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CALIFORNIA ASSOCIATION OF REALTORS®
BOARD OF DIRECTORS
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.
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.
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.
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.
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:
Bay East AOR
Luis Trucios Sr
Beverly Hills/Greater LA AOR
Big Bear AOR
California Desert AOR
Central Valley AOR
Citrus Valley AOR
Conejo Simi Moorpark AOR
Del Norte AOR
Desert Communities AOR
East Valley AOR
Greater Antelope Valley AOR
Rosalie Clark Brown
Greater San Diego AOR
Fred Leo Haddad
Kings County BOR
Merced County AOR
Nevada County AOR
Newport Beach AOR
North San Diego County AOR
Joe Bill Carter
Orange County AOR
Pacific Southwest AOR
Pacific West AOR
Palos Verdes Peninsula AOR
Pasadena Foothills AOR
Placer County AOR
Betty Van Valer
B J Pearson
Rancho Southeast AOR
Celso De La Paz
D Max Werking
San Mateo County AOR
Santa Barbara AOR
Santa Maria AOR
Silicon Valley AOR
South Bay AOR
Southland Regional AOR
James Wes Baker
Southwest Riverside County AOR
Sutter Yuba AOR
Victor Valley AOR
West San Gabriel Valley AOR
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.
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.
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.
1. The following individuals were recognized for their outstanding service to the Association in 2013.
Outstanding Committee Chairs
Dorothy Jackson, CREPAC Trustees
Sandy Darling, Home Ownership Housing Committee
Wes Burk, MLS Policy Committee
Outstanding Handshake Leadership Award
Revised: October 17, 2013