God bless you for wanting to do this. I am so glad you found such a great place for your FIL.
My grandmother was in a nursing home for 10 years and she pieced quilts by hand until about 2 months before she passed. She lived to be 2 months past her 100th birthday. The activities director would cut out quilt pieces and bring them to Granny's room. She pieced them so fast, they couldn't keep up with her. She pieced several for me while she was there. I, also, would buy the fabric, cut the squares and she pieced them. It thrilled her to be able to do something.
Also, at another nursing home where a friend was, they had a quilting frame set up in a separate room and the residents would go and quilt whenever they wanted to. My friend was a gentleman and every time we visited he was bragging about their quilts. Of course, this would depend on how many people could do this or how much space you had to work in.
Lap quilts would be great or a potholder or some small item as the residents love to have something to give their family when they visit or something they can display in their room. They feel so proud to show off what they make.
This also will help the resident to come out of their rooms and interact with other residents and gives them a sense of accomplishment.
Keep us posted.