You can contact the Riverside County Lawyer Referral Service to request consultation with a local real estate attorney.
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The landlord has responsibilities under California statutory law and the lease you signed. You should document all the problems with the condo in writing. If the condo is uninhabitable, you have the right to terminate the tenancy. You should consult an attorney specializing in landlord-tenant law.
Your agreement with the roommate to move out early after giving notice appears to result in a termination of the sublease. Therefore, he is not entitled to keep the pre-paid rent. A thorough review of the contract you signed is necessary to determine if any termination provisions apply to your situation.