CALIFORNIA ASSOCIATION OF REALTORS®
BOARD OF DIRECTORS
JUNE 7 - 8, 2002
The following is a summary of the significant action items approved by the
CALIFORNIA ASSOCIATION OF REALTORS® Board of Directors at its June 2002
meeting. A complete set of minutes is available for review upon
request. For more information please contact Marleen Schuster at
213-739-8209 or e-mail
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Property Information/MLS Task Force
1. To approve the request of the Property Information/MLS Task Force to
appropriate up to $150,000 to establish phase I of the Intelligent Agent
Application Development Project.
Common Interest Development
1. That C.A.R. "WATCH" AB 555 (Dutra), a bill relating to common interest
2. That C.A.R. "OPPOSE" AB 643 (Lowenthal), a bill that will require all
homeowner associations to be incorporated by January 1, 2003.
3. That C.A.R. "FAVOR" AB 2289 (Kehoe), a bill that allows homeowners the
right to dispute unpaid assessments.
4.That C.A.R. "WATCH" AB 2417 (La Suer), a bill that requires the board of
directors of a common interest development to note in the minutes, the
matters discussed in its executive session.
Land Use and Environmental 1. That C.A.R. join the
California Action on Water, a coalition of California-based groups that
supports federal reauthorization of, and funding for, the CALFED program, a
state-federal partnership working to implement a comprehensive program of
water management for the San Francisco Bay Delta.
2. That C.A.R. "OPPOSE UNLESS AMENDED" SB 1521 (Kuehl), a bill which
requires the creation of model planning practices at the Governor's Office
of Planning and Research. The amendments would:
--Remove all linkages between the model planning practices and state
competitive grant programs for local government.
--Ensure REALTOR® involvement in the Planning Advisory and Assistance
Legal Action Fund
1. That the proposed Legal Action Fund bylaws be noticed for vote by the
Directors at the next meeting.
2. It was reported for information only that the U.S. Supreme Court has
accepted hearing in the Holley v. Meyer case, in which a corporate
owner/officer broker was held personally responsible for the fair housing
violations of a salesperson employed by the corporate brokerage firm.
Very few cases are accepted for hearing before the highest court -- out of
about 6,000 cases every year and only about 1% are accepted for a
hearing. The Holley case was one of two cases accepted that day with
190 rejections. To our knowledge, C.A.R. and NAR were the only
two supporting briefs in the case most likely had a great deal to do with
the Court's acceptance the case for review. The case will now
be briefed for consideration of the Court. The Trustees also
authorized an additional $10,000 to assist with preparation for the U.S.
3. It was reported for information only that the U.S. Supreme Court issued
a 39-page decision in the Tahoe Preservation Council v. TRPA case involving
a "temporary" building moratorium that started in 1981 and still
continues. The case is a set back and muddies the water on land use
takings cases, in effect stating that "temporary" delays prohibiting all
economic use of the property does not necessarily constitute a taking, thus
not requiring compensation. The case was postured so that the
building moratorium under consideration was for 32 months. The
dissent, lead by Rehnquist and joined by Scalia and Thomas, characterized
the facts as a 6-year moratorium, since at the end of the moratorium there
was a court ordered injunction in effect. In reality, the ban on
building continues today more than 20 years after people had purchased
their retirement lots. The decision left some openings, such as a
hint that a one-year moratorium might be too long (although not applicable
in this case), and also hinting that government itself could impose time
limits. This is the first set back in land use cases reversing a
trend of favorable decisions in the last decade.
4. It was reported for information only that in Freeman v. San Diego
(federal case in the U.S. Court of Appeals), the trial court's summary
judgment award to the MLS, Associations and C.A.R. is on appeal to the U.S.
Ninth Circuit Court of Appeals. Oral argument is scheduled for
July 10, 2002 in this antitrust action.
5. It was reported for information only that in McHardy v. Charton
(unpublished California Appellate decision -- malicious prosecution),
the California appellate court upheld the dismissal of a malicious
prosecution lawsuit against a lawyer who sued a real estate agent but then
dismissed herfrom the case. Stating that malicious prosecution is a
disfavored tort, the court held that as long as the case was properly
filed, continuing to maintain the case without cause is not an independent
cause for a malicious prosecution lawsuit. The court also applied an
objective standard to the matter, rather than the subjective view of the
attorney filing the case. The case is not published and therefore
can't be cited as authority.
6. It was reported for information only that in Oakhill Development v.
Tyler, the California Supreme Court did not accept hearing in this
case. The appellate court reversed a specific performance order where
a buyer provided a loan prequalification letter to satisfy the
purchase-contract condition that the buyer prove ability to perform.
Without asking for more information, the seller cancelled the
contract. The buyer alleged bad faith of the seller and had prevailed
at the trial level.
Local Governmental Relations
1. It was reported for information only that the LGR Committee will create
a Working Group to investigate alternatives to inclusionary zoning.
The Working Group will report its findings to the LGR, Housing
Affordability and Land Use Committees.
2. It was reported for information only that the LGR Committee will form a
REALTOR®/GAD Working Group. This group will serve as a strike force
to assist Local Associations on a statewide basis, with proactive anti-rent
control and just cause for eviction strategies. In conjunction with
C.A.R., this body will also serve as a clearinghouse of information
available to all Local Associations.
Manufactured Housing 1. That C.A.R. "SUPPORT" Senate
Bill 1564 (Polanco), which requires the Department of Housing and Community
Development to convene a task force to develop strategies designed to
reduce the cost of financing manufactured housing.
2. It was reported for information only that the Manufactured Housing
Committee will create a working group to study and develop recommendations
concerning the financing of manufactured housing and the potential funding
of a statewide task force on the same topic. The working group will
report back to the Manufactured Housing Committee at the October 2002 Board
of Directors Meetings.
1. That C.A.R. "OPPOSE" AB 2330 (Migden), a bill that would: require the
payment of interest on security deposits; mandate a pre-inspection of the
rental unit prior to the tenant vacating that unit; and prohibit a landlord
from deducting from the security deposit any damage caused by the tenant as
long as the damage occurred through "every day usage."
2. That C.A.R. change its position from "OPPOSE" to "NOT FAVOR" on SB 1403
(Kuehl), if it is amended to:
--Delete the proposed amendment that would delay showing of rental property
--Permit a seller or buyer the right to give a thirty-day notice to
terminate a tenancy if a single-family home (including a condominium) is to
be owner occupied
--Eliminate objectionable changes to the "Ellis Act," the right of an owner
to go out of business.
--Require a statewide 60-day notice to terminate a residential tenancy.
Real Estate Finance 1. That C.A.R. adopt a "FOR"
position on the November 2002 ballot concerning the $2.1 billion Housing
2. That C.A.R. "SPONSOR" a bill next year to require creditors to correct
inaccurate information within thirty days or less if requested to do so by
3. That C.A.R., in conjunction with N.A.R., oppose any public-private
mortgage risk-sharing proposal that places an undue or indeterminate
financial burden onthe federal government.
4. That C.A.R, in conjunction with N.A.R., support the creation of an FHA
40-year fixed rate single-family mortgage loan product.
Taxation 1. That C.A.R. take a "NEUTRAL" position on
the Kindergarten-University Public Education Act of 2002, which would
authorize $13.05 billion in statewide general obligation bonds for school
2. That C.A.R. take a "WATCH" position on AB 2878 (Wiggins), which seeks to
exchange a portion of local sales and use tax funds for a similar portion
of property tax funds, AND seeks to replace the Vehicle License Fee
backfill to local governments with a similar portion of property tax
3. That C.A.R. "OPPOSE" SCA 10 (Speier), which would reduce the vote
threshold from 2/3 majority to 55% majority, for local general obligation
bonds to fund public library facilities.
4. That C.A.R. "OPPOSE" SCA 13 (Alarcon), which would: reduce the vote
threshold from 2/3 majority to 55% majority for any local special tax that
funds transportation, open-space land acquisition, or affordable housing
incentives·reduce the vote threshold from 2/3 majority to 50% majority for
any local general obligation bond that funds affordable housing
MLS/ Computer & Business Technology 1. A motion
from the MLS/Computer & Business Technology Committee, consisting of
the following three parts, was referred to a task force to be appointed in
order to explore strategies to address problems related to lockbox
a. That C.A.R. in conjunction with other state Associations, continue to
investigate the research and development of a REALTOR® owned lockbox
b. That C.A.R. develop a budget to explore possible joint legal action
regarding potential unfair business practices by SUPRA, for consideration
at the fall 2002 business meetings.
c. That C.A.R. in possible conjunction with NAR pursue the purchase of
SUPRA and RISCO lockbox systems.
Standard Forms Advisory
1. It was reported for information only that the Standard Forms Advisory
Committee hosted two panel discussions on the Residential Purchase
Agreement (RPA) proposed revision with members of the RPA study
group. Over 700 drafts along with a summary of changes were
distributed. Eleven of the sixteen RPA study group members were in
attendance to answer questions and receive member input. The study
group members also visited regional caucus meetings. The study group
has received a significant amount of positive feedback and many good
comments and suggestions.The study group will meet again in July and will
carefully review the comments received with particular attention to the
--Including the scope of the pest report to indicate what structures are to
--Adding instructive language on section 1 & 2 work to the Buyer's
Inspection Advisory and possibly the Seller's Advisory.
Loan contingency removal:
--Adding an option to modify or modifying the timeframe for removal of the
loan contingency to have it remain in effect until funding.
--Cooperating broker compensation:
--Consider either removing the clause entirely or eliminating any reference
to specific compensation and instead referring to the MLS or separate
The study group will continue to share its progress with membership as it
moves forward, utilizing:
C.A.R. communication vehicles as appropriate (C.A.R. Online and C.A.R.
Regional Forum on Forms
Continued discussion at regional and office meetings, meetings with
colleagues and counsel.
The Committee also reports that it has reviewed the Proposed Policy for the
Inclusion of Non-C.A.R. Produced Forms in WINForms that has been developed
by a study group and recommends that the policy be adopted with the
--In item III, that the San Diego AOR library be included in the local AOR
form libraries excluded from the General Policy.
--That the annual review fee be clarified that the fee is to cover a review
--That the non-endorsement language be modified to allow either a pop-up
window in WINForms (if technology permits) or on face of form and that the
language be modified so that the local AOR library endorses the form.
--That the excluded libraries in item III be those in the library as of
June 7, 2002.
1. It was reported for information only that the CREPAC Nominating
Committee met on Tuesday, May 28, 2002, and selected the following
individuals as nominees for CREPAC Trustee and CREPAC Alternate. Per
the Bylaws, the following slate of candidates is duly noticed, for approval
in October 2002. Trustees serve for a three-year term.
Alternates may be selected to fill the remainder of a vacant term during
NOMINEES FOR CREPAC TRUSTEE
(November 2002- November 2005)
Paula Colombo, Region 3
Diane Hardie, Region 13
Terry Fenske, Region 15
Sharon Bowler, Region 16
Melanie Hildebrand, Region 25
NOMINEES FOR CREPAC ALTERNATE
(November 2002 - November 2003)
Dawn O'Rourke, Region 1
Susanna Schlendorf, Region 5
Judy Jarvis Ellis, Region 9
Suzanne Yost, Region 10
Wendy Furth, Region 18
Stephen Goddard, Region 21
LeFrancis Arnold, Region 22
Nancy Hunt, Region 32
1. It was reported for information only that the IMPAC Trustees approved
the following contributions:
--California Natural Resources Group (CNRG), an advocacy/education
coalition focused on endangered species and critical habitat
--The Community Renewal Project for its Community Renewal Summit, a one-day
conference for individuals fostering renewal of their
--Ventura County HOME Program, an advocacy/education effort for
affordability and availability of housing in Ventura
--C.A.R. GAD Institute 2002, a C.A.R.-sponsored educational event for local
government affairs directors...Up to $9,000.
--Californians for Local Coastal Planning (CLCP), to fight the California
Coastal Commission's land use plan forthe City of Malibu...$50,000, and up
to an additional $25,000 pursuant to the raising of non-REALTOR® matching
funds (as requested by the Malibu Association of REALTORS®).
--Recreation and Land Use Preservation Foundation (RECLUPF), to fight the
California Coastal Commission's land use plan for the City of
Malibu...$12,500, and up to an addition $12,500 pursuant to the raising of
non-REALTOR® matching funds (as requested by the Malibu Association of
--The Malibu Association of REALTORS® was authorized to conduct an
Interboard Solicitation for the purpose of fighting the California Coastal
Commission's land use plan for the City of Malibu.
2. It was reported for information only that the IMPAC Nominating Committee
met on Tuesday, May 28, 2002, and selected the following individuals as
nominees for IMPAC Trustee and IMPAC Alternate. Per the Bylaws, the
following slate of candidates is duly noticed, for approval in October
2002. Trustees serve for a three-year term. Alternates may be selected to
fill the remainder of a vacant term during the year.
NOMINEES FOR IMPAC TRUSTEE:
(November 2002-November 2005)
Vicky Lynn Campbell, Region 5
Richard Otterstrom, Region 17
Dennis Pantano, Region 25
Shirley Long, Region 32
NOMINEES FOR IMPAC ALTERNATE:
(November 2002- November 2003)
Aida Dimejian, Region 13
Karen O'Brien, Region 15
Patricia O'Neill, Region 17
Steve White, Region 18
Greg Haas, Region19
Jeanne St. Clair, Region 23
Mark Marchand, A.E., Region 30
C.A.R. Scholarship Foundation
1. It was reported for information only that various scholarships were
awarded by the Trustees, and that funds were being raised for scholarships
in memory of longtime C.A.R. Director Byron Brawley.
California REALTOR® EXPO Advisory
1. It was reported for information only that the California REALTOR® EXPO
2002 will be held in Long Beach from October 8 - 10, 2002.
1. That effective January 2003, the Desert Communities Association of
REALTORS® (currently in Region 28) be assigned, per their request, to
C.A.R. Region 15.
2. That John Maquar, Southland Regional AOR, be appointed to complete the
remainder of a term on the 2002 Executive Committee.
1. That the following applicants be granted C.A.R. Honorary-Member-For-Life
Bay East AOR
Beverly Hills/Greater Los Angeles AOR
Contra Costa AOR
Joseph P. Roberts
Inland Valleys AOR
Irene F. De Moss
James Paul Langsjoen
Jane H. Richardson
Monterey County AOR
North Bay AOR
Harry Lockwood Jr.
Orange County AOR
Pacific West AOR
Patricia D. Deturk
Helen G. McNeish
Placer County AOR
San Luis Obispo AOR
Elvin Dale Arnett
Donald Wilbur Patrick
Santa Clara AOR
Joseph S. Beatty Jr.
Bette Hager Smith
Southland Regional AOR
Donald W. Long
Ventura County Coastal AOR
Yosemite Gateway AOR
Donald H. Williams
2. That the following C.A.R. member be approved for Honorary Member for
Life status with C.A.R dues being waived beginning January 2002:
Philip Louis Spiegl
Monterey County AOR
1. That C.A.R. allow candidates to use the e-mails of C.A.R. Directors, in
addition to AE's, but that any use include adequate security procedures
a) Do not transfer control or access or possession of the e-mails
b) Mask the identity of the e-mails so they cannot be copied.
Further, that the e-mails contain a disclaimer to make it clear that the
e-mails do not include an implied endorsement of the candidate by virtue of
the origination e-mail address. Finally, that the candidates bear the
costs, if any, necessary to provide this service while still keeping the
e-mails secure. An opt out feature will be provided.
2. That the "Guidelines for Conduct of Campaigns for C.A.R. Elected Office"
be amended as follows:
Candidates may announce their intention at any time. A campaign
steering committee may be formed at any time, with the number of members of
such committee not to exceed the number of C.A.R. Regions. Formal
campaign activities may not begin until the day following
after the Nominating Committee's has made
its recommendations for Officers for the following year at the
June C.A.R. Business Meetings and one year prior to the election for the
Office being sought, with the exception of endorsements from the
candidate's own Region and/or own local Association.
Formal campaign activities include, but are not limited to:
Use of e-mails to C.A.R. Directors and AE's
3. That the following be designated to serve as N.A.R. Directors for a term
ending November 2005.
Robert J. Bailey, Santa Cruz
Steve Goddard, South Bay
Ben Heinrich, Monterey County
Maxine Jennings, Bay East
Bob Kulick, Santa Clara County
Jim Liptak, Paso Robles
Ann Pettijohn, Pacific West
Rick Snyder, San Diego
Judy Zeigler, California Desert
Alternates (priority order)
Jeanne Radsick, Bakersfield
Richard Sax, San Francisco
Carolyn D'Agosta, North San Diego
Beth Sommer, Southland Regional
David Silver-Westrick, Orange County
4. That the following be elected as Directors for Life of the CALIFORNIA
ASSOCIATION OF REALTORS®:
Evelyn Arnold, Rancho Southeast
Sharon Bowler, Citrus Valley
Judy Zeigler, California Desert
5. That Joel Singer be elected Executive Vice President/State Secretary for
the year 2003.
6. That Ann Pettijohn be elected President-elect for the year 2003.
7. It was reported for information only that President-Elect Toby Bradley
will become President for the year 2003, and that Treasurer Jim Hamilton
will continue to serve a two year term as Treasurer for 2002 - 2003.
8. The following motions from the report of the N.A.R. Director Selection
Working Group were considered by the Nominating Committee and the Board of
Recommendation #1 -- Adopted
That, subject to approval of C.A.R. Legal Counsel, the Association mandate
the use of a Confidentiality Agreement for all members of the Nominating
Committee including Alternates and all participants in the nominating
Recommendation #2 -- Postponed to October 2002 meeting
That, for implementation in 2003, the large local Associations and the
large firms/franchises entitled to N.A.R. Director(s) provide to C.A.R. the
name(s) of their N.A.R. Director selection by June 1st of the calendar year
in order for their appointed Director(s) to receive reimbursement by
Recommendation #3 -- Adopted
That C.A.R. suggest to the large local Associations (via letter from the
C.A.R. President) thattheir N.A.R. Director appointee(s) should be someone
who is familiar with N.A.R. issues and concerns and has been involved in
the C.A.R. committee structure and has had prior attendance at N.A.R.
meetings and/or N.A.R. committee involvement.
Recommendation #4 -- Adopted
That the Strategic Planning & Finance Committee review the enforcement
of the funding policy for the large firm/franchise N.A.R. Directors as it
relates to attendance and participation at C.A.R. and N.A.R.
Strategic Planning and Finance
1. That the Association's audited Financial Statements as of December 31,
2001 be approved:
--The Statement of Income and Expenses by program for the
twelve months ending December 31, 2001.
-Revenue of $14,883,400
-Expenses of $14,202,600 (including federal income tax).
-An excess of income over expenses of $680,800
Political Activities Fund
-An excess of income over expenses of $267,200.
Issue Action Fund
-An excess of income over expenses of $455,400
2. That the Association's Financial Statements as of April 30, 2002 be
--The Statement of Income and Expenses by program for the four months
ending April 30, 2002
-Revenue of $12,825,100
-Expenses of $4,983,500 (including federal income tax)
-An excess of income over expense of $7,841,600
Political Activities Fund
-An excess of income over expenses of $799,000.
Issue Action Fund
An excess of income over expenses of $794,600.
--The C.A.R.Balance Sheet as of April 30, 2002
-Total assets of $25,543,300 (of which $17,441,100 are current
-Total liabilities of $3,017,300 (of which $2,761,800 are current
-C.A.R. Fund Balance of $22,526,000
3. That the Projected Statements of Income and Expense by program for the
year ending December 31, 2002 be approved.
-Revenue of $17,988,400
-Expenses of $16,264,700 (including federal income tax)
-An excess of income over expense of $1,723,700
Political Activities Fund
An excess of income over expenses of $245,100.
Issue Action Fund
An excess of income over expenses of $407,900.
This amount will be allocated to IMPAC as approved by the Directors.
4. To approve a program augmentation to add the position of Web
Developer. The total cost for 2002 is $37,100 (annualized
5. To approve a Capital Budget augmentation to upgrade financial software
$63,700 (2002 Depreciation cost $9,400).