1016082 BC Ltd. (“1016082”) and Yogeshchandra Nathawad (“Nathawad”) constructed a 9 unit multi-unit building in Vancouver, BC (collectively, the “New Homes”), during the period of, or about, November 2020 and March 2022. Although 1016082 has been approved as a BC Housing (“BCH”) Licensed Residential Builder (“LRB”) since August 15, 2017, and obtained a commitment from an approved home warranty insurer on November 2, 2020, to provide home warranty insurance (“HWI”) on each of the New Homes as required by the Homeowner Protection Act (the “Act”) and the Homeowner Protection Act Regulation (the “Regulation”), the New Homes were de-enrolled from HWI coverage by the home warranty insurer on July 9, 2021, contrary to section 22(1) of the Act. On March 30, 2022, BCH issued Compliance Order 22-0007 to 1016082 and Nathawad directing that 1016082 and Nathawad immediately:
- Cease any offering for sale, marketing, completion of the Purchase/Sale Agreements that are already in place, or may come into place, and/or actual sale of the New Homes;
- register each of the New Homes for coverage by HWI provided by a warranty provider pursuant to section 22(1) of the Act;
- provide BCH Compliance Department with proof that each of the New Homes is enrolled in a policy of HWI pursuant to section 22 of the Act; or
- provided the property on which the New Homes are located meets the acceptance criteria for a rental exemption, arrange for a restrictive covenant to be registered on the title to the property restricting the sale or other disposition of any dwelling units on the property for 10 years from the date of first occupancy of one of the dwelling units pursuant to section 2(2) of the Regulation; and
- Prior to renewing any marketing efforts and/or offering any of the New Homes for sale, or in the case of a Purchase and Sale Agreement already being in place for any of the New Homes, prior to selling any of the New Homes, you must ensure that each of the New Homes is in compliance with the Act and Regulation.
1016082 and Nathawad were ordered to comply with Compliance Order 22-0007 by May 12, 2022.