Santa Cruz, CA Home Business: Zoning Restrictions (2026)

SCMC Section 24.10.160(1) states the intent: a home occupation is allowed for 'home enterprises that are clearly incidental and secondary to the use of the dwelling unit and compatible with surrounding residential uses.' Subsection 2 requires the business to be operated only by a resident of the dwelling, to employ no more than one person other than resident family/household members, to not change the residential character of the unit, and to not generate more than eight vehicular round trips per day including deliveries and clients. Subsection 3 (Restrictions) bars the use of an area greater than 400 square feet; the use of any required front or exterior side yard, setback, or required parking space; storage or use of hazardous or unsanitary materials; noise above the city's standards or other nuisance factors inconsistent with Chapter 24.14, Part 2 (Performance Standards); and vehicle repair except as allowed under Section 24.12.1200. Home occupations are listed as a principally permitted accessory use in the city's residential districts (for example R-S under Section 24.10.210), subject to these standards. Remote employees working at home for an outside company are not considered a home occupation unless classified as independent contractors.