CALIFORNIA ASSOCIATION OF REALTORS®
BOARD OF DIRECTORS
523rd SESSION
OCTOBER 17 - 18, 2008

The following is a summary of the significant action items approved by the CALIFORNIA ASSOCIATION OF REALTORS® Board of Directors at its October 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.

Award Selection
1. To approve the selection of Leslie Munger, California Desert, as the recipient of the 2008 California Distinguished REALTOR® Award, the highest recognition that C.A.R. can bestow on a member.

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 $3,100.  The C.A.R. Education Foundation raised $1,747 from the booth in the California REALTOR® EXPO Exhibit Hall.  An additional $8,250 in contributions for the C.A.R. Education Foundation has been received from participating local Associations.  The C.A.R. Education Foundation also established the Linda Lee Elite Scholarship Award with a $10,000 contribution from REALTOR® Linda Lee.

California REALTOR® EXPO Advisory
1. It was reported for information only that the CALIFORNIA REALTOR® EXPO 2008 was a tremendous success.  Attendance for Tech Tuesday was 1,000.  The Exhibit Hall included 270 exhibit booths, and there were 13 generous sponsoring companies.  Overall attendance was 8,500.

CREPAC Trustees
1. That the following Nominees for CREPAC Trustee and Alternate be elected.

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

2. It was reported for information only that CREPAC contributed $54,000 to bi-partisan candidates for the Assembly and Senate.

Executive Committee
1. That the Arcadia Association of REALTORS® be reassigned, per their request, from C.A.R. Region 16 to C.A.R. Region 13, beginning with the 2009 elective year.

Federal Issues
1. That C.A.R. “SUPPORT” the reforming of the rules for owner occupancy ratios of Common Interest Developments (CID) under the current FHA, GSE, CalVet, and VA programs.

2. That C.A.R. adopt the NAR transportation principles:

1. Federal spending for transportation infrastructure should be sufficient to maintain the current physical condition and level of performance of highways and transit systems and to make improvements to reduce congestion and to foster economic development.  To finance increased transportation spending, C.A.R. and NAR support both a modest increase in the federal transportation user charge tax rate and indexing the tax rate to account for inflation.  In addition, the federal government should explore a variety of means to ensure a reliable stream of revenue for transportation funding so that revenues grow in step with increasing travel demand.
2. High occupancy toll lanes should be permitted on roads financed wit federal assistance.  All tolls collected on such lanes should be dedicated to transportation purposes in the same community in which they are collected.
3. Taxes levied on transportation users should be deposited in a trust account for spending exclusively on transportation purposes.
4. Interest on balances in the Highway Trust Fund should accrue to the Fund and be spent exclusively for transportation purposes.
5. States should have a large measure of flexibility in determining how Highway Trust Fund monies are spent within their borders.
6. Highway Trust Fund revenues should continue to be used for projects designed to mitigate air pollution by reducing vehicle travel.
7. The federal share of funding for new transit capital projects should remain on a par with the federal share of funding for highway projects.
8. Transportation planning and implementation should be fully integrated into a comprehensive community planning effort, coordinated with state and metropolitan planning processes, using substantial citizen involvement and civic leadership to achieve the consensus vision of the community.
9. The federal transportation funding bill should provide a predictable level of funding that avoids large changes from one year to the next.
10. All federal taxes levied on any fuel or alternative energy source used for surface transportation should be applied equally and deposited in the Highway Trust Fund.
11. The time required for environmental review of transportation projects should be significantly reduced without compromising environmental protections.
12. Federal surface transportation assistance programs for states should be structured so that:
     - State and local transportation planning is not biased in favor or one mode or another because of differences in federal program requirements.
     - Proportionally more funds are available in parts of a state with greater transportation needs.
     - Emphasis is placed on providing seamless connections between transportation modes.
     - Priority in spending should be given to maintaining the integrity and performance of existing investments in national transportation infrastructure.
13. Transportation improvement planning should consider the needs of all transportation users along a transportation corridor and provisions should be made to accommodate a variety of users in every transportation project, where possible.

3. It was reported for information only that the Federal Issues Committee will create a healthcare working group that would be charged with:
- Developing policy guidelines on healthcare issues that can be used to evaluate legislation as it is introduced.
- Analyzing legislation as it is introduced and reporting their recommendations to the committee.

IMPAC Trustees
1. That the following Nominees for IMPAC Trustee and Alternate be elected.

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

2. It was reported for information only that IMPAC authorized the following contributions:
--$60,000 to No on Measure V, Citizens for a Safe & Prosperous Oxnard (Growth Control), a zoning measure that would restrict development within five miles of certain traffic intersections
--$30,000 to Support the Sonoma Marin Area Rail Transit (SMART) 1/4 cent sales tax measure to fund the development of passenger rail service
--$25,000 to No on the Open Space Vote Measure, Citizens Against Costly Initiatives in Redwood City, which would require a 2/3 vote of residents to approve certain developments
--$35,000 to San Marcos Association of Residents and Taxpayers (SMART) to defeat the San Marcos Growth Management and Neighborhood Protection Measure, which would require a citywide vote to approve certain General Plan changes
--$10,000 to No on Measure P, a proposed transfer tax measure in the City of Alameda
--$75,000 to No on Residents Initiative to Fight Traffic (RIFT)/No on Measure T, a proposed initiative to limit commercial development in the City of Santa Monica

Legal Action Fund
1. It was reported for information only that, since the June meeting, the trustees reviewed 9 cases and approved the following 4 cases:

Witt Home Ranch v. Sonoma County.
This case involves whether a subdivision that was created in 1915 that was government approved and complied with then existing law, can be used to subdivide property in 2005 even through the 1915 subdivivsion does not comply with current subdivision requirements.  While this is an 80 year old subdivision, the concern is that the state appellate case may call into question the grandfather clause in the current act.  The plaintiff states it could impact 70,000 lots in Sonoma County alone.  The Trustees approved an amicus brief supporting the petitioner to get a hearing before the California Supreme Court.

Muhoberac v. Boyle.
This involved a creative attempt to avoid arbitration under the RPA.   After entering into a purchase agreement and initialing the RPA, the buyer discovered flooding problems.  After a failed mediation, the plaintiff buyer filed a lawsuit and the seller tried to compel arbitration.  The buyer claimed the “misinformation” about the flooding translated into a fraudulent inducement to initial the arbitration clause.  The court denied the motion to compel arbitration and the seller is appealing.  The Trustees approved a brief supporting the enforceability of the arbitration clause. 

County of Humboldt v. McKee et al.
This issue relates to the renewal of a Williamson Act parcel and whether new changes to the County requirements enacted after the Williamson Act contract was signed automatically are incorporated into that contract which automatically renewed per its terms.   The trustees supported an amicus letter on behalf of the property owner who is seeking review before the California Supreme Court. 

Steiner v. Thexton
Buyer entered into a contract for 12 acres and proceeded to investigate whether the property could be subdivided and incurred many costs.  The contract allowed the buyer to cancel during this period.  The seller terminated the contract and the appellate court ruled that due to the buyer’s unilateral right to cancel, the contract was a disguised option that was not supported by consideration.  The Trustees approved an amicus letter supporting the petition to obtain a hearing before the California Supreme Court which was granted.  The Trustees also approved a brief on issues relating to the potential effects on the C.A.R. RPA. 

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.  The Court of Appeal ruled in favor of the buyers broker which enforced commission rights under C.A.R.’s buyer broker agreement.

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.  Since the last meeting, C.A.R. sought publication of the favorable decision and the Court of Appeal granted C.A.R.’s request.

Legislative
1. That C.A.R. adopt the following positions on November 2008 ballot propositions:

Proposition 1A: Safe, Reliable High-Speed Passenger Train Bond Act – NOT REAL ESTATE RELATED [Note: Proposition 1A replaces Proposition 1 on which C.A.R. took a “NOT REAL ESTATE RELATED” position in September 2005.]

Proposition 2: California Prevention of Farm Animal Cruelty Act – “NOT REAL ESTATE RELATED” [adopted at the June 2007 meetings].

Proposition 3: Children’s Hospital Bond Act -   “NOT REAL ESTATE RELATED”

Proposition 4: Waiting Period and Parental Notification Before Termination of Minor’s Pregnancy – “NOT REAL ESTATE RELATED”

Proposition 5: Nonviolent Offenders; Sentencing, Parole and Rehabilitation – “NOT REAL ESTATE RELATED”

Proposition 6: Criminal Penalties and Laws; Public Safety Funding – “NOT REAL ESTATE RELATED”

Proposition 7: “Renewable Energy. Statute.” – “NOT REAL ESTATE RELATED”

Proposition 8: Limit on Marriage – “NOT REAL ESTATE RELATED”

Proposition 9:  Criminal Justice System; Victims Rights; Parole – “NOT REAL ESTATE RELATED”

Proposition 10: Bonds. Alternative Fuel Vehicles and Renewable Energy. Statute.” – “NOT REAL ESTATE RELATED”

Proposition 11: Legislative Redistricting – “NOT REAL ESTATE RELATED”

Proposition 12: Veterans’ Bond Act of 2008 – “FOR”

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

Alameda AOR
Raye Thieman-Pereira

Arcadia AOR
Andrew Demopulos

Bay East AOR
Al Boeder
Willie M. Campbell
Herb Coffman
Louise Dixon
Richard Farrer
Hillary Garcia
Joby Gosney
Beth Matthews
John O'Donnell
Dorothy Sacks
Howard Scruggs
James Seaver
Lorraine Texeira
Mary Tieman

Berkeley AOR
Edna Olmstead

Conejo Valley AOR
Marguerite Savage

Contra Costa AOR
Shirley Barnum
Louisa Camezon
Urcil Commons
Joan Pedron
W. Richards
Majed Sartipi
Gene Worthington
Dennis Young

Downey AOR
Lupe Rocha

El Dorado County AOR
Barbara Cook
Charles Pool
Marshall Stone
Russell Toliver
Betty Westerhout

Fresno AOR
Agnes Hagopian
Bart Hagopian
Albert Hovnanian
Joe Jones

Greater Antelope Valley AOR
Douglas Anderson
Lou Bozigian
Marvin Himlin
Carlene Lampela

Inland Valleys AOR
Steve Katko

Laguna BOR
June Place

Madera AOR
Donald Floyd

Montebello District BOR
William Nighswonger

Newport Beach AOR
Ginny Anderson
Robert Berg
David Bourke
C.F. Colesworthy
Ruth Flowers
Don Glantz
Shirley Harris
Inge Linhardt
Marjorie Nielsen
Ann Peters
Tom Rousselot
Sally Shipley
Lynne Valentine
Coby Ward
Beverly White

North Bay AOR
Edward Horsman
Robert Koenitzer

Northern Solano County AOR
Wilda Brakenridge
Jean Kunkel
Betty Rawlinson
Madonna Spurlock

Orange County AOR
Don Beaver
Shirley Bruce
Shirley Glick
Jan Herkelrath
Geofrey Layng
Madi Layng
Barbara Reily
David Romero

Pacific West AOR
Patricia Blinn

Pasadena-Foothills AOR
Norma Ellis
Betty Scannell

Plumas AOR®
Faith Swanson

Rancho Southeast AOR
Evelyn Arnold
Vester Holmes

Rim O’ The World AOR
William Erambert
Sacramento AOR
May Chan
Casimir David
Charles Geise
Ginger Lambert
Marie Nelson
Virginia Raskin

San Diego AOR
Florence Conrad
William Gore
Yoko Sakaguchi
Jeanne Taylor
George Thomas

San Mateo County AOR
Janet Castellino
Charles Crotty
George Davenport
Lois De Felice
Louise Guzzo
Connie Huebner
Viola Martinez
Helen Moore
Shirley O'Connor
Pierrette O'Connor
Kaye O'Halloran
Hermann Schmid
Lamont Shadowens
Susan Woo

Santa Barbara AOR
Raymond Eller

Santa Clara County AOR
Richard Abbott
Henry Andrade
Ross Applegate
John Barbour
Buryl Barton
Edward Bray
Al Cook
Frank Crane
Virginia Cullen
Edith Davenport
Diane DeFaria
James DiGiorgio
William Eatmon
Larry Fordyce
Manuel Franco
W. Robert Gadsby
Antoinette Gillmeister
William Ted Glenn
Gregory Gray
Joseph Guerra
Mary Hazelrigg
Sylvester Heinberg
Armand Herrera
Oretha Houghton
V. June Kolb-Hayes
Eugene Kuhns
Kenneth Lehr
Raymond Levine
Foster Lopes
Therezita Masuet
Ronald Matusich
Jacqueline Moore
John O'Boy
James Phillips
Warren Racine
G Robertson
Frans Roosen
Sal Ruiz
Tony Sanchez
Louis Sereda
Jerome Silveira
Mary Jane Souza
William Starritt
Virginia Tamblyn
Rose Togami
Mary Jo Van Valey
Robert Weyhe

Shasta AOR
Edna Brown
Richard Weyenberg

Silicon Valley AOR
Mary Brown
John Lazar
Southland Regional AOR
Barbara Kantro

Tehama County AOR
Velma Galbraith

Ventura County Coastal AOR
Joan Bedal
David Bedal
Mike Losey

Private Transfer Tax Task Force
1. It was reported for information only that C.A.R. will take a “wait and see” attitude with regard to sponsoring legislation to prevent or regulate the imposition of PTTs.  Specifically, the sponsorship of any such legislation should occur if the makeup of the legislature changes significantly enough that it is politically feasible that the legislation will win approval.

Professional Standards
1. That CAR adopt a procedure, to be drafted by staff, to allow local associations to appoint an Ethics Advocate Subcommittee, whose members would assist parties to a disciplinary complaint through the process, by helping with paperwork and representing the party at hearing, at the option of the party, subject to final approval from NAR.

Property Tax Basis Portability Task Force
1. To accept the report of the Property Tax Basis Portability Task Force, which includes the following recommendations.

1. Develop materials to educate REALTORS® and homeowners about the property tax benefit available due to Propositions 60 and 90.  These materials could include but would not be limited to:
a. A legal Q&A on the C.A.R. website.
b. A brochure that can be provided to REALTORS®, Seniors Real Estate Specialist (SRES) instructors teaching in California, and homeowners.

2. Support a county establishing a pilot project that would evaluate on a temporary basis expanded property tax basis portability and its fiscal impact on government.

3. Staff prepare an Issue Briefing Paper for consideration by the Taxation Committee discussing whether C.A.R. should support legislation informing homeowners via their property tax bill as to the tax benefit available under Propositions 60 and 90.

Public Policy Reorganization Task Force
1. It was reported for information only that the Public Policy Reorganization Task Force reviewed a preliminary report and recommendations with the Directors and various Committees, and that a final report will be delivered in January 2009.

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 the C.A.R. President be instructed to elect these individuals on behalf of C.A.R.:
Tony Agurs, El Cajon, The Agurs Group, Inc.
Robert Bailey, Aptos, Bailey Properties
Linda Lang, Laguna Hills, Orange County Association of REALTORS®
Alan Arora, Los Angeles, Real Estate Business Services

Note: The following REBS Directors have continuing terms through 2009:
Liz Fitzgerald, Dana Point, Christie's Great Estates
Maxine Jennings, Dublin, Real Estate Services
Richard Mendenhall, Columbia, Missouri, Re/Max Boone Realty
Joel Singer, Los Angeles, California Association of REALTORS®
John Wong, San Francisco, Prudential California Realty

Real Estate Finance
1. That C.A.R., in conjunction with NAR, “SUPPORT” reform of seller-funded downpayment assistance programs that provide benefits to consumers, including housing counseling, and insures the safety and soundness of FHA.
2. That C.A.R. “SUPPORT” removing the GSE’s cap on the number of loans for non-owner occupied borrowers of 1-4 units.
3. That C.A.R. “SUPPORT” the reforming of the rules for owner occupancy ratios of Common Interest Developments (CID) under the current FHA, GSE, CalVet, and VA programs.

Standard Forms Advisory
1. It was reported for information only that the Standard Forms Advisory Committee (SFAC) received reports from approximately 12 Regional Representatives.  The SFAC approved slight modification to the Buyer’s Inspection Election (BIE) form.  These changes include grouping various types of inspections by commonality.  Additionally, the SFAC reviewed the Declaration Regarding Real Estate License and Tax Reporting (DLT) form and agreed to add a field for listing the taxpayer ID number.  Additionally, minor changes were made to the Septic Inspection, Well Inspection, Property Monument and Allocation of Cost Addendum (SWPI) form.  All of these forms are scheduled for release in November 2008.  The SFAC had considerable discussion regarding the Residential Listing Agreement (RLA) form.  The Committee reached consensus on the content of a proposed revision of the protection clause and will review a draft on an upcoming conference call.  The SFAC reviewed the forms proposed by the Commercial Forms Study Group and approved these forms for release in April 2009.  The SFAC was apprised of the printed form configuration change from triplicate copies to duplicate copies.  This configuration change will occur as forms come up for order by REBS.  The RPA Study Group held their first meeting this week.  This study group will submit their final report to the Standard Forms Advisory Committee by November 2010.  Finally, the SFAC reviewed 32 of the 70 comments received.  The balance of the comments will be reviewed on an upcoming conference call.   

Strategic Planning and Finance
1. To approve a 2009-2011 strategic plan and 2009 budget with the following criteria:
a. C.A.R. Revenue $27,537,400
   C.A.R. Cost $27,120,900
   Net Surplus $416,500
b. Political Activities Fund Revenue $1,498,000
c.  Issues Action Fund Revenue $1,498,000
   Issues Action Fund Transfer to IMPAC $455,100
d. 117 budgeted C.A.R. staff positions
e. Membership dues, including $115 for operating programs, $10 for the Political Activities Fund and $10 for the Issues Action Fund, are set at a total of $135  per member (predicated on 2009 year end membership of 158,000)
f. New member fee be set at $30 per new member
g. A 2009 Capital Budget (funded with Association reserves) totaling $311,800

2. 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.
3. That $182,000 be approved for an additional two percent pension contribution to the C.A.R. and REBS employee pension plan for 2008, augmenting the previously approved budget of 10 percent.
4. That the Statement of Income and Expenses by program for the eight months ending August 31, 2008 be approved.

Total C.A.R.
Revenue of $23,824,400
Expenses of $ 16,474,700
An excess of income over expenses of $7,349,700

Political Activities Fund
An excess of income over expenses of $2,074,400

Issues Action Fund
An excess of income over expenses of $1,184,000

The C.A.R. Balance Sheet as of August 31, 2008
Total assets of $63,163,300 (of which $44,580,000 are current assets)
Total liabilities of $4,611,700 (of which $4,019,000 are current liabilities)
C.A.R. Fund Balance of $58,551,600

5. 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 $28,159,800
Expenses of $26,590,000
An excess of income over expenses of $1,569,800

Political Activities Fund
An excess of income over expenses of $1,830,900

Issues Action Fund
An excess of income over expenses of $824,600. This amount will be allocated to IMPAC as approved by the Directors.

Other
The following special awards and resolutions were presented at the Board of Directors Session:

2008 Committee Liaison Awards
Betty Taisch, Association Leadership
Jean Powers, Industry Information & Membership Services
Carolyn D'Agosta, Legal Issues & Information
Malcolm Bennett, Public Policy
Steve White, Industry Information & Membership Services
Jeannette Way, Public Policy
John Scarborough, Political

2008 Outstanding Committee Chairs
Association Executives, Nelson Janes
Association Presidents, Leadership Forum, REALTOR® Steve Rosco
Award Selection, REALTOR® Larry Fargher
C.A.R. Past Presidents, REALTOR® Ann Pettijohn
C.A.R. Scholarship Foundation/C.A.R. Education Foundation, REALTOR® Mary Jane Cambria
California REALTOR® Expo Advisory, REALTOR® James Ezell
Common Interest Development,  REALTOR® Susan Tilling
Communications Advisory, REALTOR® Jeannie Anderson
Credentials, REALTOR® Marie Thomas
CREPAC Trustees, REALTOR® Marian Norris
Defense Strategy Advisory, REALTOR® Annette Graw
Educational Services Advisory,  REALTOR® Lois Kadosh
Equal Opportunity-Cultural Diversity, REALTOR® Raymond Rodriguez
Executive, REALTOR® William E. Brown
Federal Issues, REALTOR® J. Michael Roberts
Housing Affordability Fund, REALTOR® Pat "Ziggy" Zicarelli
Housing Opportunity, REALTOR® LeFrancis Arnold
IMPAC Trustees, REALTOR® Heather Brown
International Real Estate Forum, REALTOR® Anne Thai
Land Use & Environmental, REALTOR® Liz Fitzgerald
Legal Action Fund Trustees, REALTOR® Kathy Mehringer
Legal Affairs Forum, REALTOR® Clay Sigg
Legislative, REALTOR® William Jansen
Local Governmental Relations, REALTOR® Leslie McBride
Manufactured Housing, REALTOR® David Hale
Membership, REALTOR® Cheryl McFall
MLS/Computer & Business Technology, REALTOR® John Hickey
N.A.R. Directors Forum, REALTOR® William E. Brown
Nominating, REALTOR® Jim Hamilton
Political Activities Fund, REALTOR® Jean Tietgen
Political Affairs, REALTOR® Rick Violett
Professional Standards, REALTOR® Alicia Nuzzo
Property Management, REALTOR® Kevin Brown
Real Estate Finance, REALTOR® Patricia Bouie Hinds
REALTOR® Risk Management and Consumer Protection, REALTOR® Wes Seastrom
REALTORS® Commercial Alliance Commercial Investment, REALTOR® George Monte
Regional Chairs, REALTOR® James Liptak
Rural Forum, REALTOR® Larry Matteson
Sergeant-at-Arms, REALTOR® Larry Fargher
Standard Forms Advisory, REALTOR® Anita Thede
Strategic Planning & Finance, REALTOR® Beth Peerce
Taxation, REALTOR® Skip Zeleny

2008 President's Award
Bob Hart, Chair, Green Task Force