Balcony Inspection Required for 3+ Multifamily Units in California

Chalet with wood balcony

In 2015 there was a disastrous collapse of a balcony in Berkeley where a number of students attending a party were injured and six died. This was not an "old" building, but it was one where there was moisture intrusion into the wood framing, resulting in dry rot. 

 As a result of this, the following inspections bills came about.

There were two bills passed in 2018 and 2019 concerning balcony inspections where the structure is supported with wood or wood-based material.

The bill passed in 2018, SB 721, concerns properties with 3 or more multifamily units (not condominiums or other HOA property) that have a balcony, elevated walkway or staircase. 

Do you have a house with two units in the rear with balcony or stair case made of wood? These are not uncommon in many residential neighborhoods, and fall under the requirements of SB 721. 

What is required to be inspected is an “Exterior Elevated Element” (EEE), which is defined as balconies, decks, porches, stairways, walkways, and entry structures that extend beyond exterior walls of the building, which has a walking surface that is elevated more than six feet above ground level and is designed for human occupancy or use.

The due date for this inspection of balconies, elevated walkways and staircases is January 1, 2025.  The inspection must be performed by a licensed contractor with an "A", "B" or "C-5" license with at least 5 years experience, or a certified building inspection.  NOTE:  10-11-2024 - THE DEADLINE IS NOW EXTENDED TO JANUARY 1, 2026.

Inspections on apartment buildings must take place every six years.

Obviously, time is running out so if you fall into this category of ownership of 3+ multifamily units, you should take action as soon as possible.  What is the cost?  It varies according to the number of units, but one local company recently stated that their charge is $1200 for properties of 3-10 units. 

Another issue owners should think about are possible requirements of proof of inspection and completion of any repairs by the owner's insurance company, which may require submission of the report.

For more information, here is a link to SB 721 as passed by the Legislature. 

For more information on the 2015 balcony collapse see this Wikipedia article.

If you are interested in obtaining the name of a company to perform this inspection, please contact me.

If you are interested in a valuation of your property because you need it for insurance purposes, or you are thinking of selling it, please contact me.

Julia Huntsman, REALTOR, Broker | http://www.abodes.realestate | 562-896-2609 | California Lic. #01188996

California Law: Balcony Inspection Due 1-1-2025

The balcony inspection law deadline is looming. Owners of buildings with three or more units with at least one balcony must complete their initial balcony inspections by January 1, 2025.

However, not everyone needs to worry about this law. The inspection requirement applies only to the following types of property:

• Buildings with three or more multifamily dwelling units (this includes condominiums),
• When there is an elevated balcony, stairway, walkway, or deck (at least six feet above the ground),
• That is supported in whole or in substantial part with wood or wood-based material, and
• The balcony or walkway and the load-bearing components thereof extend beyond the exterior walls of the building.

If the stairway or walkway does not extend beyond the exterior walls or if the balcony is not supported in whole or in substantial part by wood or wood-based products, then this law does not apply. Individual owners of condo units are also not required to perform an inspection; that requirement is placed on the condo association itself.  California Association of REALTORS

Building with outset balconies

In condo associations, a licensed engineer or architect must perform the inspection; in other properties a licensed general contractor with A,B or C-5 license may perform the inspection. In condo associations, the law allows the repairs to be done by the inspector, but associations may wish to hire a separate entity to do any necessary repairs.

Several REALTOR forms are being revised, or have been, to include this legal requirement and advise the parties about it.  Fannie Mae loan guidelines require the lender to review the report and repair progress for loan qualification purposes; without completion, an HOA property, for example, will be ineligible for a Fannie Mae loan. Why is this important? Because Fannie Mae carries about 70% of the mortgage market.

For more specifics on this law, which requires an inspection every 9 years, go to Civil Code Sec 5551 information

Please contact me if you would like a one-page Guide that summarizes the law. 

Julia Huntsman, REALTOR, Broker | http://www.abodes.realestate | 562-896-2609 | California Lic. #01188996

Rent Growth is Surging

Rents increase in 93% of metro areas

The national multifamily is surging ahead this year in many markets, over 10% to $1539 monthly rent nationwide.  August, according to Yardi Matrix's August report, showed year over year rent growth in 30 markets:  Phoenix leading at 22 percent, Tampa, Las Vegas, San Francisco at 1.4%.  

In August, seven gateway markets surpassed pre-pandamic levels, from March 2020:   Miami (16.2 percent), Boston (7.0 percent), Chicago (6.4 percent), Los Angeles (4.9 percent) and Washington, D.C. (3.9 percent).  The ApartmentList.com graphic, from an April presentation, shows increases in metro areas.

On a month-over-month basis from July 2021, Las Vegas, at 3.3 percent, with the Inland Empire and Seattle, at 3.1 percent, registered the largest increases.

Single family rentals, however, outpaces multifamily in the top 30 metro areas, especially in Florida and Texas metro areas. 

Long Beach

Locally, what are rents for residential properties?  For brand new housing, Holland Partners has recently opened Volta at 635 Pine where rents start at $2175 for a 1st floor studio under 500 sq. ft., on up to $4590 for a townhome style unit--there are 11 units in this project designated for affordable housing.  

Long Beach is a mix of neighborhoods and property styles, so if the apartment searcher opts for a wider variety, the REALTOR MLS reflects a range of different properties on the market for rent or lease, starting at $1395/month for a 500 sq.ft. unit on Pine Ave (downtown) to $15,000 for a house on Naples Island.   Average rent for units in a 4-plex or other apartment style unit is $2100/month; average rent for condominiums is $3000/month; average for a single family is $3477/month (excluding the outlier house for $15,000).  

Alternately, rents in Huntington Beach start at $1800 for 593 sq. ft. condo; Lakewood currently has 4 listings for tent (in the MLS), starting at $3000; Cerritos starts at $2195.  While the renter may find more listings on other internet sites, these prices will probably be very indicative of what is listed elsewhere.

There are many economic factors relating to the higher rents, but one major factor stands out, that consumers who did not lose their jobs during the 2020 pandemic months are still economically strong, while other workers in the food industry and retail were more affected, unfortunately, and will take longer to gain strength in the housing market.  The numbers of individuals who have returned to family homes is a topic for another day, but is also part of the renter picture.

Julia Huntsman, REALTOR, Broker | www.juliahuntsman.com | 562-896-2609 | California Lic. #01188996