Sunshine Coast Distillery Inc., Hongquan Lu and Shitao Lu

Sunshine Coast Distillery Inc. (“SCDI”), Hongquan Lu (“H. Lu”) and Shitao Lu (“S. Lu”), contrary to sections 14(1) and 22(1) of the Homeowner Protection Act (the “Act”), commenced construction on 25 new homes in Powell River, BC (collectively, the “New Homes”), sometime prior to, or about, March 2022 without being a BC Housing (“BCH”) Licensed Residential Builder (“LRB”) and without each of the New Homes being registered for coverage by home warranty insurance (“HWI”) provided by a warranty provider. On September 29, 2022, BCH issued Compliance Order 22-0017 to SCDI, H. Lu and S. Lu directing SCDI, H. Lu and S. Lu to:

• ensure all construction activities cease on the New Homes; and
• immediate either
  1. become a LRB pursuant to section 14(1) of the Act, and register each of the New Homes for coverage by HWI provided by a warranty provider pursuant to section 22(1) of the Act;
  2. provide BCH Compliance Department with proof that each of the New Homes is enrolled in a policy of HWI pursuant to section 22 of the Act; or
  3. arrange for a restrictive covenant to be registered on the title to the property on which the New Homes are located restricting the sale or other disposition of any dwelling units on the property for 10 years from the date of first occupancy of one of the dwelling units pursuant to section 2(2.1) of the Homeowner Protection Act Regulation.

SCDI, H. Lu and S. Lu were ordered to comply with Compliance Order 22-0017 by November 18, 2022.