What These Laws Actually Require
If you manage or own a multi-family property in California, you've probably heard about SB 326 and SB 721. These laws require regular inspections of Exterior Elevated Elements (EEE) - also called E3 inspections in many California cities. This includes balconies, decks, walkways, stairs, and landings that are 6+ feet above ground and supported by wood framing.
The inspection isn't just about checking if the railings are sturdy. Inspectors specifically look at waterproofing systems because water damage is the main reason these structures fail. When water gets past a worn-out membrane, it rots the wood framing underneath - and that's when things get expensive and dangerous.
Inspectors evaluate three things:
- Condition of load-bearing components (joists, beams, posts)
- Condition of waterproofing elements (membranes, flashing, sealants)
- Expected future performance and remaining service life
What Counts as an Exterior Elevated Element (EEE)?
SB 721 and SB 326 cover more than just balconies. The law applies to any wood-framed structure more than 6 feet above grade, including:
- Balconies and decks
- Exterior stairways
- Walkways and corridors
- Landings and entry structures
- Porches
- Roof decks over living space
Note: Concrete or steel-framed structures are generally exempt. The law targets wood-framed elements where water damage causes rot.
If your waterproofing is failing or near the end of its useful life, the report will flag it. Depending on what they find, you may need to repair or replace the system within a specific timeframe.
SB 326 vs. SB 721: Which One Applies to You?
SB 326 - Condominiums
- Applies to: Condos and HOAs with exterior elevated elements
- Inspection cycle: Every 9 years
- First deadline: January 1, 2025
- Who can inspect: Licensed architects or structural engineers only
SB 721 - Apartments
- Applies to: Apartments with 3+ units
- Inspection cycle: Every 6 years
- First deadline: January 1, 2026 (extended)
- Who can inspect: Architects, engineers, certified inspectors, or qualified contractors
- How many: At least 15% of balconies must be inspected
Both laws exist because of real balcony failures that injured and killed people. The requirements are serious, and so are the penalties for not complying.
Why Waterproofing Matters More Than You Think
Here's the thing about wood-framed balconies: they look fine from the outside even when they're rotting from the inside. Water gets in through failed waterproofing, soaks into the plywood and joists, and the decay happens where you can't see it.
By the time you notice soft spots or sagging, the damage is already significant. That's why these laws focus so heavily on waterproofing condition - it's the first line of defense against wood rot and structural failure.
How Water Destroys Wood-Framed Structures
Wood rot isn't just cosmetic damage - it's structural failure waiting to happen. Here's what occurs when waterproofing fails:
- Water infiltration: Moisture penetrates through cracks, worn membranes, or failed flashing
- Trapped moisture: Water soaks into plywood sheathing and framing members but can't dry out
- Fungal growth: Moisture + warmth creates ideal conditions for wood-destroying fungi (dry rot)
- Structural weakening: As wood fibers break down, load-bearing capacity decreases - often by 70-80% before visible signs appear
- Hidden damage: Decay spreads through connected framing while the walking surface still looks intact
The 2015 Berkeley balcony collapse that killed 6 people and led to SB 721/326 was caused by dry rot in the support beams - damage that wasn't visible from the surface.
When repairs require permits
California requires building permits for balcony work including:
- Replacement of waterproofing membranes
- Replacement of exterior finishes
- Any structural framing repairs
- Guardrail replacements
Using an ICC-ES listed system makes the permit process smoother because it comes with the code compliance documentation building departments want to see.
Code-Compliant Waterproofing Systems
For balcony repairs that need to pass permit review and meet California building codes, you want a system with independent third-party verification. Our ICC-ES listed waterproofing systems have been evaluated under AC39 acceptance criteria for walking decks.
Deck Flex W.M. System
Multi-layer cement-based system for plywood decks. Best choice when fire rating requirements are strict (many multi-family buildings need Class A).
- • 6-layer system with TetraCrete®
- • Class A fire rating
- • 10-year warranty when properly applied
- • Wind rated to 130 mph
Deck Flex W.F. System
Works on plywood or concrete substrates. Good option when Class B fire rating is acceptable and you want flexibility in substrate types.
- • Multi-layer elastomeric system
- • Class B fire rating
- • Plywood or concrete substrates
- • ICC-ES listed (ESR-3672)
Why ICC-ES listing matters for your project
When you pull a permit for balcony waterproofing replacement, the building department needs to verify the system meets code. An ICC-ES Evaluation Service Report (ESR) provides exactly what they're looking for:
- Independent verification of code compliance
- Fire rating classification (Class A or B)
- Approved substrates and installation requirements
- Testing data for waterproofing, impact resistance, and durability
View ESR-3672 report for full technical details.
Roof Decks Over Living Space
Roof decks and walking surfaces directly above occupied living space have the strictest requirements because a waterproofing failure means water entering someone's home - and fire spreading downward poses life-safety risks.
Why These Projects Are Different
Waterproofing Requirements
- • Zero tolerance for leaks - water goes directly into living space
- • Proper slope for drainage (typically 1/4" per foot minimum)
- • Flashing at all penetrations and perimeter walls
- • Higher scrutiny during permit review
Fire Rating Requirements
- • Class A fire rating typically required
- • Must protect the assembly below from fire exposure
- • Building officials rarely accept Class B for these applications
- • Insurance may require Class A documentation
Recommended System: Deck Flex W.M.
For roof decks over living space, we recommend the Deck Flex W.M. system because it provides:
- Class A fire rating - meets the stricter requirements for occupied space below
- One-hour fire-resistance rated assembly option - when used with proper substrate per IBC Table 721.1(3) Item 13-1.4
- Multi-layer waterproofing - 6-layer system with redundant protection
- ICC-ES listing (ESR-3672) - documentation for permit approval
The W.F. system (Class B) is generally not suitable for roof decks over occupied living space where Class A is required.
What Happens If You Don't Comply
California takes these inspections seriously. If your property doesn't meet the requirements:
- Daily fines: Local code enforcement can impose $100-500 per day until you comply
- Civil penalties: Up to $5,000 per violation under SB 326
- Board liability: HOA board members can face personal liability for failing to protect the association
- Occupancy restrictions: Severely damaged balconies may be posted as unsafe with access prohibited
- Insurance issues: Non-compliance may affect your property insurance coverage
Beyond the legal penalties, there's the liability exposure if someone gets hurt on a balcony you knew needed repairs.
What If Your Inspection Failed?
If your E3 inspection report flags waterproofing issues, don't panic - but do act quickly. The repair timeline depends on the severity of the findings.
Non-Emergency Repairs (NERR)
Repairs needed, but no immediate safety threat. Most waterproofing failures fall into this category.
- Timeline: 120 days to obtain permits
- Then: 120 days after permit to complete repairs
- Total: Up to 240 days from inspection report
Emergency Repairs (ERR)
Immediate safety threat identified. Typically severe rot, structural damage, or imminent failure risk.
- Immediate: Restrict access to affected areas
- Within 15 days: Inspector notifies building department
- Within 30 days: Begin emergency repairs
Steps to Take After a Failed Inspection
- 1 Review the inspection report carefully
Understand exactly what elements failed and why. The report should specify waterproofing deficiencies, structural concerns, and remaining useful life estimates.
- 2 Get repair bids from qualified contractors
Look for contractors experienced with SB 721/326 repairs who use ICC-ES listed waterproofing systems. The inspector who performed your inspection cannot do the repairs.
- 3 Pull permits before starting work
All waterproofing membrane replacements require permits. Using an ICC-ES listed system (like ESR-3672) simplifies the permit process.
- 4 Document everything
Keep records of the inspection, repair bids, permits, and completed work. California requires you to maintain these records for at least two inspection cycles (12 years).
- 5 Disclose to residents and buyers
HOAs must share inspection results with owners within 15 days of the board meeting. Reports must also be disclosed during property sales.
Regional Requirements by City
While SB 326 and SB 721 are state laws, individual cities and counties may have additional requirements or expedited enforcement. Here's what property managers and engineers should know about major California markets.
Los Angeles (LADBS)
The Los Angeles Department of Building and Safety (LADBS) enforces the 2020 Los Angeles Building Code (LABC), which adopts the California Building Code with local amendments. For balcony waterproofing repairs:
- Permits required for all waterproofing membrane replacements
- Plan check requires ICC-ES evaluation reports for code compliance verification
- Multi-family buildings typically require Class A fire-rated systems
- LADBS accepts ICC-ES ESR-3672 for Deck Flex systems as code compliance documentation
Deck Flex compliance: Both W.M. and W.F. systems are evaluated for compliance with 2020 LABC per ICC-ES ESR-3672.
San Francisco (DBI)
San Francisco's Department of Building Inspection enforces local building codes based on the California Building Code. The city has a high concentration of multi-family housing subject to SB 326 and SB 721.
- Strict enforcement of exterior elevated element inspections
- Many older buildings with wood-framed balconies requiring waterproofing upgrades
- Fire rating requirements often mandate Class A systems for multi-family
- ICC-ES listed products streamline the permit review process
Note: San Francisco's dense urban environment and coastal climate make proper waterproofing especially critical.
San Diego
San Diego County has a large inventory of condominiums and apartments, particularly in coastal communities where salt air accelerates waterproofing deterioration.
- Coastal properties face accelerated weathering - inspections often reveal waterproofing failures
- City of San Diego Development Services Department handles permit review
- HOA communities in areas like La Jolla, Pacific Beach, and Mission Beach have significant SB 326 compliance needs
- ICC-ES documentation helps expedite permit approvals
Long Beach
Long Beach has implemented an active Balcony Hazard Reporting Program through its Department of Development Services, with dedicated enforcement for SB 721 and SB 326 compliance.
- Dedicated balcony hazard reporting: balconyreporting@longbeach.gov
- All balcony repairs require permits through the Long Beach Permit Center
- Active enforcement with citations and fines for non-compliance
- Large inventory of multi-family buildings subject to inspection requirements
Resource: Long Beach Balcony Hazard Reporting
Orange County
Orange County cities each have their own building departments, but all enforce the California Building Code. The county has extensive multi-family housing stock.
- Individual cities (Irvine, Anaheim, Santa Ana, Huntington Beach) handle their own permits
- Coastal communities require waterproofing systems that withstand marine environment
- Many 1970s-1990s era condos reaching the point where waterproofing needs replacement
- 2019 California Building Code (CBC) and 2019 California Residential Code (CRC) apply
Local note: Deck Flex is manufactured in Huntington Beach, CA - local support available for Orange County projects.
Statewide Code Compliance
Deck Flex W.M. and W.F. waterproofing systems are ICC-ES listed (ESR-3672) for compliance with:
- 2019 California Building Code (CBC)
- 2019 California Residential Code (CRC)
- 2020 City of Los Angeles Building Code (LABC)
- International Building Code (IBC) 2021, 2018, 2015, 2012, 2009, 2006
This evaluation covers all California jurisdictions that have adopted the CBC or LABC.
For Property Managers & HOA Boards
If you're managing an SB 326 or SB 721 compliance project, here's what you need to know when evaluating waterproofing contractors and systems:
What to Ask Contractors
- Is the waterproofing system ICC-ES listed?
- What fire rating does it have (Class A or B)?
- Can you provide the ESR report number?
- What warranty is included?
- Is the system approved for your substrate type?
Red Flags to Avoid
- Systems without ICC-ES or third-party listing
- "We don't need permits for this work"
- No fire rating documentation
- Products not tested for your building type
- Expired or missing product warranties
Common Questions
What is SB 326 and who does it apply to?
SB 326 is a California law requiring condominium associations (HOAs) to inspect exterior elevated elements like balconies, decks, and walkways every 9 years. The first inspection deadline was January 1, 2025. It applies to any balcony or deck that is 6 feet or more above ground, designed for people to walk on, and supported by wood framing.
What is SB 721 and how is it different from SB 326?
SB 721 applies to apartment buildings with 3 or more units (not condos). Inspections are required every 6 years, with the deadline extended to January 1, 2026. The main difference is who it covers: SB 326 is for condos/HOAs, SB 721 is for rental apartments.
Why do balcony inspections focus on waterproofing?
Water damage is the leading cause of balcony failures. Inspectors specifically evaluate the condition of waterproofing membranes and drainage because moisture causes wood rot, which weakens the structural framing. Failed waterproofing means water gets into the structure and causes decay you often cannot see until it becomes dangerous.
Do I need a permit to replace balcony waterproofing in California?
Yes. California requires permits for replacement of membranes, exterior finishes, or waterproofing systems on balconies. Using an ICC-ES listed system helps with permit approval because it provides the code compliance documentation building officials need.
What happens if our property fails an SB 326 or SB 721 inspection?
If the inspector finds conditions that pose an immediate threat to safety, you must take preventive measures right away - this could mean restricting access to the balcony. You then have a set timeframe to complete repairs. The repair timeline depends on the severity of the findings. Failure to comply can result in fines of $100-500 per day, civil penalties up to $5,000 per violation, and potential liability issues for HOA board members.
What waterproofing system should we use for SB 721 balcony repairs?
Look for ICC-ES listed systems evaluated under AC39 (the acceptance criteria for walking decks). These systems have been independently tested for waterproofing performance, fire resistance, wear resistance, and code compliance. An ICC-ES evaluation report gives building officials the documentation they need to approve your repair project.
What waterproofing systems are LADBS approved for Los Angeles balcony repairs?
For Los Angeles balcony repairs, LADBS accepts ICC-ES listed systems that comply with the 2020 Los Angeles Building Code (LABC). Deck Flex W.M. and W.F. waterproofing systems are ICC-ES listed (ESR-3672) and evaluated for compliance with both the 2020 LABC and California Building Code. The ICC-ES evaluation report serves as the code compliance documentation that LADBS plan checkers require.
Do I need Class A or Class B fire rating for my California balcony project?
Class A fire rating is typically required for multi-family residential buildings (condos, apartments) and commercial properties in California. Class B may be acceptable for some single-family residential applications where code does not specifically require Class A. Building officials make the final determination based on your specific project. When in doubt, specify Class A to avoid permit issues.
How do I get a permit for balcony waterproofing replacement in California?
Contact your local building department (LADBS in Los Angeles, DBI in San Francisco, etc.) to apply for a building permit. You will need to submit plans showing the scope of work and product specifications. Using an ICC-ES listed waterproofing system simplifies permit approval because the ESR report provides the code compliance documentation plan checkers require. Include the ESR report number (ESR-3672 for Deck Flex systems) in your submittal package.
What should I do if my balcony fails an SB 721 or SB 326 inspection?
If your inspection report flags waterproofing or structural issues, the repair timeline depends on severity. Non-emergency repairs (NERR) give you 120 days to obtain permits and another 120 days to complete work. Emergency repairs (ERR) require immediate access restriction and repairs within 30 days. Review the report carefully, get bids from qualified contractors who use ICC-ES listed systems, pull permits before starting work, and document everything for your records.
What is an Exterior Elevated Element (EEE) inspection?
EEE inspection (also called E3 inspection) is the technical term for balcony inspections required by SB 721 and SB 326. Exterior elevated elements include any wood-framed structure more than 6 feet above ground: balconies, decks, exterior stairways, walkways, corridors, landings, and porches. Many California cities use the term E3 or EEE instead of balcony inspection.
Related Resources
Need Help With Your Project?
We've been helping contractors and property managers with deck waterproofing projects since 1985. If you have questions about which system is right for your SB 326 or SB 721 repairs, we're here to help.