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Developer controls Florida HOA that awards inflated contracts


Question:

I live in Florida in a development that is about 55% built out and under the control of the developer.  Currently the developer controls the community and the HOA Board. The developer is awarding contracts for lawn care and management services at a very high cost when these services could have been warded at a much lower cost. The difference is over $300,000 more then it should have been. There was a bid process performed with four contractors submitting their bids to the same requirements requested. Three bids came back almost around the same amount and one was over twice as much. The HOA Developer Board selected the one that submitted the highest bid by at least or more then twice as much. When the developer board question they said they have a right to pick who ever they want. All contractors had all the same requirements that they submitted their bids on. They all would had have to perform the same requirements.

Is there a law or statute in Florida that the HOA board would have to follow regarding this situation. This cost the homeowners over $300,000 more for the same services that we could have received from all the other contractors including the contractor that is performing the work currently. The management company they hire cost twice as much with also the same requirements, with the bids coming in less then 50% then what the Developer HOA Board awarded. We asked them and they again say they are within the right to award these contracts to who ever they want to. There must be some law or statute in Florida that controls this kind situation.


Answers (6)

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