LAFCO reviews plans for a Municipal Finance Corporation and public bank; working group votes to forward plans

At its May meeting the Local Agency Formation Commission heard final business and governance plans for a proposed Municipal Finance Corporation (MFC) and a public bank and was told the Reinvestment Working Group voted to forward both plans to LAFCO and the San Francisco Board of Supervisors.

HR&A Advisors, the consultants to the working group, described a two‑stage approach: establish an MFC quickly to begin community‑focused lending and transition that entity into a larger public bank after about three years if regulators and the city agree. "We project that it would have nearly $40,000,000 in capital and $50,000,000 in funding," the presenter said when summarizing early capital assumptions. The consultants also presented eight‑year projections showing the joint entity could reach roughly $60,000,000 in capital and $250,000,000 in funding and nearly $320,000,000 in total assets under a base scenario.

The presentation stressed that the MFC would concentrate on participation lending with community financial institutions, affordable…