A Chico house permitted before July 1, 1991 needs RECO compliance to sell unless an exemption applies, and a buyer can take over the work if the Building Official approves.
R-30 ceiling insulation is required whatever it costs, and an $800 cost limit for a single house sets how many other measures follow. An approved transfer gives the buyer 180 days to finish the measures.
This is general information, not legal advice. State rules vary.
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Has your Chico house had a RECO inspection yet?
Free. No obligation. You choose the closing date.
If your house in Chico, California was permitted before July 1, 1991, a Chico RECO inspection is usually part of selling it. The City's Residential Retrofit Program asks for a short list of energy and water upgrades before a sale. The spending has a limit, several kinds of sales are exempt, and a buyer can take over the work if the City approves.
This guide sticks to what the City of Chico's own program page, brochure, and transfer form say, as read in November 2026. It is general information, not legal advice. The City's Program Administrator confirms how the rules apply to a specific house.
What is the Chico Residential Retrofit Program?
The Chico Residential Retrofit Program is the City's Residential Energy Conservation Ordinance, or RECO, which requires certain energy and water upgrades on older houses before they are sold or transferred. The City's brochure says Chico enacted it in 1991 and amended it in 2010.
The rules live in Chapter 16.60 of the Chico Municipal Code. The City's program page says the goal is to raise the energy efficiency of Chico's older housing stock (City of Chico, November 2026). An inspection is required when all three of these are true:
- The house is inside the City limits.
- Its construction was permitted before July 1, 1991.
- It has not been certified as compliant in the last 10 years.
Once the City approves a final inspection, it issues a certificate that stays valid for 10 years. A house with a certificate on file in that window is exempt from a new one.
The City posts its current retrofit certificates on the program page in two lists, one sorted by address and one sorted by APN. A recent entry for your house may settle the question before anyone books an inspector.
Which pre-1991 Chico houses does RECO cover?
RECO covers any house inside Chico's city limits whose construction was permitted before July 1, 1991. That takes in most of the central city's older neighborhoods, though the permit date decides each house.
Where Chico's oldest houses are
The City's 2022-2030 Housing Element counts about 12% of Chico's units (4,812) as built before 1950 (City of Chico, September 2023). It places most of them in the central city. The neighborhoods it names:
- The Avenues: one of Chico's oldest neighborhoods, with some residences built between 1900 and 1910.
- Downtown and the blocks around Chico State: named with the Avenues as home to most of the pre-1950 stock.
- Barber and Southwest Chico: Barber was first built as housing for factory employees, and some houses in the area date to the early 1900s.
- Chapman and Mulberry: the 2004 neighborhood plan found over 73% of dwellings built before 1950.
- North Chico between the Esplanade and Highway 99: mostly post-war single-family blocks from the 1950s, with apartments from the 1970s and 1980s.
Chapman and Mulberry are city neighborhoods now
Chapman and Mulberry joined the City of Chico on July 1, 2020, through the Chapman Neighborhood Annexation, according to the City's annexation page. The first RECO test is location inside the City limits. A pre-1991 house in either neighborhood now meets that test like any other Chico house.
Newer parts of town
Houses permitted after July 1, 1991 are exempt by date. The Housing Element says 53% of Chico's units were built in 1980 or later. About 450 single-family residences and 600 apartment units went up in the Northwest Chico Specific Plan area from 2014 to 2022. A listing's build year is a starting point, since the City's test is the permit date.
What does a Chico RECO inspection check?
A Chico RECO inspection checks nine energy and water measures, which the City lists in an order of priority starting with R-30 attic insulation. A City-certified inspector does it, and it can be combined with a regular home inspection.
- Attic insulation: attic space with 30 inches or more of headroom insulated to at least R-30.
- Sealing: major cracks, joints, and openings in the exterior caulked, weather-stripped, or otherwise sealed.
- Faucets: sink and lavatory faucets at 2.75 gallons per minute or less, or fitted with an aerator.
- Showers: low-flow heads or in-line restrictors at 3 gallons per minute or less.
- Toilets: 1.6 gallons per flush or less, unless found unfeasible.
- Thermostats: programmable, where feasible.
- Water lines: certain hot and cold lines at the water heater insulated to at least R-3.
- Water heater: an external insulation blanket rated at least R-6.
- Ducts: ducts in accessible areas visually checked to see that they are intact and working.
The City does not set or collect the inspection fee, so the price comes from the inspector. The City keeps a list of certified inspectors, currently posted for fiscal year 2026-27, and says the list is updated quarterly.
If work is needed, the owner may do it or hire someone. A certified inspector then submits a final inspection, and the City reviews it and issues the certificate.
How does the $800 RECO cost limit work?
The RECO cost limit is $800 for a single house, but R-30 ceiling insulation must be installed whatever it costs. If the insulation costs less than $800, more measures are required until the $800 limit is reached; for two or more units, the limit is $560 per unit.
A worked example
The dollar figures below are illustrative, not prices from any contractor. They show how the City's three cost rules play out on different attics.
| Illustrative house | Insulation cost (illustrative) | What the cost rule requires next |
|---|---|---|
| Single house, attic needs a top-up | $450 | More measures from the City's list, up to $350 more, to reach the $800 limit |
| Single house, attic needs full insulation | $1,200 | No more measures; R-30 is still required even though it passes $800 |
| Single house, attic already at R-30 | $0 | Missing measures from the list, up to the $800 limit |
| Building with two or more units | Varies | Same rules, with a limit of $560 per unit |
In the first case, the seller cannot stop at the insulation. In the second, the insulation alone meets the cost rule. The limit is small next to Chico's median sale price of $449,786 for the three months ending September 2026 (Redfin, September 2026).
Zillow puts Chico's typical house value at about $458,244 (Zillow ZHVI, September 2026). The two figures measure different things, and our Chico housing market guide for 2026 explains the gap.
Which Chico sales are exempt from RECO?
Nine situations are on the City's exempt list, including houses permitted after July 1, 1991, court-ordered sales, mobile homes, and short sales. The City's brochure says each exemption must be approved by the Building Official through a request to the Program Administrator.
| Situation | Covered or exempt | The City's wording |
|---|---|---|
| Ordinary sale, permitted before July 1, 1991, no certificate in 10 years | Covered | "The construction of the property was permitted prior to July 1, 1991." |
| House outside the City limits | Not under the city program | "The property is located within the City limits." (a requirement) |
| Permitted after July 1, 1991 | Exempt | "The construction of the property was permitted after July 1, 1991." |
| Certificate already on file | Exempt | "Any property with a Certificate of Compliance on file within 10 years." |
| Manufactured or mobile home | Exempt | "Factory-built, manufactured or mobile homes." |
| Sale ordered by a court, such as a probate sale | Exempt | "Sales or transfers pursuant to a court order." |
| Foreclosure transfer to the lender | Exempt | "Transfers as a result of default to bank." |
| One co-owner taking over another's share | Exempt | "Transfers from one co-owner to one or more co-owners." |
| Transfer to a spouse or relative | Exempt | "Transfers to a spouse or certain relatives." |
| Divorce transfer between spouses | Exempt | "Transfers between spouses as a result of divorce." |
| Short sale | Exempt | "Short sales." |
Heirs: a court-ordered sale or inheriting first
The City's list exempts "sales or transfers pursuant to a court order" and transfers to a spouse or certain relatives. It does not list a later sale by an heir to an outside buyer. An heir who sells through a court-ordered probate sale may fit the first exemption.
An heir who takes title first and then sells may be looking at an ordinary covered sale. Which relatives and which court orders count is a question for the Program Administrator before escrow opens. Our guide to selling an inherited house in Chico covers the probate side.
Can a buyer take over the RECO work?
Yes, if the Building Official approves it: the seller and buyer can agree to move the RECO work to the buyer, who then has 180 days to finish it. Approval is the Building Official's call, so no buyer or seller can promise it.
"The seller and buyer may mutually agree to transfer responsibility to the buyer, however, transfers are at the discretion of the Building Official."
City of Chico, Residential Retrofit Program page, Building Division
What the transfer form asks for
The City's Transfer of Responsibility agreement form has a cover page updated November 7, 2025. It asks for these pieces:
- The buyer signs the agreement as the "Transferee."
- An inspector's retrofit report listing the conditions not in compliance is attached.
- The buyer checks a box to correct them within 180 days of the sale, or asks for a later date "for good cause shown."
- The finished form goes to the Program Administrator by email at RECO.Administrator@chicoca.gov.
A transfer still starts with an inspection, because the report tells the City which measures are open. The agreement says that missing the deadline is a violation of Chapter 16.60, so the buyer carries real responsibility.
Why an as-is cash buyer can take it on
A buyer who plans work on the house anyway can fold the RECO measures into that work. A cash buyer who buys as-is can sign as the Transferee, if the Building Official approves the agreement. The seller then may not need to book contractors before closing, and the closing follows the City's approval.
If the house also needs bigger work, our page on selling a house that needs major repairs covers that side. Landlords with a pre-1991 rental can read about selling a Chico rental with tenants in place.
Do the work first, transfer it, or claim an exemption?
The best path depends on whether an exemption fits, what the inspection finds, and who the buyer is. The table sets out the three paths using only the City's rules.
| Path | When it can fit | What the City requires | Timing |
|---|---|---|---|
| Claim an exemption | The house or the sale is on the City's exempt list | A request to the Program Administrator; a letter if the Building Official approves | Set by the City's review |
| Do the work first | The seller wants a certificate in hand before listing | Inspection, work up to the cost limit, a final inspection, then a certificate valid 10 years | The seller's schedule plus the City's review |
| Transfer to the buyer | The buyer agrees to take on the open measures | A signed agreement, the inspector's report, and Building Official approval | Closing follows approval; the buyer has 180 days after the sale |
Some sellers pick the certificate path because a certificate on file also covers a later sale for 10 years. Others pick the transfer path because the buyer plans other work anyway. If the Building Official turns down a request, the City's page describes an administrative review by the Community Development Director, citing CMC 16.60.030 through 16.60.050.
How can Propcash help with a Chico RECO sale?
Propcash is a direct cash homebuyer, and we buy Chico houses as-is, including pre-1991 houses with open RECO measures. Where the Building Official approves a transfer, we can sign as the buyer and take the retrofit on ourselves. Our Chico cash sale page explains how a sale works locally.
There are no fees or commissions, and you pick the closing date once the City's step is done. We'll make you one cash offer based on local market data and show you how we got to our number. If finishing the retrofit and listing may serve you better, we will tell you. You can get a no-obligation cash offer and compare it with your other options.
Frequently Asked Questions
How can I check whether my Chico house already has a RECO certificate?
The City of Chico posts its current retrofit certificates on the Residential Retrofit Program page, in two lists: one sorted by address and one sorted by APN. A certificate is valid for 10 years, and a house with a Certificate of Compliance on file within 10 years is on the City's exempt list. If your house appears with a recent date, the sale may not need a new inspection.
Can a Chico owner do the RECO retrofit work without a contractor?
Yes. The City's page says that if the house is not in compliance, the owner may complete the work themselves or hire someone to do it. Either way, a City-certified inspector has to submit a final inspection showing the house is in compliance before the City issues the certificate.
Who pays for a RECO inspection in Chico?
The City of Chico does not set or collect RECO inspection fees, so the price comes from the certified inspector who does the work. The City's page does not say whether the buyer or the seller pays. The buyer and seller can settle that point in their purchase agreement, and a RECO inspection can be combined with a regular home inspection.
Does a condo or apartment building in Chico need a RECO certificate to sell?
The City's brochure says every house, condominium, or apartment building built before July 1, 1991 must have the RECO measures before it is sold or transferred. For multi-family buildings with two or more units, the cost limit is $560 per unit instead of $800. R-30 ceiling insulation is still required whatever it costs.
What can I do if the Building Official denies a RECO exemption or transfer?
The City's page says anyone affected by a Building Official decision may ask the Community Development Director for an administrative review. The request must be in writing and reach the Director within 15 calendar days of the decision. A person who disagrees with the Director's decision may appeal it to the City Council.
Does a short sale or a foreclosure in Chico need the RECO retrofit?
Short sales and transfers as a result of default to a bank are both on the City of Chico's exempt list. The City still asks owners to verify any exemption with the Program Administrator, and its brochure says exemptions must be approved by the Building Official. An approved request gets an exemption letter.
Reviewed by the Propcash Editorial Team under our editorial standards. Published by Propcash, a direct cash buyer of houses. This guide is general information. Laws, fees, and market figures change, so check the current rules for your state.
