310-Unit Condo Conversion Complex Struggles To Stay Afloat; Considers Using "Blanket Receivership" To Grab Rents Away From Deadbeat Owner/Landlords

In Miami, Florida, The Miami Herald reports:

• Dealing with an ongoing crisis, the company that manages cash-strapped Mirassou Condominium wants to start a blanket receivership system to collect association fees from deadbeat owners.(1)(2) [...] As budgets continue to worsen in South Florida condo associations, Mirassou's situation underscores the consequences communities are facing when unit owners enter foreclosure and discontinue paying association fees. Those fees normally cover flood and hazard insurance, maintenance, utilities and garbage collection.

• By law, South Florida condominiums are required to have master hazard and flood insurance, which covers common areas and the exterior of the buildings. But Mirassou doesn't have any. The hazard insurance expired six months ago and the flood insurance expired in July, residents are saying. [...] When a community association has no insurance, owners cannot sell or rent their property.

For more, see Mirassou Condo seeks new system to collect owners' fees (A troubled Northwest Miami-Dade condo development seeks a new strategy to collect payments from delinquent owners).

In a related story, see The Miami Herald: South Florida condo conversions collapse.

Go here for other posts on the problems plaguing the Mirasou condo conversion complex.

(1) According to the story, if the court approves and appoints blanket receivership at Mirassou, a third party or "receiver'' could ask tenants for their rent, and leave the deadbeat landlord out of the equation, [attorney Angelica] Young said. The receiver would file a report with the court every quarter. Florida's Third District Court of Appeal reportedly ruled in favor of this strategy last month to help community associations collect rents and fees from delinquent owners. At least 18 condo associations in Miami-Dade and Broward counties use blanket receivership, the story states.

(2) Reportedly, out of the 310 units in Mirassou, 172 are in foreclosure.