1. REAL SOLUTIONS. REALTOR ® SUCCESS Arizona Association of REALTORS ® NAR Core Standards What’s Next? Monica Schulik Director of Association Relations

2. REAL SOLUTIONS. REALTOR ® SUCCESS Arizona Association of REALTORS ® Core Standards Purpose Raise the bar for REALTOR ® associations and ensure high-quality information and service for all REALTORS ®

3. REAL SOLUTIONS. REALTOR ® SUCCESS Arizona Association of REALTORS ® Categories of Standards First Cycle (2014-15) Code of Ethics Advocacy Consumer Outreach Unification efforts Technology Financial Solvency

4. REAL SOLUTIONS. REALTOR ® SUCCESS Arizona Association of REALTORS ® Results from first cycle? Started with 1,355 local associations 85 Mergers involving 194 locals 108 of the 194 voluntarily surrendered their charters 27 locals voluntarily surrendered their charter with no merger

5. REAL SOLUTIONS. REALTOR ® SUCCESS Arizona Association of REALTORS ® More Results 16 locals had their charters revoked by NAR BOD Currently, there are 1,204 local associations (11% or 151 less than when Core Standards was adopted)

6. REAL SOLUTIONS. REALTOR ® SUCCESS Arizona Association of REALTORS ® Arizona Results One merger in 2014 (La Paz merged with Lake Havasu) One voluntary surrender of charter (Graham/Greenlee) in 2015

7. REAL SOLUTIONS. REALTOR ® SUCCESS Arizona Association of REALTORS ® Cycle 2 Results We won’t know full national results until after NAR BOD meetings in November To date, it looks like all AZ associations will comply

8. REAL SOLUTIONS. REALTOR ® SUCCESS Arizona Association of REALTORS ® Most Challenging Standards #14, Every association shall demonstrate advocacy engagement (REALTOR ® Party program implementation) Consumer Outreach: Voice of Real Estate and Community Involvement Financial Solvency (audit, review or compilation) costs

9. REAL SOLUTIONS. REALTOR ® SUCCESS Arizona Association of REALTORS ® Cycle 3 Will now be on a calendar year (January 1 to December 31) Cycle 3 will be an 18 month cycle (July 1, 2016 to December 31, 2017) Merger grants available to first 25 merged association in 3 rd Cycle

10. REAL SOLUTIONS. REALTOR ® SUCCESS Arizona Association of REALTORS ® New Standards for Cycle 3 Professional Development required for volunteer staff acting as AE Professional Development required for elected leaders (local/state must offer resources for or access to leadership development) Must annually certify strategic plan with respective BOD

11. REAL SOLUTIONS. REALTOR ® SUCCESS Arizona Association of REALTORS ® More New Requirements Associations with less than $50,000 gross revenues must include revenues generated from MLS operations to obtain Compilation report as opposed to Audit or Review

12. REAL SOLUTIONS. REALTOR ® SUCCESS Arizona Association of REALTORS ® Still more... Require all local and state associations to adopt policies governing annual performance reviews of chief paid staff

13. REAL SOLUTIONS. REALTOR ® SUCCESS Arizona Association of REALTORS ® Increased Advocacy Requirements Required to request RPAC/PAF contributions on dues billing statement Must participate in NAR and/or state Calls For Action

14. REAL SOLUTIONS. REALTOR ® SUCCESS Arizona Association of REALTORS ® Must complete two initiatives in each Vote, Act, Invest categories Vote examples –Candidate interviews/indorsements –Campaign Services polling/research, mail) –Independent expenditures –Voter registration promotion –Voter Influence initiatives –Consumer mobilization for elections –Promotion of public policy positions of the organization

15. REAL SOLUTIONS. REALTOR ® SUCCESS Arizona Association of REALTORS ® Act examples –Coalition efforts/projects –Communication, marketing, education examples of association’s advocacy promotion initiatives –Broker Involvement initiatives –Meeting with elected officials –Community based advocacy –Candidate forums/presentations –Involvement/monitory engagement for councils, commissions, regulatory agencies

16. REAL SOLUTIONS. REALTOR ® SUCCESS Arizona Association of REALTORS ® Invest examples –Participation in soft dollar fundraising (corp ally program) –Partnered fundraising (collaborative efforts with RPAC, local & state associations) –Major donor events –Host Candidate fundraisers –PAC fundraising activities –Fundraising recognition programs –Fundraising specialty programs

17. REAL SOLUTIONS. REALTOR ® SUCCESS Arizona Association of REALTORS ® Consumer Outreach Changes Advocacy will be deleted (covered in Vote, Act, Invest) Community Involvement & Community Investment to be combined Must participate in at least two activities in “Voice of Real Estate” and “Community Involvement”

18. REAL SOLUTIONS. REALTOR ® SUCCESS Arizona Association of REALTORS ® New Member Education Requirement Associations must offer, promote, or provide access to at least one professional development opportunity for members each year.

19. REAL SOLUTIONS. REALTOR ® SUCCESS Arizona Association of REALTORS ® REALTOR® Safety Associations are required to conduct or promote an annual REALTOR ® safety activity

20. REAL SOLUTIONS. REALTOR ® SUCCESS Arizona Association of REALTORS ® Shared Services Given the Core Standards, there is now more need for collaboration among local associations Mutually beneficial partnership to enhance the level of service to all members and increase the association’s efficiency and productivity

21. REAL SOLUTIONS. REALTOR ® SUCCESS Arizona Association of REALTORS ® Most Shared Services Executive/Administrative Services (ie., accounting, bylaw upkeep, meeting management, etc.) Professional Standards Enforcement process Government Affairs Director MLS

22. REAL SOLUTIONS. REALTOR ® SUCCESS Arizona Association of REALTORS ® Questions to consider What services should we be providing but lack the resources? What activities are best done by someone else? What services that have a high value to the member would we offer if the resources were available?

23. REAL SOLUTIONS. REALTOR ® SUCCESS Arizona Association of REALTORS ® Ten Essential Member Services 1.Administrative Services 2.Communications 3.Education 4.Planning and Financial Management 5.Governance and Leadership Development

24. REAL SOLUTIONS. REALTOR ® SUCCESS Arizona Association of REALTORS ® 6.Government Advocacy, Political and Community Involvement 7.MLS and Real Estate Productivity Tools 8.Professional Standards, Legal, and Member Policies 9.REALTOR ® Organization, Industry Relationships, and Networking 10.Technology

25. REAL SOLUTIONS. REALTOR ® SUCCESS Arizona Association of REALTORS ® Identify If there are services that are lacking or not offered and another association can and will offer services, talk!

26. REAL SOLUTIONS. REALTOR ® SUCCESS Arizona Association of REALTORS ® Mergers (Chapters/Councils) Why Merge? –The purpose of an association merger is to join association resources in order to create a larger, stronger organization

27. REAL SOLUTIONS. REALTOR ® SUCCESS Arizona Association of REALTORS ® Benefits of a merger? Increase the association’s appeal to area Members, who in some cases would no longer be required to pay multiple association dues and service fees Reduce the association’s direct costs (e.g., office buildings, staff salaries, duplicate services such as MLS, etc.)

28. REAL SOLUTIONS. REALTOR ® SUCCESS Arizona Association of REALTORS ® Enhance the services provided to Members including additional educational offerings, more efficient and effective professional standards enforcement, and improved MLS systems (in some cases, resulting in a reduction of MLS fees). Increase the operating income for the association which may result in the hiring of a staff person to manage association operations and provide continuity from year to year.

29. REAL SOLUTIONS. REALTOR ® SUCCESS Arizona Association of REALTORS ® A stronger association can better sustain market fluctuations and can better cope with rising costs of operations One larger, stronger association provides the opportunity for wider recognition within the community and organized real estate

30. REAL SOLUTIONS. REALTOR ® SUCCESS Arizona Association of REALTORS ® Merger Analysis Questions Does the association: –Sufficiently represent REALTORS® and the industry before local and state legislative and regulatory bodies? –Have the resources to be financially viable? –Participate in REALTOR® Calls for Action, Broker Involvement Program and other REALTOR® advocacy efforts?

31. REAL SOLUTIONS. REALTOR ® SUCCESS Arizona Association of REALTORS ® More questions Does the association: –Take full advantage of the programs and services available from the State and National Associations? –Maintain complete, accurate, and ongoing membership, financial and legal records? –Have a Strategic Plan with a road map for the future?

32. REAL SOLUTIONS. REALTOR ® SUCCESS Arizona Association of REALTORS ® Chapter or Council Option What is a Chapter/Council? –A chapter is a subunit of an existing, chartered local association of REALTORS®, with that association of REALTORS® being the only chartered (or recognized) entity. A chapter may also be a subunit of a state association, but the geographic area formerly held by that chapter would be unassigned.

33. REAL SOLUTIONS. REALTOR ® SUCCESS Arizona Association of REALTORS ® Final Merger Considerations Financial Legal (recommend each association has own counsel) Merger Agreement Name of New Association (and chapter if one) Composition of new BOD Approval process (both associations and NAR)

34. REAL SOLUTIONS. REALTOR ® SUCCESS Arizona Association of REALTORS ® What is the structure? The structure, as well as the privileges and responsibilities of a chapter are determined locally as part of the merger negotiations Responsibilities should be spelled out with specificity in the "parent" association's bylaws/governing documents Use of the term REALTOR® in a chapter's name must be in connection with the parent organization (e.g. the XYZ Chapter of the ABC Association of REALTORS®).