Title
Home Based Businesses Code Amendments Briefing
Recommended Action
Information only. No action requested.
Report
Issue:
Discussion on the Draft Home Based Businesses Code Amendments.
Staff Contact:
David Ginther, Senior Planner, Community Planning and Economic Development, 360.753.8335
Presenter(s):
David Ginther, Senior Planner
Background and Analysis:
During the process for updating the City of Olympia Comprehensive Plan in 2025, comments were received that voiced concern about the use of homes for business purposes in the South Capitol Neighborhood that appeared to go beyond what would generally be allowed for a home based business. Community Planning and Economic Development Department staff, including planning, code enforcement, and the former director, researched the issue and briefed the City Council in the fall of 2025. The Olympia City Council directed staff to update the regulations for home based businesses in 2026.
Amendments Summary:
The proposed amendments contain a number of minor updates such as changes to the department name, grammar, and changing the name of "home occupations" to "home based businesses".
Other changes address a variety of subjects including the following:
• Added a definition for “remote work” for those that work from home and are not operating a business
• Added an exception to allow mobile mechanics and detailers provided no work is done at the home occupation location and only one work vehicle is allowed at the home
• Removed references to permits (see further explanation below)
• Allowed on-site sales provided no product is visible from outside
• Allow for structural renovations only if they are consistent with the residential character and exterior appearance of the lot and dwelling
• Removed the section with specific requirements for Adult Day Care homes which are regulated and licensed through Washington State. This section contained out of date fire code requirements and medical care requirements that are dealt with in State law and existing building and fire codes.
• Removed the section on short term rentals because it is already addressed in the short term rentals section of the code (OMC 18.04.060.JJ)
Comments received during the update to the Olympia Comprehensive Plan:
During the update process a number of community members provided comments about the use of homes for commercial purposes that appeared to go beyond what would be allowed as a home based business. The area mentioned by the community members is in the South Capitol Neighborhood located immediately south of the Capitol Campus. It was mentioned that there are approximately 18 of these homes and they appear to be used only for a few months during the legislative session and then remain empty much of the rest of the year. It was also pointed out that some of these homes may have been converted to commercial offices which is not allowed within the residential zone district in this area.
The amendments include several changes to further clarify that the person who owns and operates the home based business must reside within the home and it is their primary residence. This was already a requirement but the language needed to be updated.
It is proposed to remove part of the sentence in subsection 18.04.060.L.2.a. that requires permit holders (we don’t have permits anymore) to provide evidence they live at the site through voter registration, driver’s license, tax statement, etc. Without a permit we have no way to require or collect this information. Instead, the affidavit people sign for a home based business license has been modified to include language about providing proof that the location is their primary residence. The last sentence in this subsection has been modified to say that applicants must sign an affidavit attesting to their primary residence at the site.
Permits:
The existing regulations refer to a permit for a home based business but permits have not been required since approximately 2008. References to permits are proposed for removal. For a person to operate a home based business, they must obtain a business license and sign a home based business addendum (affidavit). The affidavit requires the business owner to attest to the fact that they meet all the regulations for home based businesses in the Olympia Municipal Code. A reference to a permit application is also proposed to be removed from the section of the Olympia Municipal Code that deals with authority of the Hearing Examiner.
Special Exceptions for 300-400 block of West Bay Drive:
Several special exceptions are in the existing regulations that only apply to home based businesses located in the 300-400 block of West Bay Drive. These were added to the Olympia Municipal Code around 2000-2003. There is one home based business located in this two block stretch of single family homes. It was established as a media services business in 1988 with a home occupation permit. The business is still currently operating at this location.
The following exceptions in the current Olympia Municipal Code apply to home based businesses located in the 300-400 blocks of West Bay Drive:
1. A five square foot sign is allowed. Two square feet is the limit for signs other home based businesses.
2. Group counseling is allowed but other home based businesses are limited to two persons per counseling session.
3. Up to 50% of the home may be used for the home occupation whereas the limit is 25% for other home based businesses.
4. The employees do not have to be residents of the home. Employees of other home based businesses must reside within the home.
Staff has spoken with the owner of this business and explained why the code is being amended and what is proposed to be changed. Staff also explained that removal of these exceptions from the regulations will not affect the ability of the existing business to continue with their operations as they have been. Chapter 18.37 Nonconforming and Conforming Buildings and Uses of the Olympia Municipal Code provides for lawfully established uses to continue. This business will be able to continue utilizing the exceptions they are currently using.
One of the policies in the recently updated Olympia Comprehensive Plan was to simplify and streamline the zoning code. Removal of special exceptions that are already provided for elsewhere in the Olympia Municipal Code is consistent with that policy.
Policy PL1.17 in the Land Use Chapter of the Olympia Comprehensive Plan:
Evaluate development regulations and zoning to ensure they are clear, as simple as possible, and not redundant, and update if necessary.
Climate Analysis:
The proposed amendments do not change the existing regulations from supporting climate goals and efforts to reduce vehicle miles traveled. Allowing home based businesses permits small business owners to work from home. The regulations restrict the number of deliveries to the location of the home based business. When compared to a business in a commercial location, vehicle trips from customers and suppliers are generally lower for the home based business.
Equity Analysis:
Equity is challenging to address in code amendments. The regulations apply citywide, or at least equally across the residential zoning district designations regardless of where they are in the city, with one exception. The 300-400 block of West Bay Drive is singled out as an area where home based businesses have greater allowances than home based businesses located in the rest of the City of Olympia. The proposed amendments remove these special exceptions.
Neighborhood/Community Interests (if known):
City staff are in the midst of soliciting public comments and input on the first draft. The written comments received so far are attached to the staff report (see Attachment 2). The main community interest that resulted in this review of the regulations is the use of residential homes by lobbyists in the South Capitol Neighborhood. Staff has attempted to address these concerns while staying within the confines of what the City of Olympia is legally allowed to do. This issue is further discussed in the Background and Analysis section of the staff report.
Options:
1. Receive the briefing.
2. Receive the briefing, discuss it, ask questions, and provide feedback to staff.
3. Postpone the briefing to a later date.
Financial Impact:
This is an internally funded project.
Attachments:
Draft Amendments
Public Comments
Engage Olympia Webpage