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(a) Descriptive information on listing – Required. Each shared housing host shall include the following information in every listing of a shared housing unit on a platform:
(1) the shared housing host's cancellation and check-in and check-out policies;
(2) a statement on: (i) whether the shared housing unit is wheelchair or ADA accessible; (ii) whether the shared housing unit 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;
(3) a description of the shared housing unit, including the number of sleeping rooms and bathrooms, and whether the entire dwelling unit, or only a portion thereof, is available for rent; and
(4) the registration number assigned by the department to the shared housing unit.
(b) Operating requirements. Each shared housing host shall comply with the following operating requirements:
(1) Soaps and clean linens – Required. Each shared housing host 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.
(2) Sanitized utensils – Food disposal – Required. Each shared housing host shall clean and sanitize the shared housing unit and all dishes, utensils, pots, pans and other cooking utensils between guests, and dispose of all food, beverages and alcohol left by the previous guests.
(3) Notification to police of illegal activity – Required. Each shared housing host shall immediately notify and cooperate with the police department if the shared housing host knows or suspects that any criminal activity, egregious condition or public nuisance is taking place in the shared housing unit.
(4) Registration number in advertisements, listings, rental agreements and bookings for future rental – Required. Each shared housing host shall conspicuously display in legible type the shared housing unit's registration number in: (i) every advertisement of any type in connection with the rental of the shared housing unit, (ii) every listing of the shared housing unit on any platform, and (iii) every rental agreement for, and booking for future rental of, any shared housing unit. Failure to comply with this requirement shall create a rebuttable presumption that the shared housing unit is being operated without the proper registration.
(5) Smoke alarms and carbon monoxide detectors – Required. Each shared housing host shall ensure that the shared housing unit is in compliance with applicable laws regarding the installation and maintenance of functioning smoke alarms and carbon monoxide detectors.
(6) Posting contact information – Posting evacuation diagram – Required. Each shared housing host shall post in a conspicuous place near the entrance of the shared housing unit: (i) the name and telephone number of a local contact person; and (ii) an evacuation diagram identifying all means of egress from the shared housing unit and the building in which it is located.
(7) Food handling safety – Required. Each shared housing host that provides food to guests shall comply with all applicable food handling and licensing requirements of this Code and Department of Public Health rules.
(8) Registration records – Required. Each shared housing host shall maintain current guest registration records which contain the following information about each guest: (i) name, (ii) contact information, (iii) signature, and (iv) dates of accommodation.
(9) Maintenance of records – Required. Each shared housing host shall keep the guest registration records required under subsection (b)(8) of this section on file for three years. Except in cases where a shared housing host 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.
(c) Public accommodation – Discriminatory practices prohibited. Each shared housing unit 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.
(d) 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 fora 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 registered with the City of Chicago as a shared housing unit;
(ii) The dwelling unit being leased is ineligible under Section 4-13-260(a) to be rented as a shared housing unit.
(2) The tenant or applicant shall be required to execute a receipt acknowledging that these written disclosures 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, at the time of any offering for sale of the real property which forms the corpus of the trust, or at 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 registered with the City of Chicago as a shared housing unit;
(ii) The dwelling unit being sold is ineligible under Section 4-13-260(a) to be rented as a shared housing unit or vacation rental.
(4) The purchaser or prospective purchaser shall be required to execute a receipt acknowledging that these written disclosures have been made.
(e) Compliance with tax laws – Required. Each shared housing host 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).
(Added Coun. J. 6-22-16, p. 27712, § 9; Amend Coun. J. 2-22-17, p. 43564, § 5; Amend Coun. J. 9-6-17, p. 55278, Art. VI, § 4; Amend Coun. J. 9-9-20, p. 20269, § 27; Amend Coun. J. 2-24-21, p. 27657, Art. III, § 12; Amend Coun. J. 3-24-21, p. 28843, § 1; Amend Coun. J. 4-27-22, p. 46382, § 21)
(a) Nuisances – Illegal activity, objectionable conditions, egregious conditions – Prohibited.
(1) Illegal activity and objectionable conditions. It shall be unlawful for any shared housing host to permit any nuisance within the meaning of Section 4-13-260(a)(1) to take place within the shared housing unit. In addition to any other penalty provided by law, any person who violates this subsection (a)(1) 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.
(2) Egregious condition. It shall be unlawful for any shared housing host to permit any egregious condition to take place within the shared housing unit. In addition to any other penalty provided by law, any person who violates this subsection (a)(2) shall be subject to a line 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.
(b) Exceeding maximum occupancy – Prohibited. It shall be unlawful for any shared housing host 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 shared housing unit; or (ii) no more than one person per 125 square feet of floor area of the shared housing unit; or (iii) the actual allowed capacity of the shared housing unit based on the applicable provisions of the building code, whichever is less. As used in this subsection (b), 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 (b) 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.
(c) Misrepresentation of material facts – Prohibited. It shall be unlawful for any shared housing host to misrepresent on any listing any material fact regarding the shared housing unit.
(d) Service of alcohol – Prohibited. It shall be unlawful for any shared housing host to serve or otherwise provide alcohol to any guest or invitee of any guest.
(e) Rental under the minimum rental period – Prohibited. It shall be unlawful for any shared housing host to rent any shared housing unit, 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 shared housing unit, or any portion thereof, be rented by the hour or for any period of less than 10 consecutive hours.
(f) Multiple rentals within the minimum rental period – Prohibited. It shall be unlawful for any shared housing host to rent any shared housing unit, or any portion thereof, more than once within any consecutive 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 shared housing unit, or any portion thereof, be rented more than once within any consecutive 10-hour period.
(g) Advertising less than the minimum rental period – Prohibited. It shall be unlawful for any shared housing host to advertise an hourly rate or any other rate for any shared housing unit, or any portion thereof, based on a rental period of less than the rental period authorized under subsections (e) and (f) of this section.
(h) Multiple or overlapping bookings – Prohibited. It shall be unlawful for any shared housing host to allow multiple bookings or rentals of any shared housing unit for the same or overlapping time periods.
(i) Except as otherwise provided in Section 4-17-070, it shall be unlawful for any shared housing host to advertise for rent, list on a platform, rent, or book for future rental, or to permit any person to advertise for rent, list on a platform, rent, or book for future rental, any shared housing unit that is located within a restricted residential zone. In addition to any other penalty provided by law, any person who violates this subsection (i) 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.*
* Editor's note – This subsection was formerly designated as subsection (j); redesignated as subsection (i) at the discretion of the editor when former subsection (i) was deleted by Coun. J. 9-9-20, p. 20269, § 28.
(j) Listing and rental of conversion units – Prohibited. It shall be unlawful for any shared housing host to 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 conversion unit.
(k) Listing and rental of coach houses – Prohibited. It shall be unlawful for any shared housing host to 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 coach house lawfully established after May 1, 2021.
(Added Coun. J. 6-22-16, p. 27712, § 9; Amend Coun. J. 5-20-20, p. 17016, § 6; Amend Coun. J. 9-9-20, p. 20269, § 28; Amend Coun. J. 12-16-20, p. 26066, § 9)
(a) Lawfully established dwelling unit with six or fewer sleeping rooms – Required. It shall be unlawful for any shared housing host to advertise for rental, list on any platform, rent or book for future rental any shared housing unit that is not a lawfully established dwelling unit within the meaning of Section 17-17-0248 containing six or fewer sleeping rooms and located within a residential building.
(b) Violation of condominium or cooperative building restrictions – Prohibited. It shall be unlawful for any shared housing host to advertise for rental, list on any platform, rent or book for future rental any shared housing unit if the homeowners association or board of directors has adopted by-laws prohibiting the use of the dwelling unit as a shared housing unit or vacation rental, in any combination.
(c) Violation of rental requirements and restrictions – Prohibited. It shall be unlawful for any shared housing host to advertise for rental, list on any platform, rent or book for future rental any shared housing unit that is subject to a rental agreement, if the owner of the building in which the dwelling unit is located has prohibited the use of such dwelling unit as a shared housing unit or vacation rental, in any combination.
(d) Listing and rental of single family home that is not the licensee's primary residence – Restricted. It shall be unlawful for any shared housing host to advertise for rental, list on any platform, rent or book for future rental any shared housing unit that is a single family home, unless such single family home is the shared housing host's primary residence. Provided, however, that this prohibition shall not apply if: (i) the shared housing host is on active military duty and such host 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 4-14-100(a) permitting otherwise has been obtained; or (iii) the single family home was properly licensed, as of June 22, 2016, as a non-owner occupied vacation rental.
(e) Listing and rental in buildings with up to four dwelling units – Restricted. It shall be unlawful for any shared housing host to advertise for rental, list on any platform, rent or book for future rental any shared housing unit that is located in a building containing two to four dwelling units, inclusive, unless such dwelling unit is: (i) the shared housing host's primary residence, and (ii) is the only dwelling unit in the building that is or will be used as a shared housing unit or vacation rental, in any combination. Provided, however, that the prohibition set forth in item (i) of this subsection shall not apply if the shared housing host is on active military duty and such host has appointed a designated agent or employee to manage, control and reside in the shared housing unit during such host's absence. Provided further, that the prohibitions set forth in items (i) or (ii) of this subsection shall not apply if: (a) the applicable commissioner's adjustment under Section 4-14-100(a) permitting otherwise has been obtained; or (b) the shared housing unit was properly licensed, as of June 22, 2016, as a non-owner occupied vacation rental.
(f) Listing and rental in buildings with five or more dwelling units – Prohibited. It shall be unlawful for any shared housing host to advertise for rental, list on any platform, rent or book for future rental any shared housing unit 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 shared housing units or vacation rentals, in any combination, if the dwelling unit identified in the registration application is registered as a shared housing unit.
(Added Coun. J. 6-22-16, p. 27712, § 9; Amend Coun. J. 9-9-20, p. 20269, § 29; Amend Coun. J. 3-24-21, p. 28843, § 1)
(a) Registration suspension or revocation – Authorized when. In addition to any other penalty provided by law, a registration under this chapter may be suspended or revoked by the commissioner for any violation of this chapter. Except as otherwise provided in subsection (b) of this section, no registration shall be revoked or suspended except in accordance with subsection (d) of this section.
(b) Immediate suspension or revocation – Post-deprivation hearing – Authorized when. If the commissioner has good cause to believe that: (1) continued rental of a shared housing unit causes an imminent threat to public health, safety or welfare, and (2) grounds exist for revocation or suspension of the shared housing unit's registration, including, but not limited to, any of the grounds set forth in subsection (c)(1) through (c)(5), inclusive, 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 the shared housing unit's registration and prohibit the shared housing host from renting the shared housing unit to guests for a period of time not to exceed ten calendar days; provided, however, that the shared housing host shall be afforded an opportunity to be heard during such period. If the shared housing host fails to request a hearing within the prescribed time, or requests a hearing but fails to appear at such hearing, the shared housing unit's registration shall be deemed revoked.
(c) Suspension or revocation – Pre-deprivation hearing – Authorized when. In addition to any other applicable reason, a shared housing unit registration may be suspended or revoked in accordance with this section under the following circumstances:
(1) Situs of one or more egregious conditions. When a shared housing unit is the situs of one or more egregious conditions while rented to guests; or
(2) Situs of two or more nuisance conditions. When, in the determination of the commissioner, the rental of the shared housing unit creates a nuisance because at least two separate incidents involving illegal activity or objectionable conditions occurred during a 12-month period: (i) in the shared housing unit; or (ii) in or on the premises in which the shared housing unit is located; or (iii) in the shared housing unit'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 shared housing unit while rented to a guest. In a proceeding to suspend or revoke the registration of a shared housing unit that is or creates a nuisance under this subsection (c)(2), 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 activity, in any combination, occur on the registered premises, or on or in the registered premises' parking facility, or on adjacent property, a rebuttable presumption shall exist that the shared housing unit is or creates a nuisance in violation of this subsection (c)(2); or
(4) Threat to public health, safety or welfare. When the commissioner determines that the continued rental of a shared housing unit poses a threat to the public health, safety or welfare; or
(d) Notification and hearing process. Upon determining that a shared housing unit's registration is subject to suspension or revocation under this section, the commissioner shall notify the shared housing host, in writing, of such fact and of the basis for the suspension or revocation of the registration. Such notice shall include a statement informing the shared housing host that the shared housing host 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 suspension or revocation. The notice shall also advise the shared housing host that the shared housing host is entitled to present to the commissioner any document, including affidavits, related to the commissioner's determination for suspension or revocation. If requested, a hearing before the commissioner shall be commenced 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 decision shall be final and may be appealed in the manner provided by law. If a shared housing host fails to request a hearing within the prescribed time, the shared housing unit registration shall be deemed suspended or revoked. Upon entry of a final order of suspension or revocation, the commissioner shall place the unit on the ineligibility list maintained by the commissioner under Section 4-13-270(b).
(Added Coun. J. 6-22-16, p. 27712, § 9; Amend Coun. J. 11-9-16, p. 36266, § 39; Amend Coun. J. 9-9-20, p. 20269, § 31; Amend Coun. J. 4-21-21, p. 29948, § 7; Amend Coun. J. 4-27-22, p. 46382, § 21)
(a) Fines and other applicable penalties. Except as otherwise provided in this chapter, and in addition to any other penalty provided by law, any person who violates this chapter 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 a violation continues shall constitute a separate and distinct offense.
(b) Exceeding rental restrictions. If the rental restriction applicable to buildings containing more than five units, as set forth in Section 4-14-060(f), is exceeded in any building, all shared housing registrations and vacation rental licenses for dwelling units located within such building are subject to revocation under this chapter.
(c) Injunctive relief. In addition to any fine or other penalty imposed by law, the corporation counsel may seek an injunction or other equitable relief in a court of competent jurisdiction against a host to stop any violation of this chapter.
(d) Duration of revocation. If a shared housing unit registration under this chapter 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 registration was revoked, occupies the dwelling unit.
(Added Coun. J. 6-22-16, p. 27712, § 9)
(a) The commissioner is authorized to grant an adjustment to allow:
(1) the operation of a shared housing unit located in:
(i) a single family home that is not the shared housing host's primary residence; or
(ii) a building containing two to four dwelling units, inclusive, where the dwelling unit is not the shared housing host's primary residence; or
(2) in a building containing two to four dwelling units, inclusive, an increase in the number of dwelling units that may be used as shared housing units. 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 registration of a shared housing unit.
(b) An adjustment under subsection (a)(1) may be requested by the shared housing host. An adjustment under subsection (a)(2) may be requested by the owner, homeowners association or board of directors of the building.
(c) 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, tender a decision, which shall constitute a final determination for purposes of judicial review.
(d) 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 registration is issued, the plan of conduct shall be deemed a part of the shared housing unit registration, and compliance with the plan of conduct shall be a necessary condition to the continued validity of the registration. Failure to comply with one or more elements of the plan of conduct shall subject the registrant to suspension or revocation of the shared housing unit registration.
(e) Throughout the commissioner's adjustment consideration process, the applicant shall bear the burden of persuasion to justify the sought adjustment.
(Added Coun. J. 6-22-16, p. 27712, § 9)
The limits on the number of shared housing units in a building shall be calculated as maximum limits using the method in Section 17-1-0605-B.
(Added Coun. J. 6-22-16, p. 27712, § 9; Amend Coun. J. 9-9-20, p. 20269, § 32; Amend Coun. J. 3-24-21, p. 28843, § 1)