Friday October 23, 2026
What is HB26-1099?
HB26-1099 is a Colorado law that updates the Colorado Common Interest Ownership Act with new requirements affecting certain common interest communities. It creates new reserve study requirements for developers of new planned communities and condominiums.It also sets a 45-day deadline for former management companies to transfer association records, funds, and other property after a management change. The law took effect August 12, 2026.
Who does HB26-1099 apply to?
The reserve study portion of HB26-1099 applies to developers (also called declarants) of new planned communities and condominiums before control transfers to the association (C.R.S. § 38-33.3-209.2(1)).The management transition requirements apply when an association terminates or does not renew its agreement with an association management company (C.R.S. § 38-33.3-317(9)(a)(I)).
Reserve studies required by HB26-1099
Before transferring control of a new planned community or condominium to the association, the declarant must commission and pay for a reserve study. The study must look at the common elements and property the association will be responsible for maintaining, repairing, or replacing.Under HB26-1099, the reserve study must project those costs over a 30-year period (C.R.S. § 38-33.3-209.2(1)-(2)).
Who can perform the reserve study
HB26-1099 requires an independent reserve study professional or another qualified professional who understands industry standards. The person or company conducting the study cannot have a business relationship with or financial interest in the declarant (other than being hired to conduct the reserve study) and cannot be an affiliate of the declarant (C.R.S. § 38-33.3-209.2(3)(a)-(c)).Does HB26-1099 require existing HOAs to get a reserve study?
Not broadly. The new reserve study requirement is tied to the transition of control from a declarant to an association in a new planned community or condominium.That means HB26-1099 does not create a blanket requirement for every established Colorado HOA to commission a new 30-year reserve study. Existing communities may still have other reserve planning responsibilities under Colorado HOA laws or their governing documents.
HOA management company transition deadline
HB26-1099 also creates a specific timeline when an association changes management companies.After a management agreement is terminated or not renewed, the former management company generally has 45 days to deliver the association’s property and records to the new management company or directly to the association.
The transfer must be completed at no charge to the association (C.R.S. § 38-33.3-317(9)(a)(I)).
What management companies need to transfer
The law requires the former Colorado management company to turn over all association property, including money, financial accounts, financial records, insurance policies, account passwords, invoices, receipts, and more. The goal is to prevent important association assets or records from becoming stuck during a management transition (C.R.S. § 38-33.3-317(9)(a)(I)).What happens if the 45-day deadline is missed?
Unless the parties agree otherwise in writing, a former management company that misses the deadline may owe the association $250 for each business day that the required property and records remain outstanding.The company may also be responsible for interest, late fees, and other damages the association incurs because of the failure to provide access to its accounts, money, property, or information. Willful violations can carry additional consequences under the law (C.R.S. § 38-33.3-317(9)(b)(I)-(III)).
Tips for boards and developers complying with HB26-1099
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Start transition planning early
A transition works better when the board, developer, and HOA management team know what needs to happen before control changes hands. Build a timeline for the reserve study, document turnover, and other transition responsibilities early. That gives everyone more time to address missing information and helps the homeowner-elected board start with a clearer understanding of the community’s financial needs.
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Review the reserve study carefully
The 30-year reserve study should become a useful planning tool. Once the board receives it, review the projected projects and costs with management and qualified financial or engineering professionals. Understanding what the study says can help the board connect future capital needs with budgeting and reserve planning.
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Choose an independent reserve professional
The reserve study should come from a qualified professional who is independent from the developer. Before moving forward, confirm that the provider meets the requirements in HB26-1099 and does not have a prohibited financial or business relationship with the declarant. That can give the incoming board greater confidence in the study it receives.
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Create a management transition checklist
When changing management companies, boards should know what information needs to move and who is responsible for each step. A written checklist can help track records, funds, accounts, and other association property during the 45-day period. It also gives the incoming management team a clearer picture of what has been received and what may still be outstanding.
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Do not wait until day 45
The 45-day requirement is a hard deadline, not a target. Boards and management teams should begin transferring information as soon as the transition starts. Early coordination gives both sides time to identify missing records or access issues before they affect association operations.
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Work with qualified professionals
Reserve planning and management transitions can raise financial, operational, and legal questions. Your property manager can help organize the process, while association counsel and other qualified professionals can provide guidance where specialized expertise is needed. Bringing the right people in early can help the board understand its responsibilities and avoid preventable problems during the transition.
How FirstService Residential can help
FirstService Residential helps boards stay organized with governance support, recordkeeping systems, financial management, vendor coordination, property management technology, resident communication, and 24/7 customer care. We can help boards understand what HB26-1099 means for their community and build the right processes around it.Our financial and accounting teams can help boards use reserve study findings to plan ahead and make informed budget decisions. During a management transition, we help bring the right records and financial information together so the incoming team can get up to speed quickly and the board does not have to chase down missing details.
Contact a member of our team today to learn more.
This information is provided for general informational purposes only and is not intended to constitute, and should not be relied upon as, legal, regulatory, financial, or operational advice, or as a representation or guarantee of any specific services, capabilities, or outcomes. Property management needs, regulatory requirements, market conditions, and available services vary by jurisdiction, property type, and community. FirstService Residential provides services through locally based affiliates and associates, and services and results may vary by community, region, contractual terms, and applicable law.