09/04/2026
This is the most important thing I can tell a Bay Area condo owner right now, and almost nobody is saying it out loud.
California's SB 326 balcony inspection law has been on the books for years. Your HOA either did the inspection or quietly didn't. Until this summer, that was a legal and insurance issue.
As of August 3, 2026, it is a MORTGAGE issue.
WHAT CHANGED
Fannie Mae retired Limited Review for condo projects of 11+ units. Every conventional condo loan now requires Full Review — and Full Review examines the building: reserve funding, owner-occupancy ratio, active litigation, deferred maintenance, and SB 326 inspection compliance and documentation.
So a building with an incomplete inspection, identified deficiencies, or unfunded repairs now creates an underwriting obstacle for YOUR buyer — regardless of how strong that buyer is.
WHAT SB 326 ACTUALLY REQUIRES
→ Applies to condos and CIDs with three or more units that have exterior elevated elements — balconies, decks, stairs, walkways — more than six feet above ground and substantially wood-framed.
→ The initial inspection deadline was January 1, 2025. It has passed, and condos got no extension. (AB 2579 extended only SB 721, which covers apartment buildings.)
→ Re-inspection every nine years.
→ Only a licensed structural engineer, architect, or civil engineer may perform it. A general contractor cannot.
→ The methodology requires a 95% confidence level with no more than a 5% margin of error, so a meaningful share of elements must be examined.
WHAT IT COSTS
Mid-size complexes commonly run $15,000 to $50,000+ for the inspection alone — repairs are separate. Non-compliance carries its own price: insurers now demand proof of compliance, with reported premium increases up to 300%, coverage exclusions, and personal liability exposure for board members under Davis-Stirling.
WHAT TO DO — THIS WEEK, NOT AT LISTING
1. Ask your HOA in writing for the SB 326 inspection report and its date.
2. Ask what the report found and what has been repaired.
3. Ask how repairs were funded — reserves, special assessment, or unfunded.
4. If your board hasn't done it, understand that you are now the owner most motivated to push. Your equity is the thing at stake.
If your building IS compliant, that is now a genuine marketing asset. Lead with it.
Own a Peninsula or South Bay condo? DM me "SB326" and I'll help you request the right documents from your HOA and read what comes back.