The introduction and implementation of a new Code of Ethics is the highlight achievement of the first year of Ontario’s new Home Construction Regulatory Authority (HCRA), says its chief executive.
“Builders and vendors now have clear standards for their conduct, which the HCRA is actively enforcing,” said Chief Executive Officer and Registrar Wendy Moir in a news release promoting the one-year anniversary of the February 1, 2021 HCRA launch. Moir took the helm of the organization in April 2021. “There is no excuse for improper behaviour.”
The improper behaviour of builders, plus the reported reluctance of Tarion Warranty Company to police those builders led to the formation of the HCRA. While Tarion retains responsibilities for administering new home warranties, HCRA took over regulation of the builders. In an independent review by Justice Douglas Cunningham and subsequent reviews by Ontario’s Auditor General, Tarion was found to have inherent conflicts in its multiple responsibilites, including “industry capture” of its board of directors, ineffective regulations and enforcement, and senior management that was rewarded for profits, and thus incentivized to minimize payouts to homeowners.
A risk exists that some consumers may be confused about the differing responsibilities between the two organizations. In a recent interview for the Consumers Council of Canada Think Consumers publication, Moir described it as “HCRA ensures the high standards of the builder, and Tarion has that responsibility for the building.”
While warranty complaints are Tarion’s responsibility, Moir said consumers should contact HCRA when they believe builders fail to display required core competencies.
“If you think your builder is incompetent to build your home, or to fix your home, you might want to make a complaint about that. Getting your home fixed, however, is a Tarion responsibility,” Moir noted. “We’re not going to adjudicate warranty complaints.”
Other first-year highlights noted by HCRA included its first charges against builders for selling homes without a license, receiving more than 600 complaints, improving the Ontario Builder Director to make it easier to find key information about builders, completing its board of directors, establishing a three-year strategic plan and creating educational resources to new home purchasers, including expectations of builders and their conduct.