Condo Assoc. Regularly Operating at a Loss?

[John Lynagh]

Hi BP community,

I'm finally purchasing my first property (to start house hacking). I'm trying to do my due diligence in examining the Condo Association's finances and would greatly appreciate your take on my situation.

For the 3 years for which I have Budget data, the Condo Assoc. has been, or is projected to be, over budget (an Operating Fund Deficit) of 6% (2016), 0.5% (2019), and 1.2% (2020). Each of those years, ~ 35% of income is allocated towards funding the Reserve Fund. 

For the 2 years (2016 & 2019) of Balance Sheet data that I have, the Reserve Fund was used to pay off large net losses (I'm assuming capital expenditures?) from the previous year, if that even makes sense. The Reserve Fund currently stands at a little over 1 months worth of expenses. 

To try and preemptively answer some questions from the community, I haven't been given any record of capital expenditures/special assessments and the Useful Life study I have is from 2006, but I've asked for a more recent one.

Thank you so much for any advice, experience, etc. that you can offer. Please let me know if more/other info is needed or if there is a better source to go to for this question.

-John