|HUD No. 10-208
September 23, 2010
HUD APPROVES $143.4 MILLION FINANCING PLAN TO BUILD STATE-OF-THE-ART HOSPITAL IN RIO RANCHO, NEW MEXICO
WASHINGTON - The U.S. Department of Housing and Urban Development (HUD) today announced a commitment to insure a mortgage loan to University of New Mexico Sandoval Regional Medical Center (SRMC) in Rio Rancho, New Mexico. The $143.4 million loan is made possible through the Federal Housing Administration's (FHA) Section 242 Hospital Mortgage Insurance Program.
A primary purpose of the new facility is to relieve overcrowding at the University of New Mexico Hospital (UNMH). UNMH obtained a $183.4 million Section 242 FHA-insured loan in 2004 and is now faced with a medical/surgical occupancy of 110 percent.
The new project will include construction of a new, 200,000 square foot, 68-bed hospital and a 40,000 square foot connected medical office building. The SRMC project will be a start-up, state-of-the-art, community teaching hospital with a high surgical case load.
"FHA is helping to build state-of-the-art health care facilities like this all across the country," 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."
HUD estimates the Sandoval Regional Medical Center construction project will support 1,877 full-time jobs and provide an estimated economic stimulus of more than $386 million to the community. Once completed, it is estimated the project will support 1,521full-time jobs and provide an annual economic benefit of more than $253 million.
The hospital will provide inpatient and outpatient services including cardiology, gastroenterology, general medicine, general surgery, orthopedics, oncology, pulmonary, and behavioral health. In addition to the inpatient beds, the hospital will have six operating rooms and a 13-bay Emergency Department/trauma center. Emphasis will be placed on developing an orthopedic joint replacement program. Typical ancillary support services will be provided. Space will also be provided for clinical teaching.
By insuring the mortgage loan, FHA is enabling the hospital to obtain lower cost financing that will save an estimated $64.7 million in interest expense over the life of the loan. Since 1968, FHA has insured 386 mortgages to hospitals throughout the nation, 45 within the past five years.
SRMC will be physically located on 18 acres of land, currently owned by UNM. This site is adjacent to the UNM West campus and the Rio Rancho Campus of Central New Mexico Community College. The hospital footprint is designed to eventually accommodate a 300-bed facility.
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's mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD is working to strengthen the housing market to bolster the economy and protect consumers; meet the need for quality affordable rental homes: utilize housing as a platform for improving quality of life; build inclusive and sustainable communities free from discrimination; and transform the way HUD does business. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov.