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

Claim: Auditor General Shelley Spence released a special audit of HCRA on October 1, 2025. Headline findings:

• HCRA approved licences in >99% of applications, regardless of red flags.
• 2,026 of 2,042 applicants (99.2%) who failed HCRA's credit threshold were approved with no conditions.
• HCRA relied almost exclusively on credit scores for financial assessment; did not review financial statements or check director-level credit data.
• Fast-track renewals grew from 8.4% (2021-22) to 39% / 2,658 (2024-25) — see HCRA licence renewal — 12-month expiry, 60-day reminder, 30-day deadline; fast-track grew from 8.4% (2021-22) to 39% (2024-25).
• In 2024-25, 134 licensees with open complaints (33 high-risk) were fast-track renewed and collectively built 1,100 homes that year.
• Complaint backlog: 1,526 open files at March 31, 2025 (vs. 129 in 2021).
• Average complaint close time: 419 days.
• HCRA did not use municipal building-permit data to spot illegal builders proactively.
• Ontario buyers took possession of almost 60,000 new homes in 2024 at an average price of over $790,000.
• HCRA had 70 employees overseeing 7,232 licensees and ran a $3.2 million deficit.

Sources:

• AG release: https://www.auditor.on.ca/en/content/specialreports/specialaudits/en2025/AR-PA_HCRA_en25.html
• CP24 summary: https://www.cp24.com/politics/queens-park/2025/10/01/auditor-says-ontario-homebuyers-could-be-at-risk-from-weak-builder-vetting/
• New-home market size: https://www.newswire.ca/news-releases/ontario-auditor-general-releases-four-special-reports-869369554.html

Confidence: Verified.

HCRA agreed with all 10 of the AG's recommendations. MPBSDP accepted 3 of 4, hesitating on mandatory continuing education and technical-competency upgrades.

Karen Somerville (Canadians for Properly Built Homes): "We see this as a scathing report — a totally unacceptable situation — but unfortunately not surprising."

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.