Condo Balcony
California Senate Bill 326 (SB 326) Balcony Inspection Requirements
California Senate Bill 326 (SB 326) Balcony Inspection Requirements
Effective January 1, 2020, SB 326 mandates that condominium associations with buildings of three or more units must conduct regular inspections of exterior elevated elements (EEEs) such as balconies, decks, and walkways. Key points include:
-
Initial Inspection Deadline: January 1, 2025
-
Inspection Frequency: Every nine years thereafter
-
Scope: Applies to EEEs that are six feet or more above ground and supported substantially by wood or wood-based products
-
Inspector Qualifications: Inspections must be performed by a licensed structural engineer or architect
-
Reporting: Findings must be reported to the association's board and incorporated into the reserve study California Homeowners Associationapsmanagement.com
Non-compliance can lead to enforcement actions by local building departments, including fines and liens.
Fannie Mae Financing Requirements for Condominiums
Fannie Mae has updated its lending guidelines to enhance the safety and financial stability of condominium projects. These changes impact the eligibility of condos for Fannie Mae-backed loans:
-
Critical Repairs: Projects requiring significant repairs, including structural issues or safety hazards, are deemed ineligible for Fannie Mae financing
-
Insurance Requirements: Condominium associations must maintain adequate insurance coverage. Failure to do so can result in the project's addition to Fannie Mae's ineligible list, affecting the ability of units to qualify for conforming loans
-
Disclosure Obligations: Associations are required to provide timely written notice to mortgagees and guarantors regarding significant issues, such as:
-
Any condemnation or casualty loss affecting a material portion of the project
-
Delinquencies in the payment of assessments
-
Lapses or cancellations of insurance policies
-
These measures aim to ensure that condominium projects are structurally sound and financially responsible, thereby protecting both residents and lenders.
Compliance Recommendations
To align with SB 326 and Fannie Mae's guidelines:
-
Schedule Inspections: Ensure that all required inspections are completed by the stipulated deadlines.
-
Address Repairs Promptly: Undertake necessary repairs identified during inspections to maintain structural integrity and eligibility for financing.
-
Maintain Adequate Insurance: Review and update insurance policies to meet Fannie Mae's requirements.
-
Transparent Communication: Keep clear records and communicate openly with unit owners about compliance efforts and any associated costs.
Proactive adherence to these regulations not only ensures safety but also preserves property values and financing options for condominium units.
