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He is 94 and his mental capacity is eroding and he is living alone and we want to sell his home and move him into an assisted living facility but we do not have power of attorney and he is not interested in approving that option for us as he feels he is in fine mental condition.

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Mikejones you've already gotten some good advice, but I'll add that since your father is living alone, he is either reasonably competent to do that or he is in imminent danger. If it's the former, then all you should do is continue to talk to him as a competent adult, albeit with advanced age and declining skills, and, of course, provide him all the assistance that you're able to do. If you believe he's in imminent danger and he continues to ignore your well-intended suggestions, then you could call adult protective services to alert that office to his situation. If that office's investigation shows he is in imminent danger, then you would have a starting point to petition for guardianship -- which, by itself can be a hard journey, but may ultimately be your best option. Best wishes in this difficult journey, whichever road is taken.
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Hopefully you can explain by assigning a POA his wishes will be carried out if he is not able to make an informed decision. This doesn't mean because he has Dementia but he could be in a coma. Someone has to make his wishes known. Someone has to pay the bills. If he doesn't assign someone the State will make his decisions for him.

Yes guardianship is expensive. He would have to be evaluated and it determined he cannot make his own decisions. He would be present for the Judge to hear his side.
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Do remember that IF you choose to apply for guardianship it can run EASILY more than a "few thousand" dependent on where you live. More like 10,000 here where the going fee starts at about 450.00 an hour. This will be a court case. Your father will be assigned his own attorney. The court does not easily give over a persons autonomy and power over his own affairs without VERY GOOD REASON. If there is no diagnosis of dementia at this time I think you may not win this. If you win this your Father's estate will pay, and you will be guardian. Watch what you wish for. You are responsible for EVERYTHING and accountable to everyone, most especially to the courts.
I don't want to scare you off from this. But I highly suggest that you pay for one hour of an Elder Law Attorney's time now, and then take a bit of time to make your decision. You will, at the least, know what you are looking at.
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If he won’t voluntarily assign someone as POA, then guardianship through the courts is the only other option. He has to be of sound mind to assign a POA....if his mental capacity is diminished...an attorney may not be willing help you force him in to signing a POA.
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Can't force him, sounds like my mother, she is 94. We do have her medical POA, not Durable, still trying to convince her of that. In fact, today, my brother is taking her to an attorney to explain why she needs one, she doesn't understand the need.

Perhaps you can do the same, take him to a local attorney to explain the reason why he needs one.
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