The transition reserve study under HB26-1099

What the law now requires

According to the Colorado Division of Real Estate's summary of HB26-1099, signed on April 13, 2026:

• The developer (the declarant) must commission and pay for a reserve study before control passes to the association.
• The study covers the common elements and property the association must maintain, repair or replace, over 30 years.
• It must be prepared by an independent reserve study professional, or another qualified professional who knows the industry standards for reserve studies.
• The preparer cannot have a business relationship with or a financial interest in the developer, or be its affiliate.
• Within 60 days after owners elect a majority of the board, the developer hands over association property, including the study.
• The association then gives owners the latest study within 90 days after control ends and within 90 days after each fiscal year end.

The bill as introduced also proposed that developers update the study after each phase and pay part of the reserve funding at handover. Check the enacted text on the General Assembly's bill page or with the association's attorney before relying on either.

What a new board should check

1. The component list against the plans. Missing items, such as a detention pond, a retaining wall or private drives, are the usual gap.
2. Useful lives in local conditions. A Front Range roof faces hail; mountain decks face strong UV. See how Colorado weather shortens component lives.
3. Starting balance. Whether the opening reserve figure in the study matches what the association actually received.
4. The funding plan. Whether the recommended contribution is in the first owner-adopted budget.
5. The written policy. The board still needs its own reserve study policy under 209.5; the handover study does not replace it.