Why is the CIDA SCORE™ Important?
The CIDA SCORE™ is time-sensitive and compliance-driven. A high score means the Association has provided current, complete documentation that is required by state law or the good governance principles to which all responsibly managed corporations should subscribe.
By comparing the HOA’s CIDA SCORE™ to the current median score of more than one thousand HOAs that have been examined by CIDA, a buyer can quickly assess how the subject property compares to other Associations that have been examined.
Above-average scores are the result of competent management and responsive governance that serves the best interest of the HOA members.
What Does Your Score Mean?
Stability & Compliance
A high CIDA SCORE™ requires that the Association is in compliance with applicable statutes and the internal rules of the organization. Timely and complete financial documents are necessary to achieve a score that is well above average. In particular, the Association must have a current reserve study that accurately reflects the reserve fund balance at the beginning of the budget year.
Setting a Standard
There is no failing score in absolute terms but comparing the Association’s CIDA SCORE™ to the current median score is a useful analytic. The median CIDA SCORE™ is the result of thousands of examinations over a period of years and a variety of state statutory landscapes.
The CIDA SCORE™ is time-tested and grounded in empirical data.
Work to Be Done…
A CIDA SCORE™ below the median does not mean the Association is a failure. It simply means that there is room for improvement. There are many reasons for a below-average CIDA SCORE™.
In most instances, the changes that are required to improve the Association’s CIDA SCORE™ will lead to a more stable and transparent governance model.