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Solihull Metropolitan Borough Council says the homes do not help people live independent lives.
Bosses say it would be cheaper to help them live at home or give them council-funded places in private care homes instead.
The move would close Sunhaven in Solihull Lodge for OAPs and homes for people with learning disabilities including Downing Close, Three Gates and Hurst Green Road in Knowle.
The council is now talking to residents, their families staff and others involved ahead of a formal consultation.
It has put forward the options of doing nothing or investing in existing services – yet a council report makes it clear that closure is SMBC’s favoured option.
Decisions would take affect from February 2012.
The move will ‘enable a shift of investment away from expensive and institutional forms of care and treatment to a greater choice of support located at, or near to, peoples own homes’.
It says: “People and communities will be supported to take greater responsibility for their own health and well being and assisted to gain access to personalised services which promote health and dignity, prevent illness and prolong independence.”
It argues the homes do not meet peoples’ expectations with small bedrooms, lack of ensuite facilities and constraints on couples living together.
Ten of the 13 homes for people with learning disabilities – including the three in Knowle – are rated good by the Care Quality Commission, the national care regulator.
The other three are rated adequate.
Sunhaven is rated good. It is closed to new residents as it is ‘very difficult to provide high quality care with dignity and respect for individual preferences’ the council says.
Yet the council acknowledges its lack of cash ‘underpins’ the move because of ‘substantial reductions’ from Government.
“Consequently, careful consideration has to be given to securing the most cost effective means to provide safe high quality services,” the report says.
Already most placements are in the independent sector, £13.8m out of £14.9m for about 500 OAPs
Some £10.8m out of £11.9m for 44 people with learning disabilities.
It says this costs about £427 for OAPs compared to £939 in house and £1,105 and £1,013 for people with learning disabilities.
Support to live at home costs about £160, it says. And people can now choose how to spend their care cash, meaning fewer are expected to use the centres.
The council says the number of older people and those with learning disabilities is set to increase, putting pressure on services.
It says keeping the homes would only put off further reviews or the time when they are not ‘fit for purpose’.
They would need £1m upgrading work – money the council says it does not have.
The Knowle properties house 11 people and need ‘minor work’ worth £143,000, a council survey found.
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