Under the Three Springs covenants, the seller pays an affordable housing fee when a home sells. The City of Durango has documented it at half a percent of the sale price, charged on every resale in the subdivision until 2057. Most Durango sellers never see a line like that on a settlement statement. Three Springs sales also carry a few smaller charges on the buyer's side. The housing fee and the buyer's transfer fee are set out in the Three Springs Master Association declaration, recorded on March 28, 2007. A second working capital fee comes from the separate Residential Association declaration.
In a fall market like this one, these charges are worth pricing in before an offer is written, not after the title company sends its numbers.
A housing fee that rides along with every sale
Section 12.4 of the Master Declaration lets the Master Association collect an Affordable/Attainable Housing Fee from anyone other than the Declarant who conveys title to a property in Three Springs. The Board of Directors sets the amount, which can range from 0% to no more than 1% of the gross purchase price. It is paid to the association at closing.
The money goes to affordable and attainable housing in Three Springs, the City service area, or La Plata County, through agreements with the City and/or the La Plata County Regional Housing Authority.
This came out of Three Springs' original approval. In January 2019, the Durango Herald reported that Three Springs was approved before the city's fair-share housing ordinance took effect, so it isn't subject to that ordinance. Instead, it "charges a 0.5 percent transfer fee on the sale of homes and land within the subdivision until 2057" to meet the city's housing requirements. According to the same article, the fee had raised about $312,450 by then. The city's housing plan calls it a voluntary HOA transfer fee and projects more than $25 million for Durango housing programs over 40 years. The Herald repeated the half-percent figure in March 2021.
Under the declaration, the rate is whatever the Board has set, anywhere up to 1%. The half percent is the figure the city and the Herald have published.
What the buyer's side owes the day they become an owner
The seller's fee is only part of it. Section 7.10 of the same declaration adds two charges for the buyer, both due "immediately upon becoming the Owner."
The first is a Working Capital Fee equal to one year of the current Master Association assessment. It's nonrefundable, and it can't be credited against future dues. The second is a Transfer Fee set by the Board. It's capped at 3% of the purchase price, and the Transfer Fee and the housing fee together can't exceed 3% of the price.
Most Three Springs homes also fall under the Residential Association, and its declaration has its own working capital fee. Section 7.14 charges a purchaser of a residential unit or lot a nonrefundable fee equal to the current annual Residential Association assessment.
The association's 2026 assessment rates make those formulas easy to work out. The Master Association charges $45.75 a quarter. The Residential Association charges $99.00 a quarter, or $24.75 for a vacant lot.
| Charge | Who owes it | How it's set | Where it's written |
|---|---|---|---|
| Affordable/Attainable Housing Fee | Seller | Board-set, 0% to 1% of gross price; documented by the city at 0.5% | Master Declaration §12.4 |
| Master Working Capital Fee | Buyer | One year of Master assessments: $183 at 2026 rates | Master Declaration §7.10 |
| Residential Working Capital Fee | Buyer | One year of Residential assessments: $396, or $99 for a vacant lot, at 2026 rates | Residential Declaration §7.14 |
| Transfer Fee | Buyer | Board-set, capped at 3%; combined with the housing fee, also capped at 3% | Master Declaration §7.10 |
The two working capital fees come to $579 for a home at 2026 rates. That's small change at Three Springs prices. The percentage-based fees grow with the price.
The math at September 2026 prices
Here is the countywide context. In September 2026, the La Plata County single-family median sale price was $807,000, and the townhouse/condo median was $588,000, according to the Durango Board of REALTORS monthly report (current as of October 5, 2026). Those are county figures, not Three Springs figures, but they make a reasonable test case.
At the documented half-percent housing fee:
- An $807,000 sale means a $4,035 housing fee for the seller.
- A $588,000 sale means $2,940.
- Add $579 in working capital fees on the buyer's side, and a sale at the single-family median moves about $4,614 to the associations before any Board-set Transfer Fee.
- If the Board set the housing fee at its 1% maximum, the $807,000 example would be $8,070 for the seller.
These amounts are set at closing, separately from the list price and the quarterly dues.
Why a slow fall turns these into negotiation points
How much these fees matter depends on who has leverage. Right now, buyers have more of it than they've had in years. In September 2026, La Plata County had 7.7 months of single-family supply, with 373 homes for sale and 134 days on market until sale. Townhouses and condos were at 8.8 months of supply and 120 days.
With that much supply, a buyer comparing a Three Springs townhome with one across town is comparing total cost, not just list price. Once the buyer's agent adds up the Three Springs charges, a seller can expect them to come up in negotiation. A seller who prices with the housing fee already counted avoids a surprise in the last week before closing.
The same logic applies to buyers. The working capital fees are nonrefundable and don't count toward future dues, so they're a real cost of buying here and belong in the cash-to-close estimate from the start.
Where the current rates live
The declarations give caps and formulas, not current figures, because the Board sets the rates and can change them. The association's document library posts the Master and Residential CC&Rs publicly and puts the rest of the governing documents on BUURT, CCMC's resident portal.
Both declarations also provide for an assessment-status certificate showing what's been paid or is owed on a property. They allow a reasonable fee for it and require it to be issued within 14 days of the request. A February 2026 presentation by the Colorado Division of Real Estate says state law doesn't cap status-letter charges. It also says the Colorado Common Interest Ownership Act requires associations to keep a list of their current purchase and sale fees, including transfer and status-letter fees.
Colorado also regulates transfer-fee covenants in C.R.S. § 38-35-127. The statute treats covenants recorded before and after May 23, 2011 differently, sets notice requirements for the older ones, and excludes certain association fees and fees assigned to governmental or quasi-governmental entities. Whether any part of it applies to a particular Three Springs charge is a question for a real estate attorney.
The covenants keep working after the keys change hands
The same documents that set the closing fees also shape what a new owner can change. The association's Design Review page says changes to a home or its landscaping need approval before work starts. Residential Declaration §11.1 requires prior written approval from the Design Review Committee for any work that changes a home's exterior appearance, and it names exterior color schemes specifically. Section 11.2 requires that approval before the City issues a building permit.
For buyers planning projects, the fence standards are the most specific. Residential chain-link fencing isn't allowed, front fences can be no taller than 48 inches, and side and rear fences no taller than six feet. Paint submissions need color names and manufacturer paint chips. On landscaping, the Master Declaration bars the association from prohibiting xeriscape or drought-tolerant landscaping that meets the community's Codes and Standards and Design Guidelines.
A buyer who plans a new fence or a repaint the first summer should expect a review step first.
Quick questions
Does the working capital fee count toward my first year of dues? No. The Master Declaration says the payment is nonrefundable and isn't credited against assessments or treated as an advance payment of them.
Are transfers without a sale, such as into a family trust, charged the housing fee? The Board may exempt conveyances that don't involve an exchange of money, such as transfers to a trust for estate planning or mergers of two entities. It decides case by case or by rule.
What does a vacant-lot buyer owe in working capital? At 2026 rates, one year of the $24.75 quarterly Residential lot assessment is $99, on top of the $183 Master Association fee.
This post is general information, not legal, tax or financial advice. Confirm the fees and terms for your own sale or purchase with the association, your title company, and a qualified attorney.
If you're thinking about selling in Three Springs this winter, SWCO Home Sales will build your pricing with the covenant fees already counted, so the number you agree to is close to the number you walk away with. Start with a free home valuation, and Jeremy will walk you through the full closing math for your address.
