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December 7, 2010
HUD OKAYS $22 MILLION IN FINANCING TO REPLACE CRITICAL ACCESS HOSPITAL IN COQUILLE, OREGON
PORTLAND - The U.S. Department of Housing and Urban Development (HUD) today announced a commitment to
insure a mortgage loan to the Coquille Valley Hospital District in Coquille, Oregon. The $22 million loan is made
possible through the Federal Housing Administration's (FHA) Section 242 Hospital Mortgage Insurance Program.
The existing hospital was constructed in 1969 and was designed primarily for inpatient care. Though there have
been various building additions and improvements in subsequent years, it is no longer suitable for the hospital's growing outpatient volume. The FHA-insured mortgage loan will be used to construct a new three-story, 18-bed, critical access hospital adjacent to the existing facility. The loan will also be used to refinance a 2005 loan related
to expansion of the Coquille Medical Clinic.
"FHA financing is helping to expand access to medical care in this part of Oregon," 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 play a critical role in the physical and economic well-being of communities both large and small, urban and rural," said HUD Northwest Regional Administrator Mary McBride. "This is the third hospital mortgage in the Northwest that FHA has approved over the last 18 months. We look forward to working with our partners in expanding and modernizing the capacity to continue providing the highest-quality care in Coquille and southwest Oregon."
HUD estimates the Coquille Valley Hospital construction project will support 383 full-time jobs and provide an estimated economic stimulus of more than $55.2 million to the community. Once completed, it is estimated the
project will support 40 full-time jobs and provide an annual economic benefit of $6.2 million. HUD's estimates are
based on results from an economic model used by public and private institutions to examine a variety of economic development issues.
By insuring the mortgage loan, FHA is enabling the hospital to obtain lower cost financing that will save an estimated $1.5 million in interest expense over the life of the loan. Since 1968, FHA has insured 394 mortgages to hospitals throughout the nation.
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.