No, you do not have to add Food Assistance that you received as income on your return. You also do not have to add it as Household Resources to calculate the Michigan Homestead Property Tax Credit. Add the amounts of FIP/MDHHS payments that appear on your annual statement that reflect cash assistance.
This link explains what is considered Household Resources for the Michigan Homestead Property Tax Credit.
http://www.michigan.gov/taxes/0,4676,7-238-43535_43538---,00.html
