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The co-operative generated $1.20 million in revenue for fiscal 2025, up 1.4 percent year-over-year, and spent $1.15 million in operating and capital expenses, producing a $50,881 surplus. This follows a $79,608 surplus in 2024. The operating ratio is 0.96, meaning the co-op spends 96 cents for every dollar earned, leaving a four-cent margin before reserve contributions. Member arrears total $412 across 52 units, an arrears rate of 0.03 percent, which is functionally zero.

Reserves stand at $1.32 million, funded by annual contributions of $383,749. The co-op spent $349,552 from reserves during the year on kitchen renovations, roofing work totaling $142,210, and exterior renovations. Reserve runway is 3.78 years at current spending levels.

The exception: After year-end, the co-op signed a contract for $669,212 to complete parking lot repaving, retaining wall replacement, and staircase upgrades. The original budget approved by members was $400,000. The overrun of $269,000 represents a 68 percent cost escalation and will reduce reserves to approximately $1.05 million. This is not a reserve adequacy problem — it is a project estimation problem. The co-op has the cash to pay for the work without a special levy, but the buyer should not absorb the cost of the board's budget miss.

This is a 52-unit townhouse co-operative built in 1980, now 45 years old. The documents show $349,552 in capital spending during fiscal 2025, including $142,210 for roofing, $20,521 for exterior renovations, and unit upgrades. The board has committed an additional $669,212 for parking lot repaving, retaining wall replacement, and central staircase upgrades, bringing total capital investment over the two-year period to over $1 million.

For a property of this age and construction type, the primary physical risks are property envelope deterioration, foundation settlement, and parking lot base failure from freeze-thaw cycles. The contracted work addresses two of these three risks directly. The board engaged a consulting engineering firm to provide design and tendering services, which demonstrates professional oversight.

What Pellucis did not find: The documents contain no reference to a reserve fund study completed within the past five years. There is no property envelope assessment on file despite the age of the structure. There is no mention of fire safety system inspections, mechanical system assessments, or plumbing infrastructure reviews.

Owners are engaged and cooperative. Meeting attendance at the July general meeting represented 40 to 50 percent turnout, well above the 10 to 15 percent required for quorum. Five active committees are functioning. The documents show zero noise complaints, zero bylaw disputes, zero tribunal references, and zero fines over the period analyzed. Meeting tone was collaborative and routine. No problem units consume disproportionate council time. A buyer moving into this building can expect a stable, participatory community without chronic conflict.

This board is financially disciplined but operationally reactive. The evidence for discipline: the board increased reserve contributions mid-year, maintained consecutive operating surpluses, grew reserves, and reduced mortgage debt by $106,152.

The evidence for reactive operations: the parking lot project budget escalated from a mid-$350,000 engineering estimate to a $669,212 contracted cost, a 90 percent increase from estimate to execution.

Where governance weakens: The board has not commissioned a reserve fund study within the statutory five-year timeline, leaving capital planning without professional forecasting. The parking lot overrun demonstrates the cost of this gap — a reserve fund study would have identified the replacement cost and timeline, preventing a 68 percent budget miss.

No Reserve Fund Study Within Statutory Timeline

The documents contain no reference to a reserve fund study completed within the past five years, which Ontario co-operative housing legislation requires. For a 45-year-old property with $1.32 million in reserves and annual capital spending exceeding $350,000, a current study is the foundation of capital planning. Before closing, the buyer should require the co-op to commission a reserve fund study and review the findings.

No Property Envelope Assessment for 1980 Construction

The documents contain no property envelope assessment for a townhouse complex built in 1980. Properties from this era face predictable envelope risks: window seal failure, siding deterioration, flashing breakdown, and water ingress at wall-roof transitions. For a buyer, an unassessed envelope is an unquantified liability. Before closing, retain an independent property envelope consultant.

No Mechanical or Plumbing Infrastructure Assessment

The documents contain no assessment of mechanical systems, plumbing infrastructure, or electrical capacity for a 45-year-old property. Townhouse complexes from 1980 typically have shared plumbing mains and site drainage systems at or beyond their design lifespan. Before closing, require the co-op to provide maintenance records and retain an engineer to assess remaining lifespan.

What is strong about this building:

This is a financially stable co-operative with strong reserves, consecutive operating surpluses, negligible arrears, and engaged ownership. The board maintains fiscal discipline, funds reserves at $383,749 annually, and has reduced mortgage debt over the past year while completing $349,552 in capital projects. The community is harmonious with zero member conflict and strong meeting attendance.

What requires attention:

The primary concern is reactive capital planning without professional forecasting, evidenced by a parking lot project that overran its budget by 68 percent and the absence of a reserve fund study. The 45-year-old property requires comprehensive engineering assessments to quantify the remaining capital exposure.