|HUD No. 09-038
April 23, 2009
HUD APPROVES $84.7 MILLION DEAL TO CONSTRUCT 65-BED HOSPITAL IN VIDALIA, GEORGIA
First FHA-Insured Hospital Loan in the State of Georgia
WASHINGTON - The U.S. Department of Housing and Urban Development today announced a commitment to insure a loan to Meadows Regional Medical Center (MRMC) in Vidalia, Georgia to construct a new 65-bed hospital to replace an existing 45-year-old facility. The $84.7 million loan is made possible through the Federal Housing Administration's Section 242 Hospital Mortgage Insurance Program and is the first FHA-insured hospital loan in the state of Georgia.
The project will construct a 195,000-square foot replacement facility that will include 16 examination and trauma rooms in addition to the 65 available beds. By insuring the mortgage loan, FHA is enabling Meadows Regional Medical Center to obtain lower cost financing, saving the hospital an estimated $14 million in interest payments throughout the life of the loan. When finished, the new medical center will be the largest construction project completed in Vidalia in over 20 years.
"FHA's hospital mortgage insurance will allow this award-winning hospital to continue its high level of service to the community by bringing a new state-of-the-art medical center to Vidalia," said HUD Secretary Shaun Donovan. "By lowering the cost of credit, FHA will allow Meadows Regional Medical Center to use more of its resources to do what it does best - providing quality medical care."
"In these turbulent economic times, we would not be able to proceed with this project without the assistance of HUD," commented MRMC CEO Alan Kent. "I have been extremely impressed with the professionalism and support of the of the HUD staff throughout the application process."
The MRMC construction project will create more than 900 full-time jobs and provide an economic stimulus of almost $207 million during the construction period. Once completed, the new Meadows Regional Medical Center will support more than 340 jobs in the community, and provide an annual economic benefit of approximately $50 million.
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. The eligible applicants can be public, proprietary, or nonprofit hospitals certified by the responsible State agency.
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