CHAPTER 4-13
SHORT TERM RESIDENTIAL RENTAL INTERMEDIARIES AND ADVERTISING PLATFORMS

Article I. Definitions

4-13-100   Definitions.

Article II. Short Term Residential Rental Intermediary

4-13-200   License – Required.

4-13-205   Annual license – Fee – Required.

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

4-13-215   Attestation – Acknowledgment – Required.

4-13-220   Legal duties.

4-13-230   Shared housing units – Registration of unit by Provider with Department required.

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

4-13-240   Data and reports – Required.

4-13-250   Reserved.

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

4-13-270   Departmental duties.

Article III. Reserved

4-13-300   Reserved.

4-13-305   Reserved.

4-13-310   Reserved.

4-13-320   Reserved.

4-13-325   Reserved.

4-13-330   Reserved.

4-13-340   Reserved.

Article IV. Enforcement

4-13-400   Rules.

4-13-410   Penalty for violation.

ARTICLE I. DEFINITIONS (4-13-100 et seq.)

4-13-100 Definitions.

   As used in this chapter:

   "Bed-and-breakfast establishment" has the meaning ascribed to that term in Section 4-6-290.

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

   "Coach house" has the meaning ascribed to that term in Section 17-17-0234.6.

   "Code" means the Municipal Code of Chicago.

   "Commissioner" means the Commissioner of Business Affairs and Consumer Protection or the Commissioner's designee.

   "Conversion unit" has the meaning ascribed to that term in Section 17-17-0240.6.

   "Cooperative building" means a multiple-dwelling complex owned by a cooperative corporation, stock in which affords the owner thereof the right to possess or occupy a particular cooperative allocated to that stock within the complex. This right of possession or occupancy is granted through a proprietary lease or similar arrangement, and, unlike the owner of a condominium, the owner of the cooperative stock does not hold legal title to his or her individual cooperative. As used in this definition, "cooperative" means an individual dwelling unit within a cooperative building.

   "Department" means the Department of Business Affairs and Consumer Protection.

   "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.

   "Guest" has the meaning ascribed to that term in Sections 4-6-290, 4-6-300, or 4-14-010, as applicable.

   "Homeowners association" has the meaning ascribed to that term in Section 4-6-300(a).

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

   "Platform" means an internet-enabled application, mobile application, or any other digital platform used to connect guests with a Provider.

   "Provider" means any person who offers for rent a short term residential rental.

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

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

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

   "Short term residential rental" means a dwelling unit located within the City that is rented as, or held out as being used as, a shared housing unit, bed-and-breakfast establishment, vacation rental, or dwelling units that require a license or registration under this Code to engage in the business of short term residential rental.

   "Short term residential rental intermediary" or "intermediary" means any person who, for compensation or a fee uses a platform to connect guests with a short term residential rental provider for the purpose of renting a short term residential rental.

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

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

(Added Coun. J. 6-22-16, p. 27712, § 8; Amend Coun. J. 5-20-20, p. 17016, § 2; Amend Coun. J. 9-9-20, p. 20269, § 5; Amend Coun. J. 12-16-20, p. 26066, § 6; Amend Coun. J. 3-24-21, p. 28843, § 1; Amend Coun. J. 11-7-22, p. 54948, Art. V, § 3)

ARTICLE II. SHORT TERM RESIDENTIAL RENTAL INTERMEDIARY (4-13-200 et seq.)

4-13-200 License – Required.

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

(Added Coun. J. 6-22-16, p. 27712, § 8; Amend Coun. J. 9-9-20, p. 20269, § 6; Amend Coun. J. 3-24-21, p. 28843, § 1; Amend Coun. J. 11-7-22, p. 54948, Art. V, § 3)

4-13-205 Annual license – Fee – Required.

   (a)   The intermediary license required under this Article II shall be renewed annually.

   (b)   The intermediary license fee set forth in Section 4-5-010 shall be payable annually.

(Added Coun. J. 6-22-16, p. 27712, § 8; Amend Coun. J. 11-9-16, p. 36266, § 4; Amend Coun. J. 9-9-20, p. 20269, § 7; Amend Coun. J. 3-24-21, p. 28843, § 1)

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

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

      (1)   the name, address and contact information of the intermediary's local contact person;

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

      (3)   proof of all required insurance, as set forth in Sections 4-13-220(a) and 4-13-220(b);

      (4)   a written plan, subject to the approval of the Commissioner, describing the applicant's procedures, processes and policies for ensuring that the applicant and any Provider utilizing the platform are, and will remain, in compliance with this Chapter 4-13;

      (5)   a quality of life plan, subject to the approval of the Commissioner, meeting the requirements of Section 4-13-220(h); and

      (6)   any other information that the Commissioner may reasonably require in connection with the issuance or renewal of the license.

   (b)   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).

(Added Coun. J. 6-22-16, p. 27712, § 8; Amend Coun. J. 9-9-20, p. 20269, § 8; Amend Coun. J. 3-24-21, p. 28843, § 1; Amend Coun. J. 11-7-22, p. 54948, Art. V, § 3)

4-13-215 Attestation – Acknowledgment – Required.

   The intermediary shall be required to make available in a conspicuous place on its platform an electronic copy of a summary of the following requirements: (1) the provider's need to obtain from the Department a valid registration or license number, as applicable, for the short term residential rental prior to advertising it for rent, listing it on the platform, renting it or booking it for future rental; (2) the requirement that a shared housing host must be a natural person; (3) the eligibility requirements for registration or licensure with the Department of a short term residential rental, as set forth in Chapters 4-13, 4-14, and 4-16 and Sections 4-6-180, 4-6-290 and 4-6-300 of this Code, when applicable; and (4) the potential penalties for violation of this chapter. As a condition of listing a short term residential rental on the platform, the intermediary shall require the Provider to: (1) attest that the Provider has reviewed the summary of the requirements of this ordinance, and (2) acknowledge that the listing, rental and operation of short term residential rentals in the City are subject to those requirements.

(Added Coun. J. 6-22-16, p. 27712, § 8; Amend Coun. J. 2-22-17, p. 43564, § 3; Amend Coun. J. 9-9-20, p. 20269, § 9; Amend Coun. J. 3-24-21, p. 28843, § 1; Amend Coun. J. 11-7-22, p. 54948, Art. V, § 3)