JACKSONVILLE, FL and NEW ORLEANS, LA – More than seven years after the devastation of Hurricane Katrina resulted in the shuttering of the former Pendleton Methodist Hospital, AMS Health Care Mortgage Corporation (“AMS”), a HUD-licensed mortgage lender, has secured an FHA 242 Hospital Mortgage Insurance Commitment from the U.S. Department of Housing and Urban Development (“HUD”), to restore acute care services to the 80,000 residents of New Orleans East. The $97.6 million loan to the Parish Hospital Service District of the Parish of Orleans – District “A” (“HSD”), a political subdivision of the State of Louisiana, will be used to construct a full service state-of-the-art 80 bed hospital offering inpatient and outpatient care. The loan, backed by the full faith and credit of the U.S. Treasury, will provide an exceptionally low fixed interest rate and amortize over a period of 25 years after completion of construction. AMS, HUD, and the entire project team worked diligently to secure HUD’s commitment prior to September 30, 2012, thus avoiding a mandated insurance premium increase that would have cost the HSD an additional $3.6 million over the life of the loan.
“This is an important milestone that could not have been achieved without the commitment, collaboration and hard work of the board and local legislators,” said Mayor Mitch Landrieu. “We are now one very important step closer to achieving our goal. The strength of the U.S. Government is now behind the financing of the New Orleans East Hospital and we will continue to move forward to bring this full service hospital to the New Orleans East community.”
AMS, an FHA approved mortgage lender, specializes in obtaining financing for hospitals and select residential care facilities, and is consistently the leading FHA 242 originating banker for new FHA 242 loans.