It is probably different depending on how you are licensed. In my state there are state rules and then if an agency licenses you,they may have additional rules. In my state, I think it unlikely that you could be licensed. I think the main concern would be that 7 months is nothing in terms of being clean and historically people are likely to fall off the wagon frequently in the first several years. That type of behavior would be very negative to any foster children and if you had your MIL's behavior to deal with and the foster children, it would be too much and someone would lose out. Many agencies/states do not allow adult family members to live in the home unless they are able to be licensed too because although they might not be a parent, they would within the home environment function in a parental capacity.
Source: http://forums.adoption.com/over-40-adoption/408311-foster-licensing-rules.html
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