I feel our pain, same thing happened to my bike. I would recommend replacing the fork and headset with a standard threaded version, and it can probably be had cheaper than you think if you go to a bike kitchen, that is, a non-profit bike shop that sells used parts. Looks like you're in NYC, try this place: http://www.recycleabicycle.org/shops.

Don't know much about them, but they look like the place to help, or they might know another place that can.

Finally, best part about going standard is if you ever decide to upgrade our bike, you already have a decent fork.