INCREASED BUILDER ACCOUNTABILITY
PROTECTS HOME BUYERS
Proposed legislation introduced in May would protect
consumers and recognize the work of trustworthy homebuilders.
– GOV E RN M EN T O F A LB ERTA –
MAY’S NEW HOME BUYER PROTECTION AMENDMENT ACT would
establish a builder licensing program that will help consumers distinguish good
builders from bad builders. “When Albertans buy a new home, they’re making one of
the biggest investments they’ll ever make. It’s also one of the most important–it’s where
we raise our families, host our friends, and build relationships with our neighbours
and community,” says Shaye Anderson, Minister of Municipal Affairs. “We want to
make sure that Albertans are protected when they make these investments so they
don’t have to worry, and so they know their home was built by one of the many
qualified, skilled builders in Alberta.”
Currently there are no minimum qualifications to be a builder in Alberta. If passed,
this bill would require builders to maintain an active licence to build new homes and
secure warranty coverage. They would also need to show they are knowledgeable in
home construction and are in good financial standing.
“CHBA–Alberta is looking forward to working in partnership with the provincial
government on including licensing as part of the New Home Buyer Protection Act.
While there is still plenty of work to be done, the ability to remove builders who
demonstrate a proven, negative track record will be a benefit to every Albertan–
including those in the industry,” states Ryan Scott, President, Canadian Home
Builders’ Association–Alberta. “Our members have always been on the leading edge of
the industry, including requiring warranty coverage for more than 40 years. We want
to make sure that licensing protects affordability and choice for Albertans–while also
recognizing the many upstanding builders providing homes and jobs throughout the
province.”
The bill would also create an online registry of licensed builders to help homebuyers
select a reputable builder. As set out in the existing home warranty program, people
who build their own homes (owner-builders) would not be required to have a licence.
The enhanced builder information program, launched in June 2016 to support
home reconstruction in Fort McMurray, provided some foundational elements for
builder licensing in Alberta. It requires builders to complete a declaration through the
New Home Buyer Registry before applying for a building permit. All declarations are
posted online to help consumers make a more informed decision when choosing a
builder. To date, more than 190 declarations have been submitted by builders. “These
measures build on the New Home Buyers Public Registry pilot, which empowered
Wood Buffalo residents to make informed decisions during the rebuild process.
Builder licensing promotes builder accountability and protects homebuyers in the
biggest purchase of their lives,” says Melissa Blake, Mayor, Regional Municipality of
Wood Buffalo.
Government consulted with stakeholders on a builder licensing program in
February and March through focus groups and an online survey. More than 1,200
Albertans completed the survey, with 78 per cent of respondents supporting builder
licensing.
Page 6
New Homes
June 2017
QUICK FACTS:
There are approximately
4,000
residential builders
operating in Alberta.
Alberta has roughly
12 per cent
of Canada’s population but has 20
per cent of Canada’s housing starts.
There were
22,632 housing starts
in Alberta in 2016.
Almost
$8 billion
is invested annually in new
residential construction in Alberta.
Since the 2016 wildfire, the
Regional Municipality of Wood
Buffalo has issued approximately
650
building permits
Service Alberta offers a number
of additional resources, including
consumer tip sheets to help
Albertans understand their rights
and responsibilities when choosing
a builder or hiring contractors.