Niagara man, developer charged with provincial offences related to illegal home sales

Ontario's home builders and vendors regulator has charged a Niagara man and a company with provincial offences related to illegal home sales, and isproposing to refuse the licence of the man'scurrent and former company.

The Home Construction Regulatory Authority (HCRA), which started operations in February, provided documentsto CBC News on Dec. 15. They listed theman as the director of Growth Social House Inc., and previous director of a numbered company advertised as Novel Condominiums.

The documents stateNovel Condominiums entered into 26 agreements of purchase and sale for homes at 6591 Montrose Road before becoming registered as a vendor under the Ontario New Home Warranties Plan Act (ONHWPA).

That resulted in 26 charges against the company and 26 charges against its director at the time.

Theman, who was listed as a registered salesperson, also falsely answered a question on the application form about whetherhe had any charges pending of an offence under any law, the documents state.

The man pleaded guilty to exporting cannabis, careless storage of a firearm and two counts of possession with the purpose of selling cannabis in late September.

He was sentenced to 12 months of house arrest and almost 12 months of curfew with conditions as well as a $175,000 fine and forfeiture of items seized during the investigation, including money, the documents state.

His lawyer couldn't immediately be reached for comment.

The Niagara Regional Police Services has no involvement in the HCRA charges, said police spokesperson Cst. Jesse Vujasic.

Most builders and vendors follow rules: HCRA

Most builders and vendors follow the rules, but they can be undermined by illegal or unethical competition, saidWendy Moir Acheson, CEO and registrar of the HCRA, in a statement.

"Those who knowingly choose to avoid their legal obligations can expect the HCRA to use a broad range of regulatory tools including, when necessary, charges to curtail this unacceptable behaviour," Moir Acheson said.

This is the second set of charges laid by the HCRA.

The charges have been posted to the HRCAwebsite and theOntario Builder Directory, a searchable database complete with warnings of buildersknown to be operating illegally.

The next court date on the matter is slated forJan. 14, 2022,at Niagara Falls Provincial Offences Court.

Novel Condominiums said it is cooperating

Violating the ONHWPAas a corporation can lead to a max fine of $250,000 per violation. For individuals, it can be a max fine of $50,000 and two years less a day in jail per violation.

In a statement issued Dec. 13,Novel Condominiums said it is "dismayed" to hear of the provincial offence charges and is cooperating fully with the investigation.

"The issues that gave rise to the charges have since been rectified Novel is dedicated to satisfactorily addressing any legitimate issues that may have resulted in these charges being laid," it said.

"All units are enrolled with Tarion and purchaser deposits are securely held in trust as required by the Condominium Act and pursuant to our ethical obligations, which we take very seriously."

Novel strives to ensure all its projects are in compliance with the law, and recognizes purchasers put their faith in themwhen buying a home, the company said.

"We are committed to treating them with honesty, integrity, and respect throughout the entire homebuying and homebuilding process."