I don’t necessarily disagree with strata loans, although in general I am not keen on them, they may have a place in certain circumstances.
In terms of Why Borrow? You refer to it being an enabler, i.e. to allow the OC to do something it otherwise can’t do. The OC has an obligation under the Act to maintain the property, it doesn’t have a choice. One thing I like about requiring contributions to be made to the sinking fund is the psychological effect, many owners don’t realise or don’t want to realise that they have an obligation to maintain and upgrade as necessary, and make sure they have funds set aside for that purpose.