AFL-CIO Housing Investment Trust Invests $22 Million in New Critical Access Hospital in Coquille, Oregon

AFL-CIO Housing Investment Trust Invests $22 Million in New Critical Access Hospital in Coquille, Oregon

PR Newswire

COQUILLE, Ore., Feb. 1, 2011

Project Will be Union Financed and Built

COQUILLE, Ore., Feb. 1, 2011 /PRNewswire-USNewswire/ -- The AFL-CIO Housing Investment Trust (HIT) announced today a $22 million investment to build a new medical facility in Coquille. The extension to the adjacent Coquille Valley Hospital has been designated a "critical access" facility because of the need for medical care in this rural community.

The construction project, which will be 100 percent union-built and create approximately 225 constructions jobs, is the first project funded by the HIT that will utilize Build America Bonds.  The bonds were introduced in 2009 as part of President Obama's American Recovery and Reinvestment Act to create jobs and stimulate the economy.

"I'm very pleased that union pension dollars are helping improve the quality of healthcare services for families in Oregon, which is my home state," said Liz Shuler, AFL-CIO Secretary-Treasurer and a member of the HIT Board of Trustees.  "The HIT investment will generate much-needed jobs for local union construction workers and the new hospital will help increase access to life-saving medical services for the residents of Oregon's beautiful Coquille Valley."  

The new 60,000 square-foot, three-story structure will have 16 beds and house primary medical departments including surgery, obstetrics, therapy, laboratory, a pharmacy, an emergency room as well as administrative and support offices. The project's total development cost is $30 million.

Coquille Valley Hospital first opened its doors in 1970 and has continued to expand to better serve the growing population of this timber and farming community in southwestern Oregon. The Coquille Valley Hospital District was certified as a Medicare "critical access hospital" (CAH) under federal law in 2003. CAHs serve rural areas that would not otherwise have access to emergency and certain other types of medical services.  

HIT Investment Officer Chris Shaw said the HIT is excited about utilizing the Build America Bonds.  "This is the HIT's first project in Oregon, and we look forward to participating in the President's American Recovery and Reinvestment Act program," Mr. Shaw said.  "This project is a win-win because it will bring needed medical care to the community, while creating jobs and stimulating the local economy."

Pat Smith, Secretary-Treasurer of the Lane, Coos, Curry and Douglas Counties Building and Construction Trades Council, said, "Our members appreciate that the HIT will invest in this project and provide considerable construction work for union members. Coquille Valley Hospital is an important part of this community, and I'm proud that the new facility will be built 100% union."

The union construction jobs generated by the project put the HIT on track to achieve its goal of generating 10,000 union construction jobs by the spring of this year through the investment of union pension capital. The HIT's Construction Jobs Initiative is 90% of the way to its 10,000-job goal. To date, the HIT has committed over $695 million for 29 projects representing nearly 9,000 union construction jobs and $1.5 billion of development for communities across the country.

About the HIT

The AFL-CIO Housing Investment Trust is a fixed-income investment company registered with the Securities and Exchange Commission. It manages nearly $3.9 billion in assets for approximately 350 investors, which include union and public employee pension plans. The HIT invests primarily in government and agency insured and guaranteed multifamily and single family mortgage-backed securities.  The HIT is one of the earliest and most successful practitioners of socially responsible, economically targeted investing, with a track record that demonstrates the added value derived from union-friendly investments.  The investment objective of the HIT is to provide competitive returns for its investors and to promote the collateral objectives of constructing affordable housing and generating employment for union members in the construction trades and related industries.  Since its inception, the HIT has invested $6 billion to finance more than 97,000 units of housing nationwide, generating over 66,000 union jobs.

Contact:  Michael K. Frisby (202) 625-4328

SOURCE AFL-CIO Housing Investment Trust

Comments (0)

This discussion is now closed. We welcome comments on our articles for a limited period after their publication.