July 9, 2026
The Home Construction Regulatory Authority (HCRA) has suspended the Ontario home builder licence of Spring Garden Homes Inc. and laid eight illegal building charges against Goldentrust Development Inc. and its Principal, Director, and Officer, Peng Zhang, following investigations into unaccounted purchaser funds and alleged unlicensed building activity.
The enforcement action follows a complaint from a homebuyer and reinforces the HCRA’s commitment to protecting consumers and maintaining accountability within Ontario’s residential construction industry.
The HCRA investigation began after a homebuyer alleged that more than $31,000 paid to Goldentrust for new home warranty enrolment could not be accounted for. The purchaser later discovered that Spring Garden Homes, another company led by Zhang, had applied for the home’s warranty enrolment despite the buyer not being informed of its involvement.
As part of its investigation, the HCRA requested banking and financial records from Spring Garden to trace the funds and clarify the relationship between the two companies. According to the regulator, the company provided contradictory information and failed to adequately explain the movement of purchaser funds despite multiple requests.
As a result, the HCRA concluded that Spring Garden could not reasonably be expected to conduct business responsibly and suspended its licence. Effective February 14, 2026, the company is no longer permitted to build or sell new homes in Ontario.
The HCRA also laid eight Provincial Offences Act charges against Goldentrust Development Inc. and Peng Zhang. The charges relate to the construction of two homes and include allegations of:
Both are mandatory legal requirements for new home construction in Ontario. The matter is scheduled to be heard before the Ontario Court of Justice on July 10, 2026.
HCRA CEO and Registrar Wendy Moir emphasized that financial responsibility is a fundamental requirement for licensed home builders and essential to maintaining consumer confidence.
The HCRA also warned against the use of related companies to circumvent Ontario’s licensing requirements, stating it will continue to take enforcement action where necessary to protect the public.
Before purchasing a newly built home, the HCRA encourages consumers to use the Ontario Builder Directory to verify a builder’s licence status, review past conduct, and identify any related companies. Checking a builder’s credentials can help homebuyers make informed decisions and ensure they are working with a properly licensed and financially responsible builder.
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