I would think it would be fine for personal use, but may be subject to regulations if you are selling it.

With regards to nursing home, just know before you invest a lot of time in this, that things have a tendency to get ‘lost’ in nursing homes.

As I understand it.... the flame retardant is gone after you wash the item and use a fabric softener. I don't really understand the point of the labeling.

Yes, it is perfect to make quilt blocks with.