Homeowners scramble after Calgary tiny home builder folds

Scrambling to salvage their investments Customers paid for tiny homes but are coping with huge headaches after a Calgary company told them they're going out of business.

Customers paid for tiny homes but are dealing with huge headaches after a Calgary company told them they are going out of business.

"It's been a really stressful situation," Amanda Webb said.

Webb paid $166,000 to builder ZeroSquared for a tiny home, which was supposed to be ready in 60 days.

That was a year ago and it's still not done.

Now, the seven-year-old company says it's closing shop and giving customers a week to pick up their unfinished homes.

"They got my $166,000 right from the start and I believe they might have used that for other builds before mine and, you know, it's frustrating," Webb said.

The tiny-home company sent CTV News a statement explaining its mission is to help with Canada's housing crisis but that it is facing a harsh economic environment including the abrupt cancellation of a significant sales agreement.

"While ZeroSquared has had to make the tough decision to cease operations due to financial difficulties, we are continuing to review options to address unresolved customer concerns," the statement said.

Edmonton company Macey Built Tiny Homes has stepped in to help another customer who lives in Ontario.

"It's sad and honestly, I don't know how things transpired with ZeroSquared," said Macey Cook of Macey Built.

Lianne Haberman of Ontario is grateful for the help but is scrambling to salvage her investment.

"$200,000-plus without a home and now having to get more money to either finish the home or sell as-is is a terrible position to be in," she said.

Both Haberman and Webb say rent and storage costs have stacked up since both were supposed to be living in their homes months ago.

"I mean, it's been super stressful being in this situation of not having somewhere to live and having to pay rent because I'm already having to pay for this house. They received the entire amount on purchase," Webb said.

She was also contracted to do social media work for ZeroSquared and has not been completely paid.

"So double-whammy with not having the house complete and also the money from doing that work," she said.

Both homeowners say they got financing to pay the entire amount before the homes were built and are warning others not to do the same.

"Make sure you're protected and you're not giving them all the money upfront, and the money is going toward building your home," Webb said.

Cook echoed that message.

"Do a reasonable deposit and do progressive payments at each state of the build," she said.

While the tiny homes are moving, their residents won't be moving in anytime soon.

"I feel incredibly disappointed and taken advantage of," Haberman said.

Webb is hoping to find someone local with expertise to help complete the build.

Both homeowners expect they may need to invest between $30,000 and $50,000 more to finish the homes.