Buying a condo in San Mateo County and worried about surprise assessments or construction downtime? You are not alone. California’s SB 326 inspections are surfacing real repair needs in many associations, from balconies to walkways, and that can affect your costs and your day‑to‑day living. In this guide, you will learn how to read the right HOA documents, forecast per‑unit exposure, and spot vacancy risk before you write an offer. Let’s dive in.

SB 326 in a nutshell

SB 326 requires condominium associations to inspect certain “elevated elements” such as balconies, decks, walkways, stairs, and railings. A qualified professional performs the inspection and provides a report to the HOA that identifies defects, urgency, and recommended timelines. The intent is to catch structural deterioration earlier so associations can plan repairs.

For you as a buyer, these reports can signal near‑term projects that may increase reserve needs or trigger special assessments. Lenders and title companies may also ask for documentation that the association is addressing any safety findings. Local building departments control permits and can affect cost and timing, which matters for both owners and investors.

What to pull before you analyze

You will make better decisions when you review a complete set of documents. Ask the listing agent, seller, or HOA manager for a single due‑diligence pack that includes:

1. SB 326 inspection report(s), follow‑up engineering reports, and all exhibits with photos and maps.
2. The most recent reserve study and the prior study for comparison.
3. Current operating budget and year‑to‑date financials, plus the reserve fund balance.
4. Board and finance committee minutes for the last 12 to 24 months.
5. Contractor bids or proposals related to SB 326 or reserve study projects.
6. Owner notices about SB 326 findings, planned repairs, or special assessments.
7. Executed construction contracts and any project timelines.
8. CC&Rs, bylaws, rules, and any amendments that affect assessments, voting, or borrowing.
9. History of prior special assessments in the last 5 to 10 years.
10. HOA master insurance policy declarations, including deductibles and loss‑of‑rents or additional living expense coverage.
11. Pending litigation disclosures and any litigation reserves.
12. Permit history and any pending permit applications for the buildings.
13. Management and HOA counsel contacts for follow‑up.
14. For investors: rent roll, current occupancy, and rental restriction rules.

Include short clarifying questions with your request so you get actionable answers. Ask whether any findings are categorized as immediate, whether the board has approved a special assessment or loan, the projected maximum downtime per unit if displacement is required, and if bids are current and competitively sourced.

Read the inspection report

Verify provenance and scope

Start with the basics. Confirm who prepared the report, their license type and number, the company name, and the date. Check the scope, whether it was visual only or involved invasive testing or lab analysis, and which buildings and elements were inspected. Note limitations, such as seasonal constraints or areas that were not accessible.

Extract key facts

Pull out the defects, their locations, and any photos or plans showing where they exist. Note the severity categories, such as immediate safety hazard, near‑term repairs within 1 to 3 years, midterm items within 3 to 10 years, and routine maintenance. Capture the estimated remaining useful life and the recommended repair or replacement timeline for each element.

If the report includes cost estimates, confirm whether they are conceptual ranges or detailed contractor bids. List any recommendations about repair versus replacement, phasing, required permits, and interim safety measures like shoring or restricted access. Ensure the report is signed and certified by the professional who performed the inspection.

Red flags to note

Be cautious if the report only says “recommend further investigation” without timelines or cost guidance. Immediate hazards without a board plan or funding path raise risk. Vague or conflicting cost ranges with no path to contractor estimates add uncertainty. Missing photos, unclear mapping to units, or lack of clarity on whether an element is the association’s or an owner’s responsibility can create scope conflicts later.

Forecast assessments step by step

1. Map repair scope to the reserve study. Identify which inspection items are already in the reserve schedule and which are new or earlier than planned.
2. Calculate the immediate funding gap. Compare the reserve balance and scheduled contributions to the estimated near‑term project costs.
3. Identify likely funding tools. Consider higher regular dues, a special assessment, HOA loans or lines of credit, or bundling with other planned projects.
4. Model unit share. Use the CC&R allocation method, such as percentage interest, to estimate the per‑unit burden if a special assessment is needed.
5. Consider timing and cash flow. Determine if work can be phased to reduce immediate impact or if full funding is required for safety or permitting.
6. Add contingency and escalation. In a high‑cost market, add 10 to 25 percent contingency and reflect cost escalation risk when projecting totals.

Model your unit share

Use the association’s allocation rules in the CC&Rs to estimate your share. For example, if a project totals 3 million dollars and your ownership share is 0.6 percent, you would estimate an 18,000 dollar special assessment before contingency. Test scenarios for phasing, such as a one‑phase urgent project versus a multi‑phase plan over three years, to understand differing cash flow impacts.

Reserve health signals

Look at the reserve funding ratio, which compares the reserve balance to the fully funded target. A lower ratio usually signals higher assessment risk. Note how much of any shortfall is tied to SB 326 items versus routine replacements.

Check for a history of special assessments and recent increases in regular dues. If the HOA has outstanding debt and ongoing debt service, there may be less room in the budget for new projects without further owner contributions.

Vacancy and habitability risk

SB 326 repairs can affect daily life, sometimes significantly. Balcony replacement or repairs that touch egress routes can require access to units or temporary closures. Larger structural projects can lead to phased evacuations or temporary relocation of occupants. Permit requirements can add delays, and safety measures like blocked balconies can reduce functionality even if you stay in place.

Watch for indicators of elevated vacancy risk. These include immediate safety hazards with restricted access, contractor plans that call for full building closures, and a lack of an association plan for relocation assistance or income loss mitigation. In San Mateo County cities, longer permit review times or coastal approvals can extend schedules, so clarify timelines early.

Ask the HOA if they have a phasing plan that limits displacement and estimates downtime per unit. Request contractor schedules and permit timelines and confirm expected review durations with the local building department. Review the HOA’s master insurance policy for loss‑of‑rents or additional living expenses coverage if displacement is necessary.

San Mateo factors to price in

Coastal exposure in cities like Half Moon Bay and Pacifica can accelerate corrosion of metal components. Expect corrosion mitigation to appear in inspection scopes and factor higher costs into your contingency. While SB 326 focuses on elevated elements, you should also ask about seismic considerations that may arise during structural work.

Permit timelines vary across San Mateo County jurisdictions and can extend when projects involve larger structural work or coastal permits. Local contractor availability and Bay Area construction costs can be higher and more volatile than national averages. Reflect this in your escalation and contingency assumptions.

Communicate risk fast

Create a quick scoring framework to compare properties. Score each area from 1 to 5, where 1 is low risk and 5 is high risk:

• Structural urgency based on engineer severity categories.
• Financial exposure as per‑unit cost compared to the median home price or your annual HOA dues.
• Reserve health based on the funding ratio.
• Likelihood of a special assessment given the funding gap and board minutes.
• Vacancy or displacement risk based on project scope and phasing.

Add these to a composite score and pair it with example dollar outcomes for a typical unit so you can make a confident decision.

What this means for your offer

If the inspection report flags immediate items with no funding plan, you may want a stronger contingency strategy or a price adjustment. If the HOA has clear bids, a defined phasing plan, and healthy reserves, the risk profile improves. Investor buyers should run stress tests with rental downtime scenarios, such as 0, 25, and 50 percent, and see how yield holds up.

Owner‑occupiers should weigh construction timing and potential balcony or walkway closures against their daily routines. In both cases, having the full due‑diligence pack and a clear per‑unit cost model helps you structure a smarter offer and reduces surprises after closing.

Ready to review a specific building and request the complete due‑diligence pack? Reach out for a focused, step‑by‑step review tailored to your goals. We help you translate reports, model scenarios, and prepare a confident offer strategy that fits the San Mateo County market.

If you want a seasoned, boutique team to guide you through this process, connect with [Unknown Company] for a local, high‑touch approach from first walkthrough to final negotiations.

FAQs

What is SB 326 for San Mateo County condo buyers?

• SB 326 requires inspections of elevated elements like balconies and walkways by qualified professionals, and the findings can drive repair plans, reserve needs, and potential assessments that affect buyers.

Which documents should I get before making an offer on a condo?

• Ask for the SB 326 report, reserve studies, current budget and financials, minutes, bids, owner notices, contracts, CC&Rs, insurance declarations, litigation disclosures, and permit history.

How do I estimate my potential special assessment?

• Identify total project cost, confirm the HOA’s allocation method in the CC&Rs, apply your unit’s percentage interest, then add reasonable contingency and cost escalation for local conditions.

How can SB 326 repairs affect my ability to live in the unit?

• Repairs can restrict access to balconies or walkways, require entry into your unit, or in larger projects trigger temporary relocation depending on scope and permit requirements.

What local San Mateo County factors can delay repairs?

• Coastal permitting in certain cities, longer reviews for structural work, and Bay Area contractor availability and pricing can extend timelines and increase costs.