Police in the Community Program (PIC)

This program was retired in Summer 2017, after funds were depleted.

The Police in the Community Program (PIC) helped full-time police officers buy their first home in the City and County of San Francisco. Each officer received a $20,000 loan forgiveable after 5 years.

The funds came from contract negotiations between the City and the Police Officer’s Association. Qualifying police officers worked full-time, in good standing, for the San Francisco Police Department (SFPD). 


To be eligible for a PIC loan, a borrower must have been a full-time police officer in good standing currently employed by the San Francisco Police Department (SFPD). 

  • First-time homebuyer: Borrower must never have owned property in San Francisco, either as a primary residence. The PIC loan is for the purchase of the officer’s first property in the City and County of San Francisco. The property must serve as the officer’s principal residence (be owner-occupied).
  • Homebuyer Education Requirement: Borrowers were required to complete a first-time homebuyer education course through one of MOHCD's 5 approved housing counseling agencies. 
  • First Mortgage: All City loan approvals are made in conjunction with a first loan commitment from a bank or mortgage lender. This loan can be a fixed or adjustable interest rate loan. The mortgage payment should include principal and interest, as long as it does not have interest only, option ARM, balloon or negative amortization payment options.
  • Debt-to-Income Ratio: Applicant's monthly debt which including housing costs, plus all other household monthly debt (including credit cards, car payments, etc.) should not exceed 45% of the household’s gross income. However, the back end ratio cannot exceed more than 5% of the front end ratio. (For example, if the front end ratio is 28%, then the back end ratio cannot exceed 33%).  If you don't understand this DTI ratio, your lender will explain it to you.


Properties purchased with PIC funds were single-family residence units in the City and County of San Francisco. These included: detached single-family homes, condominiums and town houses.


The loan amount available for PIC loans was $20,000.

Maximum Combined Loan-to-Value Requirements: Maximum Combined Loan-to-Value Ratio (CLTV) cannot exceed 100% of the purchase price, which includes the first mortgage, the PIC loan and any other borrowed subordinate financing.


The loan can be used for either closing costs or downpayment. There is no interest or shared appreciation. PIC loans may be layered with DALP or City Second loans, and may also be used for the purchase of BMRs and Condo Conversion units, if the Borrower also meets the income eligibility criteria for those programs. If the Borrower moves out of the City and County of San Francisco or leaves the force of the SFPD within 5 years of the date the loan is issued, the loan must be paid back in full. After year five, the loan is forgiven in its entirety.

If the Borrower is rendered permanently disabled or killed in the line of duty, the loan will be forgiven immediately in its entirety regardless of the amount due at the time.

Refinance/Subordination: The PIC loan can be subordinated to refinance the existing first mortgage for a lower interest rate and better loan terms as long as no cash equity is taken out of the property. All refinances must meet the Mayor’s Office of Housing and Community Development‘s (MOHCD) subordination requirements and be approved by MOHCD. All borrowers must work with one of the loan officers on the list of participating lenders for refinance. This ensures awareness of full restrictions on the property and expedites the request process.

Tax Reporting: MOHCD issues Form 1099-C Cancellation of Debt to borrowers who get their PIC loans forgiven during the previous calendar year. To ensure that correct taxpayer information is used for 1099-C reporting, borrower must provide a PDF iconForm W-9 Request for Taxpayer Identification Number and Certification if signed tax returns and/or signed Form 4506-T Request for Transcript of Tax Return is not in file. Additionally, borrower must evidence continued service and owner occupancy by the end of loan term to satisfy the loan repayment obligations. For more details regarding the information provided on Form 1099-C, please view the Form 1099-C and its instructions on the IRS website (www.irs.gov). Borrowers shall consult a tax advisor for full details of its tax effects.


A borrower must occupy the purchased property as its primary residence within 60 days after close of escrow.

Properties that have received City funding must remain owner-occupied throughout the term of the loan. Compliance monitoring will be performed and documented proof of occupancy required at intervals determined by the Mayor's Office of Housing and Community Development.