The taxpayer and her husband built a house, which was near Lake Huron and a 2 ½ hour drive from their Brampton rental apartment and full-time employment, doing a large portion of the work themselves on weekends beginning in 2008, with the intention to retire there. The municipality issued a first occupancy certificate on March 14, 2014, which noted various minor matters requiring completion. From then on, they lived in the house on weekends, and received a final occupancy permit on September 25, 2015. She did not claim the federal and Ontario new housing rebate until May 31, 2017.
Jorré DJ confirmed the denial of the rebate claims on two alternative grounds: first, the application was not submitted within two years of the day of substantial completion, as required by s. 256(3)(a)(iii); and, second, the new house was not constructed for use as the taxpayer’s primary place of residence, as required by s. 256(2)(a).
Respecting the first ground, he stated (at paras. 23, 29-30):
While the first occupancy certificate is not in itself determinative, the fact that it permits residential occupancy combined with the relatively minor list of items that are required to be done before issuance of a final certificate are significant factors to be considered.
Considering the situation overall, although there were still some things to be done, compared to what had been done, what had yet to be done was very modest in scope. I would also add that certain items are not necessary for there to be a completed house. Also, the Appellant and her husband were clearly able to live in their house by the end of March 2014.
I find that, prior to May 31, 2015, the new house was substantially complete.