Chicago Shared Housing Application Denial

[Kayla D.]

Hi all! Hoping for some advice here.

I purchased my first 2 unit Oct 22 and currently occupy the 1st unit duplex as my primary home. In November I submitted my shared-housing application to Chicago’s BACP, with the hopes using my basement unit as a short term rental unit (Airbnb, VRBO, FF, etc.). Almost 2 months later I received a denial because the unit is not my primary residence. That didn’t immediately make any sense to me, because DUH it’s not my primary home - that’s why I’d like to rent it out. I immediately appealed and received a response from their appeals a few days later stating that my only recourse was to apply for a commissioners adjustment. And so that I did - I completed their long list of essay questions and another 2 months goes by. Per the application they have up to 60 days and I get notice in the 58th day that that application has also been denied.

Am I doing something wrong here? I had no idea it would be so difficult get apply for a license for shared-housing. Should I have said the unit was my primary home? I reiterated on the appeal and commissioners application that I live right upstairs, in the 1st unit and the response in the appeal was that because I indicated the unit for which I’m applying wasn’t my primary residence, it didn’t qualify. How’s that so? There are too many Airbnbs in the city for all of them to actually be anyone’s primary residence. 

Any help or guidance is appreciated. I have 14 days to appeal the commissioners denial and plan to try to go to the BACP next week for some guidance. But when I’ve called in the past no one seems to have any info on the house sure department and you can only email them.


 

[Dan H.]

Quote from @Kayla D.:

Quote from @Michael Baum:

Hey @Kayla D., so I think the issue is that there are 2 residences there, not one. You have a duplex which means the 2 sides have different addresses.

If I am not mistaken, an ADU would qualify as it doesn't have a separate address from the main house.

You probably will have to go the LTR route on this one.

Yes, 2 different unit numbers. The rule for 2-4 units is that only 1 can be licensed as a shared housing unit but it has to be my primary residence. Technically, I don’t occupy the space but I own and maintain (furnish, utilities, etc.). Seems really silly for the city to enforce as if I’m not still under the same roof. 4+ unit buildings don’t have this same requirement. 

But I do have it listed on MLS for LTR, I’d much rather a short term guest though - since I’m so close to college and university hospital, I’d hope for students or traveling medical professionals. 

 In many areas str is defined as less than 30 days.  An option that may be allowed is furnished rental 30+ days.  This is sometimes referred to as mid term rental (MTR), but an MTR in most jurisdictions is simply a furnished Long Term Rental (LTR) with short lease agreements.

This could allow you to rent to students and medical professionals.  It is usually less work than STRs, but results in lower rent (but should be higher than traditional LTR). 

Good luck