Loveland's Home Business: The Rules That Matter

Every city handles home business a little differently. In Loveland, Colorado, there are 4 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.

Signage Rules

Loveland bars any exterior sign or exterior alteration that would reveal a home occupation is operating, with one narrow exception: a single building-mounted sign is allowed only in the Adaptive Re-Use Overlay Zone along North Cleveland, and it must meet the UDC's permanent sign standards.

Key details: General rule: No exterior sign for home occupations. Only exception: Adaptive Re-Use (North Cleveland) Overlay Zone. Sign standard if allowed: Must meet § 18.04.08.10 building-sign rules. Applies to: Both minor and major home occupations. Effective date: November 20, 2018.

Posting a yard sign, window sign or any other exterior indicator of a home business outside the Adaptive Re-Use Overlay Zone violates Section 18.02.06.01.B.8 and is enforceable under UDC Chapter 18.18, which can require the sign's removal and, for a major home occupation, place the business occupancy permit at risk of revocation for noncompliance.

This is not one of those rules that cities tend to ignore. Loveland actively enforces its signage rules requirements.

Zoning & Home Occupation Permits

Loveland's UDC allows a home business only as a use incidental to the residential use, capped at 25 percent of the dwelling's combined floor area, with the operator living on-site. Minor home occupations need no permit; major ones require a City business occupancy permit under Section 18.02.06.01.

Key details: Floor area cap: 25% of dwelling plus accessory buildings. Operator residency: Operator must reside on the property. Minor occupation: No permit needed in residential districts. Major occupation: Requires City business occupancy permit. Client hours: No clients 10 PM to 7 AM.

Exceeding the 25 percent floor-area cap, operating a prohibited use, or running a major home occupation without the required business occupancy permit is a zoning violation the City's code compliance staff can enforce under UDC Chapter 18.18, including a cease-operation order and revocation of any issued business occupancy permit until the home occupation conforms to Section 18.02.06.01.

Customer Traffic Restrictions

Loveland caps how many clients a home occupation can see at once: a minor home occupation may serve only one client or pupil at a time, while a major home occupation, which requires a city permit, may serve up to four people at once and no more than 12 in any 24-hour period.

Key details: Minor occupation limit: One client or pupil at a time. Major occupation limit: Four persons at once, 12 per day. Barber/beauty exception: Max two stations regardless of client cap. Client hours: None 10:00 PM to 7:00 AM. Effective date: November 20, 2018.

Serving more clients than the one-at-a-time minor cap or the four-at-a-time, 12-per-day major cap, or hosting clients between 10:00 PM and 7:00 AM, is a home-occupation violation the City can enforce under UDC Chapter 18.18, which can require the operator to obtain the correct permit tier, reduce client volume, or cease the home occupation entirely.

Home Daycare

Loveland allows licensed family child care homes in any dwelling unit without a zoning permit, so long as the required state license under 12 CCR 2509-8 is obtained and kept current. Large child care homes get one added zoning rule: no two may sit immediately next to each other on the same street segment.

Key details: Zoning permit: None required if state-licensed. Governing state rule: 12 CCR 2509-8 license required. Large home spacing: No two adjacent on same street segment. Last amended: Ord. 6636, effective Sept. 19, 2023.

Operating a home child care use without the state license required for its category under 12 CCR 2509-8, or opening a large child care home immediately adjacent to another one fronting the same street segment, is a Section 18.02.06.03 violation the City can enforce under UDC Chapter 18.18 in addition to any state licensing action.

The rules around home daycare in Loveland lean permissive, but that does not mean anything goes.

The Bottom Line

Loveland's home business rules are a mixed bag. Some areas are strict, others are relaxed, and the details matter. The best approach is to check the specific rule that applies to your situation rather than assuming Loveland is broadly strict or permissive.

Keep in mind that Loveland can amend these rules at any council meeting. For the most current version of any rule mentioned here, check the specific ordinance page, where we track updates as they happen.