I can certainly understand your reservations about hosting your sister-in-law for a two week visit. I felt a sense of panic in your post and I don’t blame you for feeling that way after the way she’s treated you.
My first thought is that you could just have a frank and honest conversation with your husband, but I totally understand why you’re reluctant. Think on it though. If you approach it gently, without “attacking” her, your husband might be able to hear your concerns more clearly. You could try putting your feelings in a letter, which could help reduce the potential for hurtful things to be said in the heat of the moment.
I note though that she’s only “hoping” to visit. So, it’s possible that the visit will fall through. If it does, it might be a good idea to get on the front foot and suggest that your family go and visit her sometime next year before she reschedules. At least you’d have control over the duration of the visit and where you stay.
If it doesn’t fall over, you have time to plan as she’s indicated a visit “later in the new year”.
Perhaps you could find her a local hotel or home stay option close to you and suggest she take it up in the interest of respecting everyone’s boundaries, privacy, etc.
Or, if your husband has any other family close by you could suggest she divide her time between homes so everyone gets a chance to visit with her.
If that won’t work, I’d make yourself very busy while she’s with you. And throw in lots of self care and time for yourself.
Kind thoughts to you