Property Management

A Colorado HOA that collects assessments but fails to maintain adequate reserves for future capital expenditures may be:

AA. In compliance with Colorado law regardless
BB. In violation of CCIOA, which requires HOAs to have a reserve study and maintain adequate reserves✓ Correct
CC. Only required to maintain reserves if the HOA has more than 50 units
DD. Only required to disclose reserve shortfalls to potential buyers

Explanation

Colorado's Common Interest Ownership Act (CCIOA) requires HOAs to conduct periodic reserve studies and maintain adequate reserves for major capital expenditures. Failure to maintain adequate reserves is a concern for owners and buyers, as it increases the likelihood of large special assessments.

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