Using repair-and-deduct at illegal rental

Q: We're renting a single-family home from a landlord who refuses to do basic repairs. When the hot water heater broke and the roof began to leak, we were forced to repair them ourselves and deduct the cost from the rent (our state law lets us do this). After getting a pay-or-quit notice, we did a little homework and discovered that the home never had a certificate of occupancy. What effect will this have on the landlord's attempt to evict us? --Jim and Janelle J.

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