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.

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

   (a)   Conditions of ineligibility for listing. A short term residential rental shall be ineligible for registration with the Department as a shared housing unit or for licensure as a bed-and-breakfast establishment or vacation rental, and shall not be listed by a provider on a platform, under the following conditions:

      (1)   Nuisance. When, in the determination of the Commissioner, the rental of the short term residential rental creates a nuisance because at least two separate incidents involving illegal activity or objectionable conditions, as those terms are defined in Section 4-14-010, occurred, in any combination, during a 12-month period: (i) in any short term residential rental operated by the Provider; or (ii) in or on the premises in which the short term residential rental is located; or (iii) in the short term residential rental's parking facility; or (iv) 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 short term residential rental while rented to a guest; or

      (2)   Egregious condition. When the short term residential rental is the situs of an egregious condition; or

      (3)   Scofflaw. When a short term residential rental is located in a priority building with serious and chronic code violations listed pursuant to Section 2-92-416(d) or a building owned by a building code scofflaw and disclosed and published pursuant to Section 2-92-416(f); or

      (4)   Uncorrected code violations. When a short term residential rental is found to be in violation of any applicable licensing or registration chapter of this Code, and the condition that gave rise to the violation has not been corrected; or

      (5)   Suspension or revocation. When any license or registration of any Provider is suspended or revoked under this Code; or

      (6)   Zoning violation. When the area in which the short term residential rental is located is not properly zoned for the applicable use. Provided, however, that any dwelling unit properly licensed as a vacation rental as of June 22, 2016 shall be deemed to be in compliance with the applicable zoning requirements of this Code that applied and were in existence at the time such vacation rental license was approved; or

      (7)   Rental caps exceeded. If the short term residential rental is a shared housing unit, when any unlawful act set forth in Section 4-14-060 occurs; or

      (8)   Shared housing host is not a natural person. If the short term residential rental is a shared housing unit, when the registered shared housing host is not a natural person; or

      (9)   Building owner prohibits all vacation rentals or shared housing units from operating in such building. If the building contains five or more dwelling units, when the owner of the building or an individual authorized by the owner of the building notifies the Commissioner, in a manner prescribed by rule, that no short term residential rentals are permitted to operate anywhere in such building. Provided, however, that if the building is a cooperative building, condominium building or building governed by a homeowners' association, the requirement that such building must contain five or more dwelling units shall not apply for purpose of this subsection (a)(9); or

      (10)   Suspension or revocation of related licenses. If the short term residential rental is a shared housing unit, when the shared housing host has had a vacation rental license, bed-and-breakfast establishment license, hotel license or shared housing unit operator license, or a shared housing unit registration under this chapter, suspended or revoked for cause for the shared housing unit identified in the registration application or for any other shared housing unit registered with the city; or

      (11)   Short term residential rental is located in a restricted residential zone and was not a legally established use as of the effective date of the ordinance establishing such zone. If the short term residential rental is a shared housing unit or vacation rental, when: (i) such short term residential rental is located in a restricted residential zone, and (ii) such shared housing unit or vacation rental, as applicable, was not a legally established use within the meaning of Section 4-17-070 as of the effective date of the ordinance establishing such restricted residential zone; or

      (12)   Conversion unit. When the short term residential rental is a conversion unit; or

      (13)   Coach house. When the short term residential rental is a coach house lawfully established after May 1, 2021.

   (b)   Ineligibility for listing on a platform – Notification process. Upon determining that a short term residential rental is ineligible under this subsection to be listed on a platform, the Commissioner shall notify the Provider and intermediary, in writing, of such fact and of the basis for the determination of ineligibility. Such notice shall include a statement informing the Provider and the intermediary that such Provider may, within 10 calendar days of the date on which the notice was sent, request, in a form and manner prescribed by the Commissioner in rules, a hearing before the Commissioner to contest the determination of ineligibility for listing. The notice shall also advise the Provider and intermediary that the Provider is entitled to present to the Commissioner any document, including affidavits, related to the Commissioner's determination. If requested, a hearing before the Commissioner shall commence within 10 business days of receipt of such request. Within 60 calendar days of completion of the hearing the Commissioner shall either affirm or reverse such determination based upon the evidence presented. The Commissioner's determination shall be final and may be appealed in the manner provided by law. If a Provider fails to request a hearing within the prescribed time, the Commissioner's determination shall be final and the short term residential rental shall be deemed ineligible for listing on the platform.

(Added Coun. J. 6-22-16, p. 27712, § 8; Amend Coun. J. 9-9-20, p. 20269, § 15; Amend Coun. J. 12-16-20, p. 26066, § 7; Amend Coun. J. 3-24-21, p. 28843, § 1; Amend Coun. J. 4-21-21, p. 29948, § 6; Amend Coun. J. 11-7-22, p. 54948, Art. V, § 3)

4-13-270 Departmental duties.

   (a)   Duty to maintain a database of short term residential rentals. The Commissioner shall maintain a database, by address, of all short term residential rentals currently licensed by or registered with the Department under the applicable provisions of this Code.

   (b)   Duty to maintain ineligibility database. The Commissioner shall prepare and maintain a database of all short term residential rentals that are ineligible to be advertised for rent by a provider, listed on a platform by a provider, rented by a provider, or booked for future rental by a provider. Such database, which shall be updated by the Commissioner without undue delay following a determination of ineligibility under Section 4-13-260, shall include the date on which the database was most recently updated and shall be made available by the Commissioner to all licensed platforms in a form and manner prescribed by the Commissioner.

   (c)   Duty to maintain prohibited buildings list – Removal process. The Commissioner shall maintain a list, which shall be known as the prohibited buildings list, identifying the address(es) of all buildings whose owner(s), including any applicable homeowners association or board of directors, or an individual authorized by the owner of the building has notified the Commissioner, pursuant to Section 4-13-260(a)(9), that no short term residential rentals are permitted to operate anywhere in such building. The Commissioner shall: (1) post the prohibited building list on the City website; (2) establish a process by rule for verifying any notification received from a building owner(s) requesting the Commissioner to include such building on the prohibited buildings list; and (3) establish a process, by rule, to enable building owners to remove buildings from the prohibited buildings list.

   (d)   Duty to maintain restricted residential zone list. The City Clerk shall publicly post online a list of current restricted residential zones in conformity with Section 4-17-060.

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