Download How does the MLS Merger Impact RAyAC?

HOW DOES THE MLS
MERGER IMPACT RAYAC?
HOW DID WE GET TO TODAY?
• September 2015 announcement of TREND and MRIS merger.
• October 2015 meeting in Baltimore.
• November 2015, RAYAC Board of Directors votes to participate in a January
12th meeting and pays $1,500 fee to join meeting.
• January 12th meeting of MAPS Visioning Team.
• February 8th DR/Managers meeting with Past Presidents and Committee
Chairs.
• February 22nd meeting with Association Executives and MLS Directors.
HAS THE BOARD DECIDED TO MERGE THE MLS?
• The Board of Directors has NOT made any decisions on participating in the
merger.
• This is not the Board’s decision; it is YOU the members who will decide.
• Seat at the table for fact finding.
• Obtaining membership feedback:
 DR/Managers meeting
 Board members called 50 stake holders of the association
 Committee meetings
 Budget Finance Committee
 Advisory Council
 Town Halls
WHEN WILL THE MEMBERSHIP VOTE ON THE
MERGER?
• When we have all of the information on the new MLS entity, we will call a
special meeting of the membership.
• According to our bylaws, we will need to have 20% of the membership
attend the special meeting to have quorum.
• 2/3 of the meeting attendees would need to vote in favor of the merger to
amend the bylaws.
WHAT ARE OTHER ASSOCIATIONS AROUND US
DOING?
• Meeting on January 19th with Greater Harrisburg, Lancaster
and Lebanon associations.
• All three of those associations have indicated they are excited
about the merger and have expressed their membership will
most likely vote in favor of the merger.
HOW MANY OF RAYAC’S MEMBERS SUBSCRIBE TO
OTHER MLS SYSTEMS?
• 104 primary RAYAC members subscribe to other systems.
• We have about 1,350 MLS subscribers.
• Approximately 400 of those subscribers are secondary,
reciprocal or MLS only subscribers and have their primary MLS
subscription through another MLS.
DOES THE MERGER INCLUDE LOCKBOXES?
• No, RAYAC would continue to operate our lockbox program.
WHAT IS THE FINANCIAL IMPACT ON THE
ASSOCIATION?
• 60% of RAYAC’s income is derived from the MLS. That is a
total net loss of $430,000 a year to RAYAC.
HOW ARE WE GOING TO MAKE UP THE INCOME
LOSS?
• Exploring non-dues revenue options
• Cutting expenses
• Potential dividends from new entity
WHAT WILL BE THE IMPACT ON STAFF?
• The staffing levels will most likely need to be reduced from the
current 7 to 4.
WHAT WILL BE THE IMPACT ON DUES?
• The Budget Finance Committee is reviewing this piece and has
not made a final determination on the dues level.
• A $25 to $50 dues increase is being considered.
DO WE NEED TO SELL THE BUILDING?
• Current outstanding mortgage amount is $759,300.
• “Available” money in cash and investments is $1,100,00.
WHAT SERVICES WILL BE CUT?
• Even with reduced staff and income, we still believe we will be
able to provide the majority of services.
• Evaluation of all of our services is underway.
DO WE NEED TO MERGE OUR ASSOCIATION WITH
ANOTHER ASSOCIATION?
• No.
• There are 1,500 local associations across the country. There
are only 752 MLS systems in the country. That means that half
of the local associations do not have an MLS.
• Many of those associations without an MLS are in our region
and are providing good services to their members.
Association
# of Members
# of Staff
Carroll County MD Association
475
4
Pen MAR Association
610
3
Reading Berks Association
824
4 association staff plus additional
staff for publication
Frederick County, MD
886
4
Harford County, MD
1131
5
Montgomery County, PA
2415
5
Bucks County, PA
3259
4
Suburban West Association
5069
8
WHEN DOES OUR CONTRACT WITH PARAGON
EXPIRE?
• April 2017.
• We can renew our current contract at the same rate for a 12
month period.
WHEN WILL WE KNOW MORE INFORMATION?
• March 22nd meeting.
YOUR QUESTIONS?