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Core Concepts

Reserve Planning        Financial Reports         Board Meeting Minutes         Insurance

 

The term Core Concepts refers to the four primary, or core areas of inquiry that are addressed when CIDA conducts a due diligence examination of a homeowner association. Each of these areas of inquiry is an important component of the fiscal and/or governance stability of every HOA.

 

 

BEST PRACTICES & STATE LAW

In some states, certain aspects of HOA governance, such as reserve planning, are mandated by state law, while in others it is left to the discretion of the Board of Directors to adopt policies and procedures that are in the best interest of the Association. The industry refers to these policies and procedures as Best Practices. Well-governed HOAs are typically those that make use of the Best Practices guidelines when developing a governance model for the community, regardless of whether the laws of a particular state require that they do so. HOAs that are in compliance with state laws and which follow the Best Practices standards tend to be the communities that receive the highest CIDA Scores. By focusing on these core areas of inquiry, it is possible to gain insight into the quality of governance at the administrative (management) and executive (Board) level.

The due diligence process involves four core areas of inquiry that are referred to as the Core Concepts.

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