At Inman Connect Las Vegas, July 30-Aug. 1, 2024, the noise and misinformation will be banished, all your big questions will be answered, and new business opportunities will be revealed. Join us.
Accountability is the unofficial theme of the 2024 summer. As real estate agents paddle through a dicey legal landscape, and continue to demand more value and transparency from the National Association of Realtors (NAR), the unavoidable and always-charged political climate around the 2024 election is already creating a ripple effect against the backdrop of a strained housing market.
Trump’s newly appointed candidate for VP, JD Vance, highlights the very reason that agents need to pay attention to which players are taking the spotlight in the political arena, which could potentially shape their businesses in 2025 and beyond.
TAKE THE INMAN INTEL INDEX SURVEY FOR JULY
Still, while we are busy asking questions, calling for accountability and creating more transparency, I want to call attention to the fact that RPAC, or the Realtors Political Action Committee, NAR’s second-favorite place to ask you to send funds and “save homeownership,” needs an overhaul.
In this article, you will learn how RPAC works, how candidates are selected, and identify several candidates who have received RPAC funds yet whose policy proposals are counter to the Code of Ethics. To research the information in this article, sources were used from NAR’s own RPAC resources and a website called Open Secrets that promotes transparency of PAC campaign funding.
What is RPAC?
One of the largest PACS in the nation, for decades this PAC consistently shows up in the top 10 for size and fundraising.
Define it: Political Action Committee (PAC) — A popular term for a political committee organized for the purpose of raising and spending money to elect and defeat candidates. Most PACs represent business, labor or ideological interests.
Since 1969, the REALTORS Political Action Committee (RPAC) has promoted the election of pro-Realtor candidates across the United States. The purpose of RPAC is clear: voluntary contributions made by Realtors are used to help elect candidates who understand and support their interests. These are not members’ dues; this is money given freely by Realtors in recognition of the importance of the political process. The Realtor Political Action Committee and other political fundraising are the keys to protecting and promoting the real estate industry.
How are RPAC candidates selected?
In a nutshell, candidates who wish to receive funds fill out this form, and then the listed committee reviews the form and decides to either accept or reject a candidate.
Who selects the candidates?
The RPAC Committee is comprised of Realtors representing different regions of the U.S. There are several subcommittees and other bodies associated with this and the “Realtor Party.”
Agents can access a full roster of those involved in the subcommittees by logging into your personal NAR account.
How is the money spent?
The funds raised are supposed to be evenly divided between both parties to help elect candidates that support the interests of Realtors. It looks like, via Open Secrets, contributions to federal candidates for 2023/2024 are earmarked at 51.58 percent to Democrats and 47.91 percent to Republicans.
One important thing to note is that if you click on the independent expenditures tab, RPAC has made another $1.37 million in “soft money” expenditures, 70 percent of which has gone to Republican candidates.
Hard dollars are voluntary personal contributions and are the only type of funds that can be given directly to Federal candidates and National RPAC. Soft dollars are generally raised from organizations and corporations. Soft dollars can be directly given to state and local candidates in some states, and can be used to help pay for the costs incurred in administering and promoting RPAC and for certain grassroots political programs. There is no limit on the amount of soft dollars individuals or corporations may invest in the Corporate Ally Program or Political Advocacy Fund.- Realtor Party Hub explanation of soft money
Unlike contributions made directly to candidates’ campaigns, there is no limit on how much soft money PACs can spend in support of a candidate, although they can’t coordinate their efforts with the candidate.
Wait what!?
As complicated and complex as our current political landscape is, Many agents are having a hard time making sense of the contradictions of candidates who receive funds who say they are for housing but who also have very specific messaging and efforts in their platform that are against diversity, equity, inclusion, and, essentially, fair housing.
On June 1, hundreds of agents commented on NAR’s Pride Month graphic with seemingly no consequences, and, overall, it’s just a bad look for the organization as a whole. Now if someone scrolls back and visits the same post, you can see that the 900+ comments have been removed, with NAR’s response seeming to be just a quiet clean-up job and no real consequences for the agents who pushed back against Pride.
For years LGBTQ+ Real Estate Alliance CEO Ryan Weyandt has been sounding the alarm that NAR has an ugly DEI problem that they continue to fail to get under control.
“Taken a step further, we have demonstrated that Realtor PACs around the nation are supporting discriminatory candidates and elected officials,” he added in reference to the Alliance’s years-long Article 10 campaign. “But now, on NARs own Instagram and Facebook pages, there are hundreds of inflammatory, discriminatory and hateful comments authored by Realtors themselves.”— Ryan Weyandt, LGBTQ+ Real Estate Alliance CEO
Ryan Weyandt, LGBTQ+ Real Estate Alliance CEO, told Inman reporter Marian McPherson on June 6th, 2024 in the article covering the comments in the NAR Pride post.
Why or how NAR, RPAC, and even real estate agents would want to support any candidate who could not meet the standards of the code of ethics that every Realtor is supposed to follow seems very contradictory to previous messaging from NAR about inclusion and supporting fair housing for every consumer.
For example their FairHaven program. Launched in 2020 to address the rampant social media discrimination happening, NAR introduced this new fair housing simulation training, that leans into the power of storytelling to help members identify, prevent, and address discriminatory practices in real estate
Why or how NAR, RPAC, and even real estate agents would want to support any candidate who could not meet the standards of the Code of Ethics that every Realtor is supposed to follow.
As controversial as this topic may be, we have to talk about NAR’s lack of action and RPAC’s ethics problems. If agents want the trust of the American consumer, they must be a champion for every American to have an opportunity at homeownership.
You are being dramatic
Not really at this point. There is a very aggressive agenda in place with a subset of extreme conservatives who are determined to continue to chip away at accommodations, protections, and assurances for protected classes, minorities, and others who, without the enforcement of these carefully constructed laws, will continue to face discrimination, and lose out on essential opportunities to have fair access to prosperity.
On June 12, Senator, and now chosen Republican VP candidate JD Vance (R-OH) and Congressman Michael Cloud (R-TX-27), along with cosponsors Senators Marsha Blackburn (R-TN), Bill Cassidy (R-LA), Kevin Cramer (R-ND), Eric Schmitt (R-MO), Rick Scott (R-FL), and 15 members of the U.S. House of Representatives, introduced the Dismantle DEI Act to eliminate all federal DEI programs and funding for federal agencies, contractors that receive federal funding, organizations that receive federal grants and educational accreditation agencies.
This includes Fannie, Freddie, and all kinds of consumer banking laws that protect consumers from discrimination in real estate, lending, and mortgages. Please take a moment to read the entire document and everything they are trying to repeal with this Act.
These elected officials received RPAC funds
RPAC supported these folks (in some cases for multiple election cycles) who have a terrible and very visible track record with DEI. This feels very counterproductive to what the funds are supposed to support.
According to NAR’s Code of Ethics, if an agent is found to be participating or intentionally discriminating against protected classes, it is grounds for termination and even legal recourse. However, for some reason, NAR’s Code of Ethics does not seem to apply to candidates applying for and using RPAC funds for their campaigns.
What can be done?
The entire candidate screening process needs to be rehabbed. Agents can and should get more involved by advocating for which candidates should receive support. At the bare minimum, the entire platform and policy beliefs the candidate needs to be considered, not just their housing-specific efforts. Realtors are not just in the housing business. Realtors are in the business of people and life.
The 50/50, “We keep it fair and square philosophy” seems counterintuitive if the funds are distributed to folks on either side who do not match the same ethics Realtors pledge to have and uphold.
Realtors have to do better. Realtors have to enhance and improve practices. Things are not meant to be the same forever, and if you are an RPAC contributor, you need to ask for better accountability from those in charge.
Rachael Hite is a former agent, a business development specialist, fair housing advocate, copy editor, and is currently perfecting her long game selling forever homes in a retirement continuing care community in Northern Virginia. You can connect with her about life, marketing, and business on Instagram.
