https://www.michigan.gov/taxes/0,4676,7-238-43513_66852-330928--,00.html

Which attribute does the client possess that makes them ineligible? 

Special Situations

1. Shared Housing - If you share a home but are not the owner or you do not have a contract to pay rent, you cannot claim a credit.

The above so, does not qualify.

I am just guessing, since I don't do MI returns. In the input for 1040CR7 use -1 (Which is a zero in this program) for No. of days owned or rented if less than a full year [Override]

Next guess use -1 for Form MI-1040CR-1 [Override]

Thanks for your help.  I actually got someone to help me find this in the MISC section for MI, just not so user friendly/easy to find.