I am really sorry to hear about all of this. Yes, you probably jumped into something that you should have investigated further before doing, but you now know that, and there is no point beating a dead horse. You need to do a few things. First, you need to find out if the guy you leased the house from actually owns it. If you have any friends in real estate, they can pull title to the home and tell you who actually owns it. My guess - and this is a wild, stab in the dark - is that if this guy is in jail, there is a good likelihood that he did rent the property out without actually owning it. That is called Rent Skimming, and in California is both a crime, and can be a civil cause of action you can pursue to get damages from him. That being said, if he is jail, there may not be much you can do. If you don't know someone in real estate, perhaps the woman who claims to own the property can provide you with some proof of ownership - such as a copy of the deed. That's not going to help you much either, as ultimately given the condition of the home, you really cannot stay there.
There are a lot of possible remedies to get a landlord to fix the kinds of problems of which you complain, however, if he is in jail, you need to be realistic that he is just not going to do them and make the place habitable. My best suggestion to you is to first very quickly find a place to live and move immediately. Living in a situation like that is not going to get itself resolved anytime soon, and as such, it is better for you and your family to find a safer place to live than stay and fight this. Additionally, if the woman who claims to own it, actually does own the house and you are truly squatting, she can file a lawsuit to evict you without any further notice. As you will be out looking for a new place to live, you cannot afford to have an eviction lawsuit pending against you. Second, find an attorney out there in the Sun City/Canyon Lakes/Lake Elsinore area who specializes in tenant's rights. You have possibly claims against the person who rented the home to you, and though he is in jail, it doesn't mean he doesn't possibly have resources to settle a lawsuit for renting you an inhabitable property, and possibly for renting you a property he doesn't even own. Finally, if it turns out he doesn't own the property, contact your local District Attorney's office and file a complaint. It may be what he is in jail for now, and you may be able to get restitution for what he has done to you.
Again, I am really sorry to hear about your situation, and I only hope you can find a decent place to live in the near future and get your family out of what sounds like a real safety hazard.
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