February 20, 2004
HUD ANNOUNCES $24.2 MILLION COMMITMENT TO REPLACE AGING TEXAS HOSPITAL
Hospital Loan Insurance Program Benefits Communities and Families
WASHINGTON -- The U.S. Department of Housing and Urban Development today issued a commitment to insure a $24.2 million mortgage loan for St. Mark's Medical Center in La Grange, Texas. The mortgage, insured under the Federal Housing Administration (FHA) Section 242 Hospital Mortgage Insurance program, will support the construction of an entirely new $27.5 million facility in La Grange, serving both Lee and Fayette counties, southeast of Austin.
"The HUD mortgage insurance will save St. Mark's $4.6 million over the life of the loan and enable this new Medical Center to better serve the surrounding community, in addition to creating 125 construction jobs," said Assistant Secretary for Housing-Federal Housing Commissioner John C. Weicher.
The not-for-profit St. Mark's Medical Center will replace 84-year old Fayette Memorial Hospital, which will close after the completion of St. Mark's. The new state-of-the-art facility will be approximately 93,000 square feet and include 48 medical/surgical beds and an additional 17 short stay beds.
FHA helps hospitals all over the nation access affordable financing for capital projects like this one in Texas. Since the program began in 1968, FHA has insured ovear 320 hospital mortgages for a total in excess of $9.4 billion. 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.
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 as well as enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet and espanol.hud.gov.