Ontario developers lobby group promoting event for builders to rub elbows with regulators
In the lead up to its annual conference, the lobby group for Ontario homebuilders advertised a new “reception.”
At the paid event, builders would have an “exclusive opportunity” to network with two key figures in the industry: the leaders of the two provincial agencies that oversee new home construction and warranties.
But three days before the conference got underway, the Ontario Home Builders’ Association suddenly altered the description on its website by cutting out the words “regulator reception.” The listing also removed the names of the CEOs for the Home Construction Regulatory Authority (HCRA) and Tarion, the administrator of the province’s new home warranty program.
OHBA told the Star they made the changes because the two CEOs were “no longer attending.” No lobbying took place at the event, an OHBA spokesperson said, calling it an “educational session.”
But consumer advocates say the CEOs’ cancelled attendance was the agencies attempt to “cover their tracks” after the publicizing of the reception met backlash, reviving concerns that the authorities have an improperly cosy relationship with the homebuilders they’re supposed to regulate.
Tarion criticized for cosiness with builders
In 2019, Ontario’s auditor general criticized Tarion, at the time the regulator for homebuilders and the new home warranty authority, for maintaining a relationship with the OHBA that was favourable to the builders at the expense of homebuyers.
Tarion was found to have spent $185,000 over five years sponsoring dinners at the OHBA conferences as well as consulting the builders group in advance of any proposed changes to its regulations.
In the years following the report, the HCRA was established as the new regulator of homebuilders while Tarion was stripped of its regulatory role and operates only as the new home warranty administrator.
At least two consumer advocates raised concerns about the reception to provincial authorities.
Consumer advocate Alex Patinios fired off a complaint on Sept. 18 to the HCRA and its CEO personally about the “regulator reception” advertised by the builders group, raising concerns of a conflict of interest. Within 24 hours, the OHBA changed its wording of the event on the website, according to records obtained by the Star.
“They made all these changes last minute after they were notified that consumers were aware and how unhappy they were with this happening, only then did changes get made,” Patinios told the Star.
‘Suggestion of a conflict of interest is incorrect’
An HCRA spokesperson said the builders’ group managed social media content and updates to their website independently.
“As the regulator, it is our role and mandate to promote compliance by supporting the ongoing education and engagement of stakeholders, including those in the homebuilding industry. Any suggestion of a conflict of interest is incorrect and reflects a misunderstanding of our role in fostering the continued education of licensed homebuilders,” Tess Lin said.
The event was always intended as a drop-in session in a small meeting room, she said.
HCRA CEO Wendy Moir was invited to join the session just a few days before “but was unable to attend in the end,” Lin said, noting some HCRA staff attended to address questions and provide information.
The hour-long session took place on Sept. 23 as part of a three-day conference at the Fallsview Casino Resort in Niagara Falls. Tickets for the conference cost as much as $1,800, according to the OHBA website.
Peter Balasubramanian, CEO of Tarion, was also slated to attend the event.
Balasubramanian did not participate in the session, a Tarion spokesperson told the Star, though front-line technical staff did attend.
The Tarion spokesperson did not say why Balasubramanian cancelled his attendance, but noted that the agency “did not receive or accept an invitation to a reception for the purpose of networking with the builders.”
“The conference is the largest gathering of new homebuilders in the province and it is normal for Tarion … to have a presence,” the spokesperson said.
Ad promoting event changed after complaints
The builders group originally promoted the event on its website by saying, “Whether you’re a seasoned builder or new to the industry. This is your chance to connect with Ontario’s home-building regulatory leaders and staff.” This line was also deleted when the changes were made.
Patinios says this shows that the two provincial agencies “were aware of, at minimum, a perceived conflict of interest or a real conflict of interest.”
Patinios said he felt like consumers continued to have the “least amount” of access to engage with the regulators and found it “mind-boggling” that there seems to be no improvement in consumer protection despite the concerns identified in the 2019 auditor general’s report.
The HCRA said it engages and provides education sessions to other stakeholders including consumers.
Meanwhile, a spokesperson for Tarion said it was “simply untrue” to say the agency hasn’t improved consumer protection.
In the past five years, Tarion has implemented numerous initiatives including limiting the number of industry board members, having a policy against sponsorship of the OHBA, as well as increasing the warranty protection for home buyers.
This article was first reported by The Star
