How We Calculate HOA Risk Ratings
We identify common financial and operational risk signals found in HOA documents.
What We Analyze
Financial Health Signals
- •Reserve funding percentage vs recommended levels
- •Delinquency rates and payment trends
- •Budget vs actual spending variances
- •Special assessment history or plans
Operational Signals
- •Active or pending litigation (mentioned in minutes)
- •Insurance coverage gaps or high deductibles
- •Deferred maintenance indicators
- •Board communication patterns
Rules & Restrictions
- •Rental restrictions and caps
- •Pet policies
- •Parking limitations
- •Modification restrictions
Risk Score Scale
80-100
Low Risk
Strong financial position, few restrictions
60-79
Medium Risk
Some concerns worth investigating
0-59
High Risk
Multiple significant concerns found
What The Score Means
Decision-support tool highlighting areas to investigate
Based on common underwriting signals used by investors
Shows relative risk compared to typical HOAs
What The Score Does NOT Mean
Not a guarantee of HOA quality or future performance
Not legal or financial advice
Not a replacement for professional review
Not predictive of specific outcomes
Citations Included
Every finding references specific page and section in your documents
Finding: High deductible ($25,000)
Source: Insurance Certificate, Page 4, Section 2.3