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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.
-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
+HB 26-1099
+Fiscal Note
+Legislative Council Staff
+Nonpartisan Services for Colorado’s Legislature
+HB 26-1099: PROTECT FINANCIAL CONDITION OF HOAS
+Prime Sponsors:
+Rep. Titone;  Nguyen
+Sen. Kolker; Marchman
+Bill Outcome:  Signed into Law
+Drafting number:  LLS  26- 0288
+Fiscal Analyst:
+Julia Group, 303-866-4720
+julia.group@coleg.gov
+Versi on:  Final Fiscal Note
+Date:  June 3, 2026
+Fiscal note status:   The final fiscal note reflects the enacted bill.
+Summary Information
+Overview.  This  bill sets new financial requirements for common interest  communities by requiring reserve
+studies.
+Types of impacts. The bill is projected to affect the following areas on an ongoing basis:
+•  Minimal State Workload •  State Revenue
+Appropriations.  No  appropriation is  required.
+Table 1
+State Fiscal Impacts
+Type of Impact Budget Year
+FY 2026-27
+Out Year
+FY 2027-28
+State Revenue $0 $0
+State Expenditures $0 $0
+Transferred Funds  $0  $0
+Change in TABOR Refunds $0 $0
+Change  in State  FTE  0.0  FTE  0.0  FTE
+
+Page 2
+June 3, 2026 HB 26-1099
+Summary of Legislation
+This bill requires that the declarant in a common interest community, typically the developer or
+builder, pay for an independent reserve study to estimate the projected costs of maintaining,
+repairing, or replacing the common elements of the common interest community over a 30-year
+period. The study must be completed before the transfer of control from the declarant to the
+home owner’s association.
+When a  unit owner’s  association changes management companies, the former company must
+provide all association property, records, money, accounts, and other specified information to
+the new  company. The former management  company  is  liable for all interest  and  late fees  paid
+by the association as a result of not providing records, as well as a daily penalty  of  $250. A  court
+may  find the company liable in a civil action for  willful violation and award  three times  the
+association’s damages, plus attorney fees and court costs.
+State Revenue
+The bill may increase in civil litigation resulting from violations of its provisions, which would
+increase revenue from filings fees to the Judicial Department. It is assumed most of the
+impacted entities will follow the requirements; therefore, any resulting revenue is assumed to be
+minimal.
+State Expenditures
+Department of Regulatory Agencies
+The HOA Information and Resource Center in the Division of Real Estate in the Department of
+Regulatory Agencies will have a minimal workload increase to respond to questions concerning
+the changes, and to update FAQs and other public information sources. No change in
+appropriations is required.
+Judicial Department
+The bill authorizes civil litigation for violations, which could increase civil cases and associated
+court workload. The increase is absorbable within existing resources and no change in
+appropriations is required.
+
+Page 3
+June 3, 2026 HB 26-1099
+Effective Date
+The bill was signed into law by the Governor on April 13, 2026, and takes effect on
+August 12, 2026, assuming no referendum petition is filed.
+State and Local Government Contacts
+Judicial Regulatory Agencies
+The revenue and expenditure impacts in this fiscal note represent changes from current law under the bill for each
+fiscal year. For additional information about fiscal notes, please visit the General Assembly website.