Policies, regulations and contracts get in the way of good sense and what is best for the patients.
So much to say about this, so little time.
However, from patient care perspective, perhaps it is easier to have the AL patients remain as they can more easily adjust and adapt to what sounds like extensive construction and repair work.
The Memory Care folk will be in one place until it is over, then transitioned back to the original home. Probably easier for them, once they get used to the new, temporary situation.
And yes, policies, regulations and contracts can be a miserable challenge even when things are going “well”.