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Record #: SO2020-3986   
Type: Ordinance Status: Passed
Intro date: 7/22/2020 Current Controlling Legislative Body: Committee on License and Consumer Protection
Final action: 9/9/2020
Title: Amendment of Municipal Code Chapters 4-5, 4-6, 4-13, 4-14, 4-16 and 4-17 by modifying licensing fees and operating regulations for shared housing
Sponsors: Lightfoot, Lori E. , Hopkins, Brian , Smith, Michele
Topic: 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. 13 Short Term Residential Intermediaries and Advertising Platforms, MUNICIPAL CODE AMENDMENTS - Title 4 - Businesses, Occupations & Consumer Protection - Ch. 14 Shared Housing Units, MUNICIPAL CODE AMENDMENTS - Title 4 - Businesses, Occupations & Consumer Protection - Ch. 16 Shared Housing Unit Operator
Attachments: 1. SO2020-3986.pdf, 2. O2020-3986.pdf, 3. O2020-3986 (V1).pdf
S IJ B S T I T U T E () R I) I N A N C E


BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF C HICAGO:


SECTION 1. Section 4-5-010 ofthe 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 hy this ordinance)
(36) Short Term Residential Rental Intermediary (4-13)
if the intermediary has 1.000 or more short term residential rentals listed On its platform: $10,000.00 license fee, plus a $60.00 per unit fee for each short term residential rental listed on its platform;

ifthe intermediary has 500 to 999 short term residential rentals listed on its platform: $7.500.00 license fee, plus a $60.00 per unit fee for each short term residential rental listed on its platform; and

ifthe intermediary has 1 to 499 short term residential rentals listed on its platform: $5.000.00 license fee, plus a $60.00 per unit fee for each short term residential rental listed on its platform

(37) Short Term Residential Rental Advertising Platform (4-13)

$10,000.00. ifthe intermediary advertising platform has 1.000 or more short term residential rentals listed on its platforms $10.000.00 license fee;

or $5,000,000. ifthe intermediary advertising platform has 500 to 999 or fewer short term residential rentals listed on its platform: $7.500.00 license fee: and

ifthe advertising platform has 1 to 499 short term residential rentals listed on its platform: $5.000.00 license fee.

(Omitted text is unaffected hy this ordinance)

(42) Shared Housing Unit Registration (Chapter 4-14) . . $125.00





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SECTION 2. Section 4-6-180 ofthe Municipal Code of Chicago is hereby amended by inserting the language underscored, as follows:

4-6-180 Hotel.
Definitions. As used in this section:
(Omitted text is unaffected by this ordinance) "Licensee" has the meaning ascribed to that term in Section 4-4-005.
(Omitted text is unaffected by this ordinance) "Platform" has the meaning ascribed to that term in Section 4-13-100. "Restroom" means any room equipped with toilets.
(Omitted text is unaffected by this ordinance)
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 hotel shall be accompanied by the following information:

(Omitted text is unaffected by this ordinance)

It is a condition ofthe license that all information in the application be kept current. Any change in required information shall be reported to the department in accordance with Section 4-4-050(b).
License issuance and renewal - Prohibited when. No regulated business license to engage in the business of hotel shall be issued to the following persons:

(Omitted text is unaffected by this ordinance)

(e) Legal duties. Each license licensee engaged in the business of hotel shall have a
duty to:
(Omitted text is unaffected by this ordinance) {4} ifthe hotel is listed on any platform:



|1010|
£i} not to list, or permit any person to list, the hotel or any guest room on such platform unless the listing includes the hotel's license number;

(ii) not to rent, or permit any person to rent, and not to book For future rental, or allow any person to book for future rental, the hotel or any guest room unless the hotel is properly licensed by the department;

(5) comply with all applicable federal, state and local laws and regulations regarding the collection and payment of taxes, including but not limited to the Chicago Hotel Accommodation Tax Ordinance, Chapter 3-24 ofthis Code (where applicable).

(Omitted text is unaffected by this ordinance)

(h) Rules. The commissioner shall have the authority to promulgate rules necessary or appropriate to implement this section.



SECTION 3. Section 4-6-290 ofthe Municipal Code of Chicago is hereby amended by deleting the language stricken through and by inserting the language underscored, as follows:

4-6-290 Bed-and-breakfast establishment.
(a) Definitions. As used in this section:
(Omitted text is unaffected by this ordinance) "Licensee"' has the meaning ascribed to that term in Section 4-4-005.

(Omitted text is unaffected by this ordinance)

"Platform" has the meaning ascribed to that term in Section 4-13-100.

"Short term residential rental intermediary" or "intermediary" has the meaning ascribed to that term in Section 4 13 100.

"Short term residential rental advertising platform" or "advertising platform" has the meaning ascribed to that term in Section 4-13-100.

(Omitted text is unaffected by this ordinance)




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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 bed-and-breakfast establishment shall be accompanied by the following information:

(Omitted text is unaffected by this ordinance)

(7) a valid certificate of registration in food handling and sanitation issued by the department of health, as required under subsection (f)(6) ofthis section.

It is a condition ofthe license that all information in the application be kept current. Any change in required information shall be reported to the department in accordance with Section 4-4-050(b).
Departmental duties.

(4-) Either the department of buildings or fire department, pursuant to a coordinated inspection schedule, shall inspect each bed-and-breakfast establishment before any initial license is issued for such establishment. Thereafter, either the department of buildings or fire department, pursuant to a coordinated inspection schedule, shall inspect the establishment once every two years to determine whether the establishment complies with all applicable requirements ofthis Code. If, within the 12-month period prior to the date ofany inspection y required under this section, the bed-and breakfast bed-and-breakfast establishment was inspected either by the department of buildings or tire department in connection with a permit inspection, periodic inspection, code compliance inspection or certificate of occupancy, such inspection shall be deemed to meet the applicable inspection requirement set forth herein. The department of buildings and fire department are authorized to conduct such additional inspections as they deenir necessary to maintain health and safety.
License issuance and renewal - Prohibited when. No regulated business license to engage in the business of bed-and-breakfast establishment shall be issued to the following persons:

(1) any applicant or licensee, as applicable, unless the establishment identified in the license application is: (A) an owner-occupied, single-family residential building; or (B) an owner-occupied multiple- family multiple-family dwelling that does not exceed four stories in height and contains no more than 11 sleeping rooms; or (C) an owner-occupied condominium, townhouse or cooperative. Throughout the duration ofany rental period, occupancy ofthe establishment by any person owning 25 percent or more ofthe interest in the establishment shall be a continuing requirement for maintaining a license under this chapter; provided, however, that it shall not be a violation ofthis requirement ifthe owner; (i) is absent from the establishment


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overnight or for any longer period of time not to exceed 120 days within a 12-month period; or (ii) is on active military duty for any length of time; and (iii) appoints a designated agent or employee to manage, control and reside in the establishment during the owner's absence;

(Omitted text is unaffected by this ordinance)

(f) Legal duties. Each licensee engaged in the business of bed-and-breakfast establishment shall have a duty to:

(Omitted text is unaffected by this ordinance)
conspicuously display the bed-and- breakfast bed-and-breakfast establishment's license number in every advertisement ofany type in connection with the rental ofthe bed-and-breakfast establishment or any sleeping room within such establishment. Failure to comply with this requirement'shall create a rebuttable presumption that the bed-and-breakfast establishment is being operated without the proper license;
If the bed-and-breakfast establishment is listed on any short term residential rental intermediary platform or short term residential rental advertising platform, a licensee under this section shall have the following duties:

not to list, or permit any person to list, on such platform any bed-and-breakfast establishment unless the listing includes the bed-and - breakfast bed-and-breakfast establishment's license number;
not to rent, or permit any person to rent, and not to book for future rental, or permit any person to book for future rental, any bed-and-breakfast establishment that is not properly licensed by the eity department;
following notice of a final determination of ineligibility under Section 4-13-260(b) or Section 4-13-330(b), not to rent or allow any family member to rent,-and not to book for future rental or pennit any family member to book for future rental, any portion ofany bed-and-breakfast establishment identified in such notice that the commissioner has determined is ineligible for listing on any platform. Any In addition to anv other penalty provided by law, any person who violates this subsection (l)(8)(iii) shall be fined not less than $500.00 nor more than

S^QOrQO-nor more than S3,CKIK^QQ-fef-fefthng^ bed-and-breakfast establishment or any portion thereof on or after the 15th calendar day and-before the 28tlv-ea4endar day ofthe date en-which such notice is sent^and $5,000.00 for each offense


red-break fast eslab 1 i shment-er-



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violation continues after such 28th calendar day shall constitute a separate and distinct offense;

(iv) following notice ofa final determination of ineligibility under Section 4-13-26()(b) or Section 4-13-330(b). remove the ineligible listing from the any platform where it is listed in accordance with rules prescribed by the commissioner. Notwithstanding the penalty provided for in subsection (i) ofthis section, and in in addition to any other penalty provided by law. any person who fails to comply with this subsection (f)(8)(iv) shall be lined net less than ""' rr,n

which such-notice is scntrand-not less than $2,500.00 nor more than $5,000.00 for each offense failure to comply on the 15th calendar day ofthe date-en-which such notice is sent or on any calendar day thereafter. Each day that a violation continues after such 15th calendar day shall constitute a separate and distinct offenses and

(9) comply with all applicable federal, state and local laws and regulations regarding the collection and payment of taxes, including but not limited to the Chicago Hotel Accommodation Tax Ordinance. Chapter 3-24 of this Code (where applicable).

(g) Prohibited acts. It shall be unlawful for any person engaged in the business of bed-and-breakfast establishment to:

(Omitted text is unaffected by this ordinance)

(2 ) allow occupancy of the establishment or any part thereof to exceed one person per 125 square feet of floor area, excluding elevators, stairways or other shaft enclosures;

(Omitted text is unaffected by this ordinance)

(i) Penalty. Except as otherwise provided in this section, and in addition to any other penalty provided by law, three or more violations ofany provision ofthis section or any rule or regulation promulgated thereunder on three different days within any 12-month period may result in license suspension or revocation in accordance with Section 4-4-280. Each day that a violation continues shall constitute a separate and distinct offense.

(j) Regulations Rules. The commissioner shall have the authority to promulgate rules and regulations necessary or appropriate to implement the requirements ofthis section. The board of health and the department of health shall have the authority to issue rules and regulations necessaiy or appropriate to implement subsection (f)(6) ofthis section and the minimal standards found in subsections (f)(3) and (f)(4) ofthis section.






|1010|SECTION 4. Section 4-6-300 ofthe 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.
(a) Definitions. As used in this section:
(Omitted text is unaffected by this ordinance)
"Egregious condition"' has the meaning ascribed to that term in Section 4-14-010.
"Excessive loud noise" means: (1) any sound generated between the hours of 8:00 p.m. and 8:00 a.m. from within the vacation rental or on any private open space having a nexus to the vacation rental that is louder than average conversational level at a distance of 100 feet or more, measured vertically or horizontally from the property line ofthe vacation rental or private open space, as applicable: or (2) any sound generated on the public way immediately adjacent to the vacation rental, measured vertically or horizontally from its source, by anv person having a nexus to the vacation rental in violation of Section 8-32-070(a): or (3) any sound generated between the hours of 8:00 p.m. and 8:00 a.m. that causes a vibration, whether recurrent, intermittent or constant, that is felt or experienced on or in any neighboring property, other than a vibration: (i) caused by a warning device necessary for the protection ofthe public health, safety or welfare: or (ii ) caused in connection with the performance of emergency work within the vacation rental by the licensee or such licensee's agent; or (iii ) subject to an exception or exclusion under Section 8-32-170.

(Omitted text is unaffected by this ordinance)
"Illegal activity" has the meaning ascribed to that term in Section 4-14-010.
"Licensee" has the meaning ascribed to that term in Section 4-4-005.
(Omitted text is unaffected by this ordinance)
"Objectionable conditions)" has the meaning ascribed to that term in Section 4-14-010.
"Overcrowding" means exceeding the maximum occupancy limitation in violation of subsection (g)(5) ofthis section.

(Omitted text is unaffected by this ordinance)

"Vacation rental" means a dwelling unit that contains 6 or fewer sleeping rooms that are directly or indirectly available for rent or for hire for transient occupancy by guests. The term "vacation rental" shall not include: (i) single-room occupancies as that term is defined in Section 17-17-02163: (ii) bed-and-breakfast establishments, as that term is defined in Chapter 14B-2; (iii) hotels, as that term is defined in Section 4-6-180; (iv) a dwelling unit for which a tenant has a month-to-month rental agreement and the rental'payments are paid on a

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monthly basis; (v) corporate housing: (vi) guest suites; or (vii) shared housing units registered pursuant to Chapter 4-14 ofthis Code. For purposes ofthis definition:
"tenant"" and "rental agreement"" have the same meaning ascribed to those terms in Section 5-12-030; and
"corporate housing" has the meaning ascribed to that term in Section 4-14-010.

Application - Additional information required. In addition to the requirements set forth in Section 4-4-050, an application for, and, if requested, a renewal of, a regulated business license authorizing the owner ofa dwelling unit to rent or lease such dwelling unit as a vacation rental shall be accompanied by the following information:

(Omitted text is unaffected by this ordinance)
a statement as to whether, within two years of the date of application or renewal, the applicant or licensee, as applicable, has ever had a license to engage in the business of vacation rental, bed-and- breakfast bed-and-breakfast establishment, hotel or shared housing unit operator, or a shared housing unit registration under Chapter 4-14 ofthis Code, suspended or revoked for cause;
(Omitted text is unaffected by this ordinance)

(14) a statement as to whether the applicant or licensee, as applicable, held a valid vacation rental license for the unit identified in the license application as of June 22, 2016, and if so, the applicable license number.

It is a condition ofthe license that all information in the application be kept current. Any change in required information shall be reported to the department in accordance with Section 4-4-050(b).
License issuance and renewal - Prohibited when. No regulated business license to engage in the business of vacation rental shall be issued to the following persons:

(Omitted text is unaffected by this ordinance)
any applicant or licensee, as applicable, whose vacation rental is located in a restricted residential zone, and-fi-i) unless such vacation rental was not a legatty lawfully established use within the meaning of Section 4-17-070 as ofthe effective date ofthe ordinance establishing such restricted residential zone.

(Omitted text is unaffected by this ordinance)

(f) Legal duties.



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Insurance ¦-¦ Required. Each licensee engaged in the business of vacation rental shall have a duty to obtain: (i) homeowner's fire, hazard and liability insurance; and (ii) commercial general liability insurance, with limits of not less than one million dollars {$1,000,000.00} per occurrence, combined single limit, for bodily injury, personal injury and property damage arising in any way from the issuance ofthe license or activities conducted pursuant to the license. Each policy of insurance shall: (A) be issued by an insurer authorized to insure in the State of lllinois; (B) name the City of Chicago as additional insured on a primary, noncontributory basis for any liability arising directly or indirectly from the issuance ofthe license; and (C) be maintained in full force and effect for the duration ofthe license period.
Registration records - Required. Each licensee engaged in the business of vacation rental shall have a duty to maintain current guest registration records which that contain the following infonnation about each guest: (i) name, (ii) address, (iii) signature, and (iv) dates of accommodation.
Maintenance of records - Required. Each licensee engaged in the business of vacation rental shall have a duty to keep the guest registration records required under subsection (f)(2) of this section on file for three years. Except in cases where a licensee consents to disclosure ofthe applicable guest registration records or some other exception to a warrant applies, including exigent circumstances, guest registration records shall be subject to disclosure to an authorized city official pursuant only to a proper search warrant, administrative subpoena, judicial subpoena, or other lawful procedure to compel the production of records that affords the licensee an opportunity for precompliance review by a neutral decisionmaker.
License number in advertisements - Required. Each licensee engaged in the business of vacation rental shall have a duty to print or t© cause the licensee's license number to be printed, in legible type7; (i) in every advertisement of any type for any vacation rental that the licensee or the licensee's agent places or causes to be placed in connection with a vacation rental; (ii) on every application for a building permit made by or on behalf of the licensee; and (iii) if the licensee advertises the vacation rental on a primary website established, operated or maintained by such licensee, on such website. Failure to comply with the requirements ofthis subsection (f)(4) shall create a rebuttable presumption that the business of vacation rental is .being operated without a license.

( 5) Soaps and clean linens - Required. Each licensee engaged in the business of vacation rental shall have a duty to 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.

(6) Sanitized utensils - Food disposal - Required Each licensee engaged in the business of vacation-rental shall have a duty to clean and sanitize the vacation rental and all

|10 10|
dishes, utensils, pots, pans and other cooking utensils between guests and to dispose of all food, beverages and alcohol left by the previous guests.
Posting - License number - Local contact person - Required. Each licensee engaged in the business of vacation rental shall have a duty to post in a conspicuous place near the entrance ofthe vacation rental, the vacation rental license and the name and telephone number ofthe local contact person.
Posting - Evacuation diagram - Required. Each licensee engaged in the business of vacation rental shall have a duty to post in a conspicuous place on the inside entrance door of each vacation rental an evacuation diagram identi fying all means of egress from the vacation rental and the building in which the vacation rental is located.
Food handling safety - Required. If the licensee provides food to guests, such licensee shall have a duty to comply with all applicable food handling and licensing requirements ofthis Code and board of health regulations.
Notification to police of illegal activity - Required. If a licensee knows or suspects that any criminal activity, egregious condition or public nuisance is taking place in the vacation rental, such licensee shall have a duty to immediately notify and cooperate with the Chicago police department.
Smoke alarms and carbon monoxide detectors - Required. Each licensee engaged in the business of vacation rental shall have a duty to ensure that the vacation rental is in compliance with applicable laws regarding the installation and maintenance of functioning smoke alarms and carbon monoxide detectors.
Compliance with tax laws - Required. Each licensee shall have a duty to comply with all applicable federal, state and local laws and regulations regarding the collection and payment of taxes, including hotel accommodation taxes but not limited to the Chicago Hotel Accommodation Tax Ordinance, Chapter 3-24 ofthis Code (where applicable).
Disclosure and acknowledgement - Required.

(Omitted text is unaffected by this ordinance)

(2) The tenant or applicant shall be required to execute a receipt acknowledging that v these the written disclosures required under paragraph (l)(i) and (l)(ii) ofthis subsection (f)(T3) have been made.

(Omitted text is unaffected by this ordinance)


10

(4) The purchaser or prospective purchaser shall be required to execute a receipt acknowledging that these the written disclosures required under paragraph (0(0 and (l)(ii) of this subsection (Q( 13) have been made.

(g) Prohibited acts.
Rental under 10 hours the minimum rental period Prohibited. It shall be unlawful for any licensee engaged in the business of vacation rental to rent or te lease any vacation rental, or any portion thereof, by the hour or for any period of fewer less than ten two consecutive beers nights until such time that the commissioner and superintendent of police determine that such rentals can be conducted safely under conditions set forth in rules jointly and duly promulgated by the commissioner and superintendent. Provided, however, that under no circumstances shall a vacation rental, or any portion thereof, be rented by the hour or for any period of less than 10 consecutive hours;
Multiple rentals within 10 hour the minimum rental period - Prohibited. It shall be unlawful for any licensee engaged in the business of vacation rental to rent or lease any vacation rental, or any portion thereof, more than once within any consecutive ten 48-hour , period, as measured from the commencement of one rental to the commencement ofthe next rental until such time that the commissioner and superintendent of police determine that such
" rentals can be conducted safely under conditions set forth in rules jointly and duly promulgated by the commissioner and superintendent. Provided, however, that under no circumstances shall a vacation rental, or any portion thereof, be rented more than once within any consecutive 10-hour period;
Advertising hourly rate less than the minimum rental period - Prohibited. It shall be unlawful for any licensee engaged in the business of vacation rental to advertise an hourly rate or any other rate for a vacation rental based on a rental period of fewer less than ten consecutive hours the rental period authorized under subsections (g)(1) and (g)(2) ofthis section;
Gwtmnal Nuisances - Illegal activity, egregious condition, nuisance objectionable conditions, egregious conditions - Prohibited.

[Tj Illegal activity and objectionable conditions. It shall be unlawful for any licensee engaged in the business of vacation rental to permit any criminal activity, egregious condition or public nuisance within the meaning of Section 4-13-260(a)(Q to take place in within or having a nexus to the vacation rental, ln addition to any other penalty provided by law, any person who violates this subsection (g)(4)(j) shall be subject to a fine of not less than $2,500.00 nor more than $5,000.00 for each offense. Each day that a violation continues shall constitute a separate and distinct offense;



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(ii) Egregious condition. It shall be unlawful for any licensee engaged in tho business of vacation renal to permit any egregious condition to take place within or having a nexus to the vacation rental. In addition to anv other penalty provided by law, any person who violates this subsection (g)(4)(ii) shall be subject to a tine of not less than $5,000.00 nor more than $10,000.00 for each offense. Each day that a violation continues shall constitute a separate and distinct offense;

(5) Exceeding maximum occupancy - Prohibited. It shall be unlawful for any licensee engaged in the business of vacation rental to exceed the maximum occupancy limit of: (i) two persons, not including a guest's children under the age of 18, per guest room within the vacation rental; or (ii) no more than one person per 125 square feet of floor area of the dwelling unit for which the license is issued; or . The occupancy limitation sot forth in this subsoction (g)(5) is tho absolute maximum limitation. The (iii) the actual allowed capacity of the dwelling unit shall be based on the applicable provisions ofthe building code, whichever is less. As used in this subsection ( g)(5), the term "guest room*' means a room used or intended to be used for sleeping purposes. The term "guest room'" does not include bathrooms, toilet rooms, kitchens, closets, halls, incidental storage or utility spaces, or similar areas. In addition to any other penalty provided by law, any person who violates this subsection (g)(5) shall be subject to a fine of not less than $5,000.00 nor more than $10,000.00 for each offense. Each day that a violation continues shall constitute a separate and distinct offense;

(Omitted text is unaffected by this ordinance)

(h) Vacation rentals listed on a platform. If a vacation rental is listed on any short term residential rental intermediary platform or short term residential rental advertising platform within the meaning of Chapter 4-13 of this Code, a licensee under this section shall have the following duties:

(Omitted text is unaffected by this ordinance)

(2) Rental without license - Prohibited. Such licensee shall not rent, or permit any person to rent, or book for future rental, any vacation rental whieh that is not properly licensed by the eky department;

(Omitted text is unaffected by this ordinance)

(4) Rental of ineligible units by licensee-o^heeHset^s-ftHmly-menihers prohibited ¦¦¦¦ P-r-ohihited Removal from platform required. Following notice of If. following a final determination of ineligibility under Section 4-l3-260(b) or Section 4-13-330(b). such licensee |s notified in writing bv the commissioner that a vacatipn rental is ineligible to be listed on any platform, the licensee shall: (i) remove the ineligible listing from anv platform where it is listed:


12
and (ii) not rent, or allow any family member to rent, any the vacation rental identified in such notice mat-t^:H^eofflfflissionel4^as-dete^mincd is ineligible for listing-on-any--platforiii" Any ]n addition to anv other penalty provided by law, anv person who violates this fails to comply with this subsection (h)(4) shall be lined nol less than $500.00 n©r-more~lhan-$4-.-000.00 fbi-renting such vacation rental within H calendar days of the-datc en which such notice is scntf-and-not less than $1,500.00 nor iiuvre^haiv-S^TOOOTOQ-fer-renting such vacation rental on or-after-ealendar-day4md43efere4he 28th calendar day ofthe date on whielT-sueh-nottc $5,000.00 for each offense renting such vacation lental-eiver-after-thc 28th calendar day-ef-4he date on which such notice is sent. Each day that a violation continues atter-sech 28th calendar days shall constitute a separate and distinct offense;

(7) Violation of rental requirements and restrictions - Prohibited. Such licensee shall not list on any platform or rent any vacation rental that is subject to a rental agreement, if the rental agreement prohibits the use of such dwelling unit as a vacation rental or shared housing unit, in any combination;

(Omitted text is unaffected by this ordinance)
13 330(b). such licensee

(444 Removal of ineligible listings from platform. Following-notice ofa final determinatioivef-meh^gibility under Section f\ 13 260 (b) or Sectior shall remove the ineligible listing from the platfemT-ie-Ae-mifflner-]

comply with-this subsection (h)(l 1) shall be lined not less than $1,500.00 nor more than

under Sectien-4-4-3-2e0(e^)-er-Seetien 4 13 330(b) is sent; and not less than $2,5QQ4)Q-nor more
than4^QQQ4)Q4br-fo calendar day ofthe date on which sueh-netiee4s
sent or on any calendar day thereafter. Each day that a violation centhmes-after such 15th
art, 1 an rl 'i r rl '~\\? c n *"i 11 pp*n d 11 i it & *t cpno p 'i n ri rl 1t-,1 i n pi pi i I pn cr* cn i tr t ttrct t Liu y St let 11 ct/ri^ll t tltc li DCrrcti clic ctrivi Ml"3LlllL/L

(Omitted text is unaffected by this ordinance)

(j) License - Suspension or revocation.

(1) Immediate suspension or revocation — Post-deprivation hearing - Authorized when. Ifthe commissioner has good cause to believe that: (1) continued rental ofa vacation rental causes an imminent threat to public health, safety or welfare, and (2) grounds exist for revocation or suspension ofthe licensee's vacation rental license, including^ but not limited to? any ofthe grounds set forth in items (i) through (v+)(v), inclusive, of subsection (j)(2) ofthis section, the commissioner may, upon issuance ofa written order stating the reason for such conclusion and without notice or hearing, suspend or revoke a vacation rental license under this section and prohibit the licensee from renting the vacation rental to guests for a period of time not lo exceed ten calendar days; provided, however, that the licensee shall be afforded an opportunity to be heard during such period. Ifthe licensee fails to request a hearing within the



13

prescribed time, or requests a hearing but Fails to appear at the hearing, the vacation rental license shall be deemed revoked.

(2) Suspension or revocation - P re-deprivation hearing - Authorized when. In addition to any other applicable reason, a vacation rental license may be suspended or revoked in accordance with Section 4-4-280 under the Following circumstances:

(i) Situs of one or more egregious conditions. When a vacation rental is the situs of one or more egregious conditions while rented to guests; or

(if) Situs of three or more objectionable conditions. When a vacation rental has been the situs, on three or more occasions, while rented to guests, of disturbance ofthe peace, public drunkenness, drinking in public, harassment of passersby, loitering, public urination, lewd conduct, overcrowding, exceeding design loads, or excessive loud noise. For purposes ofthis item (ii):

"Excessive loud noise" means any noise, generated from within or having a nexus to the rental ofthe shared housing unit, between 8:00 P.M. and 8:00 A.M., that is louder than average conversational level at a distance of 100 foot or more, measured from the property line ofthe


"Overcrowding" means occupancy by more persons than the maximum occupancy limit of no more than one person per 125 feet of floor area ofthe vacation rental or the vacation
hiehever-rs-lessr


"Exceeding design loads" means placing loads on structural elements or components of buildings, including, but-net limited to, porches, balconies, and roof decks, in excess ofthe minimum design loads required by the building code; or

(iii)(ii) Situs of three hvo or more nuisance conditions. When, in the determination ofthe commissioner, the rental ofthe vacation rental creates a nuisance because at least three two separate incidents involving illegal aets activity or objectionable conditions, as that tenn is €tt?rHitfLl in Section 4~4~13(lij^ occurred during a 12-month period: (1) in the vacation rental; or (2) in or on the premises in which the vacation rental is located; or (3) in the vacation rental's parking facility, or (4) on adjacent properly. For purposes of determining whether three-er-inere illegal aets any nuisance occuned during a 12-month period, such illegal aets activity or objectionable conditions occurring shall be limited to acts ofthe guests^ or ef invitees ofthe guests, or to acts otherwise involving circumstances having a nexus to the operation ofthe vacation rental while rented to a guest. In a proceeding to suspend or revoke the license ofa vacation rental that is or creates a nuisance under this Section 4-6-30 (j)(2)(iii) subsection
(j)(2)(ii), any evidence on which a reasonably prudent person would rely may be considered


14

without regard to the formal or technical rules of evidence, and the commissioner may rely on police reports, official written reports, affidavits and business records submitted by authorized city officials or employees charged with inspection or enforcement responsibilities to determine whether such illegal aets activity or objectionable conditions occurred. If, during any 12-month period., three two or more separate incidents of illegal aets activity or objectionable conditions, in anv combination, occur on the licensed premises, or on or in the licensed premises' parking facility, or on adjacent property, a rebuttable presumption shall exist that the vacation rental is or creates a nuisance in violation ofthis Section 4-6-300(j)(2)(iii) subsection (j)(2)(ii); or

fiv4(iii) Scofflaw or problem landlord. When a vacation rental is listed on, or is located in a building that is listed on, the city's City's Building Code Scofflaw List or Problem Landlord List pursuant to Section 2-92-416; or

(v4( iv) Threat to public health, safety or welfare. When the commissioner determines that the continued rental ofa vacation rental poses a threat to the public health, safety or welfare; or
(vi)[y) Unlawful discrimination. When, in connection with the listing for rental or rental ofa vacation rental, the commissioner or the Chicago commission on human relations has determined that a violation of Section 2-160-070 or Section 4-6-300 (h)(13), as applicable, has occurred.
(Omitted text is unaffected by this ordinance)

(n) Rules. The commissioner is authorized to promulgate rules necessary or appropriate to implement this section.



SECTION 5. Section 4-13-100 of the Municipal Code of Chicago is hereby amended by deleting the language stricken through and by inserting, in correct alphabetical order, the language underscored, as follows:

4-13-100 Definitions.
(Omitted text unaffected by this ordinance)

"Booking service transaction" means any reservation or payment service provided by a licensee under this chapter that facilitates a short term residential rental transaction between a shared housing host and such host's prospective or acttial guest or between a vacation rental licensee, bed-and-breakfast establishment licensee, or hotel licensee and such licensee's prospective or actual guest or transient occupant, and for which a licensee tinder this chapter charges, collects or receives, directly or indirectly through an agent, third-party intermediary, subsidiary or any affiliate thereof, a fee or other consideration in connection with the reservation or payment service provided for such transaction.


15

"Code" means the Municipal Code of Chicago.

"Commissioner'' means the Commissioner of Business Affairs and Consumer Protection or the Commissioner's designee.
(Omitted text is unaffected by this ordinance)
"Department" means the Department of Business Affairs and Consumer Protection.
(Omitted text is unaffected by this ordinance) "Licensee" has the meaning ascribed to that term in Section 4-4-005.
(Omitted text is unaffected by this ordinance) "Provider" means a short term residential rental provider.
(Omitted text is unaffected by this ordinance)

"Shared Housing Ordinance" means the ordinance passed by the Chicago City Council on June 22, 2016 and published in the Journal ofthe Proceedings ofthe Citv Council ofthe City of Chicago on pages 27712 - 27770 of that same date, as amended from time to time.

(Omitted text is unaffected by this ordinance)

"Short tenn residential rental" means a dwelling located within the e+ty City that is rented as, or held out as being used as, a shared housing unit, bed-and- breakfast bed-and-breakfast establishment or vacation rental.

(Omitted text is unaffected by this ordinance)

"Short term residential rental provider" or "provider" means any person who offers for rent a short term residential rental.

(Omitted text is unaffected by this ordinance)



SECTION 6. Section 4-13-200 ofthe Municipal Code of Chicago is hereby amended by inserting the language underscored, as follows:


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4-13-200 License - Required.

No person shall engage in the business of short term residential rental intermediary without first having obtained a an intermediary license under Article II of this Chapter 4-13. The holder of an intermediary license is entitled to primarily list shared housing units on its platform in accordance with this Article 11. Listings on the intermediary's platform of vacation rentals, bed-and-breakfast establishments and hotels are also permitted in accordance with this chapter.



SECTION 7. Section 4-13-205 ofthe Municipal Code of Chicago is hereby amended by deleting the language stricken through and by inserting the language underscored, as follows:

4-13-205 Annual Licensee License - Fee - Required.
fhe intermediary license required under this Article II shall be renewed annually.
The intermediary license fee set forth in Section 4-5-010 shall be payable annually.



SECTION 8. Section 4-13-210 ofthe Municipal Code of Chicago is hereby amended by-inserting the language underscored, as follows:

4-13-210 License application - Additional information required.

(a) In addition to the requirements set forth in Section 4-4-050, an application for, and, if requested, renewal of, a license to engage in the business of short term residential intermediary shall be accompanied by the following information:

(Omitted text is unaffected hy this ordinance)

(_b) It is a condition ofthe license that all information in the application be kept current. Any change in required information shall be reported to the department in accordance with Section 4-4-050(b).








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SECTION 9. Section 4-13-215 ofthe Municipal Code of Chicago is hereby amended by deleting the language stricken through and by inserting the language underscored, as follows:

4-13-215 Attestation - Acknowledgment - Required.

The intermediary shall be required to make available in a conspicuous place on its platform an electronic copy ofa summary of the requirements ofthis ordinance the Shared Housing Ordinance, including: (1) the provider's need to obtain from the department a valid registration or license number, as applicable, for the short term residential rental prior to advertising it for rent, listing it on the platform, renting it or booking it for future rental; (2) the requirement that the a shared housing host must be a natural person; (3) the eligibility requirements for registration with the department of a shared housing uni^ as set forth in Chapters 4-13 and 4-14 ofthe Municipal this Code of Chicago,; and (4} the potential penalties applicable for violation of the ordinance Shared Housing Ordinance. As a condition of listing a shared housing unit on the platfonn, the intermediary shall require the shared housing host to: (1) attest that the host has reviewed the summary of the requirements ofthis ordinance! and te (2} acknowledge that the listing, rental and operation of shared housing units in the City are subject to those requirements.



SECTION 10. Section 4-13-220 ofthe Municipal Code of Chicago is hereby amended by deleting the language stricken through and by inserting the language underscored, as follows:

4-13-220 Legal duties.
Insurance for intermediary - Required. Each licensee under this Article 11 shall have the duty le obtain commercial general liability insurance, with limits of not less than one million dollars ($1,000,000.00) per occurrence, for bodily injury, personal injury (if such coverage is commercially available to the licensee), and property damage arising in any way from the issuance ofthe short term residential rental intermediary license or activities conducted pursuant lo that license. Each policy of insurance shall: (i) be issued by an insurer authorized to insure in the State oflllinois; (ii) name the City of Chicago as an additional insured on a primary, noncontributory basis for any liability arising directly or indirectly from the issuance ofthe license (if commercially available to the licensee); (iii) be maintained in full force and effect for the duration ofthe license period; and (iv) include a provision requiring 30 calendar days' advance notice to the commissioner prior to cancellation or lapse ofthe policyf.
Insurance for guests - Required. Each licensee under this Article II shall ha-ve-the dety-to provide commercial general liability insurance.,with limits of not less than one million dollars ($ 1.000.000.00) per occurrence for bodily injury, personal injury (if such coverage is commercially available to the licensee), and property damage arising in any way from activities conducted pursuant lo a registration or issuance ofa license for a short term residential rental.


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Such insurance shall cover any bodily injury, personal injury (if such coverage is commercially available to the licensee), 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 (b). that apply separately for each short term residential rental, and ifthe policy has an aggregate limit, the aggregate limit shall apply separately to each short term residential rental. Each policy of insurance shall be: (i) issued by an insurer authorized to insure in the State oflllinois; and (ii) maintained in full force and effect for as long as the short term residential rental is registered or licensed, whichever is as applicable. The licensee shall provide advance notice to the commissioner ofthe cancellation of, or lapse in, the policy as soon as is reasonably practicable after the licensee becomes aware of the such cancellation eft or lapse in, the policy;^
Identification of local contact person - Required. Each licensee under this Article 11 shall have the duty to include on its platform the name of, and contact information for. the licensee's local contact person^.
Compliance with tax laws - Required. Each licensee under this Article II shall have the duty te comply with all applicable federal, state and local laws and regulations regarding the collection and payment of taxes, including hotel accommodation taxes but not limited to the Chicago Hotel Accommodation Tax Ordinance. Chapter 3-24 ofthis Code (where applicable).^
Compliance with rental homeowners association and cooperative building agreements - Required. Each licensee under this Article II shall have the duty not to list, or

advises post a notice on its platform informing the short term residential rental provider providers that the provider must comply with all existing applicable rental agreementST or homeowners association or cooperative building rules or restrictionsT regarding the rental fer transient occupartey ofthe short term residential rental for transient occupancy .i
Descriptive listing information - Required. Each licensee under this Article II

platforn-vewless the licensee advises the post a notice on its platform informing short term residential rental provider providers that every listing on the intermediary's platform shall musl include the information set-ferth-in required under Section 4-14-040(a)(l) through (a)(4), inclusive;.
Process to remove listings from a platform Required. Each licensee under this Article II shall ha-ve-the duty to establish a process, to be approved by the commissioner, that enables a short term residential rental provider to remove from the intermediary's platform any or all ofthe provider's listings on such platform.
Process lo address quality of life concerns due to units on ineligible list Required. Each licensee under this Article II shall establish and comply with a process, to be approved by the commissioner, for mitigating the impact on quality of life of units any short term residential rental determined by the department lo be ineligible for listing on a platform


19

under Section 4-13-260 or any hotel, bed-and-breakfast establishment or vacation rental that is not properly licensed under Chapter 4-6 ofthis Code.

(i) Compliance with written plan — Required. Each licensee under this Article 11 shall have the duty to comply with any written plan approved by the commissioner pursuant to Section 4-13-210(4).

(j) License number Posting license and registration numbers on listings -Notification to providers - Required when.
Each licensee under this Article II shall advise short term residential rental providers, by posting a notice in a conspicuous place on its platform or otherwise, that such providers are required under the Code to: (i) obtain a valid registration or license number, as applicable, for the short term residential rental prior to advertising it for rent, listing it on the platform, renting it, or booking it for future rental; and (ii) post the applicable registration or license number on the plat Form as part of the provider's listing.
Each licensee under this Article II shall establish a process, to be approved by the commissioner, to ensure that every providers have the ability to include the registration or license number, as applicable, ofany shared housing unit, hotel, bed-and-breakfast establishment or vacation rental listed by such provider on h^s the licensee's platform includes the provider's license number.

(k) Approved means of data transmission - Required. Each licensee under this Article 11 shall use an approved application program interface ("API") or other approved electronic means required bv the department to transmit data and other communications to the department and to receive data and other communications from the department.



SECTION 11. Section 4-13-230 ofthe Municipal Code of Chicago is hereby repealed in its entirety and replaced with a new Section 4-13-230, underscored as follows:

4-13-230 Shared housing units - Registration of unit by provider with department required - Advertising, listing, renting, and booking for future rental prohibited when.

(a) Shared housing hosts - Duties - Prohibited acts. Prior to advertising For rent, listing on a platform, renting, or booking for future rental any shared housing unit or portion thereof, the shared housing host shall successfully register such unit with the department in accordance with Section 4-14-020. as evidenced by the assignment ofa unique registration number to such unit by the department. It shall be unlawful for any shared host to advertise for



20

rent, list on a platform, rent, or book For future rental, any shared housing unit: (1) until such time that the department assigns a unique registration number to the shared housing unit; or (2) at anv time while departmental approval ofthe registration is pending; or (3) without including the registration number on any advertisement, listing, rental agreement, or booking. Any shared housing host who violates this subsection (a) shall be subject to the penalty set forth in Section 4-14-090(a).

(b) Departmental duties. Upon receipt ofa registration application for a shared housing unit, the department shall determine whether the unit identified in the registration application is eligible for such registration under Section 4-14-030(a). Ifthe department determines that the shared housing unit is eligible for registration, the department shall assign a unique registration number to the shared housing unit and shall notify the shared housing host of such fact. Ifthe department determines that the shared housing unit is ineligible for registration under Section 4-13-260, the notification and hearing process set forth in Section 4-13-260(b) shall apply.



SECTION 12. Chapter 4-13 ofthe Municipal Code of Chicago is hereby amended by inserting a new Section 4-13-235, as follows:

4-13-235 Intermediaries - Prohibition on booking service transactions - Applicable when.

It shall be unlawful for any licensee under this Article II to process or complete any booking service transaction for any: (1) shared housing unit or portion thereof, unless such unit has first been registered with the department within the meaning of Section 4-13-230(a), or (2) vacation rental, bed-and-breakfast establishment or hotel, or any portion thereof, unless such establishment is properly licensed under Chapter 4-6 ofthis Code.



SECTION 13. Section 4-13-240 ofthe Municipal Code of Chicago is hereby amended by deleting the language stricken through and by inserting the language underscored, as follows:

4-13-240 Data and reports - Required.

(a) Departmental report - Required. Each licensee under this Article II shall have a duty to submit to the department, every two months, a report, in a form approved by the commissioner, that contains the following information about each ofthe short term residential rentals listed on through the intermediary's platform during the applicable reporting period: (i) the te al total number of short term residential rentals listed on the platform during the applicable reporting period; (ii) the license or registration number of each short term residential rental listed


21

on the platform during the applicable reporting period; (iii) the address, including the unit number if applicable, of each short term residential rental listed on the platform during the applicable reporting period: fi-i4(iv) the total exact number of nights that each short term residential rental listed on the platform was rented to guests during the applicable reporting period; fi+i)( v) the amount of rent paid by guests in connection with the rental of each short term residential rental listed on the platform during the applicable reporting period; fiv)(vi) the total amount of tax paid by the intermediary to the city under Section 3-24-030 in connection with the rental of each short term residential rental listed on the platform during the applicable reporting period; and (v4(vii) a cumulative tally to date ofthe number of nights that each short term residential rental listed on the platform is booked for rental during the remaining months ofthe applicable calendar year; and (vi) a notation indicating each short term residential rental listed on the-platform that the department has determined is ineligible under Section '\ 13 260(a) to be listed on the platform.
Additional departmental reports - Required when. Upon request by the commissioner, each licensee under this Article II shall have a duty to submit to the department, in a form and manner prescribed by the commissioner, data identifying the total number of shared housing units that have been rented for more than 30 nights, or for any other period of nights during the current, previous, or subsequent calendar year, that the commissioner reasonably determines is necessary to assist the department in enforcing this Chapter 4-13 or Chapters 4-14 or 4-16 ofthis Code. Such submission shall include a notation indicating each

Section 1 13 260(a) for listing on a platform.
Aldermanic report - Required. Each licensee under this Article II shall have a duty to submit to each alderman and to the department, every two months, a report, in a form approved by the commissioner, that contains, on a ward specific basis for the respective ward, the information set forth in items (i) through fvi) (vii) of subsection (a) ofthis section about each ofthe short term residential rentals listed on the intermediary's platform during the applicable reporting period.
Maintaining hooks and records - Required. Each licensee under this Article II shall have a duty-to keep accurate books and records and maintain such books and records for a period of three years.
Additional reports and data. Each licensee under this Article II shall have a-det-y te provide additional reports and data to the Gfty- department as provided by the commissioner in rules.

(!) Form of dala and report submission, ihe information contained in the reports required under subsections (a), (b) and (c) ofthis section may be submitted in an anonymized form that removes personally identifiable information about the short term residential rental provider. Provided, however, that ifthe information required under subsections (a), (b) or (c) has been submitted in an anonymized form and the commissioner requires de-anonymized information about a short term residential rental provider or short term residential rental in connection with an audit conducted by the department to determine compliance with this



22

Chapter 4-13 or Chapters 4-14 or 4-16 of this Code, or the commissioner reasonably determines that a short term residential rental provider or short term residential rental is: (i) the scene ofa crime or other illegal act under investigation by any local, State or Federal law enforcement agency, or (ii) operating in violation of this Chapter or Chapters 4-14 or 4-16 of this Code or any-other applicable provision ofthis Code, including, but not limited to. the Chicago Zoning Ordinance, the commissioner may issue an order, in the form ofa subpoena, directing the intermediary to provide the information in a de-anonymized form, including, but nol limited to, the name of the short term residential rental provider, the address ofthe short term residential rental, the details ofthe unit's rentals, and any information within the control or possession ofthe intermediary regarding the guests ofthe shared housing unit or the rental ofthe unit, fhe intermediary shall, within 21 calendar days ofthe date on which such order is issued, either provide the de-anonymized information or file a legal objection to such order in writing with the commissioner. Ifthe intermediary or shared housing host files a legal objection, the commissioner shall provide a hearing on the objection within 10 business days, as provided by rule. The commissioner's determination shall be final and may be appealed in the manner provided by law. Nothing in this subsection shall be considered a limitation or restriction on the commissioner's powers and duties under Chapter 2-25.



SECTION 14. Section 4-13-250 ofthe Municipal Code of Chicago is hereby repealed in its entirety.



SECTION 15. Section 4-13-260 ofthe Municipal Code of Chicago is hereby amended by deleting the language stricken through and by inserting the language underscored, as follows:

4-13-260 Ineligibility - Listing on platform by a provider prohibited when.

(a) Conditions of ineligibility for listing. A short term residential rental shall be ineligible for Usting registration with the department as a shared housing unit or for licensure as a bed-and-breakfast establishment or vacation rental, and shall not be listed by a provider on a licensee's platform, under the following conditions:

(1) Nuisance. When, in the determination ofthe commissioner, the rental ofthe short term residential rental creates a nuisance because at least three two separate incidents involving illegal aets activity or objectionable conditions, as that term is those terms are defined in Section 4 4 13(h) 4-14-010. occurred, in any combination, during a 12-month period: (i) in the short term residential rental; or (ii) in or on the premises in which the short term residential rental is located: or (iii) in the short term residential rental's parking facility; or (iv) on adjacent property. For purposes of determining whether three or more any nuisance illegal acts occurred during a 12-month period, such illegal aets activity or objectionable conditions occurring shall be limited to acts ofthe guestsr or of invitees ofthe guests, or to acts otherwise involving circumstances having a nexus lo the operation ofthe short term residential rental while rented lo a guest; or



23

(Omitted text is unaffected by this ordinance)

(3) Scofflaw or problem landlord. When a short term residential rental is listed on. or located in a building that is listed on. the city's City's Building Code Scofflaw List or Problem Landlord List pursuant to Section 2-92-416; or

(Omitted text is unaffected by this ordinance)



SECTION 16. Section 4-13-270 ofthe Municipal Code of Chicago is hereby amended by deleting the language stricken through and by inserting the language underscored, as follows:

4-13-270 Departmental duties.
Duty to maintain list a database of short term residential rentals. The commissioner shall maintain a list database, by address, of all short term residential rentals currently licensed by or registered with the department under the applicable provisions ofthis Code.
Duty to maintain ineligibility list database. The commissioner shall prepare and maintain a fist database of all short term residential rentals that are ineligible to be advertised for rent by a provider, listed on a short tenn residential rental intermediary's platfonn by a provider, rented bv a provider, or booked for future rental by a provider. Such fist database, which shall be updated by the commissioner periodically, but in no event fewer than four times per calendar year without undue delay following a determination of ineligibility under Section 4-13-260, shall include the date on which the fist database was most recently updated and shall be made available by the commissioner to all licensed short term residential rental intermediaries-artd short term residential rental advertising platforms in a form and manner prescribed by the commissioner.

(Omitted text is unaffected by this ordinance)



SECTION 17. Section 4-13-300 ofthe Municipal Code of Chicago is hereby amended by inserting the language underscored, as follows:

4-13-300 License - Required.

No person shall engage in the business of short term residential rental advertising platform without fust having obtained a an advertising platform license under Article III ofthis Chapter 4-13. The holder of an advertising platform license is entitled to primarily list vacation


24

rentals, bed-and-breakfast establishments and hotels on its platform in accordance wilh this Article Ml. Listings on the advertising platform of shared housing units are also permitted in accordance with this chapter.



SECTION 18. Section 4-13-305 ofthe Municipal Code of Chicago is hereby amended by deleting the language stricken through and by inserting the language underscored, as follows:

4-13-305 Annual feteensee License - Fee - Required.
The advertising platform license required under this Article 111 shall be renewed annually.
The advertising platform license fee set forth in Section 4-5-010 shall be payable annually.



SECTION 19. Section 4-13-310 ofthe Municipal Code of Chicago is hereby amended by deleting the language stricken through and by inserting the language underscored, as follows:

4-13-310 License application - Additional information required.

(a) In addition to the requirements set forth in Section 4-4-050, an application for, and, if requested, renewal of, a license to engage in the business of short term residential advertising platform shall be accompanied by the following information:

(Omitted text is unaffected by this ordinance)

(2) an affidavit from the local contact person identified in the license application attesting that such local person: (i) is designated for service of process; (ii) is authorized by the applicant qf or licensee to take remedial action and to respond to any violation ofthis Code; and (iii) maintains a residence or office located in the city.

(Omitted text is unaffected by this ordinance)

jjt>) It is a condition ofthe license that all information in the application be kept current. Anv change in required information shall be reported to the department in accordance with Section 4-4-050(b).




25

SECTION 20. Section 4-13-320 ofthe Municipal Code of Chicago is hereby amended by deleting the language stricken through and by inserting the language underscored, as follows:

4-13-320 Legal duties.
Insurance for shorhte-rm residential rental advertising platform - Required. Each licensee under this Article III shall have a duty-to obtain commercial general liability insurance, with limits of not less than one million dollars ($1,000,000.00) per occurrence, for bodily injury, personal injury (if such coverage is commercially available to the licensee) and property damage arising in any way from the issuance ofthe short term residential rental advertising platform license or activities conducted pursuant to that license. Each policy of insurance shall: (i) be issued by an insurer authorized to insure in the State oflllinois; (ii) name the City of Chicago as an additional insured on a primary, nonconlributory basis for any liability arising directly or indirectly from the issuance ofthe license (if commercially available to the licensee); (iii) be maintained in full force and effect for the duration ofthe license period; and (iv) include a provision requiring 30 calendar days' advance notice to the commissioner prior to cancellation or lapse ofthe policy.
Identification of local contact person - Required. Each licensee under this Article 111 shall have a duty to include on its platform the name of, and contact information for, the licensee's local contact person.

Compliance wilh lax laws - Required. Each licensee under this Article III shall


1 n-rules. from its short term residential rental providers that each such provider has a duty to comply with all applicable federal, state and local laws and regulations regarding the collection and payment of taxes, including hotel accommodation taxes but not limited to the Chicago Hotel Accommodation Tax Ordinance. Chapter 3-24 ofthis Code (where applicable^ and (ii) to ensure that any-third party hired or otherwise retained by the licensee4e-aeeept-er ?nt ofany rent or its equivalent that a provider charges-a-guest in connection

residential-rental providers—in a form to be determined by the commissioner-in-reles. that each sueh-providcr has a duty-to comply with all sueh applicable laws and regulations.

(d) Conditions for listing on the platform—Vacation .rental license required Exceptions—Platform lo post license number on ail listings Posting license and registration numbers on listings - Notification to providers - Required.

(T ) Each licensee under this Article III shall have a duty not to list, or permit any person to list, any-short term residential-rental on its platform, unless-the licensee: (1) posts a advise noticerin a conspicuoes-plaee on its website, aclvismg short term residential rental



26
providers, by posting a notice in a conspicuous place on its platform or otherwise, that such providers are required under this Article 111 the Code to: (i) obtain a vacation rental license in order to list a rental unit on a short term residemkri-rental advertising platform, unless the sho

establishment; (2) includes the provider's vacation rental license number, hotel license number or bed-and-breakfast establishment license number, as applicable, on all listings that appear on the short term residential rental advertising platform valid license or registration number, as applicable, for the short term residential rental prior to advertising it for rent, listing it on the platfonn, renting it, or booking it for future rental; and (ii) post the applicable license or registration number on the platform as part ofthe provider's listing.

(2) Each licensee under this Article HI shall establish a process, to be approved by the commissioner, to ensure that providers have the ability to include the license or registration number, as applicable, ofany shared housing unit, hotel, bed-and-breakfast establishment or vacation rental listed by such provider on the licensee's platform.

(e) Approved means of data transmission - Required. Each licensee under this Article III shall use an approved application program interface ("API") or other approved electronic means required by the department to transmit data and other communications to the department and to receive data and other communications from the department.



SECTION 21. Chapter 4-13 ofthe Municipal Code of Chicago is hereby amended by inserting a new Section 4-13-325, as follows:

4-13-325 Advertising platforms - Prohibition on booking service transactions - When applicable.

It shall be unlawful for any licensee under this Article III to process or complete any booking service transaction for any: (1) vacation rental, bed-and-breakfast establishment or hotel, or any portion thereof, unless such establishment is properly licensed under Chapter 4-6 of this Code; or (2) shared housing unit or portion thereof, unless such unit has first been registered with the department within the meaning of Section 4-13-230(a).



SECTION 22. Section 4-13-340 ofthe Municipal Code of Chicago is hereby amended by inserting the language underscored, as follows:





27

4-13-340 Data and reports - Required.

Each licensee under this Article 111 shall submit to the department, no later than the tenth day of each month, a complete and accurate report, in a form approved by the commissioner, identifying the name ofthe owner or provider, and the address and business license or registration number, of each hotel, bed-and-breakfast establishment, shared housing unit and vacation rental that: (1) is currently listed on the licensee's advertising platform, and (2) constitutes a new listing since the time the licensee submitted its last report to the department pursuant to this section. Provided, however, that the licensee shall be deemed to be in compliance with this section ifthe licensee submits the required report to the department on a daily, weekly or semi-monthly basis.



SECTION 23. Section 4-13-400 of the Municipal Code of Chicago is hereby amended by inserting the language underscored, as follows:

4-13-400 Rules.

The commissioner is authorized to promulgate rules necessary or appropriate to implement this chapter.



SECTION 24. Section 4-14-010 ofthe Municipal Code of Chicago is hereby amended by deleting the language stricken through and by inserting, in correct alphabetical order, the language underscored, as follows:

4-14-010 Definitions.

(Omitled lexl is unaffected by this ordinance)

^43uikiiftg-eontaining two to four-dwelling units'" includes, but-i^noelimited-to, a duplex or row house-comprising two to I'ottr-eonneeted dwelling units.

"Building containing five or more dwelling units'" includes, but is not limited to, a row house com prising consisting of live or more connected individual dwelling units.

"Building containing two to four dwelling units'" includes, but is not limited to. a duplex or row house consisling of two to four connected individual dwelling units.

"Commissionet" means the conimissioner of business affairs and consumer protection or the commissioner's designee.



28

(Omitted text is unaffected by this ordinance)

"Department'" means the department ol'business affairs and consumer protection.

"Egregious condition" means: (1) drug trafficking; (2) prostitution; (3) gang-related activity; (4) violent acts involving the discharge ofa firearm, or the death of, or serious bodily injury to, any person; or- (5 ) exceeding the design load; (6) overcrowding; (7) the use of a shared housing unit by a guest for commercial purposes, including^ but not limited to, holding out the unit to members ofthe general public as the location of a party; amusement or event, or inviting persons to the unit under circumstances where the invitee is required, either directly or indirectly, to pay an admission fee, entrance fee or other compensation, consideration or revenue to gain entry to the unit; or (8) using or allowing the use of a shared housing unit for a party, amusement, event or other gathering in excess ofthe maximum occupancy limitation set forth in Section 4-14-050(b).

"Exceeding the design load" means placing loads, including natural persons, on structural elements or components of buildings, including but not limited to porches, balconies and roof decks, in excess of the design load allowed under the building code.

"Excessive loud noise" means: (1) any sound generated between the hours of 8:00 p.m. and 8:00 a.m. from within the shared housing unit or on any private open space having a nexus to the shared housing unit that is louder than average conversational level at a distance of 100 feet or more, measured vertically or horizontally from the property line of the shared housing unit or private open space, as applicable; or (2) any sound generated on the public way immediately adjacent to the shared housing unit, measured vertically or horizontally from its source, by any person having a nexus to the shared housing unit in violation of Section 8-32-070(a); or (3) any sound generated between the hours of 8:00 p.m. and 8:00 a.m. that causes a vibration, whether recurrent, intermittent or constant, that is felt or experienced on or in any neighboring property, other than a vibration: (i) caused by a warning device necessary for the protection ofthe public health, safety or welfare; or (ii) caused in connection with the performance of emergency work within the shared housing unit by the shared housing host or such host's agent; or (iii) subject to an exception or exclusion under Section 8-32-170.
(Omitted text is unaffected by this ordinance)
"Guest suite" has the meaning ascribed to the that term in Section 4-6-300(a).
(Omitted text is unaffected by this ordinance)

"Illegal activity" means any criminal conduct, of whatever degree, in violation of federal. State or local law.



29

(Omitted text is unaffected by this ordinance)

'•Objectionable condition(s)" means anv disturbance ofthe peace, public drunkenness, drinking in public, harassment of passersby, loitering, public urination, unlawful garbage or waste disposal, gambling, lewd conduct or excessive loud noise.

"Overcrowding'* means exceeding the maximum occupancy limitation in violation of Section 4- 14-050(b).

(Omitted text is unaffected by this ordinance)

'"Shared housing host" means an owner or tenant ofa shared housing unit, or a manager acting on behalf of an owner or tenant, who directly or indirectly rents such unit to. guests.

(Omitted text is unaffected by this ordinance)

"Single-family home" means a building that: (i) contains one dwelling unit only; and (ii) is located on its own lot; and (iii) is not attached to any other dwelling unit.

(Omitted text is unaffected by this ordinance)

"Vacation rental" has the meaning ascribed to the that term in Section 4-6-300.



SECTION 25. Section 4-14-020 ofthe Municipal Code of Chicago is hereby amended by deleting the language stricken through and by inserting the language underscored, as follows:

4-14-020 Shared housing unit registration - Registration fee - Required.

(a) Registration by intermediary with the department required. Except as otherwise provided in subsection (g) ofthis section, no No dwelling unit listed on a short term residential rental intermediary's platform shall be rented by a shared housing host shall advertise for rent, list on a platform, rent, or book for future rental any shared housing unit or portion thereof until such intermediary, acting on hehaif of the owner or tenant ofthe listeckhwUtng-unit, and shared housing host, in accordance with Section 4-13-230 (a)T: (1) registers such unit with the department, as evidenced by-the submission by submitting to the department ofa registration application meeting the requirements of subsections (IV) and (e) ofthis section: and (2) is issued a unique registration number by the department for the shared housing unit identified in the registration application; and (3) includes such registration number in any advertisement for rent, listing on a platform, rental agreement, or booking for future rental pertaining to such shared



30

housing unit; and (4) ifthe shared host advertises the shared housing unit on a primary website established, operated or maintained by such shared housing host or his agent, includes sueh registration number in any advertisement for such shared housing unit on such website. A separate registration shall be required for each dwelling unit used as a shared housing unit.
Registration application - Form and contents. The registration application required under subsection (a)(1) of this section shall be in a form and manner prescribed by the commissioner, and shall be accompanied by the following information:

the shared housing host's name, which shall be the name ofa natural person, and the shared housing host's residence address. The accuracy of the information required under this subsection (b)(1) shall be verified by documentation provided in a form approved by the commissioner;
the address ofthe dwelling unit being registered as a shared housing unit, including the unit number, unit letter or similar unit identification;
the contact information for the host or for a local contact person;
whether the dwelling unit identified in sueh the registration application is a: (i) a single family home, or (ii) a unit in a building containing multi-dwelling multiple dwelling units, and, if so, the number of dwelling units in the building, and (iii) whether the listing host wih intends to make the entire dwelling unit available for rent or only a room or portion ofthe dwelling unit available for rent;
whether the dwelling unit identified in sueh the registration application is the shared housing host's primary residence; and
the registration fee required under subsection (j) ofthis section; and

(e)(7) any other information that the commissioner may reasonably require in connection with the issuance or renewal ofa registration under this chapter.

It is a condition ofthe registration that all information in the application be kept current. Any change in required information shall be reported to the department within ten business days of such change.
(4-) A+teslat ion - Accurate Information - Required. It shall be unlawful for any shared housing host: (i) not to submit the attestation required under Section '1 13-215, or (if) to submit incomplete or false information or to make any false, misleading or fraudulent statement




31
en in the registration application required under subsection (b) ofthis section; or (ii) use anv scheme or subterfuge for the purpose of evading the requirements ofthis chapter.

(34 False statements. Any information on a registration application submitted

the-meaning ofthe False Statements Ordinance, Chapter 1 21 ofthis Code, regardless ofthe method by which such information is submitted or transmitted to the department.

(d) (1) Zoning review - Required. Each registration under this section shall include a zoning review, as provided by the commissioner in rules, to ensure that the location of the shared housing unit is in compliance with the Chicago Zoning Ordinance.

(2) Review of prohibited building list - Required. Each registration under this section shall include a review ofthe prohibited building buildings list maintained by the commissioner pursuant to under Section 4-13-270(c) to ensure that the shared housing unit is not located at an address identified on that list.

(3) Review of restricted residential zone list - Required. Each registration under this section shall include a review ofthe list of current restricted residential zone list required under zones maintained by the city clerk pursuant to Section 4-17-060 to ensure that the shared housing unit is not located in a restricted residential zone, unless sueh the shared housing unit located within a restricted residential zone is a legally lawfully established use within such zone within the meaning of Section 4-17-070^
Registration number - Required. The commissioner shall assign a unique registration number to each approved shared housing unit registered with the department.
Duty to post registration number. Upon notification from the commissioner that a unique registration number has-been assigned to the dwelling unit identified in the registration application, the shared housing host shall promptly post the registration number in a conspicuous place in all applicable listings on any platform. The shared housing host shall include, in legible type, the shared housing unit's unique registration number in any advertisement for rent, listing on a platform, rental agreement, or booking for future rental pertaining to such shared housing unit.

(g) twisting Advertising for rental, listing on a platform, renting, and hooking for future rental and rental ofa shared housing unit while registration is pending - P-enh




32

?grstrat+on by the department is pending, While such registration

housing unit that will be included in the registration report required under Section 4-13-230(c) to be listed on its platform, if the4isting is accompanied by the required-n©tatiorK-^Kl-(2) except-as


application shall be allowed to rent the shared housing unit identified in such application and
tgs-fer such unit, until such time that: (i) the-eemmissiener

the listing is invalid under Section 4 13-230(e). Provide, however, that during the period in which approval ofthe shared housing unit's registration is pending, no shared housing host shall at any time advertise for rent, list on a platform, rent, or book for future rental any shared housing unit that is located in a restricted residential zone. It shall be unlawful for any shared housing host to advertise for rent, list on a platform, rent or book for future rental any shared housing unit: (1) while registration of that unit with the department is pending, and (2) until such time that a unique registration number is assigned to such shared housing unit by the department.

(h) Annual review of registration — Required. After the initial registration of a shared
housing unit is approved by the department, the shared housing host may renew the shared
housing unit's registration may be renewed once annually each year thereafter in a manner
prescribed by the commissioner in rules, unless the commissioner determines that the unit is
ineligible for registration under Section 4-13-260(a).

(i) Transfer of registration - Prohibited. The registration for a shared housing unit
shall not be non transferable transferable to any other shared housing unit or shared housing
host.

(j) Registration fee - Required. The shared housing unit registration fee set forth in Section 4-5-010 shall be payable annually.



SECTION 26. Section 4-14-030 ofthe Municipal Code of Chicago is hereby amended by deleting the language stricken through, as follows:

4-14-030 Failure to meet eligibility requirements for registration - Legal effect - Processes.

(a) Eligibility for registration. A dwelling unit shall not be eligible for registration with the department as a shared housing unit, or for renewal of such registration, if: (1) any of the conditions of ineligibility applicable to a short term residential rental, as set forth in Section 4-13-260(a), exist: or (2) the shared housing host identified on the registration application required under Section 4-14-020 has anv outstanding debt to the City resulting from any unpaid



33

tine incurred in connection with any violation of Chapter 4-14 ofthis Code, unless and until such debt is satisfied or otherwise resolved within the meaning of Section 2-32-094(a).

(Omitted text is unaffected by this ordinance)

(c) Rental of ineligible units prohibited - -Duly to remove ineligible listings Removal from platform required. If following a final determination of ineligibility under Section 4-13-260(b)fa4 or Section 4-14-030(b)fa4, the shared housing host is notified in writing by the commissioner that a shared housing unit is ineligible to be listed on any s h o rl t e rm-r e s i d e n t i a I rental intermediary's platform, the shared housing host shall: (i) remove the ineligible listing from the any platform where it is listed: and (ii) not rent or allow any family member lo rent the shared housing unit identified in such notice in accordance with rules prescribed by the

$3,000.00 for such failure to comply within 8 to \ '\ calendar days ofthe date on which notice under this subsection is sent; and-not less than $2,500.00 nor more than $5,000.00 for each

day shall constitute a separate and distinct offense.

(d) Within thirty calendar days ofthe date on which notice is sent from an intermediary pursuant to Section 4 13 230(f) informing a shared housing host that a rcgistratiett number has been assigned by the commissioner to the shared housing unit listed by such host on the intermediary's platform, the shared housing host shall update the applicable listing on the intermediary's platform to include the registration number identified in such notice.



SECTION 27. Section 4-14-040 ofthe Municipal Code of Chicago is hereby amended by deleting the language stricken through and by inserting the language underscored, as follows

4-14-040 Legal duties.

(a) Descriptive information on listing - Required. Bach shared housing host shall include the following information in every listing ofa shared housing unit on a platform:
the short-term residential rental provider's shared housing host's cancellation and check-in and check-out policies:
a statement on: (i) whether the short temv-residential rental shared housing unit is wheelchair or ADA accessible: (ii) whether the short-term residential rental shared housing unit has any parking availability or restrictions; and (iii) the availability of, or restrictions on, the use ofany recreational facilities or other amenities applicable to guests;





34

a description ofthe short term residential rental- shared housing unit, including the number of sleeping rooms and bathrooms, and whether the entire dwelling unit, or only a portion thereof, is available for rent; and


rental previder's city license-er registration number assigned bv the department to the shared housing unit.

(b) Operating requirements. Each shared housing host shall comply with the following operating requirements:

(Omitted text is unaffected by this ordinance)
Registration number in advertisements, listings, rental agreements and bookings for future rental - Required. Except as otherwise provided in Section 4 13 230(d), each Each shared housing host shall conspicuously display in legible type the shared housing unit's registration number in: (i) every advertisement ofany type in connection with the rental ofthe shared housing unit, (ii) every listing ofthe shared housing unit on any platform, and (iii) every rental agreement for, and booking for future rental of. any shared housing unit. Failure to comply with this requirement shall create a rebuttable presumption that the shared housing unit is being operated without the proper registration.

(Omitted text is unaffected by this ordinance)

(e) Compliance with lax laws - Required. Each shared housing host shall comply with all applicable federal, state and local laws and regulations regarding the collection and payment of taxes, including but not limited to the Chicago Motel Accommodation fax Ordinance. Chapter 3-24 ofthis Code (where applicable).



SECTION 28. Section 4-14-050 ofthe Municipal Code of Chicago is hereby amended by deleting the language stricken through and by inserting the language underscored, as follows:

4-14-050 Unlawful acts.

(a) Griminal activity, nuisances, Nuisances Illegal activity, objectionable
conditions, egregious conditions - Prohibited.

[\y Illegal activity and objectional conditions. It shall be unlawful for any shared
housing host to permit any eriminal activii nuisance within the meaning of Section
4-13-260(a)( 1 Ver-egregious cehidkiefh to take place within the shared housing unit. In addition to any other penalty provided by law, any person who violates this subsection (a)( 1) shall be subject to a fine of not less than $2,500.00 nor more than $5,000.00 for each offense. Each day that a violation continues shall constitute a separate and distinct offense.


35

(2) Egregious condition. It shall be unlawful for any shared housing host to permit any egregious condition to take place within the shared housing unit. In addition to any other penalty provided by law, anv person who violates this subsection (a)(2) shall be subject to a fine of not less than $5,000.00 nor more than $10,000.00 for each offense. Each day that a violation continues shall constitute a separate and distinct offense.

(b) Exceeding maximum occupancy - Prohibited. It shall be unlawful for any shared housing host to exceed the maximum occupancy limit of: (i) two persons, not including a guest's children under the age of 18, per guest room within the shared housing unit; or (ii ) no more than one person per 125 square feet of floor area of the shared housing unit-: or The occupancy limitation set forth in this subsection is the absolute maximum limitation. The (iii) the actual allowed capacity ofthe shared housing unit shall be based on the applicable provisions of the building code, whichever is less. As used in this subsection (b), the term "guest room" means a room used or intended to be used for sleeping purposes. The term "guest room" does not include bathrooms, toilet rooms, kitchens, closets, halls, incidental storage or utility spaces, or similar areas. In addition to any other penalty provided by law, any person who violates this subsection (b) shall be subject to a fine of not less than $5,000.00 nor more than $10,000.00 for each offense. Each day that a violation continues shall constitute a separate and distinct offense.

(Omitted text is unaffected by this ordinance)
Rental under ten hours the minimum rental period - Prohibited. It shall be unlawful for any shared housing host to rent any shared housing unit, or any portion thereof, by the hour or for any period of fewer than ten consecutive hours less than two consecutive nights until such time that the commissioner and superintendent of police determine that such rentals can be conducted safely under conditions set forth in rules jointly and duly promulgated by the commissioner and superintendent. Provided, however, that under no circumstances shall a shared housing unit, or any portion thereof, be rented bv the hour or for any period of less than 10 consecutive hours.
Multiple rentals within JO hour the minimum rental period - Prohibited. It shall be unlawful for any shared housing host to rent any shared housing unit, or any portion thereof, more than once within any consecutive ten hour 48-hour period._as measured from the commencement of one rental to the commencement ofthe next rental until such time that the commissioner and superintendent of police determine that such rentals can be conducted safely under conditions set forth in rules jointly and duly promulgated by the commissioner and superintendent. Provided, however, that under no circumstances shall a shared housing unit, or any portion thereof, be rented more than once within any consecutive 10-hour period.





36
(g) Advertising hourly rate less than the minimum rental period - Prohibited. It shall be unlawful for any shared housing host to advertise an hourly rate or any other rate for any shared housing unit, or any portion thereof, based on a rental period of fewer than ten less than consecutive hours the rental period authorized under subsections (e) and (f) ofthis section.

(Omitted text i.s unaffected by this ordinance)

(i-) Rental of ineligible units by shared housing host or host's family members— Prohibited. Following notice ofa final determination of ineligibility under Section 4 14 030fb47 it shall be unlawful for any shared housing host to rent or allow any family member to rent any
[CHil 1 t£cl rFr~rirfcifcrrl rr0rlfc"C~tl lilt-tllC COtl'rrTrrSS'l'O'Hiirl IltiS dctCF
i n 'inv t~\ I fit rnrni Anv npr^nn wln^ vw\if> tints' tnifi il'V£>Y»tif"\n ^ItiII \~\t* Tin p H n t~\ t 7 n tl I iv pr runx'tTrr: ;tyi ij LfCl 5UIIVv i i\_>v tvtiti tco tl 11 s rj ttt/oCv t I si let 11 L"~ il I ictr^rrcr
v^OO 00 nAr mAfp Innn >! 1 000 00 wm1 rpnhno t'lifh olvirpn nniicino linit tv;itnin 1 .''1 polpnri'n' nnv*' rvf ¦ice is senH-ft^l-tTOt-less-t^ $3,000.00 for

day ofthe date on which such notice is sent; and $5,000.00 for renting such shared housing unit on or after the 28th calendar day ofthe date on which such notice is sent. Lach day that a violation-eontinues after such 28th calendar day shall constitute a separate and distinct offense.



SECTION 29. Section 4-14-060 ofthe Municipal Code of Chicago is hereby amended by deleting the language stricken through and by inserting the language underscored, as follows:

4-14-060 Rental requirements and restrictions.
Lawfully established dwelling unit with six or fewer sleeping rooms - Required. It shall be unlawful for tiny shared housing host to advertise for rental, list on any platfonr^ or to rent or book for future rental any shared housing unit that is not a lawfully established dwelling unit within the meaning of Section 17-17-0248, which contains containing six or fewer sleeping rooms and located within a residential building.
Violation of condominium or cooperative building restrictions - Prohibited. It shall be unlawful for any shared housing host to advertise for rental, list on any platform^ or to rent or book for future rental any shared housing unit ifthe homeowners association or board of directors has adopted by-laws prohibiting the use ofthe dwelling unit as a shared housing unit or vacation rental, in any combination.
Violation of rental requirements and restrictions - Prohibited. It shall be unlawful for any shared housing host to advertise for rental, list on any platfornij er-te rent or book for future rental any shared housing unit that is subject to a rental agreement, ifthe owner ofthe building in which the dwelling unit is located has prohibited the use of such dwelling unit as a shared housing unit or vacation rental, in any combination.


37

Listing and rental of single family home that is not the licensee's primary residence - Restricted. It shall be unlawful for any shared housing host to advertise for rental, list on any platform,_er-te rent or book for future rental any shared housing unit that is a single family home, unless such single family home is the shared housing host's primary residence. Provided, however, that this prohibition shall not apply if: (i) the shared housing host is on active military duty and such host has appointed a designated agent or employee to manage, control and reside in the single family home during such host's absence while on military duty; or (ii) the applicable commissioner's adjustment under Section 4-14-100(a) permitting otherwise has been obtained; or (iii) the single family home was properly licensed, as of June 22, 2016, as a non-owner occupied vacation rental.
Listing and rental in buildings with up to four dwelling units - Restricted. It shall be unlawful for any shared housing host to advertise for rental, list on any platforrm or to rent or book for future rental any shared housing unit that is located in a building containing two to four dwelling units, inclusive, unless such dwelling unit is: (i) the shared housing host's primary residence, and (ii) is the only dwelling unit in the building that is or will be used as a shared housing unit or vacation rental, in any combination. Provided, however, that the prohibition set forth in item (i) ofthis subsection shall not apply ifthe shared housing host is on active military duty and such host has appointed a designated agent or employee to manage, control and reside in the shared housing unit during such host's absence. Provided further, that the prohibitions set forth in items (i) or (ii) of this subsection shall not apply if: (a) the applicable commissioner's adjustment under Section 4-14-100(a) permitting otherwise has been obtained; or (b) the shared housing unit was properly licensed, as of June 22, 2016, as a non-owner occupied vacation rental.
Listing and rental in buildings with five or more dwelling units - Prohibited. It shall be unlawful for any shared housing host to advertise for rental, list on any platform^ er-te rent or book for future rental any shared housing unit that is located in a building containing five or more dwelling units, when more than six dwelling units in the building, or one-quarter ofthe total dwelling units in the building, whichever is less, are or will be used as shared housing units or vacation rentals, in any combination, ifthe dwelling unit identified in the registration application is registered as a shared housing unit.

fg-) Removal of ineligible listings from platform. Following notice ofa final determination of ineligibility under Section 4 13 260 (b) or Section 4 11 030(b), it shall be unlawful for a shared housing host to fail to remove the ineligible listing from the platform in the
minnpr t*\ r* r> ht^/i hv tnr* fiMnmicciiMipr in riil^y In 'WiHitirxn t r\ ''inw f\t n or nf>n *'i 1tM i nrnii H p- rl r\\i rrrcrrrrrCt pi trstrtu'C'lr t_' ytl tC ttM 11M rt istjtfcJi itri iff 1 in Co. ill ttCitl It I t»i I tt> tit I ytJtrrtlpCitilTty ^jtxJ v tLlCLl uy
law, any person-who fails to comply with this subsection (g) shall be fined not less-than
$1,500.00 nor more than $3,000.00 for such failure to comply within-8 to 14 calendar days ofthe
date on which notice ui>€ler-Seetien 4-13-260 (b) or Seetien 4-13-220 (h) is sent; and not less



38
than $2,5£Qrfle^nor-fflere than $5,000.00 for failure to comply on the 15th calendar day ofthe date on which such notice is sent or on any calendar day thereafter. Each-day that a violation continues after such 15th calendar day shall constitute a separate and distinct offense.



SECTION 30. Section 4-14-070 ofthe Municipal Code of Chicago is hereby amended by inserting the language underscored, as follows:

4-14-070 Rules.

The commissioner is authorized to promulgate rule necessary or appropriate to implement this chapter.



SECTION 31. Section 4-14-080 ofthe Municipal Code of Chicago is hereby amended by deleting the language stricken through and by inserting the language underscored, as follows:

4-14-080 Registration - Suspension or revocation.

(Omitted text is unaffected by this ordinance)
Immediate suspension or revocation - Post-deprivation hearing - Authorized when. Ifthe commissioner has good cause to believe that: (1) continued rental ofa shared housing unit causes an imminent threat to public health, safety or welfare, and (2) grounds exist for revocation or suspension ofthe shared housing unit's registration, including^ but not limited to; any of the grounds set forth in subsection (c)(1) through (e)(6)(c')(5), inclusive, ofthis section, 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. Ifthe shared housing host fails to request a hearing within the prescribed time, or requests a hearing but fails to appear at such hearing, the shared housing unit's registration shall be deemed revoked.
Suspension or revocation - Pre-deprivation hearing - Authorized when. In addition to any other applicable reason, a shared housing unit registration may be suspended or revoked in accordance with this section under the following circumstances:

(1) Situs of one or more egregious conditions. When a shared housing unit is the situs of one or more egregious conditions while rented to guests; or


39

boon tho situs, on throe or more occasions, while rented to guests, of-dislurbance ofthe peace, puhlic drunkenness, drinking in public, harassment of passersby, loitering, public urination, lewd conduct, overcrowding, exceeding design loads, or excessive loud noise. For purposes ofthis subsection (c)(2):

"Excessive loud noise'* means any noise, generated from within or having a nexus to the rental of the shared housing unit, between 8:00 P.M. and 8:00 A.M., that is louder than average conversational level at a distance of 100 foot or more, measured from the property lino of the shared housing unit.

"Overcrowding" moans occupancy by more persons than tho maximum occupancy limit of no more than one person per 125 foot of floor area ofthe shared housing unit or the shared housing unit's actual capacity based on the applicable provisions ofthe building code, whichever is less.

"Exceeding design loads" means placing loads on structural elements or components of buildings, including, but not limi to, porches, balconies, and roof decks, in excess of the minimum design loads required by the building code; or

(3)[2) Situs of three two or more nuisance conditions. When, in the determination ofthe Commissioner commissioner, the rental ofthe shared housing unit creates a nuisance because at least three two separate incidents involving illegal aets activity or objectionable conditions^-as that term is defined in Section 4 13 313(h), occurred during a 12-month period: (i) in the shared housing unit; or (ii) in or on the premises in which the shared housing unit is located; or (iii) in the shared housing unit's parking facility; or (iv) on adjacent property. For purposes of determining whether three or more illegal acts any nuisance occurred during a 12-month period, such illegal aets activity or objectionable conditions occurring shall be limited to acts ofthe guests^ or ef invitees ofthe guests, or to acts otherwise involving circumstances having a nexus to the operation of the shared housing unit while rented to a guest. In a proceeding to suspend or revoke the registration ofa shared housing unit that is or creates a nuisance under this Section 4-M 080 subsection (c)(3), any evidence on which a reasonably prudent person would rely may be considered without regard to the formal or technical rules of evidence, and the Commissioner commissioner may rely on police reports, official written reports, affidavits and business records submitted by authorized City officials or employees charged with inspection or enforcement responsibilities to determine whether such illegal aets activity or objectionable conditions occurred. If, during any 12-month period, three two or more separate incidents of illegal aets activity or objectionable conditions, in any combination, occur on the registered premises, or on or in the registered premises' parking facility, or on adjacent property, a rebuttable presumption




40
shall exist that the shared housing unit is or creates a nuisance in violation ofthis Section 4 18 OS© subsection (c)(3); or

(4)(3) Scofflaw or problem landlord. When a shared housing unit is listed on, or is located in a building that is listed on, the city's City's Building Code Scofflaw List or Problem Landlord List pursuant to Section 2-92-416; or

(§)(4) Threat to public health, safety or welfare. When the commissioner determines that the continued rental ofa shared housing unit poses a threat to the public health, safety or welfare; or

(e)(5) Unlawful discrimination. When, in connection with the listing for rental or rental ofa shared housing unit, the commissioner or the Chicago commission on human relations has determined that a violation of Section 2-160-070 or Section 4-14-040(c), as applicable, has occurred.
41

(d) Notification and hearing process. 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 ofthe 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 calendar 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 commenced within 10 business days of receipt of such request. Within 60 calendar days of completion 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 shared housing host fails to request a hearing within the prescribed time, the shared housing unit registration shall be deemed suspended or revoked. Upon entry ofa final order of suspension or revocation, the commissioner shall: (1) notify the short term residential rental intermediary in writing of such fact; and (2) place the unit on the ineligibility list maintained by the commissioner under Section 4-13-270(b). Within three calendar days ofthe date on which the commissioner sends such written notification of suspension or revocation to the shared housing host, the shared housing host shall remove the short term residential unit


SECTION 32. Section 4-14-105 ofthe Municipal Code of Chicago is hereby amended by deleting the language stricken through and by inserting the language underscored, as follows:

4-14-105 Limit calculation.

The limits on the number of shared housing units in a building shall be calculated as maximum limits using the method in section Section 17-1 -0605-13.



SECTION 33. Section 4-16-100 ofthe Municipal Code of Chicago is hereby amended by inserting, in correct alphabetical order, the language underscored, as follows:
4-16-100 Definitions.
(Omitted text is unaffected by this ordinance) "Licensee" has the meaning ascribed to that term in Section 4-4-005.
(Omitted text is unaffected by this ordinance)



SECTION 34. Section 4-16-210 of the Municipal Code of Chicago is hereby amended by inserting the language underscored, as follows:


4-16-210 License 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 license to engage in the business of shared housing operator shall be accompanied by the following information:

(Omitted text is unaffected by this ordinance)
It is a condition ofthe license that all information in the application be kept current. Any change in required information shall be reported to the department in accordance with Section 4-4-050(b).







42

SECTION 35. Section 4-16-220 ofthe Municipal Code of Chicago is hereby amended by deleting the language stricken through, as follows:

4-16-220 Legal duties.
Local contact person - Required. Each licensee under this Article II shall have a duty to maintain a local contact person who: (i) is designated for service of process; (ii) is authorized by the applicant or licensee to take remedial action and to respond to any violation of this Code; and (iii) maintains a residence or office located in the city.
Compliance with shared housing unit laws - Required. Each licensee under this Article II shall have a duty to comply with all applicable laws and regulations regarding operation of shared housing units.

(c) Compliance with tax laws - Required. Each licensee under this Article II shall have a duty to comply with all applicable federal, state and local laws and regulations regarding the collection and payment of taxes, including hotel aeeommedation taxes including but not limited to the Chicago Hotel Accommodation Tax Ordinance. Chapter 3-24 ofthis Code (where applicable).



SECTION 36. Section 4-16-230 ofthe Municipal Code of Chicago is hereby amended by deleting the language stricken through, as follows:

4-16-230 Departmental duties.

(a) Inspections. The building commissioner is authorized to mandate an inspection of any shared housing unit operated by a shared housing unit operator at least once every two years, at a time and in manner, including through third-party reviews, as provided for in rules and regulations promulgated by the building commissioner.



SECTION 37. Chapter 4-16 ofthe Municipal Code of Chicago is hereby amended by inserting a new Section 4-16-240, underscored as follows:

4-16-240 Rules.

The commissioner is authorized to promulgate rules necessary or appropriate to implement this section.






43

SECTION 38. Section 4-17-010 ofthe Municipal Code of Chicago is hereby amended by deleting the language stricken through and by inserting the language underscored, as follows:

Section 4-17-010 Definitions.

(Omitted text is unaffected by this ordinance)

"Residentially zoned property** means property that bears an RS-1. RS-2. or RS-3. RT-3.5. RT-4. RM-5 or RM-4.5 designation pursuant to the Chicago Zoning Ordinance.

(Omitted text is unaffected by this ordinance)



SECTION 39. Effective date.
SECTION 4 (amending Section 4-6-300), SECTION 24 (amending Section 4-14-010), SECTION 28 (amending Section 4-14-050), SECTION 31 (amending Section 4-14-080) and SECTION 38 (amending Section 4-17-010) ofthis ordinance shall take full force and effect ten days after its passage and publication. Provided, however, that the prohibitions set forth in Section 4-6-300(g)(1) and (g)(2) and in Section 4-14-050(e) and (f), pertaining to rental and multiple rentals within the minimum rental period, shall not apply to any rental that was lawfully booked prior to the date of introduction ofthis Ordinance.
The remainder ofthis ordinance shall take full force and effect on April 1, 2021 in accordance with this subsection. On and after April 1, 2021, any person submitting an initial application for registration ofa shared housing unit with the department shall comply with the application requirements set forth in Section 4-14-020(b). Persons holding a valid registration number issued before April 1, 2021 for a shared housing unit ("existing registration") shall comply with the application requirements set forth in Section 4-14-020(b) at the time of renewal of such existing registration or in accordance with an expedited renewal schedule for existing registrations as may be required by the commissioner in duly promulgated rules.















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