Quick steps to comply with the HERD Ordinance:
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Submit Proof that you included your Home Energy Score in a Real Estate Listing
Join the "HERD"!
The
Home Energy Rating Disclosure (HERD) Ordinance provides consumer protections by requiring that a Home Energy Score (HES) assessment be conducted before a home lists for sale. The HES Assessment will generate a score and a report that will provide home buyers information on a home's potential energy use and costs.
HERD makes a home's energy use easy to understand, like a miles-per-gallon/charge rating for a vehicle.
Read the ordinance language as passed by City Council: Chapter 102 Home Energy Rating Disclosure - ORD23-26
How to comply with the HERD Ordinance:
Determine if the HERD Ordinance applies to you.
The HERD ordinance only applies to the following:
- Home sales within the city limits of Ann Arbor. If you pay Ann Arbor City taxes, then your home sale may be subject to the HERD Ordinance.
- Any such public sale of an existing single family detached home or a "side-by-side" townhome. These housing types that are part of an association or condominium development are also subject to the HERD ordinance.
Multiple dwelling units that are stacked vertically (apartment units), detached accessory dwelling units, manufactured or mobile homes, and commercial buildings are not subject to the HERD Ordinance.
There are also exceptions for any sale that is listed in Michigan's Exceptions to Seller Disclosure act or homes that qualify for a waiver under Section 8:397 of the Home Energy Rating Disclosure Ordinance.
We have created this Interactive Do I Need a Home Energy Score Decision Tree to help direct you to your next steps in complying with the HERD Ordinance.
Before publicly listing your home, obtain a Home Energy Score Report from a Home Energy Assessor
A Home Energy Score Assessment is a visual assessment of your home by a certified Home Energy Score Assessor. The assessment takes 45-90 minutes (based on home size and complexity). Expect the assessor to be in every room of the home, including basements, crawlspaces, and attics.
Two options are available for getting an assessment:
Notify the City of Ann Arbor that you completed your Home Energy Score Assessment
If you received a free Home Energy Score Assessment from the City, we already have your report, proceed to the next step.
If you
chose to hire a local Home Energy Score Assessor, you will need to upload your Home Energy Score Report via the City of Ann Arbor's HERD Compliance Document Upload Site.
Publish your Home Energy Score and make the Home Energy Score Report available to all potential buyers
The Home Energy Score Report will need to be available in at least one Real Estate Listing. For information on how to publish the report, view the HERD Publication Guide.
Once the score is published and the report is made available to potential buyers, you must submit proof that you included your Home Energy Score and Report in a Real Estate Listing via the City of Ann Arbor's HERD Compliance Document Upload Site.
Be ready to provide a copy to all potential buyers and also have a copy of the report for the buyer to view at the closing. Having a hard copy at open houses and showings is a great way to be prepared for buyers who will ask to see the Home Energy Score Report.
For more information, please check out the HERD FAQ.
HERD and the HES
The HERD program utilizes the U.S. Department of Energy’s
Home Energy Score (HES). The Home Energy Score rates homes on a simple 1–10 scale, with 10 being the most efficient. It comes with a report that suggests ways a homeowner can increase their score and decrease their utility bills, and is useful for buyers who want to compare credible information about home energy costs.
Learn more about the Home Energy Score.
When preparing to list a home, homeowners or real estate agents should
schedule a HES Assessment with a certified assessor. The City of Ann Arbor provides this service for free. Home sellers can also hire their own certified assessor.
See a list of local assessors. Once complete, homeowners will receive the HES and accompanying report.
HERD and Ann Arbor's Climate Goals
In Ann Abor,
around 23% of our greenhouse gas emissions come from residential buildings (or 66% for all buildings). Voluntary efforts to reduce energy consumption in our homes make a difference, but we cannot achieve our climate goals without increasing energy efficiency in the residential sector. The HERD program will help by providing buyers and sellers with a roadmap for cost-effective improvements that will improve their homes and health while accelerating our progress to achieve carbon neutrality by 2030.
