|HUD No. 10-217
October 4, 2010
HUD APPROVES $322 MILLION FINANCING PLAN TO FUND MAJOR ADDITION TO HOSPITAL IN ALBANY, NEW YORK
WASHINGTON - The U.S. Department of Housing and Urban Development (HUD) today announced a commitment to insure a mortgage loan to Albany Medical Center Hospital in Albany, New York. The $322 million loan is made possible through the Federal Housing Administration's (FHA) Section 242 Hospital Mortgage Insurance Program.
Albany Medical Center Hospital is a 631-bed academic medical facility. The FHA-insured mortgage loan will be used to renovate the existing hospital building and construct a new six-story patient tower and a cogeneration plant to provide additional power. The project will address the hospital's growing capacity constraints allowing for an additional 83 new beds. The loan will also be used to refinance existing hospital debt.
"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 Albany Medical Center Hospital construction project will support 2,439 full-time jobs and provide an estimated economic stimulus of almost $835 million to the community. Once completed, it is estimated the project will support 2,508 full-time jobs and provide an annual economic benefit of more than $436 million.
By insuring the mortgage loan, FHA is enabling the hospital to obtain lower cost financing that will save an estimated $132.8 million in interest expense over the life of the loan. Since 1968, FHA has insured 392 mortgages to hospitals throughout the nation, 51 within the past five years.
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.