BELHAVEN — The Town of Belhaven continues to meet obstacles in its efforts to reopen the hospital.

As of July 14, the letter of conditions for the $6 million United States Department of Agriculture loan has expired, according to Garland Burnette, director of community programs in Rural Development.

Burnette said that as of Friday, the USDA had not received a request from Pungo Medical Center, the nonprofit formed to run the hospital, for renewal.

The letter of conditions was sent to PMC and Belhaven Mayor Adam O’Neal on July 14, 2015, detailing the requirements to obtain the loan money.

The specific conditions included: obtaining a certificate of need, obtaining an unencumbered property title, participating in the Coastal Carolina Collaborative Accountable Care Organization and agreeing to repayment terms within the first three years of operation.

The letter stated that conditions must be met within 12 months of receiving it, or the USDA “reserves the right to discontinue the processing of the application.”

O’Neal said the town continues to assess potential plans but couldn’t say if PMC would apply for an extension.

“We have had communications with the USDA, and we’re keeping all of our options open,” he said. “The main thing is Belhaven needs a hospital reopened to stop the needless deaths and morbidity and the higher morbidity rate. … People are just getting sicker and sicker.”

O’Neal said the town is still pursuing a plan for veterans care with Strategic Health Care LLC, a group formed through a larger investment affiliate People’s Choice to focus on Belhaven specifically.

He said a $1 million deal is on the table to purchase the property from current owners Pantego Creek LLC.

Brantley Tillman, one of Pantego Creek’s four managers, said in a previous interview that the offer was not considered valid, as the managers could find no information on Strategic Health Care. But O’Neal argued that the reason was because the LLC was created recently for the veterans project in Belhaven.

Pantego Creek has remained firm in its decision to keep ownership of the property.

A USDA staff engineer dealt another blow to the reopening efforts after an inspection of the building in late April revealed substantial problems.

The engineer, whose name the USDA asked to be omitted, reported that he did not recommend using the facility for the proposed reopening, as there were failures in the roof’s structure, water infiltration, floors in danger of falling through and significant mold damage on the ceilings and walls. He also reported that some areas were impassable or would require protective gear.

According to the report, if the reopening project continues, PMC can expect significant capital costs to fix the problems, as well as the potentially for ongoing costs related to the damage.

But O’Neal said he doesn’t think the snapshots of the building represent it as a whole, and he feels as though it is still a viable option for a hospital facility.

“The property’s condition has been misrepresented continuously,” he said. “It’s time for these four (Pantego Creek managers) to do the right thing.”

The fight to reopen Belhaven’s hospital began after Vidant Health closed Vidant Pungo Hospital in 2014 due to operating at a deficit. The efforts have brought trips to federal and state courts, rallies with the state NAACP, two walks to Washington, D.C., and more recently a campout of some residents in front of the facility.

“We are still pursuing the hospital and will continue to,” O’Neal said.