Tenant under Section 8 being held in Month to month lease

[Kerri Tribble]

I'm a tenant in a house under section 8.  I have been under my lease now for over a year, after the beginning of this year my lease went to month - to - month. I lost my job at the end of last due to unforeseen circumstances and I was injured as well. My landlord has been aware of all that has been going on with me. In my lease there was an added clause where they stated the Utlities were to remain in the name and I would be responsible for the cost. After losing my job I became behind on my half of $1800+ in the hole. I approached my landlord telling them of all my situation still and I just feel it would be a smart move for me to just basically excuse myself before I'm way deeper over my head than I already am. I offered $900 cash and suggested that they keep my deposit (which I know they are legally entitled too) bringing me up to a balance -$1200 and the remainder $600+ could we draw up a legal contract stating that I am still held liable for it and will make arrangements within my ability to handle. 

They basically responded "No deal- all or nothing at all". Which now holds me in a situation where I'm unable to pay any new charges as well as those accumulated. It is almost as if I'm being held hostage in this situation.

With so many violations for us -tenants- why is there really not many for landlords. Is this right? And I have called housing authorities in my area and they are basically telling me there is nothing they can do in this manner. The house has fell inspection and "barely" passed over this year time frame and now I am at the point where this house has now fell code enforcement inspections. But the housing authorities is still sticking with their same song "there is nothing they can do". 

Can someone steer me in the right direction on handling this. I can't afford to pay the amount owed I would be borrowing money to accumulate to the amount I was offering. HELP SOMEONE PLEASE.