hard to believe, no hot water and heater in NY's winter?

If this is true, you really really have the rights to move out immediatelly. Don't wory, just to small claim court to confirm the lease terminated and get the deposit back , then the second case should be dropped by the landlord company itself because it is no longer a case.

The key is if you have evidence to support your case - no hot water, such as email, witness, ...., because this is really an  unique case.