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Cape Coral Building Division faces state audit over alleged financial violations

State lawmakers approve operational audit after construction industry alleges improper use of permit fees.
Cape Coral
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CAPE CORAL, Fla. — The Cape Coral Building Division is facing scrutiny from state lawmakers after an operational audit was approved following allegations of financial misconduct and discriminatory practices.

Cape Coral Building Division under fire - what this means for local construction and your tax dollars.

State Representative Mike Giallombardo spoke before the Joint Legislative Auditing Committee on Monday, requesting the audit after being contacted by the Cape Coral Construction Industry Association.

The association alleges the building department is improperly using money collected from building permits to cover other municipal expenses, which they argue violates state law.

"We're seeing a pattern of discriminatory enforcement, inconsistent evaluations, operational disfunction and financial practices that undermine the intent of Florida law," Giallombardo said.

The Cape Coral Construction Industry Association first brought these concerns to Giallombardo's attention, prompting him to seek the state-level investigation.

In response to the audit approval, Cape Coral provided a 2024 audit of the building department.

A city spokesperson said in a statement that "All recommendations from that audit have been addressed and the report is officially closed. We will fully cooperate with this new review."

The state audit will examine the building department's operations, enforcement practices, and financial management to determine if any violations of state law have occurred.

This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.

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