Stayton Hospital Gets $27.1 Million FHA Loan that Uses OFA Bonds.

HUD PR is HERE.

Santiam Memorial Hospital operates a 40-bed facility and three on-campus clinics, as well as off-site clinics in the nearby towns of Mill City, Sublimity, and Aumsville. The FHA-insured mortgage loan will be used to construct a four-story patient tower with private beds adjacent to the existing hospital building. This new tower will replace the outdated facility that was constructed in 1963. It will house medical/surgical units, an intensive care unit, surgical services, and obstetrics. The existing building will be refurbished and used as a chapel and to increase outpatient activity space....HUD estimates the Santiam Memorial Hospital construction project will support 394 full-time jobs and provide an estimated economic stimulus of more than $73.1 million to the community. Once completed, it is estimated the project will support 157 full-time jobs and provide an annual economic benefit of more than $26 million..

Oregon Facilities Authority Involvement. 

Other news stories seem to have missed the fact that the Oregon Facilities Authority authorized the sale of bonds for this project. 

Health facilities are one of a eligible OFA activities; I noticed that their agenda for meeting tomorrow includes a $6.3 million Central City Concern financing that will also use New Market Tax Credits: 

....for the issuance of revenue bonds in an aggregate principal amount not to exceed $6,300,000 (the "Bonds"). Bond proceeds will be used to (i) to finance a portion of the costs of and reimbursement of certain expenses associated with capital construction, improvement, and acquisition and installation of equipment, for a state licensed outpatient mental health and addiction treatment center of the Participating Institution and its affiliated entities located in Portland's Old Town, (ii) to finance a portion of the costs of and reimbursement of certain expenses associated with
capital construction, improvement, expansion, renovation and acquisition and installation of equipment, for the Old Town Clinic, a federally qualified health center of the Participating Institution and its affiliated entities, (iii) to fund a debt service reserve fund for the Bonds and (iv) pay costs of issuing the Bonds (collectively, the "Project"). The Project is being funded by a combination of federal HRSA funds, New Market Tax Credit proceeds and Bond proceeds.

Originally created and posted on the Oregon Housing Blog.

Corrected:Treasury Report on Build America Bonds: $90 Billion Nationwide, $2.3 Billion in Wa. State, But Only $22 Million in Oregon.

Correction: A couple of the links from Treasury did not work correctly, but they are now fixed. (Thanks for tip from reader for letting me know)
---
Treasury PR is HERE

The full report can be viewed HERE. Report says $90 billion in Build America bonds have been issued, with net present value savings of $12.3 billion compared to savings that regular tax exempt bonds would produce.

The complete list of bond issues organized by state is available in Excel HERE.

This report shows Oregon had only 2 bond issues for $22 Million vs 78 bond issues totalling $2.3 BILLION in Washington state.

In a prior post HERE, I projected that legislation enacted during the special session earlier this year MAY result in a substantial increase in the use of Build America bonds in Oregon.

Originally created and posted on the Oregon Housing Blog.

Correction: Two Items from OFA Meeting Tuesday.

Correction: I have learned that Sequoia project location is actually in Aloha, not Beverton. Text below has been changed...
-------

Two tidbits from the Tuesday meeting (prior post is HERE) on two projects granted preliminary approval:

1. Firm Commitment application for FHA Insured Section 242 Hospital loan for project in Stayton had been submitted to HUD HQS the day before the meeting. Applicant is hoping for 60-90 days until firm commitment, with initial endorsement sometime in July.
2. Application from Sequoia Mental Health Services is to rebuild offices and is related to a FY 2008 HUD funded Section 811 project, with a condominium structure being used to separate the two uses. This Aloha project has also received HUD HOME and CDBG funds (a HUD trifecta ?). From January 2009 HUD press release, details about the 811 funding for this project:

Section 811 - Supportive Housing for Persons with Disabilities

Project Location : Aloha, OR

Non-Profit Sponsor : Sequoia Mental Health Services

Capital Advance : $1,862,800

Three-year rental subsidy: $147,600

Number of units : 15

Project Description :

The funds will be used to construct 14 one-bedroom units and a resident manager's unit for very low-income persons with chronic mental illnesses. These units will be developed as part of the new Sequoia Mental Health Service Center in Aloha, Oregon. The first floors of the building will be office space with the Section 811 units constructed above. The building is in a residential and small business neighborhood with various local service providers' offices less than a mile away.

Originally created and posted on the Oregon Housing Blog.

Tuesday Meet of the Oregon Facilities Authority Would Bring Approvals to $385 Million, Includes FHA Insured Hospital, and Reduced Future Disclosures?

The next OFA meeting is scheduled for next Tuesday, March 16, 1:15 p.m. - 3:15 p.m. Meeting details:

K&L Gates, LLP, 222 SW Columbia St.,KOIN Conference Room, To attend by teleconference, Dial-In #: 888-529-0350, Participant Passcode: 503 802 2102

I have updated the OFA CY 2010 Meeting Packets link in the right pane to include the March packet.

Three agenda items I have noted (Bookmarks panel in meeting packets has links to these items).

1.$33 Million FHA Insured Hospital in Stayton. Preliminary approval is recommended for a $33 Million FHA hospital loan in Stayton, Oregon. Packet indicates this would be for "construction of an approximately 50,000 ft medical facility in which the Applicant will provide surgical services, obstetrical services, and intensive care unit services."

2. $32 Million Willamette University Preliminary Approval.

3. Admin Rule Discussion to Reduce Transparency Seems Odd Given $385 Million in Deals to Date, and Push for Greater Governmental Transparency.
I count a total of $385 million in OFA approvals or pending approvals to date. As a result of concerns from some lenders, OFA will begin discussing upcoming Admin rule changes that would reduce disclosure on at least some OFA deals. This seems inconsistent with the trend toward greater governmental transparency, especially since OFA bond issuance is substantially higher than in recent years.

Originally created and posted on the Oregon Housing Blog.

Oregon Facilities Authority Feb 16th Meeting Agenda: 6th Rental Project Refinancing Approval in Last Month.

The February 16th meeting of the Oregon Facilities Authority will include final consideration of a $1.315 million bond issue to refinance a 60 unit LIHTC downtown Portland rental project (Morrison Park Apartments) owned by the non profit, Innovative Housing. This would be the 6th rental project refinancing approved by OFA in the last month(my earlier post about Central City Concern refinancing of 5 rental project is HERE; Total units in these 6 projects are 513 units).

The Feb 16th. Board packet contains other information, including a proposal to eliminate an existing review of lender underwriting by the OFA Financial Advisor, and a OFA bill [HB 3646] now in the Oregon House that would expand the types of loans OFA can offer.

Where to Find Cumulative CY 2010 OFA Board Packets
Similar to what I have done for both HAP and the Oregon Housing Council meetings, I have begun a calendar year cumulative packet of Board materials for the Oregon Facilities Authority in the right pane of the blog. The current posting includes the Board packet for the February 16th meeting.

Look in the right pane AND/OR bookmark " OFA CY 2010 Meeting Packets" to find all the Board packets for OFA for CY 2010. (postings begin with February meetings, the first meetings where information posted on the OFA website).

Originally created and posted on the Oregon Housing Blog.