NHS Borders said the Hume site is not needed and its accommodation, at Galavale, is not of required standards.
Users and campaigners have welcomed the move towards outreach services with less institutional care.
However, an NHS Borders report has noted concerns about emergency admissions and the pressures on other facilities across the region.
Hume was established at Galavale after Dingleton Hospital closed in 2000.
Increased pressure
The local health board said the area no longer needed the five-bed unit, intended to assess and treat people with learning disabilities.
It wants resources to be redirected to an outreach team.
However, an NHS Borders' report also described Hume as a place of safety.
The closure could put pressure on other facilities as well as families and carers in the short term, it added.
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