(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
(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
(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)