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Loan Clinches Funding For New NOLA Hospital

The US Department of Housing and Urban Development has approved money for the construction of a new hospital in New Orleans East.

Mayor Mitch Landrieu announced the $97.6-million loan on Monday and said it will keep plans on schedule.

The $130-million project is set for the site of the former Pendleton Memorial Methodist Hospital, which sustained major damage during Hurricane Katrina.

At a press conference, City Health Commissioner Dr. Karen DeSalvo said the loan from HUD is a critical milestone to restoring hospital services to New Orleans East.

"It's just a great joy to be able to announce that we've completed the financing so we can keep moving expeditiously on getting services back to that community," said DeSalvo.

Landrieu's office said the 80-bed hospital is slated to be finished by December 2013.