Proposed Changes to HCRA Licensing and Regulatory Oversight Fees 

Summary of Proposal

The Home Construction Regulatory Authority (HCRA) is proposing increases to its Licensing and Regulatory Oversight Fees. The HCRA is responsible for licensing and regulating new home builders and sellers in Ontario. The HCRA is not government funded, but rather receives its funding primarily through fees, such as new licence applications, renewals, and per unit regulatory oversight fees. 

The revenue from these fees directly supports the HCRA’s operations, including licensing, compliance, and enforcement activities that protect consumers and uphold high standards in the new home building industry in Ontario. 

Since becoming operational in 2021, the HCRA has absorbed inflationary and operating costs. The proposed updates account for inflationary increases and will support the HCRA’s ability to remain financially stable, deliver effective regulatory oversight, uphold consumer protection, and maintain service standards for licensees and consumers.  

Proposed Fee Changes

Fee Category	Current Fee	Proposed Fee
New Standalone Licence Fee: For applications with no prior licensing history (Non-Umbrella)	$3,000	$3,525
New Licence Fee: For a licence tied to related companies (Umbrella)	$750	$880
Renewal*	$500	$715
Fast-Track Renewal*	$300	$430
Late Fee (in addition to Renewal fee)	$600	$705
HCRA Regulatory Oversight Fee (per unit)	$145	$170

*Fees have not been increased since 2009.

Submit Your Feedback

The HCRA welcomes feedback on the proposed changes to HCRA’s Licensing Fees. The HCRA will consider all feedback as part of the decision-making process, whether it is reflected in the final outcome. Please share your thoughts by completing the feedback form below by 5:00 p.m. on June 20, 2025.

Rationale for Fee Increases 

When the HCRA was established in 2021 by the Government on Ontario, it committed to maintaining its fees at the established rates for a three-year period. These fees have not been increased since then, and in the case of Renewal fees, have not been increased since 2009. 

Since becoming operational in 2021, the HCRA has absorbed rising operating expenses, including government oversight fees and general costs, while working to meet the sector’s growing needs. To address continued inflationary pressures, the HCRA is now looking to adjust its licensing fees.  

Like all administrative authorities, the HCRA is required to operate on a cost-recovery basis. While annual surpluses in the first three years of operation allowed the HCRA to build a reserve fund, a decline in revenue from the regulatory oversight fee – due to reduced enrolments of new homes upon which the fee is based – combined with inflation and rising operating costs, has affected the HCRA’s financial position. The HCRA now anticipates deficit budgets into 2027-28. Without an increase in revenue, the HCRA’s reserve fund is expected to be depleted within one to two years. 

Analysis of Impact

The HCRA currently collects a $145 Regulatory Oversight Fee for every new home enrolled in the Ontario New Home Warranty Program, administered by Tarion. Based on declining enrolments, the HCRA has reduced its revenue projections for 2025-26 and beyond.  

Per Unit Revenue Revised Projections ($) (FY 2026 to FY 2028)

Surplus / (Deficit) – FY 2021 – FY 2028

Reserve Fund (In$) – FY 2021-22 to FY 2027-28

Due to a decrease in revenue, the HCRA experienced a deficit for the first time in 2023-24, with additional deficits projected over the coming years. The proposed fee increases are necessary to support the HCRA’s continued ability to fulfill its mandate – protecting consumers and supporting good builders through the licensing and oversight of new home builders and sellers in Ontario. 

The HCRA will review all feedback and present a final recommendation to the HCRA’s Board of Directors in June 2025. Any resulting changes will be communicated to licensees and stakeholders in June 2025 and will take effect on September 1, 2025.