San Francisco CUs Prep for Taxi Medallion Sales
At least two credit unions are involved in a new pilot program from the
San Francisco Municipal Transportation Agency that will permit the sale of coveted taxi medallions.
The SFMTA said taxicab drivers who are at least 70 years old or have a disability can sell their medallions at a price of $250,000. Under the Taxi Medallion Sales pilot program, 80% of the sales revenue will be kept by the drivers, 5% will go to a drivers' fund and the city's municipal agency will receive 15%.
According to the SFMTA, San Francisco Federal Credit Union and Montauk Credit Union in New York are qualified lenders under the pilot program. San Francisco FCU said it will offer balloon or amortizing loans at different rates and terms. The San Francisco Times reported that San Francisco Fire Credit Union and San Francisco Police Credit Union have also been approved as lenders. There are approximately 300 medallion holders who could elect to sell their medallions on the basis of age, the SFMTA said.
Medallions essentially allow taxicab drivers to operate. The SFMTA said at one point there were 3,200 names on its waiting list with some who had waited nearly 14 years to obtain one.