Chicago Municipal Code Section 4-14 (Shared Housing Ordinance) requires every short-term rental unit to be licensed individually. ADUs and coach houses in the pilot program at MCC 17-9-0118 cannot be operated as short-term rentals.
Under MCC Section 4-14, all short-term rentals (under 32 days) require a Shared Housing Unit Operator License from the Department of Business Affairs and Consumer Protection (BACP). MCC 4-14-010 defines an STR as the rental of a dwelling unit for periods of less than 32 consecutive days. MCC 17-9-0118 explicitly excludes ADUs and coach houses from STR eligibility because the pilot is designed to add long-term affordable housing. Most pilot ADUs are also tied to the owner-occupancy covenant in MCC 17-9-0118-D, further blocking STR use. Long-term rentals (32+ days) do not require BACP licensing but must comply with the Chicago Residential Landlord and Tenant Ordinance (CRLTO) and DOB inspection requirements.
Operating an unlicensed STR violates MCC 4-14-040 with fines from $1,500 to $5,000 plus $500 per day. Operating an ADU as an STR additionally violates MCC 17-9-0118 and may trigger DOH grant clawback.
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