CALIFORNIA ASSOCIATION OF REALTORS®
BOARD OF DIRECTORS
JANUARY 28 - 29, 2011
The following is a summary of the significant action items approved by the CALIFORNIA ASSOCIATION OF REALTORS® Board of Directors at its Winter 2011 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.
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 $20,000. The C.A.R. Education Foundation awarded grants in the amount of $11,250.
California REALTOR® EXPO Advisory
1. It was reported for information only that the California REALTOR® EXPO will take place in San Jose from September 20-22, 2011. The theme is E3: Education, Enrichment and Empowerment.
1. It was reported for information only that the CREPAC Trustees will transfer the 2011 Fair Share contribution of $740,000 from CREPAC/Federal to the National RPAC.
2. It was reported for information only that the CREPAC Trustees contributed $265,000 to bi-partisan candidates for the Assembly and Senate, as well as to the Democratic and Republican Parties.
3. It was reported for information only that, of the races that the CREPAC Trustees participated in during the 2010 Election, CREPAC supported candidates were victorious in 99% of the cases.
4. It was repoted for information only that the CREPAC Trustees made the following updates to the Local Candidate Recommendation Committee Cooperative Agreement.
Under Section title: Responsibilities of the Local Association
Paragraph 3: CREPAC shall maintain Local Candidate Recommendation Committee funds for the amounts received through the AOR.
(A) The AOR shall maintain a Local Candidate Recommendation Committee (“LCRC”) to handle political matters. The AOR shall not appoint any Local Candidate Recommendation Committee Trustee (“LCT”) for the LCRC who has not made the minimum annual contribution of $148 to the REALTOR® Action Fund or another minimum voluntary amount which is at the discretion of the AOR. The LCT must have paid the $49 RAA to the CAR PACS.
The CREPAC Trustees further decided that prior to the LCRC Agreement being submitted to the Local AORs for signature, that the CREPAC Trustees annually review the LCRC Agreement at the C.A.R. Fall meetings to approve or amend and that the Agreement will be effective upon signature of all parties and will continue until December 31 of the current year.
Distressed Properties Task Force
1. That C.A.R. allocate $52,800 to purchase ad space in California newspapers (LA Times, SF Chronicle, Mercury News, Sacramento Bee, and San Diego Union Tribune) to publish an Open Letter on the subject of short sales.
2. That C.A.R. allocate $30,000 to support association efforts to improve the short sale process, including but not limited to communication efforts, surveys, and coalition building activities.
1. That a Resolution of Grateful Appreciation to 2010 President Steve Goddard be approved. (click here to view PDF)
2. That a Resolution of Grateful Appreciation to Mary Funk, 2010 California Distinguished REALTOR® Award Recipient be approved. (click here to view PDF)
3. That the C.A.R. Bylaws be amended as noticed.
The first amendment adopted clarifies that if a member of the Nominating Committee breaches confidentiality, nondisclosure or conflict of interest policies of that Committee, that they will not be eligible to serve as a Chair or Vice Chair for at least a year and they will not be eligible to serve on any committee for a year after there has been a finding of violation. The second amendment adopted updates the name of the Executive Vice President to Chief Executive Officer to conform his title and role in the Association with practical realities and also to be on a par with other State and National Executives in the same role. Other bylaws changes allow for an appointment of assistant secretaries. (click here to view PDF)
4. That the following 2011 Presidential appointments be approved:
2011 Executive Committee
Beth L. Peerce
2011 Directors at Large
Darnella Barnes, Delta
Kim Boda, Big Bear
Tim Brigham, Big Bear
Virginia Butler, Palos Verdes Peninsula
Cynthia Carley, Rim O’ The World
Geoffrey Craighead, San Mateo County
Moses Dennis, Palos Verdes Peninsula
Christine Dwiggins, San Francisco
Vern Hansen, North Bay
Patricia Hicks, East Valley
Tom Hiller, Humboldt County
Alberta Huston, West Contra Costa
Jeremy Lehman, Pacific West
Frank Nelson, The Inland Gateway
Georgia Richardson, Oakland
Larry Spiteri, Contra Costa
Richard H. Stone, Arcadia
Scott Swendiman, Shasta County
Theresa Wilson-Allen, Yosemite Gateway
Nick Zigic, Arcadia
5. That the Inland Valleys Association of REALTORS® be reassigned, per their request, from C.A.R. Region 23 to C.A.R. Region 14, effective immediately.
1. That C.A.R. re-introduce C.A.R.’s 2008 “SPONSORED” legislation, AB 2259 (Mullin), that would have protected a CID unit owner’s right to rent their unit, if that right existed at the time the owner purchased the unit.
2. It was reported for information only that the Housing Committee recommends that the Standard Forms Committee place a reference to “C.A.R.’s Buyers Guide to Common Interest Development” within C.A.R.’s standard forms.
1. It was reported for information only that amendments to the IMPAC bylaws will be voted on by the directors at the upcoming May 2011 directors’ meetings in Sacramento.
2. It was reported for information only that IMPAC approved the following requests:
Central Valley Association of REALTORS®: Up to $50,000 to match local funds, including the $19,225 already contributed to the effort, and funds raised through interboard solicitations.
Civil Justice Association of California: $20,000 for annual membership.
3. It was reported for information only that IMPAC accept the Outreach Working Group Report.
The following suggested actions from the Outreach Working Group Report were adopted:
-That IMPAC amend the IMPAC Trustee Manual to include ongoing outreach activities as part of a Trustee’s duties.
-That IMPAC Staff work with Trustees to prepare a hand-out document profiling several case-studies of local successful campaigns that employed State and/or Local IMPAC funding for use in outreach presentations.
-That IMPAC Staff prepare talking points for Trustees and Alternates to use at outreaches.
-That the IMPAC Chair or designated IMPAC representative request permission from Regional Chairs Committee, Association Executive Committee and the Governmental Affairs Subcommittee if he/she may speak to the group about IMPAC and to inform them that IMPAC Trustees are available to offer these groups brief informational presentations any time they meet.
-That IMPAC Staff prepare an IMPAC Issues Briefing Paper to be considered by Trustees for a grant to cover reimbursable outreach expenses for 2011.
-That IMPAC Staff add Outreach Expenses to the IMPAC budget to cover reimbursable expenses incurred by Trustees and Alternates.
Legal Action Fund Trustees
1. It was reported for information only that, since October, the following actions have been approved by the Legal Action Fund Trustees:
a. De Santis v. Ruppert. The Trustees approved filing an amicus brief in a case involving a commercial real estate transaction in which the court held that notwithstanding the buyer’s duty to investigate whether the tenant planned to exercise an option to renew, the seller had a duty to disclose the possibility of nonrenewal of the option. This involves (1) whether a buyer’s failure to investigate the status of the current tenant relieves or mitigates the seller’s duty to disclose facts that may be known or suspected, (2) the differences in disclosure duties between verifiable financial lease terms and latent property defects, and finally (3) the uncertainty of the tenant’s frame of mind with respect to a future renewal of a lease/option when nothing has be committed to writing.
b. Guggenheim v. City of Goleta. This mobile home rent control case involves a facial challenge to mobile home rent control due to the effect of transferring the value of the land to tenant mobile home owners. In this case the amount of the mobilehome coach rose by 225% due to the rent control of the mobilehome park, effecting a transfer of wealth from the landowner to the mobilehome coach owner. The en banc hearing at Ninth Circuit Federal Court of Appeal upheld the ordinance with three Judges dissenting, including the Presiding Judge. This is a case that has caught nationwide interest and is postured, if accepted, to be a landmark case involving mobile home rent control. The Trustees approved $25,000 to assist the party in seeking a hearing before the U.S. Supreme Court and also approved filing a brief supporting a hearing before the U.S. Supreme Court.
c. In some cases, there are disputes between associations that become very heated. NAR has a mediation process for this purpose. However, in some instances, there can be unintended consequences when an outside attorney sees an opportunity to exploit these divisions and resulting litigation ends up creating issues and exposure for the other associations and the membership at large. The Trustees had a discussion about this and wish to encourage associations to avoid such conflicts when possible and avoid litigation that can spiral out of control at great cost. In that spirit, the Trustees adopted the following policy: That the Legal Action Fund not be used to fund litigation between local associations.
It was further reported for information only that in the Short Sale Case of Holmes v. Summer, the Trustees approved a request to seek depublication in the case of involving the duty of an agent to disclose the possibility of a short sale due to the amount of liens on a property. In the case, the client originally told the broker that he intended to pay off the liens and not do a short sale but later changed his mind. The California Supreme Court has denied the request for depublication.
1. That C.A.R. “SUPPORT IF AMENDED” SB 2(Calderon) if amended to include a requirement that short sale negotiators must be paid by the person hiring them.
1. That the following applicants be granted C.A.R. Honorary Member-for-Life status:
Bay East AOR
California Desert AOR
La Donna Keaton
Thomas Russo Sr
Citrus Valley AOR
Contra Costa AOR
Edna Young Carvin
Del Norte AOR
Inland Valleys AOR
Monterey County AOR
Newport Beach AOR
Orange Belt BOR
Orange County AOR
Pacific West AOR
Pismo Coast AOR
San Francisco AOR
Santa Clara County AOR
Roland K Attebery
Julia E Braun
Ann Marie Quellman
Al H Rambod
Santa Cruz County AOR
Silicon Valley AOR
Southland Regional AOR
Tuolumne County AOR
Ventura County Coastal AOR
MLS/Computer and Business Technology
1. In the event NAR considers MLS policy regarding the mandatory reporting of sold information, C.A.R. supports the position that an MLS should be allowed to require mandatory reporting of both sold status and selling price as a requirement of listing a property with the service.
NOTE: Such a position allows, but does not compel, an MLS to adopt exceptions when a buyer/seller chooses not to disclose.
REALTOR® Action Fund
1. That the C.A.R. Gold President Circle members in good standing who are current year REALTOR® Action Fund contributors be designated as Priority Guests and guaranteed a guest room in the host hotel for C.A.R. meetings with advance registration.
Standard Forms Advisory Committee
1. It was reported for information only that there were 7 Regional Representatives present at the Standard Forms Advisory Committee (SFAC) meeting. Among other recommendations, the regional representatives suggested that the SFAC address potential federal financing limitations on properties with private transfer fees as well as make minor modifications to the April forms drafts. The SFAC reviewed 3 new drafts, including the Denial of Rental Application (DRA) and two notices to tenants following foreclosure. They also reviewed 13 revised property management drafts and made modifications to some of these forms. These modifications will be sent to the Property Management Study Group for further input. In general, these drafts were approved with expected changes and are anticipated to be released in April 2011. We wish to acknowledge the hard work of the Property Management Study Group which produced these drafts and is continuing to work on standardizing property management forms across industry associations as well as making recommendations to REBS for relevant business products. The SFAC also received a report from the Housing Committee recommending that the Standard Forms Committee reference the "C.A.R. Buyers Guide to Common Interest Development” in the SBSA and add the publication to ePUBS. The SFAC recommends that REBS adopt these changes. Additionally, the SFAC was provided with the status regarding an update to the Environmental Hazards booklet. The booklet will be updated in late February to include a reference to the latest carbon monoxide detector law that takes effect July 1, 2011. Finally, the SFAC reviewed 58 of the 73 comments received, and will have a conference call to review the balance of the comments.
Strategic Planning and Finance
1. That the Statement of Operating Income and Expenses by program for the eleven months ending November 30, 2010 be approved.
Operating Revenue of $27,003,700
Operating Expenses of $22,491,700
An excess of operating income over expenses of $4,512,000
Political Activities Fund
An excess of income over expenses of $1,909,200
Issues Action Fund
An excess of income over expenses of $923,600
The C.A.R. Balance Sheet as of November 30, 2010
Total assets of $64,368,200 (of which $48,231,900 are current assets)
Total liabilities of $3,790,200 (of which $3,696,100 are current liabilities)
C.A.R. Fund Balance of $60,578,000
2. That the Projected Statement of Operating Income and Expenses by program for the year ending December 31, 2010 be approved.
Operating Revenue of $28,029,700
Operating Expenses of $25,212,800
An excess of operating income over expenses of $2,816,900
Political Activities Fund
An excess of income over expenses of $1,771,900
Issues Action Fund
An excess of income over expenses of $818,700. This amount will be allocated to IMPAC as approved by the Directors.
3. That the 2010 remaining balance of $40,000 to provide California REALTORS® with a voluntary customer satisfaction system be carried forward to 2011 to make possible the completion of the pilot program that was initiated in 2010.
Transaction and Regulatory
1. That C.A.R., "SUPPORT" SB 53 (Calderon), an “omnibus” bill containing various real estate provisions including a DRE citation and fine authority with a $2500 cap on fines, ability of DRE to require reporting of “broker owned” escrows by a licensee in excess of five per year, and provisions allowing DRE to compel access to records.
2. That C.A.R. "SUPPORT" SB 6 (Calderon), a bill to clarify the exemption from the appraisal law for valuation opinions (BPOs) done under authority of a real estate license.
3. That C.A.R., in keeping with existing policy, pursue legislative opportunities, as they arise, to clarify the law to require "degree brokers" to have an undergraduate degree in real estate or two years of "general real estate" experience. If legislative opportunities do not present themselves in 2011, C.A.R. will "SPONSOR" legislation to achieve the change in 2012.
4. That C.A.R. "SUPPORT" SB 62 (Liu), allowing local government to expand their "postcard" notice program to property owners to apply to Notices of Sale and Notices of Default.
5. That C.A.R. "SPONSOR" legislation to implement the water conservation disclosure requirements enacted by SB 407 (Padilla) in the 2009-2010 legislative session.