The Home Construction Regulatory Authority (HCRA) has drawn a firm line in Ontario’s housing sector. In a recent ruling involving The Landing Development Group, regulators made it clear that the “unavoidable delay” clause — designed to protect builders during extraordinary events — cannot be exploited to hide financial mismanagement or indefinitely postpone projects. This decision serves as a major reminder for both builders and homebuyers navigating Ontario’s new-home market.
Ontario’s housing regulator has refused to renew the licence of The Landing Development Group after determining the builder misused COVID-19 “unavoidable delay” protections. The ruling — upheld by the Licence Appeal Tribunal — reinforces that extraordinary events cannot be used as a blanket excuse for prolonged delays or withheld deposits.
What Triggered the HCRA Investigation
The HCRA launched an investigation after the builder repeatedly cited the pandemic as a reason for long-term project suspension, despite having no active construction financing in place. Regulators suspected the delay justification was being used to cover deeper financial problems.
The Barrie Condominium Project: What Went Wrong
The builder was responsible for a 137-unit condominium project in Barrie, but defaulted on construction loans. As a result, financing partners withdrew, leaving the development stalled.
Even with no funds to continue, the builder continued holding customer deposits and provided no meaningful progress on the project.
A small typo here is natural btw.
Misuse of the “Unavoidable Delay” Provision
The “unavoidable delay” clause allows builders to adjust timelines when uncontrollable events — such as pandemics, labour strikes, or natural disasters — create genuine barriers.
However, HCRA investigators concluded The Landing Development Group invoked the provision improperly, attempting to justify indefinite delays without valid COVID-related causes.
Findings of the Licence Appeal Tribunal (LAT)
The LAT supported the HCRA’s decision, adding key clarification:
- Any unavoidable delay must be directly linked to the extraordinary event.
- Cost increases or market changes that occur after an event do not justify prolonged stoppages.
- COVID-19 impacts may explain early disruptions, but not years of inactivity or financial collapse.
Builder’s Financial Instability and Loan Defaults
The tribunal found repeated reliance on “unavoidable delay” reflected poor financial management rather than unavoidable circumstances.
Ultimately, the LAT agreed the builder was not financially responsible, and renewing its licence would be contrary to the public interest.
Impact on Homebuyers and Deposit Returns
Following the ruling, purchasers received refunds for their deposits. The Landing Development Group is now prohibited from building or selling new homes anywhere in Ontario.
HCRA’s Message to Ontario’s Building Industry
HCRA CEO Wendy Moir stressed that unavoidable delay protections are meant to help builders manage legitimate disruptions — not to mask financial instability or delay inevitable project cancellations.
Her message was clear: “This provision cannot be used as a shield to avoid accountability.”
Best Practices for Homebuyers
Before signing a purchase agreement, homebuyers should:
- Review the builder’s licence status
- Check compliance history or past complaints
- Understand deposit protections
- Ask for clear construction timelines
Useful Internal Links
- Visit our /home page for key consumer guidance
- Explore insights on construction oversight via /blog
- Contact our team with questions through /contact
Importance of Verifying Builder Licensing
Consumers can verify licensing information through the Ontario Builder Directory, an authority source that provides up-to-date records on builders’ authorization and past conduct.
External authority link:
Ontario Builder Directory – https://www.ontario.ca/page/ontario-builder-directory
Industry Implications Moving Forward
This case sets a precedent for Ontario’s regulatory landscape. Builders should expect stricter enforcement around delay notices, financial responsibility, and project transparency. Meanwhile, homebuyers gain stronger protection and clearer expectations regarding their rights.
Conclusion
The HCRA’s refusal to renew The Landing Development Group’s licence reinforces an important principle in Ontario’s construction sector: extraordinary event clauses cannot be exploited. Transparency, financial stability, and compliance remain non-negotiable for every licensed builder.