JILLIAN SISKIND, B.A. J.D. LL.M.
Special to the Ontario Construction Report
Mercedes Mueller, J.D., co-author
Effective Feb. 1, 2021, the Home Construction Regulatory Authority (HCRA) was designated as the regulator responsible for the licensing and oversight of new home builders and vendors in Ontario (Licensees), as established by the New Home Construction Licensing Act (NHCLA). This function was previously carried out by Tarion Warranty Corporation (Tarion), and though it is no longer responsible for vendor/builder licensing, Tarion remains the statutory corporation responsible for the homeowner warranty protection scheme enacted by the Ontario New Home Warranties Plan Act (ONHWPA).
All builders and vendors of new homes in Ontario must be licensed with the HCRA, and all new homes must be enrolled in Tarion’s new home warranty and protection program. Tarion investigates new homeowner warranty claims, resolves warranty disputes between new homeowners and Licensees, and manages the Guarantee Fund.
As in any relationship, including professional ones between a Licensee and a new homeowner, disputes or conflicts may arise which could result in a complaint being filed by the homeowner against the Licensee.
HCRA complaints process
Complaints to the HCRA about a Licensee will generally be about compliance, conduct, competency, and/or financial responsibility. Homeowners can file a complaint about a Licensee with the HCRA at any time, and complaints will generally be accepted by the HCRA if the subject-matter is within its jurisdiction.
If the HCRA receives and accepts a complaint, it will then gather information to determine if any action is required. Licensees will be notified of the complaint, and will be required to provide a response, with documentary backup if applicable, to the HCRA as soon as reasonably possible. The HCRA will assess all relevant facts about the complaint and make a determination about what course of action, if any, is to be taken.
It is important for a Licensee to respond to a complaint expeditiously and diligently, as a failure to do so will result in a Licensee being deemed non-compliant. Additionally, a negative outcome of a complaint may have serious consequences, so getting ahead of the process is of utmost importance.
Potential outcomes of an HCRA complaint
The HCRA has a wide range of outcomes of a complaint. In some cases, no action will be taken, but the HCRA may also impose the following outcomes:
- Education – may require licensees take further education courses or pay for courses of any of their employees if it is found that the complaint resulted from a lack of knowledge or skill.
- Warning – may issue a written warning to the licensee that will remain on its file with the HCRA. Any warning letters on record will be taken into consideration in the event of future complaints.
- Conditions – may propose a condition on a licence.
- Non-renewal – licensees are required to renew their licences with the HCRA on an annual basis. A licensee’s complaint file will be taken into consideration at the time of renewal.
- Suspension – a licensee may have its licence suspended until further actions can be determined.
- Revocation – may revoke a licence.
- Lay charges – the HCRA is empowered to lay charges under the NHCLA, ONHWPA and/or the Provincial Offences Act (POA). A conviction for an offence under the NHCLA, ONHWPA, and POA may result in fines, imprisonment, an order to pay compensation and/or make restitution. These cases are heard in provincial Court.
- Refer a Matter to the Discipline Committee – may refer a matter to HCRA’s Discipline Committee if the HCRA receives a complaint about the conduct of a licensee and believes that the conduct may have violated the Code of Ethics.
- Administrative Penalty – may issue a financial penalty similar to a fine. Administrative Penalties can be appealed to the License Appeal Tribunal within 15 days of notification.
If you are the subject of a complaint or other regulatory action and have any questions or concerns, it is always advisable to reach out to legal counsel with expertise in Tarion and HCRA matters for assistance and guidance in navigating the process.