My landlord is threating to sue me . . .?

in the last week of august after we cleaned our carpet we found out that there was some mold under it. long story short, it took them till oct, after we called code enforcementnt to rip the carpet up. they painted the floor under it and left 1/4 - 1 inch gaps under the floor boards( have a 3 y.o.) then they failed the compliance inspetion. so we're witholding rent till she fixes it. she called us today and started screaming how she wasn't going to fix the floor that she isnt responsible, we are and that she is going to sue us for the rent we owe.now theres 3 of us in the house, and we're all crammed in one room ( its a 2 br house and all the furniture is in one room) do i have any options? also would i be able to counter sue for the floor repair and maybe for some pain and suffering? i live in upstate NY