SOMERVILLE, MA – Licensed residential care facility The Somerville Home announced Wednesday that it will cease operations and close by the end of the year. The decision to close is voluntary and due to financial reasons, according to a statement from the nonprofit.

The Somerville Home was incorporated in 1898 and operates a 59-bed Level IV rest home for senior citizens on Summer Street. The current building was constructed in 1927. There are currently 46 residents living at the facility, most of whom have their care paid for by the state, and 26 employees, the organization said.

"The state's rate of reimbursement, which is far below the cost of delivering care, has led the Board of Directors to conclude that the rest home model is no longer financially sustainable for this organization," Edwin Smith, chairman of the Somerville Home's Board of Directors, said in a statement. "After such a long history serving the community, we are deeply saddened to have reached this juncture. We are in the process of finding new homes for our residents and, working in close collaboration with families and the community, we are committed to ensuring a smooth transition for all."

The Somerville Home has filed a notice of intent to close with the DPH and will hold a public hearing at least 90 days prior to the end of the year. Its employees will receive assistance in transitioning to new jobs.

"We will ensure that all of our residents have found an appropriate place and are successfully transitioned before we close," Kelley Sferrazza, executive director of The Somerville Home, said. The Somerville Home Board of Directors is exploring options for the future use of the building and is working closely with neighbors and city officials.