Blankets are good for people but not dogs. They don't wick away moisture and can actually keep a dog colder. Straw is much better.
A light or a heating pad (for dog houses) is good for extra warmth and a tight fitting flap door will help with the drafts. Dogs are not meant to be out in extreme temperatures and unless they are dual coated it can be very hard on them. Being a senior dog makes it all the worse.
It's a shame your parents are more concerned about their rules than the health and well-being of your animals. Sorry but I do not believe an animal should be left out in extreme conditions...if I wasn't able to take care of a dog I wouldn't have one. ADD>>> Also, over sized housing is not good either as it takes a lot of energy to keep warm.
You'd be better off making it into two separate houses so each dog will be able to have their own space and snuggle down into the straw. I'd worry more about my dog freezing to death on a guaranteed freezing night rather than worry about a fire from a product meant to be used outside in a dog house to heat it. Here's some info that might help... http://206.130.118.243/docs/heating-dog-... http://cozywinters.com/pets http://www.ehow.com/how_4909795_heat-dog... http://www.brighthub.com/pets/dogs/articles/88158.aspx.
You are right this is too cold for the dogs. A heated dog bed would help if you have access to electricity. It is a very low heat, less than a heating pad and reasonably safe.
With out a heating source it would be hard to keep any building warm in those kind of tempatures.
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