Home Occupations

Home-based businesses are allowed in the City of Arroyo Grande with approval of a home occupation permit. The home occupation permit is intended to allow for enterprises that are conducted within homes in residential districts, and that are clearly incidental and secondary to the use of the dwelling unit and compatible with surrounding residential uses. The application fee for a home occupation permit is $81. If approved, the home occupation permit is valid as long as the same business remains at the same address. Business licenses must be renewed every year.

Download the application.

Conditions for Issuance of a Home Occupation Permit

  • The use of the dwelling for a home occupation shall be clearly incidental and secondary to its use for residential purposes by the inhabitants.
  • No persons, other than members of the family who reside on the premises, shall be engaged in the home occupation.
  • There shall be no change in the outward appearance of the building or premises or other visible evidence of the activity.
  • There shall be no sales of products on the premises, except produce (fruit or vegetables) grown on the subject property.
  • The use shall not allow customers or clientele to regularly visit the dwelling. Incidental visits may be permitted, such as the sale of produce or music lessons, if approved by the community development director.
  • No equipment or process shall be used on the property that creates noise, smoke, glare, fumes, odor, vibration, electrical, radio, or television interference disruptive to surrounding properties.
  • No home occupation shall be conducted in a garage. The garage must be kept clear for the parking of vehicles at all times.
  • The use shall not involve storage of materials or supplies in a garage or outside any structures. Any hazardous materials to be used in the home occupation shall be listed on the application, and material safety data sheets (MSDS) shall be provided, with the application for each material.
  • No signs shall be displayed in conjunction with the home occupation, and there shall be no advertising using the home address.
  • A Home Occupation Permit is not valid until a current city business license is obtained, and shall be valid only for the person to whom it is issued.
  • Additional conditions may be required if deemed necessary by the community development director for a specific home occupation permit.
Prohibited Home Occupations
  • Adult entertainment businesses
  • Animal hospitals or grooming facilities
  • Automotive and other vehicle repair (body or mechanical) upholstery, painting, or storage
  • Barber and beauty shop
  • Carpentry and cabinet making
  • Contractors storage yards - note: the parking of one commercial vehicle with an unladen weight of 4,500 pounds may be permitted
  • Exercise studio
  • Junk yards
  • Medical offices, clinics, and laboratories
  • Musical, dancing, and educational instruction having more than five students at any one time, or more than three classes per day
  • Welding and machine operation