The bad news: He has a reputation for being ultraconservative. Accordingly, he is strongly opposed to gay rights.
The "good" news: It could be worse. Another candidate whom some considered a frontrunner in the papal race was Cardinal Peter Turkson of Ghana. And, while an African pope would have been quite the newsmaking novelty, other implications would have been disturbing at best.
So, while gays and lesbians will continue to be second-class citizens in the eyes of the Vatican, at least it appears that we've avoided a new homophobic Inquisition. For now.