New San Francisco Proposal Would Aid 'Middle-Class' Homebuyers

San Francisco Mayor Ed Lee and Supervisor Malia Cohen are urging administrators of San Francisco's public employee pension system to consider middle-income families as they develop the system's investment portfolio.

On Wednesday, Lee and Cohen announced a resolution calling for a $125 million investment over the next 10 years in loans for those who currently make too much money to qualify for the city's Downpayment Assistance Loan Program (DALP).

"These are what we define as middle-income families," Lee said. "They are teachers, they are nurses. They're  janitors, they're firefighters, they're police officers."

For example, he said, a family of four making about $178,000 a year would qualify under the expanded DALP program, administered by the Mayor's Office of Housing and Community Development. Households of two people making about $143,000 would also make the cut.

Lee said the resolution is designed to assist up to 1,500 families. It's expected to go before the San Francisco Retirement Board for approval next month.

Cohen, who is also vice president of the retirement board, described the existing DALP loans as an extremely safe investment, with a loss rate of less than 1 percent. She said the new proposal will be structured to ensure a reasonable rate of return.

"Not only are we making investments in China, in other developing parts of the world, but we also need to be taking a critical look at the resources we have here right in our own backyard," she said.