Truss Financial Group Steps In as SB326 Disrupts Condo Lending Across California

The first round of these inspections was required to be completed by January 1, 2025.

CA, CA, UNITED STATES, July 7, 2025 /EINPresswire.com/ -- Truss Financial Group Steps In as SB326 Disrupts Condo Lending Across California

More than 53,000 condominium buildings in California were required to comply with Senate Bill 326 (SB326) by January 1, 2025, yet a significant percentage failed to meet the deadline. This non-compliance has triggered growing concern across the real estate sector, with lenders tightening requirements or outright declining loan applications tied to affected buildings.

Amid this disruption, Truss Financial Group is offering a timely response by introducing customized, flexible lending solutions for homeowners, buyers, retirees, and HOAs grappling with the ripple effects of SB326.

Enacted in 2019 in the wake of the tragic 2015 Berkeley balcony collapse, SB326, commonly referred to as the Balcony Bill, was designed to improve safety in multifamily housing. It requires all condominium associations with buildings that include exterior elevated elements (EEEs) such as balconies, decks, and stairways to undergo structural inspections by licensed professionals every nine years. The first round of these inspections was required to be completed by January 1, 2025.

However, many associations are still unprepared. According to industry reports, thousands of buildings remain out of compliance due to a combination of financial strain, limited access to qualified engineers, and lack of awareness. And while the safety intent is clear, the financial consequences have emerged just as sharply.

The law’s intent is to prevent structural failure and improve resident safety, but non-compliance also introduces serious financial consequences.
As lenders begin scrutinizing buildings more closely, many are declining to finance properties tied to HOAs that have not submitted their required inspection reports. Properties that once sailed through pre-approvals are now flagged as risky, even when the borrower has excellent credit and income.
As HOA Law Blog explains, non-compliance may cause buildings to be downgraded by underwriters or deemed unfinanceable altogether, placing massive strain on marketability and property values.

That’s where Truss Financial Group comes in. With more than two decades of experience in non-traditional lending, Truss is equipped to provide practical solutions when others walk away. The company has launched a suite of loan products designed for precisely this type of market uncertainty.

Truss Financial Group’s Response

Truss Financial Group is dedicated to supporting borrowers affected by SB326’s financial fallout. The company specializes in serving clients who fall outside conventional loan requirements, and the current condo climate calls for exactly that kind of flexibility.

Truss offers:
Refinance solutions, including asset-depletion, bank-statement, and no-doc options that can accommodate condos in non-compliant buildings
FHA and jumbo reverse mortgages, with jumbo options offering greater flexibility for non-FHA property requirements
Bridge and hard-money loans for real estate investors or fix-and-flip scenarios for properties needing quick funding or repairs
“Our priority is getting people to the finish line without punishing them for issues beyond their control,” Jason said. “We know how to read between the lines of a complex situation, and we underwrite accordingly.”

A Delayed Market with High Stakes
Recent insights from Ad Magellan emphasize that HOAs falling behind on inspections are already seeing disrupted sales, withdrawn offers, and higher insurance premiums. In some areas, realtors report entire condo buildings sitting idle in the market, with sellers forced to reduce prices or pull listings entirely.

These delays not only cause inconvenience to seniors and fixed-income homeowners but also cause financial damage.

A Partner for Uncertain Times
As California’s real estate market adjusts to the realities of SB326, borrowers need experienced partners who can offer more than standard solutions. Truss Financial Group stands ready to provide creative, compliant financing pathways for those navigating stalled condo transactions and uncertain lending landscapes. For buyers, owners, and HOAs alike, Truss is a strategic ally

About Truss Financial Group
Truss Financial Group is a leading independent mortgage lender specializing in helping real estate investors, self-employed borrowers, and veterans access flexible home financing. With over 20 years of experience and strong relationships with major capital partners, Truss delivers personalized service, competitive rates, and solutions tailored to individual borrower needs.

Jason Nichols
Truss Financial Group
+1 888-878-7715
pr@trussfinancialgroup.com
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