Denial from subsidized apartments, criminal record had error by state of MI, now it is clear and still denied.?

I lived at the same apartment complex 3 years ago, I did have problems with management as there was a serious mold problem which they refused to fix until I stated I would involve a city mold inspector. In May of 2009 I re-applied. I was denied because of my credit, medical bills for a sum on $42, it was appealed and accepted. My criminal background was checked and a charge that was supposed to be sealed was showing. I went to the police station, they admitted error as the charge was to be sealed January of 2004. They fixed the error, I returned to the apartment complex to appeal, with supporting doentation stating that the error had been fixed and now my criminal record is clear, they sent me another denial letter stating that nothing had changed in their denial process. I fixed the error on my report, it was a clerical error on behalf of the state of Michigan. I do not think that they should continue to reject me from affordable housing. What can I do? Please Help me..... Confused and upset in Michigan