Dear AAR Board of Directors, 

I hope this letter finds you well. We are looking forward to seeing everyone at our third AAR Board of Directors meeting on Thursday, September 12, 2023, at 10:00 am. The meeting will be at the Alabama Association of REALTORS® Building at 522 Washington Avenue, Montgomery, AL. Sign-in will begin at 9:30 am. 

The purpose of the meeting will be to pass the 2025 budget; consider a 3% ($7) increase in dues to keep up with ongoing inflation; consider governance proposals; discuss economic trends affecting our members’ businesses; legal updates regarding the implementation of NAR’s rule practice changes; environmental scanning of external legal challenges; update the board on pending Association projects; get feedback on future Association business; and conduct other Association business. The resource page for the 2024 Board of Directors can be found here. 

Overview: Throughout the last 12-18 months, our Association has faced numerous external threats from class action lawsuits, internal discord at NAR, a massive jury verdict, uncertainty, a massive settlement that changed the way our members conduct business, a renewed DOJ investigation of NAR, and confusion over the implementation of significant rules changes in a very short amount of time. Through all of this, our members have remained resilient and adaptable. During the last 10 months, AAR’s leadership and legal team have tried to provide timely and accurate information to AAR members, including: 

• AAR’s legal team has spoken in person to approximately 100 brokerages, local, and regional gatherings as well as live webinars for both brokers and agents. During that span, they have reached thousands of members to provide accurate information about the most significant legal developments affecting their businesses. 

• The AAR Legal Help Line has averaged approximately 50 phone calls and emails per day since March of this year. 

• AAR’s statewide forms usage has surged in 2024. Approximately 65% of our brokerages are utilizing at least one of the statewide forms. 

• Approximately 60% of local associations have officially adopted AAR’s statewide forms with several others pending by the end of 2024. 

• AAR’s mid-summer statewide forms update had approximately 1,000 members registered for each live webinar session. Thousands more have viewed the webinars and training videos online. The AAR forms have been downloaded and shared tens of thousands of times in the last 30 days. 

• In summary, more brokers, agents, members, and local associations are relying on AAR’s Legal Team than ever before to provide timely guidance on the most important legal issues affecting real estate in Alabama. 

As our leadership team and workgroups met this summer, a clear consensus emerged that the time is now for AAR to continue to help our members navigate the challenges ahead. AAR has an opportunity to expand on its core member services in Advocacy, Legal and Economic Development and focus its resources to meet the unknowns. Each week brings forward a new lawsuit, and new external threat that could alter the way our members conduct business. Challenges also bring opportunity. We are confident that AAR can continue to be there as a dependable, stable, and consistent resource for our members in the months and years ahead with the successful passage of the proposals below. 

Budget and Governance Proposals: Here is a brief overview of the 2025 Budget and Governance Proposals: 

• 2025 Budget: The AAR 2025 Budget is based on projected revenue of $4.7 million and projected expenses of $4.6 million. Revenues reflect an adjustment from the 2024 Budget and stronger than expected membership numbers. The 2025 Budget is based on a membership of 18,769, which represents a 3% decrease from membership in July 2024. (The 2025 Budget Notes and 2025 Budget may be found on the BOD Resource Page) 

• Motion 1: Dues Proposal Inflation: Historic inflation continues to have a negative impact on the association's revenue and expenses. To address this issue and maintain the same level of services for members in the future, AAR is proposing a 3% ($7) increase in dues. This proposal would take effect beginning January 1, 2025. (Motion 1 can be found on the BOD Resource Page) 

• Motion 2: Governance, Organization and Efficiency Improvement: This proposal will help AAR enhance its operations and expand its core member services in Advocacy, Legal and Economic Development while creating efficiencies through sunsetting several programs and services. The motion positions AAR to be the leading resource for legal developments affecting real estate in Alabama. The proposal creates the Legal Forms Advisory Task Force, Legal Forms Instructors, and sunsets the Leadership AAR Program, GRI Task Force, and Realhealth Programs and moves GRI courses online. (Motion 2 can be found on the BOD Resource Page) 

• Motion 3: Blue Sky Sessions: This proposal will set forth guidelines for Blue Sky Sessions at the end of Board of Directors meetings. This policy provides a structured yet flexible framework to encourage creative and strategic thinking at the end of board meetings, helping the organization to stay innovative and forward-looking. (Motion 3 can be found on the BOD Resource Page) 

• Motion 4: Simple Parliamentary Rules: This proposal comes from a request from the AAR Board of Directors to create a simplified set of parliamentary rules for the governance of AAR meetings that add clarity and transparency so that all members are on a level playing field. The full set of Roberts Rules of Order can be complex, at times contradictory, and difficult to understand. (Motion 4 can be found on the BOD Resource Page) 

• Motion 5: Executive Committee: The proposed motion makes updates to the qualifications to serve as Secretary to require more leadership and management experience; and makes other general updates to the job descriptions, responsibilities, and qualifications for members of the Executive Committee for consistency and clarity. (Motion 5 can be found on the BOD Resource Page) 

Please let us know if you are unable to attend the Board of Directors meeting. This meeting is for the 2024 AAR Board of Directors. Space and overflow seating is limited. Parking will be available in the Association’s parking lot at 502 Washington Avenue. The attire for the meeting is business casual. We will have lunch following the meeting for the AAR Directors in attendance. 

Please reach out to myself, CEO Jeremy Walker, or Melissa Williams prior to the meeting if you have any questions, comments, or suggestions. 

Thank you for your leadership, support, and service on the Board! 

Warm regards, 

Senia Johnson

2024 President

Alabama Association of REALTORS®