Chapel Hill permits Family Child Care Homes as home occupations subject to NC General Statutes (Chapter 110 Article 7) and NC Division of Child Development and Early Education (DCDEE) licensing. A NC FCCH is care in the operator's residence for 3 to 8 children total — no more than 5 preschool-age children (including the operator's own preschoolers), plus up to 3 school-age children. A NC DCDEE license is required for any care of more than 2 unrelated children. A Chapel Hill home occupation zoning compliance permit is also required.
Chapel Hill's LUMO permits Family Child Care Homes as a recognized home-occupation use, deferring to North Carolina state law for capacity, licensing, and training requirements. Under NCGS § 110-86(3)(b), a Family Child Care Home (FCCH) is a child care arrangement located in the operator's residence where, at any one time, more than 2 children but fewer than 11 children receive care. The 2024 NC budget refined NCGS § 110-91(7)(b) to cap a FCCH at 8 children total — no more than 5 preschool-age children at any one time (preschool age = children under 60 months not yet attending kindergarten, including the operator's own preschool children), plus up to 3 school-age children. The operator's own school-age children do not count toward the cap. A NC DCDEE license (administered by NCDHHS) is required whenever more than 2 unrelated children are cared for, and includes: criminal background checks for the operator and household members 15+, medical statements, CPR/first aid certification, 18 hours of annual in-service training, and an initial and ongoing health-and-safety inspection of the home. Cost is $52 first-time application + $52 annual renewal. Care of 9-12 children requires a Family Child Care Home Plus license (added in 2024 budget). Care of more than 12 children requires a full child-care center license. Chapel Hill additionally requires a home occupation zoning compliance permit from the Planning Department. The LUMO 35 percent / 750 sq ft floor area cap applies to the use generally, but an FCCH operates principally within ordinary residential living areas (living room, kitchen, bedrooms) and the play-area footprint is functionally managed through DCDEE's space-per-child rule (25 sq ft of indoor activity space per child plus 75 sq ft of outdoor play area per child). The LUMO 3-vehicle cap on non-residential vehicles parked at any one time applies — child drop-off and pick-up traffic counts as 'drop-offs and pick-ups,' which are expressly exempt from the vehicle cap.
Operating an unlicensed child care arrangement above the 2-child threshold is a Class 3 misdemeanor under NCGS § 110-103. Chapel Hill zoning violations (operating an FCCH without a home occupation zoning compliance permit, or exceeding NC capacity caps) are enforced by the Chapel Hill Planning Department under NCGS § 160D-404 and § 160D-1119 with notice of violation, civil penalties, and possible permit revocation.
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