WASHINGTON, DC – July 17, 2009 – (RealEstateRama) — The U.S. Department of Housing and Urban Development today announced a commitment to insure a mortgage loan to Coulee Community Hospital in Grand Coulee, Washington to construct a new 25-bed hospital to replace an existing 47-year-old facility and fund renovation of an associated clinic. The $23 million loan is made possible through the Federal Housing Administration’s Section 242 Hospital Mortgage Insurance Program.
The new construction will replace the current hospital, which no longer meets codes nor has adequate space for existing services or new patient technologies and services. The renovation of the Coulee Family Medicine Clinic will provide new space for 20 examination rooms, three treatment rooms, and offices and conference rooms. By insuring the mortgage loan, FHA is enabling Coulee Community Hospital to obtain lower cost financing, saving the hospital an estimated $8 million 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 patient care. The hospital is the only acute care hospital within its primary service area. It is located more than 50 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 is helping to build state-of-the-art health care facilities all across the country ,” said HUD Secretary Shaun Donovan. “By lowering the cost of credit, FHA will allow Coulee Community Hospital to use more of its resources to provide quality medical care.”
This construction project alone will create approximately 400 full-time jobs and provide an estimated economic stimulus of $78.3 million to the community. Once completed, the project will provide an annual economic benefit of approximately $21.9 million and support 117 jobs throughout the 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 increasing homeownership, particularly among minorities; 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.