Committee advances bill requiring reserve studies and faster HOA record transfers to Committee of the Whole, 5–2

The Senate Local Government & Housing Committee advanced House Bill 1099 to the Committee of the Whole on a 5–2 vote after sponsor remarks and two witness panels.

Senator Coker and Senator Marchman described the bill as a consumer‑protection and transparency measure for community associations. The bill would require developers for new common‑interest communities to provide a reserve study — an engineering and financial analysis that identifies long‑term replacement and maintenance needs — and would require management companies to transfer association accounts, books and records to the new manager within a defined period. Senator Marchman emphasized that the bill does not create ongoing state oversight but ensures buyers and owners receive critical information about deferred maintenance costs.

Witnesses supported the proposal but suggested refinements. Matthew Cousy, a reserve‑study professional, said reserve studies are a standard planning tool and recommended studies comply with current professional standards and be prepared by qualified professionals; he also suggested requiring periodic updates (three to five years). Ed (Sean) Hite, a long‑time HOA board member, said reserve studies are especially important for large associations with substantial common‑area infrastructure and suggested the bill’s developer funding metric (previous drafts discussed a 1.5% metric) could be too low for large communities. Molly Foley Healy, an attorney with the Colorado Coalition for Responsible Associations, described industry practice and explained that the bill allows an extra 15 days beyond the 30‑day industry standard (45 days total) for management companies to turn over records; she said the bill includes penalties intended to motivate timely transfers.

Why it matters: proponents say reserve studies and guaranteed records turnover reduce surprise special assessments and promote long‑term housing stability by giving owners and prospective buyers accurate information about future maintenance costs. Opponents did not testifying against the bill in the record; committee members noted potential areas for technical cleanup.

Action and next steps: Senator Marchman moved HB 1099 to the Committee of the Whole; the clerk called the roll and the motion passed 5–2. Sponsors said they will continue conversations as the bill moves forward.