HUD to Insure Hospital Construction Loan

WILLAMETTE, Ore. — The U.S. Department of Housing and Urban Development has made it possible for work to begin on a hospital project in Stayton, Ore., by insuring a $21.7 million mortgage loan for construction, according to reports.

Officials with Santiam Memorial Hospital had been waiting for construction to start on a new four-story patient tower that will replace an aging tower built in 1953,  but could not do so without the final bit of financing in place. The commitment to insure the mortgage was made by HUD, the agency said in a written statement.

HUDs backing of the loan will enable the hospital to get lower-cost financing, resulting in a savings of $12.4 million in interest over the life of the loan, according to reports.

The bottom floor of the tower will house materials management and central supplies, according to Maggie Hudson, a hospital administrator. The main floor will house and outpatient surgery center, and the second floor will feature a family birth center and inpatient surgical center. The third floor will also be an inpatient surgical wing and will be home to the ICU.  In all, the tower will add approximately 46,000 square feet to the existing facility.  The bed count in the 40-bed hospital will remain the same.