Inspectors say the level of care at the Nottingham scheme has deteriorated significantly.
BBC NewsWoodvale, in Nottingham, was given the rating following an inspection carried out by the Care Quality Commission in April.
It said the overall rating had gone down from good to inadequate, adding the scheme would be kept under review and re-inspected within six months.Greg Rielly, CQC deputy director of operations in the Midlands, said: "When we inspected Woodvale, it was concerning the level of care had deteriorated significantly.
He added inspectors had also seen some positive areas of care, including a wellbeing coordinator who arranged social events and community raffles. "If we are not assured people are receiving safe care, we will not hesitate to take enforcement action to ensure people are receiving the high standard of care they deserve."
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