CALIFORNIA ASSOCIATION OF REALTORS®
BOARD OF DIRECTORS
525th SESSION
JUNE 5 - 6, 2009
The following is a summary of the significant action items approved by the CALIFORNIA ASSOCIATION OF REALTORS® Board of Directors at its June 2009 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.
1. It was reported for information only that the CALIFORNIA REALTOR® SHOWCASE and C.A.R.’s Legislative Day attracted more than 2,000 attendees. The SHOWCASE featured thirty table top exhibits, three powerful seminars, and a sold out Market Forecast Luncheon. The CALIFORNIA REALTOR® EXPO will be held October 6 - 8, 2009 at the
CALMLS/calREDD™
1. It was reported for information only that the CALMLS directors approved a tax and security contract as well as some other necessary contracts for launch.
1. It was reported for information only that the C.A.R. Scholarship Foundation granted awards totaling $6,000. A donation was received by the C.A.R. Scholarship Foundation Trustees from Thomas Berge in the amount of $10,000 to establish the Orin G. Berge, Sr. Memorial Perpetual Scholarship Fund. The C.A.R. Education Foundation announced the distribution of its first awards to students and professionals totaling $5,902.
1. That C.A.R. “OPPOSE” AB 899 (Torres), pertaining to CID disclosure requirements.
2. That the California Association of REALTORS® “SPONSOR” legislation in 2010 providing that a governing document shall not be adopted or amended to prohibit the rental or lease of a separate interest in a common interest development unless the provision that imposes the prohibition is enacted, pursuant to a written ballot, by a vote of the owners of separate interests in the common interest development (CID) and is approved by not less than 2/3 of such owners.
3. It was reported for information only that the Common Interest Development Committee requests that the Standard Forms Advisory Committee consider developing a property management agreement for HOA management.
1. It was reported for information only that, per the CREPAC Bylaws, the following slate is duly noticed for approval in October 2009. 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 2009- November 2012)
Dennis Mason, Region 2
Jared Martin, Region 12
Irma Vargas, Region 17
Mary Funk, Region 18
Nancy Gilmore, Region 23
NOMINEES FOR CREPAC ALTERNATE
(November 2009 - November 2010)
Leigh Rutledge, Region 3
Steve Reiser, Region 5
Gene Lentz, Region 9
Carol Facciponti, Region 16
Greg Pawlik, Region 17
Greg Haas, Region 19
Mark Marchand, Region 30
James Irving, Region 31
Cas Pinkowski, Region 32
2. It was reported for information only that proposed bylaws amendments to the CREPAC bylaws are duly noticed to be voted on by the directors at its upcoming October 2009 directors’ meetings in
The full text of the proposed bylaws changes for CREPAC are underlined as shown below:
Proposed Changes CREPAC
Proposed Amendments to the
POLITICAL ACTION COMMITTEE (CREPAC) BYLAWS
ARTICLE V - BOARD OF TRUSTEES
Section 3. Nominating Committee and Nominations.
3.1 Composition of the Nominating Committee. The Nominating Committee of five persons shall be comprised of the current Chairman, who shall also chair the Nominating Committee, the C.A.R. President, one additional Trustee and two C.A.R. REALTOR® or REALTOR-ASSOCIATE® members, who are not Trustees, appointed by the Chairman of CREPAC. All members of the Nominating Committee must be C.A.R. REALTOR® or REALTOR-ASSOCIATE® members who contribute at least the minimum suggested amount to all designated C.A.R. sponsored fundraising programs. No Trustee seeking election as a Trustee shall serve on the Nominating Committee or shall vote to select persons to be on the Nominating Committee. If the Chair is seeking election as a Trustee, then the appointments to the Nominating Committee, including the Nominating Committee Chair, shall be selected by a majority of the remaining voting Trustees not seeking election.
3. It was reported for information only that the CREPAC Trustees transferred $790,000 to National RPAC, for a total “Fair Share” 2009 contribution of $790,000 and $46,000 was funded from RPAC to the
4. It was reported for information only that CREPAC contributed $455,043 to bi-partisan candidates for the Assembly and Senate, as well as to the Democratic and Republican Parties.
1. It was reported for information only that the Equal Opportunity - Cultural Diversity Committee supports C.A.R.’s existing policy to “OPPOSE UNLESS AMENDED” AB 985 (De La Torre) to replace the existing Point-of-Sale provision with an electronic screening approach based upon the existing social security number removal law. The legislation will be funded by a $1-$2 per page charge, not to exceed $10, on recorded documents on an ongoing basis.
1. That the Inland Valleys Association of REALTORSÒ be reassigned, per their request, from C.A.R. Region 14 to C.A.R. Region 23, beginning with the 2010 elective year.
1. It was reported for information only that the C.A.R. Housing Affordability Fund annual golf fundraising event grossed $87,000 - $12,000 more than last year’s golf classic. The C.A.R. Housing Affordability Fund also unveiled the Mortgage Protection program. Under the Mortgage Protection Program, Qualified First Time homebuyers who lose their job due to layoffs may be eligible to receive $1,500 per month for up to 6 months to help make mortgage payments. A qualified co-buyer can also participate in the program and receive a monthly benefit of $750 per month. Program benefits also include coverage for accidental disability and a $10,000 death benefit. CARHAF has allocated $1 million to this effort. Additionally, CARHAF was awarded a National Association of REALTORS® Ira Gribin Grant of $420,000 to supplement this program.
1. That C.A.R. amend its sponsored bill, SB 206, to only include REO property for all purchasers utilizing the property as a principal residence.
1. It was reported for information only that, per the IMPAC Bylaws, the following slate is duly noticed for approval in October 2009. 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 2009- November 2012)
Cynthia Wood, Region 4
Leannah Hunt, Region 9
Les Fishman, Region 21
Michael Mercurio, Region 24
Nancy Hunt, Region 32
NOMINEES FOR IMPAC ALTERNATE
(November 2009 - November 2010)
Anita Thede, Region 6
Lisa Muetterties, Region 7
Sandra Haney, Region 10
Lynn Heintz, Region 12
Patricia Douglas, Region 17
Carl San Miguel, Region 19
Erik Weichelt, Region 24
2. It was reported for information only that proposed bylaws amendments to the IMPAC bylaws are duly noticed to be voted on by the directors at its upcoming October 2009 directors’ meetings in
The full text of the proposed bylaws changes for IMPAC are underlined as shown below.
Proposed Amendments to the ISSUES MOBILIZATION POLITICAL ACTION COMMITTEE (IMPAC) BYLAWS
ARTICLE V - BOARD OF TRUSTEES
Section 3. Nominating Committee and Nominations. 3.1 Composition of the Nominating Committee. The Nominating Committee of five persons shall be
comprised of the current Chairman, who shall also chair the Nominating Committee, the C.A.R. President, one additional Trustee and two C.A.R. REALTOR® or REALTOR-ASSOCIATE® members, who are not Trustees, appointed by the Chairman of IMPAC. All members of the Nominating Committee must be C.A.R. REALTOR® or REALTOR-ASSOCIATE® members who contribute at least the minimum suggested
amount to all designated C.A.R. sponsored fundraising programs. No Trustee seeking election as a Trustee shall serve on the Nominating Committee or shall vote to select persons to be on the Nominating Committee. If the Chair is seeking election as a Trustee, then the appointments to the Nominating Committee, including the Nominating Committee Chair, shall be selected by a majority of the remaining voting Trustees not seeking election.
3. It was reported for information only that IMPAC has made the following contributions.
--Yolo County AOR: Up to $16,500 to match local contributions for hiring a contract lobbyist to oppose a local Point-of-Sale energy audit mandate.
--North Bay AOR: $10,000 for a study on the effects of a Point-of-Sale ordinance on a community.
--
--California Natural Resources Group: $20,000 to continue its action plan to reform the federal Endangered Species Act and defend against the regulatory or legislative actions to expand the Act and the federal Clean Water Act.
--
--California Desert Association of REALTORS®: $2,800 to cover the costs for office equipment, stationery and communication devices for a new GAD position.
1. It was reported for information only that, since the January meetings, the Legal Action Fund Trustees approved an amicus brief on one case:
Wesbey v. Toll
This case involved a buyer in a new subdivision. Although it was disclosed, the public report indicated that there was an easement that is used to provide access to several lots in the subdivision to be owned by the home owner’s association. Without amending the public report or notifying DRE, the developer conveyed the land to an individual lot owner but still kept the easement rights for access. This left the responsibility for upkeep on an individual, not the HOA. The brief was authorized on the limited issue of whether current regulations governing material changes in pubic reports of a subdivision includes the deletion of common area as a potential material change even though it is not specifically listed.
1. That C.A.R. “SPONSOR” legislation to expand borrowers’ anti-deficiency protections to cover refinanced purchase monies, and “recourse” junior notes created as part of a purchase, or loans which increase the basis of the property.
Membership
1. That the following applicants be granted C.A.R. Honorary Member-for-Life status:
Grace Feld
Joy Hudson
Chang D Ju
Parveen Knighton
Barbara MacDonald
Mary Ann Musico
Lamonta Pierson
Howard Schreiber
Elsie Wynn
Doris Chasen
Marcella Steinkuhler
Citrus Valley AOR
Thomas Krafft
Contra Costa AOR
Barbara Bailey
Richard Call
Gilberte Causing
Richard Clancy
James Copeland
Dick Cosca
Diane Ham
Walter Hanson
Terry Macken
MaryAnn Patison
Valerie Reschke
Eugene Ross
Ellie Rowe
Anne Marie Sefranka
George Vujnovich
Clark Wallace
Nancy Walton
Gloria Young
Desert Communities AOR
Larry Briggs
Eleanor Loomis
Donald Kay
Jan Molinaro
El Dorado County AOR
Lucy Barnes
Colette Combs
Fresno AOR
Opal Nichols
Les Reid
Greater Antelope Valley AOR
Gene Autry
Hemet-San Jacinto BOR
Ann Grainger
Inland Valleys AOR
Marc Verdonck
Mariposa
Shirley Felix
Bing Girling
Phyllis Hayden
North
Clyde
Orange
Sarah Belding
Jackie Groendycke
Evelyn Hayden
Leonard Lawicki
Pacific
Evie Keller
Henry Marquez
Maggie Ryan
John Theaker
Betty Coull
Donna Dixon
Pasadena-Foothills AOR
Frank Haltom
Jeannette Muirhead
San Luis Obispo AOR
Nancy Sarullo
Santa Clara County AOR
Gene Alberts
Tina Frediani
Philip Nisonger
Douglas Snyder
Khalid Tereza
Scenic Coast AOR
Patricia Frawley
Southland Regional AOR
James Higashida
Norene Kurnik
Albert Reyna
Edward Zeier
Fred Short
West
Donilia Nunez
MLS/CBT
1. That C.A.R. petition NAR to modify its “Standards of Conduct” in order to allow MLSs the ability to impose a Code of Ethics, Article 11 competency requirement on MLS Participants in the MLS Rules.
Nominating
1. That the following be designated to serve as State Allocated NAR Directors for a three year term ending November 2012 and as Alternates for the 2010 elective year.
Diana Bull,
Don Faught, Bay East
Wendy Furth, Southland Regional
Heath
Bob Kulick,
James J. Liptak, Paso Robles
Ted Loring,
Andy Nazaroff,
Gary Thomas,
Alternates (priority order)
Sharon Bowler,
Steve Rosco, Pacific West
Debra Howard,
Leslie Munger,
Susan Tilling,
Erik Weichelt,
Richard H. Stone,
Mary Jane Cambria,
2. That the following individuals be elected as Directors For Life:
Allen Chiang, Rancho Southeast
Jeanne Garde,
Susan Tilling,
3. That Joel Singer be elected as Executive Vice President/State Secretary for the year 2010.
4. That Don Faught be elected as Treasurer for the years 2010 - 2011.
5. That Beth L. Peerce be elected as President-Elect for the year 2010.
6. It was reported for information only that 2009 President-Elect Steve Goddard would automatically become 2010 President.
Political Affairs
1. It was reported for information only that C.A.R. will explore the feasibility, both legally and politically, of alternative methods to collect political investments.
REO Advisory Group
It was reported for information only that the REO Advisory Group has focused on the characteristics of the troubled property market and "best practices" that could be recommended in connection with short sales and REO sales. The Advisory Group's recommended Best Practices are intended to become brief (one page or less) distributions to C.A.R. members and be melded into larger information and training materials for members.
Proposed Best Practices in Short Sales
- Agent must demonstrate to lenders real efforts to negotiate best (fair market) price on a short sale; they cannot be cavalier just because seller isn't realizing a profit.
- Selling agents must get their package to junior note holders and PMI carrier early in the process. No payments outside of escrow, especially to junior note holders; all monies must be reflected on HUD 1.
- Protect sellers by seeking a moving allowance from lender if justifiable.
- Agents must recommend Tax advice and Legal counsel, especially regarding debt forgiveness tax liability.
- C.A.R. should distribute the required documents "transaction template" prepared by Advisory Group members.
- C.A.R. should consider producing a checklist for borrowers of options to consider when contemplating a short sale or loan modification.
Proposed Best Practices in REO Transactions
- REO advisory should cover choice of escrow issues; including implications of "seller choice," costs of out of area services and differences in the escrow's understanding of agent duties depending upon regional practice.
- C.A.R. should consider producing an advisory for tenants in an REO property, especially, but not only, for use in a "cash for keys" transaction.
-C.A.R. should list on our website all the known loan servicers signed up with the Hope for Homeowners program
- C.A.R. should work with DRE to ensure that short sale/REO training can be approved for risk management credit.
- MLS providers should review rules regarding the ability to "net commissions" or "commissions less concessions" in private remarks sections. Also, review whether remarks should be able to contain a link to another site for forms or contact information for a required loan agent. MLS should also consider property status reporting including "sale pending; subject to lender approval"
- C.A.R. should review the REO addendum in light of new federal law, and consider a check box that allows backup offers only; and a check box for sellers to acknowledge tax impact possibility (and the need for legal advice).
Additional Recommendations
- C.A.R. should continue to reach out to individual major lender / servicers on standardized practices for short offers and REO sales.
- MLS status reporting needs to deal with "sale pending; subject to lender approval"
Standard Forms Advisory
1. It was reported for information only that the Standard Forms Advisory Committee (SFAC) received reports from 14 Regional Representatives. Many of the comments were regarding the Residential Purchase Agreement (RPA) and the Residential Listing Agreement (RLA). A report was submitted on behalf of the Property Management Committee to the SFAC. The SFAC recommends the creation of a Property Management study group to consider these comments and others. The SFAC also reviewed the recently revised forms and will consider some minor and substantive changes for review at their October business meeting. A discussion was held on the RLA regarding the protection language. There were eight regions reporting on this issue. It was noted that five regions wanted to leave the form unchanged, one region was evenly divided on the matter and two regions wanted to limit the protection to offers that had been presented in the last 30 days. The SFAC decided to leave the form unchanged. The RPA Study Group completed their first draft of the RPA which the SFAC presented at the SFAC Forum on Forms. In response to the Forum on Forms, 25 comments were received which will be referred back to the RPA Study Group. There was significant discussion on the first draft of the proposed revision to the RPA by the SFAC. The SFAC comments will be referred back to the RPA Study Group as well. Finally, the SFAC reviewed 22 of the 125 general comments received. The balance of the comments will be reviewed on an upcoming conference call.
Strategic Planning & Finance
1. That the audited Statement of Operating Income and Expenses by program for the twelve months ending December 31, 2008 be approved.
Total C.A.R.
Revenue of $28,659,300
Expenses of $24,690,700
An excess of operating income over expenses of $3,968,600
Political Activities Fund
An excess of income over expenses of $1,711,000
Issues Action Fund
An excess of income over expenses of $989,500
This amount will be allocated to IMPAC as approved by the Directors.
The C.A.R. Balance Sheet as of December 31, 2008
Total assets of $55,597,700 (of which $36,810,400 are current assets)
Total liabilities of $3,454,100 (of which $3,063,600 are current liabilities)
C.A.R. Fund Balance of $52,143,600
2. That the Statement of Operating Income and Expenses by program for the three months ending March 31, 2009 be approved.
Total C.A.R.
Revenue of $18,421,100
Expenses of $ 5,418,300
An excess of operating income over expenses of $13,002,800
Political Activities Fund
An excess of income over expenses of
$2,711,400
Issues Action Fund
An excess of income over expenses of $1,197,300
The C.A.R. Balance Sheet as of March 31, 2009
Total assets of $71,250,400 (of which $52,731,400 are current assets)
Total liabilities of $5,965,400 (of which $5,876,500 are current liabilities)
C.A.R. Fund Balance of $65,285,000
3. That the Projected Statement of Operating Income and Expenses by program for the year ending December 31, 2009 be approved.
Total C.A.R.
Revenue of $26,662,700
Expenses of $26,114,800
An excess of operating income over expenses of $548,100
Political Activities Fund
An excess of income over expenses of $2,063,700
Issues Action Fund
An excess of income over expenses of $579,600. This amount will be allocated to IMPAC as approved by the Directors.
4. It was reported for information only that one additional attorney will be hired for the Member Legal Services Program (Legal Hotline); the cost will be absorbed in the current budget.
OTHER
1. That William E. Brown be approved as the next California candidate for the N.A.R. office of First Vice President for a year to be determined.
