2301402 Ontario Limited and Jake’s House Community Residences, Receivership

2301402 Ontario Limited and Jake’s House Community Residences (“JHCR”) were placed into receivership on May 14 on application by MarshallZehr Group, owed over $38 million.

2301402 Ontario owns the real property known municipally as 133, 135, 139, 141, and 143 Main Street, Lucan, Ontario. JHCR is a Mississauga, Ontario-based not-for-profit corporation which operated under the umbrella of Jake’s House for Autistic Children, a registered Canadian Charity dedicated to supporting individuals on the autism spectrum and their families through various services. A portion of the real property (139 and 141 Main Street) is the site of a 54-unit rehabilitative healthcare and seniors’ residential facility completed in 2012 (the “Lucan Facility”).

In 2020, JHCR purchased all of the shares of 2301402 Ontario from a special purpose entity owned and controlled by MarshallZehr, thereby acquiring control of the Lucan Facility.

In 2022, JHCR entered into a funding agreement with the Government of Ontario under which the Ministry of Children, Community and Social Services provided approximately $7,000 for each autistic resident of the Lucan Facility.

In 2024, MarshallZehr was made aware that the Government of Ontario had raised concerns regarding JHCR and that such concerns were material enough to warrant a Treasury Board audit. Following the audit, the Ministry terminated the funding agreement with JHCR, effective December 3, 2024, citing ongoing compliance concerns. Following the termination of the funding agreement, JHCR lacked the funds to continue to operate the Lucan Facility. Accordingly, on February 12, 2025, the Lucan Facility’s 27 residents with autism and 5 senior residents were informed that they needed to find alternate housing by the end of that week. In March, MarshallZehr demanded payment of the loan and arranged for the locks to be changed at the Lucan Facility to preserve and protect the property.

TDB is the receiver.

Counsel is Chaitons for MarshallZehr and the receiver.