Ann Arbor City Council on Jan. 6 adopted an ordinance (added as section 8532 to Chapter 105 of the housing code) that prohibits many pre-tenancy fees — including wait-list, holding and nonrefundable reservation fees — and caps a refundable application fee at $50. The ordinance requires applicants be refunded within 60 days if no lease is offered.

The ordinance was sponsored by Council Member Redina and co-sponsored by Council Member Harrison and others. Council Member Redina thanked the Renters Commission, tenant advocates and city staff for their work and described the ordinance as a next step in a broader effort to address predatory "rental junk fees." "These practices are indefensible and unconscionable," Redina said during the council discussion.

Public testimony at the public hearing was heavily in favor of the measure. Students, social workers, the Ann Arbor Tenants Union and many individual renters described nonrefundable wait-list and holding fees that they said imposed large and unpredictable financial burdens. Speakers described paying hundreds to thousands of dollars to secure or reserve units with no guarantee of receiving a lease; several urged that the city close loopholes and expand future work to address fees charged during tenancy.

The Washtenaw Area Apartment Association testified against the ordinance, arguing that wait lists and holding fees give renters flexibility and that removing them would exacerbate supply problems in a tight market. The association said wait lists can be refundable within 48 hours and compared them to security deposits; several council members disagreed with that framing in light of testimony about large nonrefundable fees.

Council debate emphasized equity and transparency. Council Member Harrison described the measure as capping application fees at $50 and requiring refunds within 60 days if no lease is offered, a provision intended to prevent landlords from pocketing large application or reservation fees while imposing uncertainty on renters. Other council members noted the ordinance does not address all landlord fees charged during tenancy and said subsequent work will follow to address additional "junk fees." Several council members asked to be added as co-sponsors during debate.

The ordinance passed at the Jan. 6 meeting. Council did not record a roll-call tally in the meeting minutes attached to this transcript excerpt; the mayor announced the ordinance was approved following general assent.

Ending: Sponsors and supporters said they expect additional follow-up work with the Renters Commission and staff to close remaining loopholes and examine other fees charged during tenancy.