THAT I never heard! But you DO need a permit to change out a hot water heater. Not sure I get that, but I had to do it. They added an expansion chambers outlawed saddle valves and changed the grounding wire reqs.
Building permits here have gotten super-expensive--one project it cost $2000! I don't get that either but grumbling about it does no good.
Of course, if you build without a permit, and something happens, your home-owner's insurance company will use that as an excuse not to pay, so you gotta do it.
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