As coastal development increases so too does the number of artificial floating and permanent structures. It has been postulated that because of their size, many houseboats are similar to permanent structures in that they shade a significant portion of the benthos and thereby limit production by benthic flora. On the other hand, these structures can benefit biotic communities by providing sites for attachment of organisms in a substrate-limited environment and both habitat and food sources for fish. In this study, we examined whether houseboats benefit or harm the ecological integrity of a typical seagrass dominated system, at La Parguera, Puerto Rico. We performed a benthic survey to compare the diversity and health of seagrasses under houseboats to that at control locations. Species diversity (0-0.79) varied significantly among sites, but this variability was not attributed to the houseboats. Rather, the variability appeared related to the proximity of the study locations to new development along the shoreline. Average seagrass blade density and length were 52.7 blades/m(-2) and 23.6 cm, respectively. Neither parameter differed between houseboat and control areas; however, both varied significantly among sites. In addition, boat hulls were heavily encrusted with invertebrates. The overall averages of species diversity and richness of sessile organisms on hulls of the houseboats were 1.13 and 4.83, respectively. Fish also utilized these structures. Our results indicate that houseboats did not directly harm the seagrass communities at La Parguera primarily because of sound environmental management of wastes and mooring techniques.