A single case of COVID-19 has been confirmed at Aristocrat Manor Apartments, an executive with the Little Rock outfit that owns and manages the downtown property at 240 Central Ave. confirmed Wednesday.
A notice management gave residents Wednesday advised them not to leave their apartments unless it's necessary. The former hotel is a Section 8 property where residents receive rent assistance from the U.S. Department of Housing and Urban Development. The 101 units are reserved for low-income tenants 62 or older or disabled.
Rent roll records The Sentinel-Record obtained showed Coffman Investment Co., the property's owner and manager, receives more than $60,000 a month in Housing Assistance Payments. A letter HUD sent Coffman last September said under the HAP agreement that was renewed earlier this year rents should be set at $906 and $937 a month for the efficiency apartments.
Coffman has said the cost includes utilities.
"We were informed (Wednesday) that someone in the building has tested positive for COVID-19," the notice said, according to a copy obtained by The Sentinel-Record. "At this time, we would like to remind all of our residents to practice social distancing, do not leave your apartment unless you absolutely have to, follow proper hand-washing and sanitizing procedures and wear a mask if you must leave your apartment.
"We will continue to keep our common areas closed for the time being. Be assured, we want to keep all of our staff and residents safe and healthy, especially during this pandemic. We are continuing with our no visitor policy other than scheduled aides and nurses."
Kayla LaCasse, an executive with Coffman, confirmed the notice was issued Wednesday.
"We did put a notice out today, because we do have a positive case," she said. "I can't say who to protect their privacy, but we are doing all the precautionary necessities to prevent it from spreading."
It's unclear if a resident or staff member tested positive, as LaCasse said privacy concerns prevented her from providing further information.
The Arkansas Department of Health declined to comment on the notice the Aristocrat issued Wednesday, saying it's unable to discuss individual patients. ADH releases regular case reports from nursing homes and other congregate facilities, but a spokesperson said Wednesday that apartment buildings aren't considered congregate settings for the purposes of reporting case information.
The Aristocrat received a 99 out of 100 possible points on the Real Estate Assessment Center inspection conducted in March, according to a copy of the inspection report HUD provided in response to a records request. The inspection was a follow-up to the January 2019 inspection that resulted in a score of 45.
A score of 59 or lower subjects Section 8 properties to HUD enforcement action and annual review. The 79 the property scored in 2017 subjected it to annual review. Properties scoring 90 or higher are inspected every three years. The Aristocrat has noted it received scores of 95, 87 and 91 in 2014, 2012 and 2009.
"The property management complied with direction from HUD regarding its physical condition, resulting in an improved score after the 2019 inspection," HUD said in an email. "The system worked as intended, bringing a low scorer up to acceptable levels. HUD's Uniform Physical Condition Standards (UPCS) were utilized for both physical inspections."
Last year, HUD gave the property six months to correct more than two dozen city code violations and maintenance issues revealed during the 2019 inspection, threatening to bring in a third party to manage the property if the issues weren't addressed.
The admonition came after HUD notified the Aristocrat it was in default of the 2000 agreement entitling it to Section 8 rent subsidies. The agreement was renewed earlier this year for a term of 20 years, according to a copy of the agreement HUD provided.
HUD set fair market rent for an efficiency apartment in Garland County at $569 a month during the federal fiscal year that ends this month, but the agency said FMR doesn't apply to multifamily properties such as the Aristocrat.
The Aristocrat isn't one of the more than 600 Section 8 properties regulated by the Hot Springs Housing Authority. HUD contracts the Southwest Housing Compliance Corp., a subsidiary of the housing authority in Austin, Texas, to oversee the Aristocrat.
The converted hotel was added to the National Register of Historic Places in 2017.