Director Christiane Hayashi has finally hired two experienced investigators and Taxi Services will be able to process 12 medallions a week.
When the participation deadline of May 14th passes, Hayashi will try matching buyers to sellers. If, for instance, she receives 300 requests to sell, she will find 300 buyers for the medallions. These buyers will be chosen on the basis of their order on the Waiting List.
This would be in addition to the 20 0r 30 revoked medallions that the MTA will be selling outright. So, in this example, there would be 320 or 330 buyers and 300 sellers aside from the MTA. Logically, the MTA medallions will be sold first.
Once the buyers are selected, the game will change from seniority to a race. It will work something like this:
- On May 17th, Chris Hayashi will send letters out to potential sellers (making certain that they do want to sell) and buyers.
- They will be given 45 days to respond but ... the first people to get their paperwork in will be the first sellers and buyers.
- All qualified sellers and buyers who return their paperwork within the 45 day deadline will be able to sell or buy taxis but on a last come, last served basis. Even if the Pilot Plan ends, they will still be able to sell.
Potential Buyers will be required to jump through the following hoops:
- Drivers will have to prove that they have a down payment and show the source of the funds. Hayashi doesn't want loan sharks or other dubious characters lending drivers money.
- Drivers will need to get their waybills and other necessary documents together and bring them to Taxi Services.
- The MTA has to okay the buyer.
- The drivers then need to qualify for a loan from a qualified lender.
The four credit unions brought together by Chris Hayashi (the San Francisco Federal Credit Union, the Montauk Credit Union from New York City, the San Francisco Police Credit Union and the San Francisco Fire Credit Union) have already set standards for loans to drivers and will be able to process them quickly.
The qualifications that the credit unions are looking for are:
- Two years worth of tax returns.
- No current or recent bankruptcies or other horrible credit.
- No conviction for fraud, etc
- A good credit rating could be helpful.
I'm going to be interviewing one of the SF Federal Credit Union officers next week to get more details on how they decide whether a driver would qualify or not. I'm unsure, for instance, if no credit history would disqualify a person for a loan. This is a cash business and there must be many drivers (like myself before I got my medallion) who pay cash for everything but are very responsible individuals.
Rebecca Lytle, the Vice President of Lending at SFFCU, said that the medallion itself secures the loan.
Director Hayashi said there was a company named HSM that would help potential buyers organize their waybills, otherwise help the drives prove that they met the necessary qualifications or help drivers with financial problems. HSM can be reached at: 415-431-7655 or www.hsmsf.com.
Hayashi also said that Taxi Services would no doubt be making mistakes in the process because it was the first time they'd ever done anything like this. She said that it would be, "A learning opportunity for everybody."
In addition, Hayashi wanted to emphasize that drivers who are turned down for loans will keep their position on The List and remain eligible for a medallion ala Prop-K. She continues to guarantee that this list will move faster than it ever has before.
Given her achievements over the last year, who would bet against her?