Sunshine Coast Distillery Inc., Hongquan Lu, and Shitao Lu

On January 31, 2023, pursuant to s. 28.3(1)(b) of the Homeowner Protection Act (the “Act”), Sunshine Coast Distillery Inc. (“SCD”), Hongquan Lu (“H. Lu”), and Shitao Lu (“S. Lu”)(H. Lu and S. Lu together, “the Lus”), were issued a monetary penalty, jointly and severally, in a daily amount of $225, to a maximum of $6,750, for each day that passes until the demands contained in Compliance Order 22-0017 (the “CO”) have been satisfied. This Monetary Penalty was issued for the following reasons:

• SCD and the Lus contravened sections 14(1) and 22(1) of the Act regarding a number of new homes in Powell River, BC (collectively, the “New Homes”);
• The contraventions of the Act by SCD and the Lus were the subject of the CO issued by BC Housing (“BCH”) on September 29, 2022;
• The CO directed SCD and the Lus to cease construction on the New Homes and either become a BCH Licensed Residential Builder and register each of the New Homes for coverage by home warranty insurance (“HWI”) provided by a warranty provider, provide proof that the New Homes are enrolled in a policy of HWI, or provided that the property meets the acceptance criteria for a rental exemption, arrange for a restrictive covenant to be registered on 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(2.1) of the Homeowner Protection Act Regulation. SCD and the Lus were ordered to comply with the CO by November 18, 2022; and
• SCD and the Lus failed to comply with the orders contained in the CO by the requested compliance date.