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October 4, 2010
HUD OKAYS $27.1 MILLION FINANCING FOR MAJOR CONSTRUCTION AT ACUTE CARE HOSPITAL IN MARION COUNTY, OREGON
Santiam Memorial to Build 4-story Patient Tower to Replace Almost 50 Year-Old Facility
WASHINGTON - The U.S. Department of Housing and Urban Development (HUD) today announced a commitment to insure a $27.1 million mortgage loan to Santiam Memorial Hospital in the City of Stayton in Marion County, Oregon through the Federal Housing Administration's (FHA) Section 242 Hospital Mortgage Insurance Program.
Santiam Memorial Hospital operates a 40-bed facility and three on-campus clinics, as well as off-site clinics in the nearby towns of Mill City, Sublimity, and Aumsville. The FHA-insured mortgage loan will be used to construct a four-story patient tower with private beds adjacent to the existing hospital building. This new tower will replace the outdated facility that was constructed in 1963. It will house medical/surgical units, an intensive care unit, surgical services, and obstetrics. The existing building will be refurbished and used as a chapel and to increase outpatient activity space.
"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."
"Hospitals like Santiam Memorial are critically important in every community, large or small, and to the people who
live there," said HUD Northwest Regional Administrator Mary E. McBride. "We are pleased to be able to help the Stayton build for its future."
HUD estimates the Santiam Memorial Hospital construction project will support 394 full-time jobs and provide an estimated economic stimulus of more than $73.1 million to the community. Once completed, it is estimated the
project will support 157 full-time jobs and provide an annual economic benefit of more than $26 million.
By insuring the mortgage loan, FHA is enabling the hospital to obtain lower cost financing that will save an estimated $12.4 million in interest expense over the life of the loan. Since 1968, FHA has insured 392 mortgages to hospitals throughout the nation, 51 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.
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.