SB326 is Disrupting Condo Loans in California

If you own a condo in California or sit on your building’s HOA board, the new balcony laws may be affecting more than just your maintenance budget—they could be threatening your financing, too.

A recent report by Fox40 and EIN Presswire reveals that SB326 is disrupting condo lending statewide, causing delays, rejections, and additional scrutiny for both purchases and refinances.

Why Is This Happening?

SB326 requires all condominium associations in California to inspect their Exterior Elevated Elements (balconies, decks, stairs, walkways, etc.) at least once every nine years. These inspections must be documented, signed by a licensed professional, and submitted in accordance with local city requirements.

But here’s the kicker: Lenders are now asking for proof of compliance before approving loans.

If your building hasn’t conducted its required SB326 inspection, it could delay or derail:

Condo sales
Mortgage approvals
Refinancing options
Insurance renewals

And this isn’t just theory—it’s already happening.

What Lenders Are Looking For

According to Truss Financial Group, a top mortgage brokerage in California, many banks now require:

SB326 inspection reports
Proof that required repairs (if any) have been completed
Evidence that your HOA is budgeting properly for ongoing maintenance

HOAs that fail to meet these requirements are seeing deals fall through, buyers walk away, and property values stagnate.

What You Can Do About It

This isn’t a reason to panic—but it is a reason to act.

If your condo association has not yet scheduled your SB326 inspection, now is the time. With 2025 enforcement tightening, more lenders are flagging non-compliant buildings, and the backlog for inspections is growing.

At DrBalcony, we specialize in inspection-only services for SB326 and SB721:

No repairs = no conflict of interest
Detailed digital reports accepted by lenders
Fast turnaround and transparent pricing
20% price-beat guarantee for HOAs
Over 4,500 inspections completed across California

Don’t Let a Missed Inspection Kill Your Loan

Whether you’re looking to sell, refinance, or just stay compliant—you need your inspection done before it becomes a financial roadblock.

FAQ Section: Top Questions & Answers

My property is well-maintained. Do I really need SB-326/SB-721 inspections?

YES! Even with excellent maintenance, hidden issues can develop due to construction errors, material flaws, or severe weather exposure. Inspections are about ensuring those don’t turn into major problems.

Our balconies were inspected a few years ago – isn't that enough?

Unfortunately, no. California laws mandate inspections on a set schedule, often every 6 years. Deterioration can happen quickly, making regular assessments essential.

Can I use my regular handyman for the balcony inspection?

It’s not recommended. Unless they hold specific licenses (architect, structural engineer, etc.) their inspection won’t be considered valid for SB-326/SB-721 compliance.

What if the inspection uncovers major issues?

First, don’t panic! Early detection often means less extensive (and expensive) repairs are needed. Work with your inspector to prioritize fixes, and explore if they offer repair services for a streamlined solution.

I'm worried about the cost of inspections. Are there any resources to help?

Start by getting detailed quotes from multiple companies. Factor in that proactive inspections help you avoid even bigger costs down the line due to neglected problems. Some property management associations offer guidance on budgeting for balcony compliance.