|HUD No. 11-239
October 3, 2011
HUD APPROVES $11.4 MILLION MORTGAGE TO EXPAND AND RENOVATE CRITICAL ACCESS HOSPITAL IN ELECTRA, TEXAS
WASHINGTON - The U.S. Department of Housing and Urban Development (HUD) today announced a commitment to insure a mortgage loan to the Electra Hospital District in Electra, Texas. The $11.4 million loan is made possible through the Federal Housing Administration's (FHA) Section 242 Hospital Mortgage Insurance Program.
The Electra Hospital District does business as Electra Memorial Hospital. The facility includes a 24-hour trauma center, laboratory, radiology, pharmacy, rehabilitation, physical therapy, surgery and cardiopulmonary services. The FHA-insured mortgage loan will be used to expand and renovate the facility to include a new 19-bed inpatient wing with eight private rooms, additional laboratory space, and updated mechanical, electrical, and plumbing systems.
"By supporting hospital projects like this one in Electra, Texas, FHA is not only helping to expand access to state-of-the-art health care facilities, it is also contributing to the financial well-being of communities by creating jobs and supporting local economies," said Acting FHA Commissioner Carol Galante.
HUD estimates the Electra Memorial Hospital construction project will support approximately 187 full-time jobs and provide an economic boost of more than $32.8 million to the community. Once completed, the project will provide an estimated economic benefit to the community of more than $1.6 million annually. HUD's estimates are based on results from an economic model used by public and private institutions to examine a variety of economic development issues.
By insuring the mortgage loan, FHA is enabling the hospital to obtain lower cost financing that will save an estimated $3.4 million in interest costs over the life of the loan. Since 1968, FHA has insured 400 mortgage loans totaling $17.4 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 http://espanol.hud.gov. You can also follow HUD on twitter @HUDgov, on facebook at www.facebook.com/HUD, or sign up for news alerts on HUD's News Listserv.