June 30, 2011

New Markets Loan for Monticello Primary Care Expansion

“A key challenge of expanding primary care is access to affordable capital financing, even for well-run, high-quality health center networks like Hudson River HealthCare,” said Ronda Kotelchuck, PCDC Executive Director. “That’s why we are thrilled that this loan will have such a direct impact on patients by helping Hudson River HealthCare expand much needed primary care services in Downtown Monticello.”

Hudson River MonticelloWith $2.85 million in financing from the Primary Care Development Corporation (PCDC), Hudson River HealthCare (HRHC) has acquired prime downtown Monticello property to expand primary care and dental services to low-income patients in Monticello and surrounding communities. A federal grant for $200,000 secured by Rep. Maurice Hinchey (D-NY) will help purchase needed equipment for the new center.

Drawing more than 10,000 patient visits per year and employing 32 full-time health workers, the health center is now a major anchor helping to revitalize struggling Downtown Monticello. HRHC began leasing the 10,000 square foot property at 23 Lakewood Ave. in 2007 and provides primary care to a diverse community in great need; more than one-third of the population is below the poverty line and rates of diabetes, asthma, and heart disease are well above the statewide average. The financing enabled HRHC to purchase and renovate 23 Lakewood Ave., which provides expanded primary care services like preventive care for families, chronic care management for diabetes and hypertension, HIV services, prenatal services, and podiatry; and add capacity at neighboring 19 Lakewood Ave. (3,100 sq. ft), which will provide essential dental services.

“This community has long needed additional access to quality health care,” said Anne Kauffman Nolon, President and CEO of Hudson River HealthCare. “But with the federal commitment from Congressman Hinchey and low-cost financing from PCDC, we are able to establish a major health center in Downtown Monticello, and provide necessary primary and dental care to thousands of patients in the community.” PCDC provided the $2.85 million loan through its $40 million New Markets Loan Program, which offers below-market, long-term fixed rate loans to expand primary care in low-income communities.

The 25-year loan carries a fixed interest rate of 4.77%, and the loan is structured so that up to 26% of the principal amount may be forgiven. Operated in conjunction with HSBC Bank, USA, N.A., the landmark investment in primary care is made possible by the U.S. Treasury Department’s New Markets Tax Credits (NMTC) Program.