{"id":890,"slug":"auditor-general-2025-hcra-99pct-approval-1526-backlog","title":"Auditor General 2025 report on HCRA: 99%+ approval rate (including 2,026 of 2,042 who failed credit), 1,526 complaint backlog, 419-day avg close","kind":"reference","scope":"business","status":"current","audiences":["kevin","candid-team"],"topics":["gc-vertical","hcra-enforcement","regulatory-signals"],"reference_body":"**Claim:** Auditor General Shelley Spence released a special audit of HCRA on **October 1, 2025**. Headline findings:\n\n- HCRA approved licences in **>99% of applications**, regardless of red flags.\n- **2,026 of 2,042 applicants (99.2%)** who failed HCRA's credit threshold were approved with no conditions.\n- HCRA relied almost exclusively on credit scores for financial assessment; did not review financial statements or check director-level credit data.\n- Fast-track renewals grew from **8.4% (2021-22) to 39% / 2,658 (2024-25)** — see [[hcra-renewal-mechanics-fast-track-concern]].\n- In 2024-25, **134 licensees with open complaints (33 high-risk)** were fast-track renewed and collectively built **1,100 homes** that year.\n- **Complaint backlog: 1,526 open files** at March 31, 2025 (vs. 129 in 2021).\n- **Average complaint close time: 419 days.**\n- HCRA did **not** use municipal building-permit data to spot illegal builders proactively.\n- Ontario buyers took possession of **almost 60,000 new homes in 2024 at an average price of over $790,000**.\n- HCRA had **70 employees** overseeing 7,232 licensees and ran a **$3.2 million deficit**.\n\n**Sources:**\n- AG release: <https://www.auditor.on.ca/en/content/specialreports/specialaudits/en2025/AR-PA_HCRA_en25.html>\n- CP24 summary: <https://www.cp24.com/politics/queens-park/2025/10/01/auditor-says-ontario-homebuyers-could-be-at-risk-from-weak-builder-vetting/>\n- New-home market size: <https://www.newswire.ca/news-releases/ontario-auditor-general-releases-four-special-reports-869369554.html>\n\n**Confidence:** Verified.\n\nHCRA agreed with all 10 of the AG's recommendations. MPBSDP accepted 3 of 4, hesitating on mandatory continuing education and technical-competency upgrades.\n\n**Karen Somerville (Canadians for Properly Built Homes):** *\"We see this as a scathing report — a totally unacceptable situation — but unfortunately not surprising.\"*\n\n**For Candid use:** The AG report is **the single most useful framing device** for any 2026 buyer-facing content. It is the credible third-party reason a buyer should not rely on HCRA licence status alone — and therefore the reason to surface the full Regulatory Activities tab from the OBD on a builder's own site.","rationale_body":null,"metadata":null,"links":{"outgoing":[{"slug":"hcra-licensing-requirements-competency-financial-conduct","title":"HCRA licensing requirements: technical competency, financial responsibility, conduct history, honest disclosure, licensing interview","kind":"reference","scope":"business","link_type":"relates-to"},{"slug":"ontario-builder-directory-obd-public-registry","title":"Ontario Builder Directory (obd.hcraontario.ca) — public registry showing licence status, homes built, Tarion claims, charges, convictions, discipline","kind":"reference","scope":"business","link_type":"relates-to"},{"slug":"gc-king-bond-16m-amp-code-of-ethics-2024","title":"GC King Bond GP Inc. — $16M in AMPs for 76 Code of Ethics breaches (July 2024); $1.1M reimbursed; receivership June 2025","kind":"reference","scope":"business","link_type":"relates-to"}],"incoming":[{"slug":"research-brief-hcra-ontario-may-2026","title":"Research brief: Ontario Home Construction Regulatory Authority (HCRA) — definitive reference (May 2026)","kind":"reference","scope":"business","link_type":"relates-to"},{"slug":"hcra-renewal-mechanics-fast-track-concern","title":"HCRA licence renewal — 12-month expiry, 60-day reminder, 30-day deadline; fast-track grew from 8.4% (2021-22) to 39% (2024-25)","kind":"reference","scope":"business","link_type":"depends-on"},{"slug":"rule-buyer-search-obd-before-signing-not-listed-means-unlicensed","title":"RULE: Buyers should search the Ontario Builder Directory before signing any Agreement of Purchase and Sale; not listed = unlicensed = walk away","kind":"rule","scope":"business","link_type":"relates-to"},{"slug":"rule-display-hcra-licence-number-link-to-obd-on-builder-sites","title":"RULE: Every Candid builder-client site must display HCRA licence number(s) in the footer of every page and link directly to the builder's OBD profile","kind":"rule","scope":"business","link_type":"relates-to"},{"slug":"cpbh-karen-somerville-tarion-critique","title":"Canadians for Properly Built Homes (CPBH) led by Dr. Karen Somerville — Tarion's most consistent critic since 2004; positions on monopoly, conciliation, NDA-bound mediation, LAT, caps","kind":"reference","scope":"business","link_type":"relates-to"}]},"created_at":"2026-05-24T13:50:00.864Z","updated_at":"2026-05-24T13:50:00.864Z"}