HUD APPROVES $79.3 MILLION DEAL FOR MAJOR EXPANSION PROJECT AT NEW YORK'S HOSPITAL FOR SPECIAL SURGERY IN MANHATTAN

WASHINGTON - The U.S. Department of Housing and Urban Development today announced a commitment to insure a mortgage loan for the Hospital for Special Surgery (HSS) in Manhattan, New York. The $79.3 million loan, which will finance Phase II of a major expansion project, is made possible through the Federal Housing Administration's Section 242 Hospital Mortgage Insurance Program.

By insuring the mortgage loan, FHA is enabling the Hospital for Special Surgery to obtain lower cost financing, saving the hospital an estimated $11.7 million in interest expense over the life of the loan.

"By lowering the cost of credit, FHA is helping to build state-of-the-art health facilities all around the country," said Federal Housing Commissioner David Stevens. "The savings provided by FHA mortgage insurance will allow Manhattan's Hospital for Special Surgery to use more of its resources to provide quality medical care."

In 2005, the hospital undertook Phase I of its expansion and renovation plan, financed with donations and a $57.6 million HUD-insured mortgage. Phase I added operating rooms, an inpatient nursing unit, plus offices and support space. Phase II will continue to renovate and expand the complex to house two new inpatient nursing units, six additional operating rooms, an expanded pharmacy and pediatric rehabilitation departments.

This construction project will create approximately 600 full-time jobs and provide an estimated economic stimulus of $214 million to the community. Once completed, the project will provide an annual economic benefit of approximately $436 million and support more than 2,450 additional jobs throughout the community.

New York's Hospital for Special Surgery is a nationally recognized academic medical center specializing in orthopedics and rheumatology. It is a member of the New York-Presbyterian Healthcare System and an affiliate of the Weill Medical College of Cornell University. Its primary service area includes the five boroughs of New York City and its secondary service area includes the suburbs of New York City and parts of New Jersey and Connecticut.

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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