As far i think ,phac says limited release on compassionate grounds to your private residence .with that letter it should be ok without 3 day quarantine hotel.thats the purpose of limited realese on compassionate grounds.
what is use of limited release on compassionate grounds if they have to live for 3 days in hotel and then 11 days in residence.i have read narcity article that if you have approval for limited release on compassionate ground you don't have to do 3 day hotel rule.
Also,if you have extra room and separate toilet that should be enough for quarantine.for example,when husband gets covid ,other half stays in another room and take care of them with following distance .not like they go to live in basement.however,if you want extra precaution basment is good option.