Based on recent California legislation, particularly from the 2024 and 2025 sessions, there are no entirely new HOA laws scheduled to take effect precisely on January 1, 2026.
However, the most significant development with direct 2026 implications is the mandatory deadline under Senate Bill 326 (SB 326), enacted in 2019 and amended in 2024 (via AB 2579, signed September 28, 2024), which requires initial inspections of exterior elevated elements (e.g., balconies, decks, walkways) by January 1, 2026. This applies to condominium HOAs (common interest developments) with three or more units where these elements are supported substantially by wood or wood-based products and are more than six feet above ground level. The law aims to prevent structural failures, like the 2015 Berkeley balcony collapse that killed six people, by ensuring early detection of issues such as dry rot or waterproofing failures.
This deadline was extended from January 1, 2025, to provide more time amid inspector shortages and high demand. Additionally, AB 2114 (signed July 15, 2024) expands who can perform these inspections to include licensed civil engineers, easing compliance. Failure to meet the deadline could result in fines from local building departments, enforcement liens, loss of insurance coverage for liability, and personal injury lawsuits if accidents occur.
SB 326 does not apply to planned developments (non-condo HOAs) or apartment buildings without an HOA; those fall under the related SB 721, which also has a January 1, 2026, deadline but requires inspections every six years and reports to local authorities if hazards are found. For condo HOAs, inspections must occur every nine years thereafter, aligning with every third reserve study.
Details of SB 326’s Impact on 2026 HOA Operations
- What Must Happen by January 1, 2026?
- The HOA must hire a qualified professional (licensed architect, structural engineer, civil engineer, or certified building inspector) to conduct a visual inspection of a statistically significant sample of elevated elements (enough to provide 95% confidence in results, with a ±5% margin of error—typically 15% or more of balconies).
- Inspections cover load-bearing components (e.g., joists, beams) and associated waterproofing systems (e.g., membranes, sealants). Methods include visual checks, moisture meters, borescopes, or infrared imaging; destructive testing may be needed if issues are suspected.
- The inspector must submit a stamped/signed report to the HOA board within 45 days, detailing the condition, remaining useful life (at least six years projected), and repair recommendations. Reports must be kept for at least 18 years (two cycles) and included in the reserve study.
- If the building was inspected within three years before January 1, 2019, no new inspection is required until January 1, 2026.
- Consequences Starting in 2026:
- If compliant: The HOA avoids penalties and gains data for budgeting repairs, potentially saving costs through early intervention (e.g., one Los Angeles HOA saved $60,000 by addressing minor water damage early). Subsequent inspections ensure ongoing safety.
- If non-compliant: Local code enforcement can impose fees, recover costs, and place liens on the property. The HOA loses liability protection from insurance for injuries on elevated elements, exposing it to lawsuits. Boards may face personal liability for negligence.
- This does not shift maintenance responsibility—HOAs must still repair elements they own or are obligated to maintain under governing documents—but it mandates proactive inspections regardless.
- Why This Matters for 2026:
- As of September 2025, demand for qualified inspectors is surging, with many booked through year-end. Post-deadline, 2026 will see enforcement ramp up, including audits by cities like Los Angeles and San Diego. HOAs should budget $500–$2,000 per building for inspections, plus repair costs if issues are found (e.g., waterproofing can run $10,000+ per balcony).
- Homeowners in affected condos should review their HOA’s plans; if your building has no qualifying elements (e.g., all concrete-supported), file an exemption declaration with the local building department.
Other Relevant 2025 Legislation with Potential 2026 Implications
While most 2025 laws (effective January 1, 2025) focus on elections, maintenance, and transparency, they will influence HOA operations throughout 2026, especially during implementation. The 2025 session (adjourned September 2025) produced bills signed in late 2025, but none target 2026 specifically beyond SB 326 extensions. Key ones include:
- Bill: AB 2159 (Electronic Voting)
Summary: Allows opt-in electronic voting for director elections and governing document amendments (but not assessments). HOAs must amend election rules 90 days before use and provide paper ballot options.
Effective Date & 2026 Relevance: Effective January 1, 2025. In 2026, this streamlines elections but requires tech setup and training; non-compliance could invalidate votes, leading to disputes.
- Bill: AB 2460 (Quorum Requirements)
Summary: Lowers reconvened election quorum to 20% of all members (or lower if governing documents specify). Requires 15-day notice for reconvened meetings.
Effective Date & 2026 Relevance: Effective January 1, 2025. By 2026, this reduces barriers to decision-making, but boards must document processes meticulously to avoid challenges.
- Bill: SB 900 (Utility Interruptions)
Summary: HOAs responsible for repairs to restore gas, water, heat, or electricity from common areas (even if extending into units), starting within 14 days. Allows emergency assessments/loans without vote if reserves are low. Utility lines must be in reserve studies.
Effective Date & 2026 Relevance: Effective January 1, 2025. In 2026, expect more claims during outages (e.g., wildfires); boards gain flexibility but face liability for delays.
- Bill: SB 428 (Workplace Harassment)
Summary: Expands restraining orders to include harassment of HOA staff/managers, protecting against threats or annoyances.
Effective Date & 2026 Relevance: Effective January 1, 2025. Enhances board/staff safety in 2026, potentially reducing turnover amid rising disputes.
- Bill: AB 572 (Assessment Caps for Affordable Housing)
Summary: New HOAs with 20+ deed-restricted affordable units limit increases to 5% + COLA (max 10%).
Effective Date & 2026 Relevance: Effective January 1, 2025. Affects budgeting in 2026 for mixed-income communities, promoting affordability.
- Bill: AB 130 (Fines Cap, Signed June 30, 2025)
Summary: Caps non-safety violation fines at $100; higher fines require a board finding of health/safety risk in an open meeting. Adds cure opportunities and internal dispute resolution (IDR) before hearings.
Effective Date & 2026 Relevance: Effective immediately (July 2025). In 2026, this limits enforcement power, potentially increasing violations but reducing litigation; update fine schedules promptly.
These laws build on the Davis-Stirling Act (Civil Code §4000 et seq.), emphasizing transparency and sustainability. No major 2026 overhauls (e.g., to foreclosures or rentals) are confirmed, but the 2026 legislative session could introduce more.
Recommendations for California HOA Residents and Boards
- For Homeowners: Attend board meetings to track SB 326 progress; request inspection reports post-2026. If concerned about compliance or fines, consult the California Department of Real Estate or an attorney under the Davis-Stirling Act.
- For Boards: Schedule SB 326 inspections ASAP (contact licensed professionals via the Structural Engineers Association of California). Update policies for 2025 laws, budget for utilities/reserves, and train on electronic voting. Use tools like reserve studies to integrate costs.
- General Advice: California HOA laws evolve rapidly; monitor leginfo.legislature.ca.gov for updates. For disputes, try internal resolution before small claims (now up to $12,500 via SB 71). Engage an HOA attorney or management firm for compliance audits, as non-compliance risks fines up to $1,000+ and liens.