Well, to be honest, I'm just not sure that is a strong enough argument to warrant a waiver. The question would be "how necessary" was such a move? As noted in my OP there is simply not a written basis for a residency waiver based on family health. I suppose there would be a strong case for such a waiver if the student athlete was a primary care giver to an affirmed relative but that is not the case here.
I don't want to sound unsympathetic to the situation but, if not a care giver, I am not sure how much proximity makes a difference, For that matter Pitt, WVA, PSU, MI, MSU and a host of MAC schools are closer to Youngstown than is Lexington. And I am sure any of those schools would welcome a transfer of his ability if they had roster space.
FWIW, Matt Milton transferred to UofL after 2 years at TN (2010 and 2011) and sought a waiver to play immediately for similar reasons (i.e., closer to ailing father). The waiver was denied and Matt sat out the 2012 season and played the next 2 years. The bottom line here is that residency waivers for transfers due to "family matters" seldom get approved. Still, it never hurts to try especially in the current climate.
Peace