As we move deeper into the spring season, the Butte County residential market is showing a fascinating mix of resilience and transition. Whether you are looking at the bustling streets of Chico, the
City of Chico Retrofit!
Dated: February 24 2026
Views: 308
If you’re buying or selling a home in the City of Chico, you’ve likely run into the acronym RECO. While it sounds like a complex legal hurdle, it’s actually one of the ways Chico maintains its commitment to sustainability.
Here is everything you need to know about the Residential Energy Conservation Ordinance (RECO) and how it affects your next real estate transaction.
What is RECO?
The Residential Energy Conservation Ordinance (RECO), formally known as the City Residential Retrofit Program, was established in 1991. Its goal is simple: to improve the energy and water efficiency of Chico’s older housing stock.
Unlike many city ordinances that apply all the time, RECO is a "point-of-sale" ordinance. This means compliance is triggered only when a residential property is sold or transferred.
The "Big 8" Requirements
If a home falls under RECO jurisdiction, an inspector looks for specific conservation measures. While there are several items on the list, they generally prioritize these eight areas:
Attic Insulation: Must be a minimum of R-30 (in areas with at least 30” of headroom).
Weather Stripping: Caulking and sealing major cracks or openings to prevent air leaks.
Low-Flow Showerheads: Maximum flow rate of 3.0 gallons per minute (gpm).
Low-Flow Faucets: Maximum flow rate of 2.75 gpm for sinks.
Low-Flow Toilets: Must be rated at 1.6 gallons per flush or less.
Water Heater Blankets: External insulation blankets (minimum R-6) for domestic water heaters.
Pipe Insulation: Insulating hot water lines in unconditioned spaces.
Programmable Thermostats: Installing modern thermostats where feasible.
Does Your Home Need a RECO Inspection?
Not every home in Chico needs to jump through these hoops. You are likely exempt if:
The home was permitted for construction after July 1, 1991.
The property has a valid Certificate of Compliance on file from within the last 10 years.
The home is a manufactured or mobile home.
The Compliance Process: Step-by-Step
If you are selling a home that isn't exempt, here is how the process usually goes:
Step 1: Hire an Inspector. You must hire a City-certified RECO inspector (the City does not provide the inspectors themselves).
Step 2: The Inspection. The inspector will check the "Big 8" and issue a report.
Step 3: Fix & Certify. If items are missing, they must be installed. Once the home passes, the inspector submits the paperwork to the City.
Step 4: Get Your Certificate. The City issues a Certificate of Compliance, which is valid for 10 years.
Pro Tip for Sellers: While the seller is technically responsible, the buyer and seller can sign a Transfer of Responsibility Agreement. This allows the buyer to take over the upgrades, but they must be completed within 180 days of the sale.
Why It Matters
RECO isn't just about red tape; it's about the "Chico Way." By ensuring older homes aren't "leaking" energy and water, the city reduces its overall carbon footprint and—more importantly for you—keeps monthly utility bills lower for the next resident.
Are you getting ready to list your home? I can help you find a list of City-certified RECO inspectors or check if your property already has a valid certificate on file.
Jacob Darr
Meet Jacob Darr, a seasoned real estate professional and Broker with NextHome North Valley Realty. With over 10 years of experience in the industry, Jacob is committed to providing his clients with un....
Latest Blog Posts
Whether you’re looking for a craftsman in the Avenues or a peaceful retreat in the foothills, the real estate landscape in Butte County is shifting. As of March 2026, we are seeing a "Great
If you’re buying or selling a home in the City of Chico, you’ve likely run into the acronym RECO. While it sounds like a complex legal hurdle, it’s actually one of the ways Chico
Navigating Your First Home Purchase in Chico: 2026 EditionBuying your first home in Chico is a major milestone. With its unique mix of historic charm, college-town energy, and scenic beauty, it;
Based on information from California Regional Multiple Listing Service, Inc. as of September 24, 2026 3:12 AM UTC This information is for your personal, non-commercial use and may not be used for any purpose other than to identify prospective properties you may be interested in purchasing. Display of MLS data is usually deemed reliable but is NOT guaranteed accurate by the MLS. Buyers are responsible for verifying the accuracy of all information and should investigate the data themselves or retain appropriate professionals. Information from sources other than the Listing Agent may have been included in the MLS data. Unless otherwise specified in writing, Broker/Agent has not and will not verify any information obtained from other sources. The Broker/Agent providing the information contained herein may or may not have been the Listing and/or Selling Agent.
Plumas Association of REALTORS® All information deemed reliable but not guaranteed. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s) or information provider(s) shall be responsible for any typographical errors, misinformation, misprints and shall be held totally harmless. Listing(s) information is provided for consumer's personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested
