Burn unit next door flooded my apartment — can I break my lease?

The apartment is a townhouse in a building with 8 units in Georgia. There are 4 units on my side and 4 units on the back side. On my side, 3 of the units are vacant and the unit on my left is a burn unit! The apartment has broken windows, a boarded up window, and broken glass in the front yard of the unit. We signed the lease moved in on friday 1/7/2011. We got half off the first months rent and the monthly rent is discounted by $50/ month. We assumed the rent was discounted it to lure in someone stupid enough not to mind living next to a burn unit. The other apartments are vacant and we have no neighbors- again , we are assuming this also has something to do with the discounted rent.

Last night, a pipe burst in the burn unit and our apartment was flooded. A lady who lives on the back side of the building also had her apartment flooded. She said this is the third time this has happened. Although the lease does say that they are supposed to make prospective tenants aware of previous floods, our lease does not make note of any previous floods.

I am aware that unless there is some sort of renters insurance (and there is not) that our damaged property is our responsibility. My question is are we entitled to break our lease? It feels really unsafe. It’s 1 thing living next to a burn unit. I could deal with that because the odds of a fire starting are slim unless we start it since we are the only tenants on this side of the property….but now I feel like water and a burn unit with possible exsposed wiring don’t mix. I cannot deal with living next to a burn unit and now being flooded.

The manager told me upon moving in that my credit was fine but because I had a few misdomeanors that I had to pay a security deposit! I have never heard of this before. I always thought the law with regard to a securitydeposit had somethingto do with your credit and rental history, and if you had a felony then you had to find somewhere else to live….but misdomeanors? And on top of that we are in the HOOD! It looks like felons and some of everything else lives in this complex.

I want to break my lease and move on feburary 1st and I want my security deposit back so I can find somewhere safe to live where the apartments don’t flood, and the apartments next to me are not boarded up with broken glass everywhere and the apartment on the left is still charred from a fire. What are my rights in this situation?
Am I entitled to break the lease?
Am I entitled to my security deposit back?

Also, has anyone ever heard of having to pay a security deposit for having good credit/rental history, NO felony but a few misdomeanors?

P.S Although it is not noted in the lease, I signed the lease knowing that the apartment next to me was a burn unit, however that apartment is now flooding my apartment and the flood posibility was never mentioned nor noted in the lease.

Please post no personal opinions or comments from bitter, scorn landlords. I am only interested in my rights as a tenant and the law with regard to this situation….Thanks much in advance!