@Merry Andrew,
I am not a lawyer, either. You claim he is still mentally competent to make his own decisions. If so, he can still choose to live in the home or with you or wherever. That solves the immediate issue.
But from what I read there are family disagreements that are going to have to be resolved while he and his wife are still capable of making the decision about who to give power of attorney to.
It could get into a tugging match with the old folks in the middle. I don't know what to suggest.