Article Courtesy of The Miami
Herald
By Monica Hatcher
Published April 18, 2009
The
cash shortage plaguing South Florida's foreclosure-ridden condominiums
reached a crisis at the Mirassou Condominium in Northwest Miami-Dade after
the county shut off water to residents because the association failed to
pay its water bill.
Miami-Dade
Water and Sewer Department said Thursday that it turned off the water to
the 310-unit building after the condo association failed to abide by three
separate repayment plans over the last nine months. The association has an
outstanding balance of $109,000, the department said.
"We've
bent over backward to try to help them out,'' said Frank Calderon, a
spokesman for the department. "It's not fair to other rate-payers
when somebody owes that kind of amount. They end up footing the bill.''
As
budget problems continue to worsen for many South Florida condo
associations, the Mirassou's fate underscores the severe consequences
communities face when too many unit owners enter foreclosure and stop
paying association fees. Those fees, charged to all unit owners, pay
for common expenses on everything from pest control to property insurance,
water, pool service and garbage collection.
At
the Mirassou, roughly a third of the units are bank-owned or in
foreclosure. Calderon said the county finally turned off the water as a
last resort on Tuesday, but residents allegedly tampered with the meter to
keep it running illegally another day. County employees visiting the
property at 6175 NW 186th St. discovered the vandalism Wednesday and
removed the meters.
Meanwhile,
the county dispatched a team from the health department to instruct
residents about maintaining healthy practices, including how to get by
with unflushable toilets.
Edward
Acle, a Miami attorney who is assisting the condo's management company in
resolving the matter, said employees from the company as well as unit
owners met with Miami-Dade County Commissioner Barbara Jordan Thursday to
see what could be done. The Mirassou is in her district.
"People
have been talking about the day when this would come and that day is
here,'' Acle said, referring to predictions that condos would face serious
operational issues because of high foreclosure rates. "South Florida
is the point of the spear in this crisis.''
Calderon
said this was the first time in recent memory the county had to shut the
water off to a complex as large as Mirassou. The water department said it
is still willing to work with the association, which earlier this month
bounced a check for $42,335.50.
While
the association was able to come up with $16,000 Thursday, Calderon said
it needed to make a minimum payment of $31,626 to get water restored.
"This
is a terrible situation,'' said Jordan.
Meanwhile,
Mirassou residents are forced to buy drinking water and shower at the
homes of friends and family. Among them was Hermogenes Abad, 30, who
bought a unit there two years ago. He said he was current on his home loan
and ahead on his association fees.
"I
honestly don't see how they can just cut the water on people who are
making payments,'' Abad said.
Abad
said he was confident the issue would be resolved, but if not, he would
have no choice but to find a way out of his mortgage, since the county
building department won't allow residents to occupy a building without
water. "I'm going to have to try to get letters together from people
saying this building is uninhabitable,'' he said.
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