Proposed Regulations Under the New Home Construction Licensing Act, 2017, to Support the Overhaul of Ontario's New Home Warranty and Protection Program
Regulation Number(s):
N/A
Instrument Type:
Regulation - LGIC
Bill or Act:
New Home Construction Licensing Act, 2017
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
Transition
2.Regulation of Licensees
The regulatory aspects of the proposed regulation address:
Complaints
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.
The ministry welcomes your feedback and encourages anyone interested to provide comments on this proposal. You may submit your comments to the Regulatory Registry.
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
Transition
2.Regulation of Licensees
The regulatory aspects of the proposed regulation address:
Complaints
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.
The ministry welcomes your feedback and encourages anyone interested to provide comments on this proposal. You may submit your comments to the Regulatory Registry.
Analysis of Regulatory Impact:
As part of the proposed regulations to be made under the New Home Construction Licensing Act, 2017, the government intends to designate a new regulatory authority that will have the authority to set and charge licensing and other fees to be paid by new home builders and vendors in Ontario. Currently, new home builders and vendors pay registration fees to Tarion Warranty Corporation. Once the new regulatory authority is designated, new home builders and vendors will no longer pay registration fees to Tarion, but would pay licensing fees to the new regulator.
Further Information:
Proposed Regulations to Support the Overhaul of Ontario's New Home Warranty and Protection Program
Draft Regulations to be made under the New Home Construction Licensing Act, 2017
Plain Language Summary Guide (NHCLA) (Download Adobe Reader)Regulatory Registry Survey for RegulationsRegulatory Registry Survey for PPOD KPIsConsultation on Topics Related to Future Changes to TarionProposal Number:
20-MGCS019
Posting Date:
September 18, 2020
Comments Due Date:
October 19, 2020
Contact Address:
Ministry of Government and Consumer Services, 56 Wellesley St. W., 6th Floor, Toronto ON, M7A 1C1
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