CALIFORNIA ASSOCIATION OF REALTORS®
BOARD OF DIRECTORS
514^th SESSION
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 please Contact Us.


Award Selection
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 accounts.

CREPAC Trustees
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.

IMPAC Trustees
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 report.
- 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.

Legislative
1. That C.A.R. take the following positions on November 2005 Ballot measures:
-- 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 ESTATE RELATED"
-- Proposition 77: Reapportionment -- "NOT REAL ESTATE RELATED"
-- Proposition 78: Discounts on Prescription Drugs -- "NOT REAL ESTATE RELATED"
-- Proposition 79: Prescription Drug Discounts, State-Negotiated Rebates "NOT REALESTATE RELATED"
-- Proposition 80: Electric Service Providers Regulation -- "NOT REAL ESTATE RELATED"

That C.A.R. take the following positions on June 2006 Ballot measures:
-- California Reading and Literacy Improvement and Public Library Construction and Renovation Bond Act of 2006 -- "NOT REAL ESTATE RELATED"

That C.A.R. take the following positions on November 2006 Ballot measures:
-- 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 that:
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 2007;
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 Spring 2006;
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 courses;
c. audit and increase the quality and content of continuing education courses;
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 year 2010.
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 status:

Bay East AOR
Ed Ballard
Emily Ray
Alfred C. Roessler

Big Bear AOR
Mary Burke
Mary Cummings
Fred Fassa
Esther Marie Hilliard
David Johnson
Dorothy Tubbs

Contra Costa AOR
Narra Asher
Gill Bordenave
Pat Cardas
Charles Gerold
Calvin Goforth
Barbara Haines
VirginiaLahey
Mary Lassen
Clyde Miller
Eric Rendel
Dorothy Teeter
Marilyn Westbay

East San Diego County AOR
C. W. Banteir
Weldon W. Griffin
Ollie Huntsman
Joe Miller
Jack Moore
Dick Ruis
Becki Schwab
Gloria Whalen
Donna Wollitz

Inland Valleys AOR
Lora Lee Barrett

Marin AOR
Joane Berry
Marion Elkjer
Tedi George
Mary Ann Young

Monterey County AOR
Bonnie Jean Foy

North Bay AOR
William Haigwood

Oakland AOR
RobertValva
Cecil Reves

Orange County AOR
Albert Josef Baumgartner
Daniel J. Leonard

Pacific West AOR
Jeanne M. Barnes
Carole Faye Breithaupt
Jean Moore
Nick Pondoff
Louise Magdalene Worthy

Pasadena-Foothills AOR
GloriaDemonteverde

Placer County AOR
Roger Ernest Bancroft

Rancho Southeast AOR
Delores Smith

San Mateo County AOR
Mildred Pietschker
Gene Steil

Santa Cruz AOR
Franklin J. Harris
Bette Pennington

Simi Valley-Moorpark AOR
Andy De Vries

South Bay AOR
June Gennaria
James Michalka

Southland Regional AOR
Lawrence Blumberg
Robert Heffer
Marcus Kenneth Richter

Watsonville AOR
Celia Fiorovich

West Contra Costa AOR
Don Bartels
Geraldine Rosine
Norma Simmons
Ernie Spencer

West San Gabriel Valley AOR
Lorraine Morrison

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 data.

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 and subscribers.

Principle 5. MLS rules should be uniform and enforced consistently.

Principle 6. MLS Boards of Directors should include brokerowners with appropriate regional representation.

Click here to view the complete MLS Statement of Principles and the explanations provided by the MLS Working Group (available in PDF format; requires free Adobe Acrobat Reader)

Political Affairs
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
Personal Contributions
15% to CREPAC/Federal($615,000)
15% to CREIEC ($615,000)
42% CREPAC/BORPAC ($1.7 million)
28% Local BORPAC ($1.14 million)
Corporate Contributions*
15% CREIEC
51% CREPAC/BORPAC
34% Local BORPAC

2006 Proposed Formula
Personal Contributions
10% to CREPAC/Federal ($410,000)
15% to CREIEC ($615,000)
45% CREPAC/BORPAC ($1.84 million)
30% Local BORPAC ($1.23 million)
Corporate Contributions*
15% CREIEC
51% CREPAC/BORPAC
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 percentage formula.

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. 
$10,000-$15,000 (Ruby)
$15,001-$20,000 (Emerald)
$20,001-$25,000 (Sapphire)
$25,001-$30,000 (Amethyst)
$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 REALTORS®
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 acknowledgement.
Option Agreement (OA) -- has been modified and approved.

A study group has been authorized covering Election and Waiver of Inspections.

Strategic Planning & Finance
1. That the Statement of Income and Expenses by program for the seven months ending July 31, 2005 be approved.
Total C.A.R.
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 liabilities)
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.
Total C.A.R.
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 criteria:
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 210,000).
f. A 2006 Capital Budget (funded with Association reserves) totaling $644,100.

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).

Taxation
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.

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

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