02/27/2026
🚨 Colorado HOAs: Big Changes May Be Coming 🚨
A new bill — HB26-1099 — has passed the House and is now headed to the Senate in Colorado. If enacted, it could significantly reshape how HOAs are funded, disclosed, and managed.
Here’s what you need to know:
🔹 Mandatory Reserve Studies
Developers would be required to fund and complete independent reserve studies before selling the first unit — with 30-year projections provided to buyers.
🔹 Buyer Transparency
Homeowners must receive the reserve study at least 24 hours before closing. No more guessing about long-term financial obligations.
🔹 Developer Contributions at Turnover
At HOA turnover, developers must contribute 1.5% of the amount required to fully fund reserves.
🔹 Management Company Transition Deadlines
If an HOA changes management companies, the outgoing manager must transfer all records, accounts, passwords, and funds within 45 days — or face:
💸 $250 per business day penalties
⚖️ Potential treble damages + attorney fees for willful non-compliance
This bill codifies what many best-practice management companies already do — but now with clear statutory timelines and financial consequences.
If you serve on an HOA board or work in community association management, now is the time to review your:
✔️ Management agreements
✔️ Reserve disclosures
✔️ Transition protocols
Proactive compliance today prevents legal exposure tomorrow.
ReserveStudy PropertyManagement HOALaw
