HB26-1099 was signed by Governor Polis this week. The bill, “Concerning Protecting the Financial Condition of Common Interest Communities”, has two primary areas that concern associations – Reserve Studies and Association Records. Here is a quick breakdown of both:
- Declarant Reserve Study.
- The bill adds Section 38-33.3-209.2 to CCIOA, (titled Declarant duties – reserve study) to require a Declarant to commission and pay for a reserve study for the community prior to transferring control over to the association. The reserve study must address the components of and project costs over a thirty-year period for the common elements and property that the association is responsible for maintaining, repairing, or replacing pursuant to its declaration.
- The bill amends C.R.S. 38-33.3-209.4 to add the requirement that an association make available its most recent reserve study (as required by C.R.S. 38-33.3-209.2) as part of the association’s disclosures.
- The bill also amends C.R.S. 38-33.3-303 to include the Declarant-obtained reserve study as an additional document that must be provided by the Declarant to the association during Declarant turnover.
- The bill adds Section 38-33.3-209.2 to CCIOA, (titled Declarant duties – reserve study) to require a Declarant to commission and pay for a reserve study for the community prior to transferring control over to the association. The reserve study must address the components of and project costs over a thirty-year period for the common elements and property that the association is responsible for maintaining, repairing, or replacing pursuant to its declaration.
- Management Company Turnover of Association Records.
- The second major component of HB26-1099 is that it adds Section 38-33.3-317(9) (Association records – rules – timely transfer of association money and records to new management company or the association – penalty-civil action-damages-attorney fees) to CCIOA. Specifically, this additional section (9) specifies that a management company has 45 days to turn over the association’s property following an association’s termination of its management agreement or failure to renew the management agreement. Association property must be delivered within that 45 days to the association’s new management company or to the association, at no charge, and such association property includes: 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.
- Failure of the management company to comply with this section makes that management company liable to the association for all interest and late fees on late payments made by the association due to the management company’s failure to comply with this section, plus $250.00 for each business day that the management company fails to comply with this section, as well as treble damages and the association’s legal fees and costs if the association has to bring an action against the management company to enforce this section.
- The second major component of HB26-1099 is that it adds Section 38-33.3-317(9) (Association records – rules – timely transfer of association money and records to new management company or the association – penalty-civil action-damages-attorney fees) to CCIOA. Specifically, this additional section (9) specifies that a management company has 45 days to turn over the association’s property following an association’s termination of its management agreement or failure to renew the management agreement. Association property must be delivered within that 45 days to the association’s new management company or to the association, at no charge, and such association property includes: 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.
HB26-1099 is set to take effect on August 12, 2026.
If you have any questions about this bill, feel free to contact an Altitude attorney at 303-432-9999 or [email protected].
Who is a Declarant in the “Declarant Reserve Study?” Developer?
The Declarant is the developer or builder who creates the community.