What Housing Providers and Property Managers Need to Know

If you own or manage residential rental properties in the City of Ann Arbor, significant changes are coming to how you obtain and renew your rental licenses.

Driven by the city’s A2ZERO carbon neutrality goals, Ann Arbor has moved forward with a "Green Rental Housing" ordinance.  

For housing providers, this means that energy performance is becoming a mandatory part of the rental inspection process.

At GMAR, we know that navigating new municipal regulations can be complicated. This post breaks down exactly what the law is, what you need to do to comply, and the timeline for implementation. 

What is the Green Rental Housing Ordinance?

In short, the Green Rental Housing ordinance ties a property’s energy efficiency to its ability to receive a City of Ann Arbor Certificate of Compliance (rental certification).

Previously, rental inspections focused primarily on safety, sanitation, and basic code compliance. Now, energy performance is being added to that checklist.  

If your property does not meet these new energy standards, you may be fined $500 for the first day of non-compliance, and $1,000 per day after that. However, the city has stated their intention is to work with property owners and can decline to assess fines if they believe you are working in good faith to get into compliance.

How to Comply

There are two possible pathways to comply, obtaining a minimum score on a Home Energy Rating System inspection, or obtaining a minimum number of points on a checklist.
 

Inspection Cycle

• The Green Rental Housing requirements are being folded into the city’s existing rental-inspection/certification program. You won’t face a wholly separate inspection beyond your normal renewal cycle.
• You'll need to either submit your HERS score or your checklist score as part of that inspection/licensing process.
• If you've recently received a Certificate of Compliance, your unit will need to meet Green Rental Housing requirements at your next normal inspection, 30 months after your last certification.

Financial Assistance

There are resources for landlords from the city: rebates, tax credits, technical assistance, financing support. Resource Hub for Rental Property Owners.

What You Should Do Right Away

• Determine the current condition of each rental unit: insulation levels, HVAC condition, windows, air sealing and general comfort/energy‐performance. A preliminary HERS score or energy audit might be useful.
• Review the city’s checklist to see what improvement options are available and estimate cost vs benefit.
• Explore potential funding or rebates upfront so you can plan improvements that align with your business cycle (turnovers, renewals, etc.).
• Understand your upcoming inspection/licensing schedule so you know which units will be due first.
• Engage with tenants proactively: Some checklist items may involve tenant behavior (e.g., educating renters on energy use) or changes that affect comfort.
• Budget for possible upgrades. Even though some units may already meet the thresholds, plan for worst-case.

GMAR is Here to Help

If you’re a rental housing provider or property manager in Ann Arbor the time to act is now. Begin assessing your units, engage with the city’s tools and resources, and build the cost/upgrade plan into your upcoming turnovers or renewal cycles. If you wait until the inspection renewal date draws near you risk increased workload or cost pressure.

For further information, be sure to check out the City’s Green Rental Housing Webpage.  

GMAR members with questions about this ordinance or needing guidance on how to comply can contact our Government & Community Relations Team at advocacy@gmaronline.com or 248-478-1700.