Colorado's New 30-Year Reserve Study Mandate: What HB26-1099 Requires

The core rule: a 30-year reserve study at turnover

Under HB26-1099, the declarant (the developer or builder) must commission and pay for a reserve study before it transfers control of the association to the owners.

The study must:

• Look out 30 years. It projects the cost of maintaining, repairing, and replacing the common elements and any other property the association has to maintain.
• Be independent. The preparer can have no business relationship with, or financial interest in, the declarant beyond being hired to do the study.
• Follow industry standards for reserve studies.

The declarant must then hand the study to the association as part of the turnover package. That deadline is 60 days after owners other than the declarant elect a majority of the board, the same window Colorado law already uses for turning over the association's records and property.

Owners get to see it, too

The bill also adds reserve studies to the association's disclosure duties under C.R.S. § 38-33.3-209.4. According to the Colorado Division of Real Estate's summary, the association must provide owners its most recent reserve study:

• within 90 days after the declarant turns over control, and
• within 90 days after the end of each fiscal year after that.

In practice, that puts the reserve study next to the budget and other annual disclosures owners already receive. Ask counsel how this applies to your community, especially if you were turned over before August 12, 2026 and don't have a recent study.

What the final bill does not require

HB26-1099 started out much stronger. As introduced, it would have required:

• a reserve study before the first unit was sold,
• updated studies after each phase of construction,
• delivery of the study to every prospective buyer before closing, and
• a declarant payment of 1.5% of the amount needed to fully fund reserves.

All of that was amended out before passage. The bill's sponsor, Rep. Brianna Titone, said publicly that she wanted it to do more.

The enacted law also does not:

• require reserves to be funded at any particular level, by the declarant or the association,
• require the association to update the study on a set schedule after turnover, or
• exempt communities by size or type. Small planned communities are covered the same as large condo projects.

So the study is a planning tool, not a funding mandate. What it gives a new owner-controlled board is a baseline it didn't pay for, drafted by someone who doesn't work for the builder.

The other half of the bill: management company turnover

HB26-1099 also tightens what happens when a management company is let go. Under the amended C.R.S. § 38-33.3-401(2)(a), a former manager must deliver all association property within 45 days after the contract ends or isn't renewed. That includes:

- financial records and bank accounts,

- contracts and governing documents,

- passwords and account credentials, and

- keys and other physical property.

A manager that misses the deadline faces real penalties:

• $250 per business day of noncompliance,
• liability for any late fees and interest the association incurs because of the delay, and
• for willful violations, three times actual damages plus attorney fees.

That piece applies to every association, new or old. It's the most immediate change for most existing Colorado communities.

Board checklist:

If your community is still under declarant control:

• Ask the declarant now who is preparing the reserve study and when. Confirm the preparer has no ties to the builder.
• Put the study on the turnover checklist with the other records due within 60 days of the owner-majority board election.
• Compare the study to the current budget as soon as you get it. A big gap between recommended and actual contributions is your first agenda item.
• Plan the 90-day owner disclosure so it goes out on time after turnover.

If your community has already been turned over:

• Check your disclosure calendar. Make sure your most recent reserve study goes out within 90 days after fiscal year-end along with your other annual disclosures.
• Update an old study. The law doesn't require it, but a study that's more than a few years old makes a poor planning document. It's also a poor thing to put in front of owners every year.
• Review your management contract for a turnover clause that matches the new 45-day rule.
• Keep your own copies of passwords, bank signatory lists, and key contracts so a manager change never leaves you locked out.
• Confirm your reserve study policy under C.R.S. § 38-33.3-209.5 still matches what you're actually doing.

FAQ

• When did Colorado's HB26-1099 take effect?

August 12, 2026. The Governor signed it on April 13, 2026. It isn't retroactive.

• Who has to pay for the 30-year reserve study?

The declarant (the developer or builder). It must commission and pay for the study before turning control over to the owners.

• Does HB26-1099 require Colorado HOAs to fully fund reserves?

No. The law requires a study and disclosure of it. It doesn't set a minimum funding level, and the proposed 1.5% declarant contribution was removed before passage.

• Do developers have to give the reserve study to buyers before closing?

Not under the final law. That requirement was in the bill as introduced but was amended out. The study goes to the association at turnover, and the association shares it with owners.

• Does this apply to small HOAs?

Yes. The law has no exemption based on the number of units, the type of community, or the value of common assets.

• What happens if our old management company won't turn over records?

It has 45 days after the contract ends. After that it faces $250 per business day, liability for late fees and interest caused by the delay, and treble damages plus attorney fees for willful violations.

• Keep your reserve study and deadlines in one place

A reserve study only helps if the board can find it, share it on time, and act on it. My Front Yard helps boards keep governing documents and financial records organized and track disclosure dates, so a turnover deadline or a 90-day disclosure window doesn't slip by. [See how it works →]

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*Sources: HB26-1099, Protect Financial Condition of Homeowners Associations (2026); Colorado Division of Real Estate, HB26-1099 Summary; C.R.S. §§ 38-33.3-209.4, 38-33.3-209.5, 38-33.3-303, 38-33.3-401(2)(a); Denver7, "Bill seeks transparency in HOA fees by considering the cost of future upkeep sails through Senate committee" (Mar. 2026); Reserve Advisors, Colorado Reserve Study Requirements.*

*Informational only, not legal advice. Talk to your association's attorney before changing reserve, disclosure, or management practices.*