A proposed ordinance aimed at granting alderpeople the authority to impose bans on short-term rentals within specific precincts has received significant approval from city officials and is set to be presented to the full City Council next week.
The ordinance, introduced by Ald. Anthony Napolitano (41st), seeks to enable alderpeople to impose a ban on new short-term rentals based on precinct-by-precinct evaluations.
Should residents in these affected areas wish to overturn such a ban, they would need to collect signatures from at least 10 percent of the precinct’s voters.
However, existing short-term rentals would be grandfathered in, allowing them to continue operating without interruption, with the option for alderpeople to remove the ban at their discretion, as Napolitano explained.
Currently, the process for imposing a precinct-level ban under the city’s short-term rental ordinance is more stringent, requiring 25 percent of registered voters to initiate a petition for consideration.
Napolitano pointed out that under the current system, residents have just 90 days to gather a potentially overwhelming number of signatures, with some requiring nearly 300 to pass bans through the City Council.
Ald. Marty Quinn (13th) and Ald. Silvana Tabares (23rd) have consistently been active in gathering these signatures in their wards, particularly in the areas surrounding Midway Airport, emphasizing the challenges posed by the existing limitations on residents.
“It takes time, all the while the local residents are stuck dealing with the problem at hand,” Quinn said, expressing his frustration over current procedural hurdles.
The proposed legislation found approval from the Committee on License and Consumer Protection on Wednesday and now awaits discussion by the City Council next week.
“We’re trying to work with the industry and not hurt them,” Napolitano remarked.
He highlighted that the aim of the ordinance is to target problematic short-term rental operations while not hampering responsible hosts.
Napolitano, representing a ward that encompasses parts of O’Hare, Norwood Park, Edison Park, and Oriole Park, has stated that many communities have encountered issues with short-term rental guests throwing large parties that disrupt local neighborhoods.
Ald. Tabares also expressed her support for the new legislation, citing concerns over developers buying homes in her ward solely for short-term rental operations.
“We’re not talking about a family who is listing their home to make a little bit of extra money,” she said.
According to Tabares, these developers lack any genuine interest in the welfare of the local neighborhoods, prioritizing profit over community welfare.
She noted that the proliferation of short-term rentals in her area has resulted in a breakdown of neighborhood cohesion, often leading to increased emergency calls.
Ald. Brendan Reilly (42nd) described the ordinance as “another tool in the toolbox,” clarifying that alderpeople who are content with short-term rentals in their wards would not be compelled to enforce such a ban.
In response to the proposed changes, Airbnb, a significant player in the short-term rental market, stated that these rentals contribute considerable revenue to the city while also benefiting surrounding small businesses, as guests frequently spend money at local establishments.
According to Airbnb’s statistics, hosts in Chicago earned $191 million last year through short-term rentals.
Jonathan Buckner, Airbnb’s Chicago Policy Manager, criticized Napolitano’s ordinance amendment, describing it as a broad and misguided infringement on Chicagoans’ property rights, which could adversely affect responsible homeowners and local businesses that depend on short-term rental income.
Loretta McCabe, an Airbnb host in Edison Park for seven years, shared her perspective on the issue, explaining that she rents out a bedroom primarily to longer-term guests such as college interns and doctors.
She expressed pride in being a considerate host who has never had issues with disruptive guests, asserting that if problems arose, Airbnb would promptly address them.
“If there’s any crazy parties, it’s the people in the neighborhood,” McCabe remarked, advocating for hosts’ property rights as long as their activities do not disrupt the community.
Furthermore, Airbnb highlighted that the company has observed a 78 percent reduction in reported parties in Chicago since implementing a global party ban in 2020.
McCabe also emphasized the financial benefits of being an Airbnb host, sharing that the income has significantly eased her financial responsibilities, and noted the numerous wonderful guests she has hosted during her time with Airbnb.
Through her interactions, she often introduces guests to local attractions, including restaurants, shops, and summer festivals, thereby stimulating the local economy of Edison Park.
“I don’t know why you would dissuade any revenue from coming into your neighborhood,” she concluded.
Airbnb further argued that its rentals generate tax revenue that supports initiatives aimed at fighting homelessness and domestic violence.
In 2021, over $5.5 million in taxes and fees from Airbnb contributed to these critical city programs.
Napolitano, in response to concerns over possible revenue loss due to the ordinance, expressed confidence that the city could find alternative revenue streams to maintain support for homelessness and domestic violence efforts.
Alds. Bill Conway (34th) and Matt O’Shea (19th) were the only two committee members opposing the ordinance, with Conway voicing concerns over potential infringements on property owners’ rights.
He criticized the ordinance’s approach as excessive, likening it to using a “bazooka to kill a bee.”
When queried about the ordinance, Mayor Brandon Johnson indicated he would take necessary time to review the legislation before making any comments.
As the City Council gears up for this pivotal vote next week, the future of short-term rentals in Chicago hangs in the balance.
image source from：https://blockclubchicago.org/2025/06/12/could-alderpeople-soon-have-the-power-to-ban-short-term-rentals-city-council-to-decide-next-week/
