The Taxi Medallion Sales Pilot Program Notice

The SFMTA has send a Notice to participate in the Taxi Medallion Sales Program to eligible drivers. You can get a copy of the notice from Taxi Services.

I'll try to cover a few highlights:

The Fixed Price will mostly likely be $250,00, subject to approval by the SFMTA on May 3, 2010.

Sellers - Medallions holders who are at least 70 years old by December 31, 2010 or are permanently disabled and unable to meet the driving requirement.

Buyers - Drivers who meet the same requirements as a Prop-K medallion applicant.

1. Medallions will be offered for sale to the buyers by order of seniority on the waiting list.

2. No one will be forced to buy a medallion.

3. If a driver decides not to buy, she or he will maintain her or his position on The List.

4. Drivers who already hold a medallion are not eligible to participate.

Loans - Buyers who take out loans from participating lenders must qualify for their loans.

1. The Medallion will serve as collateral on the loan.

2. Buyers must have some history of financial responsibility such as two years of federal tax returns and no major screw-ups.

Loan Terms have not been finalized but:

1. A group of credit unions and banks have apparently agreed to work together to spread he risk.
2. The rate will probably be 7%.
3. This would mean that payments could be as low as $1,800 per month with a 20% downpayment.
4. Or, payments could be as high as $2,100 a month with a lower downpayment.

Fees From the Medallion Sale

1. The transfer fee will be 20%.

2. SFMTA will receive 15%.

3. 5% will go to a Driver's Fund.

Drivers who purchase medallions - will be able to resell them.

Drivers who want to participate must return their Participation Forms to the SFMTA no later than May 14, 2010 at 5 P.M.

Drivers who sign and return the form will not necessarily have to buy or sell a medallion. It simply means that they will be eligible to buy or sell.