Board wants to take out loan for improvements

IsabellaW,
Yes the Board can borrow money to make improvements but only with consent of owners. I doubt they can mortgage your homes, that would require each owner to change their deed, but they can borrow money using Real Property as collateral I believe.
But, put that aside and look at your root problem. You feel someone is talking advantage of the sick and elderly, that is against the law, that is a criminal act. If you belive this and are concerned enough, rather than try to give you a whole bunch of complicated stuff to do, I suggest you walk into a police station and explain your concerns, now don't expect them to start arresting folks, but they will give you good advice, like visiting the local council of aging or whatever it is called there. States and cities are different names when it comes to offices but I bet the cops know.

Just because you live in a condo does not mean you have to feel threatened, you have to do what you agreed to do and live under the covenants and try to help the community. You don't need a whole gang of people from your association to get noticed by the board, 6 or eight people going to a board meeting together can make a lot of difference.

All that said, don't take any of this as the Law, it is my opinion, that's all. Also understand there comes a point in our lives, (I'm there) when most folks are younger than we are. Younger folks have to make their way like we did and they have different motivations. Their efforts to improve the property have to be considered and it takes money to do this and I understand you can't get blood from a turnip. I also understand that condos are not retirement homes even if they are full of old folks, they have to be vibrant, lively places where a good solid community is formed.
Your place may not be and maybe folks are not considering all or intimidating those that can't response, don't let this happen. You should feel justified in try to right a wrong, but you are going to need some help. Good luck and keep in touch.

Isabella,

The board can take out a loan for improvements, but check your documents for the exact requirements of them doing this. In most HOA's they will need a certain percentage of the homeowners votes. They can take the note against real property that the HOA owns and they can also pledge the maintenance fees as assets to the bank.

The improvements that they want, are they not allotted for in your reserve funds? If they are not in the reserves and they are not in the budget they will need a vote from the community for these improvements. Then, if approved by the majority of the community, they can take the note or vote for a special assessment to finance these projects.

How did they harass these people into getting their votes? What did the individuals sign that they were deceived?