CALIFORNIA ASSOCIATION OF REALTORS®
BOARD OF DIRECTORS
522nd SESSION
JUNE 6 - 7, 2008
The following is a summary of the significant action items approved by the
CALIFORNIA ASSOCIATION OF REALTORS® Board of Directors at its June 2008
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.
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 $8,500, and
that the C.A.R. Education Foundation Policies and Procedures have been
updated and approved.
California REALTOR® EXPO Advisory
1. It was reported for information only that the California REALTOR®
Showcase had 2,400 attendees and fifty exhibit booths. The
California REALTOR® EXPO will take place October 14-16, 2008 in Long Beach.
Common Interest
Development
Committee
1. That C.A.R. "OPPOSE" AB 567 (Saldana), Common Interest Development (CID)
Bureau.
CREPAC
Trustees
1. It was reported for
information only that, per the Bylaws, the following slate is duly noticed
for approval in October 2008. 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 2008- November
2011)
Marian Norris, Region
7
Mike Teer, Region
14
Jimmy La Peter, Region
23
Susan Marshall, Region
24
Judy Zeigler, Region
28
NOMINEES FOR CREPAC
ALTERNATE
(November 2008 - November
2009)
Cheryl McFall, Region
7
Linda Harrison, Region
8
Gene Lentz, Region
9
Jared Martin, Region
12
Carol Facciponti, Region
16
Mary Funk, Region
18
Greg Berkemer, Region
28
Anthony Agurs, Region
30
Cas Pinkowski, Region
32
The slate of Nominees above will be presented to the C.A.R. Board of Directors for their final approval at the October meetings (notified at the June meetings), according to the CREPAC Bylaws. Trustees serve for a three-year term. Alternates may be selected to fill the remainder of a vacant term during the year.
1. That C.A.R. approve the CALMLS, Inc. Bylaws as noticed and as posted on the mlsinput.car.org Web site (Note: A technical correction was agreed to that the quorum and voting requirements should specify a majority rather than merely fifty percent as was stated in the draft Bylaws.)
1. That staff be directed to prepare a new issues briefing paper for presentation to the Federal Issues Committee in October to assist C.A.R. in establishing policy in which we can:
-- Evaluate any proposed legislation and;
-- Advocate for the health care priorities we support.
Further, the issues briefing paper should establish a matrix identifying
all of the health care options and principles in general discussion so that
the committee can decide those that we support, are neutral on, or oppose
in order to allow efficient analysis of all future proposals.
Lastly, we should set a goal of debating and reaching conclusions by the January 2009 C.A.R meetings.
1. That C.A.R. adopt the following policy on affordable housing:
Housing advocacy organizations promote many different definitions of "affordable housing." The California Association of REALTORS® has chosen to define "affordable housing" as "affordable workforce housing" and to focus its activities on helping create a path towards "affordable home ownership" for the workers in California. Such affordability must be evaluated in the context of housing costs within a community. This path starts with rental housing and then moves on to ownership housing generated by new construction, rehabilitation, and re-development.
REALTORS® believe that communities most effectively create the opportunities for affordable workforce home ownership by avoiding restrictive regulatory policies, such as rent control and point-of-sale mandates, and encouraging affirmative actions such as flexible zoning, innovative local planning, cooperative public-private projects, density bonuses, "granny flats", mixed use developments, land trusts, down payment assistance programs, and shared equity arrangements.
2. A motion that C.A.R. "FAVOR" H.R. 5818, the Neighborhood Stabilization Act of 2008, was denied approval.
1. It was reported for information only that, per the Bylaws, the following slate is duly noticed for approval in October 2008. 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 2008- November 2011)
Carol Banner, Region 15
Pat Fredericks, Region 28
Michael Godfrey, Region 6
Don Scordino, Region 12
Terry Wunderlich, Region 4
NOMINEES FOR IMPAC ALTERNATE
(November 2008 - November 2009)
Les Fishman, Region 21
Dolores Golden, Region 22
Rebekah Owen, Region 19
Erik Weichelt, Region 24
Cynthia Wood, Region 4
The slate of Nominees above will be presented to the C.A.R. Board of Directors for their final approval at the October meetings (notified at the June meetings), according to the IMPAC Bylaws. Trustees serve for a three-year term. Alternates may be selected to fill the remainder of a vacant term during the year.
1. The trustees approved the following cases for amicus briefs:
Claver v. Coldwell Banker. A salesperson was let go filed a class action lawsuit in a San Diego federal court challenging the independent contractor status of all CB salespersons on several issues but most notably their E&O insurance/risk management service/insurance protection program (to which salespersons contribute) and automobile insurance requirements. The plaintiff claims unlawful withholding of the agent funds for these programs under the California Labor Code. The plaintiff claims the broker salesperson relationship is one of an employer/employee relationship and therefore subject to the California Labor Code which regulates deducting amounts due from an employee. The matter is at an early stage at the trial level.
Hughes v. Pair. In a sexual harassment claim against a professional in an employment context, a procedural issue arose involving whether a court could dispose of a sexual harassment case by a summary judgment motion. While the trustees noted they did not condone the alleged activity of the defendant, they authorized an amicus on the issue of whether such claims may be decided by a judge instead of requiring a jury trial. The case is awaiting oral argument before the California Supreme Court.
Updates on cases in which C.A.R. participated as amicus:
Schaffter v. Creative Capital Leasing Group. This case involves the rights of a broker to commissions under a buyer broker agreement after a seller and buyer cancelled their agreements once the buyer failed to close escrow. After a series of delays due to changes in counsel, the defendant buyer filed bankruptcy. The matter has now been released from the stay. It will now go to oral arguments before the Court of Appeal.
Lange v. Sergerstrom Real Estate et al. A plaintiff filed a lawsuit without first demanding mediation. At issue was whether there was "substantial" compliance of the mediation provision by requesting it soon after the suit was filed. The appellate court upheld a strict reading of the C.A.R. clause and denied attorneys fees to the party that did not request mediation. The opinion is unpublished and C.A.R. is seeking publication.
Baker v. Osborne Development Corp. The court declined to enforce a builder's arbitration clause on various grounds, including it being a contract of adhesion and the method of obtaining the agreement to arbitrate by burying it in fine print within a warranty purchased after the initial sales contract. These were not C.A.R. contracts. In finding the arbitration clause "substantively unconscionable," the court noted that buyers would likely be more likely to initiate an action against the builder and not the reverse so that there was an imbalance in the benefit of the clause creating "substantive unconscionability." The trustees authorized a petition to depublish the case on the narrow issue of imbalance. The petition to depublish has been denied. The case can be distinguished on many grounds from typical resale purchases using C.A.R.'s RPA.
1. That C.A.R. "OPPOSE UNLESS AMENDED" SB 1399 (Simitian), regarding solar easements; amendments would refer the issue to the California Law Revision Commission.
2. That C.A.R. adopt a "NOT REAL ESTATE RELATED" position on "The California Prevention of Farm Animal Cruelty Act," which will appear on the November 2008 General Election Ballot.
Manufactured
Housing
1. That C.A.R. "SUPPORT" AB 1111 (DeSaulnier), Local
Ordinances and Age Restrictions in Mobilehome Parks.
Membership
1. That the following
applicants be granted C.A.R. Honorary Member-for-Life status:
Arcadia
AOR
Betty Jo Lanza
Frank Lee
Burbank
AOR
Vince Putrino
Margie Vierra
California Desert AOR
Shirley Baughan
Joan Burke
Jack McCarthy
Joan McCreary
Chico AOR
Ken DuVall
Barbara Rupp
Jackie Santos
Fran
Shelton
Conejo Valley AOR
Anona Kelly
Contra Costa
AOR
Joanne Dunne
Louise
Wolfe
Downey AOR
Rose Carpenter
East San Diego AOR
Juanita
Mangels
Fresno AOR
John Chamberlin
Robert DeRouchey
Maurice Rana
Inland Valleys
AOR
Carlton
Deon
Mervyn Glenn Flory
Jr.
Douglas Gorman
Bud Minton
James Sheridan
Laguna BOR
Dorothy
Moulton
Monterey County AOR
Claire Keeley
North San Diego AOR
Tom Clotfelter
Shirley Lenell
Joyce Sharp
Mary Walker
Orange Belt
AOR
Gerald
Lesinger
Roy Pond
Orange County AOR
Leo Chade
Patricia Gaines
Shirley Long
Jean Marsh
Anna Selley
Josephine Turner
Herbert Waltzman
Patricia Young
Pacific West AOR
Rose Mohr
Virginia Quirk
Pasadena-Foothills
AOR
Vera
Bezjak
South Bay AOR
Marvin Patrick
Southland Regional AOR
Martha Cunningham
Herman
Knox
Tri-Counties AOR
Gilbert Duron
Tulare AOR
Joetta
Richmond
Ventura County Coastal AOR
Margaret Burleson
Fredrick Osborne
Frank Taylor
Yosemite Gateway AOR
Ramona Scott
Mortgage Loan
Broker License Task Force
1. A motion to adopt the
Final Report and recommendations of the Mortgage Broker License Task Force
was denied approval.
Nominating
1. That the following be designated to serve as State Allocated NAR Directors for a three year term ending November 2011, and as Alternates for the 2009 elective year.
Robert J. Bailey, Santa Cruz
William E. Brown, Bay East
Allen Chiang, Rancho Southeast
Carolyn D'Agosta, No. San Diego County
Steve Goddard, South Bay
Jim Hamilton, South Bay
Bob Hart, Santa Barbara
Chris Kutzkey, Sisikiyou
Geoff McIntosh, Pacific West
Marjorie McLaughlin, San Diego
Marian Norris, Central Valley
Beth L. Peerce, Southland Regional
Jeanne Radsick, Bakersfield
Rick Violett, Pacific West
Judy Zeigler, California Desert
ALTERNATES FOR 2009 (IN PRIORITY ORDER)
John Yen Wong, San Francisco
Pat "Ziggy" Zicarelli, Southland Regional
Cheryl McFall, Central Valley
Heath Hilgenberg, California Desert
Susan Tilling, Silicon Valley
Le Francis Arnold, Rancho Southeast
Debra Howard, South Lake Tahoe
Mary Funk, Southland Regional
2. That the following individuals be elected as Directors for Life:
Allan Gantt, Pacific West
Carl San Miguel, Santa Clara
John Scarborough, Fresno
3. That Joel Singer be
elected as Executive Vice President/State Secretary for the year
2009.
4. That Steve Goddard be
elected as President-Elect for the year 2009.
5. It was reported for
information only that 2008-2009 Treasurer Beth L. Peerce would continue to
serve as Treasurer in 2009.
6. It was reported for
information that 2008 President-Elect James Liptak would automatically
become 2009 President.
Political
Affairs
1. That the voluntary political contribution allocation formula be changed
as follows for 2009:
Proposed
Formula
Personal Contributions
0% to CREPAC/Federal
25% to CREIEC
45% to CREPAC/BORPAC
30% to Local BORPAC
Corporate
Contributions
20% to CREIEC
48% to CREPAC/BORPAC
32% to Local BORPAC
Current Distribution
Formula
Personal Contributions
10% to CREPAC/Federal
15% to CREIEC (Independent Expenditures)
45% to CREPAC/BORPAC (State)
30% Local BORPAC (Local)
Corporate
Contributions
15% CREIEC
51% CREPAC/BORPAC
34% Local
BORPAC
Professional Standards
1. Last year the
Professional Standards Committee approved, subject to NAR approval, a
citation policy for Code of Ethics violations that is similar to the
citation policy already used by MLS's for MLS Rules violations. It
was reported to the Committee that NAR has advised C.A.R. that the policy
is in compliance with NAR policy. Accordingly, rules and a model
citation schedule for the new citation policy will be prepared and provided
to the local associations as soon as possible.
Property Management
1. That C.A.R. "OPPOSE UNLESS AMENDED" SB 1598 (Padilla), Landlord Authority to Restrict Smoking on Rental Properties. The amendment would remove any implication that a smoker's tenancy could not be terminated during a 12 month start-up period.
Standard Forms
Advisory
The Standard Forms Advisory
Committee received reports from 5 Regional Representatives. The
Committee approved the creation of a Buyer's Inspection Election (BIE) form
for possible release in November 2008. The Committee also approved
release of a stand alone Declaration and Proof of License (DPL) form in
anticipation of the November 2008 release. The Committee heard a
preliminary report from the Commercial Forms Study Group. The study
group is in the process of revising existing commercial forms and preparing
drafts for the SFAC of the following forms:
--Bill of Sale
--Release
Agreement
--Confidentiality and
Non-Disclosure Agreement
--Environmental Issues
Addendum
The Standard Forms Advisory Committee also heard a report from the Standard Forms/WINForms joint study group. The Committee approved the recommendation made in the Study Group report that it is not necessary for C.A.R. to retain printed versions of every single form. In light of this recommendation, the SFAC approved making the Database Disclosure (DBD) form available via WINForms only. The Committee will also review their recommendation that silent revisions should be immediately effective via WINForms Online within a follow up conference call.
Finally, the Standard Forms
Advisory Committee received 79 comments. On a conference call in May,
the Committee reviewed 35 comments received since the January 2008
meeting. The committee reviewed the balance of the comments in June
2008.
Strategic Planning & Finance
1. That the Statement of
Income and Expenses by program for the three months ending March 31, 2008
be approved.
Total C.A.R.
Revenue of $19,004,700
Expenses of $ 5,169,700
An excess of income over
expenses of $13,835,000
Political Activities Fund
An excess of income over expenses of $2,432,000
Issues Action
Fund
An excess of income over
expenses of $1,299,400
The C.A.R. Balance Sheet as
of March 31, 2008
Total assets of $71,881,800
(of which $53,203,100 are current
assets)
Total
liabilities of $6,487,300 (of which $6,242,100 are current
liabilities)
C.A.R. Fund Balance of
$65,394,500
2. That the Projected Statement of Income and Expenses by program for the year ending December 31, 2008 be approved.
Total C.A.R.
Revenue of
$27,301,200
Expenses of
$26,300,700
An excess of income over
expenses of $1,000,500
Political Activities Fund
An excess of income over expenses of $1,862,100
Issues Action Fund
An excess of income over
expenses of $714,400. This amount will be allocated to IMPAC as
approved by the Directors.
3. That the audited
Statement of Income and Expenses by program for the twelve months ending
December 31, 2007 be approved.
Total C.A.R.
Revenue of $33,831,800
Expenses of $26,798,900
An excess of income over expenses of $7,032,900
Political Activities
Fund
An excess of income over
expenses of $1,360,700
Issues Action
Fund
An excess of income over
expenses of $1,150,500
This amount will be
allocated to IMPAC as approved by the Directors.
The C.A.R. Balance Sheet as of December 31, 2007
Total assets of $54,915,700 (of which $36,095,900 are current assets)
Total liabilities of $4,427,400 (of which $4,207,800 are current liabilities)
C.A.R. Fund Balance of $50,488,300
4. To approve an augmentation to the 2008 capital budget in the amount of $25,000 to replace the main waterline from 2nd floor restrooms to 4th floor restrooms and repair walls as necessary as a result of the pipe replacement in the C.A.R. headquarters building in Los Angeles.
5. To raise awareness among members and consumers about environmental issues, encourage the green initiative of C.A.R. business practices, and foster the longer-term impact among members and consumers, C.A.R. approves $155,700 to fund C.A.R.'s Green Initiative, of which $51,000 was approved by the C.A.R officers before this meeting.
6. It was reported for information only that, in keeping with our efforts to establish a trusted public site, C.A.R. will work in conjunction with NAR on their forthcoming national consumer website to add California-specific content and explore opportunities for increasing our members' value proposition and exposure to consumers.
Other
1. That C.A.R. rescind its policy adopted in October 2007 to "SPONSOR" SB 1054 (Machado) and adopt a position of "OPPOSE UNLESS AMENDED." The amendment would eliminate the provision currently in the legislation which would preclude an individual licensee who provides an opinion of the value of a residential real property from taking a listing on that property within 12 months.
