Premier Doug Ford’s government will reform Tarion after a damning auditor general’s report into the controversial Ontario home-building regulator and warranty provider.

Government and Consumer Services Minister Lisa Thompson will table legislation to revamp Tarion Warranty Corp. before the house rises on Dec. 12.

“Our government recognizes that new-home warranties in this province are flawed,” Thompson’s office confirmed on Wednesday.

“Tarion has not done nearly enough to fulfil its responsibilities to protect new home buyers,” her office said.

“Our government has already taken action to ensure that Tarion is more transparent, and that protections for consumers are improved,” the minister’s office continued.

“We have so far taken steps to establish a separate regulator for new homebuilders, and increased transparency and accountability at Tarion by requiring — for the first time — the public posting of board and executive compensation.”

Thompson’s office added “our government intends to bring new legislation forward in the coming weeks.”

“Our government wants to assure the people of Ontario that we hear their concerns, and that they can expect to see reforms to new home warranty in the province that will put consumers first.”

That revelation came hours after NDP Leader Andrea Horwath called for the demolition of Tarion.

“We’re tackling Tarion and we’re proud to do it,” Horwath told reporters.

A fortnight ago, auditor general Bonnie Lysyk blasted Tarion for being unfair to new home buyers.

Lysyk issued an audit of the corporation on Oct. 30 that made 32 recommendations on how to fix the agency’s “restrictive processes.”

These included additional measures to prevent developers from cancelling condo projects before they have been built — something that has happened 460 times in the past decade, leaving buyers in a lurch.

The watchdog discovered that in 65 per cent of cases between 2014 and 2018, builders failed to make fixes that should have been under warranty.

Horwath wants the not-for-profit consumer-protection agency to be eliminated and replaced, and its chief executive officer and board to be fired.

“The Liberals and Conservatives have let Tarion look out for their homebuilder buddies, instead of the families they’re supposed to help,” the New Democrat leader said.

“No one at Queen’s Park should be comfortable allowing this rigged system to go on.”

While the Ontario government does not fund Tarion, the agency administers the provincial New Home Warranties Plan Act.

Its revenue comes from licensing fees paid by 5,600 builders and the registration levies paid on about 60,000 new homes annually.

About 380,000 Ontario homes are still covered by Tarion warranties, which last one, two, and seven years depending on what is defective.

If builders refuse to fix a problem, Tarion is supposed to provide compensation then recoup any costs from the developer.

That process is supposed to take up to six months, but Lysyk’s audit found it often takes 18 months.

Barbara Captijn, a consumer advocate who has long been championing reforms to Tarion, praised Horwath for wanting to tear it down.

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“We’re not talking about paint smudges on mirrors,” said Captijn, who became an activist after buying a defective new home and losing her own case at a tribunal.

“We’re talking about serious construction defects ... mould, cracked foundations, leaking roofs, leaking basements, and serious HVAC deficiencies whereby children and families are sleeping with mittens and caps on to try to keep warm in the dead of winter,” she said.

After Lysyk’s report, Thompson promised to “work with Tarion to ensure the auditor general’s recommendations are addressed in a timely and responsive manner.”

Robert Benzie is the Star’s Queen’s Park bureau chief and a reporter covering Ontario politics. Follow him on Twitter: @robertbenzie

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