Sharing Quotes & Proposals ca. Executed Contracts with Homeowners in FL

Started by PatriciaS27 • 10 replies • 994 views

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PatriciaS27 (Florida)
Posts: 2

Posted:

Hi everyone… NEW here…

I understand that the HOA Board of Directors is required to make available copies of all executed contracts when and if a homeowner requests to see it.

However, by law in FL does the BOD need to share quotes and proposals with homeowners prior to the Board of Directors, selecting a vendor and voting on which vendor to go with?? Ours is a subdivision HOA not Condo!

Thank you!

SheliaH (Indiana)
Posts: 6,964

Posted:

I don't think there is such a law and besides, you don't need to see quotes from other contractors if you didn't hire them. Some of that information is proprietary and the association could get in trouble if they shared that information with everyone else. It could also make it very difficult to find a contractor if the word got out that your community shares bids with everyone. You might not abuse the information, but there's no guarantee someone else wouldn't.

It's okay to look at the request for proposal (RFP) because all the vendors should have received the same thing. From there, the board looks at all the proposals and makes a decision - that's why it exists and why you voted for them. If you think there's something wrong with how the RFP was written or feel a certain company didn't get a chance to bid on the work, you can always offer to help write the next RFP or suggest a company be contacted to submit a bid - whether they do it or not is up to them.

PS, there are several conversations on this website where Florida posters have listed the state statute - if you don't see it, go to your state legislature website. There's usually a link to current state statutes and you can search for HOA laws that way. Or simply Google it and lots of stuff will come up - just make sure you're looking at 2023 information because laws do get amended or added.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Quote:

Posted By SheliaH on 11/14/2023 12:45 PM
I don't think there is such a law and besides, you don't need to see quotes from other contractors if you didn't hire them. Some of that information is proprietary and the association could get in trouble if they shared that information with everyone else. It could also make it very difficult to find a contractor if the word got out that your community shares bids with everyone. You might not abuse the information, but there's no guarantee someone else wouldn't.

It's okay to look at the request for proposal (RFP) because all the vendors should have received the same thing. From there, the board looks at all the proposals and makes a decision - that's why it exists and why you voted for them. If you think there's something wrong with how the RFP was written or feel a certain company didn't get a chance to bid on the work, you can always offer to help write the next RFP or suggest a company be contacted to submit a bid - whether they do it or not is up to them.

PS, there are several conversations on this website where Florida posters have listed the state statute - if you don't see it, go to your state legislature website. There's usually a link to current state statutes and you can search for HOA laws that way. Or simply Google it and lots of stuff will come up - just make sure you're looking at 2023 information because laws do get amended or added.

Good post.

KerryL1 (California)
Posts: 14,550

Posted:

As Shelia notes, you need to know FL statutes on this point. It is possible that your covenants or Bylaws might list official records of the HOA that Owners may review.

In CA, owners may not review bids, proposals. Certainly not before the Board makes a decision and not after in CA Ower access to the HOA's official records only include executed contracts.

I suspect FL is the same. Perhaps JohnC can tell us what the statute is in SC.

DouglasK1 (Florida)
Posts: 2,046

Posted:

There are posts above where posters seem to give their opinion about what owners can see, but none cite any authority for those feelings.

FS 720 governs HOAs, 720.303 includes the verbiage about availability of records. Technically, the association does not need to "provide" any records, but must make them available for inspection and copying. See paragraph 5 (INSPECTION AND COPYING OF RECORDS) at this site:
http://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&Search_String=&URL=0700-0799/0720/Sections/0720.303.html

Here's the initial sentence:
The official records shall be maintained within the state for at least 7 years and shall be made available to a parcel owner for inspection or photocopying within 45 miles of the community or within the county in which the association is located within 10 business days after receipt by the board or its designee of a written request

There are a some exceptions listed in 720.303 paragraph 5c, none of them say anything about quotes or proposals. If you assume quotes and proposals are "official records" of the association, it would appear to me that the association is required to allow inspection and copying of same.

Unfortunately, it is not uncommon for associations to ignore the law or interpret it differently. One option in this case would be to contact the Department of Business and Professional Regulation, they are tasked with providing some level of oversight of HOAs. Whether they will respond or act, I have no idea. Another option is to contact a lawyer, have them send a nastygram with a lot of legalese and hope the association complies. Barring that you are probably looking at suing to force any action. That tends to be slow, expensive, and the outcome is hard to predict in advance.

Escaped former treasurer and director of a self managed association.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

The only thing that should be shared is the final BOD signed contract.

PatriciaS27 (Florida)
Posts: 2

Posted:

Hi - I should clarify - I am the President of our HOA
Our assessment for next year is practically doubling. However, the reason for that is because our road reserves have not been funded properly over the years… so now I have a handful of homeowners that want to see our proposals for the roads, for landscaping…
we have never over the past 30 years (since our HOA has been around) shared proposals only official documents, such as executed contracts with homeowners.

I have reached out to our attorney to find out what the Florida statutes are, as well as what our associations definition is of official documents! I will definitely post here as soon as I find out the answer and thank you everyone for your feedback

JohnC46 (South Carolina)
Posts: 14,265

Posted:

In SC we do not have to share quotes and/or bids. We do have to share any signed contract.

LoriM15 (Florida)
Posts: 1,009

Posted:

I'm glad you are reaching out to your attorney for advice. They will give you better information than you can get here. The statute is all over the place and it's not easy to find all the parts.

This is from FS 720.303
(4) OFFICIAL RECORDS.—The association shall maintain each of the following items, when applicable, which constitute the official records of the association:

(i) A current copy of all contracts to which the association is a party, including, without limitation, any management agreement, lease, or other contract under which the association has any obligation or responsibility. Bids received by the association for work to be performed must also be considered official records and must be kept for a period of 1 year.

This might also be helpful:
720.3055 Contracts for products and services; in writing; bids; exceptions.—
(1) All contracts as further described in this section or any contract that is not to be fully performed within 1 year after the making thereof for the purchase, lease, or renting of materials or equipment to be used by the association in accomplishing its purposes under this chapter or the governing documents, and all contracts for the provision of services, shall be in writing. If a contract for the purchase, lease, or renting of materials or equipment, or for the provision of services, requires payment by the association that exceeds 10 percent of the total annual budget of the association, including reserves, the association must obtain competitive bids for the materials, equipment, or services. Nothing contained in this section shall be construed to require the association to accept the lowest bid.

I understand your situation. We have also just entered into an agreement to have our roads done. It is incredibly expensive. Luckily, we did have enough reserves to pay for it, although we are only doing a section at a time over the next three years.

You probably have owners who think that you did not negotiate the best price or you didn't get enough bids or somehow you are wasting money. That happens with large expenditures. But nothing should have been done in secret or people get more suspicious. There shouldn't be any reason not to share the contract.

KellyM3 (North Carolina)
Posts: 2,239

Posted:

Quote:

Posted By PatriciaS27 on 11/15/2023 5:13 AM
Hi - I should clarify - I am the President of our HOA
Our assessment for next year is practically doubling. However, the reason for that is because our road reserves have not been funded properly over the years… so now I have a handful of homeowners that want to see our proposals for the roads, for landscaping…
we have never over the past 30 years (since our HOA has been around) shared proposals only official documents, such as executed contracts with homeowners.

I have reached out to our attorney to find out what the Florida statutes are, as well as what our associations definition is of official documents! I will definitely post here as soon as I find out the answer and thank you everyone for your feedback

If your monthly dues are doubling, your dues payers are making a very reasonable request to know your plans with the new revenue other than verbal reassurance. That said, you have the RFP - share it. You should open bids in an open meeting to compare prices - that's transparent. Once approved, the contract should be reviewable.

I think you're in pretty good shape given the surprising circumstances of needing the double monthly dues. I understand the situation. My community could stand to raise dues by 67% - a precise number for precise capital improvement reasons.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Quote:

What the owners are saying is show us road repair estimates. A fair ask.

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