Chicago city council has introduced new legislation which will see homesharing hosts register directly with the council, instead of details being passed on by intermediaries.
The new legislation also temporarily banned one-night stays in sharing economy properties, with local residents given additional powers to complain.
The council said the moves would improve transparency within the home-sharing industry while giving the City of Chicago more regulatory authority “to prevent and remove party houses and other problem locations”.
New measures includes removing the ability of shared housing hosts to list units and accept reservations while their registration application was pending; expanding the zoning districts that could prohibit Shared Housing through Restricted Residential Zones; and a new $125 fee in order to register.
Previously, shared housing hosts had submitted their information directly to an intermediary, who submitted this information to the Department of Business Affairs and Consumer Protection (BACP) every two weeks. The council said: “This has led to incomplete data and a lack of identifying information that would support enforcement against problem locations. This will improve the City’s ability to ensure regulations are being met and take enforcement when necessary against problem locations”.
The city also created a tiered licensing fee for intermediaries and increased the registration fee for each host. Previously, all intermediaries paid an annual fee of $10,000, no matter the size of the platform. Under the proposal, intermediaries with 1 to 499 units will pay a decreased fee of $5,000 per year, intermediaries with 500 to 999 units will pay $7,500, and intermediaries with 1,000 or more units will pay the current rate of $10,000 per year. The council said: “This will make it easier for smaller operators to compete and come into compliance.”
To read the full story please join us with a 60-day trial here