ALBANY – Orange Regional Medical Center will now be able to secure bonds to help pay for the construction of its new hospital in the Town of Wallkill with bonds from the state Dormitory Authority.

Legislation sponsored by Assemblywoman Aileen Gunther, which will allow more project funds for medical facilities, has been signed into law by Governor Paterson.

Until now, the Dormitory authority could provide project bonds totaling $13.4 billion for not-for-profit hospitals and nursing homes to fund mortgages or project loans. That cap has been raised in the new law to $14.2 billion and that, said Gunther, will allow ORMC to secure bonds to help pay for the $255 million project.

Under the plan, the hospital will combine its two current campuses – Horton in the City of Middletown and Arden Hill in Goshen – under one roof at the new center in Wallkill.

Site excavation has begun and a formal groundbreaking is set for this spring.