SHARED HOUSING UNITS

Municipal Code of Chicago tit. 4, ch. 4-14

in effect

Municipal Code of Chicago § 4-14-010 Definitions.

4-14-010 Definitions. As used in this chapter: "Bed-and-breakfast establishment" has the meaning ascribed to that term in Section 4-6-290. "Board of directors" means the board of directors of a cooperative building. "Building containing five or more dwelling units" includes, but is not limited to, a row house consisting of five or more connected individual dwelling units. "Building containing two to four dwelling units" includes, but is not limited to, a duplex or row house consisting of two to four connected individual dwelling units. "Coach house" has the meaning ascribed to that term in Section 17-17-0234.6. "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. "Corporate housing" means a dwelling unit owned or leased by a business entity that is available for rent or for hire for transient occupancy solely by the business entity's officers, employees, family members of the officers or employees, consultants, vendors or contractors. "Department" means the department of business affairs and consumer protection. "Egregious condition" means: (1) drug trafficking; (2) prostitution; (3) gang-related activity; (4) violent acts involving the discharge of a firearm, or the death of, or serious bodily injury to, any person; (5) exceeding the design load; (6) overcrowding; (7) the use of a shared housing unit by a guest for commercial purposes, including but not limited to inviting persons to the unit under circumstances where the invitee is required, either directly or indirectly, to pay an admission fee, entrance fee or other compensation, consideration or revenue to gain entry to the unit; or (8) using or allowing the use of a shared housing unit for a party, amusement, event or other gathering in excess of the maximum occupancy limitation set forth in Section 4-14-050(b). "Exceeding the design load" means placing loads, including natural persons, on structural elements or components of buildings, including but not limited to porches, balconies and roof decks, in excess of the design load allowed under the building code. "Excessive loud noise" means: (1) any sound generated between the hours of 8:00 p.m. and 8:00 a.m. from within the shared housing unit or on any private open space having a nexus to the shared housing unit that is louder than average conversational level at a distance of 100 feet or more, measured vertically or horizontally from the property line of the shared housing unit or private open space, as applicable; or (2) any sound generated on the public way immediately adjacent to the shared housing unit, measured vertically or horizontally from its source, by any person having a nexus to the shared housing unit in violation of Section 8-32-070(a); or (3) any sound generated between the hours of 8:00 p.m. and 8:00 a.m. that causes a vibration, whether recurrent, intermittent or constant, that is felt or experienced on or in any neighboring property, other than a vibration: (i) caused by a warning device necessary for the protection of the public health, safety or welfare; or (ii) caused in connection with the performance of emergency work within the shared housing unit by the shared housing host or such host's agent; or (iii) subject to an exception or exclusion under Section 8-32-170. "Family member(s)" means a person's: (a) mother, father, spouse, brother or sister (including blood, step or half), father-in-law, mother-in-law, son-in-law, brother- in-law, sister-in-law, grandparents or grandchildren; (b) court-appointed legal guardian or person for whom a person is a court-appointed legal guardian; or (c) domestic partner or the domestic partner's mother, father, brother or sister (including blood, step or half), or son or daughter (including blood, step or half). "Guest" means a person who rents a shared housing unit for transient occupancy. The term "guest" does not include members of the owner's or tenant's household, as that term is defined in Section 17-17-0270. "Guest suite" has the meaning ascribed to that term in Section 4-6-300(a). "Homeowners association" has the meaning ascribed to that term in Section 4-6-300(a). "Hotel" has the meaning ascribed to that term in Section 4-6-180. "Illegal activity" means any criminal conduct, of whatever degree, in violation of federal, State or local law. "Local contact person" means a person authorized as an agent of the shared housing host who: (1) is designated for service of process; (2) is authorized by the shared housing host to take remedial action and to respond to any violation of this Code; and (3) maintains a residence or office located in the city. "Objectionable condition(s)" means any disturbance of the peace, public drunkenness, drinking in public, harassment of passersby, loitering, public urination, unlawful garbage or waste disposal, illegal gambling, lewd conduct or excessive loud noise. "Overcrowding" means exceeding the maximum occupancy limitation in violation of Section 4-14-050(b). "Permanent Occupancy" has the meaning ascribed to that term in Section 4-6-290. "Platform" has the meaning ascribed to that term in Section 4-13-100. "Primary residence" means the dwelling unit where a person lives on a daily basis at least 245 days in the applicable calendar year. The failure of a person to claim a Cook County homeowner exemption for a dwelling unit shall create a rebuttable presumption that such dwelling unit is not the person's primary residence. "Rental agreement" has the meaning ascribed to that term in Section 5-12-030. "Restricted residential zone" has the meaning ascribed to that term in Section 4-17-010. "Shared housing host" means an owner or tenant of a shared housing unit, or a manager acting on behalf of an owner or tenant, who directly or indirectly rents such unit to guests. "Shared housing unit" means a dwelling unit containing 6 or fewer sleeping rooms that is rented, or any portion therein is rented, for transient occupancy by guests. The term "shared housing unit" does not include: (1) single-room occupancy buildings; (2) hotels; (3) corporate housing; (4) bed-and-breakfast establishments; (5) guest suites; (6) vacation rentals; (7) conversion units; or (8) coach houses lawfully established after May 1, 2021. "Short term residential rental intermediary" or "intermediary" has the meaning ascribed to that term in Section 4-13-100. "Single family home" means a building that: (i) contains one dwelling unit only; and (ii) is not attached to any other dwelling unit. "Single-room occupancy building" has the meaning ascribed to the term "single-room occupancy" in Section 17-17-02163. "Tenant" means a person who has a rental agreement for a dwelling unit in which the rental payments are paid on a monthly basis for permanent occupancy of the dwelling unit. "Transient occupancy" has the meaning ascribed to that term in Section 4-6-290. "Vacation rental" has the meaning ascribed to that term in Section 4-6-300. (Added Coun. J. 6-22-16, p. 27712, § 9; Amend Coun. J. 4-10-19, p. 100029, Art. II, § 26; Amend Coun. J. 5-20-20, p. 17016, § 4; Amend Coun. J. 9-9-20, p. 20269, § 24; Amend Coun. J. 12-16-20, p. 26066, § 8; Amend Coun. J. 5-25-22, p. 48413, § 4)

Municipal Code of Chicago § 4-14-020 Shared housing unit registration - Registration fee - Required.

4-14-020 Shared housing unit registration - Registration fee - Required. (a) Registration with the department required. No shared housing host shall advertise for rent, list on a platform, rent, or book for future rental any shared housing unit or portion thereof until such shared housing host, in accordance with Section 4-13-230(a): (1) registers such unit with the department by submitting to the department a registration application meeting the requirements of subsections (b) and (c) of this section; and (2) is issued a unique registration number by the department for the shared housing unit identified in the registration application; and (3) includes such registration number in any advertisement for rent, listing on a platform, rental agreement, or booking for future rental pertaining to such shared housing unit; and (4) if the shared host advertises the shared housing unit on a primary website established, operated or maintained by such shared housing host or his agent, includes such registration number in any advertisement for such shared housing unit on such website. A separate registration shall be required for each dwelling unit used as a shared housing unit. (b) Registration application – Form and contents. The registration application required under subsection (a)(1) of this section shall be in a form and manner prescribed by the commissioner, and shall be accompanied by the following information: (1) the shared housing host's name, which shall be the name of a natural person, and the shared housing host's residence address. The accuracy of the information required under this subsection (b)(1) shall be verified by documentation provided in a form approved by the commissioner; (2) the address of the dwelling unit being registered as a shared housing unit, including the unit number, unit letter or similar unit identification; (3) contact information for the host or for a local contact person; (4) whether the dwelling unit identified in the registration application is: (i) a single family home, or (ii) a unit in a building containing multiple dwelling units, and, if so, the number of dwelling units in the building, and (iii) whether the host intends to make the entire dwelling unit available for rent or only a room or portion of the dwelling unit available for rent; (5) whether the dwelling unit identified in the registration application is the shared housing host’s primary residence, and, if the applicant is the owner of such dwelling unit, evidence of a Cook County homeowner exemption for such dwelling unit or any other documentation the Department may accept, as established by rule; (6) the registration fee required under subsection (j) of this section; and (7) any other information that the commissioner may reasonably require in connection with the issuance or renewal of a registration under this chapter. It is a condition of the registration that all information in the application be kept current. Any change in required information shall be reported to the department within ten business days of such change. (c) Accurate Information – Required. It shall be unlawful for any shared housing host: (i) to submit false information or to make any false, misleading or fraudulent statement in the registration application required under subsection (b) of this section; or (ii) use any scheme or subterfuge for the purpose of evading the requirements of this chapter. (d) (1) Zoning review – Required. Each registration under this section shall include a zoning review to ensure that the location of the shared housing unit is in compliance with the Chicago Zoning Ordinance. (2) Review of prohibited building list – Required. Each registration under this section shall include a review of the prohibited buildings list maintained by the commissioner pursuant to Section 4-13-270(c) to ensure that the shared housing unit is not located at an address identified on that list. (3) Review of restricted residential zone list – Required. Each registration under this section shall include a review of the list of current restricted residential zones maintained by the city clerk pursuant to Section 4-17-060 to ensure that the shared housing unit is not located in a restricted residential zone, unless the shared housing unit located within a restricted residential zone is a lawfully established use within such zone within the meaning of Section 4-17-070. (e) Registration number – Required. The commissioner shall assign a unique registration number to each approved shared housing unit registered with the department. (f) Duty to post registration number. The shared housing host shall include, in legible type, the shared housing unit's unique registration number in any advertisement for rent, listing on a platform, rental agreement, or booking for future rental pertaining to such shared housing unit. (g) Advertising for rental, listing on a platform, renting, and booking for future rental a shared housing unit while registration is pending – Prohibited. It shall be unlawful for any shared housing host to advertise for rent, list on a platform, rent or book for future rental any shared housing unit: (1) while registration of that unit with the department is pending, and (2) until such time that a unique registration number is assigned to such shared housing unit by the department. (h) Annual review of registration – Required. After the initial registration of a shared housing unit is approved by the department, the shared housing host may renew the shared housing unit's registration annually each year thereafter in a manner prescribed by the commissioner, unless the commissioner determines that the unit is ineligible for registration under Section 4-13-260(a). (i) Transfer of registration – Prohibited. The registration for a shared housing unit shall not be transferable to any other shared housing unit or shared housing host. (j) Registration fee – Required. The shared housing unit registration fee set forth in Section 4-5-010 shall be payable annually. (Added Coun. J. 6-22-16, p. 27712, § 9; Amend Coun. J. 2-22-17, p. 43564, § 4; Amend Coun. J. 5-20-20, p. 17016, § 5; Amend Coun. J. 9-9-20, p. 20269, § 25; Amend Coun. J. 3-24-21, p. 28843, § 1; Amend Coun. J. 5-21-25, p. 28493, § 3)

Municipal Code of Chicago § 4-14-030 Failure to meet eligibility requirements for registration - Legal effect - Processes.

4-14-030 Failure to meet eligibility requirements for registration - Legal effect - Processes. (a) Eligibility for registration. A dwelling unit shall not be eligible for registration with the department as a shared housing unit, or for renewal of such registration, if: (1) any of the conditions of ineligibility applicable to a short term residential rental, as set forth in Section 4-13-260(a), exist; or (2) the shared housing host identified on the registration application required under Section 4-14-020 has any outstanding debt to the City resulting from any unpaid fine incurred in connection with any violation of Chapter 4-14 of this Code, unless and until such debt is satisfied or otherwise resolved within the meaning of Section 2-32-094(a). (b) Failure to meet eligibility requirements – Notice and opportunity for a hearing. When, in the determination of the commissioner, a shared housing unit fails to meet the eligibility requirements for registration or renewal of registration, the commissioner shall notify the shared housing host, in writing, of such fact and of the basis for such ineligibility. Such notice shall: (1) 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 is sent, request, in a form and manner prescribed by the commissioner in rules, a hearing before the commissioner to review the determination of ineligibility under Section 4-13-260(a) for registration; and (2) advise the shared housing host that such host is entitled to present to the commissioner any document, including affidavits, related to the shared housing unit's eligibility. 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 make a determination of the shared housing unit's eligibility 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 commissioner's determination of ineligibility shall be final and the shared housing unit shall be deemed ineligible for registration. (c) Rental of ineligible units prohibited – Removal from platform required. If, following a final determination of ineligibility under Section 4-13-260(b) or Section 4-14-030(b), the shared housing host is notified in writing by the commissioner that a shared housing unit is ineligible to be listed on any platform, the shared housing host shall: (i) remove the ineligible listing from any platform where it is listed; and (ii) not rent or allow any family member to rent the shared housing unit identified in such notice. In addition to any other penalty provided by law, any shared housing host who fails to comply with this subsection shall be fined $5,000.00 for each offense. Each day that a violation continues shall constitute a separate and distinct offense. (Added Coun. J. 6-22-16, p. 27712, § 9; Amend Coun. J. 9-9-20, p. 20269, § 26; Amend Coun. J. 3-24-21, p. 28843, § 1)

Municipal Code of Chicago § 4-14-040 Legal duties.

4-14-040 Legal duties. (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; (4) the maximum occupancy limit under Section 4-14-050(b); and (5) 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; Amend Coun. J. 5-21-25, p. 28493, § 4)

Municipal Code of Chicago § 4-14-050 Unlawful acts.

4-14-050 Unlawful acts. (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) the actual allowed capacity of the shared housing unit based on the applicable provisions of the building code. 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. Upon issuance of a registration number under this chapter, the Commissioner shall notify the shared housing host of the applicable maximum occupancy limit under clause (i) of this subsection. (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; Amend Coun. J. 5-21-25, p. 28493, § 5)

Municipal Code of Chicago § 4-14-060 Rental requirements and restrictions.

4-14-060 Rental requirements and restrictions. (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)

Municipal Code of Chicago § 4-14-070 Rules.

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)

Municipal Code of Chicago § 4-14-080 Registration - Suspension or revocation.

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)

Municipal Code of Chicago § 4-14-090 Violation - Penalties - Injunctive relief.

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)

Municipal Code of Chicago § 4-14-100 Shared housing units - Commissioner's adjustments - When authorized.

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, along with a review fee of $360, 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; Amend Coun. J. 12-19-25, p. 38125, Art. XII, § 2)

Municipal Code of Chicago § 4-14-105 Limit calculation.

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)

Source: City of Chicago, Municipal Code of Chicago (American Legal Publishing, codelibrary.amlegal.com)URL: https://codelibrary.amlegal.com/codes/chicago/latest/chicago_il/0-0-0-2611518Fetched: 10/24/2026