Weds, Oct 21, 2026
6:30 – 8:30 pm
Lincoln Elementary Cafeteria
Proposed changes to Olympia municipal code regarding home-based businesses and small-scale commercial
Please Join Us at this Neighborhood Event
Please join your neighbors the evening of Weds, Oct 21st and provide your input to the City of Olympia on two proposed changes to residential zoning.
At the forum, you’ll learn about proposed new rules on home-based businesses and allowing small-scale businesses to operate in any residential neighborhood.
Background on Home-Based Businesses
In 2025, while updating the City of Olympia 2045 Comprehensive Plan, comments were made, voicing concern about homes being used for business purposes that appeared to go beyond what would generally be allowed for a home-based business. The Olympia City Council directed staff to update the regulations for home-based businesses in 2026.
These comments included complaints about homes being used for business purposes and left vacant while the Legislature is out of session – an issue that goes back a few decades. Some have been converted to commercial type office space.
What the city can and cannot do
- Cannot require homes to be occupied, but can require that it be kept up and maintained
- Cannot regulate who owns a home (lobbyist/corporation, family, individual)
- Can address homes converted to commercial type office space if city code enforcement staff can determine this has occurred
- Can require home-based business owners to obtain a business license and provide proof that the site is their primary residence
What do some of the proposed code amendments do?
The proposed amendments would change the current title of Chapter 18.02.180(H) from “home occupations” to “home-based businesses”, so it is more clear.
It would also add a definition of principal residence as “a residence where a person lives and considers their main home for legal, tax, voting, IDs or drivers licenses, and mortgage purposes.”
Under Chapter 18.04, it would more clearly state that the purpose of the home-based business provisions is to allow a portion of a residence to be used for a business that is clearly an accessory use to the residential use and does not change the residential character of the neighborhood.
The proposed amendments would change the code to state, “No person(s) other than those who live in the residence shall participate in the home-based business.” And they would be changed to say, “Home-based businesses shall not occupy more than 25 percent of the total floor area of the dwelling.”
View all proposed code amendments on Home-Based Business Code Amendments webpage
Timeline
July 2025 – First draft released for public comment, Home-Based Business Code Amendments webpage created, notices sent out
July 20, 2026 – Olympia Planning Commission briefing (recording of meeting)
Aug 17, 2026 – Planning Commission public hearing (recording of meeting)
Sept 24, 2026 – Land Use & Environment Committee briefing (link to where agenda and meeting materials will be posted)
TBD – Olympia City Council meeting
Small-Scale Commercial
The Olympia City Council adopted a resolution at their Nov 10, 2025 meeting to accept the draft Land Use and Urban Design Chapter of the Olympia 2045 Comprehensive Plan update.
This chapter will allow small-scale commercial uses in residential neighborhoods, such as corner stores, child care facilities and other local services.
Under Goal 24 – Development maintains or improves neighborhood livability (page 159 of the comp plan), Policy 24.6 reads, “Allow small-scale commercial uses within neighborhoods through conditional use permits until design standards are developed. Commercial uses in residential zones should be appropriately scaled and designed to serve nearby residents.”
The initial timeline was to gather community input in mid-September and produce a draft based on it, with a briefing to the Planning Commission in October and a public hearing in November. This timeline may change, depending on what the Land Use & Environment Committee does with the proposed rules on home-based businesses.
How to Get Involved
If you are interested in either of these issues and would like to get involved, you can attend the Residential Housing Neighborhood Forum on Oct 21st to do so. City staff will do a presentation, listen to your suggestions for improving the proposed changes and answer any questions you may have.
You can also email written comments to Senior Planner David Ginther at dginther@ci.olympia.wa.us. Or send a letter via U.S. mail to:
David Ginther
City of Olympia Community Planning and Economic Development Dept.
PO Box 1967, Olympia WA 98507-1967
South Capitol Neighborhood Association 