A few comments here. First, I don't think the inspector has the authority to require or judge the report. C408.2.2 states that the balance report be provided to the owner or owner's rep, doesn't say anything about providing one to the building dept. Second, if I'm out voted on part one, in my opinion the statement "in accordance with" is vague enough that it leaves it up to the Building Official to make the call.
NO, the building in question is under 5,000sf and not required to comply under C408.
C408.2.2 Air distribution system testing, adjusting and balancing. Construction documents shall require that a written balance report be provided to the owner or the designated representative of the building owner for HVAC systems serving zones with a total conditioned area exceeding 5000 square feet (465 m2). Air distribution systems shall be tested, adjusted and balanced by a licensed engineer or a company or individual holding a current certification from a recognized testing and balancing agency
organization in accordance with generally accepted engineering standards.
Exceptions:
1. Buildings with cooling or heating system capacities of 15 tons or less per system may be tested and balanced by a mechanical contractor licensed to design and install such system(s).
2. Buildings with cooling or heating system capacities of 65,000 Btu/h or less per system are exempt
from the requirements of this section
