CALIFORNIA ASSOCIATION OF REALTORS®
BOARD OF DIRECTORS
526th SESSION
OCTOBER 9 - 10, 2009

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

Award Selection
1. To approve the selection of Jeannette Way, Northern Solano County, as the recipient of the 2009 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 $13,000.  The C.A.R. Education Foundation awarded grants totaling $4,334.

California REALTOR® EXPO Advisory
1. It was reported for information only that the CALIFORNIA REALTOR® EXPO 2009 was a tremendous success.  Attendance for Tech Tuesday was 900.  The Exhibit Hall included 150 exhibit booths, and there were 13 generous sponsoring companies.  Overall attendance was 6,113.

CALMLS/calREDD™
1. That the following nominees for CALMLS Directors be elected.

Category 1 (from the ten largest brokers)
John Schulte (Tarbell) (1 year term)
Rick Hoffman (Coldwell Banker) (1 year term)
Mark Johnson (Prudential) (1 year term)

Category 2 (broker owner with less than 100 agents)
Tom Carnahan (2 year term) Southland Regional AOR
Chris Kutzkey (3 year term) Siskiyou AOR

Category 3 (broker owner, any size firm)
Mike Collins (2 year term) South Bay AOR
Dorothy Jackson (3 year term) Bay East AOR

Category 4 (agent or broker associate)
Beverly James  (2 year term) San Luis Obispo AOR
Jeanne Radsick (3 year term) Bakersfield AOR

Category 5 (broker or agent, any size firm)
Mike Teer (2 year term) Inland Valley AOR
Geoff McIntosh (3 year term) Pacific West AOR

Category 6 (open category)
Ken Neufeld (2 year term) Fresno AOR
Ted Loring (3 year term) Humboldt AOR

CREPAC Trustees
1. That the CREPAC Bylaws Amendment be approved as noticed.

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

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
Jmaes Irving, Region 31
Cas Pinkowski, Region 32

Housing Affordability Fund
1. It was reported for information only that the Housing Affordability Fund will extend the date of the C.A.R. Housing Affordability Fund Mortgage Protection Program through December 31, 2010 or until allocated funds have been expended.

IMPAC Trustees
1. That the IMPAC Bylaws Amendment be approved as noticed.

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

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

3. It was reported for information only that IMPAC authorized the following contributions:
--$15,000 to the No on Measure B campaign to oppose a local ballot box planning measure in the City of Santa Barbara.
--$7,500 to the C.A.R. Association Executive (AE) Institute for the purpose of funding a portion of a three-day professional development program devoted to Governmental Affairs topics to include association management, strategic planning, IMPAC and BORPAC processes and utilization.
--Up to $160,000 to pay for legal experts for the analysis of local government ordinance proposals on behalf of local Associations subject to the condition that each local association pay at least 25% of the cost of their request using Local IMPAC funds.
--$32,860 to fund a C.A.R. outreach program to address the impacts of state and local budget shortfalls on real estate and the C.A.R. resources available to local REALTORS® address these issues.

Legal Action Fund
1. It was reported for information only that since the June meetings the Legal Action Fund Trustees approved an amicus on one case:

Harrison v. Sierra Dawn HOA.  Isabelle Harrison, owned 22 mobile homes in Sierra Dawn Estates, large common-interest development for mobile homes for persons 55 and over. Ms. Harrison lived in one of the mobile homes, and rented the remaining homes to tenants. The Sierra Dawn Homeowners Association voted to change the covenants, conditions and restrictions (CC&Rs) to prohibit any one owner from leasing more than 3 homes, as well as imposing other restrictions, including that no more than 20% of the total amount homes could be rented at any one time.  The amended CC&Rs exempted existing tenancies. Ms. Harrison filed a lawsuit against the HOA on several grounds including restraints on alienation.  The HOA prevailed at trial and Ms. Harrison’s representatives appealed.  The trustees authorized an amicus brief supporting the plaintiff property owner on the issue of HOA amendments that restrict the rights of an existing homeowner to rent its properties.

Since the June meetings, there was a development in one case as follows:

Hovanesian v. Couveau.  A buyer contracted to buy a residential property owned by the Couveaus using the CAR RPA for $750,000.  The appraisal contingency had been checked.  Five days later, an offer came in for $859,000.  The first buyer received an appraisal at $720,000 and wrote a letter stating that they would only go forward with the transaction at the appraised value and gave a deadline for a reply.  The sellers said they would not sell at the lowered price. The sellers then countered to buyer #2 that they would accept the $859,000 subject to cancellation of the previous escrow.  This offer was accepted.  Buyer number one said they received a new appraisal of $750,000 and demanded that the transaction proceed at that price. Buyer number 2 concluded the sale.

The court indicated that when a party exercises their right to cancel the contract, the party no longer has the right to waive the right and proceed with the agreement.  The court further went on to acknowledge C.A.R.’s Request for Repair form and indicated when parties proceed to draft their own documents, it may have unintended consequences and that had the form been used, the options and communication would have been more clear.  The decision is unpublished, however, and cannot be cited for authority.

There are four cases in which C.A.R. participated as amicus that are either awaiting decision or have briefs due but there are no specific outcomes on these cases to report.

Legislative
1. That C.A.R. “SPONSOR” legislation to subject Appraisal Management Companies (AMCs) to increased regulatory control by the Office of Real Estate Appraisers, to be reviewed by the Transaction and Regulatory Committee at the February 2010 meetings.
2. That C.A.R. “SPONSOR” legislation to require lenders to accept a "portable" appraisal at the request of a borrower.
3. That C.A.R. “SUPPORT” legislation setting up a program to use electronic scanning technology to scan title records for unconstitutional transfer restrictions and redact the illegal restrictions in a way that does not add prohibitive costs to the recording process.
4. That C.A.R. “SPONSOR” legislation to apply the so-called "poison pill" of Business and Professions Code Section 10226.5 to loans from DRE to other special fund accounts.
5. That C.A.R. “SPONSOR” legislation to redraft the existing "advance fee" statute so that it more clearly captures the concept of receiving payment before the services are performed.

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

Alameda AOR           
Don Patterson
 
Amador County AOR           
Edwin Pease
 
Arcadia AOR 
Peggy Allison 
 
Bakersfield AOR      
James Dandy
Melvin Davis
David Segesman
 
Bay East AOR           
Eugene Foppoli
Ray Herman
 
Burbank AOR           
Martha Hughes
Herman Rassp
California Desert AOR        
Beth Grossman
Helen Martin
Bernice Westberg
 
Central Valley AOR  
Jean Lee Boehm
 
Coastal Mendocino AOR    
Benny Booth
Mavis Mathews
 
Contra Costa AOR   
Betty Karris
Leo Saunders
 
East San Diego County AOR
Laura Houle
 
El Dorado County AOR       
Carol Manning
 
Fresno AOR  
Queenie Haron
 
Imperial County AOR           
Nancy Steen
 
Inland Valleys AOR  
Gene Carlstrom
Velia Delgado
Mary Louise Zuppardo
 
Lompoc Valley AOR 
Marno Goetsch
Sally Goetsch
 
Madera AOR 
Della Densmore
Billy Miracle
 
Marin AOR    
Lou Broderick
David Egan
Brigid O'Toole
Berit Parker
 
Merced County AOR           
Peggy Carter
Gail Mc Cullough
David Shewey
Ellie Wooten
 
Montebello District BOR    
Edna Montes

Monterey County AOR        
Charles Aucutt
Theodore Blocker
Theresia Blue
Alan Cordan
Richard Fowler
Janet Garman
Marlene Provence
Donna Rico
Salvatore Riso
 
Newport AOR
Jo Ann Kenton

North San Diego County AOR
James Connolly
Irene Grahn
Don Stafford
Dick Tibbetts
Northern Solano County AOR
Frank Dembski
 
Oakland AOR
Mo Khatibi
Virgie L. Smith
 
Orange County AOR           
Anna Alderete
James Larkin
Terry Ontiveros
Norine Pesceone
 
Pacific West AOR     
Cynthia Dean
Diane Horton
Jim Scott
 
Palm Springs AOR
Howard Krieger

Palos Verdes Peninsula AOR
Lyn Dakin
 
Paradise AOR           
Andy Mital
 
Pasadena-Foothills AOR    
Alla Griffin

Paso Robles AOR    
Ken Johnson
 
Placer County AOR 
Joanne Engle
Joyce Hinkey
Boyce Thelen
 
Rancho Southeast AOR      
Iris Pygatt
Franklin Lee
 
Rim O The World AOR        
Helen Hausmann
 
Sacramento AOR     
John Bramow
Mary Campoy
Robert Del Ponte
Georgianna Driscoll
Joan Iljana
Jerry Kirrene
Ralph McGrew
Patricia Meredith
Allyn Sandos
Dorothy Smith
Roosevelt Sullen
 
San Benito County AOR     
Agustin Garcia
Diane Mattson
 
San Diego AOR        
Edward Cramer
Jane Morgan
Lee Rens
 
San Luis Obispo AOR         
Lynn Cooper

San Mateo County AOR      
Judith Barton
Helen Cross
Betty Decter
Jack Ditty
Jean Dominguez
Elizabeth Hulsey
Mary Hunt
Ray Lombardi
Jean Mac Donald
Ray Marcotte
James O'Connor
Phyllis Outzen
Mary Roach
Edie Switzer
Joseph Zucca

Santa Cruz AOR       
Helen G. Ackerman
Gail Degnan
Gerald Eidam
Charles Rogers
Frances G. Slebir
Lorraine D. Wallace
 
Santa Maria AOR     
Mary Brown
 
Shasta AOR  
Diane Abair
Larry Klempner
June Macey
Mickey Rehberg
          
South Bay AOR        
Pauline Powers
Norm Quient

Southland Regional AOR   
Kathleen Boudreau
Franklyn Burns
Norma Garutso
Selwyn Ginsburg
Edward Hulac
Julia Jones
Eileen Kenyon
Marilyn Mandel
Helen Poulos
Lester Sandusky
Estelle Schneider
Clarence Senger
Charles Shoda

Tuolumne County AOR       
Lawrence Miller
Devearl Stanphill
 
Ventura County Coastal AOR
Rudy Monte
Jan Osborn
 

MLS/Computer and Business Technology
1. To make changes to the C.A.R. Model MLS Rules which reflect the following policy decisions, such rules to be effective upon NAR approval:
a. That, as a general rule, all reporting time frames not include an exclusion for weekends and holidays;
b. That all time frames be stated in terms of calendar days instead of hours (i.e. 2 days rather than 48 hours) with staff formulating a definition for calendar days;
c. That the time frame for submission of listings be 2 days [existing rule provides for 48 hours with exceptions for weekends and holidays];
d. That the time frame for a change of listing information, correcting inaccurate information, listing status changes, reporting of sales, cancellation of pending sale be 2 days [existing rules provide for 24 hours with exceptions for weekends and holidays or 24 hours or “immediately” for cancellation of pending sale];
e. That the time frame for documentation of a listing agreement upon demand or of evidence of extension of listing be 1 day [existing rules provides for 24 hours];
f. That the time frame after which a cooperating broker can contact the seller directly after being unable to reach the listing broker be 1 day [existing rule provides for 24 hours];
g. That the time frame for reporting of unaccountable lockbox key be immediately upon discovery [existing rule states “immediately”];
h. That the time frame for reporting DRE discipline be 1 day [existing rule states 24 hours];
i. That the time frame for attending orientation remain at 30 days.

Political Affairs
1. That C.A.R., beginning with the 2011 dues billing cycle, implement a new REALTOR® Action Fund collection mechanism, above the line with “opt-over” provision.  An issue briefing paper will be prepared to include specific recommendations for the technical implementation, legal requirements and dollar amount, which will be decided by the Board of Directors at the February, 2010 meeting.

(Note:  The “opt over” provision allows the member to determine whether the investment amount shall be directed towards the REALTOR® Action Fund or “moved-over” to an alternative account.  In any event, the amount would be paid by the member.)

Professional Standards
1. That C.A.R. adopt a procedure, to be drafted by staff for the California Code of Ethics and Arbitration Manual and Interboard Arbitration Rules, to comply with California Code of Civil Procedure Section 1281.85, which specifies that the right to arbitrator disclosures of specific information is non-negotiable and non-waivable, even though that information is confidential under NAR policy.

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.:
Matthew Borland, San Francisco, Zephyr Realty
David Cabot, San Diego, Prudential Realty
Jeannette Way, Vacaville, Gateway Realty

Note: The following REBS Directors have continuing terms through 2010:
Robert Bailey, Aptos, Bailey Properties
Annette Graw, Manhattan Beach, South Bay Brokers
Linda Lang, Laguna Hills, Orange County Association of REALTORS®
Rick Snyder, San Diego, R.A. Snyder Properties
Alan Arora, Los Angeles, Real Estate Business Services
Joel Singer, Los Angeles, California Association of REALTORS®

Real Estate Finance
1. That C.A.R., in conjunction with NAR, “SUPPORT” the elimination of the FHA 90-day anti-flipping rule, and that C.A.R. write and publish a letter to the FHA Commissioner in opposition to the FHA 90-day anti-flipping rule.
2. That C.A.R., in conjunction with NAR, seek to eliminate the mandatory VA pest certification and mandatory seller fees.
3. It was reported for information only that C.A.R. will prepare a Q&A and advisory piece on FHA’s new Common Interest Development financing rules.

REALTORS® Commercial Alliance Commercial Investment
1. The Board of Directors defeated a motion that the REALTORS® Commercial Alliance Commercial Investment Committee become the REALTORS® Commercial Alliance Forum in 2010 and thereafter, and that it be given meeting facilities equally convenient to all other Association meetings and receive an appropriate level of staff support and funding to carry out its role as a Forum.  However, it was reported for information only that Commercial Investment practitioners and others interested in this specialty area would have the ongoing opportunity to hold a forum at future C.A.R. Business Meetings.

Standard Forms Advisory Committee
1. It was reported for information only that the Standard Forms Advisory Committee (SFAC) received reports from 7 Regional Representatives.  Generally comments commended the Standard Forms RPA Study Group for their work so far on proposed revisions.  The Commercial Forms Study group will propose revisions to some of the C.A.R. commercial forms for the SFAC’s consideration in February 2010.  Additionally, the SFAC will expect to receive a status update of the newly appointed Property Management Study Group, which is expected to host their first conference call in the coming months.  The SFAC presented the latest draft of the RPA at the Open Forum on Forms.  The RPA Study Group has some additional changes to the draft that was presented.  The study group will continue to review comments from both the membership and SFAC prior to proposing a suggested final draft which will be made available prior to the February 2010 Business Meetings.  It is anticipated that the final version will be released in April 2010.  Finally, the SFAC reviewed all of the approximately 80 comments received.

Strategic Planning & Finance
1. That the Statement of Operating Income and Expenses by program for the eight months ending August 31, 2009 be approved.

Total C.A.R.
Revenue of $23,453,500
Expenses of $15,957,700
An excess of operating income over expenses of $7,495,800

Political Activities Fund
An excess of income over expenses of $2,074,000

Issues Action Fund
An excess of income over expenses of $1,155,600

The C.A.R. Balance Sheet as of August 31, 2009
Total assets of $64,823,100 (of which $47,728,500 are current assets)
Total liabilities of $3,559,500 (of which $2,966,400 are current liabilities)
C.A.R. Fund Balance of $61,263,600

2. 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 $26,761,300
Expenses of $25,665,700
An excess of operating income over expenses of $1,095,600

Political Activities Fund
An excess of income over expenses of $2,090,900

Issues Action Fund
An excess of income over expenses of $651,400. This amount will be allocated to IMPAC as approved by the Directors.

3. To approve a 2010-2012 Strategic plan and 2010 budget with the following criteria:
    A. C.A.R. Revenue of $26,038,400
        C.A.R. Cost $25,949,400
        Net Operating Surplus $89,000 
    B. Political Activities Fund Revenue $1,494,000 
    C. Issues Action Fund Revenue $1,494,000
         Issues Action Fund Transfer to IMPAC $593,800  
    D. 120.5 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 (predicate on 2010 year end membership of 162,000)
    F. New member fee be set at $30 per new member
    G. A 2010 Capital Budget (funded with Association reserves) totaling $461,800

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. That $188,000 be approved for an additional two percent pension contribution to the C.A.R. and REBS employee pension plan for 2009, augmenting the previously approved budget of 10 percent.
6. That up to $12,000 be allocated from the 2009 budget to conduct a survey of magazine readership.