HUD Archives: News Releases

HUD No. 06- 002
Dwight Peterson
(801) 524-6071
For Release
October 27, 2006

Over $14 Million Commitment to Insure Joint Project of Ute and Navajo Indian Tribes

WASHINGTON - The Department of Housing and Urban Development today announced that it has issued a commitment to insure a $14.5 million mortgage loan for Blue Mountain Hospital in Blanding, Utah. The mortgage, insured under the Federal Housing Administration (FHA) Section 242 Hospital Mortgage Insurance program, is the first joint venture by two of the American West's most celebrated Indian nations, the Ute and Navajo tribes. The loan will support the construction of an eleven-bed hospital conveniently located close to both reservations.

"FHA mortgage insurance for this new hospital will help fill a need in this community for first-class health care," said Assistant Secretary for Housing-Federal Housing Commissioner Brian D. Montgomery. "Also, the FHA financing will save the hospital approximately $7.6 million over the life of the loan and create approximately 120 jobs in the community, either in construction or health care."

Construction and operation of this modern medical facility in a very remote area of Utah will serve a population made up of more than 50 percent Native Americans. The Blue Mountain Hospital will provide medical, surgical, intensive care, and maternity inpatient services. It will also provide outpatient services including a clinic, emergency care, and renal dialysis. The sponsors are the Utah Navajo Health System, the Ute Mountain Ute Tribe, and two private individuals.

"The Department of Housing and Urban Development is to be commended for their commitment towards improving the health care available to the residents of San Juan County including members of the Navajo Nation, Ute Tribe, and others who live, work and travel in this area," said Utah Governor Jon Huntsman, Jr.

The total estimated project cost is $16.6 million. The additional $2.1 million will come from a direct loan provided by the U.S. Department of Agriculture's Communities and Facilities Program. Construction is to begin this month and is scheduled for completion in September 2007.

FHA helps hospitals all over the nation access affordable financing for capital projects like this one in Utah. Clients range from small rural facilities to some of the nation's top urban teaching hospitals. FHA insurance enables hospitals to enhance their creditworthiness because the United States Government backs their debt.

Since the Section 242 program began in 1969, FHA has issued $12.8 billion in insurance commitments for 350 hospital loans. In just the past year, FHA has insured more than $900 million in hospital loans in seven states.

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 and


Content Archived: March 15, 2011