Just three years later, however, the Ammens were forced to sell the property to extricate themselves from legal problems with the local municipality and a lawsuit filed by a neighbor Amy describes as a "a grumpy busybody".

They lost all of the $15,000 they spent on improvements to the property, along with much of their original investment. They relocated to a 45-acre plot in another town, but Amy's husband was so disenchanted by the experience, he refused to allow her to relaunch her business.

The Ammens fell victim to regulations known as zoning ordinances--a body of law that can be so convoluted, one long-time member of the Kent, NY, planning board (of which I am a member), refers to our town's version as "Satanic Verses."

Unfamiliarity with local zoning laws can be a fatal mistake for home-based businesses. "The worst mistake we made was taking the previous owner at his word when he said the property was zoned agricultural, when, in fact, it had been re-zoned residential prior to our purchase," Ammen recalls of her ordeal. "We tried to save Money by not using an attorney (for the purchase), but it cost us many times more in the long run."

Zoning regulations can be so convoluted they amount to "Satanic Verses."

Thousands of other home-based workers around the country face zoning problems on a regular basis. While they may be smaller in scope than the Ammens' saga, they can be just as distracting--and just as disruptive to your business.

The ammens' story is an extreme example of what can happen when you run afoul of local zoning regulations. The typical home worker is much more likely to encounter minor zoning problems, if any at all. But zoning rules are one aspect of running a home-based business of which you must be aware.

LOCAL FUNCTION

What zoning regulations you are subject to and how strictly they are enforced is generally a function of where you live. Zoning rules in large cities such as New York and Los Angeles tend to be very specific about what is and is not allowed at a given location. However, the inherent anonymity of big-city living often means that smaller home-based operators fall through the cracks.

"At the most basic level, zoning regulations are designed to insure people's rights to air, light and privacy," points out Alan Decker, the code enforcement officer for Highlands County, FL, and president of a home-based window-cleaning business there. They accomplish that by making sure businesses do not open in areas that have been designated exclusively for residential use.

Zoning codes traditionally have been targeted at conventional types of businesses, which are most likely to have an impact on such things as " air, light and privacy." However, many home-based businesses are also subject to zoning rules. And as the number of home-based businesses continues to grow, some municipalities have enacted regulations specifically addressing issues related to home workers.

To find out whether your home business is subject to any zoning regulations, contact the zoning board, planning board, building department or code enforcement office of your city, town or county. A study conducted for the American Planning Association found that 90% of all municipalities place some restrictions on the business use of residences.

That study found the activities most often restricted by zoning ordinances include parking and traffic; use, shape and size of outdoor signs; non-family member employees (although this has been successfully challenged in some court cases); percentage of a residence that can be used for business; hours of operation; and storage of materials.

As might be expected in our "car-centric" society, the automobile is most often the catalyst when a home-based business runs afoul of the "zoning police."

Home-based business owners must become aware of local zoning regulations.

Lauren Januz runs his consulting business from a home office in Libertyville Township, IL, an upscale area adjacent to Lake Forest and Mettawa, the highest-income municipalities in the greater Chicago land area, according to the most recent Census Bureau report.

A 23-year resident of the area, Januz counts "at least 20" other home-based businesses is his subdivision of about 100 homes. In all that time, however, ther has been just one incident resulting in a zoning enforcement action, and it was caused by--what else?--cars.

One of Januz's neighbors was running a landscaping and tree-service business from his home. He erected a large fence to obscure the view of his heavy equipment, which was fine with the subdivision's other residents, buy he had 10 to 15 workers parking their cars on the street everyday.

"This is an area of $300,000 homes, and a lot of the cars were really wrecks," explains Januz. Although several neighbors approached the offending property owner, he made no attempt to correct the problem, and a complaint was finally filed with the Lake County Building and Zoning Department. He ended up selling the property and relocating the business.

Ironically, all of the home-based business owners in that subdivision are most likely technically in violation of the county's zoning ordinances. But their ability to coexist peacefully with each other and their non-business neighbors is not unusual. In many cities and towns, code enforcement officers do not take action against discretely-operated home businesses unless someone files a complaint. People do it, but be aware that just because they turn a blind eye in one community doesn't mean they will in another.

LEARN THE RULES

The best way to avoid zoning problems for your own home-based business is to start by learning the regulations that apply to your property. Some areas have no zoning statutes, some permit certain types or home-based ventures, some require special permits, and some don't allow anything.

With few exceptions, zoning is a local issue. Most laws are enacted and enforced at the municipal level, although county and even state regulations can come into play in certain cases.

Zoning regulations can be disguised as different things in different places. Leah Duszak found that out when she relocated her secretarial service to Sutton, MA, several years ago. In order to operate her business from home, she discovered, she would need to obtain a "special permit."

Duezak waded through the red tape to obtain the permit, which she soon discovered was not really "special" at all but was routinely issued for home-based businesses like hers. The downside was that it imposed a number of restrictions, including a ban on any type of outside sign.

"That was a real detriment, because I was new to the area, and my home is located on a high-traffic street," she says.

However, during the permit application process, Duszak became friendly with a clerk in the building department. When she complained about the sign ban, the clerk let her know that many home-based businesses in the area ignored the ban. As long as the sign was small and tasteful, and no neighbors complained, the town turned an blind eye toward the practice.

Good relations with neighbors can be crucial to avoiding problems.

Duszak posted her sign and has not had any problems with enforcement authorities as a result. That is not to say, however, that zoning regulations can be selectively ignored at will by home-based workers.

Try to find out what is and is not considered acceptable in your area. If you live in a smaller town or city, you may be able to cultivate a relationship with an administrator or official to get this information, as Duszak did. In a big city, your best source of information is probably other home-based workers.

Keep in mind, however, that if you decide to go with the standards of general convention rather than the letter of the law, you may be leaving yourself open to problems later on. A new administration with a different attitude toward enforcement or a new neighbor who simply does not like you or your business could make things tough for you.

If you know up front that your home business will violate a zoning ordinance, you can apply for a variance.

A Variance is an exemption from some portion of the zoning law. The process of obtaining one varies from place to place and sometimes defies logic.

Regulations are designed to protect quality of life in residential areas.

In my town, for example, you must apply to the planning board to use your home for any business purpose that requires parking, involves employees or has the potential to create a "substantial" increase in traffic("substantial" is not defined in "Satanic Verses"), even though no such uses are allowed by code.

The board, in turn, is required to reject your application and refer you to the zoning board of appeals (ZBA) for a variance. We forward a recommendation that the variance be granted of denied, and the ZBA routinely accepts our recommendation.

The process is designed to give the planning board some authority over business activities in residential areas, as we are the agency rightly assumed to have the best handle on what is most likely to be acceptable or unacceptable in a given neighborhood.

Most zoning boards are made up of ordinary people, and your chances of obtaining a variance for a "low-impact" home-based business are generally good. "Low-impact" means the business is unlikely to generate excessive traffic, create parking problems or place a burden on municipal resources such as water, sewage or police protection.

BEWARE OF NEIGHBORS

A public hearing is part of the variance application process in most jurisdictions, and if any neighbors show up to oppose the variance at that hearing, your chances are pretty much shot. So it;s a good idea to get on friendly terms with your neighbors and let them know just what you are doing before you apply for a variance.

Sometimes, you can do everything by the book and still find yourself facing the Hobson's choice of abandoning your home-based business or running it illegally. In that case, your best bet might be to get the law changed.

That's what Ron Miller and his wife, Annik, did when the city of Melbourne, FL, refused their request for a business permit for their home-based translation business in 1992. Despite the presence of many home-based businesses in the area, Melbourne had a statute on the books that amounted to an outright ban of such enterprises.

The Millers orchestrated a campaign to get the law changed. They lobbied city council members, enlisted the support of other home-based business owners and even drafted a model ordinance.

Their efforts were rewarded when the Melbourne city council voted 7-0 to enact a new ordinance permitting home-based businesses and describing the circumstances under which those businesses may operate. The new law acknowledges the importance of home-based employment, specifically citing its advantages to disabled persons and parents, and its potential to "avoid the expenses related to day care; and ...promote family values."

It defines "home occupation based business" as "specific businesses conducted entirely within a dwelling unit and carried on by an occupant thereof, which occupation is clearly incidental and secondary to the use of the dwelling for dwelling purposes and does not change the residential character thereof."

More and more cities and towns are recognizing the importance of home businesses.

It permits such businesses but limits them to office and professional uses, banning walk-in or drive-in business, the display of goods outside the home and storage of dangerous materials. It also bans employees other than family members, but, as mentioned earlier, that provision has been successfully challenged in other laws regulating home businesses.

As for Amy Ammen, she solved her problem in true entrepreneurial style. After a divorce from her husband, she arranged to offer her pet-training services through half a dozen or so commercial establishments, such as pet shops. She handles administrative chores from her home office in the Milwaukee residential hotel where she now lives.

"The only way anyone would know I was running a business would be if they saw a copy of this article," she jokes.