Came Dec we started using our heat but this apt, which we pay $700 includes nothing, does not hold any heat. I have been asking the landlord to get it looked at and he jumbles around the issue. His solution was to bring me a heater. We already are using 2. We have 3 kids and the ele and gas bill was a total of $627 for dec and the same for Jan. it has been 2 mnths and now I am moving w 2 of our kids to my moms and my husband is moving in w our 3rd kid to his moms till we find a place. He is now taking me to court for rent but yet he has $700 of security deposit. Question, can I counter and sue for punitive damages. We live in North tonawada New York.

What punitive damages? Did you follow proper procedures in reporting the needed repairs? You can't just decide to withhold rent.

No you owed him for the rent that you were staying there.
You could have perhaps done various things, if he after written notice of the repair needed, but not paying rent is not one of them.

And I don't see what you can counter sue for ?