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HB26-1099 • 2026

Protect Financial Condition of Homeowners Associations

The act requires the declarant of a new planned community or condominium, prior to transfer of control from the declarant to the association of a planned community or condominium, to obtain and pay fo

Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Rep. K. Nguyen, Rep. B. Titone, Sen. C. Kolker, Sen. J. Marchman, Rep. J. Bacon, Rep. J. Joseph, Rep. M. Lindsay, Sen. J. Coleman, Sen. T. Exum, Sen. J. Gonzales, Sen. I. Jodeh, Sen. C. Kipp, Sen. T. Sullivan, Sen. M. Weissman
Last action
2026-04-13
Official status
Governor Signed
Effective date
Not listed

Plain English Breakdown

The effective date is conditional on the referendum process; if a petition is filed by August 12, 2026, the law will only take effect after voter approval in November 2026.

HB26-1099: Rules for Homeowners Association Financial Studies and Record Transfers

This law requires developers to pay for a long-term cost study before handing over control of new communities, and it sets rules requiring management companies to return records within 45 days or face financial penalties.

What This Bill Does

  • Requires the developer (declarant) of a new planned community or condominium to hire and pay for an independent reserve study before transferring control to the association.
  • Mandates that the reserve study estimates costs for maintaining, repairing, or replacing common property over a 30-year period.
  • Ensures the professional conducting the study has no financial interest in or business relationship with the developer other than being hired specifically for this task and is not an affiliate of the developer.
  • Requires associations to make the most recent reserve study available to unit owners upon reasonable notice within specific timeframes after taking control from a developer.
  • Orders former management companies, unless otherwise agreed in writing, to deliver all association property, records, money, accounts, and information to a new manager or the association within 45 days of ending their contract at no cost to the association.
  • Imposes financial penalties on management companies that fail to return items on time, including $250 per business day late plus interest, fees, and potential triple damages for willful violations.

Who It Names or Affects

  • Declarants (developers) of new planned communities or condominiums.
  • Homeowners associations in Colorado that are not self-managed.
  • Association management companies managing these communities.
  • Unit owners within the affected communities who have a right to view records.

Terms To Know

Declarant
The developer or entity that creates and initially controls a planned community or condominium before handing it over to the homeowners association.
Reserve Study
A professional report required by this law that estimates future costs for maintaining, repairing, or replacing common elements like roofs, roads, or pools over 30 years.
Common Elements
Shared property within a community that the association is responsible for maintaining, as described in the declaration of the planned community or condominium.

Limits and Unknowns

  • The law does not require management companies to provide their proprietary software or computer programs, only the data contained within them.
  • Penalties and delivery requirements apply unless the association and former management company agree in writing to different terms regarding record transfers.
  • The effective date of this act depends on whether a referendum petition is filed by voters before August 12, 2026.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

L.002

HOU Transportation, Housing & Local Government

Passed [*]

Plain English: This amendment changes the bill to require developers of new communities to pay for a reserve study before handing over control to the homeowners association, rather than just studying it or doing so at the time of sale.

  • Removes language requiring payment toward reserves and keeps only the requirement to conduct a study.
  • Changes the timing rule so actions must happen before the developer transfers control to the association instead of before selling the first unit.
  • Updates legal numbering formats throughout the text from letters like (a) or (I) to numbers like (1) or (2).
  • Clarifies that developers can keep money for reserve studies but removes other specific financial requirements listed in the original bill.
  • The amendment deletes several lines of text without showing exactly what those deleted rules were, so some removed details cannot be explained.
  • The official title provided is cut off and does not fully describe all parts of the law being changed.
L.003

Second Reading

Passed [**]

Plain English: This amendment requires the developer of a new community to pay for one year of required insurance plus an extra ten percent before handing over control to the homeowners association.

  • The declarant must now pay the total cost of all required insurance premiums for the twelve months right before they transfer control.
  • The amendment text only shows changes to specific lines and does not include the full context of what 'required under the terms of the declaration' means in every situation.
  • It is unclear from this short excerpt if there are any exceptions or alternative ways for a declarant to meet this requirement.

Bill History

  1. 2026-04-13 Governor

    Governor Signed

  2. 2026-04-02 Governor

    Sent to the Governor

  3. 2026-04-01 Senate

    Signed by the President of the Senate

  4. 2026-04-01 House

    Signed by the Speaker of the House

  5. 2026-03-25 Senate

    Senate Third Reading Passed - No Amendments

  6. 2026-03-24 Senate

    Senate Second Reading Passed - No Amendments

  7. 2026-03-19 Senate

    Senate Committee on Local Government & Housing Refer Unamended to Senate Committee of the Whole

  8. 2026-03-03 Senate

    Introduced In Senate - Assigned to Local Government & Housing

  9. 2026-02-26 House

    House Third Reading Passed - No Amendments

  10. 2026-02-25 House

    House Third Reading Laid Over Daily - No Amendments

  11. 2026-02-24 House

    House Second Reading Special Order - Passed with Amendments - Committee

  12. 2026-02-24 House

    House Committee of the Whole Amendment - Change from Passed to Lost

  13. 2026-02-23 House

    House Second Reading Laid Over Daily - No Amendments

  14. 2026-02-18 House

    House Committee on Transportation, Housing & Local Government Refer Amended to House Committee of the Whole

  15. 2026-02-03 House

    Introduced In House - Assigned to Transportation, Housing & Local Government

Official Summary Text

The act requires the declarant of a new planned community or condominium, prior to transfer of control from the declarant to the association of a planned community or condominium, to obtain and pay for a reserve study for the planned community or condominium. The study must estimate the projected costs of maintaining, repairing, or replacing the common elements or property of the planned community or condominium over a 30-year period. The reserve study must be conducted by an independent reserve study professional or other qualified professional with knowledge of industry standards and that has no business relationship with or financial interest in the declarant and is not a affiliate of the declarant.
When an association, other than a self-managed association, changes association management companies, the former association management company shall, within 45 days, deliver to the new association management company or the association, at no charge to the association, all association property, records, money, accounts, information, and other items or information specified in the act (property and records).
Unless otherwise agreed in writing, the former association management company shall pay the association $250 for each business day that it fails to timely return the association's property and records and is liable for all interest and late fees on late payments made by the association due to the former association management company's failure to turn over the property and records, as well as any other damages incurred by the association. In a civil action to recover the property and records or the payments owed to the association for the former association management company's failure to turn over the property and records, if the court finds that the former association management company's violation was willful, the former association management company shall be liable for treble the association's actual damages, plus reasonable attorney fees and court costs.
(Note: This summary applies to this bill as enacted.)

Current Bill Text

Read the full stored bill text
HOUSE BILL 26-1099
BY REPRESENTATIVE(S) Titone and Nguyen, Bacon, Joseph, Lindsay;
also SENATOR(S) Kolker and Marchman, Exum, Gonzales J ., J odeh, Kipp,
Sullivan, Weissman, Coleman.
CONCERNING PROTECTING THE FINANCIAL CONDITION OF COMMON INTEREST
COMMUNITIES.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. In Colorado Revised Statutes, add 38-33.3-209.2 as
follows:
38-33.3-209.2. Declarant duties -reserve study.
( 1) PRIOR TO TRANSFER OF CONTROL FROM THE DECLARANT TO THE
ASSOCIATION OF A PLANNED COMMUNITY OR CONDOMINIUM, THE
DECLARANT SHALL COMMISSION AND PAY FOR A RESERVE STUDY FOR THE
PLANNED COMMUNITY OR CONDOMINIUM, WHICH STUDY ADDRESSES THE
COMPONENTS OF THE COMMON ELEMENTS AND PROPERTY THAT THE
ASSOCIATION IS RESPONSIBLE FOR MAINTAINING, REPAIRING, OR REPLACING,
AS DESCRIBED IN THE DECLARATION. THE RESERVE STUDY MUST PROJECT
COSTS OVER A THIRTY-YEAR PERIOD.
Capital letters or bold & italic numbers indicate new material added to existing law; dashes
through words or numbers indicate deletions from existing law and such material is not part of
the act.
(2) THE RESERVE STUDY DESCRIBED IN SUBSECTION (1) OF THIS
SECTION MUST INCLUDE AN ESTIMATE OF THE PROJECTED COST OF
MAINTAINING, REPAIRING, OR REPLACING THE COMMON ELEMENTS OR
PROPERTY OF THE PLANNED COMMUNITY OR CONDOMINIUM.
(3) A RESERVE STUDY REQUIRED PURSUANT TO THIS SECTION MUST
BE CONDUCTED BY AN INDEPENDENT RESERVE STUDY PROFESSIONAL OR
OTHER QUALIFIED PROFESSIONAL THAT:
(a) HAS KNOWLEDGE OF INDUSTRY STANDARDS FOR RESERVE
STUDIES;
(b) HAS NO BUSINESS RELATIONSHIP WITH OR FINANCIAL INTEREST
IN THE DECLARANT, OTHER THAN BEING RETAINED BY THE DECLARANT TO
CONDUCT RESERVE STUDIES; AND
(c) Is NOT AN AFFILIATE OF THE DECLARANT.
SECTION 2. In Colorado Revised Statutes, 38-33.3-209.4, amend
(2)(h) and (2)(i); and add (2)U) as follows:
38-33.3-209.4. Public disclosures required - identity of
association -agent -manager -contact information.
(2) Within ninety days after assuming control from the declarant
pursuant to section 38-33.3-303 (5), and within ninety days after the end of
each fiscal year thereafter, the association shall make the following
information available to unit owners upon reasonable notice in accordance
with subsection (3) of this section:
(h) The minutes of the executive board and member meetings for the
fiscal year immediately preceding the current annual disclosure; and
(i) The association's responsible governance policies adopted under
section 38-33.3-209.5; AND
U) THE MOST RECENT RESERVE STUDY REQUIRED PURSUANT TO
SECTION 38-33.3-209.2.
PAGE 2-HOUSE BILL 26-1099
SECTION 3. In Colorado Revised Statutes, 38-33.3-303, amend
(9)(1) and (9)(m); and add (9)(n) as follows:
38-33.3-303. Executive board members and officers - powers
and duties -reserve funds -audit.
(9) Within sixty days after the unit owners other than the declarant
elect a majority of the members of the executive board, the declarant shall
deliver to the association all property of the unit owners and of the
association held by or controlled by the declarant, including without
limitation the following items:
(I) Any service contract in which the association is a contracting
party or in which the association or the unit owners have any obligation to
pay a fee to the persons performing the services; and
(m) For large planned communities, copies of all recorded deeds and
all recorded and unrecorded leases evidencing ownership or leasehold rights
of the large planned community unit owners' association in all common
elements within the large planned community; AND
(n) FOR PLANNED COMMUNITIES AND CONDOMINIUMS, THE RESERVE
STUDY COMMISSIONED BY THE DECLARANT PURSUANT TO SECTION
38-33.3-209.2.
SECTION 4. In Colorado Revised Statutes, 38-33.3-317, add (9)
as follows:
38-33.3-317. Association records - rules - timely transfer of
association money and records to new management company or the
association -penalty -civil action -damages -attorney fees.
(9) (a) (I) WHEN AN ASSOCIATION, OTHER THAN A SELF-MANAGED
ASSOCIATION THAT HAS NOT RETAINED AN ASSOCIATION MANAGEMENT
COMPANY, TERMINATES OR FAILS TO RENEW AN AGREEMENT WITH ITS
ASSOCIATION MANAGEMENT COMPANY, WITHIN FORTY-FIVE DAYS AFTER THE
TERMINATION OR FAILURE TO RENEW THE AGREEMENT, THE FORMER
ASSOCIATION MANAGEMENT COMPANY SHALL DELIVER TO THE NEW
ASSOCIATION MANAGEMENT COMPANY OR TO THE ASSOCIATION, AT NO
CHARGE TO THE ASSOCIATION, ALL ASSOCIATION PROPERTY, INCLUDING
PAGE 3-HOUSE BILL 26-1099
MONEY, FINANCIAL ACCOUNTS, ACCOUNT BOOKS, FINANCIAL RECORDS,
INSURANCE POLICIES, CONTRACTS, BUSINESS DOCUMENTS, INVOICES,
RECEIPTS, SUBSCRIPTIONS, ACCOUNT INFORMATION, ACCOUNT PASSWORDS,
KEYS, AND ANY OTHER PROPERTY OR RECORDS OF THE ASSOCIATION, OR
INFORMATION CONCERNING THE ASSOCIATION.
(II) SUBSECTION (9)(a)(I) OF THIS SECTION DOES NOT REQUIRE A
FORMER ASSOCIATION MANAGEMENT COMPANY TO SUBMIT ANY
PROPRIETARY SOFTWARE OR COMPUTER PROGRAMS TO THE ASSOCIATION, SO
LONG AS THE ASSOCIATION'S DATA OR RECORDS WITHIN THE PROPRIETARY
SOFTWARE OR COMPUTER PROGRAM IS SUBMITTED TO THE ASSOCIATION.
(b) UNLESS OTHER WISE AGREED IN WRITING BETWEEN THE
ASSOCIATION AND THE FORMER ASSOCIATION MANAGEMENT COMPANY, THE
FORMER ASSOCIATION MANAGEMENT COMPANY THAT FAILS TO COMPLY
WITH THE REQUIREMENT SET FORTH IN SUBSECTION (9)(a)(I) OF THIS
SECTION:
(I) IS LIABLE TO THE ASSOCIATION FOR ALL INTEREST AND LA TE FEES
ON LATE PAYMENTS MADE BY THE ASSOCIATION DUE TO THE FORMER
ASSOCIATION MANAGEMENT COMPANY'S FAILURE TO COMPLY WITH THE
REQUIREMENTSETFORTHINSUBSECTION (9)(a)(I) OF THIS SECTION AND ANY
OTHER DAMAGES INCURRED BY THE ASSOCIATION DUE TO THE INABILITY OF
THE ASSOCIATION TO ACCESS THE ASSOCIATION'S ACCOUNTS, MONEY,
PROPERTY, OR INFORMATION SPECIFIED IN SUBSECTION (9)(a)(I) OF THIS
SECTION;
(II) SHALL PAY TO THE ASSOCIATION TWO HUNDRED FIFTY DOLLARS
FOR EACH BUSINESS DAY THAT THE FORMER ASSOCIATION MANAGEMENT
COMPANY FAILS TO COMPLY WITH THE REQUIREMENT SET FORTH IN
SUBSECTION (9)(a)(I) OF THIS SECTION; AND
(III) IN ANY CIVIL ACTION TO ENFORCE THIS SUBSECTION (9), IF THE
FORMERASSOCIATIONMANAGEMENTCOMPANY'SVIOLATIONISFOUNDTOBE
WILLFUL, SHALL BE LIABLE TO THE ASSOCIATION FOR TREBLE THE
ASSOCIATION'S ACTUAL DAMAGES PLUS THE ASSOCIATION'S REASONABLE
ATTORNEY FEES AND COURT COSTS.
SECTION 5. Act subject to petition - effective date. This act
takes effect at 12:0 I a.m. on the day following the expiration of the
PAGE 4-HOUSE BILL 26-1099
ninety-day period after final adjournment of the general assembly (August
12, 2026, if adjournment sine die is on May 13, 2026); except that, if a
referendum petition is filed pursuant to section 1 (3) of article V of the state
constitution against this act or an item, section, or part of this act within
such period, then the act, item, section, or part will not take effect unless
approved by the people at the general election to be held in November 2026
and, in such case, will take effect on the date of the official declaration of
the vote thereon by the governor.
Ju'fiiiiil2'C
SPEAKER OF THE HOUSE
OF REPRESENTATIVES
Vanessa Reilly
CHIEF CLERK OF THE HOUSE
OF REPRESENTATIVES
James Rashad Coleman, Sr.
PRESIDENT OF
THE SENATE
Esther van Mourik
SECRETARY OF
THE SENATE
APPROVED Oh \'Y\cr\'\ct"-'1 Arri'! \1-t"" 2.IJ¼ O'l.-t I lOIYh
(Date and Time)
PAGE 5-HOUSE BILL 26-1099