Introduction
SB 721 is no longer a future concern for San Diego apartment owners. As of January 1, 2026, the law is officially being enforced following a one-year delay, and owners with exterior elevated elements must now comply.
This bill impacts multifamily, mixed-use, and condominium properties throughout San Diego County and has direct implications for financing, sales, and long-term asset planning.
What Is SB 721?
SB 721 is a California Senate Bill requiring periodic inspections of exterior elevated elements (EEEs) on applicable buildings.
Exterior elevated elements include:
- Balconies
- Decks
- Stairways
- Walkways
- Guardrails and railings
- Waterproofed surfaces elevated more than six feet
The intent of SB 721 is to prevent structural failures caused by dry rot, water intrusion, and deferred maintenance.
Which Properties Are Subject to SB 721?
SB 721 generally applies to:
- Multifamily buildings with 3 or more dwelling units
- Buildings with wood or wood-based exterior elevated elements
- Condominium buildings (often the most scrutinized)
Single-family homes and duplexes are typically excluded.
SB 721 Enforcement in San Diego
Enforcement is handled at the local jurisdiction level, meaning timelines and penalties may vary between:
- City of San Diego
- Other incorporated cities
- County jurisdictions
However, the enforcement process generally follows this pattern:
- Owner receives a compliance notice
- A cure period is provided (often 30–90 days)
- Failure to comply results in daily fines
- Continued noncompliance can escalate to liens or enforcement action
Daily fines typically range from $100–$500 per day, depending on jurisdiction.
What Do SB 721 Inspections Cost?
Based on our own inspection and client experience:
- Inspection costs: $1,000–$1,200
- Common repairs: $1,300–$20,000
- Severe deterioration can exceed this range
Once an inspection is completed, required repairs are no longer optional.
SB 721 and Multifamily Lending
Lenders are actively adjusting underwriting standards in response to SB 721.
Most lenders currently:
- Require a signed compliance letter
- Expect inspections to be scheduled or completed
- Review reports on a case-by-case basis
Many lenders are not yet universally requiring repairs prior to closing — but this is evolving rapidly.
Once an inspection identifies defects, the property may be treated as having a known health and safety issue, increasing lender caution.
Selling a San Diego Property With SB 721 Issues
Owners selling without completing inspections typically face:
- Price reductions
- Buyer requests for credits
- Escrow delays
- Lender scrutiny
If transferring responsibility to the buyer, clear contractual language is critical.
Final Takeaway
SB 721 is now a permanent part of owning multifamily property in San Diego. Early compliance is almost always cheaper and cleaner than reacting under pressure during escrow or financing.
The information in this blog is for general informational purposes only and should not be your sole basis for financial or investment decisions. While ACI Apartments uses reliable sources for data and analysis, you should verify all information independently. This blog is not a comprehensive report on all changes to local, state, or federal laws affecting property owners and managers. Laws may have changed or been misinterpreted since publication. Always consult legal counsel or a licensed CPA before making decisions. ACI Apartments is not liable for actions taken based on this content. Information was gathered from CoStar and SDMLS.