CALIFORNIA ASSOCIATION OF REALTORS®
BOARD OF DIRECTORS
510^th SESSION
JUNE 11 - 12, 2004

The following is a summary of the significant action items approved by the CALIFORNIA ASSOCIATION OF REALTORS® Board of Directors at its June 2004 meeting.  Some additional information items areincluded, 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
1. It was reported for information only that funds were awarded for scholarships totaling $15,250, and that the new Cheryl Betyar Memorial Scholarship Fund has been established as a perpetual scholarship.

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 CAR "SUPPORT" AB 2598 (Steinberg) and SB 1682 (Ducheny), bills that propose to amend existing law on homeowner association delinquent assessment procedures. The amendments would: a) allow associations to employ a trustee on and after a notice of default is recorded; b) require associations to pay the trustee fee at the time of the initial hiring; c) prohibit associations from pursuing foreclosure when the delinquent assessment is $2,500 or less; and d) prohibit the use of non-judicial foreclosure if: it is determined that the delinquent assessmentis not more than four months old; and, does not occur more than one time per year; and, the equity in the property is $25,000 or less.

CREPAC Trustees
1. That the CREPAC, CREPAC/Federal and CREIEC Bylaws amendments as noticed to the Directors on May 10, 2004 be approved. 
2. It was reported for information only that the following slate of candidates for CREPAC Trustees and Alternates is duly noticed for approval in October 2004.  Trustees serve for a three-year term.  Alternates may be selected to fill the remainder of a vacant term during the year.

Nominees for CREPAC Trustee
(November 2004 through November 2007)
Le Francis Arnold, Region 22
Wendy Furth, Region 18
Dawn O'Rourke, Region 1
R. Chris Osteen, Region 29
John Scarborough, Region 12

Nominees for CREPAC Alternate
(November 2004 through November 2005)
Anthony Agurs, Region 30
Steve Goddard, Region 21
Dorothy Jackson, Region 6
Richard Kato, Region 20
Dennis Mason, Region 2
Paul Stewart, Region 19
Mike Teer, Sr., Region 14
Irma Vargas, Region 17
Judy Zeigler, Region 28

3. It was reported for information only that the CREPAC Trustees authorized a $60,000 transfer from the CREPAC/Federal account to the National RPAC account.

Executive
1. That the C.A.R. Bylaws amendments as noticed to the Directors on May 10, 2004 be approved.

Federal Issues
1. That C.A.R., in conjunction with NAR, support the creation of a requirement for lenders to inform borrowers of the methods used to value a property to determine the amount of the mortgage loan and the creation of a right for borrowers to receive a copy of each value estimate or value opinion obtained.
2. That C.A.R., in conjunction with NAR,support indexing the De Minimis threshold for requiring appraisals to 135% of each state's annual median home price.

Housing Opportunity
1. That C.A.R., in conjunction with NAR, support congressional action requiring HUD to use quarterly actual per-unit costs information when calculating section 8 voucher renewals.
2. That C.A.R., in conjunction with NAR, oppose changes to the section 8 voucher program that create block grants to Public Housing Authorities (PHA).

IMPAC Trustees
1. It was reported for information only that the IMPAC Trustees approved the following contributions:
--The Reason Foundation, to provide third party, independent analysis and media outreach on the negative aspects of smart growth policies, including inclusionaryzoning and indirect source air quality fees...$25,000
--The Community Renewal Project, to make C.A.R. a sponsor of the 2004 Community Renewal Summit, a one-day conference that provides practical instruction to individuals who desire to foster renewal of their local communities...$5,000.
2. It was reported for information only that the following slate of candidates for IMPAC Trustees and Alternates is duly noticed for approval in October 2004.  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 2004-November 2007)
Richard Sax, Region 8
Brian Malone, Region 13
Evelyn Arnold, Region 22
Jeanne St. Clair, Region 23
Marjorie McLaughlin, Region 24

Nominees for IMPAC Alternate
(November 2004-November 2005)
Peter Morris, Region 3
Terry Wunderlich, Region 4
Mary Chatton Brown, Region 5
Dale Gray, A.E., Region 7
Sherry Tietjens, Region 12
Carol Facciponti, Region 16
Les Fishman, Region 21
Heather Benson, Region 29
Jim Irving, Region 31

Land Use and Environmental
1. That C.A.R. become more involved in the issue of water quality by joining the California Coalition for Clean Water, a diverse group of stakeholders seeking to reform the state's water quality regulatory program, and that C.A.R. participate in water quality issues in the Legislature.
2. That C.A.R. "WATCH" SB 1369 (Kuehl), a bill that increases from 30 to 100 feet the vegetation fire clearance requirements in state responsibility areas (SRA) and local very high fire hazard severity zones, and also gives fire officials in the SRA the ability to clear properties pursuant to the nuisance abatement law.

Legal Action Fund
1. It was reported for information only that, in the case of Levy v. City of Santa Monica, the Trustees authorized a letter to the California Supreme Court urging them to accept hearing in a case involving a tree house.  A homeowner had gotten permits to build a tree house and made modifications to get the appropriate clearances.  When a city cited the homeowner after a neighbor complained to the mayor, the homeowner filed suit against the city and the mayor.  The city countered using a procedural maneuver called an anti-SLAPP motion and lost.  On appeal, the appellate court supported the city and further awarded the city attorneys' fees against the homeowner.  The homeowner petitioned the California Supreme Court for relief but no hearing was granted.

In the case of Greenbriar Homes Communities v. Superior Court, the Trustees had supported a case on the issue of the enforceability of alternative dispute resolution mechanisms such as referring matters to a judicial referee.   The court has upheld the enforceability of such provisions and has published the decision.

In the Freeman II case, a new plaintiff has filed a motion to intervene in the antitrust case Freeman v. San Diego.  The new development is an attempt by new counsel to certify the class action that Freeman was unable to obtain.  Opposition to the motion has been filed.   On the main case, preparation for a January 2005 trial is underway. 

Legislative
1. That C.A.R. "SUPPORT" a proposal to modify the so-called "poison pill" cap on the Department of Real Estate's accumulation of operating reserves if:
a. The limit on reserves is expanded from the 6 months in existing law to 18 months; and,
b. The existing prohibition on transfers is expanded to include loans.

Local Governmental Relations
1. It was reported for information only that the LGR Committee Chair will form a working group to study the issue of local Associations without a Government Affairs Director.  The group will examine existing resources, consider various alternatives and suggest a course of action for providing greater coverage of those areas that are not represented by a GAD.

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

Arcadia AOR
Belle Rohr

Bay East AOR
Richard G. Bigelow

Burbank AOR
Eugene H. Forrest
Seb Manno

California AOR
Forrest S. McKinley

Central Valley AOR
Reed Robbins

Downey AOR
Gloria Sequeira

El Dorado County AOR
William H. Lasher
Howard M. Lumsden
Jack D. Robertson
Blanche I. Sherman
Betty S. "Corky" Slight

Inglewood BOR
Michael Parris

Monterey County AOR
Ruth LaGrange
Doris Nicita

North San Diego County AOR
Betty R. Dobler
Juanita Lenora Harwood
Marylen Naimark
Lucy Warren Smyth

Orange Coast AOR
Robert Leo Brooks

Orange County AOR
Natalie Hearn
Robert Larsen
Harold Leslie Tamblin

Pacific West AOR
Betty J. Bennett
Mary E. Funair

Palos Verdes Peninsula AOR
Marthe Thompson

Pismo Coast AOR
Mary Billings

Sacramento AOR
Carol Barlow
Constance L. Castleberry
George Cavros
Norine Chalmers
Bob G. Croom
Bill Fanning
W. Ben Franklin
Swede Furukawa
Douglas A. Hammond
Charles Heidenreich
Patricia L. Hodges
Jack Lewis
Frank MacBride
Marie Margaret Mayer
Fern Milano
Jack L. Moore
Lyle Parkinson
John A. Peters
Betty Pomeroy
Nicholas J. Poplawski
Marjorie J. Reid
Dorothy Rhoads
William D. Schmidt
Ginger M. Starcher
William C. Vogel, Sr.
Ed F. Wong
Betty Wood

San Mateo County AOR
Gloria Foster

Santa Clara County AOR
Frank E. Archer
Sally Hare
Joseph Hillhouse
David T. Urshan

Southland Regional AOR
Peter Felix Bartosiewicz
Donna Essert
Donald L. Menck

West San Gabriel Valley AOR
Ben G. Avila
Loraine D. Lefler

Nominating
1. That the following be designated to serve as NAR Directors for a term ending November 2007:
1.  Jeff Barnett
2.  Sharon Bowler
3.  William E.Brown
4.  John Cribb
5.  Richard Gaylord
6.  Vince Malta
7.  Ann Pettijohn
8.  Gary Thomas

Alternates For 2005: (In Priority Order)
1.  Leslie Munger
2.  Le Francis Arnold
3. Sherry Tietjens
4.  Sandi Pfister
5.  Stephen Hanleigh

2. That the following be elected as Directors for Life:
Art Nellessen
Allen Okamoto

3. That Joel Singer be elected Executive Vice President/State Secretary for the year 2005.
4. That Vince Malta be elected as President-elect for the year 2005.
5. It was reported for information only that President-Elect Jim Hamilton will automatically become President for 2005, and that Treasurer Colleen Badagliacco would continue to serve the remainder of the two year term to which she had been elected last year.
6. It was reported for information only that the Nominating Committee added the following language to its guidelines to clarify the role of an NAR Director Alternate.
"NAR Director Alternates are designated to be called upon in priority order for a period of one year, to coincide with the NAR term of office, which runs from the day after the last day of the NAR Convention, until the conclusion of the next NAR Convention.  The next individual selected in priority order as a NAR Director Alternate, and who is willing and able to serve as a NAR Director upon notification of a vacancy by the C.A.R. Leadership, shall be appointed to serve the remaining portion of the term of the individual being replaced.  For example, if a NAR Director has served two years of a three year term, and then resigns, the next available Alternate would be appointed to serve for the remaining year only.  If more than one vacancy occurs at the same time, and the terms of those individuals end at different times, the position with the longest amount of time remaining would go to the next available Alternate, and the position with a shorter remaining term would go to the Alternatewho follows in priority order."

"In the event that all of the five Alternates are appointed to fill vacant terms, or are unable to serve, the C.A.R. Leadership shall consult with the current Chair of the Nominating Committee to review the prioritization of the applicants for NAR Director who were not selected as Directors or as Alternates.  Priority consideration will be given to the next available applicant in the order established by the NAR Director Selection Subcommittee."

Political Affairs
1.It was reported for information only that the Political Affairs Committee recommends that the Political Activities Fund Committee allocate funds to create an educational video on Political Survival and Legislative Day.
2. It was reported for information only that C.A.R.'s fundraising goal for 2004 be increased from $2.8 million to $3.2 million, and that the goal for REALTOR® participation in Political Survival increase from 35% to 45%.

Professional Standards
1. That C.A.R. adopt revisions to the California Code of Ethics and Arbitration Manual ("Manual"), as mandated by NAR, which state that if an ethics complaint is withdrawn after the Grievance Committee sends it to a hearing, the complaint will be referred back to the Grievance Committee to determine if a potential violation of the public trust (as defined in Article IV, Section 2 of the NAR Bylaws) may have occurred.  Only where the Grievance Committee determines a potential violation of public trust may have occurred may the Grievance Committee proceed as the complainant.
2. To instruct California NAR Directors and staff to prepare an opposition piece and request reconsideration (of the above referenced mandate regarding Grievance Committee procedures) at the September Interpretations Subcommittee meeting and at the next NAR meeting in November.
3. That C.A.R. adopt an official position on the issue of mandatory mediation and advocate to NAR that NAR not amend Article 17 to require REALTORS® to mediate otherwise arbitrable disputes, but, instead, to amend the Preamble to encourage members to mediate prior to arbitration.
4. That C.A.R. adopt an official position on the issue of allowing individuals to testify or appear at a professional standards hearing via telephone, videoconference or other electronic means and advocate to NAR that NAR not amend policy to prohibit "remote" testimony at ethics and arbitration hearings.
5. That C.A.R. adopt revisions to the California Code of Ethics and Arbitration Manual ("Manual"), as mandated by NAR, which state that membership suspensions for remediable violations are exempt from the 30 day minimum and one year maximum suspension periods.  The suspension is in effect for theperiod that the remediable violation remains uncorrected. 
6. That C.A.R. approve revisions to C.A.R. policy increasing the non-refundable portion of Interboard Arbitration filing fees to $250.

Property Management
1. That CAR "OPPOSE" SB 1634 (Alarcon), a bill that would: a) allow local government to notify lenders of the existence of any building code violation; b) require landlords to pay for all building code enforcement actions; c) exempt public housing from local buildingcode enforcement actions as prescribed in the bill; and d) fails to compel local government to issue notices of correction in a timely manner.

Real Estate Finance
1. That C.A.R., in conjunction with NAR, support HUD retaining authority over new programs created by Fannie Mae and Freddie Mac.  Further, in the case that HUD is unable/unlikely to retain this authority, that C.A.R., in conjunction with NAR, support that the authority be given to an independent agency that is neither under HUD nor theTreasury Department.
2. That C.A.R., in conjunction with NAR, support indexing the VA loan guarantee to the conforming loan limit.
3. That C.A.R., in conjunction with NAR, support the creation of a FHA Zero Downpayment loan product and strongly encourage property management classes for 2-4 unit purchases.
4. That C.A.R., in conjunction with NAR, support the indexing of the FHA loan limit to metropolitan statistical area (MSA) median home prices.

Strategic Planning & Finance
1. That the Association's Audited Financial Statements as of December 31, 2003 be approved.
2. That the Statement of Income and Expenses by program for the four months ending April 30, 2004 be approved.
3. That the Projected Statement of Income and Expenses by program for the year ending December 31, 2004 be approved.
4. That the C.A.R. Check Signing Policy be approved.
5. That the Housing Affordability Fund Committee be expanded in its membership and size to include: 18 voting Committee Members, of which one additional Association Executive shall serve on the committee, and two Vice Chairs shall be appointed annually; and one regional representative who shall be appointed per region to serve as Liaison (non-voting) members.
6. That, in conjunction with C.A.R.'s 2003 establishment of a Disaster Relief Program to benefit REALTORS® affected by natural and other disasters, including the recent 2003 Southland Fire Disaster and the Paso Robles Earthquake in California, C.A.R. hereby waives its 2004 membership dues for those REALTORS® who have suffered catastrophic damage to either their homes or business structures by the 2003 Southland Fire Disaster and the Paso Robles Earthquake.
7. That the C.A.R. Officers are hereby authorized to waive future annual C.A.R. membership dues for REALTORS® who are victims of future natural or other disasters declared as such by the Governor of California and/or President of the United States, as long as the local AOR has also agreed to waive its dues; and that the C.A.R. Officers are hereby authorized to waive future annual C.A.R. membership dues for REALTORS® who have individually suffered severe disabling hardship as long as the local AOR has also agreed to waive its dues.
8. That C.A.R. create a work group of the Commercial Investment Committee to meet offsite and by conference call that will work with C.A.R. staff to create input for appropriate and timely content for the commercial portion of the C.A.R. website, with costs of meetings not to exceed $5,000.
9. That C.A.R. create a work group of the Commercial Investment Committee to meet offsite and by conference call to work with C.A.R. staff to identify commercial practitioners both inside and outside C.A.R.through surveys, events and other appropriate methods, with a cost that does not exceed $5,000.

Taxation
1. That C.A.R. take a "WATCH" position on legislation that increases the gasoline sales tax to fund transportation, until Proposition 42 funds have been repaid from the general fund.
2. That C.A.R. in conjunction with NAR, "SUPPORT" the liberalization of real estate mortgage investment conduit (REMIC) rules to make commercial loan securitization more attractive to commercial borrowers.
3. It was reported for information only that the Taxation Committee recommends that the C.A.R. President convene a task force on transportation funding issues.
4. It was reported for information only that staff will prepare an issue briefing paper for the October meetings considering whether C.A.R. should sponsor legislation to deal with the taxation issue experienced with local business license tax, as presented by the Beverly Hills/Greater Los Angeles Association of REALTORS®.