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CALIFORNIA ASSOCIATION OF REALTORS®
BOARD OF DIRECTORS
529th SESSION
OCTOBER 8 - 9, 2010
The following is a summary of the significant action items approved by the CALIFORNIA ASSOCIATION OF REALTORS® Board of Directors at its Fall 2010 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.
Award Selection
1. To approve the selection of Mary Funk, Southland Regional, as the recipient of the 2010 California Distinguished REALTOR® Award, the highest recognition that C.A.R. can bestow on a member.
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 $12,500.
California REALTOR® EXPO Advisory
1. It was reported for information only that the CALIFORNIA REALTOR® EXPO 2010 was a tremendous success. Attendance for Tech Tuesday was 800. The Exhibit Hall included 225 exhibit booths, and there were 11 generous sponsoring companies. Overall attendance was 7,800.
CREPAC Trustees
1. That the following Nominees for CREPAC Trustee and Alternate be elected.
NOMINEES FOR CREPAC TRUSTEE
(November 2010- November 2013)
Steve Reiser, Region 5
Dorothy Jackson, Region 6
Susan Davis, Region 12
Candice Carpenter, Region 21
Cas Pinkowski, Region 32
NOMINEES FOR CREPAC ALTERNATE
(November 2010 - November 2011)
Terriann McGowan, Region 4
Barbara J. Palmer, Region 10
Debbie Rodgers, Region 11
Frank Nelson, Region 14
Gregory Pawlik, Region 17
Marjorie McLaughlin, Region 24
Geoffrey Craighead, Region 25
James Irving, Region 31
2. It was reported for information only that CREPAC contributed $553,400 to bi-partisan candidates for State Assembly and State Senate campaigns, and that CREPAC contributed $406,500 to the Democratic and Republican Parties.
3. It was reported for information only that CREIEC (California Real Estate Independent Expenditure Committee) contributed $1,835,694.00 for the 2010 Primary and General Election.
Housing
1. That C.A.R. “SPONSOR” legislation to extend the fee limitation of existing law (California Civil Code 1368) to companies retained by HOAs that provide requested documents/materials required of HOAs under current law.
2. That C.A.R., in conjunction with NAR, “OPPOSE” the creation of a National Down Payment Assistance Program.
3. That C.A.R., in conjunction with NAR, “OPPOSE” the imposition of any new private transfer fees, but allow for federal financing of properties with existing private transfer fees.
4. That C.A.R., in conjunction with NAR, seek to extend the current Temporary FHA condo Approval Requirements that are set to expire at the end of the year.
These are:
a. Maintaining the FHA concentration level at 50% and not letting it decrease to 30%.
b. Pre-sale requirements be maintained at 30% and not increase to 50%.
In light of current economic conditions, FHA should reconsider some of its FHA approval criteria specifically:
a. Raising the cap on the percentage of units one entity may own from the current 10 percent.
b. Raising the cap on the percentage of units that can be in arrears (more than 30 days past due) from the current 15 percent.
c. Create an “excellent buyer exception.” The WG believes if the homebuyer in the transaction is an excellent buyer, FHA should make the condo qualifying requirements less restrictive. The WG felt FHA should work to get this type of homebuyer into condominium projects to help stabilize them.
IMPAC Trustees
1. That the following Nominees for IMPAC Trustee and Alternate be elected.
NOMINEES FOR IMPAC TRUSTEE
(November 2010- November 2013)
Paula Colombo, Region 3
Mary Chatton Brown, Region 5
Alice McCain, Region 18
Richard Tegley, Region 23
Leslie Munger, Region 28
NOMINEES FOR IMPAC ALTERNATE
(November 2010 - November 2011)
Tracy Shumard, Region 1
Anita Thede, Region 6
Lisa Muetterties, Region 7
RoseMarie McNair, Region 10
Lynn Heintz, Region 12
Patricia Douglas, Region 17
Carl San Miguel, Region 19
Paula Cosenza, Region 32
2. It was reported for information only that IMPAC has approved the following requests:
--$50,000 to the group Citizens Protecting the Rights of Property Owners (CPRPRO) towards previous and current legal fees incurred in a fight to preserve property owner's the rights to both Private Home Rentals (PHRs) and 1031 exchanges associated with vacation rentals in the City of Big Bear Lake.
--$10,000 to the Silicon Valley Association of REALTORS® for the No on Measure Q campaign. A ballot box planning measure. Interboard solicitations were also authorized.
--$65,000 to the Save our Rural Economy campaign to stop proposed downzoning in San Diego County. Interboard solicitations were also authorized.
3. It was reported for information only that IMPAC will send a letter to local associations who have not used their IMPAC funds in a two-year period, alerting them to the possible uses of their Local IMPAC funds.
4. It was reported for information only that IMPAC will create a working group to determine the best approach to communicate the availability and use of State and Local IMPAC funds.
Legal Action Fund Trustees
1. It was reported for information only that, since the June meeting, the following action has been taken:
The Trustees approved $60,000 to fund filing a copyright infringement case to protect C.A.R.’ s forms against a company that has included C.A.R. forms in its software without authority.
2. It was reported for information only that, in the case of Harrison v. Sierra Dawn HOA, relating to whether a Homeowner’s Association can amend the governing documents of the Association to restrict rental activities the case was lost on appeal in an unpublished case. The parties sought review before the California Supreme Court which was denied. Shortly thereafter, the C.A.R. sponsored bill AB 1927 on this same subject was vetoed by the Governor.
Legislative
1. That C.A.R. adopt the following positions on upcoming state ballot propositions:
November 2010
Proposition 21: State Parks and Wildlife Conservation Trust Fund Act. Initiative Constitutional Amendment. “NOT REAL ESTATE RELATED”
Proposition 22: Local Taxpayer, Public Safety and Transportation Protection Act of 2010. Initiative Constitutional Amendment. “NEUTRAL”
Proposition 23: Suspension of AB 32, Green House Gas Emissions Reductions Rules and Regulations. Initiative Constitutional Amendment. “NEUTRAL”
Proposition 24: Repeal Corporate Tax Loopholes Act. Initiative Constitutional Amendment. “NOT REAL ESTATE RELATED”
Proposition 25: Passing the Budget on time Act of 2010. Initiative Constitutional Amendment. “NOT REAL ESTATE RELATED”
Proposition 26: Increase the Vote Requirement for State Levies and Charges to Two-Thirds. Initiative Constitutional Amendment. “NEUTRAL”
Proposition 27: A proposed constitutional amendment to return control of the drawing of legislative districts to the legislature. “NOT REAL ESTATE RELATED”
2012 Ballot Measures
An as yet unnumbered Proposition for the 2012 ballot to change legislative term limits. “NOT REAL ESTATE RELATED”
An as yet unnumbered Proposition entitled HOPE 2010 California Cancer Research Act. Initiative Constitutional Amendment. “NOT REAL ESTATE RELATED”
Note: C.A.R. has previously taken the following positions on upcoming state ballot propositions:
Proposition 19: “The Regulate, Control, and Tax Cannabis Act of 2010.” “AGAINST” (November 2010)
Proposition 20: “Voters First Act for Congress,” which would subject Congressional redistricting to the same commission that redraws state legislative districts. “NOT REAL ESTATE RELATED” (November 2010)
An as yet unnumbered Proposition entitled Safe, Clean, and Reliable Drinking Water Supply Act. “NEUTRAL” (2012 Ballot)
Membership
1. That the following applicants be granted C.A.R. Honorary Member-for-Life status:
Amador County AOR
Elaine Rebello
Arcadia AOR
Retha Wells
Bakersfield AOR
Ben Batey
Paul Wagner
Bay East AOR
Lillian Cozart
Pat Fracisco
Emil Oxsen
Will Schwenning
Berkeley AOR
Barbara Conheim
Marilyn Pursley
Beverly Hills/Gtr LA AOR
Ron Abrams
Peter Chorebanian
Inga Cohen
Asher Dann
Elinor Davis
Bernice Epstein
Richard Franklin
Thomas Gilleran
Theodora Kinder
Victoria Lockwood
Delphine Mann
Marjorie Oswald
Jerry Oubre
Adda Smilove
Lillian Wyshak
Big Bear AOR
John Reynen
California Desert AOR
Fred Cimino
Mary Cross
Robert Lee Horn
Central Valley AOR
Sarkis Babayans
David Dinubilo
Lorrie Docter
Eugene Guzman
Paul Jacobs
Bob Riggs
Donna Strickler
Howard Triplett
Chico AOR
Lois Cooper
Coastal Mendocino AOR
Arthur Love
Conejo Simi Moorpark AOR
Sandy Kiffe
Curtis Minor
June Murray
Tom Murray
Richard Young
Contra Costa AOR
George Irvin
Delta AOR
Steve Marciel
Desert Communities AOR
George Gibbs
Downey AOR
Judy Jacobson
Maria Larkin
Luis Valdes
East San Diego County AOR
Colleen Chiles
Clara Davis
Doris Fifer
Bob Parker
Greater Antelope Valley AOR
Joyce Axley
Donald Holloway
Delores Julian
Hetch Hetchy AOR
Shirley Colley
Inglewood BOR
Vennie Liddell
Inland Valleys AOR
Dottie Delcoure
Julia Musgrove
Kings County BOR
Betty Ramos
Laguna BOR
Jeanne Devlin
Lodi AOR
Rose Marie Mendonca
Malibu AOR
Richard O'Keefe
Marie Stapel
Jack Stern
Merced County AOR
Dido Krotik
Monterey County AOR
James McPherson
Merle Murphy
Nevada County AOR
Lowell Duval
Clarence Goedicke
Clarice Mumm
Lois Robinson
Irene Starr
Newport Beach AOR
Bonnie Barrington
Mary Lou Kiehler
North Bay AOR
Alice Asper
James Covington
Elma Hart
Pauline Schneider
North San Diego County AOR
Sam Fernandez
Betty Ferrell
Alice Gieseler
Bruce Smitham
Roberta von Voelker
Ojai Valley BOR
Orville Hernvall
Orange County AOR
Manuel Adame
Morlene Atkinson
Dottie Edwards
Mary Jo Eidemiller
Bill Fitzpatrick
Alma Hanneman
Chuck Kenney
Lois KuCala
Cirilo Salazar
Sunny Tamblin
James Webb
Al Yarrington
Pacific West AOR
Dottie Black
Martha Judge
Mary Ann Koster
Leonard Uzan
Pasadena-Foothills AOR
Joyce Kristensson
Placer County AOR
Barbara Clark
Rancho Southeast AOR
Laverne Bates
Cliff Hall
Scott Murdoch
San Francisco AOR
Charles McFadden
Adela Penner
Daniel Powers
Efren Velasco
San Luis Obispo AOR
Lori Jolicoeur
San Mateo County AOR
Leonard Bialer
Jon Cellitti
Claire Earley
George Edsell
Margaret Galante
Patrick Kinsella
Verne Laughton
Robert Marshall
Donald McFarland
Santa Barbara AOR
Sharleen Jessup
Gary Maxwell
Jim Webster
Santa Clara County AOR
Robert Biggs
Angelo De Manti
Santa Cruz County AOR
Harriet Deck
Lisa Laznicka
Susan C. Page
Santa Maria AOR
Sidney Hubbard
Charles Whitford
Shasta AOR
Jack Herrin
Pat Rose
Bob Stone
Silicon Valley AOR
S.Tom Barton
Jenora Lovell
Manuel Macias
Manuel Moreno
Southland Regional AOR
Chester Anderson
Patricia Chiarodit
Marian Curran
Fred Darian
Carol Fox
Coye Garner
Paul Korb
Rhoda Lambert
Arlene Levand
Ruby Madison
Pamela Mc Donald
Frances Monti
Carolyn Nierman
Patricia Porter
Frank Randa
Mukhtiar Sagoo
Doris Sampson
Pauline Tallent
Adrian Van Rijs
Temmy Walker
Gage Wilson
Southwest Los Angeles AOR
Herman Ward
Tulare County AOR
Albert Machado
Louise McFatridge
Jackie Pemelton
Tuolumne County AOR
Norman Beyer
Bill Horne
Sunny Seabrook
Ventura County Coastal AOR
Rachel Adame
Jennie Ballard
Donna Campbell
Randy Churchill
Donald Dawson
Paul Hawblitzel
Esther Hylan
Irving Rabowsky
Victor Valley AOR
William Alves
Yolo County BOR
Jack Willis
Yosemite Gateway AOR
Thomas Kroon
Janet Morriset Morris
MLS/Computer and Business Technology
1. That, upon final approval by NAR, the C.A.R. Model MLS Rules be revised to clarify proper listing compensation procedures as follows:
7.15.2 Lender Approval Listings. Compensation offered through the MLS to cooperating brokers on listings which require lender approval (commonly referred to as “short sale” listings) is for the amount published therein unless the listing broker indicates on the MLS the following: (a) the fact that the sale and gross commission are subject to lender approval; and (b) the amount or method by which the compensation offered through the MLS will be reduced if the lender reduces the gross commission. This section does not allow an additional reduction from the commission offered for items such as a short sale negotiator fee or other administrative costs of the transaction. Any reductions from the commission offered for such items should be factored in as a reduced amount the listing broker initially offers to a cooperating broker and may not be made a condition of the offer.
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12.5 Misuse of Remarks. Information in the public remarks shall only relate to the marketing, description and condition of the property. No contact information is permitted, including names, phone or fax numbers, email addresses or website addresses (including virtual tours and transaction tracking URLs). No showing instructions are permitted, including references to lockbox, alarm, gate or other security codes, or the occupancy of the property (a statement that the property shall be delivered vacant is not a violation of this section). No information directed toward real estate agents or brokers, including compensation or bonuses offered to cooperating brokers may be shown in public remarks. No information other than the marketing, description and condition of the property is permitted. Participants and Subscribers may not use the remarks in a property data profile sheet or listing submitted to the MLS or inputted directly into the MLS database for purposes of disparaging other real estate agents or conveying information about other offices or for conveying any other information that does not directly relate to the marketing of the listing. Participants and Subscribers may not use the remarks to obscure or hide the actual amount of commission offered in the required field of compensation.
2. That, upon final approval by NAR, the C.A.R. Model MLS Rules be revised in accordance with the recommendations of the MLS Rules Work Group as follows:
a. That intellectual property updates, clarifications and protections including Data Base, Copyright and Other Issues be included in the Model MLS Rules;
b. That the photo rules be amended (i) to require written authorization from the prior listing broker or other appropriate party with the legal right to reproduce and display such photographs, (ii) to prohibit branding of photographs, virtual tours or any other photographic representations, including displaying/adding additional images, including but not limited to photos displaying “for sale” signs posted on the property and (iii) to mandate that at least one (1) photo or graphic image accurately displaying the listed property (except where sellers expressly direct that photographs of their property not appear in MLS compilations) be required to be posted on the MLS within 3 days of submission of the listing in all categories other than business opportunity;
c. That a rule be added to require Participants or Subscribers to be present on the property at all times when enabling access to a listed property unless the seller has consented otherwise;
d. That additional lockbox and key use rules be added providing (i) that key use and the contents of a lockbox only be used for the purpose of facilitating sale or lease of listed property, (ii) that a lockbox be removed within (1) day after escrow closes or expiration/cancellation of the listing since the operative listing agreement is no longer in place and (iii) that Participants and Subscribers who utilize lockboxes (and so indicate on the MLS) be required to use the designated or authorized lockbox required by the MLS where the listing is submitted;
e. That the Model’s generic “active” “pending” “sold” statuses be replaced with the defined and comprehensive approach set forth in the IBP;
f. That the Model VOW rules (i) limit the number of listings which can be displayed to 500 current (and 500 sold since VOWs rules are required to allow solds) per inquiry and (ii) require reconfirmation of a password every 90 days.
3. That, upon final approval by NAR, the Model Citation Policy be adopted into the C.A.R. Model MLS Rules.
Nominating
1. It was reported for information only that revisions were made to the Nominating Committee Confidentiality Agreement. Further changes have been proposed to the C.A.R. Campaign Guidelines, which will be presented at the Winter Business Meetings in January of 2011.
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.:
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
Note: The following REBS Directors have continuing terms:
David Cabot, San Diego, Prudential Realty
Annette Graw, Manhattan Beach, South Bay Brokers
Heidi Rickerd-Rizzo, Napa, Terra Firma Global Partners
Joel Singer, Los Angeles, California Association of REALTORS®
Jeannette Way, Vacaville, Gateway Realty
We thank the following REBS Director whose term is expiring:
Linda Lang, Laguna Hills, Orange County Association of REALTORS®
Standard Forms Advisory
1. It was reported for information only that there were 7 Regional Representatives present at our Standard Forms Advisory Committee (SFAC) meeting. None of the representatives had any reports regarding Standard Forms. The SFAC reviewed drafts of 1 new and 15 revised forms scheduled for release in November 2010, including the new Short Sale Information Advisory (SSIA) which will replace the Short Sale Listing Agreement (SSL). A few minor changes to the draft forms were approved. The committee also received a status update regarding the work from the Property Management Study Group. The proposed forms from this study group will be considered by the SFAC prior to our next business meetings. Additionally, the SFAC was provided with a copy of the updated Combined Earthquake Hazards booklet which now includes the Homeowner’s Energy Rating Systems (HERS) booklet. Finally, it was reported that the SFAC reviewed all of the approximately 57 comments received.
Strategic Planning & Finance
1. That the Statement of Operating Income and Expenses by program for the eight months ending August 31, 2010 be approved.
Total C.A.R.
Operating Revenue of $23,576,600
Operating Expenses of $16,196,300
An excess of operating income over expenses of $7,380,300
Political Activities Fund
An excess of income over expenses of $2,230,800
Issues Action Fund
An excess of income over expenses of $1,130,800
The C.A.R. Balance Sheet as of August 31, 2010
Total assets of $67,204,100 (of which $51,051,600 are current assets)
Total liabilities of $3,925,100 (of which $3,244,100 are current liabilities)
C.A.R. Fund Balance of $63,279,000
2. That the Projected Statement of Operating Income and Expenses by program for the year ending December 31, 2010 be approved.
Total C.A.R.
Operating Revenue of $27,203,900
Operating Expenses of $25,878,400
An excess of operating income over expenses of $1,325,500
Political Activities Fund
An excess of income over expenses of $1,729,400
Issues Action Fund
An excess of income over expenses of $704,500. This amount will be allocated to IMPAC as approved by the Directors.
3. To approve a 2011-2013 Strategic plan and 2011 budget with the following criteria:
a. C.A.R. Operating Revenue of $25,069,100
C.A.R. Operating Cost $25,990,700
Net Deficit (Before Investment Income)* : $921,600
b. Political Activities Fund Revenue $1,550,000
c. Issues Action Fund Revenue $1,550,000
Issues Action Fund Transfer to IMPAC $862,900
d. REALTOR® Action Assessment: $7,596,000
e. 122.5 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 (predicate on 2011 year end membership of 168,000)
g. New member fee be set at $30 per new member
h. A 2010 Capital Budget (funded with Association reserves) totaling $850,000
* Due to the variability of Investment returns, no projection has been included for this item. However, projected investment income for 2010 is $1.1 million, an average return of 3 percent. In 2011, the portion of the reserves subject to investment returns will be increased by both this year’s addition to reserves and actual returns.
4. To approve for members in areas not serviced by local associations and additional $30 in membership dues. This amount would be in excess of the dues approved for members coming through the local associations.
5. That $194,000 be approved for an additional two percent pension contribution to the C.A.R. and REBS employee pension plan for 2010, augmenting the previously approved budget of 10 percent.
6. That an additional $15,000 be allocated from the 2010 budget to provide REALTORS® with a voluntary customer satisfaction system, augmenting the previously approved budget of $35,000.
7. That an additional $96,100 augmentation be added to the 2010 capital budget, which will be funded with Association reserves.
Taxation & Government Finance
1. That C.A.R. change its position to “SUPPORT” legislation resurrecting the senior citizens and disabled citizens property tax postponement program.
Transaction & Regulatory
1. That C.A.R. “SPONSOR” legislation similar to SB 1178 (Corbett) that will expand the anti-deficiency protections that are currently available for purchase money mortgages to a loan refinancing the debt, or additional mortgage debt incurred to acquire, construct or improve the home.
2. That C.A.R. “SPONSOR” legislation to implement the office manager registration recommendation proposed in the DRE Broker Supervision Task Force.
The legislation would provide that:
a. An individual Broker or designated officer of a corporation can employ associate real estate brokers or qualified salespersons to manage and supervise branch office operations, divisions and other salespersons in accordance with rules procedures and systems established by the principal broker to establish operations.
b. There must be a broker/manager contract between the principal broker and the manager detailing the duties to be performed.
c. No real estate salesperson with less than two years full time experience shall be eligible to be appointed.
d. No holder of a restricted license shall be eligible to be appointed.
e. The principal broker shall notify the DRE of the appointment in a format specified by the Commissioner.
f. The designated manager shall be subject to disciplinary action, potentially along with the appointing broker or corporate officer, for failing to properly supervise the licensed activities performed within his or her area of responsibility.
3. That C.A.R. “SPONSOR” legislation to allow DRE to issue citations for minor infractions, the penalty for which could be a fine up to $1000. The legislation would provide that the citation could be appealed by a licensee through the current hearing process, and that there would be no public record of the citation.
Other
1. The following individuals were recognized for their outstanding service to the Association in 2010.
2010 Committee Liaisons
Kevin Brown
James Ezell
Annette Graw
Greg Haas
Jim Hamilton
Emily Link
Suzanne Yost
2010 Outstanding Committee Chairs
Irma Vargas, Chair, CREPAC Trustees
Mike Silvas, Chair, CALMLS Subsidiary
2010 President’s Award
Wendy Furth, Chair, REALTOR® Action Fund
