"Ever since I toured North Valley several months ago, we've been pushing to make this loan guarantee a reality," said Rep. Denny Rehberg, who lobbied hard for the HUD approval. "This funding will help the hospital begin an exciting new phase of service to the community. I just can't say enough about the folks at North Valley and the great work they do."
With the HUD approval, InnoVative Capital, LLC, the FHA mortgage lender and financial advisor, will begin locking in an interest rate for the Hospital's financing.
"With FHA mortgage insurance, critical access hospitals such as North Valley are able to borrow at very favorable financing rates," said Alan P. Richman, president and CEO of InnoVative Capital.
InnoVative Capital is nationally recognized for its financing of rural, community and critical access hospitals across the country. InnoVative Capital will continue to represent North Valley Hospital all the way through the project's construction to see that all FHA requirements are met.
North Valley Hospital, its lender and its project team will review the construction progress and examine all requested loan disbursements prior to their submission for final approval by HUD.
The project review team consists of North Valley Hospital's representative construction manager, American Hospital Facilities Development; Kalispell-based Swank Enterprises; InnoVative Capital; a title insurance company; the U.S. Department of Engineering Services; and HUD.
"Unfortunately, a proposed moratorium on the relocation of critical access hospitals set us back about six months," Aasved said. "Our hospital and medical staff persevered, along with our board of directors. They worked really hard throughout the planning process to keep our momentum and sustain the vision for North Valley Hospital."
The process began with the design of the new hospital and continued into the pre-application stages starting in February 2004. HUD representatives came to the Flathead Valley from Washington, D.C., to complete their site assessment, giving North Valley Hospital the "green light" to begin the application process.
"There will be many changes coming to the site at a more rapid pace," said Aasved. "Swank expects to have the framing steel on site within the next month, and the building itself will begin to take shape."
Every $10,000 given to the capital campaign prior to the completion of the hospital building will yield approximately $12,681 in savings over the life of the loan, she said.
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