New Chico California energy retro-fits when selling your home

Energy efficiency: Chico looking at changing housing sale regulations


By LAURA URSENY and TONI SCOTT - Staff Writers

This toilet tank bank is one of several water saving items being given away to Cal Water...«123»CHICO -- Since 1990, Chico has been working on the energy efficiency of its housing supply with regulations that kick in when a house is sold or transferred.
Now, the city's Sustainability Task Force wants to revamp those regulations, making them stricter and formalizing them.
Some argue the regulations in place currently aren't really enforced, meaning these new regulations could be a surprise.
Previously, when a house or multi-family dwelling built before 1983 was sold, sellers had to deal with upgrading insulation, putting in low-flow toilets and showerheads and other household changes before handing over the house. A total cost of $500 for the improvements was set as a ceiling.
With those recommendations almost 20 years old, Mayor Ann Schwab, the task force chairwoman, said the group thought it was necessary to revisit the measures and offer potential revisions.
After forming a committee to research the costs and benefits of specific conservation measures and reviewing potential revisions at four separate meetings, the committee decided on a number of recommendations that may soon be required of home sellers.
The recommendations call for newer houses and multi-family dwellings — built before 1991 — to fall under these regulations. Sellers would have an $800 maximum cost under the proposed regulations.
Houses will be required to have an energy conservation audit every 10 years rather than every 20 years.
The task force, whiwill send these recommendations to the City Council probably next year, also prioritized what conservation measures need to be taken.
Ceiling insulation and easy installations such as weather stripping and caulking are high on the list, followed by low-flow toilets, showerheads and faucets. More expensive or complicated changes are lower.
Schwab said the committee was very mindful of the need to keep the costs associated with improvements "low or no cost," noting more cost-prohibitive measures, such as requiring duct insulation in homes, were scrapped.
There are exemptions to the regulations, including foreclosures or short sales on single-family homes or an estate sale or through an inheritance. The regulations also don't apply to mobile or manufactured homes.

We all felt these were really reasonable adjustments that would improve the comfort of someone's home and increase energy efficiency," Schwab said. "A lot of these things people are doing already." Several cities are also already taking the steps the task force is suggesting, with Schwab saying Berkeley, San Francisco, Santa Cruz, San Diego, San Luis Obispo and Austin, Texas, have similar standards on their books.

She highlighted that San Francisco's cost ceiling is $1,300, $500 more than what the task force is suggesting for Chico residents.
Still, pointing to the sensitivity of the housing market, which has not bounced back in sales volume, local housing industry representatives say this is not a good time to be adding to a seller's burden.
Included among the proposed revisions is the requirement of sellers to prove to the city changes have occurred.
Currently, the homeowner and real estate agent are responsible for getting a private inspector to verify the changes. When a house is in compliance, the city issues a certificate that goes into the house's file at the city offices.
The task force recommendations include a new provision requiring the title company involved in the sale to assure the city that the conservation measures are in place.

These changes, and the higher ceiling for improvements, will add costs and time to the sale, said Peggy Mead, executive director for the Chico Association of Realtors.
"We would like to see this put on hold until the market improves," said Mead.
Mead pointed out some sales may be the consequence of a homeowner's financial hardship, and this process takes money out of their pockets, both to do the work as well as certify it.
Mead said her board nevertheless recognizes the significance of the proposed changes and wanted to be a part of the city discussion.

She wasn't aware of what triggered the discussion now. Meetings on this topic took place at the Sustainability Task Force before the association was invited to participate.
We appreciated that invitation," said Mead, who said association members haven't really liked the existing regulations, but realize the necessity.
The recommendations represent some compromise after the current ordinance was re-evaluated during several committee meetings involving local housing professionals, she said. The committee also included Realtor Scott Wolf.
Mead said the task force seemed sympathetic to home sellers during the discussion and were willing to talk about compromises.

Some of those compromises included removing some of the more expensive improvements from the list of requirements — such as requiring underflooring — with Mead and Schwab both acknowledging the task force's sensitivity toward finances. Mead said the housing industry doesn't recommend hinging regulations to a sales transaction."We think it's better to educate the current homeowner about tax benefits and programs while they're in the home rather than at the point of sale," he said. Mead pointed out the seller may choose the cheapest alternatives and may install items the buyer wouldn't want.

If there was a better time for sellers to deal with this, Mead said it would be in two to three years, when the market has settled down.

Local homebuilder Chris Giampaoli thinks it could be five or more years before something like this should be discussed. Homebuilders are concerned, he said, because those who buy a new home are generally trying to sell an existing home. Giampaoli, who also sits on the task force, says he'd rather see an education program aimed at homeowners and rental property owners.

An educational program is planned to inform homeowners about energy efficient measures, Schwab said, adding that the task force is currently applying for a grant through Pacific Gas and Electric to fund the program.

Should the city receive the grant, Schwab said a large part of the outreach will be focused on informing home owners about the new conservation requirements — changes she said were simple and cost-saving in the end. "I think people will find their homes more comfortable and their energy bills a lot less with relatively easy changes," Schwab said.

The city said it would like more feedback from the Chico Association of Realtors and possibly North Valley Property Owners Association before passing the recommendations to the City Council.





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