AEC Advisory Boards and Committee Reports

CHAIR: Theresa Hatton, MA
VICE CHAIR: Tricia Thomas, CA
COMMITTEE LIAISON: Matt Difanis, IL
STAFF EXECUTIVE: Cindy Sampalis

Recommendations

1. That the Advocacy standard be modified to allow associations to satisfy one of the ‘Act’ requirements with Calls for Action, to repeat an event in multiple categories, and to satisfy the ‘Invest’ requirements by earning the Triple Crown Award.

Rationale: This revision ensures the association’s overarching advocacy strategies of Vote-Act-Invest are maintained and provides greater flexibility for associations in meeting the Advocacy requirements of the Core Standards.  The update also eliminates the penalty for missing national Calls for Action that can be infrequent with limited action time.  If this recommendation is approved, the Core Standard will be revised as follows (underscoring indicates additions, strikeouts indicate deletions):

II. Advocacy

1. Unless prohibited by state law and in recognition of state law differences, each association shall include in their dues billing a voluntary contribution for the PAC or the Political Advocacy Fund (PAF) in an amount adequate to meet any NAR established RPAC fundraising goals. Dues billing for PAC or PAF contributions has been proven to be the most effective method for raising PAC or PAF dollars and in engaging our members in political advocacy*. A local association will have met this Mandatory Core Standard, regardless of whether they collect the full amount of their NAR established goal, if they include the voluntary contribution on their dues bill.
   
   Notwithstanding the above, a local association that chooses not to include a PAC or PAF contribution on their dues bills, may, in the alternative, meet this Mandatory Core Standard if they deliver to NAR the full amount of any NAR established RPAC goal contributed by whatever legal means determined to be in the best interest of the local association (i.e., a corporate contribution in the full amount of the NAR established goal). In whatever manner the NAR established RPAC goal is met, funds shall be sent to RPAC or the PAF individually or collectively by/through the State Association (i.e., one check concept). The intent of this standard is to provide the best opportunity for every association to meet its goal.
   
   *Unless prohibited by state law, it is recommended that to reach the highest participation levels possible, each local association include the contribution to either the PAC or the PAF "above the line" with appropriate disclaimers about the voluntary nature of the member contribution.
2. Each association shall provide or distribute information and communications from NAR and the applicable state association, regarding the value of investing in and the benefits received from the individual's participation in the PAC.
3. Each association is encouraged to participate in NAR Calls for Action (e.g., promotion through websites, newsletters, office visits, etc.) and provide adequate proof of participation.
4. Each local association is encouraged to participate in State Calls for Action (e.g., promotion through websites, newsletters, office visits, etc.). It is the local association's obligation to provide adequate proof of participation.
5. . In addition to the requirements established in subsections A-D, each association must support the REALTOR® Party's "Vote-Act-Invest" goals, and must annually conduct at least two initiatives or activities furthering or supporting each of those three goals respectively. Examples of initiatives and activities satisfying this requirement are available on NAR's online Certification Form and in the Core Standards Frequently Asked Questions ("FAQs") and in the REALTOR® Party Resource Guide.
   
   Associations can meet the existing Advocacy requirement for ‘Act’ under the REALTOR® Party goals through activities that demonstrate a commitment to Diversity, Equity, and Inclusion and Fair Housing.  Note, this is not an added requirement, but just another way to meet the existing Advocacy requirements.
   
   Associations that earn Triple Crown for the previous year will meet the existing Advocacy requirement for ‘Invest’.
6. Associations must conduct or promote a diversity, equity and inclusion activity and a fair housing activity. Possible options for completing this standard include the following:
   • Measure and assess diversity in the association membership and develop an actionable roadmap for local association DEI; NAR has a new Insights Hub tool to help with this process.
   • Conduct or promote fair housing training.
   • Conduct or promote an At Home with Diversity (AHWD®) course.
   • Conduct or promote implicit bias training (e.g., NAR’s implicit bias video).
   • Form a Diversity Committee or a Fair Housing Committee.

This recommendation may have financial impact on board or state associations: No
This recommendation has been reviewed by: N/A

2. That the various options for meeting the Consumer Outreach standard requirements be consolidated, and that the requirements for ‘Being the Voice for Real Estate’ and ‘Community Involvement and Investment’  be reduced from two initiatives to one initiative per category.

Rationale: The requirements of this standard were streamlined to allow associations greater flexibility with meeting the Consumer Outreach requirements of the Core Standards and reorganized for greater clarity and understanding.  If this recommendation is approved, the Core Standard will be revised as follows (underscoring indicates additions, strikeouts indicate deletions):

III. Consumer Outreach

1. Every association will demonstrate engagement in at least two meaningful consumer outreach/engagement activities annually, including at least one activity demonstrating how the association is the "Voice for Real Estate" in its market, and at least one activity demonstrating the association's “Community Involvement and Investment.” To meet this requirement, an association may not use the same activity more than once and any activity may only be submitted in one category.
   1. Being the “Voice for Real Estate” 
      • Promote market statistics and/or real estate trends and issues (e.g., press releases, interviews, social media posts, etc.). Content may consist of (these are examples, not an exclusive list):
        • MLS statistics, local market statistics, NAR research reports, local/state analysis of NAR statistics; 
        • Collateral from (for example) NAR’s Consumer Advertising Campaign, NAR Media, NAR Research accounts, realtor.com, HouseLogic, RPR.
      • Effectively communicate the value proposition of using a REALTOR® in the real estate transaction.
   2. “Community Involvement and Investment” – Engage in community activities that enhance the image of the REALTOR® (e.g., participate in an activity or conduct fundraising to benefit local community or charitable organizations).
2. Community involvement and investment -- promoting the value proposition of using a REALTOR® and/or engaging in community activities which enhance the image of the REALTOR®, such as organizing human resources (e.g., participating in a Habitat for Humanity build) or conducting fundraising activities to benefit local community or charitable organizations.

This recommendation may have financial impact on board or state associations: No
This recommendation has been reviewed by: N/A

3. That the Unification Efforts and Support of the REALTOR® Organization standard be expanded to include additional items pertaining to policies, training, a commitment to Diversity, Equity, and Inclusion and Fair Housing, and value proposition communication, and that this standard be renamed Governance, Operations and Training.

Rationale: This standard was expanded to ensure an association’s commitment to strong and effective volunteer leaders with added training and a Leadership Code of Conduct, along with support for DEI and Fair Housing, and a strong value proposition that is communicated to members.  The Core Standard was renamed Governance, Operations and Training to more accurately and succinctly depict its focus.  If this recommendation is approved, the Core Standard will be revised as follows (underscoring indicates additions, strikeouts indicate deletions):

IV. Governance, Operations and Training

1. Every association will maintain, have access to or will have legal counsel available.
2. Associations shall adopt and maintain corporate documents, policies and procedures that conform to local, state and federal laws. Associations will timely file legally required reports and documents (e.g., corporate renewal documents, state and federal tax returns, etc.).
3. Every association shall annually certify that its board of directors has reviewed and discussed the association’s business or strategic plan, that the plan includes an advocacy component, a consumer outreach component, a Diversity, Equity and Inclusion (DEI) component, and a Fair Housing component, and that those components have actionable implementation strategies.
4. Local and state association chief staff must complete at least six hours of REALTOR® association professional development on an annual basis. In associations without paid/salaried staff, this requirement is applicable to the individual primarily responsible for performing the functions ordinarily carried out by paid staff in other associations.
5. Associations will promote to their members the importance of participating in any NAR–conducted effort to assess member understanding of the overall value provided by associations at all three levels of the REALTOR® organization.
6. Associations must annually offer, promote, or provide at least one professional development opportunity for their members.
7. Associations must annually certify they have conducted or promoted a REALTOR® Safety activity.
8. Associations will annually provide resources for or access to leadership development education and/or training for their elected REALTOR® leaders, including:
   • Assessment and encouragement of DEI;
   • Education, understanding and awareness of the Core Standards;
   • Understanding of the roles and responsibilities of staff and volunteer leaders as outlined in the President/Chief Staff Executive Checklist.
     Associations will document the training, tools, programs, and resources to which they offer or provide access.
9. Associations with paid staff must adopt policies and procedures for conducting annual performance reviews of their chief paid staff, and must annually certify that a performance review for their chief paid staff has been conducted.
10. Associations must identify their leadership policies concerning antitrust, harassment, conflict of interest, confidentiality, Code of Conduct, whistleblower, etc., and upload them to the Core Standards Certification Form.
    
    Associations will offer annual training of no less than 1 hour on the above-mentioned policies for elected officers and the Board of Directors.
11. Associations will demonstrate a commitment to Diversity, Equity, and Inclusion and Fair Housing.
12. Associations will confirm they offer or promote Fair Housing training for their members and track compliance.
13. Associations will confirm they are effectively communicating their value proposition to their members.

This recommendation may have financial impact on board or state associations: No
This recommendation has been reviewed by: N/A

4. That the Technology standard no longer remain a separate standard, and that its requirements be expanded to include member communication, membership record updates in M1, virtual meeting options, and cybersecurity requirements, and that the technology requirements be added to the renamed Governance, Operations and Training section.

Rationale: The updated requirements reflect current technological needs and enhance association operations, which are expanded to include virtual access for governance, training, and services.  Given the ever-increasing number of cyberattacks and ransomware incidents, the updates will ensure associations continue to prioritize protecting member and staff data.  If this recommendation is approved, the Core Standard will be revised as follows (underscoring indicates additions, strikeouts indicate deletions):

V. Technology

1. Every Association will effectively communicate with its membership. B. Every association will acknowledge that membership records in M1 are updated within one week of receipt.
2. Every association will have the capability to provide services to members virtually.
3. Every association will maintain a cybersecurity policy to protect member and staff data.

This recommendation may have financial impact on board or state associations: No
This recommendation has been reviewed by: N/A

5. That the Financial Solvency standard be revised to increase the annual gross revenue threshold that triggers an accountant’s review or audit from $50,000 to $200,000, and that associations with annual gross revenue of less than $200,000 are permitted to meet the standard using a compilation report.

Rationale: This update aligns with the IRS guidelines for Form 990, which is for organizations with gross receipts more than $200,000 and can relieve the financial burden for some associations while retaining the strength of this essential Core Standard which protects the association’s finances.  If this recommendation is approved, the Core Standard will be revised as follows (underscoring indicates additions, strikeouts indicate deletions):

Vi. Financial Solvency

1. Every association must adopt policies to ensure the fiscal integrity of their financial operations.
2. All local associations with revenue of more than $200,000 must annually submit a report from a CPA which includes either an audit opinion or an accountant's review report. Associations with annual gross revenues of up to $200,000 (including MLS-generated revenues and revenues from other business subsidiaries) are permitted to meet the standard using a compilation report. State and national dues and assessment amounts are not considered to be revenue for purposes of this measurement. These thresholds apply to all associations whether tax exempt or for profit. It will be left to the discretion of each association as to the frequency of an audit versus a review, recognizing that the costs of each type of engagement vary greatly.
3. Any association considering bankruptcy must first obtain NAR's consent to file for bankruptcy. To the extent permitted by law, any association that declares bankruptcy will be subject to automatic charter review.

This recommendation may have financial impact on board or state associations: No
This recommendation has been reviewed by: N/A

The following is reported for your information only and does not affect Association policy or budget.

1. AE Institute Advisory Board – The advisory board reviewed the 2024 AE Institute overall evaluation results, which led to a brainstorm discussion of the curriculum for the 2025 AE Institute, March 18-21, in Denver.  The advisory board is considering a new learning format that builds each day’s curriculum around a central theme, delivering the same content and messaging to all attendees, with complementing breakout sessions/workshops according to association size.  Planning for the 2025 Institute will continue during virtual meetings and a live planning session in Chicago this August.
2. Association Diversity Advisory Board – The advisory board is focusing on the following initiatives this year:  providing guidance for associations in incorporating sustainable DEI objectives into their strategic plans; recommending enhancements to the Actionable Roadmap; creating DEI messaging and resources. 
3. Recommendations and Recognition Advisory Board -- The advisory board conducted interviews for the 2025 AEC vice chair position and presented two candidates to the NAR First Vice President for his consideration.  The applicant will be announced by the end of May.
4. Volunteer Leadership Advisory Board – The advisory board reviewed themed leadership academy program agendas, as it works toward development of a leadership academy toolkit. The advisory board is also reviewing the president profiles that are part of the REALTOR® Association Models Planning Tool to develop profiles that provide greater clarity in defining staff and volunteer leadership roles and responsibilities. 
5. Governance Models Work Group – The work group is charged with identifying various governance models that local and state associations can consider to best guide volunteer and staff leadership teams as they work together to advance their organization’s mission and goals.  In this process they are looking at collecting information on typical governance models; considerations for defining and creating a governance structure; governance structures outside the REALTOR® family; and models and resources that exist within NAR.
6. AEC/Leadership Development Track Work Group – The work group is tasked with evaluating REALTOR® association education program options that can be developed to offer continuous learning opportunities and create leadership communities for local and chief staff executives. The work group identified the following three focus areas to be explored:  AE Mentor Program, leadership development online education and resources, and a potential AE Leadership Academy.
7. The RCE Certification Board conducted a comprehensive review of the RCE Applicant Data Form (ADF) and recommended minor modifications to the form.  

The following AEs represent the most recent “class” of RCE designees, and they will be formally recognized at the 2025 AE Institute in Denver:

Veronica Cardello, RCE, Ohio Association of REALTORS®
Lauren Cooley, RCE, Fredericksburg Area Association of REALTORS®, VA
Meredith Ford, RCE, Lynchburg Association of REALTORS®, VA
Tina Franklin, RCE, Kankakee-Iroquois-Ford Association of REALTORS®, IL
Marie Hansch, RCE, Seattle King County Association of REALTORS®, WA
Erin Herzog, RCE, Greater Providence Board of REALTORS®, RI
Kenzie Honey, RCE, Abilene Association of REALTORS®, TX
Danielle Jacob, RCE, Howard County Association of REALTORS®, MD
Jim McMillen, RCE, Pensacola Association of REALTORS®, FL
Connor Miller, RCE, Aspire North REALTORS®, MI
Brad Mock, RCE, Georgia Association of REALTORS®
Jeri Moon, RCE, Northwest Montana Association of REALTORS®
Amy Reid, RCE, Vail Board of REALTORS®, CO
Ramona Ruskuls, RCE, Mainstreet Organization of REALTORS®, IL
Joey Sale, RCE, Bright MLS, MD
Anne-Marie Siudzinski, RCE, National Association of REALTORS®, IL
Christy Slaton, RCE, Atlanta REALTORS® Association, GA
George Smith, RCE, Commercial Association of REALTORS®, NM
Lori Versele, RCE, Hinesville Area Board of REALTORS®, GA
Meghan Weinreich, RCE, Charleston Trident Association of REALTORS®, SC

Monday, May 6, 2024 | 10:30am - 12:30pm EST

CHAIR: Theresa Hatton (MA)

VICE CHAIR: Tricia Thomas (CA)

COMMITTEE LIAISON: Matt Difanis (IL)

STAFF EXECUTIVE: Cindy Sampalis (IL)

CALL TO ORDER/OPENING REMARKS:
Chair Theresa Hatton, RCE, welcomed everyone to the meeting and introduced Vice Chair Tricia Thomas, RCE, 2024 Association Leadership Liaison Matt Difanis, and NAR staff Katie Johnson, Cindy Sampalis, Renee Holland, Cynthia Bair, and new team member Tedd McTee. She reminded the audience that the AEC / Forum is open to all AEs and that an option to participate virtually was offered, so some attendees will join via Zoom.

Hatton asked everyone to turn their attention to the screen to see NAR’s Conflict of Interest Policy, NAR’s Commitment to Antitrust Compliance statement, and NAR’s Campaign Guidelines. Lastly, she encouraged all to continue to speak the truth and facts by utilizing facts.realtor and competition.realtor.

APPROVAL OF PREVIOUS MEETING MINUTES:
There being no changes to the minutes, the minutes were approved as posted.

AEC GOALS:
Chair Hatton noted that the 2024 committee goals align with the 2024 work groups and work group chairs will provide updates later in the meeting.

NAR UPDATE:
Interim CEO Nykia Wright provided an update on the proposed settlement agreement and NAR’s efforts to move the association forward. She also addressed association culture and integration of the Culture Transformation Commission’s work. Wright then welcomed Suzanne Bouhia, NAR Chief Marketing Officer, who provided an overview of NAR’s Media Surrogate Program.

AE RECOGNITION:
The following retiring AEs were recognized and asked to come forward for a photograph with AEC Chair Theresa Hatton. A congratulatory letter will be mailed to each retiree along with the photograph:

• Amy Bockman, RCE, CEO of the Black Hills Association of REALTORS® (SD), is retiring in May after 23 years with the REALTOR® association.
• Zan Monroe, CEO of the Longleaf Pine Association of REALTORS® (NC), is retiring at the end of the year after 25 years with the REALTOR® association.
• Cora Baker, RCE, CAE, CEO of the Smyrna Beach Board of REALTORS® (FL), is retiring in May after 19 years with the REALTOR® association.
• Vicki Heebner, RCE, CEO of the Ocean City Board of REALTORS® (NJ), is retiring in May after 12 years with the REALTOR® association.
• Candy Joyce, RCE, CAE, CEO of the Middle Tennessee Association of REALTORS®, retired in March after 30 years with the REALTOR® association.
• Deb Junkin, RCE, CEO of the Georgia Association of REALTORS®, retired in December 2023 after 25 years with the REALTOR® association.

RCE Emeritus status was granted to:

• Karen Gehle, RCE, CAE, CEO of the Kansas Association of REALTORS®, is retiring in June 2024 after 40 years with the REALTOR® association, having held the RCE designation for 20 years.
• Dale Zahn, RCE, CEO of the West Michigan Lakeshore Association, retired in April 2024 after 33 years in REALTOR® association management, after holding the RCE designation for 28 years.

RCE Advisory Board Chair Sarah Rayne, RCE, CAE, announced the most recent “class” of designees who will be formally recognized at the 2025 AE Institute in Denver:

• Veronica Cardello, RCE, Ohio Association of REALTORS®
• Lauren Cooley, RCE, Fredericksburg Area Association of REALTORS® (VA)
• Meredith Ford, RCE, Lynchburg Association of REALTORS® (VA)
• Tina Franklin, RCE, Kankakee-Iroquois-Ford Association of REALTORS® (IL)
• Marie Hansch, RCE, Seattle King County Association of REALTORS® (WA)
• Erin Herzog, RCE, Greater Providence Board of REALTORS® (RI)
• Kenzie Honey, RCE, Abilene Association of REALTORS® (TX)
• Danielle Jacob, RCE, Howard County Association of REALTORS® (MD)
• Jim McMillen, RCE, Pensacola Association of REALTORS® (FL)
• Connor Miller, RCE, Aspire North REALTORS® (MI)
• Brad Mock, RCE, Georgia Association of REALTORS®
• Jeri Moon, RCE, Northwest Montana Association of REALTORS®
• Amy Reid, RCE, Vail Board of REALTORS® (CO)
• Ramona Ruskuls, RCE, Mainstreet Organization of REALTORS® (IL)
• Joey Sale, RCE, Bright MLS (MD)
• Ann-Marie Siudzinski, RCE, National Association of REALTORS® (IL)
• Christy Slaton, RCE, Atlanta REALTORS® Association (GA)
• George Smith, RCE, Commercial Association of REALTORS® New Mexico
• Lori Versele, RCE, Hinesville Board of REALTORS® (GA)
• Meghan Weinreich, RCE, Charleston, Trident Association of REALTORS® (SC)

AEC ADVISORY BOARD REPORTS:
AE Institute Advisory Board
Chair Brendan Bailey, RCE, reported that the advisory board reviewed the 2024 AE Institute overall evaluation results, which led to a brainstorm discussion of the curriculum for the 2025 AE Institute, March 18-21, in Denver. The advisory board is considering a new learning format that builds each day’s curriculum around a central theme, delivering the same content and messaging to all attendees, with complementing breakout sessions/workshops according to association size. Planning for the 2025 Institute will continue during virtual meetings and a live planning session in Chicago this August.

Association Diversity Advisory Board
Chair Christina Smalls, RCE, reported that the advisory board is focusing on the following initiatives this year: providing guidance for associations in incorporating sustainable DEI objectives into their strategic plans; recommending enhancements to the Actionable Roadmap; creating DEI messaging and resources.

RCE Designation Advisory Board
Chair Sarah Rayne, RCE, reported that the RCE Certification Board conducted a comprehensive review of the RCE Applicant Data Form (ADF) and recommended minor modifications to the form.

Recommendations and Recognition Advisory Board
Chair Jarrod Grasso, RCE, reported that the advisory board conducted interviews for the 2025 AEC vice chair position and presented two candidates to the NAR First Vice President for his consideration. The applicant will be announced by the end of May.

Volunteer Leadership Development Advisory Board
Chair Michael Jacques reported that the advisory board reviewed themed leadership academy program agendas, as it works toward development of a leadership academy toolkit. The advisory board is also reviewing the president profiles that are part of the REALTOR® Association Models Planning Tool to develop profiles that provide greater clarity in defining staff and volunteer leadership roles and responsibilities.

AEC WORK GROUP REPORTS:
Governance Models Work Group
Chair Deb Haines-Kulick, RCE, CAE, reported that the work group is charged with identifying various governance models that local and state associations can consider to best guide volunteer and staff leadership teams as they work together to advance their organization’s mission and goals. In this process they are looking at collecting information on typical governance models; considerations for defining and creating a governance structure; governance structures outside the REALTOR® family; and models and resources that exist within NAR.

Leadership Development Track Work Group
Chair Ryan Swinney, RCE reported that the work group is tasked with evaluating REALTOR® association education program options that can be developed to offer continuous learning opportunities and create leadership communities for local and state chief staff executives. The work group identified the following three focus areas to be explored: AE Mentor Program, leadership development online education and resources, and a potential AE Leadership Academy.

Reimagine Core Standards Work Group
Chair Travis Kessler, RCE, CAE, and Vice Chair Katie Shotts, RCE, presented five recommendations for approval The following MOTIONS were made, seconded, and carried:

That the Advocacy standard be modified to allow associations to satisfy one of the ‘Act’ requirements with Calls for Action, to repeat an event in multiple categories, and to satisfy the ‘Invest’ requirements by earning the Triple Crown Award.

Rationale: This revision ensures the association’s overarching advocacy strategies of Vote-Act-Invest are maintained and provides greater flexibility for associations in meeting the Advocacy requirements of the Core Standards.

The update also eliminates the penalty for missing national Calls for Action that can be infrequent with limited action time.

II. Advocacy

1. Unless prohibited by state law and in recognition of state law differences, each association shall include in their dues billing a voluntary contribution for the PAC or the Political Advocacy Fund (PAF) in an amount adequate to meet any NAR established RPAC fundraising goals. Dues billing for PAC or PAF contributions has been proven to be the most effective method for raising PAC or PAF dollars and in engaging our members in political advocacy*. A local association will have met this Mandatory Core Standard, regardless of whether they collect the full amount of their NAR established goal, if they include the voluntary contribution on their dues bill.
   
   Notwithstanding the above, a local association that chooses not to include a PAC or PAF contribution on their dues bills, may, in the alternative, meet this Mandatory Core Standard if they deliver to NAR the full amount of any NAR established RPAC goal contributed by whatever legal means determined to be in the best interest of the local association (i.e., a corporate contribution in the full amount of the NAR established goal). In whatever manner the NAR established RPAC goal is met, funds shall be sent to RPAC or the PAF individually or collectively by/through the State Association (i.e., one check concept). The intent of this standard is to provide the best opportunity for every association to meet its goal.
   
   *Unless prohibited by state law, it is recommended that to reach the highest participation levels possible, each local association include the contribution to either the PAC or the PAF "above the line" with appropriate disclaimers about the voluntary nature of the member contribution.


2. Each association shall provide or distribute information and communications from NAR and the applicable state association, regarding the value of investing in and the benefits received from the individual's participation in the PAC.
3. Each association is encouraged to participate in NAR Calls for Action (e.g., promotion through websites, newsletters, office visits, etc.) and provide adequate proof of participation.
4. Each local association is encouraged to participate in State Calls for Action (e.g., promotion through websites, newsletters, office visits, etc.). It is the local association's obligation to provide adequate proof of participation.
5. . In addition to the requirements established in subsections A-D, each association must support the REALTOR® Party's "Vote-Act-Invest" goals, and must annually conduct at least two initiatives or activities furthering or supporting each of those three goals respectively. Examples of initiatives and activities satisfying this requirement are available on NAR's online Certification Form and in the Core Standards Frequently Asked Questions ("FAQs") and in the REALTOR® Party Resource Guide.
   
   Associations can meet the existing Advocacy requirement for ‘Act’ under the REALTOR® Party goals through activities that demonstrate a commitment to Diversity, Equity, and Inclusion and Fair Housing.  Note, this is not an added requirement, but just another way to meet the existing Advocacy requirements.
   
   Associations that earn Triple Crown for the previous year will meet the existing Advocacy requirement for ‘Invest’.


6. Associations must conduct or promote a diversity, equity and inclusion activity and a fair housing activity. Possible options for completing this standard include the following:
   • Measure and assess diversity in the association membership and develop an actionable roadmap for local association DEI; NAR has a new Insights Hub tool to help with this process.
   • Conduct or promote fair housing training.
   • Conduct or promote an At Home with Diversity (AHWD®) course.
   • Conduct or promote implicit bias training (e.g., NAR’s implicit bias video).
   • Form a Diversity Committee or a Fair Housing Committee.

That the various options for meeting the Consumer Outreach standard requirements be consolidated, and that the requirements for ‘Being the Voice for Real Estate’ and ‘Community Involvement and Investment’ be reduced from two initiatives to one initiative per category.

Rationale: The requirements of this standard were streamlined to allow associations greater flexibility with meeting the Consumer Outreach requirements of the Core Standards and reorganized for greater clarity and understanding.

III. Consumer Outreach

1. Every association will demonstrate engagement in at least two meaningful consumer outreach/engagement activities annually, including at least one activity demonstrating how the association is the "Voice for Real Estate" in its market, and at least one activity demonstrating the association's “Community Involvement and Investment.” To meet this requirement, an association may not use the same activity more than once and any activity may only be submitted in one category.
   1. Being the “Voice for Real Estate” 
      • Promote market statistics and/or real estate trends and issues (e.g., press releases, interviews, social media posts, etc.). Content may consist of (these are examples, not an exclusive list):
        • MLS statistics, local market statistics, NAR research reports, local/state analysis of NAR statistics; 
        • Collateral from (for example) NAR’s Consumer Advertising Campaign, NAR Media, NAR Research accounts, realtor.com, HouseLogic, RPR.
      • Effectively communicate the value proposition of using a REALTOR® in the real estate transaction.
2. “Community Involvement and Investment” – Engage in community activities that enhance the image of the REALTOR® (e.g., participate in an activity or conduct fundraising to benefit local community or charitable organizations).

That the Unification Efforts and Support of the REALTOR® Organization standard be expanded to include additional items pertaining to policies, training, a commitment to Diversity, Equity, and Inclusion and Fair Housing, and value proposition communication, and that this standard be renamed Governance, Operations and Training.

Rationale: This standard was expanded to ensure an association’s commitment to strong and effective volunteer leaders with added training and a Leadership Code of Conduct, along with support for DEI and Fair Housing, and a strong value proposition that is communicated to members. The Core Standard was renamed Governance, Operations and Training to more accurately and succinctly depict its focus.

IV. Governance, Operations and Training

1. Every association will maintain, have access to or will have legal counsel available.
2. Associations shall adopt and maintain corporate documents, policies and procedures that conform to local, state and federal laws. Associations will timely file legally required reports and documents (e.g., corporate renewal documents, state and federal tax returns, etc.).
3. Every association shall annually certify that its board of directors has reviewed and discussed the association’s business or strategic plan, that the plan includes an advocacy component, a consumer outreach component, a Diversity, Equity and Inclusion (DEI) component, and a Fair Housing component, and that those components have actionable implementation strategies.
4. Local and state association chief staff must complete at least six hours of REALTOR® association professional development on an annual basis. In associations without paid/salaried staff, this requirement is applicable to the individual primarily responsible for performing the functions ordinarily carried out by paid staff in other associations.
5. Associations will promote to their members the importance of participating in any NAR–conducted effort to assess member understanding of the overall value provided by associations at all three levels of the REALTOR® organization.
6. Associations must annually offer, promote, or provide at least one professional development opportunity for their members.
7. Associations must annually certify they have conducted or promoted a REALTOR® Safety activity.
8. Associations will annually provide resources for or access to leadership development education and/or training for their elected REALTOR® leaders, including:
   • Assessment and encouragement of DEI;
   • Education, understanding and awareness of the Core Standards;
   • Understanding of the roles and responsibilities of staff and volunteer leaders as outlined in the President/Chief Staff Executive Checklist.
     Associations will document the training, tools, programs, and resources to which they offer or provide access.
9. Associations with paid staff must adopt policies and procedures for conducting annual performance reviews of their chief paid staff, and must annually certify that a performance review for their chief paid staff has been conducted.
10. Associations must identify their leadership policies concerning antitrust, harassment, conflict of interest, confidentiality, Code of Conduct, whistleblower, etc., and upload them to the Core Standards Certification Form.
    
    Associations will offer annual training of no less than 1 hour on the above-mentioned policies for elected officers and the Board of Directors.
     
11. Associations will demonstrate a commitment to Diversity, Equity, and Inclusion and Fair Housing.
12. Associations will confirm they offer or promote Fair Housing training for their members and track compliance.
13. Associations will confirm they are effectively communicating their value proposition to their members.

That the Technology standard no longer remain a separate standard, and that its requirements be expanded to include member communication, membership record updates in M1, virtual meeting options, and cybersecurity requirements, and that the technology requirements be added to the renamed Governance, Operations and Training section.

Rationale: The updated requirements reflect current technological needs and enhance association operations, which are expanded to include virtual access for governance, training, and services. Given the ever-increasing number of cyberattacks and ransomware incidents, the updates will ensure associations continue to prioritize protecting member and staff data.

V. Technology

1. Every Association will effectively communicate with its membership.
2. Every association will acknowledge that membership records in M1 are updated within one week of receipt.
3. Every association will have the capability to provide services to members virtually.
4. Every association will maintain a cybersecurity policy to protect member and staff data.

That the Financial Solvency standard be revised to increase the annual gross revenue threshold that triggers an accountant’s review or audit from $50,000 to $200,000, and that associations with annual gross revenue of less than $200,000 are permitted to meet the standard using a compilation report.

Rationale: This update aligns with the IRS guidelines for Form 990, which is for organizations with gross receipts more than $200,000 and can relieve the financial burden for some associations while retaining the strength of this essential Core Standard which protects the association’s finances.

Vi. Financial Solvency

1. Every association must adopt policies to ensure the fiscal integrity of their financial operations.
2. All local associations with revenue of more than $200,000 must annually submit a report from a CPA which includes either an audit opinion or an accountant's review report. Associations with annual gross revenues of up to $200,000 (including MLS-generated revenues and revenues from other business subsidiaries) are permitted to meet the standard using a compilation report. State and national dues and assessment amounts are not considered to be revenue for purposes of this measurement. These thresholds apply to all associations whether tax exempt or for profit. It will be left to the discretion of each association as to the frequency of an audit versus a review, recognizing that the costs of each type of engagement vary greatly.
3. Any association considering bankruptcy must first obtain NAR's consent to file for bankruptcy. To the extent permitted by law, any association that declares bankruptcy will be subject to automatic charter review.

All of the recommendations were approved by the AEC and the Executive Committee. The changes will be implemented with the 2025 Core Standards cycle.

OPEN DISCUSSION:
Chair Hatton engaged the committee in an open discussion and asked them to share their experiences on how they’re communicating their association’s value to members.

AEC REPRESENTATIVE REPORTS:
Vice Chair, Tricia Thomas invited the following AEC committee representatives to provide updates:

• Consumer Communications Committee - Maria Flaks
  Shared resources provided by NAR regarding the value of buyer agency.
• Professional Standards Interpretations and Procedures Advisory Board - Carla Rose, RCE
  Provided updates on the amendment of the Code of Ethics: Article 4, including new SOP 4-2, as submitted from the PS Interpretations and Procedures Advisory Board after it was sent back to the committee following the November 17, 2023, recommendation from the Board of Directors and Delegate Body.
• Housing Opportunities Committee - Katie Shotts, RCE
  Shared that the Diversity, Fair Housing Policy and Housing Opportunities Committees held a joint listening session on April 26, 2024, to discuss solutions for supporting disadvantaged buyers in a post settlement environment.

REALTOR.COM UPDATE:
Bob Evans, Vice President, Industry Relations, Realtor.com, reported that Realtor.com stands with REALTORS® by promoting buyer’s agency through:

• Reshaping the conversation around agent representation
  • With a single campaign that reminds everyone what buyer representation is all about appearing in the Wall Street Journal, New York Post, and The U.S. Sun.
  • Recent op-eds from Realtor.com CEO Damian Eales in the Wall Street Journal.
• A Buyer Agent Toolkit

CULTURE TRANSFORMATION COMMISSION UPDATE:
Michelle Mills Clement, RCE, CAE, Tri-Chair, Culture Transformation Commission and Ryan Davis, Vice President, Diversity, Equity and Inclusion, provided an update on the commission’s process and progress to date, an overview of the common themes that are guiding the commission’s work, day, and a look forward to next steps. The commission refers all comments and questions to culture@nar.realtor.

ADJOURNMENT:
There being no further business to come before the committee, the meeting was adjourned.