"We need to move faster in securing a better location or better option," said Arkansas VA Director Cissy Rucker.
Rucker was recently appointed to the position by Gov. Mike Beebe. She says she has inherited a mess.
KARK followed along with Rucker on a first-hand look at the home's condition--crumbling walls, backed up sewers, and freezers that are freezing over.
Documents obtained by KARK through a public records request spotlight other issues that have been going on for the past few years.
Among them: 20 incidents where resident rooms were in disrepair; dirty floors and no toilet paper in the restroom, and no fire alarm system alert.
Rucker this summer decided to shut down the home and start relocating the 60 veterans who live there to other nursing homes.
As it stands, the state does not have the money to build a new facility.
And a report released on Monday says the cost to renovate or repair the Little Rock home will cost between $7.5 million and $10 million.
Arkansas American Legion Commander Mary Erdman is concerned about the state's ability to take of current veterans and the new generation of veterans that will need care.
"We have a lot more survivors than there used to be," Erdman said, adding "There's going to be more need for those veterans to be taken care of in the future."
Some veterans groups are outraged.
On Thursday, half a dozen groups plan to rally at the capitol to demand better treatment and care for vets.
Rucker says her agency is looking into other options to find the funding to build a new home or look at other options such as smaller foster care style facilities.