Contracts for products and services

Common Elements summary — Section 720.3055 is the HOA procurement disclosure statute. Any contract for goods, services, or insurance that the association proposes to enter with a person or entity related to a board member (spouse, parent, child, sibling, business affiliate) must be disclosed to all members in writing before the contract is signed, and the contract must be approved by two-thirds of all voting interests if the value exceeds 10% of the association's annual budget. The section also requires competitive bids for any contract for materials, equipment, or services in excess of 10% of the annual budget (some smaller associations are exempt under a $1 million budget floor). Bids must be open to all qualified vendors; sole-source contracts are permitted only for emergencies or where a single vendor can demonstrably provide the work. For boards: this is the affirmative-disclosure cousin of 617.0832 (conflicts of interest). The 720.3055 disclosure is in addition to, not in substitute for, the conflict-of-interest documentation. Run both checks on every contract over the budget threshold. The cost of a noticing email is trivial; the cost of unwinding a non-conforming insurance contract mid-policy is enormous.

Not legal advice. Click through to the official source for statutory text.