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Earlier editions: 2026-09

Title 16 — BUILDINGS AND CONSTRUCTION

Chico Municipal Code Ch. 16.60 Energy Conservation Measures Required Incident to Transfers Of…

Chico Municipal Code · 2026-10 edition · updated 2026-10-04 · Chico

Cite as: Chico Municipal Code Chapter 16.60 · Text as of 2026-10-04

16.60.010 Purpose.

This chapter is adopted pursuant to the municipal affairs provisions of Section 201 of the city Charter for the purpose of requiring residential housing sold, exchanged, or otherwise transferred within the city to be provided with ceiling insulation and other energy conservation measures necessary to meet minimum energy conservation standards.

(Ord. 1843 §1 (part))

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16.60.020 Administration by building official.

The building official shall be primarily responsible for administration of the provisions of this chapter subject to the overall direction and control of the director. In carrying out such responsibilities, the building official, or an authorized representative, shall issue the energy conservation compliance certificates required by this chapter incident to a transfer of residential housing, conduct the inspections of residential housing necessary to issue such compliance certificates, grant authorization to make such inspections to persons qualified to do so, and enforce all other provisions of this chapter as hereinafter provided for.

(Ord. 1843 §1 (part), Ord. 2012 §3 (part), Ord. 2268, Ord. 2364 §332)

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16.60.030 Administrative review of a determination or an action of the building official by the director.

A. Right to Administrative Review. Any person aggrieved by a determination made or action taken by the building official pursuant to this chapter may apply to the director for administrative review of such determination or action.

B. Applications for Administrative Review. Applications for administrative review of a determination made or action taken by the building official shall be made in writing and shall be filed in the office of the director no later than 15 days following the date such determination or action was made or taken, or where a written report is required to be served, the date such report is served; provided that the director may extend the time for filing an application for good cause shown. In addition to setting forth a request for administrative review of a determination made or action taken by the building official, such application shall contain a brief statement of the reasons why the applicant believes that such determination or action does not comply with the provisions of this chapter and the relief requested by the applicant from such determination or action.

C. Decision on an Application for Administrative Review. Upon the filing of an application for administrative review of a determination made or action taken by the building official, the director shall consider the application and render a decision either affirming the determination or action of the building official, or reversing or modifying such determination or action. Prior to rendering a decision, the director may, with sole discretion, convene an informal hearing for the purpose of reviewing evidence or hearing arguments bearing on such decision, provided notice of the date, time, and place of such hearing is served a reasonable time prior to such hearing on the applicant and on any other person who would be aggrieved by a decision reversing or modifying the determination or action of the building official and who has filed with the director a written request for notice of such decision. After rendering a decision, the director shall promptly inform the building official of the decision and cause a notice of the decision to be served on the applicant and any other person who would be aggrieved by a decision reversing or modifying the determination or action of the building official and who has filed with the director a written request for notice of such decision.

(Ord. 1843 §1 (part), Ord. 2012 §3 (part), Ord. 2268, Ord. 2364 §333)

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16.60.040 Appeal from decision of the director.

Any person aggrieved by a decision of the director following the filing of an application for the administrative review of a determination made or action taken by the building official, may appeal such decision to the city council within the time and in the manner provided for by Title 2 of this code.

(Ord. 1843 §1 (part), Ord. 2004 §23, Ord. 2012 §3 (part), Ord. 2364 §334)

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16.60.050 Administrative review and appeals - Aggrieved person.

A person shall be deemed “aggrieved” for purposes of the administrative review of a determination made or action taken by the building official pursuant to this chapter, or for purposes of the appeal of a decision of the director following the filing of an application for administrative review of such determination or action, if such a person is an owner, transferee or occupant of the building or structure which is the subject of such determination, action or decision.

(Ord. 1843 §1 (part), Ord. 2012 §3 (part), Ord. 2364 §335)

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16.60.060 Residential housing defined.

The term “residential housing,” as used in this chapter, shall mean any building or structure designed or used as a residence, provided, however, that the term “residential housing” shall not include “mobile homes,” “manufactured housing,” or “factory-built housing” as defined in Division 13 of the California Health and Safety Code (commencing with Section 17000 of the Health and Safety Code).

(Ord. 1843 §1 (part))

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16.60.070 Sales, exchanges, and other transfers of residential housing subject to chapter.

Except as otherwise provided for herein, this chapter shall apply to any sale, exchange, or other transfer of a legal or equitable interest in and to the fee simple title to real property containing residential housing which entitles the transferee to possession of such housing, or any sale, exchange or other transfer of a separate interest in a “community apartment project,” a “condominium project,” or a “stock cooperative” as defined in Division 2 of the California Civil Code (commencing with Section 761 of the Civil Code), which entitles the transferee to possession of a residential dwelling unit located within such project or cooperative.

(Ord. 1843 §1 (part))

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16.60.080 Sales, exchanges, and other transfers of residential housing subject to chapter - Exceptions.

This chapter shall not apply to the following transfers of residential housing:

A. The sale, exchange, or other transfer of residential housing which was constructed pursuant to a building permit issued on or after July 1, 1991;

B. The sale, exchange, or other transfer of residential housing which was constructed pursuant to a building permit issued before July 1, 1991, and which was previously inspected and certified within the ten year period immediately preceding the sale, exchange or transfer as being in compliance with the energy conservation standards adopted by this chapter;

C. Sales, exchanges, or other transfers of residential housing pursuant to a court order, including, but not limited to sales, exchanges, or other transfers ordered by a probate court incident to the administration of an estate, sales or other transfers made pursuant to a writ of execution, sales in any judicial foreclosure sale, sales, exchanges, or other transfers by a trustee in bankruptcy, and sales, exchanges, or other transfers resulting from a decree for specific performance;

D. Sales or other transfers of residential housing to a mortgagee by a mortgagor in default, sales or other transfers to a beneficiary of a deed of trust by a trustor who is in default, and sales in any nonjudicial foreclosure sale after a default in the obligations secured by a mortgage, deed of trust, or other instrument containing such power of sale;

E. Sales or other transfers of residential housing from one co-owner to one or more other co-owners;

F. Sales or other transfers of residential housing made to a spouse, or to a person or persons in the lineal line of consanguinity of one or more of the transferor;

G. Sales or other transfers of residential housing between spouses resulting from a decree of dissolution of marriage or a decree of legal separation, or from a property settlement agreement incident to such a decree; and

H. Sales which are short sales. Short sales are defined as sales in which the purchase price paid by the buyer of the property is less than the amount of the debt secured by the property.

(Ord. 1843 §1 (part), Ord. 2415 §1)

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16.60.090 Agreements providing for the sale, exchange, or other transfer of residential housing.

Any agreement providing for the sale, exchange, or other transfer of residential housing subject to the provisions of this chapter, including any agreement granting an option to acquire such housing, shall include a provision which states as follows:

This agreement and the sale, exchange or other transfer of residential housing provided for by this agreement may be subject to the provisions of Title 16 of the Chico Municipal Code which prohibits the sale, exchange or other transfer of residential housing unless and until the city building official has certified that such housing is in compliance with the energy conservation standards adopted in Title 16 of the Chico Municipal Code.

(Ord. 1843 §1 (part))

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16.60.100 Energy conservation standards to be complied with incident to the sale,…

Where meeting the energy conservation standards set forth in this section are feasible and subject to the applicable cost limitations as determined pursuant to section 16.60.110 below, no person shall sell, exchange, or otherwise transfer residential housing subject to this chapter unless and until the building official has certified that such housing is in compliance with the following energy conservation standards:

A. Insulation. The ceilings of all inhabitable portions of such residential housing shall be overlaid with insulation which has a minimum thermal resistance rating of R-30 except where the attic of a building has a headroom of less than 30 inches at the attic peak.

B. Additional energy conservation measures.

  1. All major cracks, joints, and other openings in building exteriors or portions of a building exposed to unheated or uncontrolled areas, and all openings from heated or air conditioned spaces into an attic or under floors including, but not limited to, openings around doors, windows, plumbing vents, pipes, electrical wiring, or furnace flues, shall be caulked, weather stripped, or otherwise sealed to limit air infiltration.

  2. All sink and lavatory faucets shall be fitted with low-flow faucets with a maximum flow rate of 2.75 gallons per minute or an aerator.

  3. All shower fixtures shall be fitted with in-line shower restrictors or low flow shower heads which restrict the maximum flow of water to not more than three gallons per minute except:

a. Where the shower head has an existing flow rate of less than three gallons per minute as a result of reduced water pressure behind the shower head; or

b. Where the shower head and shower arm are of a ball joint type which is connected within a wall.

  1. All toilets shall be low-flow toilets rated at 1.6 gallons per flush or less.

  2. Thermostats shall be programmable.

  3. All exposed cold water lines connected to and within five feet of existing water heaters, and all hot water lines from water heaters in unconditioned spaces, shall be insulated at a minimum thermal resistance rating of R-3.

  4. All electric resistance domestic water heaters, and all natural gas or other fossil fueled domestic water heaters, shall be fitted with external insulation blankets with a minimum thermal resistance rating of R-6 except:

a. Where the thermal resistance rating of insulation within the water heater is at least R-12; or

b. Where it is impractical to wrap the water heater with an external insulating blanket by reason of the fact that the distance between the heater and an adjoining wall is less than two inches; or

c. Where the manufacturer's instructions for the water heater would preclude the water heater from being fitted with an external insulation blanket.

  1. All ducts in accessible areas shall be visually inspected to determine if they are intact and functioning properly.

(Ord 1843 §1 (part), Ord 1870, Ord. 2415 §2)

16.60.110 Cost limitations on and priority for compliance with energy conservation standards.

A. Insulation. The owner of residential housing subject to the provisions of this chapter shall be required to install all of the insulation necessary to comply with the standard set forth in section 16.60.100.A., above, without regard to the cost of such compliance.

B. Additional energy conservation measures.

  1. An owner shall not be required to install any additional energy conservation when the required insulation has been installed within the 42 month period immediately preceding the sale, exchange, or transfer of the property and the cost of installing the insulation was $800 or more for a detached, single family residence, or $560 or more per dwelling unit for residential housing consisting of two or more units.

  2. An owner shall be required to install additional energy conservation measures when any of the following apply:

a. The required insulation is present and was installed prior to the 42 month period preceding the sale, exchange or transfer;

b. The insulation is not required because the attic of a building has a headroom of less than 30 inches at the attic peak; or

c. The required insulation was installed within the 42 month period preceding the sale, exchange, or transfer, at a cost of less than $800 for a detached, single family residence, or less than $560 per dwelling unit for residential housing consisting of two or more units.

  1. Priority of additional energy conservation measures. The additional energy conservation measures to be installed shall be those set forth in section 16.60.100.B, and they shall be installed in the order listed in that section unless a different priority is approved by the building official. The building official may approve implementation in a different priority when it is determined that doing so would achieve better overall energy conservation or that the implementation of one or more of the items listed in section 16.60.100.B would not be feasible.

  2. Maximum expenditure. When the installation of additional energy conservation measures is required pursuant to paragraphs B.2.a or B.2.b of this section, the maximum amount that an owner shall be required to spend on additional energy conservation measures shall be $800 for a detached, single family residence, or $560 per dwelling unit for residential housing consisting of two or more units. When the installation of additional energy conservation measures is required pursuant to paragraph B.2.c of this section, the maximum amount that an owner shall be required to spend on additional energy conservation measures shall be the difference between $800 and the cost of installing the required insulation for a detached, single family residence, or the difference between $560 per dwelling unit and the cost of installing the required insulation for residential housing consisting of two or more units. The cost of the installation of any of the additional energy conservation items listed in section 16.60.100.B. which occurred during the 42 months preceding the sale, exchange, or transfer shall count toward meeting this requirement.

C. Credit for energy conservation measures not listed in section 16.60.100.B. The building official may grant an owner a credit toward some or all of the additional energy conservation measures listed in section 16.60.100.B that would otherwise be required to be installed upon the owner providing the building official with documentation that the owner has made other improvements to the building, or buildings, which resulted in a documented energy or water savings and that such improvements were installed within the ten year period immediately preceding the sale, exchange, or transfer of the property. Examples of the types of improvements for which such credits may be granted include, but are not limited to, replacement of single with dual pane windows or the replacement of HVAC or water heater systems with more efficient systems.

(Ord. 1843 §l (part), Ord. 2415 §3)

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16.60.120 Certification of compliance with energy conservation standards.

The building official shall issue a certificate evidencing that residential housing subject to the provisions of this chapter is in compliance with the energy conservation standards adopted by this chapter if:

A. The building official or a city building inspector has inspected such housing and found it to be in compliance with such standards; or

B. A person authorized to make energy conservation inspections in the manner hereinafter provided by this chapter has filed a declaration with the building official, in a form prescribed by the building official, stating that such person has inspected such housing and found it to be in compliance with such standards.

(Ord. 1843 §1 (part), Ord. 2415 §4)

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16.60.130 Energy conservation inspections conducted by building official.

The building official shall conduct inspection of residential housing in order to determine whether such housing is in compliance with the energy conservation standards adopted by this chapter whenever an application for such inspection is filed with the building division by an owner of such housing or such owner's authorized representative. Such application shall be in a form prescribed by the building official and shall be accompanied by an inspection fee in an amount established by resolution of the city council.

If, as a result of such inspection, the building official determines that the residential housing being inspected is in compliance with the energy conservation standards adopted by this chapter, the building official shall promptly issue a certificate evidencing such compliance and cause a copy of such certificate to be served on the owner of such housing or such owner's authorized representative. However, if, as a result of such inspection, the building official determines that the residential housing being inspected is not in compliance with the energy conservation standards adopted by this chapter, the building official shall promptly cause a report to be prepared which identifies, with particularity, all noncomplying conditions and cause a copy of such report to be served on the owner of such housing or such owner's authorized representative.

Any certificate of compliance or inspection report issued or prepared by the building official pursuant to this section shall be deemed to have been served on the owner of residential housing or such owner's authorized representative when a copy of such certificate or report is personally delivered to such owner or representative, or when a copy of such certificate or report is placed in the United States mail, registered and postage prepaid, addressed to such owner or authorized representative at the address appearing on the inspection application.

(Ord. 1843 §l (part))

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16.60.140 Authorization of other persons to conduct energy conservation inspections.

The building official shall authorize other persons to conduct the energy conservation inspections which are necessary in order to certify compliance with the energy conservation standards adopted by this chapter if such person is certified as a building inspector, holds a license as a general contractor or insulation contractor issued by the Contractors’ State License Board, holds a license as a structural pest control operator issued by the Structural Pest Control Board, or is otherwise determined by the building official, on the basis of education and/or experience, to be qualified to conduct such inspections. Applications for such authorization shall be filed with the building division, shall be in a form and contain the information prescribed by the building official, and shall be accompanied by a fee in an amount established by resolution of the council.

If, after authorizing a person to conduct energy conservation inspections necessary in order to certify compliance with the energy conservation standards adopted by this chapter, the building official determines that such person misrepresented such person’s qualifications for such authorization, no longer holds the certification or license relied upon by the building official as the basis for granting such authorization, or filed a declaration certifying that such residential housing is in compliance with such energy conservation standards without having inspected such housing or when it is clear that the housing did not comply with such standards, the building official shall revoke the authorization granted to such person. However, the building official shall not revoke an authorization to conduct energy conservation inspections unless the building official has given reasonable prior notice of the building official's proposed action to the person granted such authorization and given to such person an opportunity to appear before the building official and be heard on the proposed revocation.

(Ord. 1843 §1 (part), Ord. 2268, Ord. 2415 §5)

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16.60.150 Transferee’s assumption of obligation to correct noncomplying conditions.

When residential housing has been inspected in the manner provided for by this chapter and been found to be not in compliance with the energy conservation standards adopted by this chapter, the owner of such housing, notwithstanding any provisions of this chapter to the contrary, may nevertheless sell, exchange or otherwise transfer the housing without a certification that the housing complies with such energy conservation standards, if prior to such transfer, the transferee enters into an agreement with the city, in a form approved by the city attorney, by which the transferee acknowledges the existence of the noncomplying conditions and agrees to correct same within 180 days following the date such transfer occurs, or such later date as may be approved by the building official for good cause shown.

(Ord. 1843 §1 (part))

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16.60.160 Violations.

A violation of the provisions of this chapter shall constitute an infraction which is punishable by a fine in an amount provided for by Section 1505 of the Charter of the City of Chico.

(Ord. 1843 §1 (part), Ord. 2136 §8)

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