|HUD No. 10-218
October 4, 2010
HUD APPROVES $51.9 MILLION FINANCING PLAN FOR MAJOR CONSTRUCTION PROJECT AT HOSPITAL IN BUFFALO, NEW YORK
WASHINGTON - The U.S. Department of Housing and Urban Development (HUD) today announced a commitment to insure a mortgage loan to Kaleida Health for major construction at its Buffalo General Hospital facility in Buffalo, New York. The $51.9 million loan is made possible through the Federal Housing Administrations (FHA) Section 242 Hospital Mortgage Insurance Program.
Kaleida Health is the largest healthcare provider in Western New York. It operates five hospitals in Buffalo and its surrounding suburbs. It also operates several other wholly-owned subsidiaries and two charitable foundations. The construction project at Buffalo General Hospital will create a new 300-bed skilled nursing facility to replace two outdated nursing facilities.
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 Buffalo General Hospital construction project will support 755 full-time jobs and provide an estimated economic stimulus of almost $140 million to the community.
By insuring the mortgage loan, FHA is enabling the hospital to obtain lower cost financing that will save an estimated $22.1 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.