Record #: O2016-4014   
Type: Ordinance Status: Failed to Pass
Intro date: 5/18/2016 Current Controlling Legislative Body: Committee on Housing and Real Estate
Final action:
Title: Amendment of Municipal Code Titles 2, 3, 4 and 17 regarding regulation and licensing of shared and short term housing units
Sponsors: Moreno, Proco Joe
Topic: MUNICIPAL CODE AMENDMENTS - Title 2 - City Government & Administration - Ch. 24 Dept. of Consumer Service, MUNICIPAL CODE AMENDMENTS - Title 3 - Revenue & Finance - Ch. 24 Chicago Hotel Accommodations Tax, MUNICIPAL CODE AMENDMENTS - Title 4 - Businesses, Occupations & Consumer Protection - Ch. 5 License Fees for Title 4 Licenses, MUNICIPAL CODE AMENDMENTS - Title 4 - Businesses, Occupations & Consumer Protection - Ch. 6 Regulated Business License, MUNICIPAL CODE AMENDMENTS - Title 4 - Businesses, Occupations & Consumer Protection - Ch. 9 Shared Housing Units, MUNICIPAL CODE AMENDMENTS - Title 17 - Chicago Zoning Ordinance - Ch. 2 Residential Districts, MUNICIPAL CODE AMENDMENTS - Title 17 - Chicago Zoning Ordinance - Ch. 3 Business & Commercial Districts, MUNICIPAL CODE AMENDMENTS - Title 17 - Chicago Zoning Ordinance - Ch. 4 Downtown Districts, MUNICIPAL CODE AMENDMENTS - Title 17 - Chicago Zoning Ordinance - Ch. 17 Terminology & Measurements, Land Use & Zoning-Tables & Index
Attachments: 1. O2016-4014.pdf
Related files: R2019-362
ORDINANCE

BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CHICAGO:
SECTION 1. Section 2-25-050 of the Municipal Code of Chicago is hereby amended by inserting the language underscored, as follows:

2- 25-050 Powers and duties of the department.

(Omitted text is unaffected by this ordinance)
(b) Powers and duties of the commissioner and the department. The powers and duties ofthe commissioner and department shall be as follows:

(Omitted text is unaffected by this ordinance)
(10) To require the production and examination of books, papers, records and documents pertinent to any license, registration or permit or lack thereof, or to any license, registration or permit application or lack thereof, or to any license, registration or permit fee or business tax paid or required to be paid under this Code, and to issue and enforce subpoenas therefor, as well as to institute investigations, inquiries or hearings and to take testimony and proof under oath at such hearings;
SECTION 2. Chapter 3-24 ofthe Municipal Code of Chicago is hereby amended by adding a new section 3-24-035, by deleting the language stricken through and by inserting the language underscored, as follows:

3- 24-020 Definitions - Construction.
A. For the purpose of this chapter, whenever any of the following words, terms or definitions are used herein, they shall have the meaning ascribed in this section:

(Omitted text is unaffected by this ordinance)
4. "Hotel accommodations" means, except as otherwise provided in this paragraph, a room or rooms in any building or structure kept, used or maintained as or advertised or held out to the public to be an inn, motel, hotel, apartment hotel, lodging house, bed-and-breakfast establishment, vacation rental, as defined in Section 4-6-300, shared housing unit as defined in Section 4-9-010. dormitory or similar place, where sleeping, rooming, office, conference or exhibition accommodations are furnished for lease or rent, whether with or without meals. :fhe

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term "hotel accommodations" shall not include (i) an accornrnodation which a person occupies, or has the right to occupy, as his domicile and permanent residence; (ii) any temporary accommodation provided in any building or structure owned or operated, directly or indirectly, by or on behalf of a not-for profit medical-institution, hospital, or allied educational institution; or (iii) an accommodation in a bed and breakfast establishment that-is licensed under Section 4


(Omitted text is unaffected by this ordinance)

3- 24-030 Tax imposed.
There is hereby imposed and shall immediately accrue and be collected a tax, as herein provided, upon the rental or leasing of any hotel accommodations in the City of Chicago, at the rate of four and one-half percent of the gross rental or leasing charge.
In addition to the tax imposed under subsection A of this section, there is hereby imposed and shall immediately accrue and be collected a surcharge, as herein provided, upon the rental or leasing of any hotel accommodations at any vacation rental, shared housing unit or bed-and-breakfast establishment in the City of Chicago in which the entire dwelling unit is rented, at the rate of four percent of the gross rental or leasing charge as set by the operator ofthe accommodation. The purpose of this surcharge is to help fund initiatives intended to increase access to affordable housing and alleviate homelessness in Chicago. The surcharge is a part of the tax imposed by this Chapter, and all references to the tax shall be deemed to include the surcharge.

(Omitted text is unaffected by this ordinance)
SECTION 3. Section 4-5-010 of the Municipal Code of Chicago is hereby amended by deleting the language stricken through and by inserting the language underscored, as follows:

4- 5-010 Establishment of license fees.

(Omitted text is unaffected by this ordinance)
Limited business (4-4) $250.00
Regulated Business License (4-6) - Other Than Hotels $250.00


Hotels (4-6) $250.00 plus $2.20 per room

|1010|SI0,000.00. if the intermediary has 1,000 or more short term residential rentals listed on its
platform; or $5.000.00. if the intermediary has 999 or fewer short term residential rentals listed on its platform

All Other Regulated Businesses (4-6)

(3) [Reserved!. Regulated Business License (4-6) Hotels..

(Omitted text is unaffected by this ordinance)

SECTION 4. Section 4-6-010 ofthe Municipal Code of Chicago is hereby amended by deleting the language stricken through and by inserting the language underscored, as follows:

4-6-010 Regulated business license.

(Omitted text is unaffected by this ordinance)
(c) Business activities requiring a regulated business license under this chapter shall include the following: (1) health club; (2) clothing alteration; (3) laundry service; (4) residential real estate developer; (5) tattooing, body piercing or tanning facility; (6) day labor agency; (7) adult family care center; (8) assisted living establishment; (9) long-term care facility; (10) adult family care home; (11) automatic amusement operator; (12) private scavenger; (13) secondhand dealer in children's clothing and children's products only; (14) junk peddler; (15) debt collectors; (16) hospital; (17) hotel; (18) board-up company; (19) dry cleaner; (20) hazardous materials; (21) single-room occupancy buildings; (22) booting of motor vehicles; (23) immigration assistance; (24) expediter company: (25) expediter/natural person; (26) home occupation; (27) home repair; (28) bed-and-breakfast establishment; aod (29) vacation rentals; and (30) short term residential rental intermediary.
SECTION 5. Section 4-6-180 of the Municipal Code of Chicago is hereby amended by deleting the language stricken through and by inserting the language underscored, as follows:

4-6-180 Hotel.

(a) Definitions. As used in this section:


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"Hotel" means any building or structure kept, used, maintained as, advertised or held out to the public to be an inn, hotel, motel, family hotel, apartment hotel, lodging house, dormitory or other place, where sleeping or rooming accommodations are furnished for hire or rent, and in which seven or more sleeping rooms are used or maintained for the accommodation of guests, lodgers or roomers. The term "hotel" shall not include "single-room occupancy buildings," or "bed-and-breakfast establishments," "vacation rentals;" or "shared housing units" licensed or registered, or required to be licensed or registered, by the cityas defined in Section 13 4 010.

(Omitted text is unaffected by this ordinance)
SECTION 6. Section 4-6-290 ofthe Municipal Code of Chicago is hereby amended by inserting the language underscored, as follows:

4-6-290 Bed-and-brcakfast establishment.

(a) Definitions. As used in this section:

(Omitted text is unaffected by this ordinance)
"Bed-and-breakfast establishment" or "establishment" means an owner-occupied single- family residential building, an owner-occupied, multiple-family dwelling building, or an owner-occupied condominium, townhouse or cooperative, in which 11 or fewer sleeping rooms are available for rent or for hire for transient occupancy by registered guests. The term "bed-and-breakfast establishment" does not include single-room occupancy buildings as that term is defined in Section 13-4-010; shared housing units registered pursuant to Chapter 4-9 of this Code; or vacation rentals licensed pursuant to Section 4-6-300. If the bed-and-breakfast establishment is a single-family residential building located on a lot that includes a principal house and an accessory building that was being used for residential purposes as of January 16, 2003, the accessory building shall be considered to be part ofthe establishment. The term "guests" does not include members ofthe owner's family within the meaning of the Chicago Zoning Ordinance; nor does it include persons who have signed a lease to use and occupy residential property unless the leased residential property is held out by its owner, or by any person acting on the owner's behalf, to be a bed-and-breakfast establishment.

(Omitted text is unaffected by this ordinance)

SECTION 7. Section 4-6-300 of the Municipal Code of Chicago is hereby amended by deleting the language stricken through and by inserting the language underscored, as follows:

4-6-300 Vacation rentals.

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(a) Definitions. As used in this section:
(Omitted text is unaffected by this ordinance)
"Dwelling unit" has the meaning ascribed to that term in section 17-17-0248.
"Guest" means any person who rents a vacation rental for transient occupancy by such person. The term "guest" does not include members of the owner's household, as that term is defined in section 17-17-0270.
"Homeowners association" means the association of all the unit owners, acting pursuant to bylaws through its duly elected board of managers. For purposes of this definition "unit owner" means the person or persons whose estates or interest, individually or collectively, aggregate fee simple absolute ownership of a unit, or in the case of a leasehold condominium, the lessee or lessees of a unit whose leasehold of the unit expires simultaneously with the lease.

(Omitted text is unaffected by this ordinance)
"Transient occupancy" has the same meaning ascribed to that term in section 4-6-290 means any occupancy on a daily or nightly basis, or any part thereof, for a period of 30 or fewer consecutive


"Vacation rental" means a dwelling unit that is hot an owner-occupied dwelling unit and contains 6 or fewer sleeping rooms that are available for rent or for hire for transient occupancy by guests.

section 17 17-0270. The term "vacation rental" shall not include: (i) single-room occupancy buildings or bed-and-breakfast establishments, as those terms are defined in Section 13-4-010; (ii) hotels, as that term is defined in Section 4-6-180; (iii) a dwelling unit for which a tenant has a month-to-month rental agreement and the rental payments are paid on a monthly basis; (iv) a shared housing unit registered pursuant to Chapter 4-9 of this Code; or (ivy) corporate housing. For purposes of this definition:

(Omitted text is unaffected by this ordinance)

(g) Prohibited acts. It shall be unlawful for any licensee engaged in the business of vacation rental to^

(Omitted text is unaffected by this ordinance)
(6) serve or otherwise provide alcohol to any guest, or invitees of a guest, under the age of 21 years;

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rent less than the whole vacation rental to guests during a single transaction;
rent the vacation rental in multiple transactions for the same or overlapping time periods.
(Omitted text is unaffected by this ordinance)
SECTION 8. Chapter 4-6 of the Municipal Code of Chicago is hereby amended by inserting a new Article XXXI and Section 4-6-400 through and including 4-6-410, as follows:

ARTICLE XXXI. SHORT TERM RESIDENTIAL RENTAL INTERMEDIARY.

4-6-400 Short term residential rental intermediary.
(a) Definitions. As used in this section, the following definitions shall apply: "Bed-and-breakfast establishment" has the meaning ascribed to that term in Section 4-6-290.
"Guest" has the meaning ascribed to that term in Sections 4-6-290,4-6-300 or 4-9-010, whichever is applicable.

"Homeowners association" has the meaning ascribed to that term in Section 4-6-300.
"Platform" means an internet-enabled application, mobile application, or any other digital platform used by a short term residential rental intermediary to connect guests with a short term residential rental provider.
"Short term residential rental" means a dwelling unit located within the city that is rented as, or held out as being used as, a shared housing unit, vacation rental or bed-and-breakfast establishment.
"Short term residential rental intermediary" means any person, who for compensation or a fee, uses a platform to connect guests with a short term residential rental provider for the purpose of renting a short term residential rental.
"Short term residential rental provider" or "provider" means any person who offers for rent a short term residential rental unit.
"Shared housing host" has the meaning ascribed to that term in Section 4-9-010. "Cooperative building" has the meaning ascribed to that term in Section 4-6-300. "Dwelling unit" has the meaning ascribed to that term in Section 17-17-0248.


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"Shared housing unit" has the meaning ascribed to that term in Section 4-9-010. "Transient occupancy" has the meaning ascribed to that term in Section 4-6-290. "Vacation rental" has the meaning ascribed to that term in Section 4-6-300.
License - Required. No person shall engage in the business of short term residential rental intermediary without first having obtained a license under this section.
Application - Additional information required. In addition to the requirements set forth in Section 4-4-050, an application for, and, if requested, renewal of, a regulated business license to engage in the business of short term residential rental intermediary shall be accompanied by the following information:

proof of all insurance required by this section;
any other information that the commissioner may reasonably require in connection with issuance or renewal of the license.
Legal duties. Each licensee shall have the following duties:

obtain commercial general liability insurance, with limits of not less than $1,000,000 per occurrence, for bodily injury and property damage arising from use of accommodations booked using the licensee's service. Each policy of insurance shall: (i) be issued by an insurer authorized to insure in the State of Illinois; and (ii) be maintained in full force and effect for the duration of the license period. ,
provide commercial general liability insurance, with limits of not less than $1,000,000 per occurrence for bodily injury, personal injury (if commercially available to the licensee), and property damage arising in any way from activities conducted pursuant to a registration or issuance of license for a short term residential rental. Such insurance shall cover any bodily injury or property damage sustained by any guest arising in any way from activities related to the rental ofthe short term residential rental. Each policy of insurance provided shall have policy limits as set forth in this subsection that apply separately for each short term residential rental, and if the policy has an aggregate limit, the aggregate limit shall apply separately to each short term residential rental. Each policy of insurance shall: (i) be issued by an insurer authorized to insure in the State of Illinois; and (ii) be maintained in full force and effect for as long as the short term residential rental is registered or licensed, whichever is applicable. The licensee shall provide notice to the commissioner of the cancellation of, or lapse in, the policy as soon as is reasonably practicable after the licensee becomes aware ofthe cancellation of, or lapse in, the

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policy.
advise each provider that short term residential rentals may require a license under Section 4-6-290 or Section 4-6-300, or registration under Section 4-9-020;
advise each provider that the provider must comply with all existing applicable rental agreements, or homeowners association or cooperative building rules or restrictions, regarding the rental for transient occupancy of the short term residential rental;
advise each short term residential rental provider that every listing shall include the following information:
. (i) the short term residential rental provider's cancellation and check-in and check-out policies;
. (ii) a statement on: (1) on whether the short term residential rental is wheelchair or ADA accessible; (2) whether the short term residential rental has any parking availability or restrictions; and (3) the availability of, or restrictions on, the use of any recreational facilities or other amenities applicable to guests;
. (iii) a description of the short term residential rental, including the number of sleeping rooms and bathrooms, and whether the entire dwelling unit, or only a portion thereof, is available for rent; and

. (iv) the short term residential rental provider's city license or registration number, or an
indication that a registration application has been filed and that a registration number is pending.
Records and Reports. The licensee shall keep accurate books and records and maintain such books and records for a period of three years.
Each licensee, on a quarterly basis, shall provide reports and data to the commissioner as provided by the commissioner in rules. The commissioner may not require the disclosure of personally identifiable user information, or information that may reasonably lead to the identification of a user, except pursuant to Section 4-6-410 or a valid court order.
Ineligibility for listing. A short term residential rental shall be ineligible for listing by a provider on an intermediary platform under the following conditions:
(1) (A) when, in the determination of the commissioner, the rental of the short term residential rental creates a nuisance because, within any consecutive 12-month period, at least three separate

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incidents involving illegal acts, as that term is defined in Section 4-4-313(h), occurred: (i) in the short term residential rental; (ii) in or on the premises in which the short term residential rental is located; (iii) in the short term residential rental's parking facility, or (iv) on adjacent property. For purposes of determining whether three or more illegal acts occurred during a 12-month period, illegal acts occurring shall be limited to acts ofthe guests, or of invitees ofthe guests, or to acts otherwise involving circumstances having a nexus to the operation ofthe short term residential rental while rented to a guest;
a short term residential rental is listed on, or located in a building that is listed on, the city's Building Code Scofflaw List or Problem Landlord List pursuant to Section 2-92-416; or
a short term residential rental was found to be in violation of any applicable licensing or registration chapter of this Code, and the condition that gave rise to the violation has not been corrected.
(2) Upon determining that a short term residential rental is ineligible under this subsection to be listed, the commissioner shall notify the short term residential rental provider, in writing, of such fact and ofthe basis for the determination of ineligibility. Such notice shall include a statement informing the short term residential rental provider that such provider may, within 10 days ofthe date on which the notice was sent, request, in a form and manner prescribed by the commissioner in rules, a hearing before the commissioner to contest the determination of ineligibility for listing. The notice shall also advise the short term residential rental provider that the provider is entitled to present to the commissioner any document, including affidavits, related to the commissioner's determination. If requested, a hearing before the commissioner shall be held within 10 business days of receipt of such request. Within 60 days ofthe hearing the commissioner shall either affirm or reverse such determination based upon the evidence presented. The commissioner's decision shall be final and may be appealed in the manner provided by law. If a short term rental provider fails to request a hearing within the prescribed time, the short term residential rental shall be deemed to be ineligible to be listed on the platform.
(4) It shall be a violation of this subsection for any short term residential rental provider to make available for rental on any short term residential rental intermediary platform subject to this ordinance any short term residential rental that has been determined to be ineligible to be listed on such platform pursuant to this subsection.
(g) Rules. The commissioner is authorized to promulgate rules necessary to implement this section.


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(h) Penalty. In addition to any other penalty provided by law, any person who violates this section or any rule promulgated thereunder shall be subject to a fine of not less than $1,500.00 nor more than $3,000.00 for each offense or both. Each day that a violation continues shall constitute a separate and distinct offense.
4-6-410 Procedure for obtaining host data from short term residential rental intermediaries.
(a) The commissioner or the commissioner's designee shall have subpoena authority to obtain
information from a short term residential rental intermediary with respect to a short term
residential rental. Any such subpoena must:
be submitted in writing by the commissioner or the commissioner's designee attesting that the department has a reasonable belief based on evidence that the short term' residential rental may be in violation of Chapter 4-9;
be served on the short term residential rental intermediary on the person specified to receive notices pursuant to Section 4-6-400;
relate to a specific investigation by the department into a third-party complaint relating to a single short term residential rental that specifically identifies the rental and alleges a specific violation of Chapter 4-9;
specifically identify the address of the short term residential rental including any apartment or unit number, if known and applicable;
provide the link to the short term residential rental on the intermediary's website, if known and applicable; and
provide the name of the short term residential rental provider or other information which reasonably identifies the individual subject to the investigation, if known and applicable.
(b) The data subpoenaed by the commissioner or the commissioner's designee pursuant to a
subpoena pursuant to subsection (a) shall be limited to the following records for the 12-month
period ending December 31 of the previous year and for the then-current year:
the name, e-mail address, and telephone number provided by the provider offering the short term residential rental;
records sufficient to show the number of days that the transient occupancy occurred


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in the short term residential rental through transactions facilitated, enabled or otherwise arranged, directly or indirectly, through the intermediary's platform;
records sufficient to show all occupancy fees, other fees or other consideration paid by a guest for any transient occupancy of the short term residential rental that was facilitated, arranged or enabled through through the intermediary's platform; and
records sufficient to show any listing description, profile information, posting, advertisement, or display of the short term residential rental on the intermediary's platform.

(c) Upon receipt of a subpoena pursuant to subsection (a), a Hosting Platform shall:
Notify the user whose information is sought; and
Produce records responsive to the subpoena within 21 days of providing notice under Subsection (c)(1), except to the extent that it or the user whose information is sought has sought relief in a court of competent jurisdiction.
/
SECTION 9. Title 4 of the Municipal Code of Chicago is hereby amended by adding a new chapter 4-9, sections 4-9-010 through and including 4-9-090, as follows: .
Chapter 4-9 SHARED HOUSING UNITS.
4-9-010 Shared housing host.
For purposes of this chapter, the following definitions shall apply:
"Board of directors" has the meaning ascribed to the term in Section 4-6-300.

"Homeowners association" has the meaning ascribed to that term in Section 4-6-300.
"Guest" means a person who rents a shared housing unit for transient occupancy. The term "guest" does not include members of the owner's or tenant's household, as that term is defined in Section 17-17-0270.
"Local contact person" means a person authorized as an agent ofthe shared housing host who: (1) is designated for service of process; (2) is authorized by the short term residential rental host to take remedial action and to respond to any violation of this Code; and (3) maintains a residence or office located in the city.

"Permanent Occupancy" has the meaning ascribed to that term in Section 4-6-290.

11

"Rental Agreement" has the meaning ascribed to that term in Section 5-4-030.
"Shared housing unit" means a dwelling unit containing 6 or fewer sleeping rooms and that is, or any portion therein is, rented for transient occupancy by guests. The term "shared housing unit" shall not include: (1) single-room occupancy buildings; (2) hotels, as that term is defined in Section 4-6-180; (3) corporate housing; or (4) bed-and-breakfast establishments or vacation rentals licensed or required to be licensed by the city. For purposes of this definition, (i) "corporate housing" means a dwelling unit owned or leased by a business entity that is available for rent for transient occupancy solely by the business entity's officers, employees, family members of the officers or employees, consultants, vendors or contractors; and (ii) "family members" means an officer's or employee's (i) mother, father, spouse, brother or sister (including blood, step or half), son or daughter (including blood, step or half), father-in- law, mother-in-law, daughter-in-law, son-in-law, brother- in-law, sister-in-law, grandparents or grandchildren; (ii) court-appointed legal guardian or person for whom the employee or officer is a court- appointed legal guardian; or (iii) domestic partner or the domestic partner's mother, father, brother or sister (including blood, step, or half), or son or daughter (including blood, step or half).
"Shared housing host" means an owner or tenant of a shared housing unit who rents such unit to guests.
"Tenant" means a person who has a rental agreement for permanent occupancy ofthe dwelling unit.
"Transient Occupancy" has the meaning ascribed to that term in Section 4-6-290. 4-9-020 Shared housing unit registration-required.
Dwelling units or portions thereof offered for rent as shared housing units shall be registered with the department as set forth in this section and in a form and manner prescribed by the commissioner. The registration shall include and be limited to the name of the shared housing host and the address ofthe shared housing unit. An application for registration must be submitted within 60 days of the day that the unit is first booked. The registration fee shall be no more than $150.
The commissioner:

shall treat the registration information provided to the commissioner under chapter 4-9 as confidential,
shall only use the registration information obtained pursuant to this subsection to enforce this


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chapter, and
(3) shall not share the registration information described in this subsection with any person, including any other government entity or department, except pursuant to valid legal process.
The commissioner shall assign a unique registration number to each registered shared housing unit.
The host of any unit that has submitted a registration application shall be allowed to rent such shared housing unit, and to book future listings for such unit, until such time that the commissioner determines that such unit is ineligible under this Chapter.
A short term residential rental intermediary licensed under section 4-6-400 may submit a-registration application for any shared housing unit listed on the intermediary's platform on the host's behalf with the permission of the host and in a form and manner prescribed by the commissioner.
After the initial registration, the shared housing unit's registration shall be renewed every two years thereafter in a manner prescribed by the commissioner in rules. The registration for a shared housing unit transferred to a new shared housing host shall be reviewed in a manner prescribed by the commissioner in rules.
When in the determination of the commissioner, a shared housing unit fails to meet eligibility requirements for registration or renewal of registration, the commissioner shall notify the shared housing host, in writing, of such fact and ofthe basis for such indication of ineligibility. Such notice shall include a statement informing the shared housing host that the shared housing host may, within 10 days ofthe date on which the notice was sent, request, in a form and manner prescribed by the commissioner in rules, a hearing before the commissioner to review the determination of ineligibility for registration under Chapter 4-9 of this Code. The notice shall also advise that such shared housing host is entitled to present to the commissioner any document, including affidavits, related to the shared housing unit's eligibility. If requested, a hearing before the commissioner shall be held within 10 business days of receipt of such request. Within 60 days ofthe hearing the commissioner shall make a determination ofthe shared housing unit's eligibility based upon the evidence presented. The commissioner's decision shall be final and may be appealed in the manner provided by law. If a shared housing host fails to request a hearing within the prescribed time, the shared housing unit shall be deemed ineligible for registration.

4-9-030 Registration - Eligibility.



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Any shared housing unit that is listed on, or is located in a building that is listed on, the city's Building Code Scofflaw List or Problem Landlord List pursuant to Section 2-92-416 shall not be eligible to be registered with the department.

4-9-050 Operating requirements.
Each shared housing host shall:

provide guests with soap, clean individual bath cloths and towels, and clean linen. All linens, bath cloths and towels shall be kept in good repair and changed between guests;
clean and sanitize the shared housing unit and all dishes, utensils, pots, pans and other cooking utensils between guests, and dispose of all food, beverages and alcohol left by the previous guests;
immediately notify the police department if a shared housing host knows or suspects that any criminal activity or public nuisance is taking place in the shared housing unit;
ensure that the shared housing unit's registration number (or an indication that a registration application has been filed and that a registration number is pending) is conspicuously displayed in every advertisement of any type in connection with the rental of the shared housing unit;
ensure that the shared housing unit is in compliance with applicable laws regarding the installation and maintenance of functioning smoke and carbon monoxide detectors; and
post in a conspicuous place near the entrance ofthe shared housing unit: (i) the name and telephone number of the local contact person; and (ii) an evacuation diagram identifying all means of egress from the shared housing unit and the building in which it is located.
All bookings for the rental of a shared housing unit by a guest shall be made using a platform provided by a short term residential rental intermediary licensed under section 4-6-400.
4-9-060 Unlawful acts.
It shall be unlawful for any shared housing host to:
permit any criminal activity or public nuisance to take place within the shared housing unit;
exceed the maximum occupancy limit of no more than one person per 125 feet of floor area of the shared housing unit. The occupancy limitation set forth in this subsection is the absolute maximum limitation. The actual allowed capacity shall be based on the applicable provisions of


14

the building code;
misrepresent any material fact regarding the shared housing on any listing;
serve or otherwise provide alcohol to any guest, or invitees of a guest, under the age of 21 years; or
(1) rent any shared housing unit by the hour or for any period of fewer than ten consecutive hours; or

rent any shared housing unit more than once within any consecutive ten hour period measured from the commencement of one rental to the commencement ofthe next; or
advertise an hourly rate or any other rate for any shared housing unit based on a rental period of fewer than ten consecutive hours; or
allow multiple bookings or rentals of any shared housing unit for the same or overlapping time periods.
4-9-070 Rules.
The commissioner is authorized to promulgate rules necessary to implement this chapter. , 4-9-080 Registration- suspension or revocation.
In addition to any other fine or penalty provided, a registration under this chapter may be suspended or revoked by the commissioner for a violation of this chapter. No registration shall be revoked or suspended except in accordance with subsection (c); provided, however, that if the commissioner has good cause to believe that continued rental of a shared housing unit causes an imminent threat to public health, safety or welfare, the commissioner may, upon issuance of a written order stating the reason for such conclusion and without notice or hearing, suspend or revoke the shared housing unit's registration and prohibit the shared housing host from renting the shared housing unit to guests for a period of time not to exceed ten calendar days; provided, however, that the shared housing host shall be afforded an opportunity to be heard during such period. If the shared housing host fails to request a hearing with the prescribed time, the shared housing unit's registration shall be deemed revoked.
In addition to any other applicable reason, a shared housing unit registration may be revoked or suspended in accordance with this section when:

(1) in the determination of the commissioner, the rental of the shared housing unit creates a


15

nuisance because, within any consecutive 12-month period, at least three separate incidents involving illegal acts, as that term is defined in Section 4-4-313(h), occurred: (i) in the shared housing unit; (ii) in or on the premises in which the shared housing unit is located; (iii) in the shared housing unit's parking facility, or (iv) on adjacent property. For purposes of determining whether three or more illegal acts occurred during a 12-month period, illegal acts occurring shall be limited to acts of the guests, or of invitees of the guests, or to acts otherwise involving circumstances having a nexus to the operation of the shared housing unit while rented to a guest;
a shared housing unit is listed on, or located in a building that is listed on, the city's Building Code Scofflaw List or Problem Landlord List pursuant to Section 2-92-416; or
the commissioner determines that the continued rental of a shared housing unit poses a threat to the public health, safety or welfare.
(c) Upon determining that a shared housing unit's registration is subject to suspension or revocation under this section, the commissioner shall notify the shared housing host, in writing, of such fact and of the basis for the suspension or revocation of the registration. Such notice shall include a statement informing the shared housing host that the shared housing host may, within 10 days of the date on which the notice was sent, request, in a form and manner prescribed by the commissioner in rules, a hearing before the commissioner to contest the suspension or revocation. The notice shall also advise the shared housing host that the shared housing host is entitled to present to the commissioner any document, including affidavits, related to the commissioner's determination for suspension or revocation. If requested, a hearing before the commissioner shall be held within 10 business days of receipt of such request. Within 60 days of the hearing the commissioner shall either affirm or reverse such determination based upon the evidence presented. The commissioner's decision shall be final and may be appealed in the manner provided by law. If a shared housing host fails to request a hearing within the prescribed time, the shared housing unit registration shall be deemed suspended or revoked.

4-9-090 Violations-Penalties.
In addition to any other penalty provided by law, any person who violates any provision of this chapter or any rule promulgated thereunder shall be subject to a fine of not less than $1,500.00 nor more than $3,000.00 for each offense. Each day that a violation continues shall constitute a separate and distinct offense.
SECTION 10. Section 17-2-0207 of the Municipal Code of Chicago is hereby amended by inserting the language underscored, as follows:




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17-2-0207 Use Table and Standards.

USE GROUP Zoning Districts Use Standard Parking Standard
Use Category RS RS RS RT RT RM RM RM
Specific Use Type|9999|3.5|99|4.5 5-5.5 6-6.5
P= permitted by-right S = special use approval req=d PD = planned development approval req=d - = Not allowed
(Omitted text is unaffected by this ordinance)
P. Lodging
1. Bed and Breakfast - - - - P P P P 1 17-9-0103 ' 17-10-0207-S
2. Vacation Rental P P P P P S-_P s-2 S-_P
3. Shared Housing Unit P P P P P P P P
(Omitted text is unaffected by this ordinance)


SECTION 11. Section 17-3-0207 ofthe Municipal Code of Chicago is hereby amended by adding the language underscored, as follows:

17-3-0207 Use Table and Standards.

USE CROUP Zoning Districts Use Standard Parking Standard
Use Category Bl B2 B3 CI C2 C3
Specific Use Type
P= permitted by-right S = special use approval required PD = planned development approval required - = Not allowed
(Omitted text is unaffected by this ordinance)
II. Lodging
1. Bed and Breakfast P P P p P - ' 17-9-0103 ' 17-10-0207-S
2. Hotel/Motel - - S S S s ' 17-10-0207-S
3. Vacation Rental P P P p p -
4, Shared Housinp Unit P P P p p -
(Omitted text is unaffected by this ordinance)


SECTION 12. Section 17-4-0207 ofthe Municipal Code of Chicago is hereby amended by inserting the language underscored, as follows:


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17-4-0207 Use Table and Standards.

USE GROUP Zoning Districts Use Standard Parking Standard
Use Category DC DX DR DS
Specific Use Type
P= permitted by-right S = special use approval required PD = planned development approval required - = Not allowed
(Omitted text is unaffected by this ordinance)
II. Lodging
1. Bed and Breakfast P P P P ' 17-9-0103 ' 17-10-0208
2. Hotel/Motel P P - P 1 17-10-0208
3. Vacation Rental 5-P S-_P S-P.
4. Shared Housing Unit P P P :
(Omitted text is unaffected by this ordinance)

SECTION 13. Section 17-17-0104-S ofthe Municipal Code of Chicago is hereby amended by inserting the language underscored, as follows:
17-17-0104-S Lodging. Provision of lodging services on a temporary basis with incidental food, drink, and other sales and services intended for the convenience of guests. The following are lodging use types:

(Omitted text is unaffected by this ordinance)
4. "Shared housing unit" means a dwelling unit located within the city that contains 6 or fewer sleeping rooms and is, or any portion therein is, rented for transient occupancy by guests. The term "shared housing unit" shall not include: (1) single-room occupancy buildings: (2) hotels, as that term is defined in Section 4-6-180; (3) corporate housing: or (4) bed-and-breakfast establishments or vacation rentals licensed or required to be licensed by the city. For purposes of this definition:
(i) "Corporate housing" means a dwelling unit owned or leased by a business entity that is
available for rent for transient occupancy solely by the business entity's officers, employees,
family members of the officers or employees, consultants, vendors or contractors;
(ii) "Family members" means an officer's or employee's (i) mother, father, spouse, brother or
sister (including blood, step or half), son or daughter (including blood, step or half), father-in-
law, mother-in-law, daughter-in-law, son-in-law, brother-in-law, sister-in-law, grandparents or
grandchildren; (ii) court-appointed legal guardian or a person for whom the employee or officer
is a court- appointed legal guardian; or (iii) domestic partner or the domestic partner's mother,


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father, brother or sister (including blood, step, or half), or son or daughter (including blood, step or half);
(iii) "Guest," "shared housing host." and "transient occupancy" have the meaning ascribed to those words in section 4-9-010.
SECTION 14. Upon its passage and approval, this ordinance shall take full force and effect on January 1, 2017.





























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