|HUD No. 10-222
October 4, 2010
HUD APPROVES $63 MILLION FINANCING PLAN TO FUND MAJOR ADDITION TO HOSPITAL IN WHEELING, WEST VIRGINIA
WASHINGTON - The U.S. Department of Housing and Urban Development (HUD) today announced a commitment to insure a mortgage loan to Wheeling Hospital in Wheeling, West Virginia. The $63 million loan is made possible through the Federal Housing Administration's (FHA) Section 242 Hospital Mortgage Insurance Program.
The existing hospital was constructed in 1975 and has outgrown its available space. The FHA-insured mortgage loan will be used to construct a new state-of-the-art, seven-story acute care patient tower attached to the main hospital building. The new facility will have a new emergency department, allow for relocation of 66 existing medical/surgical beds, and create four separate physician practice offices with exam rooms and support space.
"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 Wheeling Hospital construction project will support 716 full-time jobs and provide an estimated economic stimulus of almost $170 million to the community. Once completed, it is estimated the project will support 296 full-time jobs and provide an annual economic benefit of more than $40 million.
By insuring the mortgage loan, FHA is enabling the hospital to obtain lower cost financing that will save an estimated $24.5 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.