How are you damaged or harmed by a past criminal offense of your landlord? What kinds of criminal offenses do you contend you have a right to be forewarned about? Why?
Quite frankly, I can't see any loss or damage to you in this situation. You have the right to the premises as per your lease, not withstanding the checkered past of the landlord, right?
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I don't see how his being "an arsonist" disqualifies him from being a landlord or gives you a cause of action to sue the housing authority. It also seems odd that the housing authority would tell you that...
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No, you cannot sue the local housing authority because your landlord was an arsonist in the past. You could not sue them even if she is an arsonist now. If she burns down your apartment, you could sue her, but not the housing authority. It looks like she is willing to let you move out early. If you cannot bear living there any longer, perhaps you should work something out and move.