Why Should You Buy The CIDA Report™?
When you purchase a home in a HOA, you are investing in a non-profit corporation. As an owner/member of this corporation, you are responsible for a portion of the organization’s operating expenses and any long-term financial obligations, including reserve spending obligations.
Purchasing a home in an HOA without conducting proper due diligence is as senseless as investing in the stock of a publicly-traded corporation without conducting proper due diligence. When you purchase the CIDA REPORT™, you are taking the first step that leads to a successful investment. Don’t let your dream home become a nightmare!
What Do You Get With Your Purchase?
Knowledge Is Power
Knowledge is power! This old saying applies to the home-buying process more so than any other financial transaction. When you purchase a home in a homeowner association (HOA), you become a member of a nonprofit corporation, for better or worse!
As a member of the HOA, you are responsible for a portion of the organization’s operating expenses and long-term financial obligations, including reserve spending obligations and outstanding debts the Association may have. Proper due-diligence is equally important, whether you are purchasing a home in an HOA or investing in the stock of a publicly-traded corporation. The CIDA REPORT™ provides you with the knowledge that is needed to make an informed decision regarding the most important investment you will ever make.
The CIDA Report™
In some states, certain aspects of HOA governance are dictated by state law. 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 the laws of a particular state. Learn more below about the Core Concepts the CIDA Report is built upon.
Our Core Concepts
The due diligence inquiry focuses on these core concepts that are critical to the success of the HOA…
Reserves, Financial Reporting, Governance, Management, and Insurance.
Each of these concepts is an important component and critical to the success of HOA stewardship.
The CIDA Score™
The CIDA REPORT™ includes the Association’s CIDA SCORE™ and the current median score of more than one-thousand HOAs that have been examined by CIDA. The CIDA SCORE™ allows the buyer to compare the subject property with other HOAs that have been rated. The CIDA SCORE® is an objective process that assigns a numerical rating to more than two-hundred positive and negative impact factors with a theoretical perfect score of 100. Click here to learn more about the CIDA SCORE®.
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.
Don’t let your dream home become a nightmare…
Take your first step that leads to a successful investment!
Buy the CIDA Report With The Button Below