WASHINGTON (WTOC) - The U.S. Department of Housing and Urban Development plans to insure a mortgage loan to the Effingham County Hospital Authority in Springfield. The $31 million loan is being granted through the Federal Housing Administration's Section 242 Hospital Mortgage Insurance Program.
The FHA-backed loan will be used to finance an addition to the facility that will include a new emergency room, inpatient and outpatient surgery areas, laboratory and imaging departments, according to HUD. Renovations also include an upgrade to an existing space for a dedicated Alzheimer's unit.
The Effingham County Hospital Authority construction project will support 342 full-time jobs and provide an estimated economic stimulus of more than $80.8 million to the community, according to HUD's estimates. Upon completion, it is estimated the project will support 142 full-time jobs and provide an annual economic benefit of $22.7 million, according to HUD.
FHA insured loan will save the hospital authority an estimated $6.2 million in interest expense over the life of the loan, according to HUD.