Ann Arbor landlords and climate advocates clash over proposed Green Rental Housing Ordinance

Dozens of landlords and property managers warned the Ann Arbor City Council on May 5 that the proposed Green Rental Housing Ordinance, as written, would impose significant compliance costs and could push small owners to sell rental properties, shrinking the city's housing supply.

The matter drew lengthy public comment from rental-industry speakers and sustainability advocates during the meeting's public comment period, with speakers asking council to delay a vote while the city collects more HERS (Home Energy Rating System) pilot data and identifies funding or incentives to support small landlords.

Amy Conley, a rental property manager who said she has worked with Reinhardt in Ann Arbor for 14 years, told council, “The scoring system heavily favors electrification, which appears to be a work around after the city's failed attempt to ban gas appliances.” She added the ordinance's FAQ that expects “many rental units will be able to achieve the requirements ... with little to no cost or effort” showed, in her view, a lack of experience with the local rental market.

Several property managers described concrete cost examples. One speaker said two otherwise similar units showed a roughly $30-per-month increase for an all-electric unit under DTE's budget plan. Angela Rasmussen, who said she manages 75 properties countywide, estimated that converting a furnace or water heater to electric could require electrical-panel upgrades that run “upwards from a thousand to $4,000 cost per larger appliance.”

Speakers representing landlords urged council to allow more time and incentives rather than penalties. Morgan Detve, director of a property management company working across Ann Arbor, recommended the city provide incentives, longer compliance timelines and more accessible waiver options so that small owners are not forced to sell.

By contrast, Melissa Spitz, program manager for the Washtenaw Ann Arbor 2030 District, said she supported the ordinance and emphasized its flexibility. "Rental units in good condition with very basic energy savings measures like insulation are likely to meet the requirements of the ordinance already," she said, noting that rentals make up “55% of Ann Arbor's housing stock.” Mark Scurbo and Ken Garber, both residents and tenants advocates, told council the checklist option in the ordinance allows low- or no-cost steps that many landlords can take.

Several speakers asked council to pause a final decision until HERS data from the four pilot properties are published so the city can estimate actual compliance costs across older housing types, especially lower-rent units that make up much of the city's older rental stock. "If compliance isn't feasible for many properties, we're going to risk losing some of those affordable units," said landlord Jordan Lehi.

The public comment record at this meeting was advisory; council did not vote on the ordinance during the May 5 meeting. Council members and staff were repeatedly asked to clarify the city's planned incentives and rebate programs, and to provide a clearer estimate of out-of-pocket costs for different conversion types, particularly for single-family rentals and older multiunit buildings.

Council members will have the ordinance, public comments and pilot HERS scores available before the next steps. Several speakers urged the council to prioritize funding supports from the city to reduce compliance costs for small landlords and preserve low-rent units.

The remarks came during the public comment period and were not part of a council vote at the May 5 meeting.