These allow the co-op to plan for the future, based on current conditions, anticipated changes in relationships with government (e.g. operating agreement expiries) and debt obligations, and using reasonable assumptions about future costs (inflation and interest rates).

The AMP team will analyze a client’s situation and develop a recommended approach to looking after the co-op’s buildings and finances. We’ll examine in detail the co-op’s revenue (and housing charges), regular operating expenses (utilities, taxes, maintenance costs, etc.), existing debt and capacity to contribute to its reserve fund. We’ll develop a recommended scenario for the co-op based on its individual situation.

Sometimes the recommended scenario will include borrowing to supplement reserve contributions. This is a standard approach in business, but not all co-ops will need to take on new debt. The AMP team will look at borrowing as an option on a case-by-case basis, and, if recommended, will forecast when best to look at approaching a lender.

To maximize a co-op’s options, we attempt to ensure a co-op’s financial position will satisfy lenders and meet the requirements of co-op regulatory bodies.

As always the co-op makes the decisions on how to proceed, but with an AMP it can do so with the information it needs. Plans should be updated every three to five years and be adjusted annually.