BREAKING: A homeowners association (HOA) in Parker, Colorado, has filed for bankruptcy following a staggering $1.4 million court verdict linked to severe mold issues that turned a resident’s home into a health hazard. This urgent situation underscores a catastrophic failure in property management and community oversight.
Judge Robert Lung delivered the verdict on September 2023, describing Kristina Corcoran’s once-beloved home as a “dangerous nightmare.” Corcoran, a 55-year-old long-time resident, purchased her two-story condo in 2015 but soon faced devastating mold problems due to the HOA’s negligence, including poor drainage and faulty construction.
Corcoran’s health deteriorated significantly; she now suffers from blurred vision, chronic pain, and dietary restrictions due to mold exposure. “She cannot move out because she lacks the financial resources,” Judge Lung noted, highlighting the emotional and financial distress faced by residents trapped in untenable living conditions.
Despite numerous complaints, the HOA failed to act until Corcoran filed suit in 2022. The association’s response—placing plastic wrap over wet carpets—only exacerbated the mold situation. In August, the judge determined that one-third of Corcoran’s home was inaccessible due to toxic mold.
As a result of the judgment, the Highlands at Stonegate North Condominium Association has seen its financial stability crumble. Board president Sherri Rosselot revealed in a bankruptcy court affidavit on December 5, 2023, that Corcoran’s garnishment of the HOA’s bank accounts has frozen $1.2 million in funds, crippling the association’s ability to operate.
Residents are voicing their frustrations over the HOA’s management, stating that poor decisions and a lack of transparency have led to this crisis. Meredith Norton, a resident, expressed, “A small group was allowed to make big decisions that affected all of us, and now we’re paying the price.”
The HOA is now scrambling, estimating that it could owe around $300,000 in attorney fees related to Corcoran’s case. The uncertainty surrounding insurance payouts adds further complication, as the HOA and its insurers have yet to confirm when they will cover the judgment amount.
As this story develops, the future of the Highlands at Stonegate and its residents hangs in the balance. The community faces not only the immediate threat of financial instability but also the lasting impact of the mold crisis on their health and property values. What happens next remains to be seen, but the urgency of this situation cannot be overstated.
Stay tuned for updates as this critical story unfolds.
