Are Reserve Studies Required in Colorado?

The information provided in this article is for educational purposes only and should not be construed as legal, financial, or professional advice. Laws, regulations, and industry standards governing HOA reserve studies vary by state and change frequently. Always consult with a qualified attorney, financial advisor, or reserve study professional before making decisions based on the information presented here. HOA Start does not provide legal or financial advisory services.

Colorado’s reserve study requirements have changed significantly — and many boards haven’t caught up.

For years, the answer to this question was nuanced: Colorado required a written reserve study policy but stopped short of mandating that a HOA reserve report actually be produced from a study. That’s no longer the full picture. 

Updated legislation is pushing the state toward requiring regular reserve studies and funded reserve plans for HOAs and condominium associations.

If your board has been operating under the assumption that a policy document is enough, it’s time to reassess. Here’s where Colorado law stands and what your board needs to do.

Important note: This guide reflects Colorado law as of early 2026 and should not be treated as legal advice. Reserve study legislation is evolving, and boards should consult legal counsel to confirm current requirements.

 

 

The Historical Framework of Colorado HOA Reserve Studies

Colorado’s reserve study rules are rooted in the Colorado Common Interest Ownership Act (CCIOA), specifically Section 38-33.3-209.5.

Under the original framework, every association was required to adopt a written reserve fund and reserve study policy. That policy had to address:

• Whether the association has a reserve study
• Whether there is a funding plan tied to the study
• Whether the study includes both physical and financial analysis
• The projected funding sources for any recommended work

The law allowed reserve studies to be internally prepared — meaning a board member or volunteer could technically satisfy the requirement without engaging a professional. There was no state-set minimum for how much had to be reserved, and no mandated update schedule.

This framework put Colorado in an unusual position: the state recognized the importance of reserve planning but left most of the decisions to individual boards.

What Changed: House Bill 22-1387

House Bill 22-1387 significantly strengthens Colorado’s reserve study framework. The legislation pushes HOAs and condominium associations to conduct regular reserve studies and maintain funded reserve plans.

This moves Colorado from “policy required, study optional but strongly implied” to a framework where regular reserve studies and funding plans are required under the updated law.

The shift reflects a broader national trend. After the Surfside condominium collapse in Florida, legislatures across the country are tightening reserve study and funding requirements — and Colorado is no exception.

What Colorado Boards Need to Do Now

Review Your Current Reserve Policy

If your association has an existing reserve study policy, review it against the updated legal requirements. A policy written five or ten years ago under the original CCIOA framework may no longer be sufficient.

Commission a Professional Reserve Study

If your community has never had a professional reserve study — or if the last one is more than five years old — now is the time. While the prior law allowed internally prepared studies, the updated framework pushes toward the level of analysis that a credentialed professional provides.

A professional reserve study gives your board an independent assessment of component conditions, accurate cost estimates based on current contractor pricing, a 20- to 30-year financial projection, a defensible funding plan, and documented evidence that the board is meeting its obligations.

Establish a Funded Reserve Plan

Having a study on paper isn’t enough. Colorado’s evolving framework expects boards to tie the study’s recommendations to an actual funding plan — one that translates into annual contributions, is incorporated into the budget, and is reviewed regularly.

Make Records Available to Owners

Colorado requires associations to keep any existing reserve study as part of official records and make it available to owners upon request. If you commission a new study, ensure it’s properly stored and accessible.

Best Practices for Colorado HOAs

Meeting the legal minimum is the starting point. Strong boards go further.

Full Site-Visit Study Every Three to Five Years

Even if the statute allows longer intervals, industry best practice is a full reserve study with a site visit every three to five years. Conditions change, costs shift, and components age in ways that a desktop-only update can’t capture.

Desktop Updates in Between

In the years between full site-visit studies, a desktop-only financial update keeps your projections current. These are affordable — often under $1,000 for smaller communities — and prevent your financial model from drifting out of alignment with reality.

Immediate Review After Unexpected Events

If your community experiences unexpected component failures, major storm damage, or a significant capital project completed ahead of or behind schedule, update the study. Waiting for the next scheduled update can leave your funding plan based on assumptions that no longer hold.

Engage Communities With Structural Components Early

Associations with significant structural elements — parking garages, retaining walls, multi-story building envelopes — should lean toward the shorter end of the update cycle. Structural components carry higher replacement costs and greater safety implications, making accurate, current data especially important.

Ready to stay ahead of Colorado’s evolving requirements? Start your free trial with HOA Start and give your board the tools to store reserve studies, track contributions, and communicate financial plans to homeowners.

FAQ

Note: This FAQ reflects Colorado law as of early 2026 and should not be treated as legal advice. Reserve study legislation is evolving, and boards should consult legal counsel to confirm current requirements.

Does Colorado require a reserve study?

• Colorado’s updated legislation (HB 22-1387, effective 2025) pushes HOAs and condo associations toward regular reserve studies and funded reserve plans
• The prior framework required only a written reserve study policy, not a study itself
• The current legal landscape moves beyond “policy only” toward a de facto mandate for regular studies
• Internally prepared studies were previously allowed, but the trend is toward professional analysis
• Boards should consult legal counsel to confirm how the updated requirements apply to their specific community

What is the reserve study policy requirement?

• Under CCIOA, every Colorado association must adopt a written reserve fund and reserve study policy
• The policy must address whether the association has a study, whether it has a funding plan, and whether the study includes physical and financial analysis
• Updated legislation strengthens this by requiring regular studies and funded plans
• The policy should be reviewed and updated whenever new legislation takes effect
• The policy and any existing study must be kept as official records and made available to owners

How often should a Colorado HOA update its reserve study?

• Industry best practice is a full study with a site visit every three to five years
• Desktop-only financial updates should fill the gaps between site visits
• Communities with significant structural components should lean toward the shorter end of the update cycle
• Immediate updates are recommended after unexpected failures, major repairs, or significant property changes
• Check both your governing documents and current state law for any specific update requirements

Can a Colorado HOA do its own reserve study?

• The prior law allowed internally prepared studies to satisfy the policy requirement
• However, professional studies are significantly more accurate and more defensible
• Updated legislation pushes toward the level of analysis that a credentialed professional provides
• Lenders and buyers generally expect an independent, qualified professional’s assessment
• For communities that haven’t had a professional study, now is the time to invest in one

What happens if a Colorado HOA doesn’t have a reserve study?

• The board may be out of compliance with updated state law
• Homeowners could challenge the board’s financial management and funding decisions
• Lenders may find the community’s units harder to finance without documented reserve adequacy
• Board members may face fiduciary liability for failing to plan responsibly
• Property values can be affected if buyers discover the community lacks a current reserve study