Strategy in Action

Tool: Accessory Commercial Units (ACUs)

In 2022, the Raleigh City Council adopted an ordinance allowing for limited accessory commercial units (ACUs) in residential areas, which the city calls a “live-work” home-based businesses. The city already allowed home-based businesses with home offices, but the ordinance expands opportunities for home-based commercial space that is open to employees and clients. 

Live-work businesses require a permit. Entrepreneurs can operate in an accessory unit if the home on the property is their primary residence and no more than two non-residents are employed by the business. In addition, the law limits visibility of the business: no outdoor storage is allowed, and business signage, other outdoor displays, and vehicles on site are restricted. Additionally, no more than five customers may visit the business at a time, and operating hours must be between 7 a.m. and 7 p.m. The ordinance also limits the types of permitted businesses to offices, art studios, and clothing or object shops. Restaurants and auto repair businesses are not allowed under this use. 

The live-work ordinance provides small business owners a potentially more affordable option than renting or buying space elsewhere. It also brings more commerce to residential areas, where small businesses can thrive.