To: California Legislative Action Committee (CLAC) , The Honorable Jacqui Irwin, CA Assembly Member,

SB 326, aka the condo balcony bill, when it was passed left a large loophole in that it does not prevent balcony inspectors to bid on and provide repair services to the Exterior Elevated Elements (EEE's) that the inspector has determined is in need of repairs. 

As concerned balcony inspectors, HOA managers and homeowners within condo developments, we have seen unethical firms take advantage of this loophole, writing reports that favor their financial interests, placing pressure on HOA's that repairs need to be done "immediately", of which these said repairs are often not defined as "emergency repairs" under SB 326. Non emergency repairs can be made at the Board of Directors discretion and leisure. Emergency repairs as defined by SB 326 are repairs to structural framing that has life safety issues as determined by the licensed structural engineer or architect.   

SB 721, the apartment balcony bill, prevents inspectors from bidding on repairs. Home inspectors cannot provide repair services on homes they inspect that are for sale under the California Business & Professions Act section 7195 et seq.

The California Real Estate Inspection Association (CREIA) and the International Association of Certified Home Inspectors (InterNACHI) under their ethics guidelines ban inspectors from offering to make repairs, and under California Business & Professions laws, are banned from offering to make repairs for a period of 12 months after performing a home inspection. 

Ethical balcony inspection companies, HOA managers and HOA residents all agree that a balcony inspector who offers repair services has inherent conflicts of interest. 

We believe that it is an unfair business practice for a Balcony Inspector, a company that employs the inspector or a company that is controlled by a company that also has a financial interesting a company employing the balcony inspector to do any of the following:

1.) To perform, or offer to perform, for an additional fee, any repairs to a structure on which the inspector, or the inspectors company, has prepared a balcony inspection report in the past 24 months. 

Adding this language will protect HOA's from unethical inspection companies and allow Associations to seek three or more bids to make needed repairs at a competitive cost. 

Therefore we the undersigned petitioners, hereby request that AB 2114 which would allow civil engineers to inspect EEE's under SB 326, be modified to include the above language AND add the requirement that a Balcony Inspector must disclose in writing any potential conflicts if interest such as ownership of, employment by or any financial interest in a company licensed by the Contractors State License Board (CSLB). 

AB 2114 is in consideration and by including language that bans inspectors from bidding on repairs will protect HOA's finances from unethical firms. There is no better time than now to rewrite AB 2114 to protect HOA's.