HUD APPROVES $33.1 MILLION FINANCING PLAN TO REPLACE CRITICAL ACCESS HOSPITAL IN DILLON, MONTANA
WASHINGTON, DC – September 30, 2010 – (RealEstateRama) — The U.S. Department of Housing and Urban Development (HUD) today announced a commitment to insure a mortgage loan to Barrett Hospital Development Corporation to replace the existing Barrett Hospital & Healthcare facility in Dillon, Montana. The $33.1 million loan is made possible through the Federal Housing Administration’s (FHA) Section 242 Hospital Mortgage Insurance Program.
The existing hospital building was constructed in 1971 and remodeled in 1992 to accommodate outpatient growth and service changes. It has been well maintained but has numerous infrastructure problems with space limitations.
The new 72,000 square foot replacement facility will be an 18-bed Critical Access Hospital located on a 10-acre site near the existing campus and close to the interstate. Like the existing facility, it will continue to provide an array of inpatient and outpatient services to a population of approximately 12,000 people in its primary and secondary service areas.
“FHA is helping to build state-of-the-art health care facilities like this all across the country,” said FHA Commissioner David Stevens. “By helping to make these projects possible, FHA also contributes to the financial well-being of communities by creating jobs to stimulate local economies.”
HUD estimates the Barrett Hospital & Healthcare construction project will support 432 full-time jobs and provide an estimated economic stimulus of more than $88.9 million to the community. Once completed, it is estimated the project will support 120 full-time jobs and provide an annual economic benefit of more than $18 million.
By insuring the mortgage loan, FHA is enabling the hospital to obtain lower cost financing that will save an estimated $25.1 million in interest expense over the life of the loan. Since 1968, FHA has insured 386 mortgages to hospitals throughout the nation, 45 within the past five years.
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. Eligible applicants can be public, proprietary, or nonprofit hospitals certified by the responsible State agency.
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HUD’s mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD is working to strengthen the housing market to bolster the economy and protect consumers; meet the need for quality affordable rental homes: utilize housing as a platform for improving quality of life; build inclusive and sustainable communities free from discrimination; and transform the way HUD does business. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov.
Contact:
Lemar Wooley
(202) 708-0685
