This is a lose lose situation all around. The only thing anyone can do here is the landlord can kick you out. If you call and complain to the city they will make you leave until the apartment is properly zoned and up to code. If the LL calls the city they can confiscate your herps.
I would ask the landlady to let you keep your pets for an increase of like 10.00. If she balks tell her you won't complain about the apartment if she will leave it status quo.
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