CALIFORNIA ASSOCIATION OF REALTORS®
BOARD OF DIRECTORS
OCTOBER 8 - 9, 2004
The following is a summary of the significant action items approved by the
CALIFORNIA ASSOCIATION OF REALTORS® Board of Directors at its October 2004
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
1. It was reported for information only that a REALTOR®.COM "Users Group"
will be formed to be comprised of Association Executives and REALTOR®
members to engage in dialog and help ensure quality performance of the new
REALTOR®.COM Marketing Program.
1. To approve the selection of Richard Sax, San Francisco, as the recipient
of the 2004 California Distinguished REALTOR® Award, the highest
recognition that C.A.R. can bestow on a member.
C.A.R. Scholarship Foundation 1. It was reported for
information only that funds were awarded for scholarships totalling $9,500,
and that perpetual funds have been established in memory of Annette A.
Henderson-Balmer and in memory of Julia "Deede" Keller.
California REALTOR® EXPO Advisory
1. It was reported for information only that total attendance at the
California REALTOR® EXPO was approximately 8,400.
Common Interest Development
1. That C.A.R. support legislation requiring homeowner associations to
disclose to homeowners the sources and qualifications of those sources that
provided information regarding the replacement cost and useful life of
associations' reserve account statements.
1. It was reported for information only that 2005 will be C.A.R.'s 100th
1. That C.A.R. approve the following slate of nominees for CREPAC Trustee
Nominees for CREPAC Trustee
(November 2004 - 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
1. That C.A.R., in conjunction with NAR, support the inclusion of the
following criteria for Base Realignment and Closure (BRAC):
a. research, development, and testing; and
b. community impact.
Foreign Language Task Force
1. That C.A.R. authorize the sum of $50,000 to translate and make available
the C.A.R. Residential Lease/Month-to-Month Rental Agreement (C.A.R. Form
LR) into the five languages required by Civil Code section 1632, namely,
Spanish, Chinese, Korean, Tagalog and Vietnamese.
2. That C.A.R. authorize the sum of $80,000 to be used for the creation and
translationin Spanish, Chinese. Korean, Tagalog and Vietnamese of a C.A.R.
publication explaining in non-legal, non-technical terms the Residential
Purchase Agreement and other C.A.R. Standard Form documents typically used
in the sale of residential real property.
1. That C.A.R. co-sponsor legislation to amend the state's density bonus
a) repeal existing law requiring developers to prove economic viability of
housing developments to local governments and;
b) provide for a laundry list of incentives and concessions from which a
developer may select.
2. That C.A.R. co-sponsor legislation to remove the sunset dates from the
"Anti-Nimby" law and "no net loss" housing law which provide for attorney's
fees to the prevailing plaintiff.
3. That C.A.R. co-sponsor legislation to broaden the application of
"build-by-right" standards to housing developments.
4. That C.A.R., in conjunction with NAR, "SUPPORT" expanding the definition
of small bank for Community Reinvestment Act purposes to one billion
dollars and add a community development requirement that includes
investment and service criteria.
5. It was reported for information only that the Housing Opportunity
Committee decided to take a "Neutral" position on the issue of expanding
the definition of "Community Development" for Community Reinvestment Act
purposes to include "individuals who reside in rural areas."
1. That C.A.R. approve the following slate of nominees for IMPAC Trustee
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
2. It was reported for information only that the IMPAC Trustees approved
the following contributions:
--Citizens for Improved Transportation: Yes on Measure J, to support a
transportation sales tax measure that will appear on the November 2004
ballot in Santa Cruz County, pursuant to the request of the Santa Cruz
Association of REALTORS®...$10,000.
--The California Natural Resources Group (CNRG), an advocacy/education
coalition focused on state and federal endangered species issues --
including critical habitat designations and the proposed listing of species
-- that identifies the onerous regulatory burdens and costs placed on
businesses, property owners and local governments...$20,000.
Inclusionary Zoning Task Force
1. That C.A.R. reaffirm its opposition to mandatory forms of inclusionary
zoning. Inclusionary zoning dwellings built as a result of a
government mandate shall not be included in a local government's fair share
allocation. When affordable housing is built, the home builder shall
voluntarily construct the units, the costs of subsidy shall be equitably
borne, owners of the affordable units shall receive information about
homeownership as a prerequisite, and owners shall always receive their fair
share of the equity growth and recover their costs of their real property
improvements, downpayment and costs of sale. Finally, C.A.R.
reaffirms the provisions of the Costa Hawkins Act, most notably the new
Legal Action Fund
1. That in light of ongoing developments in the Freeman cases, $500,000 be
transferred to the Legal Action Fund; and that C.A.R. request up to
$350,000 from the N.A.R. Legal Action Fund to further supplement the
2. It was reported for information only that the Legal Action Fund Trustees
approved an allocation of up to $500,000 to fund lead counsel in the
Freeman II and Hemphill cases on an equal cost sharing basis with the local
Associations and Sandicor. Funding does not include costs of local
3. It was reported for information only that the Trustees approved an
additional $20,000 for Freeman v. Lasky (Freeman III). This case was
dismissed but Barry appealed. The appeal is scheduled for hearing in
4. It was reported for information only that the following developments had
taken place in other significant cases being tracked by the Legal Action
--Sterling v. Taylor. Authorized an amicus brief in the case of
Sterling v. Taylor, currently pending before the California Supreme Court
supporting the concept thatoutside evidence may be used to interpret
essential elements of a written contract but no create missing terms
entirely. This was a statute of frauds case.
--Coldwell Banker Residential Brokerage v. Superior Court (Salazar).
This case held that a real estate broker who is not and never has been in
control of physical premise of a home should not be responsible for
injuries of occupants with whom the broker has no agency or other legal
relationship. Specifically, the broker hasduties to the buyers but
not their minor children. The Trial Lawyers petitioned the California
Supreme Court to depublish this case. C.A.R filed a opposing the
Trial Lawyers and supporting the continued publication of this favorable
case. The case will remain published.
--Ellingwood v. Rand. Authorized filing an amicus brief supporting
the concept that real estate brokers should not be held liable to
nonparties to a real estate contract. This involved the children and
grandmother but is essentially the same concept as the Salazar case.
--West v. Taylor & Goins. Authorized an amicus brief supporting
the plaintiff/listing broker's position in the malicious prosecution case
against an attorney that hadno probably cause to add the listing broker as
a defendant to a lawsuit.
--Cemex v. County of Los Angeles. Authorized filing an amicus
brief supporting the City of Santa Clarita in their fight against an
expanded mining operation on the issue that federal preemption of local
land use and environmental restrictions should not be permitted without
affording due consideration and opportunity for involvement by the
responsible local government agencies and other affected
--Business License Tax. Funded obtaining an outside legal opinion on
the issue of city license taxes that tax gross revenue of the brokers and
then the salesperson's revenue on the same transaction, resulting in a
double tax on the samerevenue. The opinion was to assist local AOR'
fighting onerous city business license taxes.
1. That C.A.R. sponsor legislation to require a 4 hour mandatory continuing
education course in Risk Management.
2. That C.A.R. sponsor legislation to create a statutory requirement for 60
days notice of a claim to a broker who is a prospective defendant before a
lawsuit can be filed.
3. That C.A.R. sponsor legislation to create, or advance administratively,
a change inrequirements for the reporting of claims to insurers to allow a
60 day "window" period in which to resolve a claim before it can be counted
against a broker's or real estate firm's claims/loss history, provided the
settlement does not result in payment by the insurer.
4. That C.A.R. sponsor legislation to create a "certificate of merit"
requirement for lawsuits against real estate licensees modeled after the
existing rule for Architects and Engineers. The rule should include
standards for experts that include licensure, current practice and
5. That C.A.R. adopt the following positions on the November 2004 Ballot
Proposition 1A: Protection of Local Government Revenues -- "FOR"
Proposition 59: Public Records, Open Meetings -- "NOT REAL ESTATE
Proposition 60: Election of Political Parties -- "NOT REAL ESTATE
Proposition 60A: Surplus Property -- "NOT REAL ESTATE RELATED"
Proposition 61: Children's Hospital Projects -- "NOT REAL ESTATE
Proposition 62: Elections and Primaries -- "NOT REAL ESTATE
Proposition 63: Mental Health Services -- "NOT REAL ESTATE RELATED" (Proposition 64: Private Enforcement of Unfair Business Competition
Laws. -- "FOR"
See Note Below) Proposition 65: Local Government Funds, Revenues.
State Mandates. Initiative Constitutional Amendment -- "NEUTRAL"
Proposition 66: Limitations on "Three Strikes" Law -- "NOT REAL ESTATE
Proposition 67: Emergency Medical Services -- "NOT REAL ESTATE
Proposition 68: Non-Tribal Commercial Gambling Expansion -- "NOT REAL
Proposition 69: DNA Samples -- "NOT REAL ESTATE RELATED"
Proposition 70: Tribal Gaming Compacts -- "NOT REAL ESTATE
Proposition 71: Stem Cell Research -- "NOT REAL ESTATE RELATED"
Proposition 72: Health Care Coverage Requirements -- "NOT REAL ESTATE
Note: In January 2004 the C.A.R. Board of Directors adopted a "FOR"
position on Proposition 64: Limits on Private Enforcement of Unfair
Business Competition Laws.
6. It was reported for information only that the staff will prepare an
Issues Briefing Paper exploring options for changing the unworkable bonding
requirement that applies to agents of equity purchasers, for discussion at
the January 2005 meeting.
1. That the following applicants be granted C.A.R. Honorary-Member-For-Life
Lois Jean Hoffman
Bie Nio Hacking
Bay East AOR
Roy W. Truax
Big Bear AOR
Wilma E. Peery
California Desert AOR
Central Valley AOR
Dean D. Russell
John Gered McLaughlin
Contra Costa AOR
Kings County BOR
Lake County BOR
Rocky V. Welczeck
Monterey County AOR
Newport Beach AOR
North Bay AOR
Monica Mc Kechnie
Eileen L. Roach
Ian D. Atkinson
Orange County AOR
Joanne Matthews Brunson
Pacific West AOR
Harriet J. Vanne'
Palm Springs Regional AOR
Madeline S. Brechlin
Anna Jane Reiz
Emil L. Bader
John W. Quinn
Santa Barbara AOR
Santa Cruz AOR
Southland Regional AOR
Robert E. Davis
Kenneth C. Kelly
Bettie A. Fuller
Clark Y. Tokunaga
Tahoe Sierra BOR
Robyn Falster Genest
Political Affairs 1. That C.A.R. add a $197 "True
Cost of Doing Business" option to the dues billing statements prepared for
local associations, in addition to the current $49 Political Survival
option, effective for the 2006 dues billing cycle.
1. It was reported for information only that C.A.R. reaffirms its position
in opposition to NAR's imposition of a mandatory policy limiting the
Grievance Committee's ability to carry an Ethics Complaint forward after it
has been withdrawn by the original complainant.
2. It was reported for information only that at the June 2004 meetings,
C.A.R. adopted an official position opposing mandatory mediation. As
a result, C.A.R. sent a letter to NAR, advocating 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. C.A.R.'s letter was considered by the Rules and
Interpretations Subcommittee, at their September meeting. The
Subcommittee decided to take no action regarding making mediation mandatory
under Article 17, but, instead, to recommend more activity promoting the
use of mediation.
3. It was reported for information only that at the June 2004 meetings,
C.A.R. adopted 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. As a result, C.A.R. sent a
letter to NAR, advocating that NAR not amend policy to prohibit "remote"
testimony at ethics and arbitration hearings. C.A.R.'s letter was
considered by the Rules and Interpretations Subcommittee at their September
meeting. The Subcommittee is recommending to the Professional
Standards Committee, at the November meeting, that the NAR rules be amended
to allow remote testimony in certain circumstances.
4. It was reported for information only that at the June 2004 meetings,
C.A.R. adopted an official position opposing NAR's mandatory policy that
required revisions to the California Code of Ethics and Arbitration Manual
("Manual"). Those revisions limited the Grievance Committee's ability
to carry forward, as the complainant, a withdrawn Ethics Complaint to those
times when the allegations constituted a possible violation of public
trust. As a result, C.A.R. sent a letter to NAR asking NAR to reconsider
and rescind the policy. C.A.R.'s letter was considered by the Rules
and Interpretations Subcommittee, at their September meeting.
C.A.R.'s request was denied. Subcommittee said they would reconsider
when documentation of actual undesirable outcomes was provided.
Property Information/MLS Task Force
1. It was reported for information only that, as a result of the
development of the Intelligent Agent (patent pending) data retrieval
technology, an opportunity has been identified to develop a product that
will allow a user to view MLS listing information from one or more MLS's
from a single source, while still maintaining each MLS's control of its own
data, identity, and independence. The Property Information/MLS Task
Force recommends that C.A.R. proceed with developing this product.
This product development would be funded from existing Intelligent Agent
development funds, with an estimated cost of $125,000.
Property Management 1. That C.A.R. support
legislation that promotes homeownership opportunities through voluntary
conversion of rental units.
Real Estate Business Services
1. That the following slate of nominees for a two-year term on the REBS
Board of Directors be approved, and that the C.A.R. President be instructed
to elect these individuals on behalf of C.A.R.
REBS Directors Elected for 2005 - 2006:
Alan Arora, Los Angeles, Chief Executive Officer, Real Estate Business
Annette Graw, Manhattan Beach, Broker, South Bay Brokers
Dianne McMillan, Vista, Association Executive, North San Diego County
Association of REALTORS®
Gary Thomas, Aliso Viejo, Broker/Owner, RE/MAX Real Estate Services
The following REBS Directors have continuing terms through 2005:
Richard Genari, Greater Antelope Valley, Owner, AT Realty
Becky Gould, Novato, Broker/General Manager, Frank Howard Allen Co.
Rick Hoffman, San Diego, President/CEO, Coldwell Banker Associates
Bob Kulick, Santa Clara, Broker/Owner, NOVA Investment Realty
Joel Singer, Los Angeles, Executive Vice President, California Association
Strategic Planning & Finance
1. That C.A.R. allocate matching funds to the Housing Affordability Fund
for the 2004 calendar year fundraising cycle, in an amount equal to the
gross dollars raised by the HAF and not to exceed $500,000.
2. That C.A.R. create a "Defense Strategy Advisory Committee" to include 11
members as follows:
- The Chair, Vice Chair or member of Association Executives
- The Chair, Vice Chair or member of Consumer Protection Forum;
- The Chair, Vice Chair or member of Legal Action Fund;
- The Chair, Vice Chair or member of Legislative Committee;
- The Chair, Vice Chair or member of the Standard Forms Advisory
- 6 directors to serve as members at large to serve staggered 3-year
3. To approve a 2005-2007 strategic plan and 2005 budget with the following
- C.A.R. Revenue $24,609,000
- C.A.R. Cost $23,071,800
- Net Surplus $1,537,200
- Political Activities Fund Revenue $1,506,600.
- Issue Action Fund Revenue $1,506,600
- Issue Action Fund Costs $770,600
- Issue Action Fund Transfer to IMPAC $736,000
- 105 budgeted C.A.R. staff positions.
- Membership dues, including $115 for operating programs, $10 for the
Political Activity Fund and $10 for the Issues Action Fund, are set at a
total of $135 per member (predicated on 2005 year end membership of
- A 2005 Capital Budget (funded with Association reserves) totaling
4. To approve for members in areas not serviced by local associations an
additional $30 in membership dues. This amount would be in excess of
the dues approved for members coming through the local associations.
5. To approve a 2004 budget augmentation with the following criteria:
--That $314,000 be approved for an additional four percent pension
contribution to the C.A.R. and REBS employee pension plan for 2004,
augmenting the previously approved budget of ten percent.
--To approve a capital expenditure for Headquarters Building Improvements
6. That the Association's Audited Financial Statements as of August 31,
2004 be approved:
The Statement of Income and Expenses for the eight months ending August 31,
--Revenue of $19,797,900
--Expenses of $13,172,800
--An excess of income over expenses of $6,625,100
Political Activities Fund
An excess of income over expenses of $953,200
Issues Action Fund
An excess of income over expenses of $890,600
The C.A.R. Balance Sheet as of August 31, 2004
Total assets of $30,340,500 (of which $22,698,900 are current assets)
Total liabilities of $4,983,400 (of which $4,004,600 are current
C.A.R. Fund Balance of $25,357,100
7. That the Projected Statement of Income and Expenses by program for the
year ending December 31, 2004 be approved.
--Revenue of $22,958,500
--Expenses of $21,536,500
--An excess of income over expenses of $1,422,000
Political Activities Fund
An excess of income over expenses of $548,100
Issues Action Fund
An excess of income over expenses of $677,900. This amount will be
allocated to IMPAC as approved by theDirectors.
1. That C.A.R. appoint a task force to gather additional information before
making a decision on whether to sponsor statewide legislation to resolve
the local business license tax issue presented by the Beverly Hills/Greater
Los Angeles Association of REALTORS®.
1. That Staff be directed to schedule the Legislative Day/Directors
Meetings in late April/early May timeframe at the earliest possible
Sacramento Convention Center and adjacent hotels availability.
The following special awards were presented at the Board of Directors
2004 Outstanding Committee Chairs
Association Executives: Sandy Haney
Association Presidents, Leadership Forum: Bill Brown
Award Selection: Carolyn D'Agosta
California REALTOR® EXPO Advisory: Marie Thomas
C.A.R. Leadership Development Forum: Curt Cournale
C.A.R. Scholarship Foundation Trustees: Mark Consalvo
Commercial Investment: Bob
Common Interest Development: Malcolm
Communications Advisory: Bill
Credentials: Ann Bracci
CREPAC Trustees: Paula Colombo
Educational Services Advisory: Mickey
Equal Opportunity- Cultural Diversity: Ron Burkhart
Federal Issues: John
Housing Opportunity: Marjorie McLaughlin
Housing Affordability Fund: Ben Heinrich
IMPAC Trustees: Matt
International Real Estate Forum: Dianne
Land Use and Environmental: Art
Legal Action Fund Trustees: Kevin Walsh
Legal Affairs Forum: Bill Jansen
Legislative: Beth Sommer Peerce
Local Governmental Relations: Virginia Butler
Manufactured Housing: Kay LeMenager
Membership: Betty Taisch
MLS/Computer and Business Technology: Bob Hart
Nominating: Gary Thomas
Political Activities Fund: Candice Carpenter
Political Affairs Committee: Mary
Professional Standards: Darrell Sparks
Property Management: Bill Horne
Real Estate Finance: Greg
REALTOR® Risk Managementand Consumer Protection Forum: Bob
Regional Chairs: Jim Hamilton
Rural Forum: Carol Banner
Sergeant at Arms: Larry Fargher
Standard Forms Advisory: Judith
Strategic Planning and Finance: Colleen Badagliacco
Taxation: J. Michael Roberts
2004 Committee Liaison Awards
Dick Gaylord, Association Leadership
Pat Fredericks, Industry Information & Membership Services
Jeanette Henderson, Industry Information & Membership Services
Bill Sloan, Legal Issues & Information
Rick Otterstrom, Political
Don Faught, Public Policy
Leslie Munger, Public Policy