2012 IEBC does not require it to have a fire suppression system installed in a 2 story R Occupancy. Check the 2015 sections I do not have a copy to see if there was a change
904.1 Automatic sprinkler systems.
Automatic sprinkler systems shall be provided in all work areas when required by Section 804.2 or this section.
804.2.2 Groups A, B, E, F-1, H, I, M, R-1, R-2, R-4, S-1 and S-2.
In buildings with occupancies in Groups A, B, E, F-1, H, I, M, R-1, R-2, R-4, S-1 and S-2, work areas that have exits or corridors shared by more than one tenant or that have exits or corridors serving an occupant load greater than 30 shall be provided with automatic sprinkler protection where all of the following conditions occur:
1. The work area is required to be provided with automatic sprinkler protection in accordance with the International Building Code as applicable to new construction; and
2. The work area exceeds 50 percent of the floor area.
Exceptions:
1. Work areas in Group R occupancies three stories or less in height.
2. If the building does not have sufficient municipal water supply for design of a fire sprinkler system available to the floor without installation of a new fire pump, work areas shall be protected by an automatic smoke detection system throughout all occupiable spaces other than sleeping units or individual dwelling units that activates the occupant notification system in accordance with Sections 907.4, 907.5 and 907.6 of the International Building Code.