If you own or manage apartments or condos in California, both inspection deadlines have already passed. SB 721’s first-inspection deadline was January 1, 2026. SB 326’s was January 1, 2025 — and contrary to what many HOAs assumed, it was never extended. Non-compliant properties are now exposed to daily fines, insurance problems, and — for condos — the loss of conventional financing. Here’s what the laws require and what to do now.

SB 721 vs. SB 326: Which One Applies to You?

SB 721 (Health & Safety Code §17973) covers rental apartment buildings with 3 or more units — apartments, mixed-use residential, student and senior housing. First inspection deadline: January 1, 2026 (passed). Re-inspection every 6 years. Fines: $100–$500 per day of non-compliance.

SB 326 (Civil Code §5551, Davis-Stirling Act) covers HOA-governed condominiums with 3 or more units. First inspection deadline: January 1, 2025 (passed — not extended). Re-inspection every 9 years, coordinated with the reserve study. No per-day statutory fine — but board members can be held personally liable, insurers are non-renewing non-compliant projects, and condos without a valid report lose Fannie Mae/Freddie Mac warrantable status, killing conventional buyer financing.

What Gets Inspected

Exterior Elevated Elements (EEEs) more than 6 feet above ground: balconies, decks, porches, stairways, walkways, landings, railings, and their waterproofing and drainage. SB 721 requires at least 15% of each element type to be inspected; SB 326 requires a statistically significant sample (95% confidence, 5% margin of error). Emergency hazards get reported to the local building department immediately, and repairs are generally due within 120 days of the report.

Who Is Legally Allowed to Inspect?

This is where many properties go wrong:

• SB 721: licensed architect, civil/structural engineer, CSLB A, B, or C-5 contractor with 5+ years’ experience, or ICC-certified building inspector.
• SB 326: licensed architect or structural/civil engineer only — contractors and home inspectors do not qualify, and the report must carry a professional engineer’s stamp. An SB 721 inspection does not satisfy SB 326.

Universal Inspect performs SB 721 inspections directly under our A (General Engineering) and B (General Building) licenses — and when SB 326 applies, we coordinate the engineer-stamped inspection and handle the repair work ourselves, so your HOA deals with one accountable team.

What Non-Compliance Costs

• Apartments (SB 721): $100–$500 per day in fines, plus red-tag risk on hazardous elements.
• Condos (SB 326): board-member personal liability, insurance non-renewal or exclusions, loss of warrantable status (buyers can’t get conventional loans), and massive negligence exposure if an element fails.
• Repairs only get more expensive: minor fixes run under $1K–$8K; moderate deterioration $15K–$100K; major structural work $50K–$250K+. Older wood-frame buildings run highest.

What To Do Right Now

1. Schedule the inspection immediately. There is no grace period — exposure ends only when a proper inspection is completed.
2. Use a qualified inspector. For condos, that means a licensed engineer or architect — a contractor-performed “SB 326” inspection leaves the HOA exposed.
3. Complete repairs within the statutory window and document everything.
4. Notify your insurer and any pending lenders — both are actively enforcing compliance now.
5. Add the report summary to resale disclosures (required under SB 410 as of 2026).

Typical Inspection Costs

Published 2026 ranges: $1,500–$5,000 for a typical property; $2,500–$8,000 for a ~20-unit building; SB 326 inspections often quoted $500–$1,500 per unit. Every property is different — call for an exact quote.

Get Compliant Before It Gets Expensive

Universal Inspect serves HOAs and apartment owners across Los Angeles, Orange, Riverside, and San Bernardino counties. Call 310.880.9718 — we’ll tell you which law applies to your property, what the inspection involves, and give you a straight quote.

Figures reflect published 2026 industry ranges and the statutes as of October 2026. This page is general information, not legal advice.