|HUD No. 11-110
June 2, 2011
HUD APPROVES $14 MILLION FINANCING PLAN TO REPLACE CRITICAL ACCESS HOSPITAL IN COLUMBUS, MONTANA
WASHINGTON - The U.S. Department of Housing and Urban Development (HUD) today announced a commitment to insure a mortgage loan to the Stillwater Hospital Association in Columbus, Montana. The $14.3 million loan is made possible through the Federal Housing Administration's (FHA) Section 242 Hospital Mortgage Insurance Program.
The existing hospital was constructed more than 50 years ago. Space limitations and infrastructure problems in the aging structure necessitate replacement to better serve the community. The FHA-insured mortgage loan will be used to construct an entirely new facility with a new emergency room, inpatient and outpatient surgery areas, laboratory, imaging department, a primary care clinic, and a home health agency. Stillwater Hospital Association is managed by Billings Clinic, Billings, Montana, a tertiary-level hospital that owns and manages six other hospitals and physician clinics in South Central Montana and Wyoming.
"By supporting hospital projects like this one in Montana, FHA is not only helping to expand access to medical care, itis also contributing to the financial well-being of communities by creating jobs to stimulate local economies," said Acting FHA Commissioner Robert Ryan.
"Critical access hospitals like this one in Columbus are just that - critical - and it's essential they have the space and facilities to serve the critical needs of Montana patients. This loan to the Stillwater Hospital Association is a smart investment that will support a healthy community and economy for years to come by supporting life-saving care and good-paying Montana jobs during construction and beyond," said Montana's senior U.S. Senator Max Baucus.
By insuring the mortgage loan, FHA is enabling the hospital to obtain lower cost financing that will save an estimated $4.2 million in interest expense over the life of the loan. Since 1968, FHA has insured 397 mortgage loans totaling $17.1 billion to hospitals in 43 states and Puerto Rico.
FHA's Section 242 Mortgage Insurance Program for Hospitals enables hospitals to obtain capital to finance new construction and renovation of acute care hospitals. 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.