The short-and-sweet responses to your post:1. 

We have reached out to the city and they have provided some information about grants but that seems extremely complex without much chance for success as we would be first timers.My question is what options are out there to help with this situation.

I find it easier to understand the finances this way; however, it does making accounting much more complex.

Bumblenard....pretty sweet....

Has anyone had any experience in the assisted living/nursing home complex type of developments?

We have a 4 plex, family owned complex. 4 years ago we decided to move out of the complex.

Lastly, unless you're married to this particular property, you should keep an eye out for other properties that just might be as sweet a deal.Also, about the HELOC, once it’s funded, those funds can generally be used for any purpose but double check with your lender JIC.

It sounds like you're facing a complex decision with several factors to consider.

My family has a successful MTR there in a particular complex in the heart of downtown. 

I was analyzing a four plex and realized there are beautiful apartment complexes being built nearby.