The introduction of Senate Bill 326 (SB326) in California, commonly referred to as the "Balcony Bill," represents a crucial step toward ensuring the structural safety of balconies and other exterior elevated elements (EEEs) in condominium complexes.
The Origins of SB326
SB326 was passed following the catastrophic balcony collapse at the Library Gardens Apartments in Berkeley in 2015. This incident resulted in the death of six individuals and serious injuries to seven others.
Key Points of SB326
- Mandates routine inspections of exterior elevated elements
- Applies to condominiums with three or more multifamily units
- First inspection deadline: January 1, 2025
- Subsequent inspections required every nine years
What Does SB326 Require?
SB326 focuses on ensuring the safety of EEEs, which include balconies, decks, stairways, walkways, and railings that are elevated more than six feet above ground level.
"The purpose is to identify structural issues, such as water intrusion or dry rot, that could compromise safety."
Inspection Procedures
The law requires that inspections be carried out by a licensed architect or structural engineer. Inspections must be minimally invasive, employing tools such as moisture meters, borescopes, or infrared technology to assess the condition of the wood structural elements.
Need Help with SB326 Compliance?
Our team of experts can guide you through the inspection process and ensure your property meets all requirements.
In many condo communities, balconies represent not only a desirable feature for residents but also a significant area of responsibility for both individual owners and the homeowners' association (HOA). It's essential to understand the legal obligations, inspection requirements, and upkeep responsibilities to ensure the safety and longevity of these structures.
Who is Responsible for Balconies?
Balconies often fall into a category known as "exclusive use common areas." These are spaces reserved for the private use of individual condo owners but are still part of the building's overall structure, which the HOA maintains. In many cases, the responsibility for repairs, maintenance, and inspections can be shared between the condo owner and the HOA.
The distinction between who does what can vary depending on the condo's governing documents, including the declaration and bylaws.
Typically, the association is responsible for maintaining the structural integrity of the balcony, such as ensuring the railings, concrete, and supports are up to code and safe. However, day-to-day maintenance tasks—like cleaning the space or maintaining furniture—usually fall on the individual owner.
Legal Obligations for Inspections
State laws play a significant role in determining how and when balconies must be inspected.
For example, following several high-profile balcony collapses, some states have introduced stringent inspection laws that require routine structural checks by licensed engineers.
These laws aim to prevent accidents by ensuring that balconies meet current safety standards and are not at risk of failure.
For HOAs, this means keeping up with local and state inspection mandates and ensuring that inspections are completed on time.
Failure to comply with these regulations can lead to hefty fines, legal consequences, or even catastrophic accidents that harm residents. Working with professional inspectors who understand the specific needs of condo balconies is critical in this regard.
Maintenance and Upkeep
Balcony upkeep is a shared responsibility between the individual unit owner and the HOA.
While owners are typically responsible for cosmetic elements like paint and personal decor, the association may be tasked with maintaining the structural components, such as waterproofing or sealing the surfaces to protect against damage.
Periodic maintenance is key to extending the life of a balcony.
Associations should incorporate balcony care into their regular maintenance schedules, ensuring inspections happen frequently, and any potential hazards—such as cracks or water leaks—are addressed immediately.
Proactive upkeep can also save the association money in the long run. Addressing issues early prevents them from becoming more significant, costly problems.
Furthermore, regular communication with owners about their responsibilities can help prevent accidental damage or negligence that could compromise the balcony's safety.
Conclusion
Balconies in condo communities offer residents a great place to enjoy the outdoors, but they come with important obligations.
Understanding the division of responsibility between individual owners and the HOA is crucial to ensuring that these spaces remain safe and functional.
Regular inspections, proactive maintenance, and compliance with local laws are essential to preventing accidents and maintaining property value.
By working together, HOAs and residents can ensure that balconies remain an asset rather than a liability.
Mark Chase is the founder of Sierra Nevada Property Management and a seasoned professional in residential and commercial real estate. With over 30 years of experience, he has also founded two technology companies in the commercial and multi-residential sectors. Mark is a licensed real estate broker in California and has been recognized by major publications including Business 2.0 and the Los Angeles Times for his innovations. His contributions have appeared in QSR Magazine, Bloomberg, and The Broker List's "Top 10 CRE Blogs." Mark enjoys outdoor activities such as snowboarding, hiking, and mountain biking in the Sierra Nevada with his Labrador retriever, Chief.
DRE#01072820
Self-managing a homeowner's association (HOA) can seem appealing to many communities. It offers a level of autonomy, and there's the potential for cost savings, but the reality often presents significant challenges. Without the professional support of a management company, HOAs can find themselves overwhelmed by tasks that require specialized skills, legal knowledge, and substantial time commitments. Below, we explore the top 10 issues self-managed HOAs frequently face.
1. Lack of Management Expertise
Running an HOA involves more than just occasional meetings. Board members often lack the administrative and operational experience required to handle the day-to-day responsibilities of managing a community.
From overseeing maintenance to balancing the budget, this lack of experience can lead to costly mistakes and frustration among board members.
2. Legal Non-Compliance
HOAs are subject to various laws and regulations, including federal, state, and local statutes. Staying compliant with these regulations is a challenge, especially when laws change.
Failure to comply can result in lawsuits and hefty fines, putting the association's financial health at risk. Professional management companies stay up-to-date on these legal matters, but self-managed HOAs may struggle to keep pace.
3. Financial Mismanagement
Managing an HOA's budget involves more than paying bills and collecting dues. Without careful planning, self-managed HOAs may find their reserve funds underfunded, leaving them unprepared for unexpected repairs or future maintenance.
In worst-case scenarios, this can lead to costly special assessments for homeowners.
4. Communication Breakdowns
Maintaining open lines of communication between the board, homeowners, and vendors is critical for any HOA.
Without proper systems in place, self-managed HOAs often face communication breakdowns. Poor communication can lead to misunderstandings, lack of transparency, and decreased homeowner satisfaction.
5. Volunteer Fatigue
Volunteer burnout is one of the biggest challenges self-managed HOAs face. Board members, who are often volunteers, may find themselves overwhelmed by the sheer volume of responsibilities.
Finding motivated individuals to serve on the board can be difficult, especially when the time commitment grows.
6. Ineffective Maintenance
Managing property maintenance is a significant part of any HOA's duties. Self-managed HOAs often rely on volunteers or contractors for routine upkeep.
Without the oversight of a professional management company, maintenance tasks can be delayed, leading to deferred repairs and higher long-term costs.
7. Conflict Resolution
In any community, conflicts are inevitable—whether they're between board members, neighbors, or the board and homeowners.
Without a neutral third party to mediate disputes, conflicts can escalate, causing division within the community and affecting the overall quality of life.
8. Outdated Processes
Self-managed HOAs frequently rely on manual processes, which can slow down administrative tasks.
For example, a board member might use personal spreadsheets to track finances, leading to inefficiencies and the potential for human error.
Management companies typically use industry-specific software that automates many of these tasks, improving accuracy and efficiency.
9. Risk of Burnout
As volunteer board members juggle their responsibilities with their personal lives, burnout can become a real issue. This often results in high turnover within the board, which can create instability for the HOA.
The more responsibilities board members take on, the higher the risk of burnout, especially when they don't have access to professional support.
10. Inconsistent Enforcement of Rules
One of the key roles of an HOA board is to enforce community rules consistently.
However, self-managed boards can sometimes struggle with this, leading to complaints from residents and potential legal action if certain rules are not upheld uniformly. Professional management companies ensure that rules are enforced fairly across the board.
Conclusion
While the idea of self-managing an HOA may seem attractive at first, the reality is that it requires significant expertise, time, and resources.
Without professional support, board members face numerous challenges that can affect the community's well-being and financial health.
For those who choose to self-manage, it's crucial to invest in education, use technology to streamline processes, and seek outside help when needed.
Understanding these common pitfalls can help communities make informed decisions about whether self-management is the right choice for them.
By acknowledging and addressing these issues, self-managed HOAs can avoid the most common pitfalls and ensure they are creating a well-functioning, harmonious community.
If professional assistance is needed, management companies can offer the experience and tools necessary to take the burden off volunteer board members while protecting the community's assets.
Mark Chase is the founder of Sierra Nevada Property Management and a seasoned professional in residential and commercial real estate. With over 30 years of experience, he has also founded two technology companies in the commercial and multi-residential sectors. Mark is a licensed real estate broker in California and has been recognized by major publications including Business 2.0 and the Los Angeles Times for his innovations. His contributions have appeared in QSR Magazine, Bloomberg, and The Broker List's "Top 10 CRE Blogs." Mark enjoys outdoor activities such as snowboarding, hiking, and mountain biking in the Sierra Nevada with his Labrador retriever, Chief.
DRE#01072820