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Property manager warns green rental ordinance could raise rents and prompt sales of small landlords' units
Summary
During public comment, Evelyn Roberts, a licensed real estate agent and property manager, told the Renters Commission that compliance costs for a proposed green rental-housing ordinance could be prohibitive, estimating $45,000–$80,000 per unit for upgrades and warning those costs could be passed to tenants or force small landlords to sell.
Evelyn Roberts, a licensed real estate agent and property manager who said she is experienced in the Ann Arbor market, urged the Renters Commission on Feb. 20 to consider economic impacts before the city moves forward on a proposed Green Rental Housing Ordinance developed by the Office of Sustainability and Innovation.
Roberts told the commission that the ordinance’s compliance requirements — including insulation upgrades, heating and cooling system replacements and appliance electrification — would impose "substantial upfront cost to landlords," and she estimated aggregate upgrade costs could range "from $45,000 to $80,000 a unit." She warned those expenses would likely be passed to tenants in higher monthly rents or could force many small landlords to sell, concentrating ownership among larger corporate landlords and reducing rental stock.
Roberts also questioned the ordinance’s emissions benefits under current grid conditions. "DTE still generates over 50% of its electricity from coal and natural gas," she said, arguing that switching to electric appliances before a cleaner grid could shift rather than reduce emissions and that heat pumps can require electric resistance backup in Michigan winters.
The commission’s chair noted for the record that the Green Rental Housing Ordinance and accompanying FAQ materials were produced by the Office of Sustainability and Innovation (OSI) and not by the Renters Commission, and that OSI staff will attend the commission’s March meeting for a question-and-answer session. Commissioners and staff urged members of the public who have concerns or questions to bring them to that session.
Roberts suggested alternatives to a mandate, including voluntary incentives, rebates, low-interest loans, a longer compliance timeline similar to Boulder’s 10-year phase-in and tenant energy-education programs. She asked for a realistic cost-benefit analysis of the ordinance’s projected effects on housing affordability before implementation.
What’s next: OSI is scheduled to meet with the Renters Commission in March to answer questions and review ordinance updates; commissioners were advised to prepare questions and supporting materials for that Q&A.
