§ 4-6-050

Residential real estate developer

a.

Definitions .  As used in this section:

Act related to residential real estate development” means:  (1) any activity requiring a license under this section; (2) any conduct regulated by this section; or (3) any activity requiring a building permit issued under Chapter 13-32 of this Code; or (4) any activity requiring a certificate of zoning compliance issued under Section 3-33-045; or (5) any duty or other requirement imposed by this section; or (6) any inspection of a building or premises or performance of other legal or work-related duty by a city inspector, city personnel or any other government official in connection with: (i) the issuance of a regulated business license under this chapter to engage in the business of residential real estate developer, or (ii) the issuance of a building permit under Chapter 13-32 of this Code, or (iii) the issuance of certificate of zoning compliance under Section 3-33-045, or (iv) enforcing the requirements of the building code, zoning code or any other law regulating building construction or the health or safety of construction site workers, of the current or eventual users or occupants of a building or premises or of the general public.

“Closing of the sale” means the operation of transferring ownership to the purchaser from the developer.

“Improves a residential building” means any construction, reconstruction, enlargement, installation, repair, alteration or renovation of a residential building or any portion thereof which requires a permit and either (i) involves increasing the floor area or height of a residential or family unit, or substantially altering the plumbing or electrical service of a residential or family unit; or (ii) encompasses 50% or more of the square footage of any residential or family unit, as measured before the construction, reconstruction, enlargement, installation, repair, alteration or renovation began.  For purposes of this definition: “Family unit” has the meaning ascribed to the term in section 13-4-010.  “Residential unit” has the meaning ascribed to the term in section 13-56-020.

“Knowingly”, with respect to a material fact, means (i) having actual knowledge of the material fact; or (ii) being aware of facts or information that would cause a reasonable person to have actual knowledge of the material fact; or (iii) acting in deliberate ignorance or reckless disregard of the truth or falsity of the material fact.

Prospective purchaser” means any person who visits a residential real estate development site for the purpose of inspecting it for possible purchase.

“Residential real estate developer” means any person who (1) acquires land regardless of whether improved; and (2) either improves vacant land so acquired with a residential building as defined in the Chicago Zoning Ordinance, or improves a residential building as defined in the Chicago Zoning Ordinance on improved land so acquired; and (3) sells the land or residential building, or any portion thereof.  The term does not include persons who make improvements on property that constitutes their primary residence if (i) the primary residence is a single-family dwelling, or a multiple-family dwelling that does not exceed three stories in height and contains six or fewer dwelling units as defined in section 13-4-010; and (ii) no more than one such property is sold by the person during a calendar year.

b.

Application – Additional information required .  In addition to the requirements set forth in Section 4-4-050, an application for, and, if requested, a renewal of, a regulated business license to engage in the business of residential real estate developer shall be accompanied by the following information:

1.

a description of the type of solicitation in which the applicant will engage;

2.

a statement as to whether, within ten years of the date of application or renewal, the applicant or any controlling person has ever been convicted, in custody, under parole or under any other non-custodial supervision resulting from a conviction in a court of any jurisdiction for the commission of a felony or criminal offense of whatever type or degree involving bribery, receipt of stolen property, fraud, theft, personal dishonesty, deception or forgery;

3.

a statement as to whether the applicant or any controlling person is currently under indictment or has been charged under any State or Federal law with the crime of bribery;

4.

the legal name and address of each residential real estate developer with whom the applicant, within the last four years, is or has been affiliated as a controlling person.

c.

License issuance and renewal – When .  No regulated business license to engage in the business of residential real estate developer shall be issued to the following persons:

1.

any applicant or licensee, as applicable, whose license to engage in the business of residential real estate developer under Title 4 has been revoked for cause at any time within the last four years;

2.

any applicant or licensee, as applicable, who, within ten years of the date of application or renewal, has been convicted, in custody, under parole or under any other noncustodial supervision resulting from a conviction in a court of any jurisdiction for the commission of a felony or criminal offense of whatever degree involving bribery, unless, upon the request of such person, the commissioner determines that such person has been substantially rehabilitated to warrant the public trust.  The burden of proof of substantial rehabilitation shall be on the person seeking such rehabilitation;

3.

any applicant or licensee, as applicable, who is currently under indictment or has been charged under any State or Federal law with the crime of bribery.

d.

Legal duties.  Each licensee engaged in the business of residential real estate developer shall have a duty to:

1.

post a photocopy of the license in a conspicuous place at each residential real estate development site and office maintained by the licensee;

2.

print the residential real estate developer’s license number in the following places: (i) on the front page of every estimate, contract and subcontract for residential real estate development; (ii) in any advertisement placed by or on behalf of the residential real estate developer; (iii) on every application for a building permit; and (iv) on every contract of sale;

3.

affix a sign in a conspicuous location at any place where sales information about a residential building or any portion thereof is made available for distribution to prospective purchasers.  The sign shall notify prospective purchasers of their right to request and immediately receive a written disclosure statement containing the information described in paragraph (4) of this subsection (d).  The lettering on the sign shall be in prominent type, clearly visible to and readable by the public, and in a color that contrasts with the background color of the sign;

4.

upon request, provide prospective purchasers with a written disclosure statement identifying (i) the name, business address, business telephone number and license number of the general contractor who did or will construct or improve the residential building; and (ii) the name, business address and business telephone number of every person owning twenty-five percent or more of the interest in the licensee or in any person requiring a license under this chapter;

5.

provide every purchaser, at the closing of the sale, with a written disclosure statement identifying (i) the name, business address, business telephone number and license number of the general contractor who constructed or improved the residential building or any portion thereof identified in the sales contract; and (ii) the name, business address and business telephone number of every person owning twenty-five percent or more of the interest in the licensee or in any person requiring a license under this chapter;

6.

comply with the requirements of Section 2-45-110, if applicable;

7.

comply with the requirements of Chapter 13-72 of this Code, if applicable.

e.

Prohibited acts .  It shall be unlawful for any licensee engaged in the business of residential real estate developer to:

1.

knowingly make or cause to be made a false statement of material fact on or in connection with any license, certificate or permit application connected in any way with an act related to residential real estate development;

2.

knowingly submit or cause to be submitted in support of a license, certificate or permit application any document connected in any way with an act related to residential real estate development that contains false or fraudulent information;

3.

knowingly affix or cause to be affixed a false signature on any license, certificate or permit application connected in any way with an act related to residential real estate development;

4.

bribe or attempt to bribe or cause others to bribe or attempt to bribe any city inspector, city personnel, government official or other person in connection with an act related to residential real estate development;

5.

knowingly engage or cause others to engage in any conduct connected in any way with an act related to residential real estate development in violation of the Illinois Architecture Practice Act; the Illinois Professional Land Surveyor Act; the Illinois Professional Engineering Practice Act; or the Illinois Structural Engineering Act;

6.

do work related in any way to residential real estate development or to direct, permit, encourage, assist, aid, abet or cause others to do work related in any way to residential real estate development: (i) without first having obtained any license, permit or certificate required by law; or (ii) in violation of any license, permit or certificate required by law; or (iii) contrary to any drawings or plans approved by the appropriate department in connection with the issuance of any building permit required by law; or (iv) in violation of any stop work order; or (v) in violation of the Chicago Zoning Ordinance; or (vi) in a manner that fails to conform to the minimum standards of health or safety set forth in this Code or any other applicable law, or that otherwise endangers the health or safety of workers on a construction site, the current or eventual users or occupants of a building or premises or any part thereof or the general public.

In addition to any other penalty provided by law, any person who violates any requirement set forth in subsection (e)(1) through (e)(6), inclusive, of this section shall be subject to a fine of not less than $2,000.00 nor more than $10,000.00 for each offense.  Each day that a violation continues shall constitute a separate and distinct offense.

f.

License suspension pending final adjudication of bribery charge .  If the commissioner has knowledge that a licensee engaged in the business of residential real estate developer under Title 4 or any controlling person has been indicted or charged with any offense set forth in subsection (e)(4) of this section or with a similar offense under any State or Federal law and the commissioner determines that continued operation of the licensed business or activity may pose a threat to the public health, safety or welfare or may threaten to impair public confidence in the licensed business or activity, the commissioner may suspend the regulated business license of such licensee authorizing such licensee to engage in the business of residential real estate developer, in accordance with the requirements of Section 4-4-280, until final adjudication is made with respect to such offense.  The subject matter of any hearing conducted under Section 4-4-280 shall be limited to determining: (1) whether the licensee or any controlling person has, in fact, been indicted or charged with any offense set forth in subsection (e)(4) of this section or with a similar offense under any State or Federal law; and (2) whether such offense is connected in any way with an act related to residential real estate development; and (3) whether continued operation of the licensed business or activity may pose a threat to the public health, safety or welfare or may threaten to impair public confidence in the licensed business or activity.  The burden of proving that continued operation of the licensed business or activity does not pose a threat to the public health, safety or welfare and does not threaten to impair public confidence in the licensed business or activity shall be on the licensee.

g.

License revocation – Four-year wait for new license .  No person whose license to engage in the business of residential real estate developer is revoked for cause shall be granted another license under this Code to engage in such business activity at the same or different location, or under the same or different name, for a period of four years from the date of revocation.

(Added Coun. J. 5-9-12, p. 27485, § 16; Amend Coun. J. 11-8-12, p. 38872, § 52)

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