony Bill presents new inspection requirements for community associations. As its name suggests, the bill focuses on multifamily residential dwellings with balconies.

What Is the California Balcony Bill?

California’s new balcony inspection requirements, established by the “balcony bill” (SB 721), mandate inspections for exterior elevated elements in multifamily residential buildings with three or more dwelling units. The bill came about following a tragic balcony collapse in Berkeley in 2015. It aims to prevent such incidents by ensuring the safety of these structures.

California, along with other states, has implemented building and façade inspection laws. It is one of 12 states requiring reserve studies or a reserve schedule for condominium associations. Recent events, such as the Champlain Towers South condominium collapse in Surfside, Florida, have elevated discussions on condominium safety.

The Importance of Inspections and Reserves

David Swedelson, a fellow in CAI’s College of Community Association Lawyers, emphasized the need for community associations to develop plans for balcony inspections and subsequent repairs. Many communities are discovering the serious condition of their balconies and are often compelled to address the issue through costly special assessments.

Swedelson advised associations to create reserve funds to cover maintenance and repairs. He noted that insurance may not be sufficient in the event of a wrongful death case.

Balcony inspection costs range from $300 to $800. This, coupled with varying repair expenses, may lead to resident dissatisfaction. Swedelson recommended proactive measures such as holding town hall meetings where legal experts or balcony inspection specialists can explain the law and its necessity. It is best to ease concerns through education and open communication.

Expert Recommendations

In response, CAI suggests statutory mandates for reserve studies and funding for all community associations. This helps provide guidance for a smooth transition to new requirements without causing financial strain on HOAs and their members.

Furthermore, CAI’s public policy recommends additional inspection requirements by developers throughout the development process, before transitioning to homeowners, and periodic inspections post-transition.

The California Balcony Bill was approved in 2018. Associations must comply with its inspection requirements by the end of 2024.