November 2014 CEO Report

I have quite an amount of information to share with the Board this month as the amount of activity has been quite busy. I will begin my report this month with a legislative update on Federal Issues that NAR is monitoring. With both the General Election and NAR Annual Convention under our belts, attention has quickly shifted to guiding NAR priority issues in Lame Duck session which started when the House and Senate returned yesterday. High on the priority list remain getting an extension of the Mortgage Debt Forgiveness Tax Relief, reauthorizing the Terrorism Risk Insurance Act (TRIA), and working to ensure that the Waters of the US (as overseen by the EPA and Army Corp of Engineers) are scientifically and responsibly defined. Our legislative contact Lindsay Shuba, keeps me informed on a monthly basis and she is quite helpful with any questions that I have in regards to Federal Issues. Please continue to watch for NAR Calls for Action and reply ASAP. Also encourage your fellow agents to become active on the issues.

FHA Programs

FHA 203(K) Monitoring

On September 26, 2014, the National Association of REALTORS®, along with the National Association of Homebuilders and the Mortgage Bankers Association, sent a letter to the Federal Housing Administration (FHA) in response to proposed changes to the 203(k) Rehabilitation Mortgage Insurance Program. The 203(k) program provides financing to renovate older and damaged homes. The coalition provided several recommendations to maintain the viability of the program and allow the revitalization of properties that might otherwise continue to deteriorate.

FHA Property Flipping Waiver

Read more …

New Member Code of Ethics Orientation

As required by the National Association of REALTORS® new members are required to complete an Ethics Orientation Course within 30 days of activation of a new license.

• to heighten member awareness of the key tenets of the Code of Ethics;
• to create an awareness of and appreciation for the role the Code can and should play in their professional lives;
• to enhance professionalism and competency; and
• to encourage REALTORS® to view their Code of Ethics as a living, viable guide in their daily dealings with clients, customers, and the public.

This online course is available to you at no cost, will take approximately 2 1/2 hours to complete.  Individuals have thirty (30) days to complete this course from their original start date.

Click here to begin New Member Code of Ethics Orientation

This course includes a final exam and requires a minimum score of at least 75% to receive credit.  Once you complete this process, your records will automatically be updated to reflect completion of this requirement.  If you have any questions regarding this process please feel free to contact the Board Office at 419.625.5787.

Code of Ethics Requirements - Existing Members

Existing REALTOR® members must complete 2.5 hours of ethics training, meeting specific learning objectives and criteria, within a two-year cycles effective January 1, 2015.

REALTORS® who have completed the required ethics training within a two-year cycle in one association shall not be required to complete any further ethics training for that same training cycle if the REALTOR® becomes or is a member of another association.

Click Here To Take the Online Course For Existing Members Now

Once you complete this online course, your records will automatically be updated.  Failure to complete the required periodic ethics training shall be considered a violation of a membership duty.  If you have any questions regarding this requirement or your status, please contact the Board Office at 419.625.5787.

Approved Revisions of the By-Laws of the Firelands Association of REALTORS

Below you will find a detailed description of the approved changed to the existing By-Laws for the Firelands Association of REALTORS®.  Members unanimously voted to approve these changes at our recent Annual Meeting on Wednesday, October 8th, 5:30 PM at the Catawba Island Club in Port Clinton, OH.

            The following are all of the proposed changes to the existing By-Laws of the Firelands Association of Realtors. The By-Laws are being revised for two reasons. First, the revisions will ensure that the By-Laws allow the Board to operate and serve the Membership in the most efficient and effective manner possible. Second, the revisions will ensure that the By-Laws remain compliant with National Association of Realtors standards.

            Below each Section being amended will be provided along with the approved change in red and the previous language crossed out in red. Following the approved redlined change will be the “Reason for the change” section, which will provide a synopsis as to why the change was proposed. All amendments are subject to National Association of Realtors' review in compliance with the Core Standards Initiative.

•          Article X Section 6, Expenditures
•          Article XI Section 1, Officers
•          Article XI Section 3, Board of Directors
•          Article XI Section 4, Election of Directors.
•          Article XI Section 5, Vacancies.
•          Article XII Sections 7 and 8, Meetings.
•          Article XIII Sections 5 and 6, Committees.

 Section 6.     Expenditures.  The Board of Directors shall administer the day to day finances of the Board. Capital expenditures in excess of Fifteen Thousand Dollars ($15,000.00)$ 5,000 may not be made unless authorized by 10 % of the Board Members eligible to vote.

 Reason for the change: This amendment increases the amount of unauthorized capital expenditures that the Board of Directors may make. The increased amount is a more accurate number for typical day to day capital expenditures that must be made.

   Section 1. Officers. The elected officers of the Board shall be: a President, a Vice President, a Secretary and/or a Treasurer. The Secretary and Treasurer may be the same person. They officers shall servebe elected  for terms of one year. The officers shall be elected from among the board of directors by the board of directors The director serving as Secretary during the preceding term shall move into the position of Treasurer, the Director serving as Treasurer during the preceding term shall move into the position of Vice-President, and the Director serving as Vice-President during the preceding term shall move into the position of President. If there should be a Director serving as both Secretary and Treasurer during the preceding term, then that Director shall move into the position of Vice-President. vice president may move into the position of President, as may be determined by the board of directors each year. Election should take place at the first directors meeting to be scheduled after the annual election of officers in October of each calendar year. A candidate for President must have completed 1 year as a director within the preceding 3 years. If a Director is elected to the office of Secretary, Treasurer, or Vice President in the second year or third year of their term, their term will be extended to allow them to serve out the terms of Treasurer, Vice President, President, and Past President. (August 2014April 2000.)

 Reason for the change: The proposed changes mimic the Ohio Association of Realtors structure for Board officers. In addition, the proposed changes ensure that the President will be adequately prepared and informed as to officer responsibilities upon taking office.

Section 3.     Board of Directors.  The governing body of the Board shall be a Board of Directors consisting of the elected officers, the immediate past president of the Board, and eight (8) elected REALTOR® members. The Affiliate Member who has been elected from within the Affiliate Committee to be chairperson shall serve as director during their term. Directors shall be elected to serve for terms of three years, except that at organization, one-third of the elected Directors shall be elected for terms of one, two, and three years, respectively, or for lesser terms as may be necessary to complete the first fiscal year. Thereafter, as many Directors shall be elected each year as are required to fill vacancies. Should four (4) or more vacancies need to be filled during the same election cycle, the directors may assign terms of less than three years to the vacant positions and ensure that the vacancies are filled accordingly. In the event that any of the five counties have less than 1 Director/Officer from their county, the board of directors, at their first meeting after election shall appoint a Director for a three year term from that county or counties, as necessary. Their term shall begin Jan. 1 of the following year just as all other Directors. Location of office at time of appointment will determine county representation. (August 2014October 2006)

Reason for the change: This change is meant to clarify the composition of the Board. In addition, the proposed changes to this section allow for staggered Directors terms and, therefore, ensure that there is not a dramatic shift in Directors positions each election so as to unduly hinder the Directors’ service of the Membership.

Section 4.     Election of Officers and Directors.

(b)        The election of Officers and Directors shall take place at the annual meeting. Election shall be by ballot and all votes shall be cast in person. Each open seat shall be filled in descending order by the candidate with the most votes to the candidate with the least votes. Absentee balloting is allowed for the annual election. Absentee ballots will be in sealed envelopes and be delivered to the Board office no later than the close of business the day before the annual election. (August 2014)

Reason for the change: This change helps to clarify the Director election process.

Section 5.     Vacancies.  Vacancies among the Officers and the Board of Directors shall be filled by a simple majority vote of the Board of Directors until the next annual election.

Reason for the change: This change is a clerical one intended to remove redundancy. If any Director position, officer or non officer, is vacant, then the replacement shall be selected by a majority of the Board of Directors.

Section 7.     Electronic Transaction of Business. To the fullest extent permitted by law, the board of directors or membership may conduct business by electronic means. (August 2014)

Section 8.     Action without Meeting. Unless specifically prohibited by the articles of incorporation, any action required or permitted to be taken at a meeting of the board of directors may be taken without a meeting if a consent in writing, setting for the action so taken, shall be signed by all of the directors. The consent shall be evidenced by one or more written approvals, each of which sets forth the action taken and bears the signature of one or more directors. All of the approvals evidencing the consent shall be delivered to the Secretary to filed in the corporate records. The action taken shall be effective when all the directors have approved the consent unless the consent specifies a different effective date. (August 2014)

Reason for the change: These changes allow the Directors to work more efficiently and effectively in compliance with National Association of Realtor guidelines and the Ohio Revised Code. Through these changes, the Directors can address emergency situations electronically and without a meeting.

Section 5.     Action without Meeting. Any committee may act by unanimous consent in writing without a meeting. The consent shall be evidenced by one or more written approvals, each of which sets forth the action taken and bears the signature of one or more of the members of the committee. (August 2014).

Section 6.     Attendance by Telephone. Members of a committee may participate in any meeting through the use of a conference telephone or similar communications equipment by means of which all persons participating in the meeting can hear each other. Such participation shall be at the discretion of the Board President and shall constitute presence at the meeting. (August 2014)

Reason for the change: These changes allow committees to work more efficiently and effectively in compliance with National Association of Realtor guidelines and the Ohio Revised Code. Through these changes, committee members can address emergency situations via telephone and without a meeting.

September 2014 General Membership Meeting

 The General Membership meeting held September 3, 2014 at the Sandusky Yacht club was well attended and featured the induction of former CEO Ruth DeHenning into the FAOR Hall of Fame. President Phillip Bolte opened  the meeting with the introduction of distinguished guests, Robert Fletcher, CEO of OAR, OAR Treasurer Sara Calo, and OAR District 2 VP Len Partin. The meeting began with the reading and approval of the minutes from the  June 18th 2014 meeting. Treasurer Sara Riesen presented an up-to-date report of the financial picture of the association to the membership. She detailed the account lines that had variances from budgeted amounts. The floor  was opened for questions; being none the motion to approve the report was made and seconded. Motion passed. President Bolte then reported on the work of the nominating committee. It was the recommendation of the  committee to nominate Sara Riesen for a second term as director. The floor was opened for nominations, being none a motion was made to close the nominations. The motion passed unanimously.

 It announced to the membership to sign up for 2015 committee's on the forms provided. Reminder was made to the membership on the upcoming OAR convention in Cleveland and our awards banquet to be held October 8th.

 CEO David Freitag then reported to the membership on the NAR core standards and the effect on our Board. We have to ensure that our by-laws are in compliance with NAR's requirements and because of this a by-laws  review has been conducted. It was noted that the one area that the committee is addressing is raising the limit of expenses that the Directors can approve from the current limit of $5000 to $15,000. A Broker's meeting has  been scheduled for September 23rd and also a by-laws meeting to follow.

 Robert Fletcher, CEO OAR was introduced to induct Ruth DeHenning, RCE into the FAOR Hall of Fame. Mr. Fletcher told of his long association with Ruth and her detailed some of her many accomplishments over her years of  service to all REALTORS in Ohio. Ruth then gave a short acceptance speech and thanked all of the members and staff for their help over the years.

Being no further business the meeting was adjourned.