San Francisco FCU Makes Taxi Medallions a Reality
A year after it started offering them, San Francisco Federal Credit Union has funded its 100th taxi medallion loan.
Yoseph Awoke, who has been driving a taxi in San Francisco for 13 years, was the recipient of the milestone loan, according to the $767 million CU.
“In assisting the qualified drivers in obtaining the loan, we have also helped the taxi industry in establishing documented agreements between the medallion holder, drivers and the taxi company – this is good business for all involved,” said Steven Stapp, president/CEO of San Francisco FCU.
Taxi medallions are licenses that allow for the ownership and operation of a taxi. In 1978, Proposition K restricted the transferability of taxi medallions and created a seniority waiting list of drivers in San Francisco, according to the CU.
In August 2010, the San Francisco Municipal Transportation Agency gave final approval for the launch of a short-term pilot program for the buying and selling of San Francisco taxi medallions to this waiting list of drivers. A financing mechanism was established with the SFMTA.
Approximately 180 medallions are offered for sale through the pilot program, according to San Francisco FCU.
San Francisco FCU said it instituted the lending criteria, policies, and participation loan sales with San Francisco Police Credit Union and San Francisco Fire Credit Union. Medallion purchasers are selected by SFMTA in order of seniority on the Prop K waiting list and must meet certain criteria to be considered qualified to purchase a medallion from the SFMTA, according to officials.