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City attorney outlines changes to home‑based business rules and proposed SUP/CUP reforms
Summary
To comply with Texas HB 2464, the city attorney proposed renaming 'home occupation' to 'home‑based business' and adopting the legislature's 'no‑impact' definition; staff also proposed moving many conditional uses to 'permitted by right,' removing default SUP durations, and easing transfer rules if operations remain substantially similar.
City Attorney Caputo walked the council through statutory changes required by the Texas Legislature's HB 2464 and staff's suggested edits to Lakeway's code. "HB 2464 was passed last session... it is an attempt by the legislature to standardize how cities handle businesses operating out of homes," Caputo said, explaining the new 'no‑impact home‑based business' concept and noting staff will focus compliance on parking, visibility from the street, noise, and other objective factors.
Separately, staff proposed substantive alterations to the SUP/CUP code: removing default expiration periods so permits remain valid unless materially changed, allowing transfers to proceed when the use and operation remain substantially similar, and moving many routine commercial uses from conditional review to permitted status. Councilmembers debated guardrails (especially the 12‑month abandonment rule and what constitutes a "material operational or site change") and directed staff to take redlines to ZAPCO for detailed recommendation before any ordinance is adopted.
