In 1907, the Sisters of St. Joseph from Wichita, Kansas opened the first hospital in the San Luis Valley at Del Norte, a rural town in south central Colorado that now has some 1700 inhabitants. Over the years many excellent physicians worked in the facility, but the Sisters of St. Joseph closed the hospital in 1993 as part of the restructuring of their hospital system.

Groundbreaking for the new 35,000 square foot facility took place on July 29, and construction is expected to be completed in August, 2004.

An artist's rendering of the new Rio Grande Hospital. FHA helps hospitals access affordable financing for capital projects. Since the Section 242 Program began in 1968, FHA has insured 313 hospital mortgages for a total of $9.3 billion. Clients range from relatively small hospitals to some of the nation's most prestigious teaching hospitals. FHA insurance enables clients to enhance their creditworthiness because their debt is backed by the full faith and credit of the U.S. Government.

A group of local residents recognized the need for continuing hospital care and formed the Valley Citizens Foundation for Health Care, and in 1996, their hard work came to fruition when the Rio Grande Hospital opened in the old St. Joseph Hospital facility.

Since reopening, however, the leased building has been plagued with outdated mechanical systems, asbestos and structural problems. The cost to purchase and rehabilitate the building would have been prohibitive; more space was needed and anticipated growth in the area pointed to the need for a new facility.

And that's when the community and many other partners came together to make the $11.5 million project a reality. A local rancher donated 10 acres of land for the hospital while another rancher donated the proceeds from the sale of 22 acres of prime Rio Grande riverfront property. A 1960 Lincoln Continental was raffled raising $25,000, and numerous other fund-raising efforts helped to raise the remaining money needed. Together, the community raised $1.5 million for the new hospital.

HUD and the U.S. Department of Health and Human Services played key roles, too. The Denver Multifamily Hub closed a $10 million FHA Section 242 insured loan for the new hospital. HUD and DHHS made the hospital the first critical access hospital to be insured under a cooperative effort between the two federal departments. Unlike most non-profit hospitals financed through the issuance of tax-exempt bonds, Rio Grande Hospital was financed through Ginnie Mae mortgage-backed securities.

Groundbreaking for the much-needed 35,000 square foot replacement structure took place in late July, and completion is expected a year from now in August. Once completed, the new hospital will include 14 private patient rooms, an expanded emergency room facility and additional space for laboratory, physical therapy, pharmacy and administrative functions.