Regulator freezes Highbridge Construction assets, suspends licence

The regulator in charge of home construction in Ontario is freezing the assets of an Ottawa company that abruptly shut down, leaving homeowners, contractors and employees in the lurch.

The Home Construction Regulatory Authority said Tuesday it is freezing the assets of Highbridge Construction, which suddenly ceased operations earlier this month. The company's licence has also been suspended.

"A licensed home builder is expected to be financially responsible," HCRA CEO and registrar Wendy Moir said in a news release. "We are determined to find out what happened, and especially what happened to the purchasers' deposit funds.

"Highbridge Construction claims that the money is gone but will not provide the HCRA with any documentation to back up those claims."

The Orléans-based construction company suddenly closed its doors Feb. 3, walking away from half-built homes and renovation projects worth hundreds of thousands of dollars.

Homeowners, employees and contractors have all said they are owed thousands of dollars. The company also owes its landlord $106,000 rent for its storefront space on St. Joseph Boulevard, according to a notice of distress posted on the door.

Ottawa police have launched an investigation into the company. The owners have not responded to requests for comment.

The HCRA is the regulator responsible for licencing companies that build and sell new homes in Ontario. Although Highbridge was mostly doing home renovations, it was licenced as a new home builder and had at least five new construction projects underway, the HCRA said.

"The HCRA is particularly concerned that deposit money was taken from purchasers as part of these projects but was not returned as the company claimed insolvency," the news release said.

After CTV News reported on Highbridge's sudden closure, the HCRA started an inspection that included demands for records and answers about the status and location of deposit funds. 

When the company failed to comply with that inspection, the HCRA issued an 'immediate compliance order' along with a licence suspension and an order requiring them to hold all assets and funds.

"These are extraordinary remedies, but we will do everything possible to protect consumers from unethical conduct by builders and vendors," Moir said.

The HCRA told CTV News Ottawa it could not provide specifics on the amount of assets seized.

"To date, the HCRA has issued orders to freeze multiple bank accounts associated with Highbridge Construction. At this point, we cannot provide specific details on the amount," a company spokesperson said. 

The HCRA is urging anyone who has bought a new home or engaged in a financial transaction with Highbridge or anyone associated with them to contact them.