|HUD No. 11-237
(202) 708 - 0685
October 3, 2011
HUD APPROVES $15 MILLION MORTGAGE TO RENOVATE AND EXPAND ACUTE CARE HOSPITAL IN SCHENECTADY, NEW YORK
WASHINGTON - The U.S. Department of Housing and Urban Development (HUD) today announced a commitment to insure a mortgage loan to Ellis Hospital in Schenectady, New York. The $15 million loan is made possible through the Federal Housing Administration's (FHA) Section 241 Supplemental Mortgage Insurance Program.
Ellis Hospital is a multi-campus, not-for-profit healthcare provider with hospitals, clinics, and physician offices located throughout the Schenectady area. Ellis has two existing FHA-insured mortgages through the Federal Housing Administration's (FHA) Section 242 Hospital Mortgage Insurance Program.
The Supplemental mortgage loan will renovate and expand Ellis Hospital's Bellevue Woman's Care Center. The project will include replacing 28 semi-private rooms in its 40-bed facility with private rooms, adding a three-bay triage room for incoming patients, enlarging the 15-bed neonatal unit, and performing other projects to modernize the facility.
"FHA is helping to build and modernize health care facilities like this all across the country," said FHA Acting Commissioner Carol Galante. "By helping to make these projects possible, FHA also contributes to the financial well-being of communities by creating jobs and supporting local economies."
HUD estimates the Ellis Hospital construction project will support nearly 180 full-time jobs and provide an economic boost of more than $42 million to the community. 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 $3.6 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 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 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.