The old saying, “knowledge is power” applies to the process of purchasing a home perhaps more so than any other financial transaction the typical consumer is likely to engage in. When you purchase a home in an HOA, you are investing in a not-for-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 and any outstanding debts the Association may have. Purchasing a home in an HOA without conducting the proper due diligence is as senseless as buying stock in a publicly-traded corporation. When you purchase a CIDA Report you are acquiring knowledge that is needed to make an informed decision regarding the most important investment you will ever make.
Every buyer who purchases a home in an HOA should be concerned about the Association’s ability to govern and to administer the affairs of the organization in an efficient and effective manner. The reserve planning efforts of the Board of Directors will, to a large degree, determine whether the community will be a sustainable economic entity after 35 to 40 years. In addition to long-range financial planning, there are more immediate considerations that need to be taken into account before deciding whether to purchase a home in any HOA. When you purchase a CIDA Report you will receive a comprehensive, written assessment that takes into account all of the information that is made available by the Association for review.
The CIDA Report includes the Association’s current CIDA Score and the previous score, if the Association has previously been examined by CIDA. The CIDA Score allows the buyer to compare the Association with other HOAs that CIDA has examined. The CIDA Score rates the Association based on an objective scoring metric that is designed to reflect the financial stability and administrative competence of the Association that is being rated. The CIDA Report includes a comparison of the score received by the subject property to that of other HOAs that are managed by the same management company or to other self-managed HOAs, if the Association being examined is self-managed.
As of February 2018 the cost of the CIDA Report is $350 throughout all markets that are served by CIDA. We have held the line on price increases since the first CIDA Report was delivered and will continue to do so for as long as possible.