On June 7, 2022, about 1645 Pacific daylight time, a Czech Sport Aircraft SportCruiser, N565L, sustained substantial damage when it was involved in an accident in Hillsboro, Oregon. The pilot and passenger were not injured. The airplane was operated as a Title 14 Code of Federal Regulations Part 91 personal flight. The airplane had not been flown in about 6 weeks, and during that period, there had been multiple rain showers in the area. Also, due to an airshow that took place about 3 weeks before the accident, the airplane had been moved from its normal tie-down location on the ramp to a temporary grass-surfaced tie-down location. The pilot/owner stated that, after completing a normal preflight check, which included sumping both fuel tank drains and the gascolator, he taxied to the other side of the airport and shutdown the engine to pick up a passenger. After the passenger boarded, he restarted the engine and performed an engine run-up. Takeoff was normal, and after rotation the airplane accelerated in ground effect and began to climb. After reaching an altitude of between 100 to 200 ft above ground level, the engine’s tone changed before it lost all power. The pilot verified that the fuel pump was on, switched the fuel selector valve from the left to the right tank, and attempted an engine restart. The engine did not restart, and with insufficient altitude to operate the ballistic recovery parachute, he performed a forced landing straight ahead just beyond the departure end of the runway. The airplane struck a fence, which resulted in substantial damage to the center fuselage, both wings, and the vertical stabilizer. The airplane’s fuel system had a history of water contamination, such that at the last annual inspection, about 10 weeks before the accident, the gascolator, the carburetor bowls, and the left-wing fuel tank sump drain were replaced due to corrosion. The mechanic who performed the work stated that he was unable to determine the source of the water and presumed it was the result of a contaminated batch of fuel. Postaccident examination revealed that the left fuel tank contained about 6 ounces of water. The gascolator was half full of water, and the carburetor fuel bowls were about equally full of fuel and water. Although no fuel was observed in the gascolator, it had a faint smell of aviation gasoline. The fuel filler cap on the left tank was missing its O-ring seal. The mechanic who performed the annual inspection stated that the O-ring was there at the time of inspection, and the pilot reported that he did not recall the condition of the fuel filler cap O-rings. The left fuel tank was opened; its surface was flat, with no evidence of high or low spots that could have kept water away from the sump drain. The tank exhibited evidence of corrosion consistent with water contamination. When informed of these findings, the pilot reaffirmed that he sumped the drains before starting the engine.