Proposed Regulations 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:
Ontario New Home Warranties Plan Act
Summary of Proposal:
The Ontario government is committed to overhauling Ontario's new home warranty and protection program. On February 20, 2019, the government announced plans to establish a separate regulator for new home builders and vendors. The Home Construction Regulatory Authority (HCRA) - incorporated in April 2018 as a not-for-profit corporation - is expected to begin regulating builders and vendors if designated under the New Home Construction Licensing Act, 2017 (NHCLA). Tarion Warranty Corporation (Tarion) will continue to administer the warranties and protections for new homes in Ontario under the Ontario New Homes Warranties Plan Act (ONHWPA). These changes are expected to take place on February 1, 2021, at which time the HCRA would begin its regulatory operations.
In order to provide a successful transition and improve upon existing operations, the Ministry of Government and Consumer Services is proposing the following changes to the ONHWPA regulations:
Information sharing requirements between Tarion, the proposed new regulatory authority under NHCLA, and the Minister of Government and Consumer Services
Regulations to support the warranty and protections program
Indemnification requirements for builders and vendors
Transition matters
In addition, the ministry is seeking input to support the creation of a future regulation clarifying the information that claimants are required to provide to Tarion for warranty claims.
The Ministry of Government and Consumer Services welcomes your feedback and encourages anyone interested to provide comments on this proposal. You may submit your comments through the Regulatory Registry or through the survey link under "Further information".
Consultations are also underway on other regulations under ONHWPA and NHCLA that relate to this proposal. See below for links to these under "Further information".
In order to provide a successful transition and improve upon existing operations, the Ministry of Government and Consumer Services is proposing the following changes to the ONHWPA regulations:
Information sharing requirements between Tarion, the proposed new regulatory authority under NHCLA, and the Minister of Government and Consumer Services
Regulations to support the warranty and protections program
Indemnification requirements for builders and vendors
Transition matters
In addition, the ministry is seeking input to support the creation of a future regulation clarifying the information that claimants are required to provide to Tarion for warranty claims.
The Ministry of Government and Consumer Services welcomes your feedback and encourages anyone interested to provide comments on this proposal. You may submit your comments through the Regulatory Registry or through the survey link under "Further information".
Consultations are also underway on other regulations under ONHWPA and NHCLA that relate to this proposal. See below for links to these under "Further information".
Analysis of Regulatory Impact:
To better understand any administrative costs to business associated with the proposed changes, the ministry is seeking stakeholder input to the Consultation Survey.
Changes are being proposed to the indemnification requirements that may create new compliance costs for builders and vendors of new homes that are not licensed by HCRA. The New Home Construction Licensing Act, 2017 requires that builders and vendors of new homes be licensed.
The proposed regulations would require all builders and vendors of new homes, including those not licensed under the New Home Construction Licensing Act, 2017, to indemnify Tarion for costs in relation to payouts from the guarantee fund. There would be no new costs for licensed builders or vendors that build or sell homes legally.
Changes are being proposed to the indemnification requirements that may create new compliance costs for builders and vendors of new homes that are not licensed by HCRA. The New Home Construction Licensing Act, 2017 requires that builders and vendors of new homes be licensed.
The proposed regulations would require all builders and vendors of new homes, including those not licensed under the New Home Construction Licensing Act, 2017, to indemnify Tarion for costs in relation to payouts from the guarantee fund. There would be no new costs for licensed builders or vendors that build or sell homes legally.
Further Information:
Draft regulation to be made under the Ontario New Home Warranties Plan Act (Download Adobe Reader) Plain Language Summary Guide - ONHWPA (Download Adobe Reader)
Survey Questions About Proposed RegulationsSurvey About Consultation ExperienceNew Home Construction Licensing Act, 2017 Regulatory Registry PostingTarion By-law Regulatory Registry PostingProposal Number:
20-MGCS018
Posting Date:
September 18, 2020
Comments Due Date:
October 19, 2020
Contact Address:
56 Wellesley St. W., 6th Floor, Toronto ON, M7A 1C1
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