The idea of a company that gets its start from the garage is part of American pop culture. Disney, Hewlett Packard and Amazon all started in their foundersí garages. Many Falcon residents are trying to catch a piece of the American dream by operating their small businesses out of their basements, spare bedrooms and garages.Convenience, family needs and sky-high commercial rental costs are some of the reasons entrepreneurs choose to start their venture in the home. However, some could be violating zoning, community covenant and licensing laws.Home-based businesses in industries that would otherwise be regulated if they opened in a commercial building are almost always subject to the same licensing laws. As The New Falcon Herald reported in the November 2013 article, ìUnlicensed day care centers threaten industry,î unlicensed home day care providers who care for more than one familyís children can be fined between $1,000 and $10,000.Only certain types of foods can be prepared in unlicensed home kitchens. The 2012 Colorado Cottage Food Act allows for ìnonpotentially hazardous foodsî that donít require refrigeration, such as ìspices, teas, dehydrated produce, nuts, seeds, honey, candies, jams and certain baked goods,î according to Senate Bill 12-048. For those products, the act allows direct sales by home producers to consumers, without having to go through a state inspection. However, home-based businesses are still subject to county, city and community regulations.A research of home-based business regulations for the city of Colorado Springs residents led to an ìApplication for Home Occupation Permitî form that has to be completed and filed with the cityís planning and development department. Questions on the form address issues like outside employees and alterations to the home necessary for the business. The permit costs $60.Business consultants have seen many different types of in-home business startups in El Paso County. ìIf someone wants to put in a car repair or hair care, then the regulations become involved, as well as the HOAs,î said Brian Swanson, business consultant with LnB Connectors. ìThat doesnít mean that theyíre following them. Some of these home businesses are obvious, but then itís a matter of when the city, county and regional building are going to enforce their rules.îSome home occupations are specifically prohibited within city limits. Motor vehicle repair, hair and beauty shops that serve more than one person at a time, paint shops and medical marijuana businesses cannot operate out of a residence, according to the city of Colorado Springs September 2013 permit instructions.In unincorporated areas such as Falcon, county zoning, metropolitan district rules and homeowner association covenants govern whether certain home-based businesses are allowed. The El Paso County Land Development Code states ìresidential home occupation shall be clearly subordinate to the use of a lot as a residence.î The person conducting the business must reside on the lot, no more than 25 percent of the home can be used for the business, no outside storage or display of merchandise is permitted, and no more than three clients or customers can visit at the same time, according to section 5.2.30 of the code. Depending on the situation, the code indicates that home-based business owners ìmay be requiredî to pay $210 for a permit.Individual metro districts and HOAs within the county can implement more restrictions. ìWoodmen hills doesnít have any regulatory rules over home-based businesses,î said Lynne Bliss, president of the Woodmen Hills Metro District. ìThere may be more on the county level, but not on the district level.îMeridian Ranch covenants specifically allow certain types of home-based businesses. ìIn-home businesses not involving the servicing of customers or employees shall be allowed, provided such activities are conducted solely within the residence,î according to the December 2002 Declarations of Covenants for Meridian Ranch. ìNo commercial vehicles are allowed on the property, and there shouldnít be any outside advertising for the business in the community,î said Amy Aarons of Warren Management Group. The company, hired by Meridian Ranch to manage and enforce the covenants, also confirmed that, while most home based businesses are welcome, they cannot interfere with the rest of the neighborhood.Navigating the legal issues is worth it because of the financial benefits of operating a business from your home, Swanson said. ìMost people are getting started in their house because of the tax write-offs, which include a portion of their mortgage, utilities and computers they buy,î he said.Using space that is already included in the housing budget makes sense, Swanson said. As long as itís all legal.
