California law treats both small (up to 8 children) and large (up to 14 children) family daycare homes as a residential use 'by right' in any zone permitting single-family or multifamily dwellings (Cal. Health & Safety Code §§1597.40, 1597.45). South Gate may not require a conditional use permit, zoning variance, or business-license-only restriction that prohibits the use. Operators must be licensed by the California Department of Social Services Community Care Licensing Division.
Cal. HSC §1597.40(a) states the Legislature's intent that 'family daycare homes for children should be situated in normal residential surroundings' and that 'local laws, regulations, or rules shall not directly or indirectly prohibit or restrict the use of a facility as a family daycare home.' Cal. HSC §1597.45(a) further provides that 'the use of a home as a small or large family daycare home shall be considered a residential use of property and a use by right for the purposes of all local ordinances, including, but not limited to, zoning ordinances.' This preempts any South Gate zoning rule that would require a CUP or hearing for a family daycare. The operator must hold a current California Department of Social Services (CDSS) family child care home license. Spacing, fire-code, and basic safety rules tied to the CDSS license apply. South Gate may still require a Title 5 business license and may apply non-discriminatory residential rules (parking, noise, building code via Title 9). For a large family daycare (9–14 children), South Gate may impose specified non-discretionary standards on spacing, traffic, and concentration but may not require a discretionary permit.
Operating a family daycare without a CDSS license is a violation of state licensing law enforced by CDSS Community Care Licensing. A South Gate code-enforcement action that treats a licensed family daycare as a non-residential use is preempted by HSC §1597.45 and may be challenged. Failure to obtain a city business license under Title 5 is enforceable by South Gate.
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