New Rules For Chicago’s Home Sharing Industry About To Enter | Chicago News

(WTTW News)

New rules for the Chicago roommate industry are expected to take effect Tuesday, including a ban on short-term rentals that last only one night, in an effort to block large parties that have become a regular nuisance in some. neighborhoods.

Approved by Chicago City Council with backing from Mayor Lori Lightfoot in August, the new bylaw was scheduled to come into effect on April 1. But efforts to develop a new system that will streamline license applications took longer than expected, and aldermen agreed in March with a two-month delay.

The new system is designed to verify information submitted by homeowners who wish to rent their homes on a short-term basis and ensure that city authorities can hold those who break the rules accountable through an online portal.

The city will now require landlords who list their homes for rent on colocation platforms to submit registration information directly to the city, rather than to the colocation platform companies, who send it to the city every two weeks. .

The new regulations will prevent hosts from listing their apartments or homes on a licensed home-sharing platform until the city approves their license.

This will make it easier for city authorities to hold landowners accountable for loud parties or other nuisances, officials said. Homeowners can lose their license after a single “glaring” incident in a rental property or two complaints in a year, under the new rules.

“This portal and the recently implemented ordinance will bring much-needed changes; for too long communities have suffered from uncontrollable ‘party houses’, in my neighborhood and across town, ”Ald said. Michele Smith (43rd venue), who co-sponsored the new rules. “Chicago residents will now benefit from a new system that will facilitate better monitoring of the shared housing industry and improve the quality of life throughout Chicago.”

Homeowners could face fines ranging from $ 5,000 to $ 10,000 if their property is used for drug trafficking, prostitution, “gang activity” or a party, depending on the proposed changes.

The rules developed by city authorities in 2016 when the fledgling flatshare business took off with the rise of platforms like Airbnb are now “obsolete” and made it impossible to crack down on homeowners who allowed loud parties to become a nuisance for people. the neighbors, Commissioner for Commercial Affairs and Consumer Protection, Rosa Escareño, told aldermen in August.

However, Airbnb representatives opposed the ban on single night stays as “unfair and unfounded” regulation that would cost Chicagoans who rent homes on the platform nearly $ 5 million. dollars in annual income.

There are approximately 6,900 shared units licensed by the city for rent through Airbnb and HomeAway, Chicago officials said.

The new rules reduce the flat registration fee from $ 10,000 to $ 7,500 for platforms that list between 500 and 999 units and by $ 5,000 for those that list less than 500 units. Platforms with 1,000 or more units would pay a registration fee of $ 10,000 under the new law. Each unit listed also triggers an annual fee of $ 60.

Homeowners now have to pay an annual license fee of $ 125 per unit to rent their property on the platforms, up from $ 60, under the new rules.

A 2017 law requires HomeAway and Airbnb to pay an additional 4% tax. These revenues are intended for homeless services. The city ordinance also limits the number of units in large apartment buildings that can be rented.

In 2018, the aldermen revised the law to add an additional tax of 2% to roommate transactions in order to finance services for people who are victims of domestic violence.

Ald. Marty Quinn (13th Ward) has banned house sharing in all areas of his Southwest Side neighborhood by collecting petitions. Alds neighbors. Patrick Daley Thompson (11th arrondissement) and Silvana Tabares (23rd arrondissement) have also banned new shared rentals in several areas of their arrondissements.

The revised ordinance expands areas of the city where residents can ask municipal authorities to ban new colocation units.

Contact Heather Cherone: @HeatherCherone | (773) 569-1863 | [email protected]

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