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HomeMy WebLinkAboutFebruary 05, 2026 - Council - AddendumTHE CORPORATION OF THE MUNICIPALITY OF BAYHAM COUNCIL MEETING ADDENDUM Thursday, February 5, 2026 6. A Barry Wade re Unlicensed Tarion Builders (document added) February 5, 2026 Delegation by Barry Wade re Unlicensed Tarion Builders (DS-02/26) Subject: Updating Bayham’s Building By-law to Align with the New Provincial Permit Form and Address Unlicensed New Home Construction Good evening Mayor and Members of Council. I’m here to follow up on the December 18, 2025 correspondence council received for information regarding unlicensed new-home construction, and the subsequent staff report DS-02/26 from CBO Scott Sutherland before you this evening. Since that report was written, there has been a material change at the provincial level that directly affects this issue, and I believe it gives Council a clear opportunity to modernize Bayham’s process in a way that supports consumer protection and due diligence — without exceeding municipal authority. 1. The New Provincial Permit Form Changes the Landscape On January 30, 2026, the Ministry issued Ontario CodeNews Issue 377, requiring municipalities to use an updated Application for a Permit to Construct or Demolish effective February 16, 2026. This new form: •replaces outdated Tarion references, •explicitly aligns with the New Home Construction Licensing Act, 2017, and •requires applicants to declare whether a project is a new home and whether a builder/ vendor licence is required — and if so, to provide it. In other words, the Province has now updated the form staff identified as outdated, and it directly addresses the loophole discussed in both my correspondence and the staff report. This is not a discretionary update — municipalities are required to use this form. 2. What This Means for Bayham Staff correctly noted that municipalities cannot alter the provincially prescribed form. However — and this is important — municipalities can: •require supplementary declarations, •embed requirements in their Building By-law, and •configure digital permitting systems, such as CloudPermit, to ensure required fields and declarations are completed before an application is accepted as complete. This is particularly relevant in a CloudPermit environment, where required fields and attachments can be configured to support staff review. Staff themselves acknowledged this in the report, noting that any such requirements should be formally established in the Building By-law for consistency and authority. The new form now gives Bayham stronger, clearer information — the question before Council is how that information is used. 3. Busting the “One-Year” Myth I also want to address a misconception that has come up locally — the idea that if someone lives in a newly built home for one year, they can freely sell it without being considered a builder. To be clear: there is no “one-year rule” in Ontario law. Neither the New Home Construction Licensing Act nor the Ontario New Home Warranties Plan Act creates a time-based exemption. What matters is intent and pattern, not how long someone occupies a home. Tarion and the Home Construction Regulatory Authority assess: •whether the home was built for personal use or for sale, and •whether there is a pattern of repeated build-occupy-sell activity, even where occupancy occurs. Repeated reliance on the owner-builder exemption — regardless of whether a home is occupied for a year — can still constitute builder/vendor activity requiring licensing and warranty enrolment. This is precisely why written declarations and referral protocols matter. 4. What I Am Recommending I am not asking Council to create new enforcement powers. I am asking Council to modernize Bayham’s Building By-law and procedures so they align with the updated provincial framework and demonstrate due diligence. Specifically, I recommend Council direct staff to bring forward amendments that would: 1. Formally require use of the current provincial permit application form, as amended from time to time. 2. Require an Owner-Builder Declaration where no NHCLA builder/vendor licence number is provided for new home construction — confirming: •the home is for personal use, •it is not being built for sale, and •the applicant understands there is no statutory warranty coverage. 3. Authorize the Chief Building Official to request supporting information where necessary to determine compliance with applicable law for new homes. 4. Adopt a standard referral protocol to Tarion and/or HCRA where there are reasonable grounds to believe information provided may be false, misleading, or indicative of unlicensed new-home construction. 5. Configure Bayham’s digital permitting system to ensure: •NHCLA fields are completed where applicable, and •owner-builder declarations are attached to permit records. 5. Why This Matters I want to bring this back to the reason I wrote Council in December — the ongoing risk of unlicensed new-home construction in Bayham. Staff correctly noted in the report that municipalities are not the enforcement authority for builder licensing or warranty compliance. I agree with that. But the gap identified in the report is not enforcement — it’s visibility and documentation. When applications default to “owner-builder” without clear declarations or follow-up, illegal builders are able to operate in the shadows, and purchasers bear the risk. The steps I’ve outlined tonight don’t create new enforcement powers. They give staff better information at the front end, clearer records, and a defensible basis to support provincial regulators when concerns arise. In other words, they help staff do what they are already trying to do — reduce unlicensed building activity — using tools the Province has now updated and provided. 6. Closing Remarks I’ve provided a brief written hand-in for the record, including illustrative examples of how Council could direct staff to bring forward amendments aligned with updated provincial requirements. I’m not asking Council to adopt that language tonight, and I’m not seeking discussion on the hand-ins this evening. They’re provided simply as reference material to support Council’s consideration of next steps. Thank you for your time. — End of Spoken Delegation — Written Hand-Ins (For the Record) — Hand-Ins Here is a practical way Council could address the issue staff identified, using tools the Province has already provided. Proposed Building By-law & Policy Updates – New Home Construction and Owner-Builder Declarations. What is CodeNews. Includes: •HAND-IN 1 Sample by-law clauses (permit form update; owner-builder declaration) •HAND-IN 2 Sample Owner-Builder Declaration (1 paragraph) •HAND-IN 3 Summary of Ontario CodeNews Issue 377 (Jan 30, 2026) Note: The sample clauses provided are illustrative only. They are intended to demonstrate how Council could direct staff to bring forward amendments aligned with updated provincial requirements. Any actual by-law amendments would be developed by staff and reviewed by Council through the normal process. HAND-IN ITEM 1 Proposed Building By-law Amendments (Municipality of Bayham – By-law 2019-024) Purpose To update Bayham’s Building By-law to: •align with the mandatory February 16, 2026 provincial permit application, and •support accurate identification of new home construction and owner-builder status in accordance with applicable law. A. Amendment: Provincial Permit Application Form Proposed new subsection (add to Section 4 – Permits) 4.X Use of Provincial Permit Application Form All applications for a permit to construct or demolish shall be made using the most current Application for a Permit to Construct or Demolish form approved by the Minister under subsection 8(1.1) of the Building Code Act, 1992, as amended from time to time. Rationale •Ensures Bayham automatically remains compliant with provincial updates. •Removes ambiguity regarding outdated or locally modified forms. •Aligns the by-law with Ontario CodeNews Issue 377 (Jan 30, 2026). B. Amendment: Owner-Builder Declaration Requirement Proposed new subsection (add to Section 4 – Permits) 4.X Owner-Builder Declaration – New Home Construction Where an application for a building permit involves construction of a new home and no builder/ vendor licence number is provided under the New Home Construction Licensing Act, 2017, the applicant shall submit an Owner-Builder Declaration in a form satisfactory to the Chief Building Official confirming that: a) the applicant is constructing the home for their own personal use and occupation; b) the home is not being constructed for the purpose of sale; and c) the applicant understands that the home will not be eligible for statutory new-home warranty coverage under the Ontario New Home Warranties Plan Act. The submission of such a declaration does not create enforcement authority for the municipality and does not replace oversight by provincial regulators. Rationale •Addresses misuse of the owner-builder exemption. •Creates a written declaration of intent, not enforcement. •Supports referrals to provincial regulators where misrepresentation is suspected. •Consistent with practices used by other Ontario municipalities. C. Clarifying Authority (Optional but Helpful) Proposed addition to Section 5 – Plans & Specifications 5.X Additional Information – New Home Construction Where an application involves new home construction, the Chief Building Official may require additional information or documentation necessary to determine compliance with applicable law, including confirmation of builder licensing or eligibility for owner-builder exemption. Rationale •Clarifies authority already implied in Section 5. •Ties directly to “applicable law” review under the Building Code Act. •Does not expand powers — it documents existing practice. HAND-IN ITEM 2 Owner-Builder Declaration (Model Form) (For New Home Construction Where No NHCLA Licence Is Provided) OWNER-BUILDER DECLARATION I, _____________________________________ (full legal name), am the owner of the property municipally known as _____________________________________. I declare that: 1.I am constructing the dwelling for my own personal use and occupation. 2.The dwelling is not being constructed for the purpose of sale. 3.I understand that the dwelling will not be enrolled in the statutory new-home warranty program and will not be eligible for warranty coverage under the Ontario New Home Warranties Plan Act. 4.I acknowledge that providing false or misleading information may be referred to the appropriate provincial regulator for review. I make this declaration knowing that it forms part of a building permit application submitted under the Building Code Act, 1992. Signature Date HAND-IN ITEM 3 Summary of CodeNews Issue 377, January 30, 2026 Ontario CodeNews is an official bulletin issued by the Ministry of Municipal Affairs and Housing to communicate updates, clarifications, and mandatory implementation guidance related to the Ontario Building Code and the Building Code Act. It is relied upon by Chief Building Officials and municipal building departments to stay current with provincial requirements, including updated permit application forms, transition dates, and procedural expectations. While not legislation itself, CodeNews conveys official Ministry direction that municipalities are required to implement to ensure their building permit processes remain compliant and up to date.