HCRA SUSPENDS LICENCE AND LAYS CHARGES FOLLOWING INVESTIGATIONS INTO RELATED BUILDERS

Spring Garden Homes and Goldentrust Development face enforcement action over unaccounted purchaser funds and illegal building

TORONTO, July 9, 2026 /CNW/ - The Home Construction Regulatory Authority (HCRA) has suspended the licence of Spring Garden Homes Inc. and laid eight illegal building charges against Goldentrust Development Inc. and their shared Principal, Director, and Officer, Peng Zhang, following investigations into unaccounted purchaser funds and illegal building activity involving the two related companies.

The HCRA's enforcement actions stem from a complaint from a homebuyer received by the HCRA. The homebuyer pursued legal action against Goldentrust, Spring Garden, and Zhang over a range of issues, including allegations that more than $31,000 paid to Goldentrust for new home warranty enrolment was unaccounted for. The homebuyer later learned that Spring Garden, another company led by Zhang, had applied for the home's warranty enrolment despite never being informed of the company's involvement in their home.

The HCRA's investigation into Spring Garden raised concerns that the licensed builder was being used to facilitate illegal building activities for Goldentrust, a company that has never been licensed by the HCRA. To trace the homebuyer's funds and better understand the relationship between the companies, the HCRA requested banking and financial records from Spring Garden. Spring Garden provided contradictory information about its financial activities and banking history and failed to provide information explaining how the homebuyer's funds were directed, despite repeated requests. As a result, the HCRA determined that Spring Garden could not be reasonably expected to conduct its business responsibly and suspended Spring Garden's licence. As of February 14, 2026, the company can no longer build or sell new homes in Ontario.

"Financial responsibility is a cornerstone of a well-regulated homebuilding industry and a requirement for holding a licence in Ontario," says Wendy Moir, the HCRA's Chief Executive Officer and Registrar. "When that obligation isn't met, it can undermine consumer confidence and place homebuyers at risk. The HCRA will take appropriate action to protect the public's interest and uphold standards expected of licensed builders."

The investigation into Goldentrust resulted in eight Provincial Offences Act charges against the company and Peng Zhang for illegal building, including building without an HCRA licence and without enrolment confirmation from Tarion, the province's new home warranty administrator. Both are mandatory requirements to build new homes in Ontario. The charges relate to two homes and are scheduled to be heard before the Ontario Court of Justice on July 10, 2026.

"Homebuyers deserve confidence that the builder they're working with is properly licensed, financially responsible, and operating within the law," says Moir. "When builders use related companies to sidestep these requirements, the HCRA will act."

Before signing any agreement, homebuyers should check a builder's licence status and history on the Ontario Builder Directory. The directory provides licensing information, past conduct, notices and orders, and details about related companies to help consumers make informed decisions.

About the HCRA

The Home Construction Regulatory Authority (HCRA) is responsible for regulating and licensing the people and companies who build and sell new homes in Ontario. The HCRA enforces high professional standards for competence and conduct in the homebuilding industry, giving new home buyers confidence in one of the biggest purchases of their lives. The HCRA also maintains consistency across the sector, curtailing unethical and illegal builders.

In addition to licensing, the HCRA provides educational information for consumers on their home buying journey and hosts the Ontario Builder Directory – the authoritative source of background information about each of Ontario's 7,000 new home builders and sellers.

SOURCE Home Construction Regulatory Authority (HCRA)

Jerome Bennett, [email protected]