Chicago: Law's Revamp Would Help Foreclosed-On Renters Recover Deposits

Security deposits haven't been that secure for many Chicago tenants lately, especially after foreclosures forced occupants from more than 8,500 rental units in 2009.

That ended up costing renters as much as $7.3 million in lost deposits.

Current city law requires landlords to return security deposits to displaced tenants after their buildings are foreclosed on, but it comes as no surprise that this is about as appealing to lessors as familial ties are to Michael and Dina Lohan.

But thanks to an ordinance proposed by Mayor Richard Daley and approved by a City Council committee Tuesday, renters in Chicago could soon have an easier time getting back their security deposits, even after their buildings are foreclosed on.

Key to it is a clear definition of what a "successor landlord" actually is. And it's not nearly as complex as it sounds.