New charges laid against home builder for illegally building 40 homes

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Home Construction Regulatory Authority Logo (CNW Group/Home Construction Regulatory Authority (HCRA))

Ontario Construction News staff writer

The Home Construction Regulatory Authority has laid 124 charges against Albion Building Consultant Inc. and five business associates related to what the regulator alleges is the illegal building and selling of 40 new homes.

The HCRA says it is also seeking a restraining order to prevent Albion “from further violating the law” amid allegations that the company continued building homes even after its license was revoked.

“Albion has repeatedly disregarded the law governing new home construction,” Wendy Moir, the HCRA’s CEO and Registrar said in a statement. “The HCRA will continue to increase penalties on this former licensee until it stops putting the public at risk. “

Albion has multiple prior convictions for illegal building and failing to enrol new homes with Tarion, the administrator of the province’s new home warranty program, the statement says. In 2022, the company was convicted of failing to enrol new homes in the warranty program as required by law.

it was ordered to pay over $200,000 in fines for illegal building. In 2024, the HCRA revoked Albion’s licence to build and sell homes in Ontario on the grounds that it would not operate lawfully. Albion Building Consultant, also known as Albion Builders or Albion is run by Zamal Hossain and his wife, Farida Haque.

Hossain in a phone interview said he disputes the charges: “A lot of them, almost 50 per cent of them,” he said, adding that Albion has paid fines imposed to date “I have a lawyer who will take care of it – a court will decide that,” he said. Asked if Albion intends to continue to build homes he said; “I’m just going to do the owner built, not the house for sale.”

(An owner-builder is an individual who is building a home for their own use, on land they own. An owner-built home is not eligible for warranty coverage under the Ontario New Home Warranties Plan Act and will not have statutory warranty coverage under the Act.)

Last February, the HCRA executed a search warrant at Albion’s Toronto offices, seizing hundreds of thousands of business records. The HCRA simultaneously issued a freeze order, prohibiting Albion from withdrawing purchasers’ funds and requiring Albion to hold those funds in trust.

Based on evidence obtained during the search warrant, the HCRA laid the new charges that include illegal building and selling, failure to enrol homes, failure to comply with conditions, and being a party to an offence. It is the largest investigation in the HCRA’s history.

“Evidence uncovered through the search warrant has revealed extensive violations, leading to these new charges,” Moir said. “Albion’s ongoing misconduct poses a serious risk to the public. We advise all consumers to be on the lookout and extremely cautious of Albion falsely presenting itself as a licensed builder, which it is not. They are not qualified or authorized to build or sell homes.”

The HRCA, which is responsible for regulating and licensing homebuilders and sellers in the province, is urging anyone who has purchased a new home or engaged in a financial transaction with Albion in the last three years to contact it immediately.

“Buyers give sizeable deposits to new homebuilders with the expectation they will conduct business according to the law,” Moir said.

“Illegal building and selling remains a serious consumer protection issue and we will continue to investigate this incident and additional reports of illegal activity across the industry.”

 

 

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