My Boyfriend's Dog

I have a fear of dogs from where I got a desease when I was younger from a dog (I was 8, walking to my bus stop, this dog barked out of no where and chased me). I'm also allergic to dogs. Dog dander could kill me. It is very serious. When I asked my boyfriend to keep her outside he got offended, even though I offered to pay for the dog house that has air conditioning and heating and all that. Expensive but it was a compromise. He said no. I asked if there was a room in the house where he could stay and my boyfriend said the dog had as much right to the house as I did. Well I lived in a small studio flat so I know how to live in a small space. I asked for a room where I can put everything from my tv to my persobal mini fridge in there so that maybe he would be happy. My boyfriend said I was being overdramatic. I said that it was both a mental block and a health risk and we fought. It is hard enough to be outside with people who have dogs (not that I'm hating I just can't get near them which is sometimes very hard) so to know that I can't even reach a compromise with this is confusing. So to all you dog lovers, I need to know how can I respect both his dog and myself? Do you guys have any ideas? The dog is not violent or anything so even if my therapy to get over my fear works, my health is still at risk.