Ann Arbor — Ch. 105 Housing Code § 8:523
Defraying costs of escrow services
Operative Text
The Planning and Development Services Unit is hereby authorized to use any interest earned on the landlord-tenant escrow account to defray the cost of providing the escrow service authorized by this chapter.
Under Ann Arbor — Ch. 105 Housing Code § 8:523, the city's Planning and Development Services Unit is permitted to apply any interest that accumulates in the landlord-tenant escrow account toward the operating costs of running that escrow program. This means the interest generated by escrowed funds—rather than general city revenues or fees charged to participants—can be used to cover administrative expenses. The rule establishes a self-funding mechanism for the escrow service itself.
Plain English — not legal advice.
Ann Arbor — Ch. 105 Housing Code § 8:523 authorizes the Planning and Development Services Unit to use escrow account interest for program administration, meaning landlords are not separately billed for those overhead costs. Compliant operators generally maintain awareness that funds held in escrow may earn interest that the city retains for this purpose. Understanding this arrangement helps property owners set accurate expectations about how escrowed amounts are managed.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Ann Arbor — Ch. 105 Housing Code § 8:523 clarifies that interest earned on the landlord-tenant escrow account goes to the city to cover the cost of administering the escrow service, not to the tenant or landlord directly. Tenants whose rent or repair funds are held in escrow under this chapter should be aware that the interest on those funds is allocated to program costs by law. Tenants with questions about how their escrowed funds are being handled may contact the Planning and Development Services Unit or reach out to a local tenant-rights organization for general guidance.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 13, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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