accountability agreement - tarion · this accountability agreement between the minister and tarion...

Between:

Accountability Agreement

Her Majesty the Queen in Right of Ontario,As Represented by the Minister of Consumer Services

-and-

The Tarion Warranty Corporation,a Not-For-Profit Corporation without Share Capital

Incorporated under the Laws of Ontario

November 25, 2010

PURPOSE OF THE ACCOUNTABILITY AGREEMENT

This Accountability Agreement between the Minister and Tarion sets out the terms ofspecific legislative, operational, governance, consumer, and educational commitments.This Agreement replaces the Agreement dated June 26, 2003.

Definitions

1) In this Agreement,

(a) "Act" means the dntario New Home Warranties Plan Act, R.S.O. 1990,Chapter 0.31 and the regulations thereunder, or as amended from time totime.

(b) "Board" means Board of Directors of Tarion Warranty Corporation.

(c) "Deputy Minister" means the Deputy Minister of Consumer Services.

(u j "Minisi~f" «iear~s the iviinisier or' consumer Services.

(e) "Ministry" mans the Ministry of Consumer Services.

(fl "Tarion" means the Tarion Warranty Corporation, snot-for-profit corporationwithout share capital incorporated under the laws of Ontario.

Legislative / Requlatory Commitments

1) Tarion will provide the Ministry with notice of its intention to adopt a new by-lawunder section 23 of the Act prior to its implementation, in accordance with the~Artinn 7~ Rv_la~ni Prn+nrnl T~rinn ~~~ill ...,r.~~~l+..,~+t, ♦h.. nn:..: a... ...~ ..:,r_ ~~__ "_ _ _ _ _ _ J .~.. ... ... ...... . .,.. ..... .. n~ vv~ wawa r~~u ~ u ~~. Ivin IIJ II y GI IlA F.lI V V IUG U IG

Ministry with a minimum of 30 days fio review draft materials prior to any publicposting of the regulation. Attached to this Agreement as Schedule "A" is theSection 23 By-law Protocol.

2) Tarion will share an Annual Regulatory Plan with the Ministry each year,summarizing policy initiatives Tarion intends to pursue in that year. Tarion agreesto hold quarterly meetings with the Ministry to discuss proposals included in theAnnual Regulatory Plan, and to provide further information on the rationale,anticipated impacts, and timing of individual proposals as requested by theMinistry.

3) The Minister agrees to consult with Tarion with respect to any current or proposedgovernment legislation or policy that could directly impact upon the Act or couldi i ia~rc~ iaiiy a~ ic~.l U 1~ Vt.JCI ~UVI IJ VI I c11 IUI I.

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Governance Commitments

1) Tarion will provide its Annual Report to the Minister in accordance with the Act,within 120 days of the end of its fiscal year as and when possible, but no later thanwithin 150 days of the end of the fiscal year. Tarion will also provide sufficientcopies of the Annual Report for tabling in the Legislature and distribution tointerested MPPs. The Annual Report will be available for download from Tarion'swebsite.

2) Tarion will provide the Minister, no later than 120 days after the end of its fiscalyear, a business plan for the coming year.

3) Tarion will hold an annual public meeting, where the Board shall present its AnnualReport and audited financial statements, and report on Tarion's affairs of thepreceding year. The annual public meeting shall be open to the general public andthe Board shall make reasonable efforts to inform the general public of suchmeeting.

4) Tarion will continue to make improvements to its governance, and will summarizethe improvements each year in the Annual Report.

5) The Board will continue to appoint awell-respected major firm of publicaccountants to audit its books and records each year, and will also retain anindependent firm to provide an actuarial report as to the Liabilities Outstanding onClaims from Homeowners (policy reserves) as recorded in the financial statementsof Tarion.

6) Provisions for Liabilities Outstanding on Claims from Homeowners, as reflected inthe financial statements of Tarion, will generally be established in accordance withInternational Financial Reporting Standards (IFRS).

7) The President and CEO of Tarion and the Minister will meet as required in order todiscuss, consult and share information with respect to the business operations ofTarion. In addition, the President and CEO of Tarion will be available from time totime to meet with the Deputy Minister.

8) Tarion and the Ministry will hold at least one Liaison Meeting every quarter.

9) In accordance with current practices, Tarion will retain a qualified independentorganization each year to conduct a Board evaluation process.

10a) Nominations for Directors and Members shall be made in accordance with Tarion'sBy-law #1. The composition and terms for all members of the NominationCommittee will be included in Tarion's By-law #1.

10b) Each year the Nomination Committee will prepare a Skills Matrix, outlining theareas of expertise and personal strengths currently present on the Board ofDirectors and/or skills and areas of expertise which the Nomination Committeedetermines are needed to create awell-rounded mix of individuals best able towork together in the interests of Tarion and its stakeholders (the "Skills Matrix").

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10c) The Nomination Committee will take into account the skill sets identified in theSkills Matrix, in selecting the games that are put forward for positions on the TarionBoard.

10d) The Minister will appoint five of the 15 Tarion Board members in accordance withBy-law #1. The Minister shall also consider the skill sets identified in the SkillsMatrix, when appointing Directors to the Tarion Board.

10e) The first Skills Matrix has been developed and is attached to this Agreement asSchedule "B". The Skills Matrix will be updated annually and discussed at aLiaison Meeting prior #o issuance.

10~ The Nomination Committee may use an external executive search firm withexperience in Board appointments to identify the non-builder/non-ministerialcandidate (i.e. financial member) as nominees for the Board and with the approvalof the nominating party to identify other candidates.

10g) The Nomination Committee will be provided by November 30th each year with afully developed resume for each candidate, that outlines the strengths and skillsets of that individual, together with an outline of their career path indicating theirexperience and/or skills which wn~~l~f a~lrl val~~P to t(~eir rPrfor„-,?n~e ~~ ~ T~~ionDirector.

10h) The Minister shall have the right to designate members to the NominationCommittee in accordance with section 4.17 of Tarion By-law #1.

11) Tarion shall adopfi a binding Code of Conduct for its employees and Boardmembers to address the possibility of any individual advancing his or her personalor business interests or the interests of another organization. Tarion has postedthe Code of Conduct on its website, and the document is appended to thisAgreement as Schedule "C".

Operational Commitments

1) Tarion agrees to provide the Ministry with quarterly reports of key operatinginformation. Tarion and the Ministry will work collaboratively to identify the keyoperating information that is required and relevant, and will be discussed at LiaisonMeetings as required. Tarion will also provide the Ministry with an annual factsheet, that provides additional information required by the Ministry that may not becaptured in the quarterly reports (i.e. claims, fines, charges laid, convictions, etc.).Tarion's Key Performance Indicators (KPIs) may be updated annually and, if so,will be discussed at Liaison Meetings prior to issuance.

2) Tarion and the Ministry will maintain an Issues Management and CommunicationsProtocol. The protocol will outline the roles and responsibilities of Tarion and theiviinisfiry Tor preparing briering materials, speeches, responses to media enquiries,and handling homeowner or builder correspondence concerning Tarion. Theprotocol, appended to this Agreement as Schedule "D", was developed for the

Ministry's Delegated Administrative Authorities and Crown Agencies. AlthoughTarion does not fall into either of these categories, this protocol will be followed.

3} Tarion staff will be available as necessary to discuss any issues of concern raisedby senior Ministry staff and wilt meet as requested with such staff to exchangeinformation.

4) Tarion will employ a New Home Buyer Ombudsperson and will fil! any vacancy ofthe position as soon as practicable. The New Home Buyer Ombudsperson OfficeTerms of Reference is appended to this Agreement as Schedule "E".

5) Tarion will implement a Privacy Policy in respect of building permit information itmay receive from Ontario municipalities to combat illegal building by homebuildersthat fail to comply with registration and enrolment requirements under the Act. ThePrivacy Policy established for building permit information is appended to thisAgreement as Schedule "F".

Home Buyer Commitments

1) Tarion will use the principles in the Stakeholder Commitments document outliningthe organization's responsibilities to home buyers, employees, builders and thegovernment as the basis for its daily operations. Attached to this Agreement asSchedule "G" is a copy of Tarion's Stakeholder Commitments document. Anyfuture Tarion Mission Statement will take into account the principles expressed inthe Stakeholder Commitments document.

2) The position of New Home Buyer Ombudsperson is responsible for creating anannual report to be submitted to Tarion's Board of Directors. This report is asummary of the actions the Ombudsperson has taken on behalf of home buyerswith complaints about how Tarion handled their warranty files.

3) Tarion shall conduct a satisfaction survey of homeowners and builders at leastevery two years. The survey will be conducted by reputable third party consultantsusing a statistically relevant sample. The survey will include participants thatrepresent homeowners in all stages of warranty coverage. The annual report andweb site shall include a synopsis of the results of the client satisfaction survey.

Educational /Public Outreach Commitments

1) In order for Tarion to discharge its responsibility to communicate with homebuyers, it will maintain an annual budget designated for the purposes of homebuyers awareness advertising and related activities. Tarion will list all of itssignificant home buyer awareness activities in its Annual Report.

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2) Tarion will meet upon request with MPPs to describe Tarion's program and homebuyer pratectior activities. Tarim will also meek with any MPP with concernsabout Tarion, or as requested by the Minister.

Schedules

Schedules to this Agreement may be reviewed and updated from time to time. Anyproposed changes will be taken to a Liaison Meeting. Any agreed upon rep✓ised versionwil{ be dated and initialled by a representative of each party.

The Schedules are:

• Schedule A: Section 23 By-law Protocol

• Schedule B: Board Skills Matrix

• Schedule C: Code of Conduct

Schedule D: Issues Management and Communications Protocol

• Schedule E: The New Home Buyer Ombudsperson Office Terms of Reference

• Schedule F: Privacy Policy for Building Permit Information

• Schedule G: Tarion Internal Commitments

G

Tarion Warranty Corporation Ministry of Consumer Services

Howard BogachPresident and CEO

Date: NQ ve,-n be,r 2 ~ ~ z~r~ o

Tarion Warranty Corporation

Date: ~/~~ jv~i,- ~. S, 2r~1 a

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Schedule A — Section 23 By-law Protocol

Section 23 By-law Protocol

If Tarion proposes to make or amend a by-law under section 23 of the OntarioNew Home Warranties Plan Act (ONHWPA), then Tarion shall provide theMinistry of Consumer Services with the opportunity to review and comment onthe proposed by-law at least 30 days prior to any public posting of the proposedby-law for consultation. Tarion shall provide the Ministry with the followinginformation:

• The draft text of materials to be posted publicly;• The explanatory materials contained in the briefing package referred to in

paragraph (2) of this Protocol; and• A summary of any early stakeholder consultation.

2. To facilitate efficient evaluation of the proposed by-law, Tarion agrees to forwardto the Ministry one consolidated briefing package which includes:

• What is being proposed;• Why the new or amended by-law is needed;• Why the new or amended by-law is needed now;• The planned effective date;• The date the Board will consider the new or amended by-law;• Who will be affected by the change;• How those affected will be'impacted and their anticipated reaction;• Any cost or resourcing implications for Tarion, builders or home buyers;• What actions will be taken to alert and consult those affected;• What actions will be taken (if any) to limit the impact of the proposed new

or amended by-law; and• How the new or amended by-law will be implemented (e.g. Is

organizational change necessary? Are new policies, training required?etc. )

3. Both the 30 day time-period and the scope of the briefing package can be altereddue to extenuating circumstances with the approval of both parties.

4. The Ministry will submit formal written comments to Tarion in response to eachproposal within the 30 day time-period or the time-period agreed to by bothparties. The Board will review the Ministry's formal comments at a Boardmeeting prior to finalizing the new or amended by-law.

5. Tarion will inform the Ministry in a timely manner if the new or amended by-lawthat is approved by the Board is substantively different from the directionproposed in the formal written comments submitted by the Ministry.

6. Tarion will comply with the government's Twice Annual Effective Dates (TAED)policy, which specifies two dates in each year, January 1St and July 1St, when all

regulations (e.g. new, amending or revoking) that affect businesses will comeintc effect regardless of when they are approved.

7. Tarion will post all regulatory proposals, amendments and approved regulationsto the government's Regulatory Registry, in English and French, for a minimumperiod of 45 days, or for such period of time as is specified by the government forall ministries and which will apply to Tarion.

Schedule B —Board of Directors Skills Matrix

TARION WARRANTY CORPORATION

2014 DIRECTOR SKILLS MATRIX

DIRECTOR

000000000~~~~~~~

COMPETENCY/

SKIL

L________________

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________________

________________

________________

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a ti 9 M

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s•

________________

•

t

~ •

________________

•

1

~________________

________________

_____________-__I

•

•

• t

________________

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________________

________________

RATING SCALE

0 —Does not possess skill/experience

2 —Experienced: Has a good understanding and is able to strongly contribute to Board discussion

1—

Basic: Has some understanding or limited experience

3 —Expert: Has significant understanding and experience and can provide direction and leadership

Schedule C -Code of Conduct

Code of Conduct

At Tarion Warranty Corporation, we are entrusted with the responsibility of administering the Ontario New HomeWarranties Plan. This involves, among other things, registering and regulating new home builders and administeringand enforcing a statutory warranty plan to protect purchasers of new residential homes in Ontario from certain risks.These include builder failures or defaults such as substandard construction, faulty workmanship and materials,incomplete construction and loss of deposits. We also promote better communication between builders andpurchasers of new homes and seek to inform and educate new home buyers and builders about their rights andresponsibilities.

This Code of Conduct describes the fundamental principles that guide our behaviour. The code applies to allmembers of Tarion, including Board members, officers and employees. it is supplemented by other documents, publicportions of which are available upon request.

HONESTY AND INTEGRITYHonesty, integrity, fairness, respect and the absence of discrimination are fundamental to everything we do.

ACCOUNTABILITYWe sfrive for efficiency and effectiveness by meeting our commitments — balancing the urgency of issues, availabilityof resources and qualify of work.

CONFIDENTIALITYWe will receive and hold all personal and financial information in a confidential manner in accordance with applicablelaw and recognized best practices.

CONFLICT OF INTERESTWe will not permit our personal dealings to conflict with our Tarion responsibilities.

COMPLIANCEWe will abide by applicable laws and never knowingly do business outside those laws.

ENVIRONMENTWe are committed to a healthy co-existence with our environment.

Harry HerskowitzChairman, Board of DirectorsOctober, 2009

" 't.1 ~ ~6.. ii f

Howard BogachChief Executive Officer and President

Qctober, 2009

Schedule D -- Issues Management and Communications Protocol

NOTE: The protocol included as Schedule D was developed for the Ministry'sDelegated Administrative Authorities and Crown Agencies. Although Tarion does notfall into either of these categories, this protocol will be followed.

Policy &Consumer Protection Services Division's"General Communication Protocol" with the Ministry'sDelegated Administrative Authorities &Crown Agencies

Purpose:

■ This communication protocol provides a strategic and proactive framework f9r co-ordinatinga response to (a) an emergency or (b) emerging issue that affects the Policy &ConsumerProtection Services Division (PCPSD), Ministry of Small Business and Consumer Servicesand a Celegated Administrative Au~hc~ri~y (DAFT) or Crown Agencies (Agency).

• This communication protocol will also provide action-based guidance and practical advicefor people identified as being responsible for managing the early stages of an emergency oremerging issue.

Context:

■ This protocol will be initiated for both emergency and emerging issues that fall within theiegisiation cieiegated to the DAA/Agency to administer. Within the context of thiscommunication protocol:

(a) an emergency issue is defined as circumstances or events that are not anticipated,which require urgent and coordinated action because of actual/imminent threat to publicsafety, consumer protection, established accountability guidelines and governancestructure of the DAA/Agency, or the professional integrity of the ministry's regulatedbusiness sectors. Examples would include, but are not limited to:• fatalities and accidents• failure of an airline■ major loss of consumer funds as a result of situations relating to the regulated

industry sectors of the DAAs and the Agencies■ criminal activity or wrongdoing involving a registrant or licensee• state of provincial environmental or health crisis or security threat

(b) an emerging issue is defined as: anticipating when potentially a DAA/Agency'sbusiness practices, enforcement or non-enforcement action, registration or licensingdecisions; a DAA's registrant or licensee's behaviour; a DAA's regulated businessindustry publishes work or holds an event; or the media is pursuing a story that is likelyto spark public controversy or negative media coverage. Examples would include, butare not limited to:■ high profile investigations■ contentious discipline or Licence Appeal Tribunal, court or board decisions■ requests for media interviews regarding operational and or regulatory issues• media releases or inquiries regarding prosecutions or safety alerts• controversial industry associations newsletter, media releases or events■ industry studies/reports■ reports prepared by the offices of the Auditor, Ombudsman or Environmental

Commissioner

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Communication Structure:

Emergency Issue

■ The DAA/Agency (a senior official from the organization) immediately informs theDirector and Manager at the Sector Liaison Branch (SLB), PCPSD, who will in returninform relevant ministerial officials. The Director/Manager of the SLB will inform thePCPSD issues team (PIT) who will then commence working with the DAA/Agency staffto obtain all necessary information and prepare appropriate communication products.

■ The Director of the Communications Branch will inform 'its issues Management &MediaRelations (IMMR) team, who will work with the PIT to provide and support the Minister'sOffice with the necessary information and communication products.

Emerginp Issue

The DAA/Agency informs the appointed Policy Advisor and Manager at the SLBregarding any issue that may be emerging (or vice versa considering who acquires theinformation first). It is important to present the hard facts, chronology of events and anyrelated background information. The Manager/Policy Advisor, SLB (the PIT leads) willthen inform their Director and assemble the PIT members as required to address theissues) at hand. The PIT will also inform relevant ministerial officials appropriately.

• The PIT informs the IMMR and together plans the necessary communication products.The PIT ensures the PCPSD's senior management is informed of any issues.

■ The following chart illustrates the communication structure and flow for an emergency oremerging issue:

1. 2.■ DAA/ ~~ DirectodManager, SLB

Agency

3.

.,

:.................. _ ....... A c

IMMR

R:4.

~'•,~ PIT5. ~~• DAA/Agency

Staff

ADM,PCPSDExecutive Assistant,MinisterExecutive Assistant,Deputy MinisterDirector,CommunicationsBranchDirector, Legal ServicesBranchDirector, SLB

K3

2.DAA/Agency Policy Advisor, SLBstaff ,~„~.,~_ Manager, 5L6

3.■ Director, SLB

................................... r PIT

IMMR ~ ~' '

.'.~

4.`~~~■ ADM, PCPSD~. Director, Communications

Branch5.• ~ Executive Assistant, Minister■ Executive Assistant, Deputy

Minister• Director, Legal Services Branch

Role of the PCPSD Issues Team (PIT):

• The P(T is ieci by the appropriate SLB manager and co-led by a Policy Advisor, SLB. Theadditional team members contribute by providing their expertise on specific legis{ative andregulatory matters and media relations. Additional team members include:

o Senior Policy Advisor, Policy Branch;o Manager, IMMR, Communications Branch; ando Legal Counsel, Legal Seniices Branch.

The PIT is initially responsible for developing communication products —not for makingpolicy or decisions about resolving the problem. This team's respAnsibilities include:• Monitoring the situation• Paying attention to media queries and coverage.• Working with the appropriate administrators to develop message points and a

response strategy.■ Making the official spokesperson available to the media to respond to questions.■ Keeping administrators and others, as appropriate, within the organization informed.

Role of the DAA/Agency staff:

■ The DAA/Agency staff must identify a point person or team of staff from their organization totike responsibility for communicating and responding to any request for information from thePIT. This point person or team will then communicate internally within their organization todistribute and solicit appropriate information.

The DAA/Agency point person or team will have a similar role as the PIT, which is to informthe PIT of any emerging issues and assist with the development of the PIT's communicationproducts (in some cases provide the communication product). This point person or team'sresponsibilities include:■ Responding to media queries■ Sharing any knowledge of upcoming or published media coverage (including

broadcast news)■ Providing the PIT with any supportive information• :~:.:,p,ii ~y ~c~i ~ivi viii~..iaia vdiil 1111 tI ICII vi yai ii~caii~n inrormed.

Communication Deliverables:

■ Various communication products may be required to address the issue at hand. Questionsfrom both the media and the public should be anticipated, and answers should be developedthat include key messages and supportive statistical information. Although not all questionscan be anticipated, the objective is to be prepared for what can be anticipated and assertthe government's and DAA/Agency's position on the issue.

• The following chart will help summarize various communication products the PIT may beresponsible to develop and the necessary information from the DAA/Agency to address andrespond to an emergency or emerging issue.

Summary of issue and relatedbackground information

• Explanation of the position onthe issue

• Details of any action taken orwill be taking■ Supporting statistics:■ Enforcement• Complaints• Financial■ Drafted communication products

~ ~ ~~:~.I

■ Briefing note• House Book Note■ Qs & As■ Speaking Notes■ Presentations■ News release

■ Timing is a critical factor when preparing a communication product. In order toaccommodate tight timeframes, the DAA/Agency staff engaged in the communicationprotocol should make themselves available to respond to questions from the PIT andprovide any supportive information (i.e. enforcement or discipline statistics) in a timelymanner.

Transition:

■ As part of the issue management process, it is important to transition to developing optionsto remedying or prevent the issue at hand, post the point of incidence or exposure to thepublic. For example it may be necessary to conduct an audit, create a task force to reviewthe issue, modify an operational process, adopt a new policy, or amend a statute.

■ The PIT and DAA/Agency staff will be tasked to conduct such an analysis and determine theappropriate action to be taken.

Evaluation:

• After any emergency or emerging issue is managed, the PIT and the DAA/Agency shouldconvene apost-mortem to identify any lessons from which to enhance future responses.This can occur at regular scheduled liaison meetings between SLB and DAA/Agency staffmeetings.

Prepared by: Ben Valido, A/Senior Policy Advisor, SLB, PCPSDDate: October 2007

Approved by: Deborah Brown, A/Director, SLBBarry Goodwin, A/ADM, PCPSD

Date: October 11, 2007

Schedule E —The New Home Buyer Ombudsperson OfficeTerms of Reference

III TARIONOMBUDSPERSON OFFICE

Tarion New Homebuyers Ombudsperson OfficeTerms of Reference

1. MandateTarion Warranty Corporation with the approval of the Board of Directors, has established a New Home

Buyer Ombudsperson Office to receive complaints from homeowners who believe that they have been

treated unfairly, or improperly, or outside the "intent and spirit" of the Ontario New Home Warranties Plan

Act, and/or its Regulations.

The New Home Buyer Ombudsperson has the mandate to:

1, Receive, investigate and resolve complaints from homeowners about Tarion's conduct and whether it

accords with Tarion's own practices and procedures. In this regard, the Ombudsperson may make

recommendations to the CEO and/or Board of Directors relating to specific homeowner cases.

2. Act as a source of information, referral and education to assist homeowners in accessing existing

channels of assistance and redress within Tarion.

3. Identify complaint trends, policy matters and systemic issues and make recommendations for

improvements. The Ombudsperson may make recommendations to the CEO and/or Board of

Directors about any rule, policy, regulation or procedure which he/she deems appropriate.

2. Operating Principles

Independence &Impartiality2.1 The Office of the Ombudsperson (The Office) operates independently of all other departments in

Tarion. The Ombudsperson holds no other position within Tarion which might compromise his/her

independence. The Ombudsperson cannot have membership in any consumer advocacy, orbuilding industry organizations.

2.2 The Ombudsperson strives to be impartial, fair and objective in the treatment of people and theconsideration of complaints. The Ombudsperson advocates for fair processes and does notadvocate on behalf of any individual or organization.

2.3 The Ombudsperson reports to the Board of Directors through the Consumer Committee. For

administrative purposes, the Ombudsperson reports to the CEO. The budget for the Ombudsperson

Office is negotiated through the Consumer Committee. The Ombudsperson will select staff and

manage the budget and operations in the Office.

2.4 The Ombudsperson provides reports to each meeting of the Consumer Committee of the Board of

Directors, and will have In Camera sessions with this Committee. The Ombudsperson has direct

access to the Board of Directors, and can request confidential, In Camera sessions with the board.

New Homebuyer Ombudsperson Office

Terms of Reference — September 2014Page 1


2.5 The Ombudsperson exercises sole discretion over whether or how to act regarding an individual'sconcern, a trend, or concerns of multiple individuals over time.

2.6 The Ombudsperson may, on his or her own initiative, identify, investigate and makerecommendations on case-related or systemic issues within Tarion.

z.~ If a recommendation is not acted upon to the satisfaction of the Ombudsperson, the Ombudspersonmay report to a higher authority within the organization.

2.8 The Ombudsperson has access to all information and all individuals in Tarion.

2.9 Communications to the Office will not be considered as notice to Tarion for any of its warrantyprocesses, including Warranty Form submission, requests for conciliation inspection, or requests fora decision letter. This communication will be prominent on the website, literature and communicationfrom the Ombudsperson,

Confidentiality

2.10 The Office will not divulge information provided by complainants without their consent, except incases of imminent danger or as required by law. The Office will seek consent to divulge informationnecessary to work to resolve a complaint. Incases where the consent is not given, the complaint willbe kept confidential.

2.11 Complaints to the Ombudsperson will be kept confidential if the complainant requestsconfidentiality. Under these circumstances the scope of the investigation will be limited to thatinformation that can be obtained in a confidential manner. Reporting to complainants may also belimited as a result,

2.12 Communications between the Office and others are intended to be privileged; we are of the view thatthe privilege belongs to the Ombudsperson and the Office, not to any other party including thecomplainant.

2.13 The Ombudsperson antl staff may assert privilege in order to avoid testifying in any internal process,before the Licence Appeal Tribunal, in any external legal process unless compelled by law. (Suchprivilege is not yet recognized at law and may or may not be accepted.)

2.14 The Office makes every effort to protect information collected by it. As such, all files are secured andaccess is limited to the Office's staff only.

New Homebuyer Ombudsperson OfficeTerms of Reference — September 2014

Page 2


Informality 8~ Accessibility

2.15 The Ombudsperson functions informally. The Ombudsperson seeks to resolve complaints in a timely

and effective manner, ideally at the lowest level. The Ombudsperson does not replace any formal

complaint processes. Use of the office is voluntary, and is not a required step in any complaint

process or policy.

2.16 The Ombudsperson does not make warranty decisions, mandate policies, or formally adjudicate

issues for Tarion. He/she makes recommendations to management, and the CEO, Consumer

Committee and the Board of Director.

2.17 The Office has the authority to investigate complaints and make recommendations; however it may

also be used if an individual needs assistance in identifying how to resolve a complaint; would prefer

to discuss a problem with an impartial third party; or has already gone through established channels

without satisfaction.

2.18 Complainants and individuals who participate in any way in an investigation, will be free from

reprisals, and will not be denied any rights, privileges or benefits because of such actions.

Fairness

2.19 The Ombudsperson promotes and protects fairness within Tarion,

2.20 Ombudsperson will articulate standard of fairness to act as the basis for its assessment of fair

processes, and as an educational tool.

2.21 The Ombudsperson will ensure that the office conducts its work in a fair way. It will respect the

right to fairness of those who complain, and those responding to complaints. During an inquiry or

investigation and in making recommendations, the Office will observe the principles of natural justice,

and administrative and procedural fairness.

Reports

2.22 The Ombudsperson will periodically provide reports and statistical summaries to Management and

the Board of Directors. Reports may include statistics, case studies of complaints, investigation

reports, summaries of recommendations made by the Office, and action taken by Tarion.

2.23 The Ombudsperson may issue reports to the CEO and the Board of Directors, concerning any

investigation, on the implementation of any recommendations, or any other matter within the mandate

of the Ombudsperson.



I11 TARIONOMBUDSPERSON OFFICE

Limits

2.23 The Ombudsperson shall not pursue any matter where the subject matter of the complaint isinvolved in legal proceedings with Tarion and/or his/her builder including proceedings in court, theLicence Appeal Tribunal, or other formal dispute resolution forum.

2.24 The Ontario New Home Warranties Plan Act enforces specific warranties deemed to be given bythe builder on new homes. If a complaint relates to requests for relief outside of the Warranty Plan,it is outside the mandate of the Ombudsperson.

2.25 Complaints that relate to privacy concerns will be directed by the Office to Tarion's designatedPrivacy Officer.

2.26 Allegations of employee impropriety will be directed to Tarion's Human Resources department.

3. ombudsperson Complaint Process

Each complaint will be assessed when it is received to determine how and where the complaints can bestbe addressed.

Generally, complaints fall into one of three categories.

A. Complaints within the Ombudsperson's mandate, but prematureB. Complaints within the Ombudsperson's mandateC. Complaints outside the Ombudsperson's mandate

A. Complaints within the Ombudsperson's mandate, but premature.

The Office requires that complainants try first to resolve the complaint by working within Tarion's complaintprocess. Complaints received by the Office under these circumstances are redirected to the appropriatemanager.

1. Items not addressed by the departmentIf a complainant has already been to a manager, but they did not specifically address one or more ofthe concerns, the Office may ask the department to address them first.

2. New issues raised by the complainantIf in the course of looking into a complaint, a new issue is raised, then the Office will assess thecomplaint, and determine the most appropriate process to resolve the concern.

Z ~lhvin~~c ~rrn r~v. vvr~vua ~~ via

If there is an obvious error, the Office will contact the department to make the correction.


Page 4


Premature complaints maybe resubmitted to the Ombudsperson if complainants are dissatisfied with the

department's handling of the concerns.

B. Complaints within the Ombudsperson's mandate.

Early resolutionEarly resolution involves intake and documentation of complaints, identification and clarification of issues,research and analysis; attempts to resolve complaints using a variety of conflict resolution techniques and

strategies. If appropriate, the Office will use an early resolution process to deal with complaints that can be

resolved without a formal investigation.The Ombudsperson may in his or her discretion decide not to act upon a complaint if:

(a) The subject-matter of the complaint is trivial;(b) The complaint is frivolous, vexatious or is not made in good faith;(c) The complainant does not have sufficient personal interest in the subject-matter of thecomplaint.

If additional information is needed, the Office may request that information from the homeowner, and or

Tarion departments, to assess whether an investigation is warranted.

The Ombudsperson Office will review the information available and determine if the complainant has been

treated fairly. If the complainant has been treated fairly, then the Ombudsperson office will communicatethe findings to the complainants, and no further investigation will be done.

InvestigationComplaints in this category will be investigated using all the information made available by the homeowner,and all information available to Tarion. The objective of the investigation is to resolve issues and improve

Tarion's processes and policies, not to lay fault.

The Ombudsperson will determine the scope and methodology of the investigation.If, after conducting an investigation, the Ombudsperson finds the subject-matter of the investigation was.

(a) Contrary to the New Home Warranties Plan Act;(b) Contrary to Tarion's own policies and procedures;(c) Based wholly or partly on a mistake of law or fact; or(d) Based on improper exercise of discretionary power(e) or Otherwise unfair

the Ombudsperson will, subject to confidentiality and privacy requirements, communicate the findings, and

any recommendations to the complainant, and relevant department. If the Ombudsperson finds that the

complaint is unfounded, he/she will provide reasons to support the finding.



111 TARIONOMBUDSPERSON OFFICE

C. Complaints outside the Ombudsperson's MandateWhen complaints are outside the mandate, the office will inform the complainant, and where possible refercomplainants to an appropriate resource.

4. Terms of Reference

4.1 The Ombudsperson is responsible for ensuring the office operates in a manner consistent with theTerms of Reference for the Office.

4.2 The Ombudsperson will review the Terms of Reference for the Office with the Consumer Committee ofthe Boartl on an annual basis.

5. The Tarion Way

5 Tar;or has ;nstituted a customer service program called "Thy Tarion'JUay." T"2 program emphasisesfive principles: Fairness, Logical, Listening, Caring and Team Work. Staff in the Ombudsperson officewill be trained in the Tarion Way, and will incorporate the principles into its complaint resolution, andoutreach activities.

6. Complaints about the Ombudsperson

6.1 The Ombudsperson will develop a complaint policy for the Ombudsperson office.

6.2 The policy will be clearly posted on the website for the Office.

6.3 The Ombudsperson will report on complaints about the office to the Consumer Committee of the Boardof Directors.

e.4 Hiiegaiions or impropriety in respect to the umbuasperson sna~~ be brought to the attention of the (;hairof the Consumer Committee of the Board of Directors through the Corporate Secretary. Each allegationshall be investigated. The means and methods of the investigation shall be at the discretion of theChair.

6.5 The allegation and the results of the investigation will be disclosed to the Ombudsperson, who shall begiven the opportunity to respond to the allegation and the results of the investigation in within areasonable time established by the Chair. The matter will be taken before the Consumer Committee,who will make a recommendation to the whole Board of Directors on the disposition of the matter.


Page 6

Schedule F - Tarion Warranty CorporationPrivacy Policy for Building Permit Information

Privacy Policy for Building Permit Information

Definitions

"BP Information" means any building permit information that is personalinformation about an identifiable individual transmitted by municipalities to Tarioneither electronically or otherwise pursuant to section 8 (8.1) of the Building CodeAct, 1992 (Ontario).

"Tarion" means Tarion Warranty Corporation or any designated successor orentity which administers the Ontario New Home Warranties Plan Act.

Accountability

Tarion will manage BP Information in accordance with its privacy policy includingthis Schedule. Tarion has designated a Privacy Officer who is responsible foradvising the organization on matters relating to compliance with Tarion's privacypolicy and the matters noted in this Schedule. The contact information forTarion's Privacy Officer is shown on Tarion's website.

The ongoing collection and use of BP Information will also be the responsibil"rty ofother individuals within Tarion, for example, members of Tarion's Enforcementgroup and Information Services group. All Tarion employees will be required toabide by Tarion's privacy policy and this Schedule in connection with BPInformation.

Purpose

BP Information shall only be collected and used by Tarion for purposes of lawenforcement under the Ontario New Homes Warranties Plan Act including inconnection with the related inspections, investigations and prosecutions.

Disclosure of BP Information

Tarion may use BP Information without prior consent or knowledge of theindividual to whom the information. relates, if:

• BP Information is used for purposes relating to ongoing investigation orenforcement activity of Tarion under the Ontario New Home WarrantiesPlan Act;

Disclosure is made pursuant to a written agreement between Tarion andfihe third party, if such third party needs the information in order to assistwith ongoing investigation or enforcement activity of Tarion under theOntario New Home Warranties Plan Act. The agreement shall require the

2

third party to comply with Tarion's policies relating to BP Information andt~ have placed security safeguards comparable to those used by Tarion.

■ Tarion is required by law to disclose such BP Information; and/or

■ Failure to disclose such BP Information could reasonably be expected tothreaten life, health or security of an individual.

Use of BP Information

Tarion may use BP Information without prior consent or knowledge of theindividual to whom the information relates, if:

■ BP Information is used for purposes relating to ongoing investigation andenforcement activity of Tarion pursuant to the Ontario New HomeWarranties Plan Act;

■ A third party may use BP Information pursuant to a written agreement~etwee~ ~ ~ ariv~ a►~c~ the Third party, if such third party needs theinformation in order with ongoing investigation or enforcement activity ofTarion under the Ontario New Home Warranties Plan Act. The agreementshall require the third party to comply with Tarion's policies relating to BPInformation and to have placed security safeguards comparable to thoseused by Tarion.

Access to BP Information

Subject to the permitted disclosure noted above, BP Information will not bedisclosed to the public generally but will be available to the individual to whom itrelates at minimal or no cost.

Individuals requesting BP Information which relates to them will be directed to thePrivacy Officer who will guide them through the steps required to obtain such BPInformation.

If for any mason Tarion releases BP Information contrary to the terms of thisSchedule, Tarion will use reasonable efforts to contact individuals affected,advise them of the circumstances and take reasonable steps to retrieve such BPInformation.

An individual to whom the BP Information may relate will be entitled to address achallenge concerning compliance with the privacy policies relating to BPInformation to Tarion's Priva~v (~fFi~Pr.

Safeguards

Subject to the disclosure provisions noted above, BP Information shall beprotected by the following security safeguards:

■ BP Information will only be available to employees of Tarion who requirethe information in order to perform their duties.

■ BP Information in an electronic format will be received directly to adatabase accessible only by Tarion's Enforcement group and InformationSystems personnel.

■ BP Information in a hard copy format will be received, opened and storedby Enforcement personnel.

Tarion will take all reasonable steps to ensure that BP Information is kept securefrom loss and theft.

Retention of BP Information

BP Information may be stored in electronic format or in hard copy format.

BP Information will be destroyed or deleted no later than three years from receiptof such BP Information unless such BP Information becomes the subject of anenforcement proceeding, in which case it will be destroyed no later than sixmonths following completion of such proceeding or any appeal from thatproceeding.

[Note: This Schedule will form part of Tarion's .Privacy Policy and will bereproduced on Tarion's website. A hard copy of this Schedule will be providedupon request.]

G~

Schedule G — Tarion Internal Commitments

III TARIONPROTECTING ONTARIO'S NEW HOME BUYERS

Our Mandate

Tarion Warranty Corporation5160 Yonge Street, 12" Floor

Toronto, Ontario M2N 6L9

Toll-Free: 1-877-982-7466www.tarion.com

• Tarion Warranty Corporation was created in 1976 to provide for the registrationof new home builders and a warranty plan to protect purchasers of newresidential homes in Ontario from certain risks associated with the homepurchase. The Ontario New Home Warranties Plan Act (the "ONHWP Act") isconsumer protection legislation.

• The overall mandate of Tarion is to administer the Ontario New Home WarrantiesPlan Act which includes...

■ Protecting new home buyers from builder failures or defaults(e.g.,substandard construction, faulty workmanship and materials,incomplete construction, loss of deposits and prepayments), through thedevelopment, promotion and administration of warranties and relatedprograms.

■ Promoting better communication between the builders and purchasers ofnew homes.

■ Providing new home buyers with a forum for complaints about builders andassist their expeditious and equitable resolution.

■ Establishing and administering a guarantee fund providing for the paymentof compensation under the Plan.

■ Informing and educating new home builders, and through researchprograms promoting progressive improvement in the quality of housing inOntario

Our Stakeholders

Direct Stakeholders(those directly affected by our actions)

• Employees

• New Home Buyers

• New Home Builders

• Board of Directors

• Government

Indirect Stakeholders(intermediaries who are indirectly affected by our actions)

• Media• Financiallnstitutions• Advocacy Groups• Real Estate Lawyers• Mortgage Brokers• Municipal Building Officials• Home Inspectors• Real Estate Agents

Our Commitment to New Home Buyers

• We protect by regulating the industry, and providing an effective andmeaningful warranty program.

• We work with the industry to improve quality of homes in Ontario.

• vve educate so that homeowners and potential new home buyersunderstand the benefits and limitations of the new home warranty.

• We promote timely, transparent and cost effective resolution to disputesabout warranty coverage that arise.

• We act without bias in all of our interactions with both builders andhomeowners.

• We advocate for home buyers collectively by ensuring consumerrepresentation is part of our policy makif~g anc~ ~y providing sp~ciTicavenues and tools for consumer advocacy.

Our Commitment to New Home Builders

• We educate builders on the issues that most impact consumers andbuilders' obligations under the Act.

• We act without bias in all of our interactions with both builders andhomeowners.

• We work cooperatively with the building industry to enhance andmaintain a strong industry reputation.

• We work cooperatively with the building industry to research and addressimproving builder standards.

• We act in good faith and with the consumer and industry in mind whenwe license or revoke a builder's license.

Our Commitment to Employees

• We operate in a responsible and business-like manner in order to provideemployment stability

We create a work environment that emphasizes:■ Engagement■ Training &Development■ Employee Satisfaction■ A Positive Sense of Contribution■ Coaching■ Communication

Our Commitment to Government

• We responsibly administer the Ontario New Home Warranties Plan Act.

• We operate in an open and transparent manner.

• We treat both builders and homeowners fairly.

• We work with all levels of government to proactively protect homeowners.

• We act in the public interest.

accountability agreement - tarion · this accountability agreement between the minister and tarion...

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