Artist's drawing of New Mexico Children's Hospital and Critical Care Pavilion.

In October 2004, former Assistant Secretary for Housing, Dr. John C. Weicher, was on hand to make the formal funding announcement and to congratulate the sponsors and community partners for their roles in the project and dedication to serving the medically underserved population of New Mexico.

Dr. Weicher thanked Steve McKernan, CEO of UNM Hospitals, Louis Caldera, President of UNM, and Dr. R. Philip Eaton, Vice President for the UNM Health Sciences Center. He also told those on hand for the celebration, "We are glad to be embarking on this partnership with the hospital and with the University to ensure that this institution continues to be able to provide world class care and to do so in a modern, efficient facility, the kind of facility that this community deserves." He then added, "This is clearly a vital hospital to not only the community of Albuquerque, but to the entire State of New Mexico."

The new Children's Hospital Expansion Project is the state's largest capital improvement project to date with $193 million in bonds being sold. Of the $193 million bonds sold, $8 million were purchased by UNM faculty and staff. This coupled with the State Legislature's $40 million contribution from tobacco tax monies, shows strong commitment from both the state and local level. However, without the HUD/FHA Section 242 financing, complete funding for this project would not have been possible.

HUD's Section 242 Mortgage Insurance for Hospitals provides HUD-insured mortgages made by private lending institutions to finance construction or renovation of public or private nonprofit and proprietary hospitals including major equipment needed to operate the facility. The funding sources may be private lending institutions, mortgage banks, and commercial lenders. The eligible applicants can be public, proprietary, and nonprofit hospitals certified by the responsible State agency in accordance with Section 604(a)(1) or Section 1521 of the Public Health Service Act.

According to Dr. R. Philip Eaton, the Executive Vice President for the UNM Health Sciences Center and who also spoke during the celebration event, "The new Children's Hospital and Critical Care Pavilion will change the face of patient care in New Mexico, and this grand new facility will also provide the space needed for our medical students as we train tomorrow's doctors."