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Recent Legislation

As in past years we are providing a summary of the pertinent legislation impacting special districts and community associations.

Each law listed below is linked to the Colorado General Assembly website and can be accessed by clicking the individual titles. Updated information related to laws that have not been signed as of the date of this memorandum or which do not officially become effective until after the referendum period runs will be provided on our website at www.wbapc.com.

If you would like more detailed information on any of the information contained herein or on bills which were introduced but not passed, please let us know.

The material and info contained on these pages and on any pages linked from these pages are intended to provide general information only and not legal advice.

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HB26-1065 — Transit and Housing Investment Zones - Concerning transit and housing investment zones, and, in connection therewith, making an appropriation.

View the text of HB26-1065

The law creates the Transit Investment Area Act, which allows a local government and a transit agency to jointly pursue a transit investment project by designating a transit investment area and creating a transit investment authority—or designating a county revitalization authority, metropolitan district, or urban renewal authority instead—to receive and spend the state sales tax revenue generated within the area above a set base amount, plus 20% of the state sales tax increment revenue. The local government applies to the Colorado Office of Economic Development and the Colorado Economic Development Commission (the Commission), which reviews and may approve the project and authorize collection of the increment revenue for up to 30 years. The Commission may approve no more than three such projects per year (six total) and may dedicate no more than $75 million per year across all approved projects. If a transit investment authority is created, its governing board includes members appointed by the Commission and the local government, along with one member appointed by the transit agency. The authority has no power of eminent domain and cannot impose or levy any tax.

The law requires the Colorado office of economic development, in consultation with the department of local affairs and the department of transportation, to publish a transit and housing investment zone map by October 30, 2026.

The law also creates the Colorado affordable housing in transit and housing investment zones tax credit, administered in the same manner as the existing Colorado affordable housing in transit-oriented communities income tax credit, but available for qualified low- and middle-income housing projects in transit and housing investment zones. Up to $8,333,333 in credits may be awarded each calendar year from 2027 through 2033.

The law was signed by the Governor on May 27, 2026, and takes effect immediately.

View the text of HB26-1095

Current law requires a county or municipality to publish legal notices in a physical print newspaper. The law also requires newspapers to publish these notices online, either on their own website or by providing a link to a location where the full text of the notice is available, such as the statewide public notice website. Legal notices published online must be freely accessible and may not be placed behind a paywall or subscription. The law also applies these requirements to special districts and requires the statewide public notice website to include a list of newspapers that meet the qualifications for publishing legal notices.

The law was signed by the Governor on May 19, 2026, and takes effect 90 days after the end of the legislative session, August 12, 2026, unless a referendum is filed. If a referendum is filed, then it will be on the November 2026 ballot.

 

View the text of HB26-1113

The bill modifies the Uniform Election Code of 1992, which generally does not apply to special district elections conducted under the Local Government Election Code, as well as the Colorado Open Records Act. The changes make the statutory language gender-neutral and clarify that a designated election official is not required to cover or redact ballot markings or messages voluntarily made by an elector.

Related to special districts, the bill was amended to include the following provision in Section 30-1-103, C.R.S.: “Oaths or affirmations for public office filed with the county clerk and recorder’s office in accordance with section 24-12-101(3) are exempt from any fees under this section.”

The law was signed by the Governor on June 1, 2026, and will take effect August 12, 2026 (90 days after the end of the legislative session), unless a referendum is filed. If a referendum is filed, the measure will appear on the November 2026 ballot.

View the text of HB26-1253

Under current law, the owners of certain tracts of agricultural or farm land within and adjacent to the boundaries of a statutory town or city may petition the district court to disconnect the land from the municipality through a court decree. The law changes the eligibility requirements for this process. Tracts of land located within the boundaries of an urban renewal area identified in an urban renewal plan or within a special district that is expected to provide services to the property are no longer eligible for disconnection by court decree. Instead, owners of these properties must follow the disconnection by ordinance process. Under current law, an owner of a tract of land within and adjacent to a statutory municipality may apply to the municipality’s governing body for the adoption of an ordinance disconnecting the property. The law expands this process by requiring the property owner to provide notice and a copy of the application not only to the county commissioners and any affected special district, but also to any affected urban renewal authority. After receiving the notice, the county, affected special district, or urban renewal authority may request a meeting with the property owner and the municipality to discuss potential impacts of the proposed disconnection, including changes to public services or interference with the implementation of an urban renewal plan. If any of these entities do not request a meeting, they are considered to have acknowledged that the disconnection will not adversely affect their interests. The law applies to applications for disconnection from a statutory municipality and petitions for disconnection from a statutory city or town that are commenced on or after the law’s effective date.

The law was signed by the Governor on May 4, 2026, and takes effect on August 12, 2026 (90 days after the end of the legislative session), unless a referendum is filed. If a referendum is filed, the measure will appear on the November 2026 ballot.

View the text of SB26-142

The law authorizes a local government or special district to enter into agreements with one or more entities to provide services through a thermal energy network. It also authorizes local governments to issue bonds to finance thermal energy infrastructure, interconnections, and customer connections within their jurisdictions. The law increases the maximum net electric generating capacity of a community geothermal garden from 5 megawatts to 25 megawatts. Additionally, the law requires the Colorado Energy and Carbon Management Commission and the Colorado Geological Survey to collect data on the state’s geological resources. The Commission must develop recommendations to encourage the safe and effective development of geothermal resources and submit a report to the General Assembly by November 15, 2026. The law also requires investor-owned electric utilities to identify and solicit proposals for both small-scale geothermal projects (up to 25 megawatts) and large-scale geothermal projects (greater than 25 megawatts). If a utility receives qualifying bids, it must submit an application to the Public Utilities Commission, which must approve, conditionally approve, modify, or deny the application within 120 days.

Specifically related to special districts, the law amends Section 32-1-1001 to authorize special districts to enter into agreements with one or more parties, including other local governmental entities, for the provision of service from a thermal energy network in accordance with Sections 40-4-121(7) and 29-1-208, C.R.S.

The law was signed by the Governor on June 1, 2026, and takes effect on August 12, 2026 (90 days after the end of the legislative session), unless a referendum is filed. If a referendum is filed, the measure will appear on the November 2026 ballot.

View the text of SB26-093

The law requires that, before work begins under a building or construction permit for a project with a total construction cost exceeding $1 million, the permit applicant must submit a signed declaration, under penalty of perjury, to the permitting agency. The declaration must verify that all individuals working under the permit—including subcontractors—will maintain workers’ compensation insurance coverage for the duration of the project. The law also allows any person to file a complaint with the Division of Workers’ Compensation within the Colorado Department of Labor and Employment if they believe a person working under the permit is not maintaining the required workers’ compensation insurance coverage.

Notably, special districts are excluded from the law’s definition of a governmental entity and, therefore, are not considered permitting agencies under these requirements.

The law was signed by the Governor on May 29, 2026, and took effect immediately.

 

HB26-1099 — Protect Financial Condition of Homeowners Associations - Concerning protecting the financial condition of common interest communities.

View the text of HB26-1099

The law requires the declarant of a new planned community or condominium to obtain and pay for a reserve study before transferring control of the association to the owners. The reserve study must estimate the projected costs of maintaining, repairing, or replacing the community’s common elements over a 30-year period.

The reserve study must be prepared by an independent reserve study professional or another qualified professional who is knowledgeable about industry standards and has no business or financial relationship with the declarant.

The law also establishes requirements for the transfer of records when an association changes management companies. Except for self-managed associations, the former management company must, within 45 days, provide the new management company or the association—at no cost—all association property, records, funds, accounts, and other required information. Unless otherwise agreed to in writing, the former management company must pay the association $250 for each business day it fails to timely return the required property and records. It is also responsible for any interest, late fees, and other damages incurred by the association as a result of the delay. If the association files a civil action and the court determines that the former management company’s failure to turn over the property and records was willful, the company may be liable for three times the association’s actual damages, in addition to reasonable attorney fees and court costs.

The law was signed by the Governor on April 13, 2026, and takes effect on August 12, 2026 (90 days after the end of the legislative session), unless a referendum is filed. If a referendum is filed, the measure will appear on the November 2026 ballot.

HB26-1001 — Housing Developments on Qualifying Properties - Concerning the promotion of residential developments on qualifying properties.

View the text of HB26-1001

The law requires a subject jurisdiction, on or after December 31, 2027, to allow — through an administrative approval process — a residential development on a “qualifying property,” meaning real property of no more than 5 acres owned by a nonprofit with a demonstrated history of providing affordable housing (or a nonprofit partnered with one), a nonprofit that provides public transit, a school district, a state college or university, a housing authority, or a local or regional transit district or regional transportation authority. If a subject jurisdiction requests documentation that a nonprofit meets these criteria, the nonprofit must provide it.

A subject jurisdiction may not restrict a qualifying development based on height (if no taller than 3 stories or 38 feet, or if it meets applicable zoning height standards), based on the number of dwelling units except as specified in the law, or by applying standards more restrictive than those imposed on comparable housing elsewhere in the jurisdiction, including setbacks, lot coverage, parking, bedroom counts, landscaping, and density. If allowed conditionally or by right within the zoning district in which the qualifying property is located, the jurisdiction must also allow child care and community recreational, social, or educational services.

 The law was signed by the Governor on Mach 25, 2026, and takes effect immediately.