I’ve finally broken and I don’t know what to do

My wife got taken to the hospital for thoughts of suicide two days ago, and she’s doing ok and she can get out tomorrow around 8 pm per their 72 hour clause. We are living with her Spawn Point (mother) and her SP has a habit of going nuts every few years, switching to a personality called Ellen (Ellen used to beat her kids with metal yard sticks and throw lit matches into the kids rooms saying “if you won’t clean up I’ll burn the room off the building” and caused fire damage to clothes and shit) and Ellen is out and being abusive, enough so it caused my wife to collapse like that. Ellen doesn’t care either she thinks she’s a saint.
Our credit is meh but not good enough to get a house loan. We have a prior eviction from two (this October three) years ago and it stays on your record for 7 years apparently, so no housing place will take us. I’ve looked into second chance housing links and most seem to be scams. Ellen is t going to change since she’s “full of righteous anger” and she’s gonna possible cause the wife to relapse again.
We have two small kids (2 and 4) and they are confused as to where mommy “is hiding” and they wouldn’t understand why she’s not here (I told the older one she’s at a hospital coz her mom mad her super sad). Oh and since the wife is a school bus driver she possibly lost her job due to this hospital stay.
I almost don’t have the will to live myself anymore. I don’t know what to do. We trying DCH (a state run tri county housing place) but her words were “since you’re already with family we can’t do much”...
I have no outlet to vent. Ellen is acting like a victim for mentally abusing her daughter. I’ve never said this before but, I can’t even.
I just can’t. Sorry for the bitching but it’s equal to me screaming into the void and I had to relieve pressure somehow.

Edit: I forgot she has an Imgur account coz she was hoping to take advantage of free pizza and groceries and I don’t know if she knows my username. Should I delete this post?

Another edit: talked with the wife, she’s in good spirits and feels bad for “talking stupid and getting taken”. I assured her it wasn’t stupid and we will reduce her stress. We will tackle this situation as a team and despite two years of no luck, we will find a place coz we have to.

Yet another edit: thank all of you for the support and the encouragement. Uphill battle both ways ensuing but it is what it is. I’m trying to remain neutral so that I can keep a roof over the heads of the kids.

Update: whilst Ellen is still being herself she finally realized how people were perceiving her and she’s done a 180 back to being nice. We found a place, a modular home in fact. The only way we managed to get it was having stimulus stuff come our way, or we woulda been knee deep still. We’re waiting just days to be free and to be home again after 3 years. Then today my cars engine died....were hoping it’s not as bad as it sounds. Never a dull moment.