CALIFORNIA ASSOCIATION OF REALTORS®
BOARD OF DIRECTORS
518^th SESSION
JANUARY 19 - 20, 2007

The following is a summary of the significant action items approved by the CALIFORNIA ASSOCIATION OF REALTORS® Board of Directors at its January 2007 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 Us.


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 $13,500.  
 
California REALTOR® EXPO Advisory
1. It was reported for information only that the California REALTOR® EXPO will be held in Anaheim on October 9 - 11, 2007.  The California REALTOR® Showcase will be held in Sacramento on June 6 - 7, 2007.
 
Common Interest Development
1. That C.A.R. develop a consumer information booklet for Common Interest Developments based on the rough draft booklet developed by the CID Committee as framework for that effort.
 
Educational Services Advisory
1. It was reported for information only that the committee has received very positive responseto the recently created C.A.R. Forms Tutor program.  The committee will continue to work with C.A.R. staff to increase member awareness of C.A.R. educational offerings, and to evaluate and develop programs and improve existing programs that benefitthe membership.

Executive
1. That the following 2007 Presidential appointments be approved:

2007 Executive Committee
Colleen Badagliacco, Santa Clara, President
William E. Brown, Bay East, President-Elect
Jim Liptak, Paso Robles, Treasurer
Joel Singer, Los Angeles, Executive Vice President (Ex-Officio)
Kevin Brown, Bay East
Phyllis Carmichael, Silicon Valley
Virginia Field, North San Diego County 
Liz Fitzgerald, Orange County
Dale Gray, Central Valley, AE
Heath Hilgenberg, California Desert
Beverly James, San Luis Obispo
Vincent Malta, San Francisco
Leslie Munger, California Desert
Lisa Muetterties, Calaveras County, RC
David Tanner, Sacramento
SteveWhite, Southland Regional
Kelvin Wong, Arcadia

2007 Directors at Large
Jay Avirom, Montebello District
Patricia Bouie-Hinds, Oakland
Ann Bracci, Alameda
Chris Crocker, Palos Verdes Peninsula
Don D. Davis, Shasta County
Michael Ferlisi, Arcadia
Jeannie Hamann, Solano
Ruth Hayles, Rancho Southeast
Larry Heine, Lake County
Melanie Hildebrand, San Mateo County
Laura Houle, East San Diego County
James Irving, Paso Robles
Dolores Golden, Southwest Los Angeles
Rose Marie McNair, Santa Cruz
Kathy Mehringer, Conejo Valley
Karen O'Brien, Rim O' the World
Elaine Pettersen, Ventura County Coastal
Lenny Sciacca, Tulare County
Bruce Southstone, Santa Cruz
Anita Thede, Berkeley

C.A.R. Scholarship Foundation/C.A.R. Education Foundation (2007-2011)
John Chufar, Santa Barbara
Tracy Shumard, Humboldt County

Legal Action Fund Trustees (2007-2011)
Bob Hunt, Orange County
Clay Sigg, Sacramento

2. That a Resolution of Appreciation for 2006 President Vince Malta be approved.
3. That a Resolution of Appreciation for Larry Fargher, Recipient of the 2006 California Distinguished REALTOR® Award, be approved.

Federal Issues
1. That C.A.R. recommends to NAR that NAR continue to explore the issue of creating a new U.S. retirement visa designation.
2. That C.A.R., in conjunction with NAR, pursue a small business exclusion in any federal data privacy legislation and oppose federal preemption of state data privacy laws.
3. That C.A.R., in conjunction with NAR, adopt a neutral position on proposed "net neutrality" provisions in any federal telecommunications legislation.

Housing Opportunity
1. That C.A.R move forward with the previously approved "spot" bill in cooperation with the League of Cities to direct the Department of Housing and Community Development to define the factors and findings regarding neighboring area housing needs that must be used whenever a housing project is disapproved or downsized.

NOTE: During the October 2006 meeting the Board of Directors approved a motion to introduce a C.A.R. SPONSORED "spot" bill to require local governments that reduce the number of proposed lots in asubdivision to adopt findings and declarations demonstrating the impact the reduction has on adjacent communities.

IMPAC Trustees
1. It was reported for information only that the IMPAC Trustees approved the following contributions:
--$17,500 to the Civil Justice Association of California for annual membership dues
--$17,500 to the Pacific Legal Foundation's litigation program in defense of private property rights
--$20,000 to the California Natural Resources Group to supportreforms of the Endangered Species Act
--$25,000 to the Residents Against Planning Restrictions to oppose a no-growth initiative in the city of Sierra Madre at the request of the Arcadia Association of REALTORS®
--$120,000 to fund an earned media/education campaign to support the passage of C.A.R. sponsored legislation on Private Transfer Tax.

Land Use and Environmental
1. It was reported for information only that the Land Use and Environmental Committee recommended that the Standard Forms Advisory Committee consider adding disclosure language regarding the Williamson Act into the statewide buyer/seller advisory form.
 
Legislative
1. That C.A.R. sponsor legislation to require a separate seller disclosure to potential home buyers as to whether the home they are considering purchasing requires the payment of a Private Transfer Tax (PTT), the percentage of the home price constituting the PTT (possibly with dollar amount examples), and/or the duration of the PTT, and that it may potentially affect the future resale value of the property.

Membership
1. That the following applicants be granted C.A.R. Honorary Member-for-Life status:

Arcadia AOR
Elmer Black

Barstow AOR
Carrie Hamilton

Beverly Hills/Greater LA AOR
Shirley Wells

Citrus Valley AOR
Catherine Delva
William Franklin

Conejo Valley AOR
Alexander Manos, Sr.

Delta AOR
Rachel Baldocchi
Nordyn Anderson

Downey AOR
Helen Lancaster
John Waters

Greater Antelope Valley AOR
Michael O'Connor
John Thomas Gardner

Humboldt AOR
Frank Scolari

Kern River-Lake Isabella BOR
Marceille Robbins
Lucille Thornton

Laguna BOR
Genelle McRoberts

Montebello District BOR
Ralph Richard Lopez

Pacific West AOR
Margaret Boyle

Pasadena-Foothills AOR
Beverly Behr
Ljiljana Grozdanic
Ann Elizabeth Pendo

Simi Valley-Moorpark AOR
Helen Schmock

Southland Regional AOR
Barbara Bernhardt
Joseph Carnahan
William Palmer

Sutter-Yuba AOR
Betty Boyd
 
MLS Working Group
1. That C.A.R. authorize the MLS Working Group to develop a detailed business plan to create an aggregated Statewide listing database for review at the June 2007 Business Meeting.
2. That C.A.R. authorize the MLS Working Group to develop a detailed business plan to create a Statewide MLS that would comply with the 6 principles for review at the June 2007 Business Meetings. In addition, local MLS and Associations are encouraged to limit long term contractual commitments extending beyond December 2008.
3. That the Strategic Planning and Finance Committee accelerate their efforts to establish a trusted public site for consumer access to a broad range of consumer real estate needs.
4. That C.A.R.Business Plans should take into consideration the technological and value proposition of current data aggregation initiatives in Northern and Southern California.

Click here to view the complete MLS Statement of Principles as approved by the C.A.R. Board of Directors in September 2005, and the explanations provided by the MLS Working Group (available in PDF format; requires free Adobe Acrobat Reader )

Nominating & Election Task Force
1. It was reported for information only that the mission of the Nominating and Elections Task Force shall be to review the C.A.R. Campaign Guidelines and the procedures utilized by the Nominating Committee to nominate candidates for C.A.R. Officer positions, and make recommendations to the Nominating Committee and the Board of Directors by October 2007 if any changes are proposed.  The Task Force shall focus on the following issues:
--campaign timing and the commencement of formal campaign activities
--candidate endorsements
--encouragement of low key campaigns so thatall qualified candidates have a fair and equal chance to seek office
--enforcement of the campaign guidelines
--the role of the Nominating Committee and of the Nominating Committee Members and Alternates
--opportunities for candidates to present their views and qualifications to the Directors, and for Directors to participate in the election process
--the procedures utilized to conduct a comprehensive evaluation of candidate qualifications, determine that a candidate is qualified, andensure that elected Officers remain qualified during their term of office

The process of nominating and electing Directors for Life, and the process of selecting NAR Directors, are outside of the scope of the charge of the Task Force.
 
Standard Forms Advisory
1. It was reported for information only that the Standard Forms Advisory Committee received reports from 17 regional representatives.  Of note, the Agent Visual Inspection Disclosure form (AVID) was generally supported. The committee heard a request to provide a form to be supplied to escrow or other agencies seeking donations from participants to the real estate transaction for the Housing Affordability Fund.  The committee determined that this request would be better addressed via a promotional flyer found on the C.A.R. website.  The committee approved the recommendation from the Standard Forms Transaction Task Force to adopt the eight guidelines informally used as a standard checklist or worksheet for formsdevelopment.  The balance of the recommendations will be reviewed by the committee at the June meeting.  The committee reviewed two drafts of the Buyer Inspection Elections (BIE) and determined not to proceed with this form.  Additionallythe committee reviewed the issue of how to address private transfer tax within C.A.R. Standard Forms.  Language will be added to the Statewide Buyer and Seller Advisory (SBSA) in April 2007 and possibly the Seller Property Questionnaire (SPQ). The committee also agreed to revise the title of the "Buyer Broker Agreement" forms to "Buyer Representation Agreement."  Two drafts involving manufactured homes were presented.  The Manufactured Home Purchase Agreement Addendum and the Manufactured Home Advisory and Release of Liability drafts were both approved for release in April 2007.  The committee reviewed 22 of the 62 comments received and will hold a follow up conference call to discuss the remaining items.

Standard Forms Transaction Task Force
1. To approve the Final Report of the Standard Forms Transaction Task Force, including the following.

Conclusions and Recommendations:
--Incomplete education and training of agents remains the greatest challenge regarding standard forms and transaction products. C.A.R. should continue to provide training opportunities and materials for brokers, agents and trainers.
--The Task Force recommends that the eight guidelines informally used by the Standard FormsAdvisory Committee when considering or developing new forms be adopted as a standard checklist or worksheet for forms development.
--Requests for new or revised forms may be an early indicator of changes in the marketplace. Standard Forms and Governmental Affairs should coordinate closely to identify needed changes in law or practice.
--C.A.R. should continue to strive to be the single source for transactional forms and not send members to secondary sources. 
--REALTOR® members do not have too many forms so much as they have too many choices in forms. C.A.R. should provide more guidance and education as to which form or series of forms to select.
--Detailed checklists of actions to be taken by licensees in transactions havethe potential downside of changing the legal standard of care. Creating additional transactional activity checklists should be avoided.
--The Task Force endorses the conclusion of the Foreign Language Task Force to concentrate on English language forms. C.A.R. should oppose any attempted mandates to translate additional forms.  The Task Force supports continued availability of multilingual education, consumer and training, materials.Additional Recommendations:
--C.A.R. should continue to pursue development of Relay^TM as the centerpiece of a seamless software "suite" that integrates WINForms® and Real Estate Forms Advisor as a member benefit.
--The next generation of the suite should include locally required (city,county or special district) forms or disclosures. The suite should provide a simplified process to add broker and local association forms.
--The WINForms® catalog should provide a link within each form to the relevant legal article (Q&A) on C.A.R.'s website, and to the explanatory paragraph in the electronic guide to standard forms (Forms Tutor).    
--The C.A.R.  Legal Department should prepare recommended WINForms® libraries of forms in their chronological order of use specific to common sorts of transactions. This series or "library" of forms should be accompanied by the links to information discussed above and should anticipate the same approach in the Forms Advisor software.
--C.A.R.should provide agents with content for their own websites with the goal of educating the public about the transactional process. The material should be available to REALTORS® through the C.A.R. website to link to or download.Forms that should be considered for consolidation include:
--The Statewide Buyer and Seller Advisory (SBSA) should be combined with the Seller's Advisory (SA) and the Buyer's Inspection Advisory (BIA).
--The Seller Property Questionnaire (SPQ) and the Supplemental Statutory and Contractual Disclosure form (SSD) should be combined.
--The Buyer Non-Agency (BNA) and Seller Non-Agency (SNA) forms should be combined.
--The Smoke Detector Statement of Compliance (SDS) and Water Heater Statement of Compliance (WHS) should be combined.
--The Database Disclosure Form (DBD) should be eliminated.
--The Release of Contract (RC) form, having been supplanted by the Cancellation of Contract (CC) form, should be eliminated. 

Strategic Planning & Finance
1. That the Statement of Income and Expenses by program for the eleven months ending November 30, 2006 be approved.
Total C.A.R.
Revenue of $32,990,800
Expenses of $23,018,000
An excess of income over expenses of $9,972,800
Political Activities Fund
An excess of income over expenses of $1,240,300
Issues Action Fund
An excess of income over expenses of $1,205,700
The C.A.R. Balance Sheet as of November 30, 2006
Total assets of $45,481,700 (of which $31,898,300 are current assets)
Total liabilities of $4,126,800 (of which $3,889,400 are current liabilities)
C.A.R. Fund Balance of $41,354,900
 
2. That the Projected Statement of Income and Expenses by program for the year ending December 31, 2006 be approved.
Total C.A.R.
Revenue of $33,165,800
Expenses of $26,737,200
An excess of income over expenses of $6,428,600
Political Activities Fund
An excess of income over expenses of $1,087,400
Issues Action Fund
An excess of income over expenses of $1,121,300.
This amount will be allocated to IMPAC as approved by the Directors. 

3. To approve an augmentation to the 2007 capital budget in the amount of $270,000 to replace the ceilings on the 2nd, 3rd and 4th floors of the C.A.R. headquarters building in Los Angeles.
4. To approve up to $550,000 for implementation of a comprehensive redesign and infrastructure upgrade of C.A.R.'s primary Web site CAR.ORG, and other subsidiary Web sites.
5. To approve $24,000 for C.A.R.'s share of the Single Sign On program.
6. To approve $228,400 for the REALTOR® Value Proposition Proactive Media Campaign. The purpose of the campaign is to address negative images of REALTORS® in the media by developingand implementing a public relations initiative that will demonstrate the REALTOR® value proposition to consumers. The campaign will consist of educating the public about the benefits of using a REALTOR® when buying or selling a home, and demonstrating that REALTORS® are qualified professionals who bring a tremendous amount of value and expertise to the real estate transaction; communicating with C.A.R. members on how they can demonstrate their value to potential customers, and how C.A.R. issupporting their interests.

Taxation
1. That C.A.R., in conjunction with NAR, support income tax-based incentives for employer-assisted housing as part of a housing affordability strategy.
2. It was reported for information only that the Taxation Committee recommended that the President of C.A.R. appoint a task force to research the issue of property tax basis portability, and report to the board in June 2007.