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.)
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.
"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.)
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)
(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)
(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;
(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)
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)
(a) Insurance for intermediary – Required. Each licensee under this Article II shall obtain commercial general liability insurance, with limits of not less than one million dollars ($1,000,000.00) per occurrence, for bodily injury, personal injury (if such coverage is commercially available to the licensee), and property damage arising in any way from the issuance of the intermediary license or activities conducted pursuant to that license. Each policy of insurance shall: (i) be issued by an insurer authorized to insure in the State 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 issuance of the license; (iii) be maintained in full force and effect for the duration of the license period; and (iv) include a provision requiring 30 calendar days' advance notice to the Commissioner prior to cancellation or lapse of the policy.
(b) Insurance for guests – Required. Each licensee under this Article II shall provide commercial general liability insurance, with limits of not less than one million dollars ($1,000,000.00) per occurrence for bodily injury, personal injury (if such coverage is commercially available to the licensee), and property damage arising in any way from activities conducted pursuant to a registration or issuance of a license for a short term residential rental. Such insurance shall cover any bodily injury, personal injury (if such coverage is commercially available to the licensee), or property damage sustained by any guest arising in any way from activities related to the rental of the short term residential rental. Each policy of insurance provided shall have policy limits, as set forth in this subsection (b), that apply separately for each short term residential rental, and if the policy has an aggregate limit, the aggregate limit shall apply separately to each short term residential rental. Each policy of insurance shall be: (i) issued by an insurer authorized to insure in the State of Illinois; and (ii) maintained in full force and effect for as long as the short term residential rental is registered or licensed, as applicable. The licensee shall provide advance notice to the Commissioner of the cancellation of, or lapse in, the policy as soon as is reasonably practicable after the licensee becomes aware of such cancellation or lapse.
(c) Identification of local contact person – Required. Each licensee under this Article II shall include on its platform the name of, and contact information for, the licensee's local contact person.
(d) Compliance with tax laws – Required. Each licensee under this Article II 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).
(e) Compliance with rental, homeowners association and cooperative building agreements – Required. Each licensee under this Article II shall post a notice on its platform informing Providers that the Provider must comply with all existing applicable rental agreements or homeowners association or cooperative building rules or restrictions regarding rental of the short term residential rental for transient occupancy.
(f) Descriptive listing information – Required. Each licensee under this Article II shall post a notice on its platform informing Providers that every listing on the intermediary's platform must include the information required under Section 4-14-040(a)(1) through (a)(4), inclusive.
(g) Process to remove listings from a platform – Required. Each licensee under this Article II shall establish a process, to be approved by the Commissioner, that enables a Provider to remove from the intermediary's platform any or all of the provider's listings on such platform.
(h) Process to address quality of life concerns due to units on ineligible list – Required. Each licensee under this Article II shall establish and comply with a process, to be approved by the Commissioner, for mitigating the impact on quality of life of any short term residential rental determined by the Department to be ineligible for listing on a platform under Section 4-13-260.
(i) Compliance with written plan – Required. Each licensee under this Article II shall comply with any written plan approved by the Commissioner pursuant to Section 4-13-210(a)(4).
(j) Posting license and registration numbers on listings – Notification to providers – Required.
(1) Each licensee under this Article II shall advise Providers, by posting a notice in a conspicuous place on its platform or otherwise, that such Providers are required under the Code to: (i) obtain a valid registration or license number, as applicable, for the short term residential rental prior to advertising it for rent, listing it on the platform, renting it, or booking it for future rental; and (ii) post the applicable registration or license number on the platform as part of the provider's listing.
(2) Each licensee under this Article II shall establish a process, to be approved by the Commissioner, to ensure that Providers have the ability to include the registration or license number, as applicable, of any short term residential rental listed by such provider on the licensee's platform.
(k) Approved means of data transmission – Required. Each licensee under this Article II shall use an approved application program interface ("API") or other approved electronic means required by the Department to transmit data and other communications to the Department and to receive data and other communications from the Department.
(Added Coun. J. 6-22-16, p. 27712, § 8; Amend Coun. J. 9-9-20, p. 20269, § 10; Amend Coun. J. 3-24-21, p. 28843, § 1; Amend Coun. J. 11-7-22, p. 54948, Art. V, § 3)
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