A newly enacted regulation may impose administrative penalties on Ontario homebuilders or vendors who breach their legal and ethical obligations. Similar to a fine, the new enforcement tool expands upon the Home Construction Regulatory Authority’s (HCRA) existing strategies to crack down on bad behaviour, including revoking and imposing conditions on a licence.

The recent legislative and regulatory changes to the New Home Construction Licensing Act, 2017 (NHCLA) include allowing the HCRA to use the proceeds of administrative penalties to provide funds to negatively impacted consumers, depending on the circumstances. The HCRA may consider whether a licensee benefitted financially from breaking the law and, if so, an additional penalty may be applied reflecting the amount of the benefit, which could be passed on to the impacted consumers.

“Adding financial penalties to the HCRA’s regulatory tool belt will enhance consumer protection and in some cases, provide funds to consumers who have been negatively impacted by a builder’s or vendor’s conduct,” says Wendy Moir, the HCRA’s CEO and Registrar.

Penalties can also be imposed on people or companies who operate without a licence. “These penalties – up to $50,000 per occurrence, depending on the contravention – are a first for the industry and will support an enhanced, fair and safe marketplace,” Moir explained. “They will support the HCRA in quickly taking action against illegal and unethical behaviour, both protecting consumers and ensuring a level playing field in the industry.”