(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)