South Wales Police said the woman, from North Cornelly in Bridgend, crashed into a wall on Coity Road at about 12:43 BST on Monday. However, the force stated that she had suffered injuries "unrelated" to the crash.
Following the incident, armed police raided Ger-y-Nant, a sheltered housing complex for over-60s comprising 13 flats. A cordon remains in place around the building, and a heavy police presence, including six officers, police cars and vans, continues in the area.
Chief Superintendent Jason Rees described the incident as "deeply distressing" and thanked the local community for its support, which he said resulted in an arrest and no further injuries. He added: "We thank those displaced from their homes overnight for their co-operation at a worrying time as we support them in returning home."
Eyewitness Darren Owen, who has lived opposite the retirement home for 18 years, said he saw armed police, drones, and vehicles "all the way to the hospital." He said officers and SWAT teams climbed onto the roof of the building, and at about 1am he saw police bringing a man out. "I've never seen anything like it before," he told the BBC.
Another resident, Muhammed Bobalazi, said he could not get home initially because of the police cordon. "There were fire service and police and I couldn't get close to my flat," he said. Local resident Roz Thomas expressed concerns about the area, saying nearby houses have caused problems and that she no longer walks with her granddaughter due to issues with drink and drugs.