What is the Home Construction Regulatory Authority in Ontario?

The Home Construction Regulatory Authority (HCRA) is Ontario's new regulatory body that replaced Tarion as the warranty provider and regulator for new home construction, effective February 1, 2021.

HCRA operates under the New Home Construction Licensing Act, 2017, and serves two main functions for Ottawa homeowners: licensing home builders and vendors, and administering the mandatory new home warranty program.

What HCRA Does for Ottawa Homeowners

The authority licenses all builders and vendors who construct or sell new homes in Ontario, including Ottawa and surrounding areas like Kanata, Barrhaven, and Orleans. Every builder must be licensed through HCRA before they can legally build or sell new homes. You can verify a builder's license status through the HCRA website at hcraontario.ca.

HCRA also administers the mandatory warranty coverage that protects buyers of new homes. This includes coverage for deposit protection (up to $100,000), defects in materials and labor (1 year), water penetration and electrical, plumbing, and heating systems (2 years), and major structural defects (7 years).

Key Differences from Tarion

Unlike the previous Tarion system, HCRA operates as the regulator while allowing multiple warranty providers to compete in the market. However, HCRA continues to provide warranty services during this transition period. The authority has enhanced enforcement powers and can impose administrative penalties, suspend licenses, and take other regulatory action against non-compliant builders.

What This Means for Ottawa New Home Buyers

If you're buying a new home in Ottawa or area communities, your builder must be HCRA-licensed. Always verify their license status before signing any agreements. The builder should provide you with warranty information and enroll your home in the warranty program. You'll receive a Certificate of Coverage confirming your warranty protection.

For resale homes or renovation work, HCRA doesn't apply - you'll still need to verify contractors through ESA (for electrical), TSSA (for gas work), and ensure they have WSIB clearance and proper insurance.

Red Flags to Watch For

Be cautious of any builder who cannot provide proof of HCRA licensing, asks you to waive warranty coverage, or pressures you to close before receiving your Certificate of Coverage. These are serious warning signs that could leave you without protection.

For verification or complaints, contact HCRA directly at 1-888-492-7132 or visit hcraontario.ca. The City of Ottawa Building Code Services (613-580-2424) handles building permits and inspections, which are separate from HCRA's warranty and licensing functions.