Overview
- A Green Rental Housing Ordinance in Ann Arbor was unanimously passed by Ann Arbor City Council on Monday, June 16th. It was developed in partnership with a task force composed of environmental advocates, housing professionals, and community members. The ordinance is part of Ann Arbor’s A2Zero initiative to achieve carbon neutrality by 2030.
- The ordinance will require all rental properties—about 23,000 units across the city—to meet minimum energy efficiency standards before landlords can renew their rental licenses, but there is flexibility in achieving compliance. Property owners would have to either complete a city-provided checklist of energy-saving measures or obtain a qualifying third-party energy assessment such as a HERS, or Home Energy Score.
- The ordinance is framed as both a climate and equity measure. Buildings contribute roughly 40% of Ann Arbor’s greenhouse gas emissions, and more than half of city residents are renters. Supporters argue the ordinance will reduce emissions and lower tenant utility bills by 20-30% over time, especially in older, poorly insulated buildings. The city also claims that improving rental housing quality will yield public health and comfort benefits.
- However, the proposal has met pushback from some landlords and housing advocates because of the anticipated costs of upgrades. Some landlords warn these costs could raise monthly rents by $400 to $800 or cause some units to be withdrawn from the market entirely. Tenant groups, while supporting the environmental goals, caution that affordability protections are needed to prevent displacement, especially in a city where median rent for a one-bedroom unit now exceeds $1,800.
- Ann Arbor’s ordinance may serve as a test case for how far cities can go in aligning housing regulation with aggressive climate goals.
Transcription
David Fair: The City of Ann Arbor continues to push forward with its ambitious carbon neutrality goals. I’m David Fair, and welcome to this week’s edition of Issues of the Environment. The city has set a deadline of reaching carbon neutrally by 2030 with its A2Zero initiative. The latest move is called the Green Rental Housing Ordinance, and it targets more energy efficiencies among the 23,000 or so rental properties in Ann Arbor. Landlords and concerned community members fear it could drive up the cost of rents in a city that already lacks enough affordable housing. Our guest this morning says that simply isn’t so. Missy Stults is director of Ann Arbor’s Office of Sustainability and Innovations. And welcome back to WEMU, Missy!
Missy Stults: Hey, thanks for having me! It’s a pleasure!…