Answer:
A court would not have found the residency agreement valid because a person that can decide how her health plan would be like, examine and oversee her finances all denotes she has the capability of getting a place of her own and does not entirely meet the requirements of assisted-living.
Dorothy would have been greatly considered if she was totally financially incapable of handling all of the affairs that concerns her, if she can handle her health and finance plan, she should be able to secure a place to stay (no matter how small)