Recording of the Home Construction Regulatory Authority’s (HCRA) Annual Meeting – September 11, 2025

In addition to the questions answered live during the meeting, the HCRA also provided written responses to questions submitted by attendees. A summary of the general questions and responses is available below.

General Questions & Answers  

1. When a homeowner submits a complaint, why are they not permitted to see the response from the builder?  
 
When a homeowner files a complaint, the HCRA gathers information from both the complainant and the builder. Each complaint is unique, and we follow up with the complainant or the builder if more details are needed to support a fair and thorough process. 

2. What is the HCRA doing to stop illegal building?  
 
Illegal building is a major consumer protection issue in Ontario and a top priority for the HCRA. When builders and sellers operate without a licence, it puts the public at risk and creates an uneven playing field for the industry. 

Consumers affected by illegal building do not receive the protections that come from working with licensed builders who are held to professional standards. As the regulator, the HCRA has the authority to take strong enforcement action against individuals and companies involved in illegal building, illegal selling, or failing to enrol a home in Ontario’s new home warranty program. 
 
To combat illegal activity and bring unlicensed builders into compliance, the HCRA has expanded its Investigations team and actively uses a range of regulatory tools. These include laying charges against individuals and companies for illegal building and selling, with escalating penalties for repeat offenders. The HCRA also issues administrative penalties, similar to fines, and has returned funds to harmed purchasers. 
 
In addition, the HCRA has developed enforcement approaches that encourage voluntary compliance. This has successfully prompted numerous illegal builders to apply for an HCRA licence and enrol their projects with Tarion. Combating illegal building is a collective effort, and the HCRA collaborates closely with key stakeholders — including municipalities, building officials, real estate professionals, and other regulatory bodies — to curb this activity.

3. Does the HCRA report illegal activities to other authorities and professional associations, such as the Law Society of Ontario (LSO) and the Real Estate Council of Ontario (RECO)? 
 
Yes, the HCRA has worked—and will continue to work—closely with other regulators and professional associations, including the LSO and RECO, by sharing information about individuals they regulate who may have engaged in professional misconduct, including realtors, to help protect homebuyers.  

In addition, the HCRA supports broader public and professional education initiatives and proactively hosts educational sessions for professionals working in the homebuilding and new homebuying sector, including real estate professions, lawyers, building officials, and home inspectors.

4. Is the HCRA working to ensure that building permits are only issued by the municipality to licensed builders? 
 
The HCRA supports enhanced transparency and integration between licensing and permitting processes to strengthen oversight and reduce illegal building. However, this would require legislative changes by the government and policy coordination across multiple ministries, including the Ministry of Municipal Affairs and Housing (MMAH), and the Ministry of Public and Business Service Delivery. 

Specifically, the building permit process and form are governed by the Building Code Act, 1992 (BCA), which falls under the jurisdiction of MMAH. 
 
The HCRA is aware that some references and requirements in the BCA are outdated or not fully utilized. We have raised this with the Ministry of Public and Business Service Delivery and Procurement so they can work with MMAH and municipal building officials to address these issues and strengthen regulatory oversight.