CALIFORNIA ASSOCIATION OF REALTORS®
BOARD OF DIRECTORS
SEPTEMBER 23 -- 24, 2005
The following is a summary of the significant action items approved by the
CALIFORNIA ASSOCIATION OF REALTORS® Board of Directors at its September
2005 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. To approve the selection of Tom Carnahan, Southland Regional, as the
recipient of the 2005 California Distinguished REALTOR® Award, the highest
recognition that C.A.R. can bestow on a member.
Common Interest Development
1. That C.A.R. "SPONSOR" legislation requiring homeowner associations to:
a) disclose how much and when reserve accounts will be funded; and, b)
minimize reliance on special and emergency assessments to fund reserve
1. That the following Nominees for CREPAC Trustee and Alternate be elected:
NOMINEES FOR CREPAC TRUSTEE
(November 2005- November 2008)
Marian Norris, Region 7
Melanie Hildebrand, Region 25
Richard Kato, Region 20
Mike Teer, Region 14
Judy Zeigler, Region 28
NOMINEES FOR CREPAC ALTERNATE
(November 2005 - November 2006)
Anthony Agurs, Region 30
Candice Carpenter, Region 21
Paula Colombo, Region 3
Liz Anderson-Fitzgerald, Region 32
Mary Funk, Region 18
Dorothy Jackson, Region 6
Dennis Mason, Region 2
Paul Stewart, Assoc Exec, Region 19
Irma Vargas, Region 17
Housing Opportunity 1. That C.A.R. "CO-SPONSOR" a
bill next year limiting local governments' ability to investigate and
determine the economic feasibility of new housing developments where one or
more of the units would be built using the density bonus law.
2. That C.A.R. "CO-SPONSOR" a bill next year to require cities and counties
to adopt and publish clear and objective development standards (e.g.,
zoning code requirements) and to prohibit any change in those standards
after the building application is deemed complete.
3. That C.A.R. "CO-SPONSOR" a bill next year giving homebuilders and other
interested parties the ability to recover attorney fees when successful in
challenging local governments' compliance with the housing element law.
1. That the following Nominees for IMPAC Trustee and Alternate be elected:
NOMINEES FOR IMPAC TRUSTEE
(November 2005-November 2008)
Terry Wunderlich, Region 4
Sherry Tietjens, Region 12
Dennis Pantano, Region 25
Shirley Long, Region 32
NOMINEES FOR IMPAC ALTERNATE
(November 2005-November 2006)
Heather Benson, Region 29
Richard Otterstrom, Region 17
Cheryl Mc Fall, Region 7
Pat Fredericks, Region 28
Carol Facciponti, Region 16
Georgia Richardson, Region 6
Richard Tegley, Region 14
James Irving, Region 31
Diane Smith, AE, Region 15
2. It was reported for information only that the IMPAC Trustees have
contributed $12,500 to Southern California Association of Non-Profit
Housing in support of their 2005 legislative agenda.
Land Use and Environmental 1. That C.A.R appoint a
Task Force to develop policy in response to pending state and federal
legislation proposed in response to Kelo v. New London.
2. It was reported for information only that C.A.R. will encourage REBS to
work with course providers to develop courses suitable for real estate
licensees regarding environmentally friendly building practices.
Legal Action Fund 1. It was reported for information
only that the trustees approved funding for the Bakersfield AOR v. BLS on a
match basis with the Bakersfield AOR with four conditions on such
funding. The trustees also will support and forward the request to
N.A.R. for equal funding. This was in addition to some prior funding
for an outside appellate analysis.
It was further reported for information only that the following
developments had taken place in other significant cases being tracked by
the Legal Action Fund Trustees:
- Stoffe v. Medrano - The trustees authorized supporting a petition for
review before the California Supreme Court on the issue of whether a seller
countering an offer that contained a pest control addendum with a blanket
"as is" counter offer removes the pest control addendum. An
unpublished case held that such a counter offer did remove the pest control
addendum under certain circumstances.
- Vineyard Area Citizens for Responsible Growth v. City of Rancho Cordova -
The trustees approved signing on to the Builder's Association (BIA) amicus
brief in the case of Vineyard Area Citizens for Responsible Growth v. City
of Rancho Cordova on the issue of upholding a water supply analysis EIR
- Wasatch Property Management v. Degrate - The trustees authorized C.A.R.
filing a letter requesting modification of a decision which contained a
footnote that initially stated that the law prohibited "discrimination
based on income" instead of "discrimination based on source of
income." The Court issued a favorably modified decision.
- Hemphill v. SANDICOR. (Freeman finally concluded). This case
is the class action filed as a result of the Freeman v. San Diego
Association of REALTORS® case. The Freeman case was settled and there
was no class certified in that case. This separate class action
settlement was set for hearing but Barry found a member of one of the
Associations, Tony Easton, who objected to the settlement. The trial
court nevertheless approved the settlement. Easton appealed.
Easton withdrew his appeal and the case is now over.
- Freeman v. Lasky (Freeman III). This is the case in which Freeman
sued all the lawyers of the associations and SANDICOR, the AEs and
C.A.R. The federal district court dismissed the case on all grounds
including res judicata as to C.A.R. which means the matter had already
been decided by the prior court. Freeman appealed. The Ninth
Circuit Court of Appeal affirmed the dismissal of C.A.R. and the time for
filing to the U.S. Supreme Court has lapsed.
1. That C.A.R. take the following positions on November 2005 Ballot
-- Proposition 73: Waiting Period and Notification Before Termination of
Minor's Pregnancy -- "NOT REAL ESTATE RELATED"
-- Proposition 74: Public School Teachers, Waiting Period for Permanent
Status -- "NOT REAL ESTATE RELATED"
-- Proposition 75: Public Employee Union Dues, Restriction on Political
Contributions --"NOT REAL ESTATE RELATED"
-- Proposition 76: State Spending and School Funding Limits -- "NOT REAL
-- Proposition 77: Reapportionment -- "NOT REAL ESTATE RELATED"
-- Proposition 78: Discounts on Prescription Drugs -- "NOT REAL ESTATE
-- Proposition 79: Prescription Drug Discounts, State-Negotiated Rebates
"NOT REALESTATE RELATED"
-- Proposition 80: Electric Service Providers Regulation -- "NOT REAL
That C.A.R. take the following positions on June 2006 Ballot
-- California Reading and Literacy Improvement and Public Library
Construction and Renovation Bond Act of 2006 -- "NOT REAL ESTATE
That C.A.R. take the following positions on November 2006 Ballot
-- Safe, Reliable High-Speed Passenger Train Bond Act for the 21st Century
-- "NOT REAL ESTATE RELATED"
2. That C.A.R. present to DRE the following suggestions to clearly identify
Real Estate licensees (in response to the request by the Commissioner) and
offer to work with the DRE to establish a Licensee Identification rule
a. follows the same guidelines as the "do not fax" rules in defining "first
contact" materials -- including but not limited to fliers, post cards,
electronic mail and other promotional material; implementation by December
b. requires Broker & Sales Associate license numbers be included on all
Real Estate contracts; implementation by Spring 2006;
c. requires DRE license numbers be placed on web-sites; implementation by
d. requires DRE license numbers to be placed on business cards;
implementation by December 2006;
e. would NOT require DRE license numbers on any real estate signage or
published "periodical" advertising.
3. That C.A.R. urge DRE to:
a. prohibit "short-cut" continuing education courses;
b. require the passage of an examination in all continuing education
c. audit and increase the quality and content of continuing education
d. institute more effective proceduresto validate the identity of
applicants taking licensing and continuing education exams; and,
e. work with C.A.R. to improve the relevance of licensing and continuing
education test questions.
4. That C.A.R. "SPONSOR" legislation to eliminate the conditional license
for real estate salespersons.
5. That C.A.R. appoint a Task Force to address the minimum services issue.
Local Governmental Relations 1. It was reported for
information only that C.A.R. should:
a. Adopt as its goal to have every local Association in California with
some form of representation and/or working relationship with a GAD, by the
b. Actively devote and delineate staff time and energies specifically for
the GADless Association effort.
c. Create a "resource group" of GADs, AEs and members who would be
available on an "on-call" basis to advise and consult with local
Associations that are considering hiring their own GAD.
d. Implement an education effort to raise awareness of the importance of
having a GAD and the resources that are available to hire one.
e. Help promote the variety of GAD services available to local
Associations, which range from hiring a full-time GAD to contracting with
an existing GADon a temporary "per project" basis. Membership
1. That the following applicants be granted C.A.R. Honorary Member-for-Life
Bay East AOR
Alfred C. Roessler
Big Bear AOR
Esther Marie Hilliard
Contra Costa AOR
East San Diego County AOR
C. W. Banteir
Weldon W. Griffin
Inland Valleys AOR
Lora Lee Barrett
Mary Ann Young
Monterey County AOR
Bonnie Jean Foy
North Bay AOR
Orange County AOR
Albert Josef Baumgartner
Daniel J. Leonard
Pacific West AOR
Jeanne M. Barnes
Carole Faye Breithaupt
Louise Magdalene Worthy
Placer County AOR
Roger Ernest Bancroft
Rancho Southeast AOR
San Mateo County AOR
Santa Cruz AOR
Franklin J. Harris
Simi Valley-Moorpark AOR
Andy De Vries
South Bay AOR
Southland Regional AOR
Marcus Kenneth Richter
West Contra Costa AOR
West San Gabriel Valley AOR
MLS Working Group 1. That the MLS Working Group
Statement of Principles be adopted.
Principle 1. MLS data needs to be fully standardized with local options for
data field variation.
Principle 2. California REALTORS® should have universal access to all MLS
Principle 3. Use of MLS data and its distribution to third parties should
be controlled by the brokers who provide the data.
Principle 4. MLS entities should exist for the benefit of the participants
Principle 5. MLS rules should be uniform and enforced consistently.
Principle 6. MLS Boards of Directors should include brokerowners with
appropriate regional representation.
1. That the amount of the suggested REALTOR® ACTION FUND contribution be
set at $197 for 2006.
2. That the 2006 voluntary political contribution allocation formula be
changed as follows:
Current 2005 Distribution Formula
15% to CREPAC/Federal($615,000)
15% to CREIEC ($615,000)
42% CREPAC/BORPAC ($1.7 million)
28% Local BORPAC ($1.14 million)
34% Local BORPAC
2006 Proposed Formula
10% to CREPAC/Federal ($410,000)
15% to CREIEC ($615,000)
45% CREPAC/BORPAC ($1.84 million)
30% Local BORPAC ($1.23 million)
34% Local BORPAC
*No corporate contributions are allocated to the CREPAC/Federal component
Note: Based on $4,100,000 contribution total the numbers in parentheses
represent how much money each account would receive based on their
3. It was reported for information only that the Political Affairs
Committee has approved the Pin Redesign subcommittee's recommendation for
the new REALTOR® ACTION FUND pin that will be given to only those members
who have contributed $197. Additionally, the pin would have a "stone"
added to signify their Lifetime Contributions to Date.
$30,000 & up (Canary Diamond)
Property Management 1. That C.A.R. "SUPPORT"
legislation that would increase the monetary jurisdiction of a tenant's
unclaimed personal property when a tenant vacates a unit.
Real Estate Business Services 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.
REBS Directors elected for 2006 - 2007:
Jeff Culbertson, Sacramento, Coldwell Banker
Jim Hamilton, Redondo Beach, RE/MAX Execs
Maxine Jennings, Dublin, Real Estate Services
John Wong, San Francisco, Prudential California Realty
The following REBS Directors have continuing terms through 2006:
Alan Arora, Los Angeles, Real Estate Business Services
Annette Graw, Manhattan Beach, South Bay Brokers
Dianne McMillan, Vista, North San Diego County Association of
Joel Singer, Los Angeles, California Association of REALTORS®
Gary Thomas, Aliso Viejo, RE/MAX Real Estate Services
Real Estate Finance
1. That C.A.R. "OPPOSE," and seek the support of NAR to "OPPOSE," H.R. 1295
because it includes:
-- A federal preemption of California's subprime lending law;
-- Federal requirements for a uniform mortgage broker license;
-- A hard numerical threshold on debt to income ratio for borrowers;
-- An extension of the Home Ownership and Equity Protection Act (H.O.E.P.A)
to purchase money mortgages.
Standard Forms Advisory
1. It was reported for information only that the Standard Forms Advisory
Committee approved a draft for combination of Statewide Buyer Seller
Advisory/Buyer Inspection Advisory and portions of the Seller's Advisory.
The draft will be available at the January 2006 meeting for scheduled
release in April 2006.
The committee directed staff to prepare a draft of an "I Am/ Am Not A
REALTOR®" Form for the January 2006 meeting.
Staff will investigate and report in January 2006 regarding a
proposal that a bundle of Purchase Contracts, Buyer Broker Agreement
and related forms be made available in a kit format.
Thecommittee voted to approve the inclusion of agent and Broker of record's
DRE license numbers in all contracts for April 2006 release.
October 2005 Forms Release:
Demand to Close Escrow (DCE) -- After comments from the Forum on Formsand
Regional Reps, a draft was modified and approved for October release.
Non-Residential, Residential Income and Vacant Land Listing Agreement (NRL)
-- the name has been changed to Commercial, Residential Income and Vacant
Land Listing Agreement (CLA).
Seller's Affidavit of Nonforeign Status (AS) -- will now include a buyer
Option Agreement (OA) -- has been modified and approved.
A study group has been authorized covering Election and Waiver of
Strategic Planning & Finance
1. That the Statement of Income and Expenses by program for the seven
months ending July 31, 2005 be approved.
Revenue of $22,910,300
Expenses of $12,596,900
An excess of income over expenses of $10,313,400
Political Activities Fund
An excess of income over expenses of $1,177,200
Issues Action Fund
An excess of income over expenses of $1,303,000
The C.A.R. Balance Sheet as of July 31, 2005
Total assets of $38,676,000 (of which $29,585,300 are current assets)
Total liabilities of $5,054,200 (of which $3,775,400 are current
C.A.R. Fund Balance of $33,621,800
2. That the Projected Statement of Income and Expenses by program for the
year ending December 31, 2005 be approved.
Revenue of $27,948,800
Expenses of $25,633,000
An excess of income over expenses of $2,315,800
Political Activities Fund
An excess of income over expenses of $803,400
Issues Action Fund
An excess of income over expenses of $948,400. This amount will be
allocated to IMPAC as approved by the Directors.
3. To approve a 2006-2008 strategic plan and 2006 budget with the following
a. C.A.R. Revenue $29,542,500
C.A.R. Cost $25,737,500
Net Surplus $3,805,000
b. Political Activities Fund Revenue $1,806,000
c. Issues Action Fund Revenue $1,806,000
Issues Action Fund Costs $793,500
Issues Action Fund Transfer to IMPAC $1,012,500
d. 113 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 2006 year end membership of
f. A 2006 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. That $398,300 be approved for an additional five percent pension
contribution to the C.A.R. and REBS employee pension plan for 2005,
augmenting the previously approved budget of ten percent.
6. To approve a budget augmentation to provide an electronic newsletter
service for REALTOR® members for a net cost of $16,300 (Revenue $20,000 and
total cost $36,300).
Note: Please see report item #7 below
7. To approve a budget augmentation to support the newly established C.A.R.
Education Foundation for a total cost of $4,200 for start up fundraising
and related activities.
8. To approve a budget augmentation for Proactive Litigation.
9. It was reported forinformation only that C.A.R. authorizes the
expenditure of $70,000 for the purchase of the Inman News Group's
electronic newsletter service (Homeowner's Guide).
1. That C.A.R. "SUPPORT" in concept the creation of employee benefit plans
designed to a) give employers an incentive to provide their employees with
housing downpayment assistance and/or b) make the downpayment assistance
tax-free to the employees.
The following special awards were presented at the Board of Directors
2005 Outstanding Committee Chairs
Kevin Brown, Legislative
Sandi Pfister, IMPAC Trustees
Rick Violett, CREPAC Trustees
2005 Committee Liaison Awards
John Cribb, Public Policy
Liz Fitzgerald, Public Policy
Annette Graw, Legal Issues & Information
Ben Heinrich, Industry Information & Membership Services
Geoff McIntosh, Industry Information & Membership Services
Art Nellessen, Political
Pat "Ziggy" Zicarelli, Association Leadership
2005 President's Award
Mike and Deen Teer, Inland Valleys