It's absolutely referring to the daycare not being in the basement. There are many basement daycares and they can be an ideal situation. But I also think that many basement daycares feel cramped and dark (not all but many). I have 4 daycares within 4 blocks of my house and all are basement daycares. Only 1 of them would I consider bright and cheerful. I know that during my last set of interviews I had quite a few parents ask if my daycare was in the basement during their phone interview...it IS a selling point and she seems to know that, although she is being cheeky.