Santa Cruz, CA Home Business: Home Daycare (2026)

Family day care homes in the unincorporated County are governed primarily by California state law, which preempts local zoning. Under Health and Safety Code Section 1597.40, local laws may not directly or indirectly prohibit or restrict the use of a facility as a family day care home, and the state Child Day Care Act, building code, and fire code preempt local rules governing the use and occupancy of family day care homes. Section 1597.46, as amended by SB 234 (the Keeping Kids Close to Home Act, effective 2020), requires that large family day care homes be classified as a permitted use of residential property for zoning purposes and prohibits cities and counties from requiring a conditional use permit, zoning clearance, or other discretionary zoning approval that is not required of single-family residences. Family child care homes are treated as a residential use of property and a use by right for purposes of all local ordinances. Santa Cruz County's zoning code conforms to this requirement: planning analyses confirm the County correctly lists both small and large family child care homes as a permitted use in all residences, and the County updated its zoning definitions to a single 'day care home, family' definition consistent with the repeal of the prior distinct local classification. Operators must still obtain a State license from the California Department of Social Services, Community Care Licensing Division, and comply with state health, safety, and fire standards. Because the County defers to state law here, there is no separate County use permit required to operate a family day care home in a residence.