All Saints Catholic Academy in Albany and Sacred Heart School in Troy will close at the end of the school year under restructuring plans announced Friday afternoon by the Roman Catholic Diocese of Albany. 

Financial challenges at both schools, needed building repairs at All Saints and low enrollment at Sacred Heart factored into the decisions, the diocese said in a statement. 

It added that Blessed Sacrament School in Albany will shift to a pre-K through grade five, while the Mater Christi School in Albany will remain pre-K through grade eight.

"While Sacred Heart School is closing, the building remains. The pastor and trustees are investigating new uses for the building, including but not limited to, pre-school and Universal Pre-K," the diocese said.

Superintendent Christopher Bott recently said there is a more than $1 million operating deficit between the three Albany schools due to declining enrollment and rising costs to educate.

The parishes will now begin work to create a single school board for the Catholic Schools in the City of Albany, the diocese said Friday.