One Toronto developer will not have its building licence renewed and another is facing a hefty fine after two separate cases of “improper conduct” were brought to light.
The Home Construction Regulatory Authority (HCRA) announced on Monday that it has refused to renew Mansoura Development Inc.'s building licence after the company failed to meet conditions imposed on it by Tarion.
According to HCRA documents, several owners of Mansoura-built abodes reported warranty claims to Tarion in 2018 and 2019, including paint defects, missing caulking, and exposed wires, which the developer had failed to repair or resolve. Despite Mansoura meeting with Tarion to review customer service practices, another such issue arose later in 2019.
As a result, in October 2020 Tarion imposed conditions on Mansoura’s registration, including that the company complete a Customer Service and Tarion Requirements course in order to address “a gap” in its “knowledge, skills, and judgement.” Without successful completion, the company represented a “risk to the public.”
Mansoura was given until March 13, 2021 to complete the course, but failed to do so. On March 17, 2021, the company applied for a renewal of its licence, which led the HCRA to inform Edmund Farrage, the company's principal and director, that the course would need to be completed in order for the renewal to proceed. They received no response, but, in October 2021, Yasmeen Farrage, an officer of the company, indicated that she would complete the course on behalf of Mansoura.
Yasmeen Farrage sent proof of registration in February 2022, but, despite numerous follow-ups on the part of the HCRA, to date, the company has still not provided confirmation that the course was completed.
It has now been nearly three years since the conditions were placed on the company's licence, almost two years since Yasmeen Farrage said she would complete the course, and more than a year and a half since the HCRA has had any contact from the company. As such, the HCRA has determined that granting a building licence to Mansoura is "contrary to the public interest."
As of June 30, 2023, Mansoura had eight chargeable conciliations and has paid $152,509.60 in claims of warranty violations. It owes a further $143,971.34.
A chargeable conciliation occurs when Tarion determines that an issue reported by a homeowner is warranted under the Ontario New Home Warranties Plan Act, and that the builder failed to repair or resolve the issue during the applicable repair report and no exception to chargeability applies.
"Having a licence to build and/or sell new homes in Ontario requires maintaining high professional standards," said Wendy Moir, the HCRA’s Chief Executive Officer and Registrar. "The HCRA will continue to follow through on complaints and concerns about a builder’s conduct, to protect consumers and to ensure a level playing field for builders."
Mansoura marks the fourth case of enforcement action the HCRA has taken this year — in February, Albion Building Consultant Inc.’s licence was revoked and Highbridge Construction’s licence was suspended, and in June, Pinetree Developments Inc.’s licence was revoked.
Also on Monday, the HCRA announced that Altona Custom Homes and one of its directors, Mukunth Rajadurai, were convicted in Provincial Offences Court of failing to enrol a new home in the Tarion warranty program, which is required by law. The company was ordered to pay a fine of $25,000, while Rajadurai was fined a further $12,500.