Second FHA-Insured Hospital Loan in the State of Georgia
WASHINGTON, DC – May 29, 2009 – (RealEstateRama) — The U.S. Department of Housing and Urban Development today announced a commitment to insure a mortgage loan to Wills Memorial Hospital in Washington, Georgia to renovate its 25-bed facility. The $12.7 million loan is made possible through the Federal Housing Administration’s Section 242 Hospital Mortgage Insurance Program.
The FHA financing arrangement will allow Wills Memorial Hospital to replace its existing inpatient medical/surgical unit, pharmacy, respiratory therapy area, outpatient specialty clinic, and to renovate the emergency department. By insuring the mortgage, FHA is enabling the hospital to obtain lower cost financing and save millions in interest expense over the life of the loan.
The new construction will enable the hospital to provide services in modern space and to maximize the efficiency of inpatient, outpatient, and specialty care. The hospital is located more than 25 miles from the nearest inpatient healthcare facility, and provides critical services and access to care for its community. Since 2003, HUD has issued commitments to 15 different critical access hospitals all across the United States.
“FHA’s hospital mortgage insurance will allow this important facility to provide higher levels of service to the community by replacing and upgrading the current structures.” said HUD Secretary Shaun Donovan. “By lowering the cost of credit, FHA will allow Wills Memorial hospital to use more of its resources to provide quality medical care for families in rural Georgia.”
Wills Memorial’s Chief Executive Officer Marvin Goldman noted, “HUD’s mortgage insurance assistance will allow us to access affordable capital financing that was otherwise unavailable to us as a small rural hospital. This project will enable us to regenerate an aging facility and continue to provide high quality health care to our region for many years to come.”
In addition, this construction project will create approximately100 full-time jobs and provide an economic stimulus of approximately $34 million during the construction period. Once completed, the project will provide an annual economic benefit of approximately $1.2 million to its community.
FHA’s Section 242 Mortgage Insurance Program for Hospitals provides HUD-insured mortgages made by private lending institutions to finance construction or renovation of acute care hospitals including major equipment needed to operate the facility. The eligible applicants can be public, proprietary, or nonprofit hospitals certified by the responsible State agency.
HUD is the nation’s housing agency committed to sustaining homeownership; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development and enforces the nation’s fair housing laws. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov.