Ashlands in Methley had been heavily criticised by the health and social care watchdog in two separate inspections.
As reported in the Yorkshire Evening Post last month, the home was rated inadequate for a second time by the Care Quality Commission (CQC) after a visit this summer.
Now managers at the privately-run home, which provides nursing and dementia care, have confirmed it will close on December 16. A spokesman for Roche Healthcare, which owns Ashlands, blamed financial pressures.
He said: “The closure of Ashlands is regrettable but necessary – and is attributable to the lack of available resources and finances required to deliver the high level of care needed to meet the complex needs of some of the most vulnerable adults in health and social care.
“Since coming to this decision, we have been working closely with commissioners in Leeds City Council to support our residents and relatives to secure alternative accommodation and would like to thank relatives for their continued support during this unsettling time.”
Arrangements are being put in place to find new accommodation for the 31 residents.
The CQC first criticised the home for not being safe, caring or effective in January. A further inspection took place this summer.
Leeds City Council told the YEP it monitored standards of care closely and took action if problems were identified. A spokesman added: “If a care provider decides to close a care home, our adult social care team will work closely with the provider and other relevant organisations in the city to offer support to residents to help them secure alternative accommodation.”