Title
An Ordinance to Amend Chapter 102 (Home Energy Rating Disclosure) of Title VIII (ORD-24-23)
Memorandum
In September 2023, the Ann Arbor City Council passed the Home Energy Rating Disclosure (“HERD”) Ordinance (ORD No. 23-26), adding Chapter 102 to Title VIII of the Code of the City of Ann Arbor. The HERD ordinance requires sellers of certain residential dwellings to provide certain disclosures relating to the energy performance of such dwellings in an effort to encourage safer, healthier, and more comfortable homes in Ann Arbor and reduce carbon emissions to further the goals of Ann Arbor’s A2ZERO Plan.
Since this ordinance went into effect in March 2024, sellers have discovered and exploited loopholes regarding the timing, duration, and public accessibility of the required disclosures. City staff have also noticed differences between the Home Energy Score Report requirements listed in the ordinance and those on the Department of Energy (“DOE”) report template.
The attached proposed ordinance amendment will clarify the timing, duration, and public accessibility requirements of the disclosures required under the HERD Ordinance and better align the requirements of the Home Energy Score Report with the DOE report template. The proposed ordinance amendment also updates the penalties section to broaden enforcement authority, as well as fixes capitalization, grammar, and consistency errors to eliminate confusion.
In particular, the proposed ordinance:
• Clarifies that a Home Energy Score and Home Energy Score Report are required to be posted continuously in a publicly accessible real estate listing until the real property is sold or otherwise taken off the market.
• Refines what information must be included in a Home Energy Score Report to align with the DOE report template.
• Removes reference to the specific units that may enforce the HERD Ordinance, allowing anyone authorized under Section 1:17 of Chapter 1 of Section I to enforce.
Budget/Fiscal Impact: The proposed changes to Chapter 102 of Title VIII will not have fiscal or staffing impacts. The updates reflect lessons learned since the HERD Ordinance went into effect, as well as administrative refinements. These changes are consistent with City Council’s direction regarding the HERD Ordinance and will help close loopholes that some sellers have exploited.
Staff
Prepared by: Valerie Jackson, Assistant City Attorney - Sustainability
Reviewed by: Dr. Melissa Stults, Sustainability and Innovations Director
Reviewed by: Jennifer A. Richards, Assistant City Attorney
Approved by: Milton Dohoney Jr., City Administrator
Body
(See Attached Ordinance as Amended and Approved on Second Reading on October 7, 2024.)