My question involves landlord-tenant law in the State of: CA

Two friends and I rented a 3 br. cottage one month ago. Today I received a message from the landlord stating that the city cited him because this cottage is only permitted as a 2 br. rental. It looks like one of us will have to move, and in case I draw the short straw I'm trying to anticipate my demands. As of now I plan to ask to have my deposit returned, and ask for moving expenses. Possibly go to small claims court if needed for the latter. Is there some standard procedure here that would benefit me to know about? It seems pretty simple but I don't want to let something slip through the cracks for lack of knowledge.

Thanks.