For many years, technological advances and evolving attitudes toward work-life balance increased the prevalence of home-based businesses in New Jersey and throughout the country. Then in 2020, the COVID-19 pandemic forced tens of millions of people to work from home. Even when the pandemic subsided, many people realized they were capable of operating their business from their residence and no longer wanted to commute to their job.
However, entrepreneurs in New Jersey and elsewhere often find their dream of maintaining a home-based business thwarted by local zoning and land use rules that restrict commercial operations to certain areas. Now, New Jersey lawmakers are considering a bill that could have a transformative impact on people’s ability to work out of their house or apartment.
The proposed Home Business Jobs Creation Act seeks to exempt certain home-based businesses from local municipal zoning requirements, effectively making it easier for residents to operate businesses from their homes. Though certain professionals, such as doctors, lawyers, architects and dentists, were often allowed to open a practice in residential areas, other types of operations were prohibited. This reflects outdated standards when brick-and-mortar businesses usually required a great deal of parking and often had people coming and going all day. Now, so much business is conducted online that many jobs might not even be noticed by neighbors.
Supporters of the law believe the exemption would streamline business creation, reduce regulatory obstacles, and empower individuals to contribute to New Jersey’s economy. Prospective entrepreneurs would be able to follow their dream rather than worry about paying for space in a competitive commercial real estate market.
There are several elements required of a home-based business that would qualify for the exemption, such as:
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The business activity is compatible with the residential use of the property and others around it.
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The number of employees or visitors to the property is similar to that of a purely residential home in the neighborhood.
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There is no indication of business operation on the home’s exterior, such as parking spaces, signs or lights normally not associated with a home.
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The business does not produce noise, glare, interference with electricity or communications, fumes, odors or vibrations that neighbors can detect.
By removing land use barriers, the act could promote economic growth in New Jersey, generating tax revenue and fostering job creation. Home-based businesses contribute significantly to the state economy, and this proposed legislation could support their expansion by enabling more residents to start and sustain businesses.
Frieri Law Group handles business law and real estate issues for clients in Union, Morris and Somerset counties. To speak with an accomplished New Jersey attorney about your specific legal needs, please call 908-883-3390 or contact us online. Our office is in Cranford.