ARTICLE XXVII. HOME OCCUPATIONS (4-6-270 et seq.)

4-6-270 Home occupations.

   (a)   Definitions. As used in this section:

   "Accessory use," "accessory building" or "accessory structure" have the meaning ascribed to those terms in Section 17-9-0201-B.

   "Base metal" means any metal in unwrought, semi- processed (e.g. as powder, wire, rods, cable) or waste/scrap form, including, but not limited to, iron, steel, copper, nickel, aluminum, calcium, lead, magnesium, tin, titanium, zinc, and zirconium.

   "Dwelling unit" has the meaning ascribed to that term in Section 17-17-0248.

   "Hazardous material" has the meaning ascribed to that term in Section 4-6-210.

   "Home occupation" means the accessory use, of a business or commercial nature, of a dwelling unit by the person(s) residing in such dwelling unit. The term "home occupation" does not include persons who, as an owner or employee, perform administrative, clerical or research work in their home for an entity whose principal place of business is located elsewhere. Nor does the term "home occupation" include any child care institution, day care center, part-day child care facility, group home, day care home or group day care home that is properly licensed by a state agency or by the City of Chicago. Nor does the term "home occupation" include any cottage food operation or home kitchen operation properly registered by a state or county agency or the City of Chicago.

   "Non-resident external employee(s)" or "external employee(s)" have the meaning ascribed to those terms in subsection (g)(9)(ii) of this section.

   "Non-resident internal employee(s)" or "internal employee(s)" have the meaning ascribed to those terms in subsection (g)(9)(i) of this section.

   "Residential building" has the meaning ascribed to the term in Section 17-17-02146.

   (b)   Scope of license. A regulated business license for a home occupation shall entitle its holder to conduct more than one home occupation within the licensed dwelling unit if the license applicant indicates, on the license application form, the occupations that will be carried on in such dwelling unit.

   (c)   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 a home occupation shall be accompanied by the following information:

      (1)   the location of the dwelling unit where the home occupation will be carried on;

      (2)   the name of the person(s) who will be designated as the licensee;

      (3)   whether more than one home occupation will be carried on in the dwelling unit;

      (4)   the type(s) of occupation(s) that will be carried on in the dwelling unit;

      (5)   the total square footage of the floor area of the applicable dwelling unit;

      (6)   the total square footage of the floor area of the dwelling unit that will be permanently occupied by the home occupation;

      (7)   the percentage of the floor area of the dwelling unit that will be permanently occupied by the home occupation;

      (8)   whether any accessory building or accessory structure, such as a garage, will be permanently used to store any material used in connection with the occupation(s) identified pursuant to item (4) of this subsection (c), and, if so, the total square footage of the floor area of such accessory building or accessory structure that will be used for such purpose.

   (d)   License issuance and renewal – Prohibited when. No regulated business license to engage in a home occupation shall be issued to the following persons:

      (1)   any applicant or licensee, as applicable, if the home occupation identified in the license application is the principal use of the dwelling unit. In order for a home occupation license to be issued under this section, the home occupation must be accessory, incidental and secondary to the principal residential use of the dwelling unit;

      (2)   any applicant or licensee, as applicable, if the home occupation identified in the license application will change the residential character of the dwelling unit or adversely affect the character of the surrounding neighborhood;

      (3)   any applicant or licensee, as applicable, if the home occupation identified in the license application is for an occupation or activity prohibited under subsection (e) of this section;

      (4)   any applicant or licensee, as applicable, if the total square footage of the home occupation exceeds the permitted percentage or square footage requirements set forth in subsection (g)(7) of this section;

      (5)   any applicant or licensee, as applicable, if the home occupation does not comply with Section 17-9-0202 or other applicable provisions of the Chicago Zoning Ordinance.

   (e)   Activities not subject to licensure as a home occupation – Standards. The following activities shall not be licensed as home occupations under this section:

      (1)   any repair of motorized vehicles, including the painting or repair of automobiles, trucks, trailers, boats, and lawn equipment;

      (2)   the dispatch, for compensation of any type, of any type of motor vehicle;

      (3)   animal hospitals;

      (4)   astrology, card reading, palm reading or fortune-telling in any form;

      (5)   kennels;

      (6)   stables;

      (7)   bird keeping facilities;

      (8)   barber shops or beauty parlors;

      (9)   dancing schools;

      (10)   restaurants or pop-up food establishments as defined in Section 4-8-010;

      (11)   massage establishments, including massage therapy;

      (12)   caterers / catering / food preparation businesses / shared kitchens as defined in Section 4-8-010;

      (13)   funeral chapels or funeral homes;

      (14)   crematoria;

      (15)   mausoleums;

      (16)   medical or dental services and/or clinics;

      (17)   public places of amusement;

      (18)   the sale of firearms, antique firearms as defined in Section 8-20-010, or ammunition;

      (19)   a weapons dealer;

      (20)   firearm training or instruction;

      (21)   storage of machines or bulk materials to be utilized in the operation of construction businesses or landscaping businesses;

      (22)   warehousing;

      (23)   welding or machine shops; and

      (24)   any activity that requires a children's services facility license under Chapter 4-75 of this Code.

   (f)   Legal duties – Standards. Each licensee engaged in a home occupation shall have a duty to:

      (1)   conduct the home occupation completely within the dwelling unit. Provided, however, that services offered or performed in conjunction with the home occupation may be provided off-site. Provided further, that an attached or unattached accessory building or accessory structure, such as a garage, may also be used for incidental storage of materials, supplies and business records related to the home occupation if all of the following requirements are met: (i) the accessory building or structure is fully enclosed; (ii) no hazardous materials are stored in the accessory building or structure; (iii) if business records or paper supplies are stored in the accessory building or structure, such records or supplies are enclosed in boxes, file cabinets or other containers and all storage of materials, supplies, and records complies with all applicable provisions of this Code, including applicable ordinances relating to fire prevention; (iv) the square footage limitations set forth in subsection (g)(7) of this section are not exceeded; and (v) use of a garage for incidental storage shall not displace any off-street parking required under Chapter 17-10 of the Zoning Ordinance.

   (g)   Prohibited acts – Standards. It shall be unlawful for any licensee engaged in a home occupation to:

      (1)   conduct a home occupation in violation of Section 17-9-0202 or other applicable provisions of the Chicago Zoning Ordinance;

      (2)   allow the home occupation to become the principal use of the dwelling unit. The home occupation shall be accessory, incidental and secondary to the principal residential use of the dwelling unit;

      (3)   add to the dwelling unit a separate entrance from outside the building for the sole use of the home occupation;

      (4)   display signage or any other evidence of operation of the home occupation: (i) on the exterior of the dwelling unit or residential building or accessory building or accessory structure in which the dwelling unit is located, or (ii) if the dwelling unit is located in a residential building containing 2 or more dwelling units, on any interior wall or other interior location within such residential building other than the interior of the dwelling unit itself, or (iii) in any location within the dwelling unit or residential building or accessory building or accessory structure that is clearly visible from the public way;

      (5)   make any internal or external structural alterations or construction to the dwelling unit, whether permanent or accessory, of the type that will change the residential character of the dwelling unit or the residential building in which the dwelling unit is located;

      (6)   install any equipment of the type that will change the residential character of the dwelling unit or the residential building in which the dwelling unit is located;

      (7)   allow the total square footage of any home occupation, including any accessory building or accessory structure used for storage or other home occupation business-related activities, to permanently occupy more than 300 square feet or 25 percent of the total floor area of any dwelling unit, whichever number is larger;

      (8)   produce or emit any noise, vibration, smoke, dust or other particulate matter, odorous matter, heat, humidity, glare, obstruction to the public way, or any other effect that unreasonably interferes with any person's enjoyment of his or her residence;

      (9)   (i)   hire or retain, or otherwise permit or allow, more than one non-resident employee to work within the dwelling unit in connection with the home occupation. All other employees of the licensee who work within the dwelling unit shall reside in the dwelling unit in which the home occupation is located.

         (ii)   Nothing in this subsection (g)(9) shall be construed to prohibit a licensee under this section from hiring or retaining non-resident employees to work exclusively outside the dwelling unit in connection with the home occupation.

         (iii)   In the event of an alleged violation of subparagraph (i) of this subsection (g)(9), the following requirements shall apply: (A) A rebuttable presumption shall exist that an employee has been authorized by the licensee to work within the dwelling unit in connection with the home occupation if such employee is present in the dwelling unit for more than three consecutive hours in any given day. (B) The burden of proof shall be on the licensee to prove, by a preponderance of evidence, that the non-resident employee is an external employee;

      (10)   regardless of whether a dwelling unit is used for one or more home occupations: (i) allow more than two patrons or clients or non-resident external employees of the home occupation to be present, in any combination, in the dwelling unit at any one time; or (ii) allow more than ten patrons or clients or external employees of the home occupation to be present, in any combination, in the dwelling unit during any 24-hour period; or (iii) allow any person, other than the person(s) who reside in the dwelling unit and not more than one non-resident internal employee, to perform any work in the dwelling unit in connection with the home occupation(s) being carried on in such dwelling unit. Provided, however, that the restrictions set forth in this subsection (g)(10) on the number of patrons, clients and non-resident external employees allowed in a dwelling unit shall apply to all home occupations within such dwelling unit and shall not be cumulative. Provided further, that in the event of an alleged violation of this subsection (g)(10), the rebuttable presumption and burden of proof set forth in items (A) and (B), respectively, of subsection (g)(9)(iii) of this section shall apply;

      (11)   permit any tractor trailer delivery; or

      (12)   permit or accept more than one bulk delivery per day (in addition to United States mail service, Federal Express, U.P.S. and messenger services). Any such bulk delivery shall occur between the hours of 8:00 a.m. and 6:00 p.m. and such bulk delivery complies with all applicable provisions of this Code, including applicable ordinances relating to fire prevention and the governing of special types of vehicles on City of Chicago streets set forth under Section 9-64-170.

   (h)   Construction of section.

      (1)   Nothing in this section shall affect the applicability of any federal or state law pertaining to the production, manufacture or assembly of products, or the applicability of the Fair Labor Standards Act, the Occupational Health and Safety Act, or any child labor, workers' compensation, unemployment compensation, wage and hour or other applicable law.

      (2)   Nothing in this section shall prevent a condominium association's board of directors, a cooperative association's board of directors or a landlord from adopting a rule, declaration, or bylaw prohibiting home occupations on the premises under which circumstances such rule shall supersede this section in effect. Nothing in this section shall preclude, invalidate or override any existing covenant, bylaw or rule of a condominium association, common interest community, housing cooperative or landlord which prohibits, restricts or regulates, in a stricter manner than this section, home occupations.

(Added Coun. J. 5-9-12, p. 27485, § 16; Amend Coun. J. 11-8-12, p. 38872, § 73; Amend Coun. J. 6-25-14, p. 83727, § 3; Amend Coun. J. 2-22-17, p. 43916, Art. I, § 1; Amend Coun. J. 9-20-18, p. 84293, § 3; Amend Coun. J. 4-21-21, p. 29591, § 1)

ARTICLE XXVIII. HOME REPAIR (4-6-280 et seq.)

4-6-280 Home repair.

   (a)   Definitions. As used in this section:

   "Home repair" means fixing, replacing, altering, converting, modernizing, improving or making an addition to any real property primarily designed or used as a residence. The term "home repair" includes the construction, installation, replacement or improvement of driveways, swimming pools, porches, kitchens, bathrooms, basements, chimneys, chimney liners, garages, fences, fallout shelters, central air conditioning, central heating, boilers, furnaces, hot water heaters, electrical wiring, sewers, plumbing fixtures, storm doors, storm windows, roofs, awnings and other improvements to structures within a residence or upon the land adjacent thereto. The term "home repair" does not include (i) the sale, installation, cleaning or repair of carpets; (ii) the sale of goods or materials by a merchant who does not, directly or through a subsidiary, perform any work or labor in connection with the installation or application of the goods and materials; (iii) the repair, installation, replacement or connection of any home appliance, including, but not limited to, disposals, refrigerators, ranges, garage door openers, television antennas, washing machines, telephones or other appliances when the persons replacing, installing, repairing or connecting such home appliance are employees or agents of the merchant that sold the home appliance; (iv) television repair; or (v) landscaping.

   "Residence" means any building or portion of a building used or intended to be used as a dwelling unit. The provisions of this chapter shall not apply to original construction of a residence.

   (b)   Exemptions. The requirements of this section shall not apply to (1) persons who perform home repairs to their own property; or (2) individuals who are employees of persons licensed under this section when such individual is working within the scope of their employment; or (3) except as otherwise provided in Section 4-36-120(G), persons holding a valid general contractor's license under Chapter 4-36 of this Code.

   (c)   Application – Additional information required. In addition to the requirements set forth in Section 4-4-050, an application for, or renewal of, a regulated business license to engage in the business of home repair shall be accompanied by the following information:

      (1)   a description of the type of home repair or improvement in which the applicant will engage;

      (2)   a statement indicating whether there are any outstanding judgments against the applicant; and if so, the amount of such judgment, the case number and the court rendering such judgment;

      (3)   a statement listing the name and address of the principal location from which the applicant has performed home repair at any time within the last five years;

      (4)   proof of commercial general liability insurance, as required under subsection (d)(1) of this section;

   (d)   Legal duties. Any licensee engaged in the business of home repair shall have a duty to:

      (1)   obtain commercial general liability insurance, with limits of not less than $300,000.00 per occurrence, for bodily injury, personal injury and property damage arising in any way from the issuance of the license or activities conducted pursuant to the license. The policy of insurance required under this subsection shall: (i) be issued by an insurer authorized to insure in the State of Illinois; (ii) name the City of Chicago as an additional insured on a primary, noncontributory basis for any liability arising directly or indirectly from the licensee's operations; and (iii) include a provision requiring 30 days' advance notice to the commissioner prior to cancellation or lapse of the policy. The licensee shall maintain the insurance required under this subsection in full force and effect throughout the duration of the license period. Proof of insurance shall be kept on the licensed premises, and, upon request by any authorized city official, shall be made available for inspection by such authorized city official. A single violation of this subsection may result in license suspension or revocation in accordance with Section 4-4-280;

      (2)   print the licensee's license number legibly on the front page of every contract or estimate for home repair and upon every application for a building permit. In addition, the license number shall appear in any advertisement placed by or on behalf of a home repair contractor. The licensee shall also affix his license number and the licensee's name on all vehicles used in the course of his business as a home repair contractor;

      (3)   furnish to the licensee's home repair customer a written estimate of repairs, which shall state the total estimated cost of: (i) parts listed with reasonable particularity and identified by brand name or equivalent; (ii) labor; (iii) incidental services; and (iv) charges, if any, for making such estimates;

      (4)   give to the licensee's customer a signed copy of the written estimate with the word "estimate" conspicuously placed thereon. Such estimate shall include the licensee's name and business address. No person engaged in the business of making home repairs shall demand a waiver of any customer's rights herein enumerated as a precondition to acceptance of repair work;

      (5)   record on an invoice all home repair work performed by the licensee. Such invoice shall include the licensee's name and address and shall describe in detail all services or work performed and all parts supplied and the exact charge for each part or service. One copy of such invoice shall be given to the customer upon completion of the home repair;

      (6)   notify the customer and obtain prior approval before performing any work that would result in charges in excess of the amount specified in the original estimate. In no event shall a customer be required to pay more than the amount specified in the original estimate if the customer did not receive notification of additional costs not reflected in the original estimate.

   (e)   Prohibited acts. It shall be unlawful for any licensee engaged in the business of home repair to:

      (1)   demand a waiver of any customer's rights as a precondition to acceptance of repair work;

      (2)   knowingly charge for any service which was not actually performed in making a home repair, or knowingly misinform a customer about what is wrong with an item that is subject to repair, or fraudulently substitute parts when such substitution has no relation to repair of an item or service on an item;

      (3)   make repairs or charge for repairs before obtaining a signed work order or providing an estimate for such repairs;

      (4)   fail to disclose, prior to preparing any estimate, any service charge or minimum charge that will apply in connection with the preparation of such estimate;

      (5)   knowingly allow any other person to use the licensee's name or license identification on a building permit application if such licensee will not be performing the work which the permit application states the licensee will perform unless the permit application has been amended to (i) remove the licensee's name or license identification; and (ii) insert the name of the licensee who will perform the work. Any person who violates any provision of this subsection shall be subject to a fine of $1,000.00 for the first offense; a fine of $1,500.00 and a 90-day license suspension for the second offense; and a fine of $2,000.00 and license revocation for the third and any subsequent offense.

   (f)   Penalty. Except as otherwise provided in this section, and in addition to any other penalty provided by law, any person who violates any provision of this section or any rule or regulation promulgated thereunder shall be fined not less than $500.00 nor more than $5,000.00 for each offense. Each day that a violation continues shall constitute a separate and distinct offense.

   (g)   Private right of action. Any person aggrieved by any violation of this section or any rule or regulation promulgated thereunder may bring an action in an appropriate court against any person subject to this section, for injunction against the violation or for such other or additional relief as may be appropriate to deter, prevent or compensate for the violation. It is the express intention of the city council that remedies for violation of this ordinance shall be cumulative.

(Added Coun. J. 5-9-12, p. 27485, § 16; Amend Coun. J. 6-6-12, p. 28356, § 1B; Amend Coun. J. 11-8-12, p. 38872, § 74; Amend Coun. J. 10-28-15, p. 11951, Art. VI, § 7; Amend Coun. J. 11-16-16, p. 37901, Art. II, § 7)

ARTICLE XXIX. BED-AND-BREAKFAST ESTABLISHMENT (4-6-290 et seq.)

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

   (a)   Definitions. As used in this section:

   "Bed and Breakfast Act" means the Illinois Bed and Breakfast Act, codified at 50 ILCS 820, et seq.

   "Bed-and-breakfast establishment" or "establishment" means an owner-occupied single-family residential building, or an owner-occupied, multiple-family residential building, or an owner-occupied condominium, townhouse or cooperative, in which 11 or fewer sleeping rooms are available for rent or for hire for transient occupancy by registered guests. The term "bed-and-breakfast establishment" does not include: (1) single-room occupancy buildings, as defined in Section 4-6-220; (2) shared housing units, as defined in Section 4-14-010, that are registered or required to be registered with the City pursuant to Chapter 4-14 of this Code; (3) vacation rentals, as defined in Section 4-6-300(a), that are licensed or required to be licensed by the City pursuant to Section 4-6-300; (4) hotels, as defined in Section 4-6-180; (5) conversion units, as defined in Section 17-17-0240.6; or (6) coach houses, as defined in Section 17-17-0234.6, unless the coach house was being used for residential purposes as of January 16, 2003. If the bed-and-breakfast establishment is a single-family residential building located on a lot that includes a principal house and an accessory building that was being used for residential purposes as of January 16, 2003, the accessory building shall be considered to be part of the establishment. The term "guests" does not include members of the owner's household within the meaning of the Chicago Zoning Ordinance; nor does it include persons who have signed a lease to use and occupy residential property unless the leased residential property is held out by its owner, or by any person acting on the owner's behalf, to be a bed-and-breakfast establishment.

   "Breakfast" means any morning meal provided between the hours of 5:00 a.m. and 2:00 p.m.

   "Immediately adjacent" means the front yard, rear yard, side yard, inner court and contiguous public way.

   "Licensee" has the meaning ascribed to that term in Section 4-4-005.

   "Minimal preparation" means any food that is not cooked in the establishment's kitchen, such as coffee, milk, juice, fruit, sandwiches and prepackaged, hermetically-sealed foods.

   "Permanent occupancy" means occupancy on a daily or nightly basis, or any part thereof, for a period of 32 or more consecutive days.

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

   "Transient occupancy" means occupancy on a daily or nightly basis, or any part thereof, for a period of 31 or fewer consecutive days.

   (b)   License – Scope. A bed-and-breakfast license issued under this section allows the licensee to provide sleeping accommodations and foods that require minimal preparation and breakfast to registered guests. A licensee under this section shall not be required to obtain any City of Chicago license, other than the regulated business license to engage in the business of bed-and-breakfast establishment required under this section, to conduct the activities described in this section. Provided, however, that a city license for the retail sale of alcoholic liquor shall be required if alcoholic liquor is sold or otherwise provided by the licensee for use or consumption by registered guests on the licensed premises.

   (c)   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:

      (1)   proof of insurance, as required under subsection (f)(1) of this section;

      (2)   a statement as to whether the applicant or any controlling person has ever been convicted in any jurisdiction of any felony (other than a minor cannabis offense);

      (3)   proof that the applicant has legal title to or leasehold interest in the property on which the establishment is located;

      (4)   a written statement that the establishment shall be the owner's legal primary residence throughout the duration of the license period;

      (5)   proof of adequate off-street parking, as required by the Chicago Zoning Code;

      (6)   a copy of an evacuation diagram, as required under subsection (f)(5)(vi) of this section;

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

   It is a condition of the 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).

   (d)   Departmental duties. 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 of this Code. If, within the 12-month period prior to the date of any inspection required under this section, the bed-and-breakfast establishment was inspected either by the department of buildings or fire 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 deem necessary to maintain health and safety.

   (e)   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 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 of any rental period, occupancy of the establishment by any person owning 25 percent or more of the 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 of this requirement if the owner: (i) is absent from the establishment 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;

      (2)   any applicant or licensee, as applicable, unless, prior to issuance of any initial license, the premises identified in the license application are inspected in accordance with subsection (d)(l) of this section;

      (3)   any applicant or licensee, as applicable, if such applicant or licensee has been convicted under any federal or state law of any felony (other than a minor cannabis offense) that is rationally related to the applicant's fitness or capacity to operate a bed-and-breakfast establishment, unless, upon request of such person, the Commissioner determines that such person has been substantially rehabilitated to warrant the public trust. The burden of proof of substantial rehabilitation shall be on the person seeking such rehabilitation;

      (4)   any applicant or licensee, as applicable, whose license under Title 4 at any location has been revoked for cause within the last two years.

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

      (1)   obtain commercial general liability insurance, with limits of not less than $300,000.00 per occurrence, for bodily injury and property damage arising in any way from the issuance of the license. Each policy of insurance required under this subsection (f)(1) shall (i) be issued by an insurer authorized to insure in the State of Illinois; and (ii) include a provision requiring 30 days' advance notice to the commissioner prior to cancellation or lapse of the policy. The licensee shall maintain the insurance required under this section in full force and effect for the duration of the license period. A single violation of this subsection shall result in suspension or revocation of the license in accordance with Section 4-4-280 of this Code;

      (2)   maintain current guest registration records which contain the following information about each guest: the guest's name, address, signature, room assignment and dates of accommodation. The licensee shall keep such guest registration records on file for three years. Except in cases where a licensee consents to disclosure of the applicable guest registration records or an 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;

      (3)   comply with the minimum standards set forth in Section 4 of the Bed and Breakfast Act, if food for registered guests is prepared, handled or served on the licensed premises;

      (4)   comply with the minimum standards set forth in Section 5 of the Bed and Breakfast Act, if soap, towels or linens are provided to registered guests on the licensed premises;

      (5)   comply with all applicable building and fire prevention provisions of this Code, and with any regulations promulgated thereunder. In addition, the following requirements shall be met:

         (i)   approved smoke alarms equipped with an escape light, or approved smoke alarms and approved unit battery equipment for emergency illumination or any approved System II or System III emergency lighting system, shall be installed in each sleeping room and stairway and in all other locations required by Chapters 14E-7 and 14X-5. In addition to these smoke alarms, each establishment shall provide at least one smoke alarm, which may be either portable or permanently wired, that emits a flashing or stroboscopic light signal or vibration to indicate the presence of smoke designed to serve hearing impaired persons as required by Section 14B-9-907.5.2.3. For purposes of this subsection, an approved smoke alarm shall be the ionization chamber or photoelectric type, either battery powered or 110 volt AC, and shall bear the label of a nationally recognized standards testing laboratory indicating that the smoke alarm has been tested and listed as a single or single and multiple station smoke alarm. Approved unit battery equipment shall meet the requirements of Section 14E-7-700.66;

         (ii)   manual extinguishing equipment shall be provided in each sleeping room or within 15 feet of any sleeping room in accordance with NFPA-10 (Standards for the Installation of Portable Fire Extinguishers);

         (iii)   all combustibles or flammable liquids shall be stored in approved metal containers. No combustible storage shall be allowed in or under stairways;

         (iv)   all trash containers used inside the building shall be metal;

         (v)   no portable heating devices shall be allowed in sleeping rooms.

         (vi)   an evacuation diagram identifying all means of egress from the establishment shall be posted in a conspicuous place on the inside panel of each guest room door;

      (6)   obtain a valid certificate in food handling and sanitation issued by the department of health;

      (7)   conspicuously display the bed-and- breakfast establishment's license number in every advertisement of any type in connection with the rental of the 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;

      (8)   If the bed-and-breakfast establishment is listed on any platform, a licensee under this section shall have the following duties:

         (i)   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 establishment's license number;

         (ii)   not to list on a platform, or permit any person to list on a platform, and 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: (A) bed-and-breakfast establishment that is not properly licensed by the department; or (B) conversion unit, as defined in Section 17-17-0240.6; or (C) coach house, as defined in Section 17-17-0234.6, lawfully established after May 1, 2021;

         (iii)   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 permit any family member to book for future rental, any portion of any bed-and-breakfast establishment identified in such notice that the commissioner has determined is ineligible for listing on any platform. In addition to any other penalty provided by law, any person who violates this subsection (f)(8)(iii) shall be fined $5,000.00 for each offense. Each day that a violation continues shall constitute a separate and distinct offense;

         (iv)   following notice of a final determination of ineligibility under Section 4-13-260(b) or Section 4-13-330(b), remove the ineligible listing from any platform where it is listed. In addition to any other penalty provided by law, any person who fails to comply with this subsection (f)(8)(iv) shall be fined $5,000.00 for each offense. Each day that a violation continues shall constitute a separate and distinct offense; 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:

      (1)   exceed the scope of the license, as set forth in subsection (b) of this section;

      (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;

      (3)   rent any sleeping room in the establishment for 32 or more consecutive days to any person other than members of the owner’s family as defined in the Chicago Zoning Ordinance; provided, however, that this subsection shall not apply if the building in which the bed-and-breakfast establishment is located cannot qualify as a single-room occupancy as defined in Section 17-17-02163 of this Code;

      (4)   use or to permit the use of a hot plate, coffee maker or other cooking device in any sleeping room or bathroom;

      (5)   permit any criminal activity or public nuisance to take place on the licensed premises. If a licensee knows or suspects that any criminal activity or public nuisance is taking place on or immediately adjacent to the licensed premises, the licensee shall immediately notify the Chicago Police Department of such fact and cooperate with the Chicago Police Department in any investigation that may ensue;

      (6)   knowingly make any false or incomplete or misleading statement about such person's criminal background in connection with any license application submitted pursuant to subsection (c) of this section. A single violation of this subsection shall result in license revocation in accordance with Section 4-4-280 of this Code;

      (7)   violate Section 6-10-070 in connection with the listing for rental, or rental of, the bed-and-breakfast establishment or any portion thereof.

   (h)   License revocation – One-year wait for new license. If a license issued under Title 4 to engage in the business of bed-and-breakfast establishment is revoked for any cause, no license shall be granted to any person for the operation of a bed-and-breakfast establishment at the premises described in the revoked license for a period of one year from the date of revocation.

   (i)   Penalty. Except as otherwise provided in this section, and in addition to any other penalty provided by law, three or more violations of this section or any rule 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)   Rules. The Commissioner of Business Affairs and Consumer Protection shall have the authority to promulgate rules necessary or appropriate to implement this section. The Commissioner of Public Health shall have authority to issue rules necessary or appropriate to implement subsection (f)(6) of this section and the minimal standards found in subsections (f)(3) and (f)(4) of this section.

(Added Coun. J. 5-9-12, p. 27485, § 16; Amend Coun. J. 11-8-12, p. 38872, § 75; Amend Coun. J. 10-28-15, p. 11951, Art. VI, § 8; Amend Coun. J. 6-22-16, p. 27712, § 6; Amend Coun. J. 2-22-17, p. 43564, § 1; Amend Coun. J. 2-22-17, p. 43916, Art. VIII, § 7; Amend Coun. J. 9-6-17, p. 55278, Art. VI, § 2; Amend Coun. J. 4-10-19, p. 100029, Art. II, § 23; Amend Coun. J. 10-7-20, p. 21791, Art. VII, § 4; Amend Coun. J. 12-16-20, p. 26066, § 4; Amend Coun. J. 9-9-20, p. 20269, § 3; Amend Coun. J. 2-24-21, p. 27657, Art. III, § 9; Amend Coun. J. 3-24-21, p. 28843, § 1; Amend Coun. J. 6-25-21, p. 31925, Art. IV, § 4; Amend Coun. J. 4-27-22, p. 46382, § 19; Amend Coun. J. 4-19-23, p. 62651, § 7)

ARTICLE XXX. VACATION RENTALS (4-6-300 et seq.)

4-6-300 Vacation rentals.

   (a)   Definitions. As used in this section:

   "Applicant" means a natural person; any partner, if a general partnership; any general partner, if a limited partnership; any principal officer, if a corporation; any managing member, if a limited liability company; any owner of 25% or more of the applicant; or in the case of a cooperative building, a lessee with a proprietary lease of a cooperative in a cooperative building.

   "Board of directors" means the board of directors of a cooperative building.

   "Building containing two to four dwelling units" includes, but is not limited to, a duplex or rowhouse comprising two to four connected dwelling units.

   "Building containing five or more dwelling units" includes, but is not limited to, a rowhouse comprising five or more connected dwelling units.

   "Cooperative" means an individual dwelling unit within a cooperative building.

   "Dwelling unit" has the meaning ascribed to that term in Section 17-17-0248.

   "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 of the 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 any 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 of the 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.

   "Guest" means any person who rents a vacation rental for transient occupancy by such person. The term "guest" does not include members of the owner's household, as that term is defined in Section 17-17-0270.

   "Guest suite" means a dwelling unit that is available for rent or for hire for transient occupancy solely by the invitees or family members of residents of the building which contains the dwelling unit, and is not offered, advertised or made available for rent or hire to members of the general public. As used in this definition, the term "family members" has the meaning ascribed to that term in Section 4-14-010.

   "Homeowners association" means the association of all the unit owners, acting pursuant to bylaws through its duly elected board of managers. For purposes of this definition, "unit owner" means the person or persons whose estate or interest in the unit, individually or collectively, is an aggregate fee simple absolute ownership of the unit, or in the case of a leasehold condominium, the lessee or lessees of a unit whose leasehold of the unit expires simultaneously with the lease.

   "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.

   "Local contact person" means a person authorized as an agent of the owner who: (1) is designated for service of process; (2) is authorized by the owner to take remedial action and respond to any violation of this Code; and (3) maintains a residence or office located in the City.

   "Objectionable condition(s)" 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) of this section.

   "Owner" means any person who owns 25% or more of the interest in a dwelling unit. For purposes of this Section 4-6-300 only, the term "owner" includes a person who is a lessee of a cooperative pursuant to a proprietary lease.

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

   "Primary residence" has the meaning ascribed to that term in Section 4-14-010.

   "Restricted residential zone" has the meaning ascribed to that term in Section 4-17-010.

   "Shared housing unit" has the meaning ascribed to that term in Section 4-14-010.

   "Shared housing unit operator" means any person licensed or required to be licensed under Chapter 4-16 of this Code.

   "Single family home" means any 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.

   "Transient occupancy" has the meaning ascribed to that term in Section 4-6-290.

   "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" does not include: (i) single-room occupancy buildings, as defined in Section 4-6-220; (ii) bed-and-breakfast establishments, as defined in Section 4-6-290; (iii) hotels, 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 monthly basis; (v) corporate housing, as defined in Section 4-14-010; (vi) guest suites, as defined in this subsection (a); (vii) shared housing units, as defined in Section 4-14-010, that are registered or required to be registered with the City pursuant to Chapter 4-14 of this Code; (viii) conversion units, as defined in Section 17-17-0240.6; or (ix) coach houses, as defined in Section 17-17-0234.6, lawfully established after May 1, 2021. For purposes of this definition:

      (1)   "tenant" and "rental agreement" have the meaning ascribed to those terms in Section 5-12-030; and

      (2)   "corporate housing" has the meaning ascribed to that term in Section 4-14-010.

   (b)   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 of a dwelling unit to rent or lease such dwelling unit as a vacation rental shall be accompanied by the following information:

      (1)   a statement as to whether the dwelling unit identified in the license application is a: (i) single family home, and, if so, whether the home is the applicant's primary residence; or (ii) building containing two to four dwelling units, and, if so, whether the dwelling unit is the applicant's primary residence; or (iii) building containing five or more dwelling units;

      (2)   a statement setting forth: (i) the address of the building in which the vacation rental is located; (ii) if the building contains two or more dwelling units, the location of the vacation rental within the building, including, if applicable, the floor of the building on which the vacation rental is located and the vacation rental unit number, unit letter or similar unit identification; (iii) the total number of sleeping rooms within the vacation rental; and (iv) the owner(s) of the vacation rental;

      (3)   the name, address and contact information of a local contact person;

      (4)   an affidavit from the local contact person identified in the license application attesting that such local contact person: (1) is designated for service of process; (2) is authorized by the owner to take remedial action and respond to any violation of this Code; and (3) maintains a residence or office located in the City;

      (5)   an attestation that the vacation rental is a lawfully established dwelling unit within the meaning of Section 17-17-0248, which contains six or fewer sleeping rooms;

      (6)   if the dwelling unit is subject to restrictions imposed by a homeowners association or board of directors, an attestation that the homeowners association or board of directors has not adopted bylaws prohibiting the use of the dwelling unit identified in the license application as a vacation rental or shared housing unit, in any combination;

      (7)   if the dwelling unit is subject to a rental agreement, an attestation that the owner of the building in which the dwelling unit is located has not prohibited use of the dwelling unit as a vacation rental or shared housing unit, in any combination;

      (8)   if the dwelling unit is a single family home, an attestation that such home is the applicant's or licensee's primary residence. Provided, however, that if the owner of the single family home is on active military duty, the affidavit shall include a statement attesting to such fact and to whether the owner has appointed a designated agent or employee to manage, control and reside in the single family home during such owner's absence while on military duty. If the single family home is not the applicant's or licensee's primary residence, an attestation as to whether: (a) the applicable commissioner's adjustment under Section 4-6-300(l) permitting otherwise has been obtained; or (b) the applicant or licensee, as applicable, held a valid vacation rental license, as of June 22, 2016, for the single family home;

      (9)   if the dwelling unit is located in a building containing two to four dwelling units, inclusive, an attestation that such dwelling unit: (i) is the applicant's or licensee's primary residence; and (ii) is the only dwelling unit in the building that is or will be used as a vacation rental or shared housing unit, in any combination. Provided, however, that if the owner of the single family home is on active military duty, the affidavit shall include a statement attesting to such fact and to whether the owner has appointed a designated agent or employee to manage, control and reside in the single family home during such owner's absence while on military duty. If the dwelling unit is not the applicant's or licensee's primary residence or is not the only dwelling unit in the building that is or will be used as a vacation rental or shared housing unit, in any combination, an attestation as to whether: (a) a commissioner's adjustment under Section 4-6-300(l) permitting otherwise has been obtained, or (b) the applicant or licensee, as applicable, held a valid vacation rental license, as of June 22, 2016, for the dwelling unit;

      (10)   if the dwelling unit is located in a building containing five or more dwelling units, an attestation that: (i) no more than six dwelling units in the building, or one quarter of the total dwelling units in the building, whichever is less, are or will be used as vacation rentals or shared housing units, in any combination; and (ii) if the dwelling unit identified in the license application is licensed as a vacation rental, such dwelling unit will not exceed the limit set forth in item (i) of this subsection (b)(10);

      (11)   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 establishment, hotel or shared housing unit operator, or a shared housing unit registration under Chapter 4-14 of this Code, suspended or revoked for cause;

      (12)   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 for a vacation rental, bed-and-breakfast establishment, hotel or shared housing unit operator, or a shared housing unit registration under Chapter 4-14 of this Code, for the dwelling unit identified in the license application suspended or revoked for cause;

      (13)   proof of insurance, as required under subsection (f)(1) of this section; and

      (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 of the 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).

   (c)   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:

      (1)   any applicant or licensee, as applicable, if the dwelling unit identified in the license application is not a lawfully established dwelling unit within the meaning of Section 17-17-0248, which contains six or fewer sleeping rooms;

      (2)   any applicant or licensee, as applicable, if the homeowners association or board of directors of the building in which the dwelling unit is located has adopted bylaws prohibiting use of the dwelling unit as a vacation rental or shared housing unit, in any combination;

      (3)   any applicant or licensee, as applicable, if the dwelling unit identified in the license application is subject to a rental agreement prohibiting the use of the dwelling unit as a vacation rental or shared housing unit, in any combination;

      (4)   any applicant or licensee, as applicable, if the dwelling unit identified in the license application is a single family home, and such home is not the applicant's or licensee's primary residence. Provided, however, that this prohibition shall not apply if: (i) the owner of the single family home is on active military duty and such owner has appointed a designated agent or employee to manage, control or reside in the single family home during such owner's absence while on military duty; or (ii) the applicable commissioner's adjustment under Section 4-6-300(l) permitting otherwise has been obtained; or (iii) the applicant or licensee, as applicable, held a valid vacation rental license, as of June 22, 2016, for the single family home identified in the license application.

      (5)   any applicant or licensee, as applicable, if the dwelling unit identified in the license application is located in a building containing two to four dwelling units, inclusive, and (i) such dwelling unit is not the applicant's or licensee's primary residence; or (ii) more than one unit in the building is currently used as a vacation rental or shared housing unit, in any combination. Provided, however, that the prohibition set forth in item (i) shall not apply if the applicant or licensee is on active military duty and has appointed a designated agent or employee to manage, control and reside in the dwelling unit during such person's absence while on military duty. Provided further, that the prohibitions set forth in items (i) or (ii) shall not apply if: (a) the applicable commissioner's adjustment under Section 4-6-300(l) permitting otherwise has been obtained; or (b) the applicant or licensee, as applicable, held a valid vacation rental license, as of June 22, 2016, for the dwelling unit identified in the license application;

      (6)   any applicant or licensee, as applicable, if the dwelling unit identified in the license application is located in a building containing five or more dwelling units and more than six dwelling units in the building, or one-quarter of the total dwelling units in the building, whichever is less, are or will be used as a vacation rental or shared housing unit, in any combination, if the dwelling unit identified in the license application is licensed as a vacation rental;

      (7)   any applicant or licensee, as applicable, if the dwelling unit identified in the license application is located at an address identified on the prohibited buildings list maintained pursuant to Section 4-13-270(c);

      (8)   any applicant or licensee, as applicable, whose license to engage in the business of vacation rental, bed-and-breakfast establishment, hotel or shared housing unit operator or whose shared housing unit registration under Chapter 4-14 has been suspended or revoked for cause within two years of the date of application or renewal;

      (9)   any applicant or licensee, as applicable, whose license to engage in the business of vacation rental, bed-and-breakfast establishment, hotel or shared housing unit operator for the dwelling unit identified in the license application, or whose shared housing unit registration under Chapter 4-14 for the dwelling unit identified in the license application, has been suspended or revoked for cause;

      (10)   any applicant or licensee, as applicable, who makes any false, misleading or fraudulent statement in the license application, or misrepresents any fact in the license application, or uses any scheme or subterfuge for the purpose of evading any requirement of this section;

      (11)   any applicant or licensee, as applicable, who has violated any applicable federal, state or local law or regulation promulgated thereunder;

      (12)   any applicant or licensee, as applicable, whose vacation rental is located in a restricted residential zone, unless such vacation rental was a lawfully established use within the meaning of Section 4-17-070 as of the effective date of the ordinance establishing such restricted residential zone.

   (d)   Other license requirements.

      (1)   No more than six dwelling units within any building or one-quarter of the total dwelling units in the building, whichever is less, shall be used as vacation rentals or shared housing units, in any combination. Provided, however, that this prohibition shall not apply if a commissioner's adjustment under Section 4-6-300(l) permitting otherwise has been obtained.

      (2)   A separate license shall be required for each dwelling unit used as a vacation rental.

   (e)   Department duties – Inspections.

      (1)   The building commissioner is authorized to mandate an inspection of any vacation rental, at any time and in any manner, including third-party reviews, as provided for in rules promulgated by the building commissioner.

      (2)   If the licensee provides food to his guests in the vacation rental, the Department of Public Health may inspect the vacation rental in accordance with rules promulgated by the Commissioner of Public Health.

   (f)   Legal duties.

      (1)   Insurance – Required. Each licensee engaged in the business of vacation rental shall 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 of the 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 Illinois; (B) name the City of Chicago as additional insured on a primary, noncontributory basis for any liability arising directly or indirectly from the issuance of the license; and (C) be maintained in full force and effect for the duration of the license period.

      (2)   Registration records – Required. Each licensee engaged in the business of vacation rental shall maintain current guest registration records that contain the following information about each guest: (i) name, (ii) address, (iii) signature, and (iv) dates of accommodation.

      (3)   Maintenance of records – Required. Each licensee engaged in the business of vacation rental shall 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 of the 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.

      (4)   License number in advertisements – Required. Each licensee engaged in the business of vacation rental shall print or cause the licensee's license number to be printed, in legible type: (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 of this 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 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 clean and sanitize the vacation rental and all dishes, utensils, pots, pans and other cooking utensils between guests and to dispose of all food, beverages and alcohol left by the previous guests.

      (7)   Posting – License number – Local contact person – Required. Each licensee engaged in the business of vacation rental shall post in a conspicuous place near the entrance of the vacation rental, the vacation rental license and the name and telephone number of the local contact person.

      (8)   Posting – Evacuation diagram – Required. Each licensee engaged in the business of vacation rental shall post in a conspicuous place on the inside entrance door of each vacation rental an evacuation diagram identifying all means of egress from the vacation rental and the building in which the vacation rental is located.

      (9)   Food handling safety – Required. If the licensee provides food to guests, such licensee shall comply with all applicable food handling and licensing requirements of this Code and Department of Public Health rules.

      (10)   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 immediately notify and cooperate with the Chicago police department.

      (11)   Smoke alarms and carbon monoxide detectors – Required. Each licensee engaged in the business of vacation rental shall ensure that the vacation rental is in compliance with applicable laws regarding the installation and maintenance of functioning smoke alarms and carbon monoxide detectors.

      (12)   Compliance with tax laws – Required. Each licensee 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 Hotel Accommodation Tax Ordinance, Chapter 3-24 of this Code (where applicable).

      (13)   Disclosure and acknowledgment – Required.

         (1)   A building or dwelling unit owner, or agent thereof, shall not execute an oral or written lease, contract to lease, or accept any money or other valuable consideration in an application for an oral or written lease for a dwelling unit without disclosing to the tenant or applicant in written form if the building or dwelling unit owner knows that:

            (i)   The dwelling unit being leased is licensed by the City of Chicago as a vacation rental;

            (ii)   The dwelling unit being leased is ineligible under Section 4-13-260(a) to be rented as a shared housing unit or vacation rental.

         (2)   The tenant or applicant shall be required to execute a receipt acknowledging that the written disclosures required under paragraph (1)(i) and (1)(ii) of this subsection (f)(13) have been made.

         (3)   All owners of residential dwelling units and buildings (and their agents) shall, at the time of any offering for sale of said residential dwelling units and buildings, or in the case where improved real property is held under trust the sale of real property which forms the corpus of the trust or the transfer of the beneficial interest in such property, including contract sale, be required to disclose to the purchaser or prospective purchaser if the owner knows that:

            (i)   The dwelling unit being sold is licensed by the City of Chicago as a vacation rental;

            (ii)   The dwelling unit being sold or the building is ineligible under Section 4-13-260(a) to be a shared housing unit or vacation rental.

         (4)   The purchaser or prospective purchaser shall be required to execute a receipt acknowledging that the written disclosures required under paragraph (1)(i) and (1)(ii) of this subsection (f)(13) have been made.

   (g)   Prohibited acts.

      (1)   Rental under 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, for any period of 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 vacation rental, or any portion thereof, be rented by the hour or for any period of less than 10 consecutive hours;

      (2)   Multiple rentals within 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 48-hour period, as measured from the commencement of one rental to the commencement of the 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;

      (3)   Advertising 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 less than the rental period authorized under subsections (g)(l) and (g)(2) of this section;

      (4)   Nuisances – Illegal activity, objectionable conditions, egregious condition – Prohibited.

         (i)   Illegal activity and objectionable conditions. It shall be unlawful for any licensee engaged in the business of vacation rental to permit any nuisance within the meaning of Section 4-13-260(a)(1) to take place within or having a nexus to the vacation rental. In addition to any other penalty provided by law, any person who violates this subsection (g)(4)(i) 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;

         (ii)   Egregious condition. It shall be unlawful for any licensee to engage in the business of vacation rental to permit any egregious condition to take place within or having a nexus to the vacation rental. In addition to any other penalty provided by law, any person who violates this subsection (g)(4)(ii) 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;

      (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 (iii) the actual allowed capacity of the dwelling unit based on the applicable provisions of the 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;

      (6)   Service of alcohol – Prohibited. It shall be unlawful for any licensee engaged in the business of vacation rental to serve or otherwise provide alcohol to any guest or invitee of a guest;

      (7)   Multiple or overlapping bookings – Prohibited. It shall be unlawful for any licensee engaged in the business of vacation rental to rent the vacation rental in multiple transactions for the same or overlapping time periods;

      (8)   Restricted residential zones – Prohibited activity. Except as otherwise provided in Section 4-17-070, it shall be unlawful for any person to advertise for rent, list on a platform, rent, or book for future rental, or to permit any other person to advertise for rent, list on a platform, rent, or book for future rental, any vacation rental that is located within a restricted residential zone. In addition to any other penalty provided by law, any person who violates this subsection (g)(8) shall be subject to a fine of not less than $1,500.00 nor more than $5.000.00 for each offense. Each day that a violation continues shall constitute a separate and distinct offense.

   (h)   Vacation rentals listed on a platform. If a vacation rental is listed on any platform, a licensee under this section shall have the following duties:

      (1)   Listing without license number – Prohibited. Such licensee shall not list, or permit any person to list, on such platform any vacation rental unless the listing includes the vacation rental's license number;

      (2)   Rental without license – Rental of conversion units and coach houses – Prohibited. Such licensee shall not list on a platform, or permit any person to list on a platform, or rent, or permit any person to rent, or book for future rental, or permit any person to book for future rental, any: (A) vacation rental that is not properly licensed by the City; or (B) conversion unit, as defined in Section 17-17-0240.6; or (C) coach house, as defined in Section 17-17-0234.6, lawfully established after May 1, 2021;

      (3)   Descriptive information on listing – Required. Such licensee shall include in any listing on such platform(s), the following information about the vacation rental: (A) the licensee's cancellation and check-in and check-out policies; and (B) a statement on: (i) whether the vacation rental is wheelchair or ADA accessible; (ii) whether the vacation rental has any parking availability or restrictions; and (iii) the availability of, or restrictions on, the use of any recreational facilities or other amenities applicable to guests; and (C) a description of the vacation rental, including the number of sleeping rooms and bathrooms; and (D) the applicable license number;

      (4)   Rental of ineligible units prohibited – Removal from platform required. If, following a final determination of ineligibility under Section 4-13-260(b) or Section 4-13-330(b), such licensee is notified in writing by the commissioner that a vacation rental is ineligible to be listed on any platform, the licensee shall: (i) remove the ineligible listing from any platform where it is listed; and (ii) not rent, or allow any family member to rent, the vacation rental identified in such notice. In addition to any other penalty provided by law, any person who fails to comply with this subsection (h)(4) shall be fined not less than $5,000.00 for each offense. Each day that a violation continues shall constitute a separate and distinct offense;

      (5)   Lawfully established dwelling unit with six or fewer sleeping rooms – Required. Such licensee shall not list on any platform or rent any vacation rental that is not a lawfully established dwelling unit within the meaning of Section 17-17-0248, which contains six or fewer sleeping rooms;

      (6)   Violation of condominium or cooperative building restrictions – Prohibited. Such licensee shall not list on any platform or rent any vacation rental that is subject to restrictions imposed by a homeowners association or board of directors, unless the homeowners association or board of directors has approved the dwelling unit for use as a vacation rental or shared housing unit;

      (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;

      (8)   Listing and rental of single family homes that are not the licensee's primary residence – Restricted. Such licensee shall not list on any platform or rent any vacation rental that is a single family home, unless such single family home is the licensee's primary residence. Provided, however, that this prohibition shall not apply if: (i) the licensee is on active military duty and such licensee 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 4-6-300(l) permitting otherwise has been obtained; or (iii) the applicant or licensee, as applicable, held a valid vacation rental license, as of June 22, 2016, for the single family home;

      (9)   Listing and rental in buildings with up to four dwelling units – Restricted. Such licensee shall not list on any platform or rent any vacation rental that is located in a building containing two to four dwelling units, inclusive, unless such dwelling unit: (i) is the licensee's primary residence; and (ii) is the only dwelling unit in the building that is or will be used as a vacation rental or shared housing unit, in any combination. Provided, however, that the prohibition set forth in item (1) shall not apply if the licensee is on active military duty and has appointed a designated agent or employee to manage, control and reside in the dwelling unit during such licensee's absence. Provided further, that the prohibitions set forth in item (i) or (ii) shall not apply if: (a) the applicable commissioner's adjustment under Section 4-6-300(l) permitting otherwise has been obtained; or (b) the licensee held a valid vacation rental license, as of June 22, 2016, for the dwelling unit identified in the license application;

      (10)   Listing and rental in buildings with five or more dwelling units – Prohibited. Such licensee shall not list on any platform or rent any vacation rental that is located in a building containing five or more dwelling units, when more than six dwelling units in the building, or one-quarter of the total dwelling units in the building, whichever is less, are or will be used as a vacation rental or shared housing unit, in any combination, if the dwelling unit identified in the license application is licensed as a vacation rental;

      (11)   [Reserved.]

      (12)   Misrepresenting material facts – Prohibited. Such licensee shall not misrepresent on any listing any material fact relating to the vacation rental.

      (13)   Public accommodation – Discriminatory practices prohibited. Each vacation rental shall be deemed to be a public accommodation within the meaning of Section 6-10-070. It shall be unlawful for any person that owns, leases, rents, operates, manages or in any manner controls such public accommodation to withhold, deny, curtail, limit or discriminate concerning the full use of such public accommodation by any individual because of the individual's race, color, sex, gender identity, age, religion, disability, national origin, ancestry, sexual orientation, marital status, parental status, military discharge status or source of income in violation of Section 6-10-070.

   (i)   Operating without a license – Penalty. Any person who operates the business of vacation rental without first having obtained the required license for such business shall be subject to a fine of not less than $2,500.00 nor more than $3,000.00 for each offense. Each day that a violation continues shall constitute a separate and distinct offense. Failure to comply with any requirement set forth in subsection (f)(4) of this section shall create a rebuttable presumption that the business of vacation rental is being operated without a license.

   (j)   License – Suspension or revocation.

      (1)   Immediate suspension or revocation – Post-deprivation hearing – Authorized when. If the commissioner has good cause to believe that: (1) continued rental of a vacation rental causes an imminent threat to public health, safety or welfare, and (2) grounds exist for revocation or suspension of the licensee's vacation rental license, including, but not limited to, any of the grounds set forth in items (i) through (v), inclusive, of subsection (j)(2) of this section, the commissioner may, upon issuance of a 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 to exceed ten calendar days; provided, however, that the licensee shall be afforded an opportunity to be heard during such period. If the licensee fails to request a hearing within the 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 – Pre- 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

         (ii)   Situs of two or more nuisance conditions. When, in the determination of the commissioner, the rental of the vacation rental creates a nuisance because at least two separate incidents involving illegal activity or objectionable conditions 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 property. For purposes of determining whether any nuisance occurred during a 12-month period, such illegal activity or objectionable conditions shall be limited to acts of the guests or invitees of the guests, or to acts otherwise involving circumstances having a nexus to the operation of the vacation rental while rented to a guest. In a proceeding to suspend or revoke the license of a vacation rental that is or creates a nuisance under this subsection (j)(2)(ii), 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 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 activity or objectionable conditions occurred. If, during any 12-month period, two or more separate incidents of illegal activity or objectionable conditions, in any 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 of this subsection (j)(2)(ii); or

         (iii)   Scofflaw. When a vacation rental is located in a priority building with serious and chronic code violations listed pursuant to Section 2-92-416(d) or a building owned by a building code scofflaw and disclosed and published pursuant to Section 2-92-416(f); or

         (iv)   Threat to public health, safety or welfare. When the commissioner determines that the continued rental of a vacation rental poses a threat to the public health, safety or welfare; or

         (v)   Unlawful discrimination. When, in connection with the listing for rental or rental of a vacation rental, the Commissioner or the Chicago Commission on Human Relations has determined that a violation of Section 6-10-070 or Section 4-6-300(h)(13), as applicable, has occurred.

   (k)   Penalty.

      (1)   Fines and other applicable penalties. Except as otherwise provided in this section, and in addition to any other penalty provided by law, any person who violates this section or any rule promulgated thereunder shall be subject to a fine of not less than $1,500.00 nor more than $3,000.00 for each offense. Each day that such violation exists shall constitute a separate and distinct offense.

      (2)   Exceeding rental restrictions. If the rental restriction applicable to buildings containing more than five dwelling units imposed under Section 4-6-300(d)(1) is exceeded in any building, all vacation rental licenses and shared housing registrations for dwelling units located within such building are subject to revocation under this chapter.

      (3)   Injunctive relief. In addition to any fine or penalty imposed by this section, the corporation counsel may seek an injunction or other equitable relief in a court of competent jurisdiction to stop any violation of this section.

      (4)   Duration of revocation. If a vacation rental license under this section is revoked, such revocation shall remain in effect for a period of at least two years from the date of revocation and thereafter until such time that a new owner or tenant, as applicable, other than a family member of the person whose license was revoked, occupies the dwelling unit.

   (l)   Vacation rentals – Commissioner's adjustments – When authorized.

      (1)   The commissioner is authorized to grant an adjustment to allow:

         (a)   issuance of a license to a vacation rental located in:

            (i)   a single family home that is not the applicant's primary residence; or

            (ii)   a building containing two to four dwelling units, inclusive, where the dwelling unit is not the applicant's primary residence;

         (b)   in a building containing two to four dwelling units, inclusive, an increase in the number of dwelling units that may be used as vacation rentals.

      Such an adjustment may be approved only if, based on a review of relevant factors, the commissioner concludes that such an adjustment would eliminate an extraordinary burden on the applicant in light of unique or unusual circumstances and would not detrimentally impact the health, safety, or general welfare of surrounding property owners or the general public.

      Factors which the commissioner may consider with regard to an application for a commissioner's adjustment include, by way of example and not limitation: (i) the relevant geography, (ii) the relevant population density, (iii) the degree to which the sought adjustment varies from the prevailing limitations, (iv) the size of the relevant building and the number of units contemplated for the proposed use, (v) the legal nature and history of the applicant, (vi) the measures the applicant proposes to implement to maintain quiet and security in conjunction with the use, (vii) any extraordinary economic hardship to the applicant, due to special circumstances, that would result from a denial, (viii) any police reports or other records of illegal activity or municipal code violations at the location, and (ix) whether the affected neighbors support or object to the proposed use.

      The grant of an adjustment shall not exempt the applicant from any application requirement associated with issuance of a vacation rental license.

      (2)   An adjustment under subsection (l)(1)(a) may be requested by the applicant for the vacation rental license. An adjustment under subsection (l)(1)(b) may be requested by the owner, homeowners association or board of directors of the building.

      (3)   A person seeking an adjustment shall make a written submission to the commissioner, presenting all factors which the applicant believes to be relevant to whether an adjustment is appropriate. The applicant shall provide a copy of the written submission to the adjoining neighbors. The commissioner shall review the materials and make a written determination within 60 days, which shall set forth the factors used in arriving at the determination. During the 60-day review period, the commissioner shall notify the affected alderman and solicit a recommendation based on the alderman's analysis of relevant factors, and may seek additional information or supplementary proof from the applicant, and may also solicit information from the community.

      If the commissioner denies the application for an adjustment, the applicant, within fourteen days of receiving the denial, may request a hearing from the commissioner. Upon receiving such a request, the commissioner shall schedule and conduct a hearing expeditiously. At the hearing the commissioner may receive written submissions, witness testimony, argument and documents regarding the application. The commissioner shall, within thirty days of the conclusion of the hearing, render a decision, which shall constitute a final determination for purposes of judicial review.

      (4)   If the commissioner grants the application for an adjustment, those factors that were deemed by the commissioner to be relevant to the determination shall be included in a plan of conduct. If the vacation rental license is granted, the plan of conduct shall be deemed a part of the license, and compliance with the plan of conduct shall be a necessary condition to the continued validity of the license. Failure to comply with one or more elements of the plan of conduct shall subject the licensee to suspension or revocation of the vacation rental license.

      (5)   Throughout the commissioner's adjustment consideration process, the applicant shall bear the burden of persuasion to justify the sought adjustment.

   (m)   Limit calculation. The limits on the number of vacation rentals in a building shall be calculated as maximum limits using the method in Section 17-1-0605-B.

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

(Added Coun. J. 5-9-12, p. 27485, § 16; Amend Coun. J. 11-8-12, p. 38872, § 76; Amend Coun. J. 10-28-15, p. 11951, Art. VI, § 9; Amend Coun. J. 6-22-16, p. 27712, § 7; Amend Coun. J. 2-22-17, p. 43564, § 2; Amend Coun. J. 9-6-17, p. 55278, Art. VI, § 3; Amend Coun. J. 4-10-19, p. 100029, Art. II, § 24; Amend Coun. J. 5-20-20, p. 17016, § 1; Amend Coun. J. 9-9-20, p. 20269, § 4; Amend Coun. J. 12-16-20, p. 26066, § 5; Amend Coun. J. 2-24-21, p. 27657, Art. III, § 10; Amend Coun. J. 4-21-21, p. 29948, § 5; Amend Coun. J. 4-27-22, p. 46382, § 20)