Richmond adopts new two-tier rules for home‑based businesses

Richmond commissioners adopted Ordinance 26‑17 on second reading, updating the city’s home‑occupation rules to reflect a two‑tier approach intended to encourage small, low‑impact entrepreneurship while protecting neighborhood character.

Under the new rules, Type 1 home occupations are low‑impact activities permitted in residential zoning without a city permit if they meet strict conditions: they must use no more than 400 square feet of the home, produce no detectable activity outside the residence, may not receive customers, hire nonresident employees, receive business‑related deliveries, or manufacture or store goods on site. City staff and the city attorney said this category covers remote office and purely online businesses.

Type 2 home occupations will require a home‑occupation permit before business activity begins; these may use up to 25% of a dwelling’s floor area, must be owner‑occupied, may have a single nonresident employee, and must meet performance standards addressing parking, exterior appearance, signage and noise. Food‑related enterprises must demonstrate compliance with applicable Kentucky health, environmental and agriculture regulations before a permit will issue.

Commissioners asked whether existing licensed home businesses would be grandfathered and how parking and enforcement would be handled. City staff said currently licensed operations can continue and that at renewal staff will determine whether a business fits Type 1 and therefore would no longer require a permit; parking will be judged using the city’s motor vehicle parking standards and codes/building staff would handle enforcement questions.

The ordinance passed on a roll‑call vote with Commissioners Newby, Brewer, Cole, Goble and Mayor Blythe voting yes.