Florida Condo Communities Hit by Crisis.

Fort Lauderdale, FL -- A new survey of property owners in Florida's condominium, homeowner and other community associations shows rising mortgage foreclosures are causing revenue shortfalls that pose significant threats to operating and maintenance budgets and to the health and security of many communities.

This is according to the 2008 Florida Community Association Mortgage Foreclosure Survey, which was conducted online statewide from March 26-April 8 under the auspices of the Community Association Leadership Lobby.

The survey shows a direct correlation between rising mortgage foreclosures and corresponding decline in revenue from maintenance fees and other assessments in the state's condo and homeowner communities.

More than 60% of the nearly 500 survey respondents said that banks and mortgage lenders now holding title to the foreclosed units or homes are not meeting their legal obligation to pay regular fees or other assessments to the association. More than 40% reported mortgage-foreclosed units or homes in their communities have been vacant for more than six months, with one in five citing vacancies of more than one year. Respondents expressed concern about maintenance and security issues related to vacant units as the 2008 tropical storm season approaches.

Community Association Leadership Lobby co-executive directors David Muller and Yeline Goin, attorneys with the law firm Becker & Poliakoff, which established CALL in 2003, said the survey results are a sober reminder that individual mortgage foreclosures are having a negative ripple effect that can undermine the property values and available services in entire communities, particularly in Florida's common ownership residential condos, HOAs and other community associations.

"As a result of the mortgage foreclosure crisis, community associations statewide are now seeing the compounding effects of declining revenue collection and will likely have to balance association budgets through increased monthly fees and assessments for members, many of whom are already burdened with increased mortgage, insurance and property tax obligations," said Mr. Muller.

"As the 2008 storm season approaches, strains on many community association budgets from the downward-spiraling mortgage foreclosure crisis could leave many communities vulnerable and ill-prepared to cover storm damage costs and rising insurance rates in the coming months."