When does declarant control of a Colorado association end?

Under C.R.S. § 38-33.3-303(5), the period of declarant control ends no later than the earliest of: 60 days after conveyance of 75 percent of the units that may be created to owners other than a declarant; two years after the last conveyance of a unit by the declarant in the ordinary course of business; or two years after any right to add new units was last exercised. Large planned communities under § 38-33.3-116.3 use different measures: 60 days after 75 percent of the maximum number of units, six years, or twenty years after recording the declaration, with an owner-approved extension option. When a particular community's period ends is a question for its counsel.

When do Colorado owners get seats on the board before turnover?

Section 303(6) provides that within 60 days after 25 percent of the units that may be created are conveyed to non-declarant owners, at least one board member and not less than 25 percent of the board must be elected by owners other than the declarant. Within 60 days after 50 percent are conveyed, not less than one-third of the board must be elected by those owners. How the count applies to a particular community is a question for its counsel.

What must a Colorado declarant deliver at turnover?

Section 303(9) requires the declarant, within 60 days after owners other than the declarant elect a majority of the board, to deliver association property and records, including the governing documents and minute books; an accounting and financial statements audited by an independent certified public accountant at the declarant's expense; association funds; plans and specifications; insurance policies; certificates of occupancy and recent permits; unexpired warranties; the owner and mortgagee roster; and employment and service contracts. From August 12, 2026, HB 26-1099 adds the declarant's 30-year reserve study as § 303(9)(n). Whether a particular delivery is complete is a question for association counsel.

Who pays for the turnover audit in Colorado?

Section 303(9)(b) provides that the accounting and financial statements delivered at turnover are to be audited by an independent certified public accountant and that the expense of the audit shall not be paid for or charged to the association. Questions about a particular turnover belong with association counsel.

What liability standard applies to declarant-appointed board members in Colorado?

Section 303(2)(a) requires officers and board members appointed by the declarant to exercise the care required of fiduciaries of the unit owners. Section 303(2)(b) provides that board members and officers not appointed by the declarant are not liable for actions or omissions in the performance of their duties except for wanton and willful acts or omissions, subject to the separate reserve-investment standard in § 303(2.5). No published Colorado decision CICSC has verified defines 'wanton and willful' in this setting; questions about personal exposure belong with counsel.

Colorado Law · Developer Turnover · § 38-33.3-303

Declarant Control and Turnover in Colorado Under § 38-33.3-303: Triggers, Deliverables, and the Receiving Board

Colorado calls the developer the “declarant,” and its turnover rules run on two clocks: a percentage of units conveyed and a passage of time. When the owners take the board, the declarant has 60 days to hand over the association’s property, records, money, and an audit it pays for. Since August 12, 2026, it also hands over a 30-year reserve study.

By the CIC-SC Editorial Team Updated November 8, 2026 Reading time: ~11 minutes Audience: Colorado Boards in Declarant-Controlled Communities, Owners, Managers

Educational notice. This information is educational in nature and should not be construed as legal advice. Statutory language is quoted from the Colorado Revised Statutes and enrolled bills as published by the Colorado General Assembly at the time of writing. Consult qualified association counsel regarding legal interpretation specific to your jurisdiction.

Version note: verified against the 2024 Colorado Revised Statutes (Office of Legislative Legal Services printout) and enrolled bills HB 25-1272 (effective August 6, 2025, for claims brought on or after that date) and HB 26-1099 (effective August 12, 2026); later amendments are possible.

The Bottom Line

Declarant control of a Colorado common interest community is governed by C.R.S. § 38-33.3-303(5)–(9) of the Colorado Common Interest Ownership Act (CCIOA). Declarant control ends no later than the earliest of three events, most commonly 60 days after 75 percent of the units that may be created are conveyed to non-declarant owners. Owners other than the declarant elect at least one member and not less than 25 percent of the board within 60 days after 25 percent of units are conveyed, and not less than one-third within 60 days after 50 percent. By the end of declarant control, owners elect a board of at least three, a majority of whom are owners other than the declarant or their designated representatives. Within 60 days after owners other than the declarant elect a board majority, the statute calls for the declarant to deliver an enumerated package under § 303(9), including financial statements audited by an independent CPA at the declarant’s expense. Section 209.4 sets 90-day disclosure clocks that start when the association assumes control. HB 26-1099 adds a declarant-paid 30-year reserve study to the deliverables from August 12, 2026.

Operational Context: Why Turnover Is the Hinge Moment

During declarant control, the people who appointed the board and the people who will pay for the community’s long-term costs are not the same. CCIOA addresses that gap with three tools: a fixed outer limit on declarant control, staged owner seats on the way to it, and a defined delivery list when it ends. It also states different standards for the two kinds of board member. Section 303(2)(a) provides that declarant-appointed officers and board members are required to exercise the care required of fiduciaries of the unit owners. Section 303(2)(b) provides that members and officers not appointed by the declarant are not liable for actions or omissions except “wanton and willful” acts or omissions, subject to the reserve-investment standard in § 303(2.5). How these standards apply to a particular decision has not been settled in a published decision CICSC has verified and is a question for counsel. See the Colorado director liability article.

This matters when the first owner-elected directors join a board that still has a declarant majority. Section 303(1)(b) gives every board member access to all information about the association’s operation that any other board member has, notwithstanding the declaration or bylaws.

From the CIC-SC Governance Standards Council: Turnover is the point at which the statute calls for the declarant to account for the association’s history, with the audit at the declarant’s cost. Boards that work the § 303(9) list item by item start with a complete record.

Which Communities These Rules Reach

Section 303(5)–(9) applies to communities created on or after July 1, 1992 that are subject to CCIOA (and not limited to §§ 105–107 as small cooperatives or planned communities under § 116). The § 38-33.3-117 list of CCIOA provisions that apply to pre-1992 communities includes § 303(1)(b), (3)(b), (4)(a) and (4)(b), but not § 303(2), (2.5), or (5)–(9). A pre-1992 community that elected full CCIOA treatment under § 118 is in a different position. Applicability to a particular community is a question for counsel; see the pre-1992 communities explainer.

The End of Declarant Control: § 303(5)

The period of declarant control ends no later than the earliest of:

Trigger	Standard community	Large planned community (§ 116.3)
Conveyance	60 days after 75 percent of the units that may be created are conveyed to owners other than a declarant	60 days after 75 percent of the maximum number of units that may be created under governmental development approvals
Sales stop	Two years after the declarant’s last conveyance in the ordinary course of business	Six years
Expansion stops / outer limit	Two years after any right to add new units was last exercised	Twenty years after recording of the declaration, with an owner-approved extension option (§ 303(5)(c))

The statute measures against “units that may be created,” not units built to date. How that number is determined for a particular community is read from the declaration, with counsel.

Before Turnover: The 25 and 50 Percent Seats (§ 303(6)–(7))

25 percent conveyed: within 60 days, owners other than the declarant elect at least one board member and not less than 25 percent of the board.
50 percent conveyed: within 60 days, owners other than the declarant elect not less than one-third of the board.
End of declarant control (§ 303(7)): owners elect a board of at least three members, at least a majority of whom are owners other than the declarant or their designated representatives; the board elects the officers.

The board itself does not elect board members or set their qualifications or terms; it may fill vacancies for the unexpired term (§ 303(3)(a)). Owner elections run under § 38-33.3-310, which generally requires a secret ballot for contested board seats and sets rules for proxies. See the Colorado board elections article.

The 60-Day Delivery: § 303(9)

Section 303(9) provides that, within 60 days after owners other than the declarant elect a majority of the board, the declarant shall deliver all property of the owners and the association it holds or controls, including:

the governing documents and minute books;
an accounting for association funds and financial statements, audited by an independent certified public accountant at the declarant’s expense;
the association funds or control of them;
plans and specifications;
insurance policies;
certificates of occupancy and recent permits;
unexpired warranties;
a roster of owners and mortgagees;
employment and service contracts; and
for large planned communities, recorded deeds and leases for association common elements.

From August 12, 2026, HB 26-1099 adds the declarant’s reserve study as § 303(9)(n).

The turnover audit

Section 303(9)(b) calls for the accounting and financial statements to be audited by an independent CPA and provides that the audit expense “shall not be paid for or charged to the association.” Boards commonly have their own accountant read the audit and raise questions while the declarant is still engaged.

The declarant reserve study (from August 12, 2026)

New § 38-33.3-209.2 generally requires the declarant of a planned community or condominium, before transferring control, to commission and pay for a reserve study of the components the association maintains, repairs, or replaces, projecting costs over 30 years, by an independent professional with no business relationship with, financial interest in, or affiliation with the declarant. The study is also added to the annual disclosure as § 209.4(2)(j). Whether the requirement reaches turnovers already completed or under way on August 12, 2026 is not settled in the sources CICSC has verified and is a question for counsel. See Colorado’s Reserve Study Policy.

The Association’s First 90 Days

Turnover also starts the association’s own clocks:

Identity disclosure (§ 209.4(1)). Within 90 days after assuming control, the association makes available its name, designated agent or management company, physical address and phone for each, the community name, and the declaration’s recording date and reception number (or book and page).
Annual disclosure (§ 209.4(2)). Within 90 days after turnover, the first annual packet: budget, assessments, financial statements with reserves, audit or review results, insurance list, governing documents, minutes, and the § 209.5 policies. See Colorado’s Annual Disclosure.
Policies (§ 209.5). Section 209.5(1)(b) lists nine policy subjects. Receiving boards commonly check which policies the declarant-era board adopted. See the 209.5 policies article.
Registration (§ 38-33.3-401). Section 401(2) calls for registration information to be updated within 90 days after any change, and § 401(3) generally suspends lien-enforcement and § 123 enforcement rights while registration is lapsed; recorded liens are not extinguished.

What Receiving Boards Typically Review

The delivery list itself. Each § 303(9) item, received or not, noted in writing at the time.
The audit and the opening balances, with the association’s own accountant.
Contracts. The employment and service contracts delivered under § 303(9). CCIOA § 38-33.3-305 separately addresses termination of declarant contracts; its application is a question for counsel.
Warranties and physical condition. Unexpired warranties have dates. Where construction defects are suspected, § 38-33.3-303.5 sets an owner-notice, meeting, and owner-approval process before a board may bring a construction-defect action; since HB 25-1272 (effective August 6, 2025, for claims brought on or after that date) approval requires at least 65 percent of association votes. That process is not a substitute for counsel; associations typically engage counsel before considering a claim. See the CDARA and owner-consent article.
The declaration’s amendment terms. In Vallagio at Inverness Residential Condominium Ass’n v. Metropolitan Homes, Inc., 2017 CO 69, the Colorado Supreme Court held, on the declaration before it and construing §§ 38-33.3-104, -217(1)(a)(I), and -302(2), that a provision in the original declaration requiring the declarant’s consent to amend the arbitration provision was consistent with CCIOA and enforceable, so the owners’ attempted amendment without that consent was ineffective. Receiving boards commonly ask counsel which provisions of their declaration carry declarant-consent requirements.

Common Mistakes & Pitfalls

Counting units built instead of units that may be created. The 25, 50, and 75 percent measures in the statute run against units that may be created.

Overlooking the time-based triggers. Section 303(5) ends declarant control at the earliest of the listed events, so the time limits operate alongside the conveyance percentage.

Charging the turnover audit to the association. Section 303(9)(b) provides that the audit expense is not to be paid for or charged to the association.

Missing the association’s own 90-day disclosures. The receiving board inherits the § 209.4 deadlines from the date it assumes control.

Frequently Asked Questions

When does declarant control of a Colorado association end?: Section 303(5) generally ends it no later than the earliest of 60 days after 75 percent of units that may be created are conveyed to non-declarant owners, two years after the declarant’s last ordinary-course conveyance, or two years after the last exercise of a right to add units. Large planned communities use different measures. When a particular community’s period ends is a question for its counsel.
When do owners get board seats before turnover?: Section 303(6) provides for at least one seat and not less than 25 percent of the board within 60 days after 25 percent conveyance, and not less than one-third within 60 days after 50 percent conveyance, elected by owners other than the declarant.
What must the declarant deliver?: Within 60 days after owners elect a board majority, the § 303(9) package: governing documents and minute books, a CPA-audited accounting and financial statements at the declarant’s expense, association funds, plans and specifications, insurance policies, certificates of occupancy and recent permits, unexpired warranties, the owner and mortgagee roster, and employment and service contracts. From August 12, 2026, the declarant reserve study too. Whether a particular delivery is complete is a question for counsel.
Who pays for the turnover audit?: Section 303(9)(b) provides that the audit expense is not to be paid for or charged to the association.
What standard applies to declarant-appointed board members?: Section 303(2)(a) states the care required of fiduciaries of the unit owners. Section 303(2)(b) states a “wanton and willful” standard for members not appointed by the declarant, subject to § 303(2.5). Questions about personal exposure belong with counsel.

Key Takeaways

Section 303(5) ends declarant control at the earliest of conveyance-based and time-based triggers measured against units that may be created.
Receiving boards commonly track the § 303(9) list item by item and note gaps in writing at delivery.
The turnover audit is at the declarant’s expense under § 303(9)(b); boards commonly have their own accountant review it.
From August 12, 2026, the § 209.2 reserve study joins the deliverables; its reach to turnovers already under way is a question for counsel.
The § 209.4 disclosure clocks start when the association assumes control.
Suspected defects trigger the § 303.5 owner-approval process, reviewed with counsel.

Inherit an institution, not a mystery.
The CIC-SC Colorado library covers CCIOA statutory walkthroughs, disclosure calendars, and board-education resources tied to current Colorado law.

References & Sources

C.R.S. § 38-33.3-303(2), (3), (5)–(9) — Executive board; standards of care; declarant control; owner seats; turnover delivery. Colorado Revised Statutes 2024, Title 38. content.leg.colorado.gov — crs2024-title-38.pdf
C.R.S. § 38-33.3-116.3 — Large planned communities (same source).
C.R.S. §§ 38-33.3-117, -118 — Pre-1992 communities; election to be governed by CCIOA (same source).
C.R.S. § 38-33.3-209.4(1)–(2) — Post-turnover disclosures (same source).
C.R.S. § 38-33.3-303.5 — Construction-defect actions; owner disclosure and approval (same source), as amended by HB 25-1272, Session Laws 2025, ch. 183. leg.colorado.gov/bills/hb25-1272
C.R.S. § 38-33.3-310 — Voting; secret ballots; proxies (same source).
HB 26-1099, Protect Financial Condition of Homeowners’ Associations, Session Laws 2026, ch. 42 (adds § 209.2 and § 303(9)(n)), effective August 12, 2026. leg.colorado.gov/bills/hb26-1099
Vallagio at Inverness Residential Condominium Ass’n v. Metropolitan Homes, Inc., 2017 CO 69, 395 P.3d 788. Caselaw Access Project

Related Resources & Additional Reading from the CIC-SC Library

Florida HOA Developer Turnover Under § 720.307 — the Florida counterpart.
Colorado’s Reserve Study Policy
Colorado’s Annual Disclosure Under § 38-33.3-209.4

Tags: Colorado declarant turnover · C.R.S. 38-33.3-303 · declarant control · 75 percent conveyance · turnover audit · turnover deliverables · HB 26-1099 · declarant reserve study · CCIOA · first owner-controlled board

Disclaimer. This article is published by the Common Interest Community Standards Council for educational and informational purposes only. It is not legal advice and does not establish an attorney-client relationship. Statutory references and procedural frameworks are intended to support informed governance, not to substitute for advice from qualified Colorado legal counsel. Boards and managers should consult their association’s attorney about the application of any statute, governing-document provision, or governance decision to their specific circumstances. CIC-SC, its authors, and its members assume no liability for actions taken in reliance on this content.

CICSC publishes this article for educational and informational purposes only. It is not legal, tax, accounting, engineering, insurance, or financial advice and does not establish an attorney-client relationship. Statutory references and operational frameworks are intended to support informed governance, not to substitute for advice from qualified legal counsel and other professional advisors familiar with your jurisdiction and your association's facts. CICSC, its authors, and its members assume no liability for actions taken in reliance on this content.