Allentown's Home Business: The Rules That Matter

Every city handles home business a little differently. In Allentown, Pennsylvania, there are 6 distinct rules that residents and property owners should be aware of. Some are stricter than what neighboring cities enforce, and others are more relaxed. Here is what you need to know.

Home Occupation Permits

Allentown requires a zoning permit before commencing any new home occupation. Type 1 (no-impact) businesses are allowed as of right, but Type 2 home occupations on lots without arterial-street frontage require special exception approval from the Zoning Hearing Board.

Key details: Code Section: Section 660-48 (Home Occupations); Section 660-114 (Zoning Permits). Zoning permit: Required before commencing any home occupation. Type 1 (no-impact): Allowed as of right. Type 2 (employees/customers on site): Special exception required unless lot fronts an arterial street/mixed-use corridor. Special exception authority: Zoning Hearing Board (Section 660-115).

Operating a home occupation without a required zoning permit, or operating a Type 2 use that requires (but lacks) special exception approval, is a violation of the zoning ordinance. Under Section 660-123.D, a person, partnership, or corporation found liable in a civil enforcement proceeding must pay a judgment of not more than $500.00 plus all court costs plus reasonable attorney fees, and each day the violation continues is a separate offense.

Zoning Restrictions

Allentown allows home occupations as an accessory use to a residential dwelling but caps them at 25% of the principal building's gross floor area, prohibits exterior changes that make the building look commercial, and expressly bans a long list of intensive uses such as vehicle repair, restaurants, animal boarding, and equipment rental.

Key details: Code Section: Section 660-48 (Home Occupations). Floor-area cap: No more than 25% of the principal building's gross floor area. Accessory & subordinate: Must remain subordinate to the residential use. Exterior changes: No commercial-like alterations (lighting, separate visible entrance). Banned uses: Vehicle repair, restaurants, animal boarding, equipment rental, dispatch centers, tow/taxi services, commercial food prep.

A home occupation exceeding the 25% floor-area cap, making prohibited exterior alterations, or conducting a prohibited use is a zoning violation. Under Section 660-123, the zoning officer may order discontinuance of the illegal use and removal of illegal structures; a person found liable in a civil enforcement proceeding pays a judgment of up to $500.00 plus court costs and reasonable attorney fees, with each day a separate offense.

Customer Traffic Restrictions

Type 1 home occupations may have no clients or non-resident workers at all. Type 2 home occupations may have up to 2 nonresident employees and may admit customers only by appointment between 8 a.m. and 8 p.m., one appointment per hour, with no more than 2 clients on site at a time.

Key details: Code Section: Section 660-48.G and 660-48.H. Type 1 clients/employees: None allowed (residents only). Type 2 nonresident employees: Maximum of 2. Type 2 customer hours: 8:00 a.m. to 8:00 p.m., by appointment only. Appointment frequency: No more than one per hour; max 2 clients at a time (3 students for teaching).

Exceeding the employee cap, admitting clients outside permitted hours, or running an unpermitted Type 2 use is a zoning violation enforceable under Section 660-123: the zoning officer may order discontinuance, and civil enforcement can yield a judgment up to $500.00 plus court costs and reasonable attorney fees, each day a separate offense.

This is one of the stricter rules in Allentown's municipal code. If you are unsure whether your situation complies, it is worth checking with the city before proceeding.

Home Daycare

Family and group child care homes are expressly exempt from Allentown's home-occupation regulations but remain subject to all applicable permitting requirements, and child care licensing is governed by the Pennsylvania Department of Human Services under state law.

Key details: Code Section: Section 660-48.D (Exemptions). Zoning treatment: Exempt from home-occupation rules; still subject to applicable permits. State licensing: PA Department of Human Services (DHS), OCDEL. Family child care homes: 55 Pa. Code Chapter 3290. Group child care homes: 55 Pa. Code Chapter 3280.

Operating a home daycare without the required state DHS certification/license is enforced by the Commonwealth under the child-care licensing regulations. Failing to obtain a required city zoning permit or violating building/parking standards is enforceable by Allentown's zoning officer; civil enforcement under Section 660-123.D can yield a judgment up to $500.00 plus court costs and reasonable attorney fees, each day a separate offense.

Signage Rules

Allentown's sign table allows only exempt signs on residential buildings of 1-4 units, and small attached signs in N (neighborhood) zones may not exceed 2 square feet. For Type 1 'no-impact' home businesses, Pennsylvania state law independently bars any outside indication of the business, including signs.

Key details: Code Section: Table 660-15; Sections 660-97, 660-98, 660-48.C(1). 1-4 unit homes: Only exempt signs (Section 660-97) allowed. Small attached sign limit: 2 square feet in N zones. Internal illumination: Prohibited in N/MX-N/GX-N zones. Type 1 no-impact rule: No outside appearance of a business, including signs (53 P.S. Section 10107).

Erecting a non-exempt or oversized sign is a violation: a zoning permit is required before placing any non-exempt sign (Section 660-114.A(3)), and signs implying a property may be used for a purpose the ordinance prohibits are not allowed (660-96.B(7)). Under Section 660-123.D, civil enforcement can result in a judgment of up to $500.00 plus court costs and attorney fees, each day a separate offense; the zoning officer may also order sign removal.

Compared to other cities, Allentown takes a harder line on signage rules. The enforcement and penalty structure reflects that.

Cottage Food Operations

Allentown permits certain homemade food products to be sold directly to consumers under cottage food laws. Products must be non-potentially hazardous and properly labeled.

Key details: Allowed: Baked goods, jams, candy. Revenue Cap: Varies by state. Labeling: Required with allergens. Inspection: Generally not required.

Selling non-permitted foods: cease and desist. Exceeding revenue caps: commercial kitchen requirement. Labeling violations: warnings then fines.

If you are coming from a city with tighter rules, you will find Allentown gives residents more flexibility on cottage food operations.

The Bottom Line

Allentown is tougher than many cities when it comes to home business. Out of the 6 rules covered here, 2 are rated strict. If you are a homeowner, renter, or business owner in Allentown, take the time to understand these requirements before they become a problem. Most violations come with fines, and some repeat violations can escalate.

This guide is based on Allentown's current municipal code. Local rules can and do change, so check the individual ordinance pages for the latest details, penalties, and FAQs.