Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Housing Mortgage Stability topic
No spam. Unsubscribe anytime.
Supervisors direct study of joint powers vehicle to help homeowners with troubled mortgages
Summary
The Board approved a resolution urging a study of a possible joint powers agreement with Richmond and other options to address homeowners with problem mortgages, directing city staff to report back within set timeframes.
The San Francisco Board of Supervisors on Oct. 28 adopted a resolution directing city officials to study the feasibility of a joint powers agreement and other approaches to assist homeowners with troubled private-label securities (PLS) mortgages.
Supervisor David Chiu (acting as President Hsu during the meeting) and Supervisor John Avalos led debate that resulted in a revised measure that asks the Controller, in consultation with the City Attorney and the Mayor’s Office of Housing, to analyze potential approaches and return recommendations to the board within a specified study period.
The adopted resolution does not itself authorize creation of a joint entity or expenditures. Instead, it urges a study of a potential Homeownership Stabilization Authority that could include provisions such as using investor capital to buy troubled loans, targeted principal reduction, and a potential eminent-domain backstop if negotiations fail — options discussed in prior Richmond pilot proposals.
Supervisor Avalos said the city needs tools beyond counseling and loan-modification assistance, which he described as having limited reach when loans are held in complex private securitizations. "We need some tools to have leverage over the banks to actually negotiate, with a stronger presence," he said.
Several supervisors emphasized the measure as a study and directive, not a final legal commitment. The board amended the language to convert a previous negotiating direction into a study requirement and set a 75‑day deadline for the Controller to provide a written study and options for board review.
Why it matters: Homeownership stability has equity and neighborhood-stability implications. Supporters said the study could identify legal and financial tools to protect working- and middle-class homeowners; opponents were cautious about unintended consequences and legal complexity.
What’s next: The board expects a written report from the Controller with options and recommended next steps; if the study finds feasible mechanisms, the board could take future legislative steps or negotiate a joint powers agreement.
