Last night I came home to a flooded apartment due to a faulty water heater. I went to a hotel after notifying the management of the problem. Today(monday) they told mne the carpert would be replace by Wednesay. The apartment smells like wet drywall and is musty. They say I can stay there. I refued and am in a hotel until I feel the apartment is habitable. How is responsible for the hotelexpenses?

The issue will be, is the apartment livable or not. How was it dried out.
What does your lease say about issues making the apartment not livable ?

Did the apartment do something or not do proper maintain the hot water unit

... They say i can stay there. ...

They are agreeing to pay your hotel bill?