Can my landlord charge damages for more than a property is valued?

My son and his friend broke a few windows in a fallen down house next door that has not been on the tax essment 11 years because the house is valued at zero. I have pictures from the tax essment that shows broken windows in 2000, I believe all the windows were broken before we moved in. My son and his friend were wrong but I feel that the windows were broken anyway so I should not have to pay the damages of $1600 that the landlord is trying to keep. This happened about a year ago and I have offered to pay for two of the windows because my son and his friend did not break more than that and I don't believe that there were any unbroken windows when we moved in. The landlord had failed to give me an estimate for the costs until I was almost due to move out. My security deposit was $750 and I also paid for the last months rent also $750. I receive help from Section 8 and work for a school and therefore have little income in the summer. Section 8 also paid all but $28 of my last months rent as well as $438 for July rent that I had already paid to the landlord. Therefore the landlord has been over paid in the amount of $1130 and has my security deposit as well. The landlord has refused to return theseover paymentss to me as Section 8 has asked of him and says that he is keeping it for the damages to the windows. He procured two estimates in the $1600 range, the estimates are for 3/8 inch gl, like in cars. He has fixed a few of the windows with peg board and plexigl and probably wont go through with the work that he has shown on the estimates. I took him to small claims court and my case was dismissed on account of the windows. I don't think he can charge me more for damages than the property is worth and I am appealing the decision. The building is rotting and falling into the ground, you can poke a hole through the outer walls with a stick like a rotted pumpkin. I don't believe that any contractor will go into this house to fix the windows due to the danger it would be to themselves. The house has no electricity and had two light fixtures when it was livable because of the age of this house, therefore if he did talk some fool into going in there would be no power supply for them to use their tools. Can he charge more than the value if the property for damages?