City Council discusses tenants’ rights and short-term rentals

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The Ann Arbor City Council met at Larcom City Hall Monday evening to pass a resolution proposing the creation of an ordinance protecting tenants’ rights, as well as a six-month moratorium on new short-term rental licenses. 

The council focused on expanding housing supply during their final meeting before the Aug. 4 Democratic primary election, in which Mayor Christopher Taylor is up for reelection along with Councilmembers Cynthia Harrison, D-Ward 1 and Jenn Cornell, D-Ward 5.

The meeting began by approving the consent agenda, which included a tax exemption for a proposed 343-unit affordable housing development at 2285 W. Liberty St. Councilmember Lisa Disch, D-Ward 1, celebrated the development for increasing housing density along an important transit route — a primary goal of the city’s recently adopted Comprehensive Land Use Plan

“This was the vision of transit corridor zoning,” Disch said. “Residents will live in close proximity to multiple grocery stores, pharmacies, a library, restaurants, other commercial uses, city parks, making it an ideal development location for new housing.”

Councilmembers then discussed DC-1, which would direct City Attorney Atleen Kaur to draft an ordinance protecting the right of tenants to organize and participate in tenant organizations.

During public comment, Hanna Larcinese, vice chair of the Ann Arbor Renters Commission, said she appreciated the council’s efforts to protect renters, but criticized the council for passing resolutions without input from the Renters Commission — which was founded in 2021 to advise the council on matters related to rental properties. 

“This goes against the stated purpose of the Renters Commission as an advisory board for City Council,” Larcinese said. “This resolution today only came to our attention because Renters Commission Chair Rosanita Ratcliff just happened to check the agenda for today’s council meeting.”

Members of the Ann Arbor Tenants Union also criticized the resolution as an attempt to garner votes from renters ahead of the election, rather than a genuine measure to protect tenants in collaboration with the Renters Commission. Councilmember Travis Radina, D-Ward 3, apologized for not preparing the resolution alongside the Renters Commission, but rejected claims that the resolution was performative. 

“I should have communicated this development with you all directly, and I am sorry that I didn’t,” Radina said. “That said, as someone who has led on every piece of meaningful tenants rights legislation that has passed through this body for six years … it is a bit disappointing to hear many of the people I’ve worked alongside suggest that these efforts are just politics as we approach an election.”

Taylor said the resolution would give renters more power to advocate for improved housing conditions and reduce instances of landlords taking advantage of tenants.

“We do understand that there is a power imbalance — there is an asymmetry between tenants and landlords, and that tenants require a city that cares for them, as do we,” Taylor said. “Ensuring that we do have the full set of tenants rights that we are able to accomplish at the municipal level will help balance the playing field (and) will help make our housing crisis a little less crisisful for those in Ann Arbor who rent.”

DC-1 passed without objection.

The council then discussed DC-2, a resolution directing the city attorney to draft a six-month moratorium on new licenses for units rented for 30 days or​ less. 

City officials have warned that the increase of unlicensed short-term rentals through Airbnb and Vrbo could reduce rental options for long-term residents. Ann Arbor is estimated to have up to almost 1000 active short term rentals. 

During public comment, Sierre Wolfkostin, a resident who operates a STR, said the resolution would fail to target unregistered rentals and unfairly penalize legal properties.

“DC-2 was created to address the problem of hundreds of unregistered operators in residential neighborhoods and we agree — that is the problem to address,” Wolfkostin said. “But if the solution involves a blanket moratorium on all new licenses, it likely won’t affect the vast majority of these unregistered rentals. Many are not in your licensing cue, nor are they interested in applying for a license. A blanket freeze would mainly harm the people trying to comply — people like us.” 

Other STR owners addressed the council, and emphasized the importance of their role for the city and its visitors. Sheila Rasouli, an organizer for the AATU, said the city should prioritize housing for current residents, rather than accommodate visitors. 

“Despite having the most income I’ve ever had in my life, as a low income tenant the only apartments I can afford are in the city of Ypsilanti,” Rasouli said. “You may not hear the voices of Ann Arborites pushed out because of lack of housing tonight — they are no longer in this city — but we can tell you this … we need more housing fast, and we do not need a gameday getaway.” 

Disch said despite supporting the resolution’s intent, she encourages approaching STRs operated by individual residents and larger commercial STRs in separate ways.  

“A moratorium is a strong and broad action, and I do not think the arguments and evidence in this resolution fully warrant the city administrator preparing a moratorium. … The city now has enough experience with both types to see that they both generate problems, but I believe that the problems are distinct and call for different remedies,” Disch said. 

DC-2 passed, with only Disch voting against the resolution.

Summer News Editor Niko Wilson can be reached at nikow@umich.edu.

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