CALIFORNIA ASSOCIATION OF REALTORS®
BOARD OF DIRECTORS
June 9 -- 10, 2006
The following is a summary of the significant action items approvedby the
CALIFORNIA ASSOCIATION OF REALTORS® Board of Directors at its June 2006
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
C.A.R. Scholarship Foundation/C.A.R. Education
Foundation 1. It was reported for information only that funds
were awarded for scholarships totaling $19,000. A scholarship was
initiated by the South Bay Association of REALTORS® and the Southern
California Chapter of CRS in memory of Mark Consalvo, former Chair of the
C.A.R. Scholarship Foundation. An additional scholarship was
initiated by C.A.R. Scholarship Foundation Trustee/C.A.R. Education
Foundation Director Tom Berge in the name of the West San Gabriel Valley
Association of REALTORS®.
California REALTOR® EXPO Advisory
1. It was reported for information only that 2,700 attendees and exhibitors
visited the REALTOR® Showcase on June 7 and 8. 95 companies were
featured in the exhibit hall. The California REALTOR® EXPO will take
place in Long Beach October 17-19. The theme is "Ocean of
Commercial Investment 1. That the Commercial
Investment Committee change its name to the REALTORS® Commercial Alliance
Commercial Investment Committee of the California Association of REALTORS®.
CREPAC Trustees 1. It was reported for information
only that the following slate is duly noticed for approval in October 2006.
Trustees serve for a three-year term. Alternates may be selected to fill
the remainder of a vacant term during theyear.
NOMINEES FOR CREPAC TRUSTEE
(November 2006- November 2009)
Paula Colombo, Region 3
Nancy Gilmore, Region 23 (AE)
Nancy Hunt, Region 32
Dennis Mason, Region 2
Irma Vargas, Region 17
NOMINEES FOR CREPAC ALTERNATE
(November 2006 - November 2007)
Anthony Agurs, Region 30
Candice Carpenter, Region 21
Susan Davis, Region 12
Mary Funk, Region 18
Dorothy Jackson, Region 6
Joyce Kristensson, Region 13
Susan Marshall, Region 24
Susanna Schlendorf, Region 5
Tricia Thomas, Region 6 (AE)
2. It was reported for information only that the CREPAC Trustees have
transferred $300,000 to National RPAC, for a total "Fair Share" 2006
contribution of $850,000, and that CREPAC has contributed $163,700 to
bi-partisan candidates for the Assembly and Senate, as well as the
Democratic and Republican Parties during the 2006 Primary Election cycle.
Educational Services Advisory It was reported for
information only that the Committee conducted an Educational Services Forum
with discussion of topics including an update of current C.A.R. educational
activities, positive results of a survey assessing broker interest in
online training for their agents, and plans for future course
development. Suggestions were offered for raising member awareness
of, and accessibility to, C.A.R. training. The Committee reviewed the
input received at the Educational Services Forum, the progress of expanding
training programs that are not just for continuing education credit, and
made plans to conduct another forum at the Fall meetings.
Eminent Domain Task Force It was reported for
information only that the following policies have been adopted by the
Association, and that the Task Force has completed its work.
1. That C.A.R. "SUPPORT" legislation concerning eminent domain that
- Prohibit the taking of single family property by eminent domain for
any use other than for public use.
- Amend the eminent domain law tomake it easier for property owners
to transfer their existing property tax base
- Require courts to award the prevailing plaintiff attorney fees and
costs should the plaintiff prevail in an eminent domain proceeding when
challenging: a) the validity of the taking of property; or b) the valuation
of the property.
- Require: a) independent licensed appraisers to be used in eminent
domain proceedings; and b) redevelopment agencies to reimburse property
owners the cost of an additionalappraisal in eminent domain
2. That C.A.R. "SUPPORT" legislation concerning redevelopment law
- Substantially tighten the definition of "blight" used by
redevelopment agencies proposing to create or expand redevelopment project
- Reduce the time period during which the initial finding of "blight"
may exist in a newly created redevelopment project area.
- Reduce the time period during which redevelopment agencies may take
property by eminent domain.
- Require a re-evaluation of the necessity of a redevelopment area on
a periodic basis.
- Require redevelopment agencies to disclose to all property owners
that they may transfertheir property tax base if the qualified replacement
property is within the same county.
3. That C.A.R. "FAVOR" the development of multi-use buildings within
redevelopment project areas.
4. That C.A.R. "FAVOR" legislation to require redevelopment agencies
to use no less than 30% (existing law require agencies to use no less than
20%) of its tax increment revenues for the purpose of building new or
improving low and moderate income housing (LMI) and to requirethe agencies
to use those funds as soon as reasonably practical.
5. That C.A.R. "FAVOR" removing antiquated subdivisions (irregular
shapes or inadequate size parcels) from the statutory definition of
6. That C.A.R. "WATCH" legislation that would require redevelopment
agencies to pay businesses moving costs and costs associated with a
temporary loss of business due to the business relocating to a new
7. That C.A.R. "FAVOR" legislation that would require redevelopment
agencies to establish a legal assistance fund to pay "small" property
owners costs associated with obtaining legal advice on eminent
8. That C.A.R. "OPPOSE" new obligations on sellers and their agents
to disclose that a property is located in a redevelopment area.
9. That C.A.R. seek amendments to legislation that will require
redevelopment agencies to record on each parcel a notice that the parcel in
aredevelopment project area is subject to eminent domain for a prescribed
period of time, and for that notice to be removed at the appropriate
10. That C.A.R. "SUPPORT" legislation that will require redevelopment
agencies to adopt a more quantitative analysis when determining if a parcel
11. That C.A.R. "SUPPORT" legislation that will require redevelopment
agencies to include in their appraisal of a parcel to be purchased, the
cost of the replacement parcel.
Items 1 and 2 above were approved by the C.A.R. Board of Directors in
January 2006. Items 3 through 11 were approved by the C.A.R. Officers
in April 2006.
1. That Dolores Golden be appointed as a Director-At-Large to fill a
vacancy for the remainder of 2006.
IMPAC Trustees 1. It was reported for information
only that the following slate is duly noticed for approval in October
2006. Trustees serve for a three-year term. Alternates may beselected
to fill the remainder of a vacant term during the year. A recent
bylaws amendment calls for one new Trustee to be nominated for a two year
NOMINEES FOR IMPAC TRUSTEE
(November 2006 - November 2009)
Greg M Haas, Region 19
James S. Irving, Region 31
Mark Marchand, Region 30 (AE)
Richard Otterstrom, Region 17
Sandi E. Pfister, Region 21
Heather C. Benson, Region 29, (2-year term, expires 2008)
NOMINEES FOR IMPAC ALTERNATE
(November 2006 - November 2007)
Les Fishman, Region 21
Pat A. Fredericks, Region 28
Eva S. Garcia, Region 3
Dale Gray, AE, Region 7
Leannah Hunt, Region 9
Joan Jolly, Region 12
Georgia W. Richardson, Region 6
Richard Tegley, Region 14
Cynthia Wood, Region 4
2. It was reported for information only that the IMPAC Trustees approved
the following contributions:
-$125,000 to a candidate education and earned media campaign in support of
C.A.R. housing policy by the C.A.R. Housing Opportunity Committee.
-$250,000 to the Alliance for Housing and the Environment to defeat an
anti-growth initiative in Santa Clara County.
-$10,000 to the Community Renewal Project for sponsorship of their 2006
-$25,000 to a research/media campaignby the Reason Institute on solutions
to replace no-growth policies.
-$50,000 to the Kern Taxpayers for Safety and Traffic Relief for a
countywide half-cent transportation sales tax increase.
Land Use and Environmental 1. It was reported for
information only that the Land Use and Environmental Committee recommends
that C.A.R. appoint a Task Force to address the Private Transfer Tax issue
and that the Task Force report to multiple committees as deemed appropriate
2. It was reported for information only that the Land Use and Environmental
Committee will appoint a Working Group to address the Private Transfer Tax
issue as it applies to Land Use and Environmental Issues.
3. It was reported for information only that the Land Use and Environmental
Committee recommends that the C.A.R. Standard Forms Advisory Committee
consider amending the Statewide Buyer and Seller Advisory to include
language in the Septic System(s) subheading that would alert buyers to
local and/or statewide septic system regulations.
Legal Action Fund It was reported for information
only that the Trustees have met several times by phone and have reviewed
five requests for either funding or to support the filing of a brief.
No new cases have been approved. The following is an update on
-- Strebel v. Brenlar - This involves damages in a case involving two
separate properties. One didn't close because of tax liens, and the
jury held that the agent concealed this, causing the buyer to release
contingencies and sell his existing home. He tried to find
alternative properties in the new area, could not, but did not reinvest in
the old area. The jury awarded actual damages, emotional distress
damages and lost appreciation on the proceeds of the home sold but not
reinvested. The trustees authorized filing a brief. C.A.R.
filed its brief stating that emotional distress damages and lost
appreciation were not proper in this case. The Court issue a
ruling in January that lost appreciation is a proper method of evaluating
damages in this case. The facts in this case were difficult to
overcome. Since the January meetings, the broker sought a hearing
before the California Supreme Court and the Trustees authorized an amicus
brief in support of the effort. In May of this year the
California Supreme Court denied the request for hearing. The
appellate court decision stands.
-- Bakersfield Association of REALTORS v.BLS - The Trustees had previously
authorized funds in support of the issue of unauthorized use of listings by
a parallel MLS that raised issues of a broker's control over the
distribution of the broker's own listings. This case has now been
settled. One MLS now serves the Bakersfield area.
-- C.A.R. v. Barry - As previously reported, C.A.R. defeated Barry's motion
to strike the complaint in C.A.R.'s malicious prosecution case against both
Freeman and Barry. Predictably, Barry has appealed. We are
optimistic the lower court decision will stand.
1. That C.A.R. adopt the following positions on November 2006 Ballot
-- Proposition 1A, "Transportation Funding Protection Legislative
Constitutional Amendment" -- "FOR"
-- Proposition 1B, "Highway Safety, Traffic Reduction, Air Quality and Port
Security Bond Act of 2006" -- "FOR"
-- Proposition 1C, "Emergency Housing, Community Planning and Farmland
Preservation Bond Act of 2006," of which $950 million is allocated for
homeownership opportunities -- "FOR"
-- Proposition 1D, "Kindergarten -- University Public Education Facilities
Bond Act of 2006" -- "NEUTRAL"
-- Proposition 1E, "Disaster Preparedness and Flood Prevention Bond Act of
2006" -- "FOR"
-- "Sex Offenders, Sexually Violent Predators, Punishment, Residence and
Monitoring Initiative Statute" -- "NOT REAL ESTATE RELATED"
NOTE: In September 2005 C.A.R. adopted a "NOT REAL ESTATE RELATED"
position on the Safe, Reliable High-Speed Passenger Train Bond Act forthe
21st Century, which is expected to appear on the November 2006 ballot.
2. It was reported for information only that the Legislative Committee will
keep the Broker Experience Working Group in place at least until October
2006, and report on options for improved experience for both brokers and
Local Governmental Relations
1. It was reported for information only that C.A.R. will continue to
aggressively pursue clarification that REALTORS® serving as elected or
appointed officials are not subject to a disqualifying conflict of interest
simply by virtue of their license or profession.
Membership 1. That the following applicants be
granted C.A.R. Honorary Member-for-Life status:
Sylvia Marie Bartlett
Bay East AOR
Central Valley AOR
Mary Aileen Porter
Coastal Mendocino AOR
Greater Antelope AOR
Eugene Michael Dennis
Imperial Valley BOR
Newport Beach AOR
Northern Solano County AOR
Herbert F. Olson
Pacific West AOR
Howard Arnold Johnson
Clovis Lorraine Buchanan
San Diego AOR
Mary Ann Holladay
Francis J. Lay Jr
San Mateo County AOR
Margaret C. Barrett
Santa Ynez Valley AOR
Southland Regional AOR
Adeline S. Hopkins
Cynthia L. Morse
Helen Elroy Payne
Howard R. Sampson
Tulare County AOR
West San Gabriel Valley AOR
1. That the following be designated to serve as State allocated NAR
Directors for a three year term ending November 2009, and as Alternates for
the 2007 elective year.
Alternates For 2007 (In Priority Order)
2. That the following individuals be elected as Directors for Life:
3. That Joel Singer be elected as Executive Vice President/State Secretary
for the year 2007.
4. That William E. Brown be elected as President-Elect for the year
5. It was reported for information only that President-Elect Colleen
Badagliacco will automatically become President for the year 2007, and that
2006-2007 Treasurer James Liptak will continue to serve the remainder of a
two year term in that office.
Political Affairs 1. It was reported for information
only that the 2007 Dues Billing Statement will include both the $197 "True
Cost of Doing Business" and the $49 minimum REALTOR® Action Fund
(RAF). Additionally, that the dues billing statement will be clearly
marked so that the members understandthey have a choice of paying either
the $197 "True Cost of Doing Business" OR the $49 minimum (RAF) voluntarily
1. That C.A.R. adopt an "OPPOSE UNLESS AMENDED" position on AB 2712 (Leno),
a bill relating to sex offenders in residential rental properties.
The amendments include meaningful: a) liability reform and; b) technical
Real Estate Finance 1. That C.A.R., in conjunction
with NAR, "SUPPORT" a new FHA Home Equity Conversion Mortgage (HECM) for
Standard Forms Advisory
It was reported for information only that the Standard Forms Advisory
Committee received comments regarding the current draft of the Agent's
Inspections Disclosure (AID) form and the following new forms: Buyer
Inspection Waiver (BIW), Buyer Inspection Elections (BIE), Vacant Land
Questionnaire (VLQ) and REALTOR® Affirmation (RA) forms. The Standard
Forms Advisory Committee approved the Buyer Inspections Waiver (BIW) and
the Vacant Land Questionnaire (VLQ) forms for the Fall 2006 release, with
some minor revisions. The Committee referred the proposed Agent's
Inspections Disclosure (AID) form back to the InspectionsStudy Group to
revise how the agent is to document the findings of their diligent visual
inspections. The Standard Forms Advisory Committee approved the Buyer
Inspections Waiver (BIW) and the Vacant Land Questionnaire (VLQ) forms for
the Fall 2006 release, with some minor revisions. The Buyer
Inspection Elections (BIE) form will undergo additional review. The
Committee recommended that the REALTOR® Affirmation (RA) form be released
in 2006 with a title change to the REALTOR® Acknowledgement (RA) form and
other minor changes. Additionally, the Committee supports the
creation of a Forms Consolidation Study Group/Task Force. Finally,
the Committee reviewed 66 of the 87comments received between January
and June ofthis year, and will review the balance of the comments in a
follow up conference call.
Strategic Planning & Finance 1. That the
Statement of Income and Expenses for the Twelve months ending December 31,
2005 be approved.
- Revenue of $29,135,900
- Expenses of $25,059,500 (including Federal income tax).
- An excess of income over expenses of $4,076,400
Political Activities Fund
An excess of income over expenses of $820,800.
Issues Action Fund
Anexcess of income over expenses of $1,102,400. This amount will be
allocated to IMPAC as approved by the Directors.
The C.A.R. Balance Sheet as of December 31, 2005
- Total assets of $35,601,900 (of which $21,945,800 are current
- Total liabilities of $4,807,700 (of which $4,339,400 are current
- C.A.R. Fund Balance of $30,794,200.
2. That the Statement of Income and Expenses by program for the three
months ending March 31, 2006 be approved.
- Revenue of $21,534,000
- Expenses of $5,415,600 (including Federal income tax)
- An excess of income over expenses of $16,118,400
Political Activities Fund
- An excess of income over expenses of $1,713,300
Issues Action Fund
- An excess of income over expenses of $1,557,800
The C.A.R. Balance Sheet as of March 31, 2006
- Total assets of $55,514,600 (of which $41,830,100 are current
- Total liabilities of $7,387,400 (of which $6,899,000 are current
- C.A.R. Fund Balance of $48,127,200
3. That the Projected Statement of Income and Expenses by program for the
year ending December 31, 2006 be approved.
- Revenue of $29,718,100
- Expenses of $25,551,100 (including Federal income tax)
- An excess of income over expenses of $4,167,000
Political Activities Fund
- An excess of income over expenses of $926,800
Issues Action Fund
- An excess of income over expenses of $1,012,500. This amount will be
allocated to IMPAC as approved by the Directors.
4. That the Leadership Symposium for the 2007 Presidents and Association
Executives be increased to a one and a half day program from the current
budgeted one day program, at an additional cost of $50,400.
1. ThatC.A.R., in conjunction with NAR, seek an estate tax regimen that
provides a stepped-up basis for all inherited assets. If the
scheduled 2010 estate tax repeal is rescinded, that C.A.R support a
a) permits stepped-up basis,
b) taxes all assets in an estate at the same rate (i.e., rates would not
depend on the type of asset),
c) excludes an amount comparable to the $5 million exclusion that would be
in effect in 2010,
d) provides estate tax rates that, as nearly as possible, are the same as
the tax rate for long-term capital gains, but in no event higher than the
2006 individual tax rates of the same income structure, and
e) indexes the estate tax exclusion amounts for inflation.2. It was
reported for information only that the Taxation Committee recommends that
C.A.R. appoint a Task Force to address the Private Transfer Tax issue and
that the Task Force report to multiple committees as deemed appropriate by