NAR Board of Directors Approves Pro Standards Recommendations, New MLS & Core Standards Policies
Louisiana REALTORS • November 16, 2020
Source: National Association of REALTORS
Directors Take Strong Action to Curb Hate Speech
The National Association of REALTORS® Board of Directors took historic action today to strengthen REALTORS®’ commitment to fair housing. Directors approved recommendations to:
Learn More About the Professional Standards Changes
- Extend the application of Article 10 of the Code of Ethics through the addition of a new Standard of Practice prohibiting the use of harassing speech, hate speech, epithets, or slurs against the protected classes.
- Amend professional standards policy, expanding the applicability of the Code of Ethics to all of a REALTOR®’s activities.
- Add guidance to the Code of Ethics and Arbitration Manual to help professional standards hearing panels apply the new Standard of Practice.
- Revise the NAR Bylaws, expanding the definition of “public trust” to include all discrimination against the protected classes under Article 10 along with all fraud.
- Continue the requirement for associations to share with the state real estate licensing authority final ethics decisions holding REALTORS® in violation of the Code of Ethics in instances involving real estate–related activities and transactions where there is reason to believe the public trust may have been violated.
The recommendations came from the Professional Standards Committee but were also formally supported by the Diversity, Fair Housing Policy, Professional Development, and Membership Policy and Board Jurisdiction committees before going before the Board of Directors. NAR has produced training and resource materials to assist leaders with understanding and implementing the changes and will be rolling those out in the coming weeks.
The changes are effective immediately; however, they are not retroactive to speech or conduct that occurred before the effective date.
New MLS Changes
Directors also approved a series of recommendations aimed at bringing more consistent standards to REALTOR®-owned MLSs across the country. Among other things, the rules require participants to correct accuracies in their MLS listings, and require MLSs to put processes in place to flag potential fair housing violations and notify brokers so the language can be corrected. The new rules go into effect Jan. 1, 2021, and the local implementation deadline is March 1, 2021.
Core Standards Changes
Directors approved five amendments to the association Core Standards requirements to:
- Acknowledge that associations may meet the existing advocacy and consumer outreach requirements through activities that demonstrate a commitment to diversity, equity and inclusion, and fair housing.
- Require that association strategic plans include a diversity, equity and inclusion, and a fair housing component.
- Require associations to annually certify that they have conducted or promoted a diversity, equity and inclusion, and fair housing activity with options that take into consideration association membership size and diversity.
- Require that leadership development education/training for association volunteer leadership include a commitment to greater diversity, equity, and inclusion; increase leadership education and awareness of the Core Standards; and ensure greater understanding of staff and volunteer leadership roles and responsibilities.
- Require associations to have the ability to interact with members in a remote work environment via a virtual meeting platform.
Other Policy Decisions
In other actions, the directors:
- Approved a policy recommending a new leadership structure for the Federal Housing Finance Agency, consisting of a bipartisan, five-person panel with panel members appointed by the president and confirmed by the Senate.
- Approved tax policies that would:
- Bring relief for homeowners who are discouraged from selling their home because of the tax burden that would result from the current capital gains tax rules. The current rules exacerbate housing inventory shortages and force people to stay in a home even when it no longer meets their needs.
- Lower the barriers to the creation of more residential For Sale inventory. Examples of such incentives: tax credits for converting commercial properties to residential units and tax credits for training or hiring residential construction workers.
- Approved a number of changes to NAR’s land use, property rights, and environment policy positions, including streamlining and modernizing language on global climate change to emphasize the risk to real estate and sustainability.
Vetting Officer Candidates
Directors approved a recommendation to establish a process for conducting a social media audit as part of the process of reviewing Potential Candidates for NAR office.
Treasurer’s Reports
NAR Treasurer John Flor reported that membership in the association has hit an all-time high, surpassing the previous record set in 2007, and projected 1,424,000 paid members by the end of 2020. While non-dues revenue is off projections by about $10 million, it is more than made up by cost savings achieved through a hiring freeze, reduced travel as a result of the pandemic, and other measures. Flor also reported that the association has provided $25.5 million in programming to members through the Right Tools, Right Now program.
Directors approved an action item requiring NAR’s Advocacy team to have about $6.5 million in reserves set aside. This is in addition to association’s required operating reserves, which are set at a minimum of 50% of the operating budget and targeted at 70% of the budget.
Governance PAG Report
Sharon Millett, chair of the Governance Game Changer Presidential Advisory Group, gave directors a status report on her group’s work. The group was appointed in 2018 with a three-year charge of looking at the governance structure and policies of NAR. Millett, who served as NAR president in 1999, said the PAG will bring structural change recommendations forward in 2021.
REALTORS® Honored
At the meeting, NAR Directors honored 2020 Distinguished Service Award winners Diana Bull of Santa Barbara, Calif., and Michael Ford of West Memphis, Ark.
This week, the Legislature remained in high gear, and several items relevant to Louisiana’s real estate market moved into focus. The biggest headline for our industry this week was HB 468 by Rep. Troy Hebert , our wholesaling/consumer-protection bill, was slated to be heard on the House floor, however was bumped due to floor congestion and out-of-order bills. It is now expected to be reset for next Tuesday. This bill remains one of the clearest “market integrity” efforts on the board with clearer rules for non-traditional transactions, stronger transparency and better consumer protections. We also continued substantive policy work behind the scenes. We are actively engaging with Rep. Carver on a vacant land disclosure bill he has authored, and we appreciate that he is welcoming our input and guidance as the language is refined. Our goal is straightforward: ensure any vacant land disclosure framework is practical, reduces confusion and avoids unintentionally shifting liability or enforcement burdens onto real estate professionals. In addition, we were pleased to deepen our relationships at the Capitol this week. We had the privilege of hosting a lunch for the Governor’s Office, enjoyed meeting Governor Landry’s team, and look forward to working with them in a constructive, solutions-oriented manner as the session continues. Finally, Rep. Hebert also filed an additional measure that aligns with our legislative agenda and speaks directly to transaction risk management: HB 1027 , which would limit liability for licensed real estate appraisers in situations involving smoke and carbon monoxide detector compliance. The current law already provides that real estate agents are not liable for a seller’s failure to comply with Louisiana’s detector requirements in one- or two-family dwellings. HB 1027 would extend that same liability protection to licensed appraisers by amending R.S. 40:1581(F). This is a clean, common-sense clarification that helps prevent appraisers from being pulled into compliance disputes that properly belong with the seller’s statutory obligations. Next week, committees are scheduled to hear multiple bills relevant to real estate, including measures involving construction and roofing standards (often tied to insurance and mitigation), property rights/expropriation, and property tax and adjudicated property issues that can influence housing supply and neighborhood reinvestment. We will stay closely engaged and will flag any bills or amendments that materially affect transactions, homeownership costs or private property rights. Please view the weekly bill tracking report provided by our lobbying team over at Harris, DeVille and Associates.
Louisiana REALTORS® is compiling a cookbook of Louisiana flavor with a REALTOR® heart in support of the REALTORS® Relief Foundation . And we have two ways for you to get involved: Join us in contributing your favorite recipe using this online form. If you want to include a picture with your recipe, send to info@larealtors.org and reference recipe title in email subject. Or share your creativity by designing the cover artwork for the cookbook. A small committee will review all entries and choose one to print on the cover. Stay tuned for more details on when you can grab your own copy of the cookbook! Cover artwork and recipes are due by April 17th.
Week three of the Regular Session kept real estate issues in the conversation, even as lawmakers continued to focus heavily on workforce, tax and insurance policy. On the property tax front, measures to reshape assessments and exemptions, including proposals for a new blight rehabilitation exemption and additional relief for seniors, remain parked in the House Ways and Means Committee as stakeholders work through fiscal and local government concerns. These bills matter because they will influence long-term carrying costs, redevelopment incentives and how tax burdens are shared across residential and commercial property. Homestead related legislation, including parish level authority to increase the exemption amount, is also in the queue, signaling that the broader structure of Louisiana’s homestead system is officially on the table, not just the dollar figure. For homeowners and buyers, this debate goes directly to affordability. For local governments, it raises revenue stability and service delivery questions. There also has been movement on several identical pieces of legislation that would instruct parish assessors to develop a process for homeowners to permanently register for the homestead exemption for the duration that they own and live on the property. We are actively tracking legislation that will directly shape how investor activity and non-traditional transactions are recognized and regulated in Louisiana’s real estate market. This includes HB 468 by Troy Hebert , a key component of the Louisiana REALTORS® legislative package that targets the wholesale of residential real estate, which was heard in the House Commerce Committee on Monday. The bill is currently positioned for a floor vote early next week. As drafted, HB 468 represents a major step in the right direction for consumer protection in Louisiana, advancing needed guardrails through potential disclosure, registration, and practice standards that could redefine how assignment contracts and “off-market” transactions intersect with licensed brokerage activity. In parallel, HB 292 by Delisha Boyd passed the House on final reading, 86-3, and is on its way to the Senate. Together, these measures represent a coordinated policy effort to bring greater structure and transparency to emerging transaction models, while preserving the integrity of the traditional brokerage framework. Finally, the broader policy backdrop remains important: the Governor continues to push income tax changes and cost of living relief, while business and industry groups are prioritizing insurance, workforce and energy — each a key driver of long run housing demand and investment. As these debates evolve, we’ll keep you updated on what moves, what stalls and what it all means for your clients, your pipeline and private property rights across Louisiana. Please view the weekly bill tracking report provided by our lobbying team over at Harris, DeVille and Associates.
