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!

We ask for 5 calendar days from document submission for delivery of the analysis. You risk your form being rejected if you do not input a date 5 days from now. We need this time to put together a thorough report. Thank you.

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.

As a buyer, it is important to know the true value of replacement reserves beyond simply knowing the account balance at the time of purchase. The reserve study is an analytical tool that may be used to gain clarity when it comes to the future reserve spending obligations of the HOA but all reserve studies are not created equal. Do not be misled into thinking otherwise. The CIDA REPORT™ helps you interpret the reserve study and will place the Association's current funding status in perspective.
Financial reporting is just as important for an HOA as it is for any other business. Unfortunately, the reporting standards within the industry are a mix and match of unenforced statutes and internal rules that amount to an “honor system” which is subject to almost no regulatory oversight. The CIDA REPORT™ examines the reporting practices of the HOA so buyers know where they stand.
Governance of the HOA is the responsibility of a Board of Directors which typically consists of unpaid volunteers whose only qualification for serving on the Board may be that they own a home in the HOA. In almost every state in the U.S., HOA Boards are minimally regulated and subject to almost no government oversight, if at all. In the annals of HOA lore, the horror stories about HOA Boards are legendary. Is the HOA you are considering one of the horror stories or a success story? The CIDA REPORT™ can help you to answer this question.
Management and governance of the HOA are two distinct functions. Management refers to administrative activities that are necessary to the day-to-day operation of the Association. Governance refers to the planning and decision-making activities that determine policy, direction, and ultimately the success or failure of the organization. It is not an understatement to suggest that books have been written on the subject of the difference between management and governance. Understanding the difference between the two is critical to a successful HOA.
The Association’s insurance program is important to the financial stability of the organization in the same way that a well-designed insurance program is important for a family. In a housing development with attached living units, it is likely that much of the obligation for insuring the property (including your unit) lies with the HOA. Buyers need to know what coverage is included in the Association’s master policy to better understand what their own insurance obligations will be if they purchase a home in the HOA.


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

High Score:

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

Median Score:

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…

Low Score

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!

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