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1) Did you sign a lease? Did you sign anything that that discussed the status of the deposit? Many times the classification of the deposit depends on signing the lease. If you signed the lease, then the deposit should be refundable but then the lease would be valid and they could keep the deposit as you did not move in and owe rent for the entire lease or until the property is rented to another tenant.
2) the landlord is a private citizen and can rent to whoever they please. Unless it was based on race and possibly age as it does not seem so. You most likely have no recourse here.
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