The Sacramento Report
by Debra Carlton
The California Apartment Association (CAA), under the direction of its Compliance Chairman, Ben Lamson of Bluestar Properties, located in Victorville, California, has completed a comprehensive review and update of all CAA legal forms and leases. In mid-December 2004, each of these new forms became accessible under the Forms section of CAA's Web site at www.caanet.org. CAA members can download them free of charge or can alternatively purchase printed pads of these forms from the San Francisco Apartment Association.
One of the most significant changes to these forms is the result of a new law signed by Governor Schwarzenegger in September 2004, which became effective January 1, 2005. This law prohibits rental property owners from requiring cash as the exclusive method of payment for rent or a security deposit, unless a resident has previously attempted to pay with a check drawn on insufficient funds or has stopped payment on a check or money order. In this situation, the owner may require cash for up to three months after the resident's attempt to pay with a bad check.
CAA has amended its lease/rental agreement to provide owners the flexibility to demand cash when necessary and appropriate under the law. In addition, CAA has created a new Notice of Change of Terms of Tenancy for owners to use in notifying existing tenants (who currently fall under a month-to-month contract) that cash may be required if the tenant attempts to pay rent with a bad check. Of course, if the tenancy exists under a long-term lease and that lease does not provide for cash payments, the terms cannot be changed until the lease is renewed (in rent-controlled jurisdictions, altering a lease upon expiration may carry consequences, including rent reduction). For a complete explanation of this new law, see an overview provided under the What's New
section of CAA's Web site.
A second significant change to CAA's forms is the result of a court ruling by the California Supreme Court. In this case, Kulshrestha v. First Union Commercial Corporation, the court ruled that a declaration or a proof of service must specifically "reveal a 'place of execution' within California, or recite that it is made 'under the laws of the State of California.' " Consequently, CAA has added this very specific language to all of its proof-of-service forms.
A chart summarizing all the changes and additions made to CAA's forms this year appears under the Forms section on the Web site. Although nearly all forms have been revised, this chart lists both (1) those forms that must be replaced as a result of a new law or court ruling, and (2) those old forms that contain nonsubstantive changes and, thus, can still be used by owners.
Many of the changes made to CAA's forms, as well as the creation of new forms, has come as a result of member comments and input throughout the year. We want to thank all members who participated in this process. Any CAA member who wishes to provide comments on these forms or suggest new ones can find a Comment Form under the Forms section of CAA's Web site.
The opinions expressed in this article are those of the author and do not necessarily reflect the viewpoint of SFAA or the San Francisco Apartment Magazine. Debra Carlton is the senior vice president of legislative affairs for the California Apartment Association and is CAA's chief lobbyist. Copyright © 2005 by the San Francisco Apartment Magazine. All rights reserved.