New Ann Arbor ordinance requires home sellers to disclose home energy score
ANN ARBOR, Mich. (CBS DETROIT) - The city of Ann Arbor is now requiring sellers to disclose their home's energy usage and costs in a report.
The Home Energy Rating Disclosure (HERD) Ordinance was passed by the city council in September and went into effect on March 12.
It will be enforced this fall, and sellers who fail to get a HERD report will face a $500 fine.
Julie Roth, manager of the city's Energy Team, said the report feels like a logical step when purchasing a home.
"Similar to if you're going to buy a car, you wouldn't even think about buying a car without knowing what the miles per gallon is, so HERD and the home energy score is like miles per gallon for your home," said Roth.
Currently, two city staff members conduct the assessments for sellers at no cost.
Metro Detroit realtor Martin Bouma said the process can take some time.
"There's a lot of delays," he said. "I do know, for instance, someone who just ordered a report. It took a week and a half to get the report done; it took an hour and a half to complete. And this was a two-year-old construction home, and it was rated a six."
Another purpose of the report is to recommend improvements to make homes more energy efficient, said Roth.
"How nice to move into a home and have a report saying, 'Here's a home energy score, and here's some things you can do to improve the efficiency in a cost-effective way,'" she said.
According to the city's Office of Sustainability, roughly 23% of Ann Arbor's greenhouse gas emissions come from residential buildings, which make up 66% of buildings throughout the city.
City officials said they hope the HERD ordinance will encourage more energy-efficient home improvements.
Still, when considering other pilot cities across the country, Bouma said he hasn't seen data that shows these scores make a difference for buyers.
"Interestingly enough, we've talked to cohorts in Portland and Austin, and through surveys carried out, less than 1% of purchasers did anything different having that report," he said.