9-b. 21-0428 Proposed Amendments to Table 5-15: Permitted Use Table and Section 5.16.6.D Accessory Dwelling Unit (ADU) specific standards in Chapter 55 Unified Development Code, Article V of the City of Ann Arbor Code of Ordinances for City Council Approval. Staff Recommendation: Approval
The deregulation of ADUs stands to have unexamined consequences. The claim that more rental ADUs will increase the supply of affordable housing and help reduce rents needs closer examination and reliable data. Resident-ready ADUs are a costly investment. Evidence suggests that likely beneficiaries of the proposed change—particularly removing the owner occupancy requirement—will be lenders and developers motivated by the high rent/high rate of return available in Ann Arbor where the rental market rate has skyrocketed. This likely consequence will to be to advantage private interests who benefit from high rents. The argument that this proposed deregulation will help bring relief to the heated Ann Arbor housing market is implausible and will not help the city become more affordable, more diverse, and more lively. This proposal must have broader public discussion and input, and I strongly urge the Commission to hold well-advertised town halls to allow community engagement.
The deregulation of ADUs stands to have unexamined consequences. The claim that more rental ADUs will increase the supply of affordable housing and help reduce rents needs closer examination and reliable data. Resident-ready ADUs are a costly investment. Evidence suggests that likely beneficiaries of the proposed change—particularly removing the owner occupancy requirement—will be lenders and developers motivated by the high rent/high rate of return available in Ann Arbor where the rental market rate has skyrocketed. This likely consequence will to be to advantage private interests who benefit from high rents. The argument that this proposed deregulation will help bring relief to the heated Ann Arbor housing market is implausible and will not help the city become more affordable, more diverse, and more lively. This proposal must have broader public discussion and input, and I strongly urge the Commission to hold well-advertised town halls to allow community engagement.