WASHINGTON — The finance committee of the National Association of Realtors (NAR) has advised NAR to allocate up to $20 million to implement core standards for Realtor associations that could fuel consolidation of small associations across the country.
The commitment would allow NAR to offer financial assistance to help small associations meet the proposed standards, merge with larger associations or transition into chapters or councils of larger associations.
Merger image via Shutterstock.
At a session at NAR’s midyear conference, John Pierpoint, chief financial officer of NAR, said the proposed assistance plan would allow NAR to offer:
- Between $2,500 and $5,000 to associations that have not completed a strategic plan in the last five years or have fewer than 500 members, in order to help such associations meet the proposed standards.
- Between $15,000 and $25,000 to facilitate mergers between associations.
- Up to $100,000 to state associations to help them assist local associations meet the standards.
The proposed standards, which the NAR board of directors is expected to vote on Saturday, would “raise the bar” for Realtor associations by ensuring that even the smallest is capable of enforcing the Realtor Code of Ethics, playing a political advocacy role, conducting outreach to consumers, maintaining fiscal responsibility and leveraging technology.
The finance committee’s recommendation that NAR set aside $20 million to implement the proposal represents “a very significant stake in the ground, and reflects their belief” in the new standards, Pierpoint said.