Committee sends proposed home-based business rules back to Olympia Planning Commission

Proposed changes to the home-based business regulations are heading back to the Olympia Planning Commission for further review because of a number of issues. 

At a special meeting on Sept. 18, the Olympia Land Use & Environment Committee voted to send the proposed changes to the planning commission for additional consideration.  

The city has regulated home-based businesses since 1962. The existing rules were intended to allow activities, such as home offices, child care and in-home salons, while limiting visible impacts on surrounding residences.  

City staff said changes in technology and growth of working from home operations prompted a review.  

The proposed changes would eliminate the home occupation permit requirement and add definitions for “remote work” and “principal residents.” 

It would also allow certain mobile mechanics and detailers to operate from homes as long as no work is performed at the residence, permit on-site sales when products are not visible from outside, and allow businesses to operate in nonresidential structures on the same property.  

The proposal would also remove an existing 500-square-foot limit for home-based businesses, while retaining a requirement that the business occupy no more than 25 percent of the home.  

Other changes would remove a two-space, off-street parking limit, eliminate a prohibition on on-site meetings for off-site work, and allow group counseling and substance-use counseling.  

Commission’s recommendation 

On Aug. 17, the planning commission voted against adopting the amendments, while saying it supports efforts modernizing the Olympia Municipal Code as it relates to home-based businesses.

“The (planning commission) did not feel comfortable recommending adoption of the amendments without better understanding how the amendments would affect the people’s ability to work from home or operate a home-based business,” wrote Olympia Planning Commission Chair Greg Quetin in a Sept. 8 letter to the city council.  

The commission also noted home occupations can provide an income source and serve as a starting point for businesses that later move into commercial spaces.  

The commission also questioned two provisions about who can operate a home-based business and where it can be located.  

One provision requires a home-based business to be conducted from the owner’s “principal residence.”  

Commissioners questioned why a business must be conducted from the owner’s principal residence and whether the same restrictions should apply to a second or vacation home if the business creates little impact on surrounding properties.  

The commission also questioned language stating people who do not live in the residence may not “participate” in the home-based business.

Commissioners said it was unclear whether that would include employees, contractors or customers, and raised concerns about how the city could enforce such a rule without creating an awkward needing to know whether people visiting the residence were participating in the business.  

The commission also wanted more information about how remote work and other low impact home businesses would be treated under the regulations.  

Residents weigh in

During the public comment period, South Capitol resident Courtney Nevitt described the neighborhood as a mix of renters and homeowners, including people who operate businesses from their homes, students and people who work at the Washington State Capitol Campus, including lobbyists.  

Nevitt said two homes next to hers, which had been occupied by families until the past two years, are now used as offices and are largely empty outside the legislative session.

She also raised concerns about parking and loss of homes as residences.  

“Businesses are not people,” Nevitt said. “The entities that own these houses do not care about our community, and in most cases, are based outside of the Olympia area. Empty houses owned by companies have no stake in our neighborhood, no stake in our community, or the people who live here.” 

Christine Brewer, a lobbyist and South Capitol homeowner, offered a different perspective. She said she and her husband have lived in Olympia for 40 years, and many lobbyists live locally and are invested in the community.  

Brewer supported sending the proposal back to the planning commission for additional work, and said she hoped neighborhood residents and people working as lobbyists could work together.  

Attorney Heather Burgess, representing the South Capitol Neighborhood Alliance, also supported sending the proposal back to the commission.  

She said the proposed regulations still raised questions about seasonal use of homes, the distinction between home-based business activity and remote work, and enforcement. 

Burgess also said concerns involving unauthorized parking, paving of yards and conversions of residences into commercial uses are already addressed by existing regulations.  

She urged the city staff to consider delaying further changes until its new rules for small-scale commercial uses are more fully developed.  

A staff report stated the proposed regulations are intended to apply citywide, and to make the rules clearer and more consistent with policies supporting small-scale commercial uses. 

The report added the Olympia Comprehensive Plan calls for allowing home occupations that do not degrade neighborhood appearance or livability, while discouraging conversion of residential housing to commercial uses not intended to serve local residents.