PASSED – HB26-1099 (What to Expect for Reserve Studies and Record Turn Overs?)

HB26-1099 Concerning Protecting the Financial Condition of Common Interest Communities passed both houses on March 25, 2026 and will be sent to the Governor for signature. Unless the bill is vetoed by the Governor, HB26-1099 is expected to go into effect August 12, 2026.

HB26-1099 adds new sections to the Colorado Common Interest Ownership Act (CCIOA) primarily addressing Declarant obligations for preparing reserve studies and management companies’ obligations for turning over records after termination.

• Reserve Study.
  The Declarant is the named person or entity in the community association’s recorded Declaration (Covenants/CCRs) and has control over the community before a Board is elected by the new owners. Before such control is transferred to the new owners, HB26-1099 will require the Declarant to have a reserve study prepared, at its costs, by an independent qualified professional or reserve specialist, for any planned communities and condominiums. The reserve study is to be provided upon Declarant turnover.

The reserve study must project costs for 30 years and include all common elements/common areas and other property the community association is responsible for maintaining, repairing, or replacing per the Declaration.

This reserve study would become part of required “annual disclosures” that community associations provide to members under Section 209.4 of CCIOA.

• Records.
  If a community association terminates a management company (or does not renew) then a management company must turn over all the association records, property and information at no cost to the association within 45 days of such termination or non-renewal. This includes all money, financial accounts, account books, financial records, insurance policies, contracts, business documents, passwords, keys, etc.

Unless the community association and prior management company agree otherwise, the management company is liable for damages incurred by the community association (including punitive damages for willful misconduct) and may incur a $250 penalty per business day for each day the records are late.