Burlington home builder pays fine, free to continue several developments in the city
Published December 1, 2022 at 10:53 am
A Burlington developer that had been threatened with losing its licence to build has settled with the provincial body that regulates the industry.
Adi Development Group, which is involved in several projects across the city, had received a notice from the Home Construction Regulatory Authority (HRCA) to revoke their licence.
The HRCA was acting on several complaints about Adi cancelling 174 sales in the Nautique development in March due to the builder’s “failure to obtain satisfactory construction financing”.
The agreement with the HRCA will see the return of all deposits to affected purchasers, a $60,000 fine and about $2.5M in interest being returned to affected purchasers.
“We are happy to have this behind us and look forward to completing our existing projects and bringing more high-quality homes and communities to the Greater Toronto Hamilton Area (GTHA) market,” said Tariq Adi, CEO of Adi Developments.
“These are unprecedented times for the development industry. We were facing cost escalations in the range of $43M, which the project simply could not absorb. As a result, we had to seek additional financing and reconfigure the project in order to be in a position to complete it. Regrettably, however, the situation forced us to cancel purchase agreements, which we hated to do because our customers are the most important part of our business.”
The affected projects in were The Nautique Lakefront Residences located at 364 Martha St., Realm Condominiums at 4853 Thomas Altona Blvd., and The Valera, at 4880 Valera Rd., all in Burlington.insauga's Editorial Standards and Policies advertising