Phase 1 Regulations (Support the Overhaul of Ontario's New Home Warranty and Protection Program), New Home Construction Licensing Act, 2017
O. Reg. 631/20
O. Reg. 630/20
O. Reg. 629/20
O. Reg. 628/20
O. Reg. 626/20
O. Reg. 625/20
O. Reg. 624/20
Regulation - Minister
Bill or Act:
New Home Construction Licensing Act, 2017
Summary of Decision:
The Ontario government took steps to strengthen consumer protection by transforming Tarion and the Ontario new home warranty and protection program and designating the Home Construction Regulatory Authority (HCRA) as the new regulator of new home builders and vendors. The HCRA will provide more effective regulation of builders and vendors of new homes and increased protection for consumers.
New regulations have been made under the New Home Construction Licensing Act, 2017 (NHCLA). Regulations will support the overhaul of Tarion, the launch of the HCRA and the implementation of changes made to NHCLA by the Rebuilding Consumer Confidence Act, 2020. The changes, including the new regulations, came into effect February 1, 2021.
Analysis of Regulatory Impact:
As part of the regulations made under the New Home Construction Licensing Act, 2017, the government designated a new regulatory authority that has the authority to set and charge the applicable licensing fees, costs or and other charges to be paid by new home builders and vendors in Ontario.
September 18, 2020
Summary of Proposal:
The government is committed to overhauling Ontario's new home warranty and protection program. On February 20, 2019, the Government of Ontario announced plans to establish a separate regulator for new home builders and vendors. In April 2018, the Home Construction Regulatory Authority (HCRA) was incorporated as a not-for-profit corporation. HCRA is expected to regulate builders and vendors of new homes if it is designated as the regulatory authority under the New Home Construction Licensing Act, 2017 (NHCLA). Tarion will continue to be the warranties and protections administrator for new homes in Ontario under the Ontario New Homes Warranties Plan Act. If passed, these changes are expected to take effect on February 1, 2021, at which time HCRA would begin its regulatory operations.
The proposed regulations under NHCLA would provide the minimum framework for HCRA to function as the regulator of builders and vendors of new homes.
1. Licensing & Transition
The licensing and transition aspects of the proposed General Regulation address:
Licence and renewal applications
Classes of licenses
Conditions of licence
2. Regulation of Licensees
The regulatory aspects of the proposed regulation address:
Orders and offences
3. Administrative Authority Operations
The remaining aspects of the proposed regulation address:
The designation of a regulatory authority under NHCLA
Information-sharing between the regulatory authority, the warranty authority and the Minister of Government and Consumer Services
Compensation disclosure protocols for directors and officers of the regulatory authority.
Ministry of Government and Consumer Services, 56 Wellesley St. W., 6th Floor, Toronto ON, M7A 1C1
February 1, 2021