4-14-070 Rules.

   The commissioner is authorized to promulgate rules necessary or appropriate to implement this chapter.

(Added Coun. J. 6-22-16, p. 27712, § 9; Amend Coun. J. 9-9-20, p. 20269, § 30; Amend Coun. J. 3-24-21, p. 28843, § 1)

4-14-080 Registration – Suspension or revocation.

   (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

      (3)   Scofflaw. When a shared housing unit 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)   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

      (5)   Unlawful discrimination. When, in connection with the listing for rental or rental of a shared housing unit, the Commissioner or the Chicago Commission on Human Relations has determined that a violation of Section 6-10-070 or Section 4-14-040(c), as applicable, has occurred.

   (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)

4-14-090 Violation – Penalties – Injunctive relief.

   (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)

4-14-100 Shared housing units – Commissioner's adjustments – When authorized.

   (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)

4-14-105 Limit calculation.

   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)