NEW ORLEANS Plans are moving forward to bring a new hospital to New Orleans East, with federal housing officials committing to a mortgage loan of nearly $98 million to build the facility.

Mayor Mitch Landrieu on Monday announced that the Dept. of Housing and Urban Development has committed to the loan which will fund the hospital construction.

The hospital will be built at the former site of the Pendleton Memorial Methodist Hospital.That building is already being demolished.

Officials say the financing from HUD is a crucial step in giving residents of New Orleans East access to health care.

'One of my primary commitments as mayor was to bring health care security to the east and today is a great step towards achieving that goal,'said Landrieu. 'So today we have full and final funding, we're ready to break ground and open that hospital.'

City officials say the $130 million facility will provide full-service health care to residents once it opens.

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