HB 1099: Protect Financial Condition of Homeowners Associations - Colorado

Final Act → Signed Act · 5 edits · Apr 13, 2026

MODERATE

This bill strengthens financial protections for homeowners associations (HOAs) and condominiums by mandating that developers commission independent reserve studies before transferring control to the association. It requires these studies to project costs over a thirty-year period and ensures they are conducted by professionals with no conflict of interest. Additionally, the bill updates public disclosure requirements to include these reserve studies and imposes stricter penalties on management companies that fail to transfer association records and funds promptly upon termination.

Scope change

The bill applies specifically to planned communities and condominiums, requiring new reserve studies prior to the transfer of control from the developer (declarant) to the homeowners association.

REQUIREMENT

Requires developers to commission and pay for an independent reserve study before transferring control to the association, projecting costs over thirty years.

Mandates that reserve studies be conducted by independent professionals who have no business relationship or financial interest in the developer.

Updates public disclosure rules to require associations to provide the most recent reserve study to unit owners within ninety days of assuming control or ending each fiscal year.

ENFORCEMENT

Increases penalties for management companies that fail to transfer association property and records, adding a $250 per day fine and treble damages for willful violations.

TECHNICAL

Corrects a typo in the effective date section, changing '12:01 a.m.' to '12:01 a.m.' (note: the diff shows a change from '12:01 a.m.' to '12:0 I a.m.' which appears to be a formatting correction or typo fix in the source text provided).

Rerevised → Final Act · 5 edits · Mar 30, 2026

MODERATE

This bill strengthens protections for homeowners in planned communities and condominiums by mandating that developers commission independent reserve studies before transferring control to the homeowners' association. It also establishes stricter penalties for property management companies that fail to turn over association records and funds when contracts end. These changes aim to ensure homeowners have accurate financial data and full access to community assets, reducing the risk of unexpected special assessments or financial mismanagement.

Scope change

The bill applies to all planned communities and condominiums in Colorado, specifically targeting the transition period when developers hand over control to homeowners' associations and the subsequent management of association records.

REQUIREMENT

Requires developers to commission and pay for an independent reserve study projecting costs over 30 years before transferring control to the homeowners' association.

Mandates that the homeowners' association make the most recent reserve study available to unit owners within 90 days of assuming control or at the end of each fiscal year.

Expands the list of items a developer must transfer to the association, explicitly including the reserve study commissioned by the developer.

ENFORCEMENT

Increases penalties for management companies that fail to turn over association property and records, including liability for interest, late fees, and treble damages for willful violations.

DEFINITION

Clarifies that reserve studies must be conducted by independent professionals with no business relationship or financial interest in the developer.

Revised → Rerevised · 3 edits · Mar 25, 2026

MINOR

The bill was re-revised to include additional Senate sponsors and updated the official status to reflect amendments adopted in the Second House. Substantive policy changes were removed, specifically deleting a requirement that an entity must not be an affiliate of the declarant and removing the section mandating public disclosure of association identity, agent, and manager contact information.

Scope change

The bill's scope was reduced by removing provisions related to public disclosure requirements and affiliate restrictions for reserve studies.

REQUIREMENT

Deleted a requirement stating that the entity conducting reserve studies cannot be an affiliate of the declarant.

Removed the mandate for associations to publicly disclose the identity of the association, agent, manager, and contact information within 90 days.

TECHNICAL

Updated the document header to list additional Senate sponsors and changed the status from 'Revised' to 'Rerevised' to reflect new amendments.

Reengrossed → Revised · 2 edits · Mar 24, 2026

MINOR

The bill text was reorganized to reflect its progression from the House to the Senate, including updated committee assignments and reading dates. Substantively, the bill now requires condominium associations to provide owners with the most recent reserve study as part of their annual financial disclosures, ensuring owners have up-to-date data on the association's long-term financial health for maintenance and repairs.

Scope change

The bill's scope remains focused on protecting the financial condition of common interest communities, but the specific disclosure requirements were expanded to include a mandatory reserve study.

REQUIREMENT

Added a requirement for associations to disclose the most recent reserve study to unit owners as part of annual financial information.

TECHNICAL

Updated bill metadata including committee assignments and reading dates to reflect the bill's movement between legislative chambers.

Engrossed → Reengrossed · 3 edits · Feb 26, 2026

MINOR

The bill was reengrossed to include additional sponsors (Bacon, Joseph, and Lindsay) and to update the legislative status note, indicating that the bill passed its third reading in the House unamended on February 26, 2026. No substantive policy changes, such as new requirements, funding amounts, or eligibility criteria, were made to the bill text itself.

TECHNICAL

Added three new sponsors to the House sponsorship list: Bacon, Joseph, and Lindsay.

Updated the bill summary note to reflect that the bill passed third reading in the House unamended on February 26, 2026.

Changed the document title from 'ENGROSSED' to 'REENGROSSED' to reflect the legislative stage.

Introduced → Engrossed · 5 edits · Feb 24, 2026

MODERATE

The bill was amended to streamline the timing for reserve studies, shifting the requirement from 'prior to sale' to 'prior to transfer of control' to reduce administrative burdens on developers. The study requirements were simplified by removing specific clauses about updating the study after each building phase and clarifying that the professional conducting the study cannot have a financial interest in the developer, with one narrow exception for retained consultants. Additionally, the bill now explicitly requires the most recent reserve study to be provided to prospective buyers and included in annual public disclosures to owners.

TIMELINE

Changed the deadline for commissioning a reserve study from 'prior to the sale or conveyance' of a unit to 'prior to the transfer of control' from the declarant to the association.

REQUIREMENT

Deleted the requirement for the declarant to update the reserve study at the completion of each building phase.

Added a requirement for the declarant to provide the most recent reserve study to prospective purchasers.

Added the reserve study as a mandatory item in the annual public disclosures provided to unit owners.

ELIGIBILITY

Clarified that the reserve study professional cannot have a business relationship or financial interest in the declarant, except for the specific case where the declarant retains the same professional to conduct the studies.

Protect Financial Condition of Homeowners Associations

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