Due diligence in the housing cooperative

Annual report

Review income statement, balance sheet, and cash flow. Focus on:

• Association interest-bearing debt and rate periods
• Maintenance fund vs upcoming projects
• Planned major investments (pipes, facade, elevator)

Maintenance plan

A credible maintenance plan shows when large works are due. If big projects lack funding, monthly fees may rise sharply.

Bylaws and disclaimers

Check share size, transfer fees, and inspection disclaimers. Ask the board about disputes or planned fee increases.

Red flags

• Negative cash flow for years without a plan
• Very low fee that does not cover operations
• Deferred maintenance on an aging building