Altho 7 people and a dog in a 2 bedroom apartment certainly isnt at all ideal.. But if you have no choice then maybe that will have to hold up for as long as it takes.

As for "what if you both go IP well then the SIL can make sure Miguel is cared for.

You and your husband both need to just suck it up right now and take your meds whether you want to or not, Miguel needs and deserves to have you both with him and doing what is right.

Ok so your parents are furious , I get that, but I dont understand the "report them to housing"

I'm really sorry your in such a rough situation. Keep looking for help and answers to what you need right now.