A disability support agency in Newcastle has reported three positive COVID-19 cases among staff members servicing group living homes in Glendale, Lambton and Merewether.
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ConnectAbility chief executive David Carey said on Wednesday that latest tests on residents in at least one of the three homes had come back negative.
He said the 10 to 12 residents across the three homes would continue to be tested in coming days.
All residents at the homes had received one dose of vaccinations and most staff had also been vaccinated once.
"Many of these residents have severe and profound intellectual disabilities, and some don't understand what the pandemic is," Mr Carey said.
The agency was advised late Monday evening that a staff member had tested positive.
The employee had been tested for the coronavirus on August 12 and returned a negative result.
The person had worked at one of the homes between testing negative and returning a positive result on Monday.
Two more staff had since tested positive.
"We have followed instructions from NSW Health and on Monday night commenced standing affected staff down on pay and quarantining the residents, who are now being supported by non-affected staff," ConnectAbility said in a media statement.
"We continue to work with NSW Health and in collaboration with other agencies are implementing additional infection control and other measures to safeguard the health and welfare of customers.
"Staff and residents are undergoing COVID testing and remain in isolation. Tailored supports will be provided to customers during this time."
It said the affected premises and any vehicles would undergo deep cleaning.
Mr Carey said visitors to the three homes had been signing a register and undergoing temperature checks.
"None of the visitors, families or doctors, have fallen into the time periods when the staff were at the homes," he said.
"But the contact tracers are going through where the staff might have been outside work."
NSW recorded 633 new cases of community transmission in the 24 hours to 8pm on Tuesday.
Three people joined the latest outbreak's growing death toll, which now stands at 60.
Two unvaccinated men, one in his 60s and another in his 70s, and a man in his 70s who had received one dose succumbed to the illness.
NSW has recorded 9280 cases of community transmission since June 16.