Doubt it, at least not on the facts you reported. The LL did not prevent you from purchasing a home--your overall record was not sufficient to overcome whatever it was that the LL reported.
If you did damage that you admit to (and in your post you seem to agree that you did do damage), and still owe the LL $1700, were you expecting they were going to provide you a good reference?
Recommend you work with the LL to clear up the bill and then reapply with a different mortgage company.
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