Licensing Fees
The Homeowner Protection Act Regulations require licensed residential builders to pay a licensing fee of $600 plus $40 per unit constructed. Renewal fees are $500 per year plus $40 per unit constructed. A $750 per unit reconstruction fee is also required for multi-unit construction where geographically applicable.
When more than one Licensed Residential Builder is involved in a new home construction project (for example, when a developer hires a general contractor), only one Licensed Residential Builder is required to pay the $40 per unit licensing fee.
Reconstruction Fee
A $750 per unit reconstruction fee is also required for each new dwelling unit that is in a multi-unit building constructed in the coastal climate zone. Reconstruction fees are used to fund the Reconstruction Program.
When more than one Licensed Residential Builder is involved in the construction of new home (for example, when a developer hires a general contractor), only one Licensed Residential Builder is required to pay the $750 per unit reconstruction fee (where geographically applicable) per unit.
The “coastal climate zone” is defined in the Homeowner Protection Act regulations as the:
- Capital Regional District
- Regional District of Comox-Strathcona excluding Electoral Areas G, I and J and the villages of Gold River, Tahsis and Zeballos.
- Fraser Valley Regional District
- Greater Vancouver Regional District
- Regional District of Alberni-Clayoquot
- Regional District of Cowichan Valley
- Regional District of Nanaimo
- Regional District of Powell River
- Squamish-Lillooet Regional District excluding Electoral Areas A and B and the District of Lillooet, and
- Sunshine Coast Regional District.
Paying Homeowner Protection Act Fees
The $600 licensing fee (or $500 renewal) can be directly paid to the HPO upon application for a licence. The $40 per unit fee and the $750 Reconstruction Fees (for multi-unit projects in the coastal climatic zone only) are to be paid to the Homeowner Protection Office when requesting a New Home Registration.
Penalty For Late Fees
Fees overdue by 30 days will be subject to interest charges on the outstanding amount payable at an annual rate of 18%. Failure to pay HPO fees (and to obtain home warranty insurance) are offences under the legislation and carry serious penalties.
