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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.
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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
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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
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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)
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