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TORONTO – The Home Construction Regulatory Authority (HCRA) has refused to renew the licence of after finding the builder improperly invoked an “unavoidable delay” due to the COVID-19 pandemic to “justify indefinite project delays and withhold purchaser deposits.”

The decision, upheld by the Licence Appeal Tribunal (LAT), reinforced the unavoidable delay provision cannot be used indefinitely or as a shield against financial accountability, explains a release.

The HCRA’s investigation found the builder defaulted on its construction loans for a 137-unit condominium project in Barrie, prompting its creditors to withdraw financing.

“Despite having no financing to complete the project, the builder retained purchaser deposits and let the project stagnate,” claims the HCRA.

In its ruling, the LAT emphasized any legitimate period of unavoidable delay must have a direct connection to the extraordinary event in question. The tribunal noted even cost increases following the pandemic were only indirectly related to COVID-19. Therefore it did not justify prolonged delays.

“The builder’s repeated reliance on ‘unavoidable delay’ supported the HCRA’s view that it was not financially responsible in conducting its business,” the release reads. “As a result, allowing the builder to keep its licence was contrary to the public interest.”

Purchasers have since had their deposits returned, and the builder is no longer licensed to build or sell new homes in Ontario.

“Citing an ‘unavoidable delay’ helps builders manage project timelines that are impacted by extraordinary and unforeseeable events outside their control,” says Wendy Moir, the HCRA’s Chief Executive Officer and registrar, in a statement. “In this case, the builder abused this provision, improperly relying on ‘unavoidable delay’ to mask its financial instability and stall the inevitable cancellation of the condominium project.” 

Before signing a purchase agreement, homebuyers should confirm the builder’s licence status by consulting the .