CALIFORNIA ASSOCIATION OF REALTORS®
BOARD OF DIRECTORS
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 email@example.com.
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.
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.
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:
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
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.
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
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,
--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)
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.
1. That the following applicants be granted C.A.R. Honorary-Member-For-Life status:
California Desert AOR
Lompoc Valley BOR
Elinor F. Gray
Beverly A. Beal
Mariposa County BOR
Nevada County BOR
John W. Morgan
North Bay AOR
North San Diego County AOR
Margaret M. O'Driscoll
Northern Solano County AOR
Orange County AOR
Jo Ann "Skip" Johnson
Pacific West AOR
Shirley Adele English
Jeane N. Keslinke
Beverly Odessa McAdam
Rancho Southeast AOR
Jean La Carte
San Diego AOR
Charles Free Blane
Harriette M. Chandler
Earl C. Craig
E. Ray Gokenbach
Ruth M. Gruber
Thomas E. Hom
Richard E. Huber
Julia H. Keelin
Robert K. Kleege
John P. Meek
William J. Philips
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
Santa Clara County AOR
Jack M. Stanley
Silicon Valley AOR
South Bay AOR
Edward M. Brown
Southwest Riverside County AOR
Darrell D. Clarkson
West San Gabriel Valley AOR
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
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.
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.
-- 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.
-- 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
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
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.