A new Ontario regulator, providing protection for new home buyers, has launched in Ontario.
The Home Construction Regulatory Authority (HCRA) is now responsible for regulating and licensing the people and companies who build and sell new homes in the province.
“The HCRA will enforce high professional standards for competence and conduct in the homebuilding industry, giving new home buyers confidence in one of the biggest purchases of their lives,” says Tim Hadwen, interim CEO of the HCRA. “We will also ensure consistency across the sector, curtailing unethical and illegal builders and maintaining a fair marketplace.”
In addition to licensing, the HCRA provides educational information for consumers and manages the Ontario Builder Directory (OBD) – the official source of background information about each of Ontario’s more than 5,000 new home builders and vendors. It provides current information on each builder and vendor’s licence status and specifics such as whether they have had any convictions, the number of homes they have built and their warranty history. It also lists illegal builders and provides details about charges and convictions.
An independent regulator, the HCRA takes over the licensing function from Tarion. Previously, Tarion was responsible for both licensing and warranty administration. Tarion will continue to deliver Ontario’s new home warranty and protection program.
A separate licensing body was recommended by a major review of Ontario’s homebuilding sector.
“In essence, the HCRA will ensure professional standards for the builder, and Tarion will backstop responsibility for the building,” Hadwen says.
The Ontario Builder Directory provides a 10-year history for all registered builders, as well as those who are no longer registered to build homes. If a builder is not listed, it may be for many reasons including not passing the technical test based on the Ontario Building Code regulations, or not providing the financial securities mandated to build homes in Ontario. If they are not listed, they are building illegally, says the HCRA.
Complaints process
The HCRA says it has designed a clear, straightforward process for when a home buyer has concerns about a builder’s conduct. A step-by-step process outlined on the HCRA website includes the required forms, details of the information needed and explanations of what happens at each step.
If the matter at issue is not within HCRA jurisdiction, the HCRA will direct the consumer to the appropriate channels. The HCRA says it evaluates each complaint individually and, based on the specific circumstances and the law, will determine a course of action.
“It is the HCRA’s intention to deal with all complaints in a timely and thorough manner,” says the regulator.
Licensing
“The HCRA’s authority is focused on regulating the conduct of those required to be licensed as new home builders and vendors. This includes ensuring that all new home builders in Ontario act with honesty and integrity, have the right technical skills to build homes and the right financial capacity to run a homebuilding operation,” says the regulator. “Through the HCRA’s licensing process, a builder or vendor’s past and present conduct is assessed thoroughly before they are issued a licence to build homes.”
