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)

4-13-220 Legal duties.

   (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)

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

   Prior to advertising for rent, listing on a platform, renting, or booking for future rental any shared housing unit or portion thereof, the Provider shall either: (i) successfully register such short term residential rental with the Department if so required pursuant to Section 4-14-020, as evidenced by the assignment of a unique registration number to such unit by the Department; or (ii) ensure the short term residential rental is licensed pursuant to Sections 4-6-180, 4-6-290, or 4-6-300, as applicable.

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

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

   It shall be unlawful for any licensee under this Article II to process or complete any booking service transaction for any: (1) shared housing unit or portion thereof, unless such unit has first been registered with the Department within the meaning of Section 4-13-230(a), or (2) vacation rental, bed-and-breakfast establishment or hotel, or any portion thereof, unless such establishment is properly licensed under Chapter 4-6 of this Code.

(Added Coun. J. 9-9-20, p. 20269, § 12; Amend Coun. J. 3-24-21, p. 28843, § 1; Amend Coun. J. 11-7-22, p. 54948, Art. V, § 3)

4-13-240 Data and reports – Required.

   (a)   Departmental report – Required. Each licensee under this Article II shall submit to the Department, every two months, a report, in a form approved by the Commissioner, that contains the following information about each of the short term residential rentals listed through the intermediary's platform during the applicable reporting period: (i) the total number of short term residential rentals listed on the platform during the applicable reporting period; (ii) the license or registration number of each short term residential rental listed on the platform during the applicable reporting period; (iii) the address, including the unit number if applicable, of each short term residential rental listed on the platform during the applicable reporting period; (iv) the exact number of nights that each short term residential rental listed on the platform was rented to guests during the applicable reporting period; (v) the amount of rent paid by guests in connection with the rental of each short term residential rental listed on the platform during the applicable reporting period; (vi) the total amount of tax paid by the intermediary to the city under Section 3-24-030 in connection with the rental of each short term residential rental listed on the platform during the applicable reporting period; and (vii) a cumulative tally to date of the number of nights that each short term residential rental listed on the platform is booked for rental during the remaining months of the applicable calendar year.

   (b)   Additional departmental reports – Required when. Upon request by the Commissioner, each licensee under this Article II shall submit to the Department, in a form and manner prescribed by the Commissioner, data identifying the total number of short term residential rentals that have been rented for more than 30 nights, or for any other period of nights during the current, previous, or subsequent calendar year, that the Commissioner reasonably determines is necessary to assist the Department in enforcing this Chapter 4-13 or Chapters 4-14 or 4-16 or Sections 4-6-180, 4-6-290 and 4-6-300 of this Code.

   (c)   Aldermanic report – Required. Each licensee under this Article II shall have a duty to submit to each alderman and to the Department, every two months, a report, in a form approved by the Commissioner, that contains, on a ward specific basis for the respective ward, the information set forth in items (i) through (vii) of subsection (a) of this section about each of the short term residential rentals listed on the intermediary's platform during the applicable reporting period.

   (d)   Maintaining books and records – Required. Each licensee under this Article II shall keep accurate books and records and maintain such books and records for a period of three years.

   (e)   Additional reports and data. Each licensee under this Article II shall provide additional reports and data to the Department as provided by the Commissioner in rules.

   (f)   Form of data and report submission. The information contained in the reports required under subsections (a), (b) and (c) of this section may be submitted in an anonymized form that removes personally identifiable information about the Provider. Provided, however, that if the information required under subsections (a), (b) or (c) has been submitted in an anonymized form and the Commissioner requires de-anonymized information about a Provider or short term residential rental in connection with an audit conducted by the Department to determine compliance with this Chapter 4-13 or Chapters 4-14 or 4-16 of this Code, or the Commissioner reasonably determines that a Provider or short term residential rental is: (i) the scene of a crime or other illegal act under investigation by any local, State or Federal law enforcement agency, or (ii) operating in violation of this Chapter or Chapters 4-14 or 4-16 of this Code or any other applicable provision of this Code, including, but not limited to, the Chicago Zoning Ordinance, the Commissioner may issue an order, in the form of a subpoena, directing the intermediary to provide the information in a de-anonymized form, including, but not limited to, the name of the Provider, the address of the short term residential rental, the details of the unit's rentals, and any information within the control or possession of the intermediary regarding the guests of the short term residential rental or the rental of the unit. The intermediary shall, within 21 calendar days of the date on which such order is issued, either provide the de-anonymized information or file a legal objection to such order in writing with the Commissioner. If the intermediary or shared housing host files a legal objection, the Commissioner shall provide a hearing on the objection within 10 business days, as provided by rule. The Commissioner's determination shall be final and may be appealed in the manner provided by law. Nothing in this subsection shall be considered a limitation or restriction on the Commissioner's powers and duties under Chapter 2-25.

(Added Coun. J. 6-22-16, p. 27712, § 8; Amend Coun. J. 9-9-20, p. 20269, § 13; Amend Coun. J. 3-24-21, p. 28843, § 1; Amend Coun. J. 11-7-22, p. 54948, Art. V, § 3)

4-13-250 Reserved.

Editor's note – Coun. J. 9-9-20, p. 20269, § 14 (as amended by Coun. J. 3-24-21, p. 28843, § 1), repealed § 4-13-250, which pertained to prohibited acts.