HOUSES SUFFER DAMAGE FROM GROW-OP ACTIVITIES

Imagine buying a new home, the smell of new paint still lingering in the air.

You begin to hang pictures on your walls but discover they won't stay
up. The walls are too "mushy." You peel away the new paint and
wallpaper to find layers of mould lining the inside of your home. If
you knock on your neighbours' doors, you'll discover that your house
was raided by police not long ago.

You're living in what was recently the home of a marijuana grow-op.

That scenario happened to one Canadian family, said Marie Dyck,
senior fraud advisor for Canada Mortgage and Housing Corporation (CMHC).

Dyck spoke Friday in Saskatoon to a group of lenders, brokers and
real estate agents on how to avoid lending money to grow-op
operators. She also spoke about trends in clandestine narcotics labs
and marijuana growth.

"We've seen quite a bit of it here in Saskatoon lately," she said. In
particular, "it seems to be a hotbed for meth, which is going to be
the new grow house, I think."

Grow-op operators use fraudulent means to mortgage homes for
narcotics production because it offers low startup costs, less risk
of detection, quicker production time and easier distribution, she said.

"I don't find it surprising at all that a criminal would use
fraudulent means to obtain title to a home, because they don't want
to use their own money," said RCMP spokesperson Corp. Brian Jones.

"They are very well aware that sometimes we go after the proceeds of
the crime as well as the property of the crime."

As part of a marijuana grow-op, carbon dioxide is pumped into the
house to help the plants grow, and ozone gas is generated to mask the
odours. The chemicals used in production can permeate walls, carpets,
plaster, wood and surrounding soil, Dyck explained.

The home Dyck used as an example appeared fine on the outside, but it
had only undergone cosmetic repairs -- mainly fresh paint and
plaster. The people who purchased the home had their young son
sleeping in the room where the marijuana nursery had been, she said.

Currently, there are no standards in place on how to properly
rehabilitate a grow-op house.

"The lenders were asking us 'What do I do? How do I make this house
safe? What is necessary?' " Dyck said.

CMHC has conducted research into how grow-op houses are affected by
the process and what needs to be done to fix the problems. Its
findings should be released later this year.

"This is a serious issue across the country," said CMHC spokesperson
Denys Chamberland.

For those looking to purchase a home right now, "we have a
step-by-step guide for home buyers in terms of what professionals are
out there, in terms of helping them to purchase a home," Chamberland said.

"And one of the professionals available are inspectors. So one of the
things consumers can consider in the (purchasing) of the home is
getting an inspection so they become aware of any previous issues or
existing issues with the property."