CALIFORNIA ASSOCIATION OF REALTORS® BOARD OF DIRECTORS 538th SESSION OCTOBER 11 - 12, 2013
The following is a summary of the significant action items approved by the CALIFORNIA ASSOCIATION OF REALTORS® Board of Directors at its Fall 2013 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 Awards Selection 1. To approve the selection of Deborah Ritchey, Berkeley Association of REALTORS®, as the recipient of the 2013 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 2013 was a tremendous success. The Exhibit Hall included 288 exhibit booths, and there were 18 generous sponsoring companies. Overall attendance exceeded 8,500.
C.A.R. Scholarship Foundation/C.A.R. Education Foundation 1. That the proposed amendments to the C.A.R. Education Foundation Bylaws be approved as noticed. The proposed changes will bring the term of office of the Directors of the C.A.R. Education Foundation into conformity with the term of office of the Trustees of the C.A.R. Scholarship Foundation. 2. It was reported for information only that the C.A.R. Scholarship Foundation awarded scholarships in the amount of $5,000. The C.A.R. Education Foundation awarded grants in the amount of $2,381.35. The Citrus Valley Association of REALTORS®
CREPAC Trustees 1. That the following Nominees for CREPAC Trustees and Alternates be elected.
NOMINEES FOR CREPAC TRUSTEE (November 2013 - November 2015) Eva S. Garcia, Region 3 Linda Harrison, Region 8 Don Scordino, Region 12 Frank Nelson, Region 14 Sandi Pfister, Region 21 Joyce Leonard, Region 23 Robert Kevane, Region 24 Geoffrey Craighead, Region 25 Robert Pahlke, Region 29 Liz Claus, Region 32
NOMINEES FOR CREPAC ALTERNATE TRUSTEE (November 2013 - November 2014) Doug Covill, Region 3 Leslie Dopp-Manzone, Region 5 Craig Ragg, Region 6 Daniel Lanning, AE, Region 13 Thomas Berge, Region 16 Anne Oliva, Region 25
2. It was reported for information only that CREPAC contributed $702,200 in a bi-partisan manner to candidates for State Assembly and State Senate for the 2013 Special Elections and 2014 Primary Election cycle. 3. It was reported for information only that CREPAC contributed $1,640,000 in a bi-partisan manner to the Democratic and Republican Parties and $480,000 to Coalition partners for the 2013-2014 Election cycle. 4. It was reported for information only that CREIEC (California Real Estate Independent Expenditure Committee) funded Elections in the amount of $1,160,612.70 for the 2013-2014 Election cycle. 5. It was reported for information only that the CREPAC Trustees made recommendations to RPAC that resulted in funding $18,990 to members of the California Congressional delegation for the 2014 Election cycle.
Distressed Properties Task Force 1. The Distressed Properties Task Force presented its final report. The Task Force recommends assigning any further distressed property issues to C.A.R.'s Broker and Real Estate Finance Outreach department, and that the financial issues continue to be handled in Real Estate Finance discussions of the Transaction and Regulatory Committee.
Executive 1. That the proposed C.A.R. bylaws amendments relating to local association compliance with mandatory policies, as set forth within the C.A.R. Bylaws or by the C.A.R. Board of Directors, be adopted as noticed. [Note: current mandatory policies are payment of dues and mandatory submission of ethics discipline for publication as set forth in the Ethics and Professionalism Task Force Report approved in May 2013]. 2. That the proposed C.A.R. bylaws amendments relating to interim sanctions on local Associations for failure to pay dues be adopted as noticed. 3. That the proposed C.A.R. bylaws amendments relating to a mortgage loan originator exception to the NAR Variable Dues Formula be adopted as noticed contingent on NAR approving the policy and amending their bylaws, if necessary, to be effective for the 2014 dues billing cycle. 4. That the C.A.R. bylaws be amended to make them gender-neutral in all appropriate places and to change all references in the bylaws from the Department of Real Estate (DRE) to the Bureau of Real Estate (CalBRE).
Home Ownership Housing 1. A motion was considered, but was not approved by the Directors, that C.A.R. “SPONSOR” legislation in 2014 to authorize associations in Common Interest Developments (CIDs) to require a tenant of a unit to pay to the association any delinquent assessments owed to the association by the unit owner who is renting the unit to the tenant, in lieu of paying rent to the owner, until such assessments are brought current by the owner or through payments by the tenant.
IMPAC Trustees 1. That the following Nominees for IMPAC Trustees and Alternates be elected.
NOMINEES FOR IMPAC TRUSTEE (November 2013 - November 2015) Paula Colombo, Region 3 Jeannette Way, Region 4 Anita Thede, Region 6 Lisa Muetterties, Region 7 Betty Taisch, Region 8 RoseMarie McNair, Region 10 Lidia Yun, Region 16 Robert Kronovet, Region 17 Stephen Hanleigh, Region 19 Jolaine Merrill, Region 21 Larry Black, Region 23
NOMINEES FOR IMPAC ALTERNATE TRUSTEE (November 2013 - November 2014) Tom Hiller, Region 1 Kim Tucker, Region 3 Paul Cardus, AE, Region 9 Patricia Douglas, Region 17 Sheri Fejeran, Region 21 Ron Brownell, Region 29
2. It was reported for information only that C.A.R. IMPAC will contribute up to $50,000 to C.A.R. to co-sponsor four regional summits with local Associations and local policy makers to discuss issues of importance to the real estate industry.
Legal Action Fund Trustees 1. It was reported for information only that since May 2013 the Legal Action Fund Trustees have reviewed 8 cases and approved filing amicus briefs in 5 cases, two of which also received funding:
All Cities Realty v. Brunet The Trustees authorized an amicus brief and funding on the issue of whether salespersons are individually liable when they use the DBA name issued by CalBRE to the broker which is alleged to infringe on the trademark of another broker. The trustees are seeking matching funding from NAR.
Bararsani v. Coldwell Banker Residential Brokerage The Trustees authorized an amicus brief to be filed on whether salespersons are employees. The trial court rejected the three prong federal/state test and indicated it was a control test based on many factors, including many that are required by the licensing laws such as file review, only working for one broker, using the brokers’ name in addition to the other factors.
Prahm v. Pickford This procuring cause case relates to what standards and factors should be applied when a salesperson had discussions with a buyer who subsequently made an offer after the listing had expired (but the buyer was noted in the safety clause) which was accepted. The first salesperson never had obtained a written offer from the buyer.
CBIA v. City of San Jose The Trustees approved an amicus brief in an inclusionary zoning case on the issue of whether a local government that imposes a burden on a developer to include low or moderate income properties as part of the development, or pay an in-lieu fee, must establish that the requirement is reasonably related to the impact of the housing development on affordable housing. The California Supreme Court accepted this case for hearing.
ADP v. Realty Executives The Trustees approved an amicus brief and funding on the issue of whether a broker can be sued by another broker under a “quantum meruit” theory (a claim for value of services) when there is no contract between the brokers.
Membership 1. That C.A.R. oppose the NAR proposal to change the criteria for REALTOR® Emeritus status to require at least one year of service in NAR leadership. The proposal is expected to be considered by the NAR Delegate Body in November 2013. 2. That the following applicants be granted C.A.R. Honorary Member-for-Life status:
Alameda AOR Walter Jacobs Renee Thomas
Amador County Eleanor Smith Dale Turner
Arcadia AOR Carol Kennedy
Bakersfield AOR Bert Brooks Bob Jackson
Bay East AOR Joseph Annunziato Del Bain Richard Blevins Betty Burke Georgia Butterfield Phyllis Catania Tony D'Onofrio Phillip Ferriera Barbara Henderson Dave Kurtzer George Mancuso Richard McCartney Lyman Menger George Pocan Jerry Reynolds Sid Smith Robert Tavares Luis Trucios Sr
Berkeley AOR Philippa Feldman Nancy Taussig
Beverly Hills/Greater LA AOR Patricia Cross Marie Healey Donna Stewart
Big Bear AOR Jody Henderson
California Desert AOR Greg Shannon Joan Vough
Central Valley AOR LaVerne George Oliver Torlai
Citrus Valley AOR Bev Merrill
Conejo Simi Moorpark AOR Marshall Matz
Del Norte AOR Lyndol Mitchell Mimi Stephens
Desert Communities AOR Josephine Newkirk
East Valley AOR Stanton Botwinick Bruce Campbell Elbio Fontoura Dorothy Gaffney Debora Miller
Fresno AOR Rosalene Matteson Erma Olsen
Glendale AOR Sherilan Stewart
Greater Antelope Valley AOR Rosalie Clark Brown Joyce Murnane Robert Stover Fay Wines-Smoyer
Greater San Diego AOR Sandra Brown Robert Cairncross Fred Leo Haddad Lynda Lord
Humboldt AOR Donna Brown Don Evangelinos Sylvia Garlick
Kings County BOR Nancy Fry Larry Martella
Laguna BOR Harry Bithell
Lodi AOR Jean Arivett Robert Arivett Vinson Chase Romeo Gargalicana Robert Selover Andrea Tonkin
Merced County AOR Robert Arnold Jan Collins Shirlee Frey Connie Gantt Maribelle Henson Barbara Horta Michael Salvadori Ethel Valdez Jeri Winter
Nevada County AOR Thomas Coleman Sylvia Hamilton Wallace Hamilton Ronald Nevis Bobbie Powell Clifford Weeks
Newport Beach AOR Rochelle Liss
North San Diego County AOR Joe Bill Carter Jeannette Shields
Oakland AOR Margie Traylor
Orange County AOR Harold Boyte Darlene Cook Michael Doyle Ann Harck Barbara Holland Clement Lombardi Stephanie Loysen Janice Martin Al Martinez Kelson McDaniel Elaine Miyamori Linda Oetjen Raymond Peckham Nancy Taylor
Pacific Southwest AOR George Altizer Martha McGreevy Kitty Padilla
Pacific West AOR Robert Balsamo John Spear Palos Verdes Peninsula AOR Pauline Duley Jolaine Merrill June Wasko
Pasadena Foothills AOR Nazir Antoun Frances Benuska Sheldon Howard John Woo Lan Woo
Placer County AOR Harry Aho Sharah Bokeko Charles Gaston Jay Holland Marcia Lloyd-Kovac Betty McCutcheon Mary Merlock Betty Van Valer
Plumas AOR B J Pearson
Rancho Southeast AOR Raul Acevedo Celso De La Paz Urmila Jha Paul Lin Bruce Mulhearn Bernie Needham Solon Pereira Sidney Reitsma Surendra Shah
Sacramento AOR James Alexander Ezra Amir Anita Anderson Nancy Arndorfer Jennie Blevins Donna Cicogni Paula Colombo Nancy Ferguson Eva Garcia Jacquie Harris Thomas Hatch Peter Lucero Anna McKeel James McWilliams Robert Melton James Minton Judy Payne Gary Reynolds Stewart Sellers Jackie Seyb Sue Vitiello D Max Werking
San Mateo County AOR Beth Anderson Richard Bagley James Chin Vivien Cuneo Dee Hill Robert Jurisich Lynn King Ronald Marlin Bill Oliver Sal Rando Al Russell Christa Shahbazian Stan Silverstein Ansa Treanor
Santa Barbara AOR Maxine Filippin Al Lippert James Patterson Ed Robinson Neil Steadman
Santa Maria AOR William Hopkins
Silicon Valley AOR Louise Alkire Charles Finn Deanna Tarr Solano AOR Francisco Corpuz Thelma Riusaki
South Bay AOR Marie Horowitz
Southland Regional AOR James Wes Baker James Christopher Charles Desjardins Robert Funk Marcia Goldfarb Stephen Greenbaum Ruth Herman Jerry Hollywood Ellie Lacy Mildred Lam Myrna Lightstone Bob Pond Josepha Rolapp Carol Tasker Richard Tedeschi
Southwest Riverside County AOR Evelyn Daniels
Sutter Yuba AOR Lloyd McLeod Shiela Messick Jim Poston Pauline Siino Bill Stevenson
Tri-Counties AOR Lou Castellano
Victor Valley AOR Robert Nagy
West San Gabriel Valley AOR Marian Cavataio Oliver Chih Carl Feldstein
MLS Policy 1. It was reported for information only that the C.A.R. MLS Policy Committee received a full briefing about the issues and players engaged in the NAR policy debate surrounding the recent revision of its MLS Policy Statement 7.57 which places restrictions on the types of services an MLS may include within its participation fee. As this issue has been the subject of many articles and blogs, and NAR is poised to continue the discussion in November, the Committee entertained discussion about whether to take a formal stance on the matter and ultimately voted to take a neutral position.
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.:
Linda Carroll, Napa, Pacific Union Real Estate West De Young, South Pasadena, Dilbeck Real Estate Tracey Saizan, Elk Grove, Keller Williams Realty Joel Singer, Los Angeles, CALIFORNIA ASSOCIATION OF REALTORS® Lupe Soto, Chula Vista, McMillin Realty
Note: The following REBS Directors have continuing terms James Link, Van Nuys, Southland Regional Association of REALTORS® Larry Matos, Oakdale, Century 21/M&M Associates Dana Potter, Northridge, Pinnacle Estate Properties Rick Turley, San Ramon, Coldwell Banker Residential Brokerage
Standard Forms Advisory 1. It was reported for information only that the Standard Forms Advisory Committee addressed concerns from the Ethics and Professionalism Task Force and revised all of the listing agreements to address the issue of off market listings. The committee released 24 forms in April, three new forms in June, and is planning to release 7 new forms along with 23 revised forms in November. The November Forms release will include a stand-alone Seller Multiple Counter Offer (SMCO) and a redesigned Counter Offer (CO) with more blank lines. Revisions were made to the Request for Repairs (RR) form to address confusion in the field regarding contingency removal. The committee was also responsive to requests from the Property Management Forum. In November, three of the 7 new forms and several of the revised forms are related to property management or landlord tenant issues. There were 10 Regional Representatives reports given to the Standard Forms Advisory Committee (SFAC). In response to their reports, comments from the Forum on Forms and other member input, the committee decided to look at the Seller Property Questionnaire (SPQ) and create a draft to include a more prominent section addressing leased fixtures or equipment, specifically addressing solar equipment leases. The SFAC reviewed a proposed new form addressing water availability issues and recommended that C.A.R. not create a statewide form for this issue and further, that C.A.R. not create regional forms on an individualized basis. However, SFAC recommended additions to the Seller Property Questionnaire (SPQ) and Statewide Buyer and Seller Advisory (SBSA) to further address water availability and quality. The SFAC also reviewed a demand for mediation draft and a draft will be presented at the Forum on Forms in January 2014. The committee heard a report regarding short sales and auction companies from the Transaction and Regulatory committee, which has requested that C.A.R. draft a clause for insertion to appropriate and relevant documents advising the buyer and seller of the chance that the property could be forced into an auction type sale at any time during the contract period, which would give agents and parties an opportunity to opt out for consumer protection reasons. This will be reviewed by the SFAC in 2014, pending the Board of Directors’ approval at this meeting. The SFAC also received updates regarding the RPA Study and the SFAC/zipForm Study Group. The SFAC/zipForm study group presented a list of 15 recommendations for implementation into the standard forms process to allow for better functionality and consistency. Finally, the SFAC reviewed 25 of the 67 comments received and will have a conference call to review the balance of comments.
Strategic Planning and Finance 1. To approve a 2014-2016 strategic plan and 2014 budget with the following criteria: a. C.A.R. Operating Revenue $28,178,900 C.A.R. Operating Cost $29,685,500 Net Deficit (After Investment Income) $1,506,600 b. Issues Action Fund Revenue $1,554,800 Issues Action Fund Program Cost $924,500 Issues Action Fund Transfer to IMPAC $630,300 c. Political Activities Fund Revenue $1,554,800 Political Activities Fund Program Cost $1,144,300 Political Activities Fund Net Balance $410,500 d. REALTOR® Action Assessment $7,618,700 REALTOR® Action Assessment Program Cost $1,167,700 REALTOR® Action Assessment Transfer to Political Action Committee $6,451,000 e. 130.5 budgeted C.A.R. staff positions f. Membership dues, including $115 for operating programs, $10 for the Political Activities Fund, $10 for the Issues Action Fund, and $49 for the REALTOR® Action Assessment are set at a total of $184 per member (predicated on 2014 year end membership of 167,600) g. New member fee set at $30 per new member h. A 2014 Capital Budget (funded with Association reserves) totaling $522,800
2. To approve for members in areas not serviced by local associations an additional $30 in membership dues for 2014. This amount would be in excess of the dues approved for members coming through the local associations. 3. That $345,700 be approved for an additional 3.5 percent pension contribution to the C.A.R. and REBS employee pension plan for 2013, augmenting the previously approved budget of 10 percent. 4. That the Statement of Income and Expenses by program for the eight months ending August 31, 2013 be approved.
Total C.A.R. Revenue: $22,235,300 Expenses: $17,336,500 An excess of income (including investment income) over expenses of $4,898,800
Political Activities Fund An excess of income over expenses of $2,071,600
Issues Action Fund An excess of income over expenses of $1,068,700
REALTOR® Action Assessment An excess of income over expenses of $7,034,900
The C.A.R. Balance Sheet as of August 31, 2013 Total assets: $65,891,100 (of which $54,642,000 are current assets) Total liabilities: $4,438,100 (of which $3,633,000 are current liabilities) C.A.R. Fund Balance: $61,453,000
5. That the projected Statement of Income and Expenses by program for the year ending December 31, 2013 be approved.
Total C.A.R. Revenue: $27,733,400 Expenses: $29,088,000 An excess of expenses (including investment income) over Income: $1,354,600
Political Activities Fund An excess of income over expenses: $1,299,900
Issues Action Fund An excess of income over expenses: $691,000, this amount will be allocated to IMPAC as approved by the Directors.
REALTOR® Action Assessment An Excess of Income over Expenses: $6,307,900, this amount will be allocated to PACs.
6. That the updated Check Signing and Electronic Disbursement Policy for C.A.R. and its subsidiaries and affiliated entities be approved.
7. That the compliance score for the NAR Variable Dues formula shall be set at 90% for 2014 and 97% for 2015. Those associations under the 90% threshold on March 31, 2014 and those under the 97% threshold on March 31, 2015 will be referred to a panel appointed by the C.A.R. President from the SPF committee for determination of noncompliance status and appropriate sanctions and reported to the C.A.R. Directors no later than its next meeting.
Taxation and Government Finance 1. It was reported for information only that the Taxation and Government Finance Committee recommends that the C.A.R. President appoint a Task Force to analyze C.A.R.’s position and policy on split roll tax policy and related issues.
Transaction and Regulatory 1. That C.A.R., in conjunction with NAR, "OPPOSE" preemptive federal legislation and/or regulations that would limit a homeowner's access to their home equity, thus preserving the authority of the individual states to determine a homeowners' right to borrow against their home equity. 2. It was reported for information only that C.A.R. will draft a clause for insertion to appropriate and relevant documents advising the buyer and seller of the chance that the property could be forced into an auction type sale at any time during the contract period, which would give agents and parties an opportunity to opt out for consumer protection reasons. 3. It was reported for information only that the Transaction and Regulatory Committee recommends: (a) That C.A.R. Legal create a Q&A regarding fire insurance options and availability, and (b) That C.A.R. Communications develop a Consumer Advisory on “How to Shop for Fire Insurance” with emphasis on FAIR Plan applications.
Other 1. The following individuals were recognized for their outstanding service to the Association in 2013.
Committee Liaisons Virginia Butler Otto Catrina Carolyn D'Agosta Ted Loring Dennis Mason Bobbie Nelson Suzanne Yost