Regulatory proposal under the Ontario New Home Warranties Plan Act
Bill or Act:
Ontario New Home Warranty Plan Act; Building Code Act
Summary of Proposal:
The Protecting Condominium Owners Act, 2015 (PCOA), amended the Ontario New Homes Warranties Plan Act (ONHWPA) to extend most new home warranty plan coverage to certain residential condominium conversion projects (RCCPs). RCCPs are projects that incorporate into the construction pre-existing elements, such as the façade of a church or school, or the entire frame and building envelope of an office building. The PCOA also made related amendments to the Condominium Act, 1998 and the Building Code Act, 1992. The amendments made under the PCOA are not yet in force.
The government and Tarion Warranty Corporation (Tarion) anticipate that warranty coverage for residential condominium conversion projects will begin January 2018.
Implementing these changes requires Tarion, which administers the warranty coverage, to develop by-laws which are deemed to be regulations under ONHWPA. The regulations would set out specific requirements that apply to RCCPs in order for them to be covered by ONHWPA warranties. Tarion recently posted proposed by-law/regulations for public comment.
The Ministry of Government and Consumer Services is proposing a regulation under ONHWPA to support the implementation of these changes. The proposed regulation would prescribe:
• How the initial period is determined, which is the period of time when forecasted repairs to the pre-existing elements of an RCCP are expected to take place.
• How the money in a pre-existing elements fund must be held.
In addition, the government is proposing a related change to Ontario Regulation 332/12 (Building Code) made under the Building Code Act, 1992 to amend the list of "applicable law" prescribed under this act in relation to building permits for RCCPs.
A more detailed description of the proposal is included in the link titled "Plain Language Summary of Proposal" under "Further Information".
The ministry welcomes feedback and encourages anyone interested to provide comments on the proposal.
Please provide your feedback on the quality of the regulatory registry posting by completing our survey in the link below titled "Survey about Condo Conversion Regulatory Registry Consultation".
August 11, 2017
Comments Due Date:
September 25, 2017
56 Wellesley St. W, 6th Floor, Toronto ON, M7A 1C1