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HB26-1316 • 2026

Private Membership Club Covenants

On and after January 1, 2027, the bill prohibits the recording of a new covenant or declaration that purports to encumber residential property by requiring the owner to acquire and pay for membership

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Rep. E. Hamrick
Last action
2026-03-24
Official status
House Committee on Transportation, Housing & Local Government Postpone Indefinitely
Effective date
Not listed

Plain English Breakdown

The bill summary provided does not include details about the penalties for non-compliance by private membership clubs beyond making covenants unenforceable.

Private Membership Club Covenants

This bill bans new covenants or declarations after January 1, 2027, that require residential property owners to join and pay for membership in private clubs.

What This Bill Does

  • Prohibits recording new covenants or declarations after January 1, 2027, that require residential property owners to acquire and pay for membership in a private club.

Who It Names or Affects

  • Residential property owners
  • Private membership clubs

Terms To Know

Covenant
A recorded agreement between property owners that imposes mutual restrictions or requirements for the benefit of all within a community.
Declaration
An official statement setting out the rules and regulations governing a residential development.

Limits and Unknowns

  • The bill does not apply to existing covenants or declarations before January 1, 2027.
  • Private clubs must comply with disclosure requirements within ninety days after their fiscal year ends.

Amendments

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

L.006

HOU Transportation, Housing & Local Government

Passed [*]

Plain English: The amendment removes language that would prohibit private membership clubs from requiring property owners to pay dues or fees through a covenant on their residential property.

  • Removes the part of the bill that would ban new covenants or declarations forcing homeowners to join and pay for club memberships.
  • The amendment text is incomplete, so it's unclear how this change will affect existing rules about private membership clubs.
  • It's not clear what other parts of the bill might still be in effect after this change.
L.007

HOU Transportation, Housing & Local Government

Passed [*]

Plain English: The amendment requires private membership clubs that collect dues or fees from residential property owners to provide detailed financial information about their operations.

  • Private membership clubs must now disclose the total amount of dues or fees they expect to collect in the current fiscal year, monthly dues or fee amounts including any changes from the previous year, actual collections and expenses from the last fiscal year, projected revenues and expenses for the current year, a description if there are plans to raise dues or fees, the start date of their fiscal year, and minutes from executive board and member meetings.
  • The amendment removes certain sections that were previously part of the bill.
  • Some technical details about how this information must be made available are not specified in the provided text.
L.008

HOU Transportation, Housing & Local Government

Passed [*]

Plain English: The amendment changes how private membership clubs must notify property owners about club requirements and adds a requirement for clubs to file a certificate of compliance with the county clerk.

  • Adds that private membership clubs must post information on a website or web page accessible to dues-paying members and send instructions on how to access it.
  • Changes the notice period from ninety days to sixty days.
  • Requires private membership clubs to file a certificate of compliance with the county clerk within sixty days after their fiscal year end, indexed against all affected properties.
  • The amendment text does not specify what happens if a club fails to comply with these new requirements.
L.009

HOU Transportation, Housing & Local Government

Passed [*]

Plain English: The amendment requires private membership clubs to notify property owners by email and mail before increasing dues or fees, hold a meeting for property owners to discuss the changes, and conduct surveys twice yearly to gather feedback from property owners.

  • Private membership clubs must send notice via email and first-class mail to all property owners when dues or fees are increased.
  • A meeting must be held at least thirty days before the increase takes effect for property owners to discuss the changes.
  • The club must provide specific information in the notice, including details about the increase and how property owners can submit comments.
  • Private membership clubs must conduct surveys twice a year to gather feedback from property owners on amenities and facilities.
  • The amendment does not specify what happens if a club fails to comply with these requirements.
L.010

HOU Transportation, Housing & Local Government

Lost

Plain English: The amendment adds new rules for private membership clubs regarding dues and fees collection during periods of non-compliance with the law, and clarifies lien status on properties.

  • Private membership clubs cannot collect unpaid dues or fees from property owners if the club is not following the law.
  • If a property owner sells their home while owing dues to a private membership club that was not in compliance with the law, the new buyer does not have to pay those dues.
  • A lien placed by a private membership club for non-payment of dues cannot be given super-priority status over other liens.
  • The amendment text is complex and may require further clarification on how it interacts with existing laws.
L.012

HOU Transportation, Housing & Local Government

Passed [*]

Plain English: The amendment to HB26-1316 removes specific lines from the bill text and adjusts numbering throughout.

  • Removes lines 8 through 11 on page 3 of the printed bill.
  • Changes all instances of '(4)' to '(3)', and all instances of '(3)' to '(2)' in several sections.
  • The exact content removed by striking lines is not provided, making it unclear what specific text has been deleted.

Bill History

  1. 2026-03-24 House

    House Committee on Transportation, Housing & Local Government Postpone Indefinitely

  2. 2026-03-17 House

    House Committee on Transportation, Housing & Local Government Lay Over Unamended - Amendment(s) Failed

  3. 2026-03-02 House

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

Official Summary Text

On and after January 1, 2027, the bill prohibits the recording of a new covenant or declaration that purports to encumber residential property by requiring the owner to acquire and pay for membership in a private membership club.
The bill requires a private membership club to provide a property owner with certain information related to the budget and operations of the private membership club by mailing information to property owners and posting the information on the private membership club's public website.
(Note: This summary applies to this bill as introduced.)

Current Bill Text

Read the full stored bill text
Second Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
INTRODUCED

LLS NO. 26-0413.02 Christopher McMichael x4775 HOUSE BILL 26-1316
House Committees Senate Committees
Transportation, Housing & Local Government
A BILL FOR AN ACT
CONCERNING PRIVATE MEMBERSHIP CLUB COVENANTS.101
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov.)
On and after January 1, 2027, the bill prohibits the recording of a
new covenant or declaration that purports to encumber residential
property by requiring the owner to acquire and pay for membership in a
private membership club.
The bill requires a private membership club to provide a property
owner with certain information related to the budget and operations of the
private membership club by mailing information to property owners and
posting the information on the private membership club's public website.
HOUSE SPONSORSHIP
Hamrick,
SENATE SPONSORSHIP
(None),
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, add 38-30-170.5 as2
follows:3
38-30-170.5. Private club membership covenants void and4
unenforceable - disclosure related to private club budget and5
operations required - compliance - definitions.6
(1) AS USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE7
REQUIRES:8
(a) "C OVENANT" MEANS A RECORDED INSTRUMENT BETWEEN9
OWNERS OF REAL PROPERTY THAT IMPOSES MUTUAL RESTRICTIONS OR10
REQUIREMENTS ON THE OWNERS OF REAL PROPERTY FOR THE BENEFIT OF11
ALL OWNERS AND RESIDENTS WITHIN A COMMUNITY.12
(b) "D ECLARATION" HAS THE MEANING SET FORTH IN SECTION13
38-33.3-103 (13).14
(c) (I) "P RIVATE MEMBERSHIP CLUB " OR "CLUB" MEANS AN15
ORGANIZATION, A BUSINESS ENTITY , A CORPORATION , A NONPROFIT16
ASSOCIATION, OR ANOTHER ENTITY THAT:17
(A) A DMITS MEMBERS AND REQUIRES MEMBERS TO PAY18
MONETARY DUES, ASSESSMENTS, OR FEES IN EXCHANGE FOR ACCESS TO19
CLUB FACILITIES, PROGRAMS, OR SERVICES; AND20
(B) IS PRIVATELY OWNED OR OPERATED.21
(II) "PRIVATE MEMBERSHIP CLUB" INCLUDES A COUNTRY CLUB, A22
SPORTS AND RECREATION CLUB , A GOLF CLUB , A TENNIS CLUB , AND AN23
EQUESTRIAN CLUB.24
(III) "PRIVATE MEMBERSHIP CLUB" DOES NOT INCLUDE:25
(A) A UNIT OWNERS ' ASSOCIATION ORGANIZED PURSUANT TO26
HB26-1316-2-
SECTION 38-33.3-301;1
(B) A METROPOLITAN DISTRICT, AS DEFINED BY SECTION 32-1-1032
(10); OR3
(C) A RECREATIONAL CLUB , AMENITY , OR FACILITY THAT IS4
OWNED OR OPERATED BY A METROPOLITAN DISTRICT , A UNIT OWNERS '5
ASSOCIATION, OR OTHER COMMON INTEREST COMMUNITY, AS DEFINED BY6
SECTION 38-33.3-103 (8).7
(2) A COVENANT OR DECLARATION FOR A RESIDENTIAL PROPERTY8
THAT IS RECORDED ON OR AFTER JANUARY 1, 2027, AND THAT REQUIRES9
THE OWNER OF THE RESIDENTIAL PROPERTY TO JOIN A PRIVATE10
MEMBERSHIP CLUB IS VOID AND UNENFORCEABLE.11
(3) A PRIVATE MEMBERSHIP CLUB THAT COLLECTS DUES OR FEES12
FROM AN OWNER OF A RESIDENTIAL PROPERTY , WHICH RESIDENTIAL13
PROPERTY IS SUBJECT TO A COVENANT OR DECLARATION THAT REQUIRES14
THE PROPERTY OWNER TO PAY DUES OR FEES TO THE CLUB , SHALL MAKE15
THE FOLLOWING INFORMATION AVAILABLE IN ACCORDANCE WITH16
SUBSECTION (4) OF THIS SECTION:17
(a) THE AMOUNT OF DUES OR FEES THAT THE PRIVATE MEMBERSHIP18
CLUB ANTICIPATES COLLECTING FROM PROPERTY OWNERS IN THE CLUB'S19
CURRENT FISCAL YEAR , INCLUDING A TOTAL AMOUNT OF FEES AND A20
CALCULATION OF THE AMOUNT OF FEES COLLECTED PER PROPERTY OWNER;21
(b) THE ACTUAL AMOUNT OF DUES OR FEES COLLECTED BY THE22
PRIVATE MEMBERSHIP CLUB FROM PROPERTY OWNERS IN THE CLUB'S PRIOR23
FISCAL YEAR;24
(c) THE DATE ON WHICH THE CLUB'S FISCAL YEAR COMMENCES;25
(d) T HE CLUB 'S OPERATING BUDGET FOR THE CURRENT FISCAL26
YEAR;27
HB26-1316-3-
(e) A LIST , BY TYPE , OF THE CLUB 'S CURRENT ASSESSMENTS ,1
INCLUDING BOTH REGULAR AND SPECIAL ASSESSMENTS;2
(f) THE CLUB'S ANNUAL FINANCIAL STATEMENTS, INCLUDING ANY3
AMOUNTS HELD IN RESERVE FROM THE PRIOR FISCAL YEAR;4
(g) A LIST OF ALL CLUB INSURANCE POLICIES, INCLUDING, BUT NOT5
LIMITED TO, PROPERTY INSURANCE , GENERAL LIABILITY, PROFESSIONAL6
LIABILITY, AND FIDELITY POLICIES . THE LIST SHALL INCLUDE THE7
COMPANY NAMES , POLICY LIMITS , POLICY DEDUCTIBLES , ADDITIONAL8
NAMED INSUREDS, AND EXPIRATION DATES OF THE POLICIES LISTED.9
(h) ANY RELEVANT BYLAWS, ARTICLES, AND RULES OF THE CLUB;10
AND11
(i) T HE MINUTES OF THE EXECUTIVE BOARD AND MEMBER12
MEETINGS FROM THE PRIOR FISCAL YEAR.13
(4) (a) A PRIVATE MEMBERSHIP CLUB SHALL MAKE THE14
INFORMATION DESCRIBED IN SUBSECTION (3) OF THIS SECTION AVAILABLE15
BY:16
(I) POSTING THE INFORMATION IN A CONSPICUOUS MANNER ON THE17
PRIVATE MEMBERSHIP CLUB 'S PUBLIC WEBSITE AND SENDING AN18
ACCOMPANYING NOTICE OF THAT WEBSITE ADDRESS TO EACH PROPERTY19
OWNER THAT PAYS DUES OR FEES TO THE PRIVATE MEMBERSHIP CLUB VIA20
FIRST CLASS MAIL OR EMAIL; AND21
(II) MAILING OR PERSONALLY DELIVERING THE INFORMATION TO22
EACH PROPERTY OWNER THAT PAYS DUES OR FEES TO THE PRIVATE23
MEMBERSHIP CLUB.24
(b) A PRIVATE MEMBERSHIP CLUB SHALL MAKE THE INFORMATION25
DESCRIBED IN SUBSECTION (3) OF THIS SECTION AVAILABLE AT NO COST TO26
THE PROPERTY OWNERS.27
HB26-1316-4-
(c) A PRIVATE MEMBERSHIP CLUB SHALL MAKE THE INFORMATION1
DESCRIBED IN SUBSECTION (3) OF THIS SECTION AVAILABLE TO PROPERTY2
OWNERS WITHIN NINETY DAYS AFTER THE END OF THE PRIVATE3
MEMBERSHIP CLUB'S FISCAL YEAR AND PROVIDE UPDATED INFORMATION4
EACH FISCAL YEAR THEREAFTER.5
(5) (a) I F A PRIVATE MEMBERSHIP CLUB DOES NOT MAKE THE6
INFORMATION DESCRIBED IN SUBSECTION (3) OF THIS SECTION AVAILABLE7
OR OTHERWISE VIOLATES THIS SECTION, ANY COVENANT THAT REQUIRES8
A PROPERTY OWNER TO PAY DUES OR FEES TO THE PRIVATE MEMBERSHIP9
CLUB IS VOID AND UNENFORCEABLE UNTIL THE PRIVATE MEMBERSHIP10
CLUB MAKES THE INFORMATION DESCRIBED IN SUBSECTION (3) AVAILABLE11
IN ACCORDANCE WITH SUBSECTION (4) OF THIS SECTION.12
(b) (I) I F A PRIVATE MEMBERSHIP CLUB IS NOT IN COMPLIANCE13
WITH THIS SECTION , A PROPERTY OWNER IS NOT REQUIRED TO PAY ANY14
DUES OR FEES TO THE PRIVATE MEMBERSHIP CLUB AND MAY BRING A CIVIL15
CLAIM FOR RELIEF AGAINST THE PRIVATE MEMBERSHIP CLUB.16
(II) A PROPERTY OWNER THAT PREVAILS IN A CIVIL CLAIM AGAINST17
A PRIVATE MEMBERSHIP CLUB PURSUANT TO THIS SECTION MAY BE18
AWARDED ACTUAL DAMAGES, PUNITIVE DAMAGES, AND ATTORNEY FEES.19
SECTION 2. Act subject to petition - effective date. This act20
takes effect at 12:01 a.m. on the day following the expiration of the21
ninety-day period after final adjournment of the general assembly (August22
12, 2026, if adjour nment sine die is on May 13, 2026); except that, if a23
referendum petition is filed pursuant to section 1 (3) of article V of the24
state constitution against this act or an item, section, or part of this act25
within such period, then the act, item, section, or part will not take effect26
unless approved by the people at the general election to be held in27
HB26-1316-5-
November 2026 and, in such case, will take effect on the date of the1
official declaration of the vote thereon by the governor.2
HB26-1316-6-