On June 16, 2015, a balcony at an apartment complex in Berkeley, California collapsed, killing six people. The cause was dry rot in the structural framing concealed behind the finished exterior — work that had been signed off, inspected, and occupied for years. The legislative response reshaped how California thinks about contractor accountability long after a project is complete.
SB 721: Multifamily Residential Balconies
Senate Bill 721 requires that all exterior elevated elements on multifamily residential buildings with three or more units be inspected by a licensed architect, civil or structural engineer, or experienced contractor. The first inspection was due by January 1, 2025, with subsequent inspections every six years. For GCs, this extends the exposure window for framing subcontractor work dramatically.
SB 326: The HOA Version
Senate Bill 326 applies to common interest developments (condominiums managed by HOAs), requiring the same six-year inspection cycle. Liability in SB 326 claims runs back to the original contractor and subcontractors responsible for the construction defects found.
What This Means for How You Document Sub Work
- Waterproofing and flashing subs need to be vetted more rigorously — their work has a 10+ year liability tail
- Maintain documentation of all sub inspections and third-party waterproofing reports for the full California statute of limitations period
- Ensure framing and waterproofing subs carry completed operations coverage
- Retain sub contracts and certificates of insurance for 10 years on multifamily projects
