CALIFORNIA ASSOCIATION OF REALTORS®
BOARD OF DIRECTORS
509th SESSION
JANUARY 30 - 31, 2004
The following is a summary of the significant action items approved by the CALIFORNIA ASSOCIATION OF REALTORS® Board of Directors at its January 2004 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. For more information please contact Pauline Avila at paulinea@car.org.
C.A.R. Scholarship Foundation
1. It was reported for information only that funds were awarded for
scholarships totaling$15,000.
California REALTOR® EXPO Advisory
1. It was reported for information only that the California REALTOR® EXPO
2004 would be held in Santa Clara from October 5 to 7, 2004.
Common Interest Development
1. That C.A.R. seek to amend a California Law Revision Commission
legislative proposal which will statutorily memorialize case law for
homeowner association architectural review procedures. The amendment
would require homeowner associations to act as soon as reasonably possible
concerning requests from homeowners to make architectural modifications.
CREPAC Trustees
1. It was reported for information only that the CREPAC Trustees are
transferring $400,000 to RPAC from the CREPAC/Federal account toward
California's 2004 "Fair Share Goal" of $598,000.
2. It was reported for information only that, in order to encourage maximum
political participation and attendance at the 2004 C.A.R. Legislative Day
Meetings in Sacramento, CREPAC has continued to approve the use of local
BORPAC funds for travel costs to send non-C.A.R. Directors to this meeting
only.
Executive Committee
1. Resolutions of Appreciation were adopted to honor 2003 President Toby
Bradley and 2003 California Distinguished REALTOR® Award Recipient Annette
Graw.
2. A Resolution was adopted to express congratulations to Eugene Conser,
former Executive Vice President of C.A.R. and N.A.R., on the occasion of
his one hundredth birthday.
3. The following Presidential appointments were approved:
Executive Committee:
Ann Pettijohn, Pacific West, President
Jim Hamilton, South Bay, President-Elect
Colleen Badagliacco, Santa Clara, Treasurer
Joel Singer, Los Angeles, Executive Vice President (Ex-Officio)
Toby Bradley, Santa Barbara
Mike De Leon, Pacific West
Jimmy Espinoza, Inland Valleys
Liz Anderson-Fitzgerald, Orange County
Steve Hanleigh, Santa Clara, RC
Roger Holtsclaw, East San Diego County
Hanna Knapp, Victor Valley
Chris Kutzkey, Siskiyou County
Linda Lang, Orange County, AE
Tim Muetterties, Calaveras County
Richard Sax, San Francisco
John Yen Wong, San Francisco
Cynthia Wood, North Bay
Directors at Large:
Anthony Agurs, E. San Diego County
Gill Bordenave, No. California Commercial
Roberta Miller-Byford, Paso Robles
Billie Jean Chadwick, Lompoc Valley
Vicki Cook, Shasta County
Jackie Crowley, Palos Verdes Peninsula
Susan Davis, Fresno
West De Young, Pasadena-Foothills
Mindy Hart, Alameda
Ruth Hayles, Southwest Los Angeles
Suzanne Heil, Tehachapi Area
James Irving, Paso Robles
Janene Klocek, Yucaipa Valley
Judith Kritz, Rim O' The World
Shelley Lawrie, Santa Cruz
Dennis Mason, Plumas County
Frank Nelson, Corona Norco
Karen O'Brien, Rim O' The World
Anita Thede, Berkeley
Ron Tornell, Conejo Valley
Scholarship Foundation Trustees
Tom Berge, West San Gabriel Valley
Oral L. Brown, Oakland
Luciellen Eckhardt, Lassen County
Legal Action Fund Trustees
Kathy Mehringer, Conejo Valley
Vern Hansen, San Francisco
Suzanne Yost, Santa Cruz
Federal Issues
1. It was reported for information only that Committee Leadership will
coordinate with staff, C.A.R.'s leadership team, and N.A.R. to ensure that
California interests are equitably considered in decisions of the federal
Base Reallocation and Closure (BRAC) commission.
Housing Affordability
1. That C.A.R's Housing
Affordability Committee to be renamed to the Housing Opportunity
Committee.
2. That C.A.R. "OPPOSE UNLESS AMENDED" legislation proposing to change
state law on wood roof replacement requirements. The amendments would
provide: a) enforcement shall not be tied to point-of-sale; b) class "A"
roof materials shall only be required in clearly identified high fire
zones; c) for a delayed implementation date for common interest
developments.
Housing Affordability Fund
1. It was reported for
information only that the Housing Affordability Fund Committee approved the
following funding requests at the January 28, 2004 meeting:
--Santa Barbara AOR - Habitat for Humanity project...$50,000
--Bay East AOR - Habitat for Humanity project...$50,000
--Shasta AOR/Tehama AOR - Habitat for Humanity...$50,000
--Beverly Hills/Greater Los Angeles AOR - Senior Rental Housing...$50,000
IMPAC Trustees
1. It was reported for information only that the State IMPAC Trustees
approved the following contributions at the January 28, 2004 meeting:
--Civil Justice Association of California (CJAC)--for annual C.A.R.
membership in this statewide association, which is dedicated to reforming
California's liability laws and the civil justice system...$15,000.
--Pacific Legal Foundation (PLF)--for its Property Rights Defense Fund,
which helps establish favorable legal precedent to reinforce the
constitutional protections of private property rights...$15,000.
--Californians Against Higher Taxes--No on Proposition 56, to help defeat
the ballot measure on the March 2, 2004 statewide ballot, which would make
it easier for the State Legislature to raise taxes by lowering the
legislative vote threshold from 2/3rds to 55 percent...$100,000.
--Rural Urban Ranches & Agricultural League--No on Proposition A in San
Diego County (pursuant to the request of the five local Associations of
REALTORS® in San Diego County), to help defeat a growth control measure on
the March 2, 2004 local ballot that would downzone most of San Diego
County's rural lands, locking in the county's general plan, and requiring a
countywide vote to amend it...$150,000.
(Note: The San Diego local Associations were also authorized to conduct an
Interboard Solicitation for local IMPAC funds.)
2. It was reported for information only that the State IMPAC Trustees
approved the following contribution by conference call on December 10,
2003:
--Californians Against Shakedown Lawsuits, to support a statewide ballot
initiative reforming Business and Professions Code Section 17200, the
Unfair Competition Law, pursuant to the request of the Civil Justice
Association of California (CJAC)...$100,000.
Land Use and Environmental
1. That C.A.R. "FAVOR"
H.R. 3529 (McKeon), federal legislation that would cancel two specific
Bureau of Land Management sand and gravel mining leases for lands in
Soledad Canyon, and impose conditions for future mining in the area, which
is near the City of Santa Clarita in Los Angeles County.
2. That C.A.R. "SUPPORT" the proposed Delta Improvements Package, which is
the first major implementation package of statewide significance within the
CalFed program for improving the Sacramento-San Joaquin Bay Delta, by
participating in a coalition called California's Water Future.
Legal Action Fund
1. It was reported for information only that the Legal Action Fund Trustees
are monitoring the following significant legal cases:
--Freeman v. Sandicor (Freeman II)
--Freeman v. Lasky (Freeman III)
Legislative
1. That C.A.R. SUPPORT the "Stop Shakedown Lawsuits" initiative campaign
and take a "FOR" position on the initiative that is sponsored by CJAC
(Civil Justice Association of California) and other business groups to
restrict so-called "17200" lawsuits.
2. That C.A.R. propose an amendment to Department of Real Estate
regulations governing professional use of nicknames by sales agents that
will allow licensees to use any name submitted to the DRE database that can
be searched in the same way as the name in which the license was
issued.
3. March 2004 Ballot Propositions:
--That C.A.R. take a 'FOR" position on Proposition 55: The
Kindergarten-University Public Education Act of 2004
--That C.A.R. take a "FOR" position on Proposition 57: The Economic
Recovery Bond Act
--That C.A.R. take a "FOR" position on Proposition 58: The California
Balanced Budget Act
Note: In October 2003 the C.A.R. Board of Directors adopted an
"AGAINST" position on Proposition 56: The Budget Accountability
Act.
4. It was reported for information only that the Committee directed staff
to prepare background information for later consideration on the issues of
license "portability" and reciprocity and the imposition of an
apprenticeship period for new broker licensees that have not previously
held a salesperson license.
Membership
1. That the following applicants be granted C.A.R. Honorary-Member-For-Life
status:
Bakersfield AOR
Charlotte Brock
Ken Lifquist
California Desert AOR
Myrl Whitesell
Lompoc Valley BOR
Elinor F. Gray
Malibu AOR
Beverly A. Beal
Daphne Hart
Elsie Muslin
Mariposa County BOR
Elna Philbert
Nevada County BOR
John W. Morgan
North Bay AOR
Donald Glickson
Gerald Shaughnessy
North San Diego County AOR
Margaret M. O'Driscoll
Dorothy Paterson
Northern Solano County AOR
Barbara Elfers
Arlene Jones
Orange County AOR
Lillian Blind
Oroville AOR
Jo Ann "Skip" Johnson
Marion Millington
Pacific West AOR
Shirley Adele English
Jeane N. Keslinke
Pasadena-Foothills AOR
Beverly Odessa McAdam
Rancho Southeast AOR
Esther Clark
Jean La Carte
Vera Shepard
Ray Smith
Nelson Vidal
San Diego AOR
Wayne Bank
Barbara Bigley
Charles Free Blane
Harriette M. Chandler
Earl C. Craig
Renee Feinswog
Elizabeth Fish
E. Ray Gokenbach
Ruth M. Gruber
Thomas E. Hom
Richard E. Huber
Julia H. Keelin
Robert K. Kleege
John P. Meek
William J. Philips
Gunter Radelow
Jacqueline Lois Schaap
Barbara S. Silldorf
Bernard K. Sloane
George E. Smith
Stanley R. Smith
Rose Y. Steadman
Thomas G. Subia
San Mateo County AOR
Juliette Silver-Goldman
Santa Clara County AOR
Jack M. Stanley
Silicon Valley AOR
Lorrie Gilligan
South Bay AOR
Edward M. Brown
Ray Falk
Robert Gennaria
Southwest Riverside County AOR
Darrell D. Clarkson
West San Gabriel Valley AOR
Ben Avila
Christine Y. Lombardo
MLS/Computer & Business Technology
1. That, subject to N.A.R. approval, the proposed additions to and
revisions of the C.A.R. Model MLS Rules be adopted as set forth
below:
(The proposed additional language is underlined)
7.12 Unilateral Contractual Offer; Subagency Optional. In
filing a property with the MLS, the broker participant makes a blanket
unilateral contractual offer of compensation to the other MLS broker
participants for their services in selling the property. Except
as set forth in Rule 7.15 below or pursuant to California Civil Code
Section 1087, a broker participant must specify some compensation to be
paid to either a buyer's agent or a subagent and the offer of compensation
must be stated in one, or a combination of, the following forms (1) a
percentage of the gross selling price; or (2) a definite dollar
amount. The amount of compensation offered through the MLS may not
contain any provision that varies the amount of compensation offered based
on conditions precedent or subsequent or on any performance, activity or
event. Furthermore, the MLS reserves the right to remove a listing
from the MLS database that does not conform tothe requirements of this
section. At the broker participant's option, a broker participant may
limit his or her offer of compensation to buyer's agents only, to subagents
only, or make the offer of compensation to both. Any such limitations
must be specified on the property data form and in the MLS. The
amount of compensation offered to buyers' agents or subagents may be the
same or different but must be clearly specified on the property data
profile sheet. Broker participants wishing to offer subagency to the
other MLS broker participants must so specify on the property data profile
sheet and on the MLS, otherwise, the offer of compensation does not
constitute an offer of subagency.
Note: N.A.R. has approved the rules so this amendment is now a part of
the California Model MLS Rules
Political Affairs
1. It was reported for information only that the Political Affairs
Committee's 2004 goal is $2.8 million and a 35% participation rate by all
REALTORS® in Political Survival.
2. It was reported for information only that the Political Affairs
Committee has requested that the Political Activities Fund conduct a study
to determine the effectiveness of the term "Political Survival."
3. Political Fundraising Awards were presented to the top ten lifetime
contributors to C.A.R.'s political action funds, and to the Associations
which had shown the greatest increase in their percentage of
participation.
4. A special award was presented to 2003 Political Affairs Committee Chair
Jim Liptak in recognition of his outstanding efforts in helping C.A.R.
reach a record of $2.5 million in total contributions.
Property Management
1. That C.A.R. "OPPOSE UNLESS AMENDED" SB 115 (Torlakson), a bill that
would prohibit a landlord from requiring cash as an exclusive payment of
rent or deposit of security. The amendment will require the issuance
of a receipt upon the payment of rent during normal business hours if a
landlord requires payments of rent or security other than by personal
check.
2. That C.A.R. "OPPOSE UNLESS AMENDED" SB 1145 (Burton), a bill on landlord
and tenant. The amendments would provide: 1) that if the payment of
rent is mailed, it shall be postmarked on or before the date it is due if
it is mailed within California and it must be postmarked at least 5 days
prior to when rent is due if rent is mailed outside the state; 2) the
sunset clause of 1/1/06 shall not be removed concerning a law which
requires 60 days notice to terminate a residential tenancy given specified
conditions.
3. That C.A.R. "OPPOSE UNLESS AMENDED", AB______ (Lieber), a bill that
proposes to substantially limit a landlord's ability to demand private
information from existing tenants. The amendment will allow landlords
to require legitimate and necessary information from existing tenants which
includes changes in employment status occupants, name, and phone
number.
4. That C.A.R. "OPPOSE UNLESS AMENDED" AB______ (Lieber), a bill that would
require landlords to modify residential rental notices issued in accordance
with Civil Code Section 1946, 1954, or Civil Code of Procedure 1161 to be
in at least 18 point type for visually impaired tenants. The
amendments would: a) only allow the visually impaired to designate a person
of suitable age to receive the notices and; b) oppose a change in law
compelling landlords to modify numerous contracts as specified.
5. The Board of Directors defeated a proposal that C.A.R. amend
its sponsored bill, AB_______ (Canciamilla), a bill on condominium
conversions in rent control communities. The proposed amendment would
have required landlords to provide a 10% downpayment for tenants purchasing
their units if the tenant purchases the unit at the time of
conversion.
Real Estate Finance
1. That C.A.R. "SUPPORT" S.1928, a federal anti-predatory lending bill
containing case-by-case review of a borrower's ability to repay the loan
and no assignment of liability.
2. That C.A.R., in conjunction with N.A.R., work with the Department of
Veterans Affairs on the VA Appraisal Roster System and recommend that VA
implement the following: A) a National Standard of 5 to 7 days for
completing VA appraisal assignments, B) a National Standard of
Accountability for VA appraisals that is uniformly enforced nationwide, and
C) a National Process whereby all appraisal appeals are conducted by an
independent third party within 10 days. In addition, C.A.R. will
encourage N.A.R. to pursue a change in the selection of appraisers from a
rotational basis to a choice by the lender from the VA approved list.
3. That C.A.R., in conjunction with N.A.R., work with HUD to modify its
existing reporting requirement pertaining to the FHA commitment authority
and report biweekly the status of FHA loan activity once the 75% threshold
level has been reached.
4. That C.A.R. support legislation which would prohibit credit score models
from adversely affecting a consumer's credit score when the consumer
receives or checks the accuracy of his or her credit report.
Strategic Planning & Finance
1. That the Statement of Income and Expenses by program for the eleven
months ending November 30, 2003, be approved.
Total C.A.R.
-- Revenue of $21,147,800
-- Expenses of $16,840,800 (including Federal Income Tax)
-- An excess of income over expenses of $4,307,000
Political Activities Fund
An excess of income over expenses of $642,400.
Issues Action Fund
An excess of income over expense $670,800
The C.A.R. Balance Sheet as of November 30, 2003
-- Total assets of $22,811,700 (of which $16,491,500 are current
assets)
-- Total liabilities of $2,780,600 (of which $2,712,700 are current
liabilities)
-- C.A.R. Fund Balance of $20,031,100
2. That the Projected Statement of Income and Expenses by program for the
year ending December 31, 2003 be approved.
Total C.A.R.
-- Revenue of $21,603,000
-- Expenses of $19,305,600 (including Federal Income Tax)
-- An excess of income over expenses of $2,297,400
Political Activities Fund
An excess of income over expenses of $551,100
Issues Action Fund
An excess of income over expenses of $612,300. This amount will be
allocated to IMPAC as approved by the Directors.
3. That check signing procedures be approved in conformity with the
C.A.R./HAF Bylaws.
4. That C.A.R. approve a total cost of $70,000 for a study on the
feasibility of creating an in-house litigation team, and on the pros and
cons of creating a mandatory errors and omission insurance requirement for
California licensees.
5. That C.A.R. augment the budget in the amount of $4,550 in orderto fund
the travel of the Commercial Investment Committee chair and up to two
vice-chairs to travel to and attend:
-REALCom 2004 in San Francisco (June 2-4); and,
-Washington D.C. Commercial lobbying visitation jointly sponsored by RCA
(Realtors® Commercial Alliance), IREM (Industrial Real Estate Management)
and CCIM Institute
Taxation
1. That C.A.R. take an "AGAINST" position on any ballot initiative that
would increase the annual property tax rate beyond 1% for commercial
property.
2. That C.A.R., in conjunction with N.A.R., support policy eliminating the
45-day identification period for 1031 exchanges.
3. That C.A.R. support policy that money given for the purpose of
downpayment assistance to a qualified organization be defined as a
tax-deductible charitable contribution and ask N.A.R. for its support on
this issue.
