CALIFORNIA ASSOCIATION OF REALTORS® BOARD OF DIRECTORS 532nd SESSION SEPTEMBER 23 - 24, 2011
The following is a summary of the significant action items approved by the CALIFORNIA ASSOCIATION OF REALTORS® Board of Directors at its Fall 2011 meeting. Some additional information items are included, but do not necessarily represent Association policy. A complete set of minutes is available for review upon request.
California Distinguished REALTOR® Award Selection 1. To approve the selection of Mary Chatton Brown, Contra Costa, as the recipient of the 2011 California Distinguished REALTOR® Award, the highest recognition that C.A.R. can bestow on a member.
California REALTOR® Expo Advisory 1. It was reported for information only that the CALIFORNIA REALTOR® EXPO 2011 was a tremendous success. Attendance for PRE EXPO was 650. The Exhibit Hall included 162 exhibit booths, and there were 8 generous sponsoring companies. Overall attendance was 5,200.
C.A.R. Scholarship Foundation/C.A.R. Education Foundation 1. It was reported for information only that the C.A.R. Scholarship Foundation awarded scholarships totaling $11,000, and the C.A.R. Education Foundation awarded grants of $11,118.
CREPAC Trustees 1. That the following Nominees for CREPAC Trustees & Alternates be elected.
NOMINEES FOR CREPAC TRUSTEE (November 2011- November 2014) Gene Lentz, Region 9 Barbara J. Palmer, Region 10 Gregory Pawlik, Region 17 Steve White, Region 18 Evelyn Arnold, Region 22
NOMINEES FOR CREPAC ALTERNATE (November 2011 - November 2012) Nelson Janes, AE, Region 3 Terriann McGowan, Region 4 Cheryl McFall, Region 7 Debbie Rodgers, Region 11 Don Scordino, Region 12 Thomas Berge, Region 16 Geoffrey Craighead, Region 25 Robert Pahlke, Region 29
2. It was reported for information only that CREPAC contributed $257,100 to bi-partisan candidates for State Assembly and State Senate, as well as to the Democratic and Republican Parties 3. It was reported for information only that CREPAC recommended to RPAC that contributions of $172,000 be made to bi-partisan candidates for congress. 4. It was reported for information only that amendments to the CREPAC Bylaws have been recommended.
Summary of Proposed CREPAC Bylaws Changes as of 9-21-2011
1. Changes the CREPAC Trustee terms from 3-year terms to 2-year terms 2. Defines a “Complete Term” as more than 12 months. 3. Requires any Chair and Vice Chair to have served at least one Complete Term. 4. Removes the life time ban on repeat service but replaces it with a requirement that any trustee be off for 24 consecutive months before being eligible to serve as Trustee again. 5. Requires all Trustees selected to either have served as an alternate or have previously served as a Trustee. 6. Does not allow any voting Trustee to hold any of the following C.A.R. Leadership positions while in office: Chair or Vice Chair of any committee, Executive Committee Member, Strategic Planning and Finance Committee Member, or Liaison to committees. 7. Provides that if no Executive Officer is qualified and able to serve in the Executive Officer Trustee position, that the position may be filled with a qualified REALTOR®. 8. Provides that if no Executive Officer is qualified and able to serve as an alternate for the Executive Officer Trustee position, that the alternate position may be filled with a qualified REALTOR®. 9. Conforms the Nominating Committee to existing practice which is that no person running for trustee shall be on the Nominating Committee or participate in the selection of the Nominating Committee members. Further that if the CREPAC Chair is running for office and therefore ineligible to serve, the immediate past CREPAC Chair, senior Vice Chair, other Vice Chair shall chair the Nominating Committee and if they are not available, the CAR Immediate Past President will select the Nominating Committee Chair from current or prior CREPAC Trustees, or REALTORS®.
Federal 1. That C.A.R., in conjunction with NAR, “SUPPORT” the removal of the pest inspection and/or clearance requirement to insure a VA loan.
IMPAC Trustees 1. That the following Nominees for IMPAC Trustee and Alternate be elected.
NOMINEES FOR IMPAC TRUSTEE (November 2011- November 2014) Michael Godfrey, Region 06 Lynn Heintz, Region 12 Carol Banner, Region 15 Carl San Miguel, Region 19 Pat Fredericks, Region 28
NOMINEES FOR IMPAC ALTERNATE (November 2011 - November 2012) Anita Thede, Region 06 Lisa Muetterties, Region 07 Kimberly DiBenedetto, Region 10 Robert Kronovet, Region 17 Stephen Hanleigh, Region 19 Larry Black, Region 23 Paula Cosenza, Region 32
2. It was reported for information only that the IMPAC Trustees have authorized the following funding decisions:
Californians Against Higher Property Taxes: $100,000 to counter a statewide organized effort to promote split roll taxation
California Natural Resources Group: $25,000 to assist CNRG in continuing its action plan to challenge onerous “wetlands” regulations per the federal Clean Water Act and the designation of “critical habitat” per the federal Endangered Species Act
3. It was reported for information only that IMPAC will recommend to REALTOR® applicants for Local and State IMPAC funding that they also apply for NAR Issues Mobilization Committee funds. C.A.R. IMPAC applications will include information about NAR IMC but will not require an application to be submitted.
4. It was reported for information only that amendments to the IMPAC Bylaws have been recommended.
Summary of Proposed IMPAC Bylaws Changes as of 9-21-2011
1. Changes the IMPAC Trustee terms from 3-year terms to 2-year terms 2. Defines a “Complete Term” as more than 12 months. 3. Requires any Chair and Vice Chair to have served at least one Complete Term. 4. Removes the life time ban on repeat service but replaces it with a requirement that any trustee be off for 24 consecutive months before being eligible to serve as Trustee again. 5. Requires all Trustees selected to either have served as an alternate or have previously served as a Trustee. 6. Does not allow any voting Trustee to hold any of the following C.A.R. Leadership positions while in office: Chair or Vice Chair of any committee, Executive Committee Member, Strategic Planning and Finance Committee Member, or Liaison to committees. 7. Provides that if no Executive Officer is qualified and able to serve in the Executive Officer Trustee position, that the position may be filled with a qualified REALTOR®. 8. Provides that if no Executive Officer is qualified and able to serve as an alternate for the Executive Officer Trustee position, that the alternate position may be filled with a qualified REALTOR®. 9. Conforms the Nominating Committee to existing practice which is that no person running for office shall be on the Nominating Committee or participate in the selection of the Nominating Committee members. Further that if the IMPAC Chair is running for office and therefore ineligible to serve, the immediate past IMPAC Chair, senior Vice Chair, other Vice Chair shall chair the Nominating Committee and if they are not available, the CAR Immediate Past President will select the Nominating Committee Chair from current or prior IMPAC Trustees, REALTORS®.
Land Use and Environmental 1. That C.A.R. “SPONSOR” legislation to statutorily define “cost-effective” to require that the total costs of energy efficiency improvements, including maintenance costs, be less than the total present value of the energy saved over the useful life of the improvement.
Legal Action Fund Trustees 1. It was reported for information only that, since May, the Trustees reviewed 5 cases and approved filing a brief on one case as follows:
Henley v. Ron McKim Construction. Buyers (Henleys) entered into a contract with the Costas to buy residential property in April 2006. The buyers also signed a Buyer Broker agreement which contained a mediation clause. Escrow closed on May 9, 2006 and in March 2007, the buyers became aware of alleged property defects including paint and efforescence problems in March 2007. The broker’s counsel wrote a letter suggesting mediation on April 8, 2008. The buyers, through their counsel, responded May 23, 2008. The complaint was filed on January 20, 2009 against the construction company only. An unsuccessful mediation was held on February 19, 2009. The broker had participated in the mediation but did not sign an agreement tolling the statute of limitations. The buyers filed a first amended complaint naming the broker on May 8, 2009. The broker filed motions for summary judgment based on the statute of limitations. The motion was denied based on the theory that the statute of limitations was extended based on the doctrine of equitable tolling. The amended complaint had been filed more than two years after the plaintiff became aware of the defect but the trial court held that the 2009 mediation (though unsuccessful) stopped the time from running because mediation was required under the contract. The matter is on appeal and the trustees authorized a brief supporting the broker’s position that participating in a mediation does not toll the statute of limitations.
DBSI Bankruptcy. The Trustees are not officially involved in this case but are monitoring it. Many C.A.R. members were sued for past commissions by a bankruptcy trustee under the theory that the bankrupt company knew they had no assets to pay real estate professionals and therefore all such funds should be returned to the Bankruptcy Trustee. Approximately 84 members have joined the group to save costs in a joint defense. On August 3, 2011, the Bankruptcy Trustee filed a Notice of Commencement, signaling that the Trustee is moving forward with the action against the real estate professionals. All of the defendants in the case have until September 19, 2011 to file an answer or otherwise respond in the case. The deadline has been extended for members of the group to October 11, 2011. Rather than file answer to the complaint, various procedural motions either have been filed or will be filed in the next few days. These may include motions seeking dismissal or the transfer of the case on the basis of lack of personal jurisdiction, improper venue, failure to adequately plead the claims, and a motion to transfer to another court. These procedural motions, if successful, will significantly improve the posture of the case for the group.
Legislative 1. That C.A.R. take a “NOT REAL ESTATE RELATED” position on a proposition (Number Pending) on the June 2012 ballot: State Budget. Changes California Budget Process. Limits State Spending. Increases “Rainy Day” Budget Stabilization Fund.
Note: C.A.R. has previously taken the following positions on upcoming 2012 state ballot propositions: An as yet unnumbered Proposition for the June 2012 ballot entitled Legislative Term Limits Reform Act of 2012. Initiative Constitutional Amendment. “NOT REAL ESTATE RELATED”
An as yet unnumbered Proposition for the June 2012 ballot entitled HOPE 2010: California Cancer Research Act. Initiative Constitutional Amendment. “NOT REAL ESTATE RELATED”
An as yet unnumbered Proposition for the November 2012 ballot entitled Safe, Clean, and Reliable Drinking Water Supply Act. “NEUTRAL”
Membership 1. That the following applicants be granted C.A.R. Honorary Member-for-Life status:
Alameda AOR Hadi Monsef
Amador County AOR Sheldon Rodman
Arcadia AOR Ondina Nunez
Bakersfield AOR Cleta Bird Jack Doremus John Gregg Harry Hankins Jacob Stafford
Bay East AOR Frank Harmon Maxine Jennings Virginia Rauch Ingrid Wetmore
Beverly Hills/Greater Los Angeles AOR Herbert Balter Adelle Carlson Michael Di Giovanni Gertrude Fox Greta Hunt Maxine Keeling Stan Nelson Phyllis Nelson Matt Pouratian Ellen Sangermano Marcia Sherwin Jerome Zamarin
California Desert AOR Art Koupas Gayle Long Frederick Prescott
Citrus Valley AOR Albert Castro
Contra Costa AOR Bill Goodwin Lee Lyons Lorraine McPherson Vera Nugent
Downey AOR Maria Pierce
El Dorado County AOR Gina Chappell Gladys Katsikis
Lodi AOR Myrna Carter Lucy Carvalho Lenore Dougherty Ellen Foley Frank Jorgensen Hazel Kerner Keith Selleseth
Monterey County AOR George Coe Helen Gorman Emilio Lagasca Judith Lyle Samuel McLeod Richard Stebbins Carol Winningham
Newport Beach AOR Mary Von Geldern
North Bay AOR Jeraldeen Butler Jack Fuller Nancy Hunt Stephen Jones Marilyn Mc Coul Betz Tyler Ernest Villanueva
North San Diego County AOR Frances Burns Pat Haeckel Edward Wood
Northern Solano County AOR Dick Dawson Yvonne Greer
Oakland AOR Carolyn Gee
Orange County AOR Herbert Becker Jean Kulemin Inga Lehnert Clark Macgillivray Keith Snider Rich Steinhoff Searl Stock
Pacific Southwest AOR Edna Mitchell
Pacific West AOR Gary Myers Shirley Saltman Ofelia Warthen
Palos Verdes Peninsula AOR Ouida Peterson
Pasadena-Foothills AOR Joyce Dandurand Shirley Donovan France Meindl Pat Pattabhiraman
Placer County AOR Richard Byerrum Bob Myer Joyce Warner Arlene Winne
Rancho Southeast AOR Lil Gonzaga Jeanette Mathis Jag Mehta
Rim O The World AOR Gerald Du Four Pearl Swinson
Sacramento AOR Richard Armstrong Nancy Bernheimer Betsy Berretty Cleo Brown Avon Burgess Joan Carlino Marguerite Clugston John Dowdell Lotus Fabian David Frost Betty Glove Barbara Harsch Shirley Klarenbach Ronald LaBella Roberta Lautrup Jack Lee Janice Levin Georgia Mikacich Laura Mikulecky Robert Nielsen Phyllis Norris Cathy Phillips Jessica Railsback Eva Schwindt Joann Sertic Patricia Sheean Loretta Sherb Zoe Treaster Roberta Urban Carolyn Warren Frances Young
San Diego AOR Arthur Kirk Florencio Reyes Sylvester Sluka Richard Sorensen Carol Sorenson Danny Yelvington
San Francisco AOR Richard Fiore
San Luis Obispo AOR Phil Gray Garry Holdgrafer
San Mateo County AOR Donna Black Bill Davey Arline Dixon Paul Lee Patricia Lucia Gene Mickelson Harry Minkey Robert Paulus Suzanne Silverstein Sally Thompson
Santa Clara County AOR Carla Griffin Rose Huggins
Santa Cruz County AOR Steven Page Joyce Rudy Jose Santiago Ursula Ulrich
Scenic Coast AOR Barbara Snyder
Shasta AOR David Parr Van TiIllman
South Bay AOR Jill Sulser
Southland Regional AOR Manuel Adame Samy Antoun Janis Baer James Baker Robert Baldocchi Beverly Benson Donald Benson David Bock Rosemarie Buehler Larry Calemine Joseph Cashen Gloria Chase Arnold Cohen Harriet Cohen Chester Collom Gilberto Cortes Gail Cox Michael De Angelis Harvey Dlugatch Shirley Duenckel Gloria Duron Rita Edson Irv Falk Ann Fischer Sonia Fox Grace Frey Grace Gaynor Shelia Goodkin Hank Harmon Susan Harned Thomas Herron Ruth Hertz Betty Hopper Leona Irwin Sameer Jabboury Richard Janisch Eric Kehela Charles King Walter Kramer Haig Krikorian Freida Law Marion Light Marjorie Lipson Mimi Littman Adela Lopez Aurora Manayan Bartolomeo Manzo Anita Martin Sherman Massmann Frank Mc Andrew James Mc Kenna Ernest Mekjian Jerome Mellinger Janet Morris George Moss Constance Nelson Miles Nesman Lorraine Ourada Rudolph Phillips Patricia Pierce Aleksandra Piibe Juvenal Pimentel Merrilyn Reuss Karen Robb David Rolapp Joan Santagata Mel Santourian Roy Silver Rose Solakian Sol Taylor Judith Tedeschi Sylvia Wachtel Lee Waller Gene Wallis Sandra Walton
Southwest Riverside County AOR Lee Schapel
Tulare County AOR Sherry Tietjens Dale Wiley
Ventura County Coastal AOR Sally Caulfield Ann Diestel Tila Estrada Joe Gallegos Shirley Milligan Joan Minster Clark Owens Don Petty
West San Gabriel Valley AOR Thomas Berge
Yolo County BOR William Streng
Yosemite Gateway AOR Marilyn Sikora
Political Activities Task Force 1. That the evaluation of political activities and programs be conducted on an annual basis to support the Strategic Planning and Finance Committee.
Real Estate Business Services 1. That the following slate of nominees for a two-year term on the REBS Board of Directors be approved, and the C.A.R. President be instructed to elect these individuals on behalf of C.A.R.: David Cabot, San Diego, Prudential Realty West De Young, South Pasadena, Dilbeck Real Estate Heidi Rickerd-Rizzo, Napa, Terra Firma Global Partners Joel Singer, Los Angeles, CALIFORNIA ASSOCIATION OF REALTORS® Jeannette Way, Vacaville, Gateway Realty
Note: The following REBS Directors have continuing terms: Robert Bailey, Aptos, Bailey Properties James Liptak, Paso Robles, Altera Central Coast Emily Schwartz, Glendora, Citrus Valley Association of REALTORS® Rick Snyder, San Diego, R.A. Snyder Properties
REALTOR® Action Fund 1. That C.A.R. and the local associations add both the $148 “True Cost of Doing Business” and the $49 “Minimum Cost of Doing Business” on their dues billing statement, effective immediately. 2. To attend the Capitol Reception, REALTOR® members, affiliates and local association management staff (which includes AEs and GADS) must have contributed $148 the True Cost of Doing Business. 3. That the RAF/RAA political contributions allocation formula be changed as follows for 2012.
$49: Personal/Corporate Contributions 0% to CREPAC/Federal 25% to CREIEC ($12.25) 45% to CREPAC State ($22.05) 30% to LCRC ($14.70)
$148: Personal/Corporate Contributions - first $93: 0% to CREPAC/Federal 25% to CREIEC ($23.25) 45% to CREPAC State ($41.85) 30% to LCRC ($27.90)
Above $93 to CREPAC/Federal
Note: The 2011* formula was as follows: RAF/RAA Allocation Formula Contribution up to $20: above $20 to CREPAC/Federal
Personal Contributions 0% to CREPAC/Federal 25% to CREIEC ($5.00) 45% to CREPAC State ($9.00) 30% to LCRC ($6.00)
*[NOTE: Corporate Contributions: 20% to CREIEC; 48% to CREPAC State; 32% to LCRC]
Standard Forms Advisory 1. It was reported for information only that there were three Regional Representative reports given to the Standard Forms Advisory Committee (SFAC) meeting. The committee received accolades for the creation of the Additional Broker or Agent Acknowledgement (ABAA) form. Additional comments were received, including one to add a disclosure regarding the existence of methamphetamine to the SBSA form as well as appreciation for the creation of a stand-alone Water Heater Statement of Compliance (WHS) form. There were also comments about the need for a carbon monoxide device compliance disclosure. The SFAC reviewed 4 drafts scheduled for release November 2011: Additional Broker or Agent Acknowledgement (ABAA) form Extension of Lease (EL) form Optional Verification of Electronic Signature for Third Parties (OVS) form Water Heater Statement of Compliance (WHS) form
The SFAC spent some time reviewing the Optional Verification of Electronic Signature for Third Parties (OVS) form. The committee agreed to continue with the release of this form, noting that pending a review/response from the Department of Corporations, there may be a need for a revision in April 2012. The SFAC reviewed 1 new draft, tentatively scheduled for release in April 2012: • Septic Inspection, Well Inspection, Property Monument and Allocation of Cost Addendum (SWPI) form
In addition to making some edits to the SWPI form, the SFAC will request feedback from the Land Use Committee prior to releasing the form.
Further, as it relates to the November 2011 release, the committee also reviewed drafts of the 23 revised forms scheduled for release. The SFAC also received updates regarding the following sub-committees/study groups: • C.A.R. San Francisco Subcommittee – form updates scheduled for November, 2011 • Property Management Study Group – will continue through 2012 • Probate Study Group – will host their first meeting in January 2012
The committee also received an update regarding the local forms library pilot program. C.A.R. staff has met with three local regions to explore this initiative and are continuing with the project. Finally, the SFAC reviewed 67 of the 97 comments received. The committee will have a conference call in the coming month to review the balance of the comments.
Strategic Planning and Finance 1. That the Statement of Income and Expenses by program for the seven months ending July 31, 2011 be approved.
Total C.A.R. Revenue of $22,026,500 Expenses of $13,605,100 An excess of income (including investment income) over expenses of $8,421,400
Political Activities Fund An excess of income over expenses of $2,128,200
Issues Action Fund An excess of income over expenses of $1,143,700
REALTOR® Action Assessment An excess of income over expenses of $7,141,900
The C.A.R. Balance Sheet as of July 31, 2011 Total assets of $72,781,300 (of which $58,257,500 are current assets) Total liabilities of $6,317,800 (of which $5,808,100 are current liabilities) C.A.R. Fund Balance of $66,463,500
2. That the Projected Statement of Income and Expenses by program for the year ending December 31, 2011 be approved.
Total C.A.R. Revenue of $25,889,200 Expenses of $25,860,000 An excess of income (including investment income) over expenses of $29,200
Political Activities Fund An excess of income over expenses of $1,179,600
Issues Action Fund An excess of income over expenses of $843,100, this amount will be allocated to IMPAC as approved by the Directors.
REALTOR® Action Assessment An excess of income over expenses of $6,885,000, this amount will be allocated to PACs.
3. To approve a 2012-2014 strategic plan and 2012 budget with the following criteria: a. C.A.R. Revenue: $27,320,800 C.A.R. Cost: $26,798,200 Net Surplus (After Investment Income) $522,600 b. Political Activities Fund Revenue: $1,461,300 c. Issues Action Fund Revenue: $1,461,300 Issues Action Fund Transfer to IMPAC: $688,300 d. REALTOR® Action Assessment: $5,698,000 (minimum) Note: see item 4 below e. 128.5 budgeted C.A.R. staff positions f. Membership dues, including $115 for operating programs, $10 for the Political Activities Fund, and $10 for the Issues Action Fund, are set at a total of $135 per member (predicated on 2012 year end membership of 154,000). Note: see item 4 below g. New member fee set at $30 per new member h. A 2012 Capital Budget (funded with Association reserves) totaling $226,100.
4. That $49 be set as the amount for the REALTOR® Action Assessment in 2012. Note: As a result, total dues and fees are $184, and the budgeted RAA Amount is $7,160,400; see item 3.d. and item 3.f. above 5. To approve for members in areas not serviced by local associations an additional $30 in membership dues. This amount would be in excess of the dues approved for members coming through the local associations. 6. That $196,000 be approved for an additional two percent pension contribution to the C.A.R. and REBS employee pension plan for 2011, augmenting the previously approved budget of ten percent. 7. That $23,500 be approved for certain expenditures and activities related to the election of a California candidate to NAR office during the campaign period of three years or more. 8. That the title of the International Real Estate Forum be changed to Global Real Estate Forum. 9. That C.A.R. allocate $25,000 each from the Disaster Relief Fund to assist the state REALTOR® Associations in North Carolina, New Jersey, New York and Vermont with hurricane and tropical storm recovery efforts, and $25,000 from the Disaster Relief Fund to assist the Missouri state REALTOR® Association with tornado recovery efforts.
Taxation and Government Finance Committee 1. That C.A.R. “SPONSOR” legislation that would require property tax assessment appeals boards to comply with the Brown Act. 2. That C.A.R. “SPONSOR” federal legislation in conjunction with NAR that would extend the debt forgiveness protections beyond the end of next year. Once federal legislation is approved, that C.A.R. “SPONSOR” state legislation that would extend the debt forgiveness protections beyond the end of next year in conformity with federal law. 3. That C.A.R. “SUPPORT” legislation that would eliminate the State Responsibility Area Fire Prevention Benefit Fee.
Transaction and Regulatory 1. That C.A.R. affirm its position in support of the existing conforming loan limits (175 percent of the national conforming loan limit-$729,750) set by the Emergency Economic and Stabilization Act. 2. That C.A.R. “SUPPORT” the State Bar proposal to preserve "purchase money" status for refinanced purchase mortgages balances on a go forward basis. 3. It was reported for information only that staff will prepare background materials on local handbill permit and background requirements modeled after the Yorba Linda ordinance.
Other 1. The following individuals were recognized for their outstanding service to the Association in 2011.
Committee Liaisons David Barca Sharon Bowler Ruth Hayles Chris Kutzkey Geoff McIntosh Michael Riley Larry Spiteri
Outstanding Committee Chairs Charlene Singley, C.A.R. Housing Affordability Fund Committee Steve White, Legislative Committee Judy Zeigler, REALTOR® Action Fund Committee