<PAGE>   1
                                                                     EXHIBIT 25


                  Securities Act of 1933 File Number 333-5828
-------------------------------------------------------------------------------

                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                              --------------------

                                    FORM T-1
         STATEMENT OF ELIGIBILITY UNDER THE TRUST INDENTURE ACT OF 1939
                 OF A CORPORATION DESIGNATED TO ACT AS TRUSTEE

         CHECK IF AN APPLICATION TO DETERMINE ELIGIBILITY OF A TRUSTEE
                       PURSUANT TO SECTION 305(b)(2) [ ]

                              --------------------

                            THE CHASE MANHATTAN BANK
              (Exact name of trustee as specified in its charter)

                                   13-4994650
                    (I.R.S. Employer Identification Number)

                      270 PARK AVENUE, NEW YORK, NEW YORK
                    (Address of principal executive offices)

                                     10017
                                   (Zip Code)

                              --------------------

                           ARV ASSISTED LIVING, INC.
              (Exact name of obligor as specified in its charter)

                CALIFORNIA                             33-016098
        (State or other jurisdiction of            (I.R.S. Employer
        incorporation or organization)            Identification No.)

                               245 FISCHER AVENUE
                          COSTA MESA, CALIFORNIA 92626
                            (TELEPHONE 714-751-7400)
              (Address, including zip code, and telephone number,
         including area code of obligor's principal executive offices)

                              --------------------

                       6 3/4% CONVERTIBLE NOTES DUE 2006
                           (Title of the Securities)

-------------------------------------------------------------------------------
<PAGE>   2
                                    GENERAL

Item 1.  General Information.

         Furnish the following information as to the trustee:

         (a)  Name and address of each examining or supervising authority to
              which it is subject.

              New York State Banking Department, State House, Albany, 
              New York 12110.

              Board of Governors of the Federal Reserve System, 
              Washington, D.C., 20551

              Federal Reserve Bank of New York, District No. 2, 33 Liberty
              Street, New York, NY.

              Federal Deposit Insurance Corporation, Washington, D.C., 20429.

         (b)  Whether it is authorized to exercise corporate trust powers.

              Yes.

Item 2.  Affiliations with the Obligor.

         If the obligor is an affiliate of the trustee, describe each such
         affiliation.

         None.



                                      -2-
<PAGE>   3
Item 16.  List of Exhibits

          List below all exhibits filed as a part of this Statement of
Eligibility.

          1.  A copy of the Articles of Association of the Trustee as now in
effect, including the Organization Certificate and the Certificates of Amendment
dated February 17, 1969, August 31, 1977, December 31, 1980, September 9, 1982,
February 28, 1985, December 2, 1991 and July 10, 1996 (see Exhibit 1 to Form T-1
filed in connection with Registration Statement No. 333-06249, which is
incorporated herein by reference).

          2.  A copy of the Certificate of Authority of the Trustee to commence
business (see Exhibit 2 to Form T-1 filed in connection with Registration
Statement No. 33-50010, which is incorporated herein by reference. On July 14,
1996, in connection with the merger of Chemical Bank and The Chase Manhattan
Bank (National Association), Chemical Bank, the surviving corporation, was
renamed The Chase Manhattan Bank.

          3.  None, authorization to exercise corporate trust powers being
contained in the documents identified above as Exhibits 1 and 2.

          4.  A copy of the existing by-laws of the Trustee (see Exhibit 4 to
Form T-1 filed in connection with Registration Statement No. 333-06249, which is
incorporated herein by reference).

          5.  Not applicable.

          6.  The consent of the Trustee required by Section 321(b) of the Act
(see Exhibit 6 to Form T-1 filed in connection with Registration Statement No.
33-50010, which is incorporated by reference. On July 14, 1996, in connection
with the merger of Chemical Bank and the Chase Manhattan Bank (National
Association), Chemical Bank, the surviving corporation, was renamed The Chase
Manhattan Bank.

          7.  A copy of the latest report of condition of the Trustee, published
pursuant to law or the requirements of its supervising or examining authority.
On July 14, 1996, in connection with the merger of Chemical Bank and The Chase
Manhattan Bank (National Association), Chemical Bank, the surviving corporation,
was renamed The Chase Manhattan Bank.

          8.  Not applicable.

          9.  Not applicable.



                                      -3-
<PAGE>   4
                                   SIGNATURE

        Pursuant to the requirements of the Trust Indenture Act of 1939 the
Trustee, The Chase Manhattan Bank, a corporation organized and existing under
the laws of the State of New York, has duly caused this statement of
eligibility to be signed on its behalf by the undersigned, thereunto duly
authorized, all in the City of New York and State of New York, on the 21st day
of November, 1996.

                                        THE CHASE MANHATTAN BANK

                                        /s/ KEVIN BINNIE
                                        ------------------------
                                        By: Kevin Binnie
                                            Vice President



                                      -4-
<PAGE>   5
                                                                      EXHIBIT 7

                                Bank Call Notice

                             RESERVE DISTRICT NO. 2
                      CONSOLIDATED REPORT OF CONDITION OF

                            The Chase Manhattan Bank
                  of 270 Park Avenue, New York, New York 10017
                     and Foreign and Domestic Subsidiaries,
                    a member of the Federal Reserve System,

                   at the close of business June 30, 1996, in
        accordance with a call made by the Federal Reserve Bank of this
        District pursuant to the provisions of the Federal Reserve Act.


                                                                 DOLLAR AMOUNTS
                     ASSETS                                        IN MILLIONS
Cash and balances due from depository institutions:
  Noninterest-bearing balances and currency and coin............    $  4,167
  Interest-bearing balances.....................................       5,094
Securities:
  Held to maturity securities...................................       3,367
  Available for sale securities.................................      27,786
Federal Funds sold and securities purchased under
  agreements to resell in domestic offices of the
  bank and of its Edge and Agreement subsidiaries,
  and in IBF's:
  Federal funds sold............................................       7,204
  Securities purchased under agreements to resell...............         136
Loans and lease financing receivables:
  Loans and leases, net of unearned income.............  $67,215
  Less: Allowance for loan and lease losses............    1,768
  Less: Allocated transfer risk reserve................       75
                                                         -------
  Loans and leases, net of unearned income, allowance
    and reserve.................................................      65,372
Trading Assets..................................................      28,610
Premises and fixed assets (including capitalized 
  leases).......................................................       1,326
Other real estate owned.........................................          26
Investments in unconsolidated subsidiaries and
  associated companies..........................................          68
Customer's liability to this bank on acceptances
  outstanding...................................................         995
Intangible assets...............................................         309
Other assets....................................................       6,993
                                                                    --------
TOTAL ASSETS....................................................    $151,453
                                                                    ========

<PAGE>   6
                                  LIABILITIES

Deposits
  In domestic offices..............................................   $ 46,917
  Noninterest-bearing....................................   $16,711
  Interest-bearing.......................................    30,206
                                                            -------
  In foreign offices, Edge and Agreement subsidiaries,
    and IBF's......................................................     31,577
  Noninterest-bearing....................................   $ 2,197
  Interest-bearing.......................................    29,380
                                                            -------
Federal funds purchased and securities sold under agreements
  to repurchase in domestic offices of the bank and of its
  Edge and Agreement subsidiaries, and in IBF's Federal
  funds purchased..................................................     12,155
  Securities sold under agreements to repurchase...................      8,536
Demand notes issued to the U.S. Treasury...........................      1,000
Trading liabilities................................................     20,914
Other Borrowed money:
  With a remaining maturity of one year or less....................     10,018
  With a remaining maturity of more than one year..................        192
Mortgage indebtedness and obligations under capitalized
  leases...........................................................         12
Bank's liability on acceptances executed and outstanding...........      1,001
Subordinated notes and debentures..................................      3,411
Other liabilities..................................................      8,091
                                                                      --------
TOTAL LIABILITIES..................................................   $143,824

                                 EQUITY CAPITAL

Common stock.......................................................        620
Surplus............................................................      4,664
Undivided profits and capital reserves.............................      2,970
Net unrealized holding gains (Losses) on 
  available-for-sale securities....................................       (633)
Cumulative foreign currency translation adjustments................          8
                                                                      --------
TOTAL EQUITY CAPITAL...............................................      7,629
                                                                      --------
TOTAL LIABILITIES, LIMITED-LIFE PREFERRED
  STOCK AND EQUITY CAPITAL.........................................   $151,453
                                                                      ========

I, Joseph L. Sclafani, S.V.P. & Controller of the above-named bank, do hereby
declare that this Report of Condition has been prepared in conformance with the
instructions issued by the appropriate Federal regulatory authority and is true
to the best of my knowledge and belief.

                                        JOSEPH L. SCLAFANI

We, the undersigned directors, attest to the correctness of this Report of
Condition and declare that it has been examined by us, and to the best of our
knowledge and belief has been prepared in conformance with the instructions
issued by the appropriate Federal regulatory authority and is true and correct.

                                        WALTER V. SHIPLEY    )
                                        EDWARD D. MILLER     )DIRECTORS
                                        THOMAS G. LABRECQUE  )