Legislative auditors to review Cape Coral's building department amid industry complaints

The Joint Legislative Auditing Committee voted to direct the Auditor General to perform an operational and financial audit of Cape Coral's building department after lawmakers and industry representatives described concerns over use of the building fund and permitting operations.

Representative Gilles Lombardo said the Cape Coral Construction Industry Association documented transfers from the building fund that rose from about $572,000 in 2014 to a projected $3,000,000 in fiscal year 2026 and alleged transfers and spending that may not align with Florida statute 553.380, which limits how building permit revenues may be used. Lombardo also cited hundreds of pages of complaints from contractors and engineers alleging arbitrary rejections, inconsistent valuations, and permitting-system failures.

Brian Gomer, speaking for the Cape Coral Construction Industry Association, said levels of service have declined and that funds appear diverted to non-building-code functions. Lisa Miller, representing private providers, described how inspection delays increase insurance claim costs and summarized how other jurisdictions discount permit fees for private-provider inspections under statute 553.791; she urged auditors to review fee and private-provider practices.

A committee member moved that the Auditor General perform an operational audit of Cape Coral's building department and allow the Auditor General to finalize scope while considering the concerns raised. The motion passed unanimously on roll call (recorded 10'0). The audit will examine compliance with statutes governing the building fund, transfers, procurement of private review firms, and permitting operations.