Did you Know?
The Impact of Exterior Elevated Element Inspections on the Reserve Study
By Sandra L. Gottlieb, Esq. CCAL and Adrian Chiang, Esq.
While many condominium associations may be familiar with the elevated exterior elements (“EEE”) inspections and any repairs that may be required, it is easy to overlook the other obligations of Civil Code Section 5551 regarding the impact of the EEE inspections on the Association’s reserve study.
Civil Code Section 5551 requires that all EEE made of wood, which are six feet or more above the ground among other factors, of buildings (such as balconies, decks, stairs, and walkways) be inspected so they are maintained in a safe and structurally sound condition. If you are unfamiliar with this law and the upcoming January 1, 2025, deadline, please see our prior blog post with a summary and suggestions: https://www.hoalawblog.com/the-balcony-bill-sb-326/.
Per Civil Code Section 5551(g)(1), there is an obligation for the licensed engineer/architect to submit a report to the association and local code enforcement for immediate threats to safety: “If, after inspection of any exterior elevated element, the inspector advises that the exterior elevated element poses an immediate threat to the safety of the occupants, the inspector shall provide a copy of the inspection report to the association immediately upon completion of the report, and to the local code enforcement agency within 15 days of completion of the report. Upon receiving the report, the Association shall immediately take preventive measures, which includes without limitation measures to prevent occupant access to the exterior elevated element until repairs have been inspected and approved by the local enforcement agency.”
Civil Code Section 5551(f) also states that the EEE report must be incorporated into a reserve study but not exactly when. Of course, the sooner the better to inform the board for budgeting purposes because an EEE inspection would provide more detailed information about the remaining life of an EEE component the association is responsible for. But if the association already performed its reserve study or updated the reserve study this year, created/approved a budget based on the reserve study, and then later performed the EEE inspection the same year, we’re not so sure of the value of immediately incorporating the EEE report into another updated reserve study for the same year, at an extra cost if applicable, that was just completed. So, the EEE report findings can be incorporated into the next reserve study.
In future years, with every nine (9) year EEE inspection cycle, an association should ideally perform the EEE inspection first before later updating its reserve study that same year.
If you or your association has additional inquiries about this law, please contact us directly at slg@sghoalaw.com or ac@sghoalaw.com.