BREAKING: A homeowners association in Parker, Colorado, has declared bankruptcy following a staggering $1.4 million court verdict linked to a severe mold crisis that has devastated a resident’s home. This urgent development comes after Judge Robert Lung ruled that the Highlands at Stonegate association neglected critical maintenance issues, transforming Kristina Corcoran’s home into a “dangerous nightmare.”
Corcoran, a 55-year-old resident, bought her townhome in 2015, only to face a health crisis due to mold caused by poor property management. Judge Lung detailed in his September ruling that Corcoran’s once dream home became uninhabitable due to water intrusion from faulty construction, including inadequate waterproofing and drainage issues.
Despite her numerous complaints, the HOA failed to take action for years. Instead, when Corcoran finally took legal action in 2022, the HOA’s only response was to place plastic wrap over the wet carpet, which exacerbated mold growth. As of an August trial, Judge Lung revealed that one-third of Corcoran’s home was inaccessible due to toxic mold, severely impacting her health and lifestyle.
In his ruling, Lung noted the severe repercussions of mold exposure on Corcoran’s health, stating that she now suffers from infections, pain, and other debilitating symptoms. “She cannot move out because she lacks the financial resources,” the judge remarked, emphasizing the dire situation facing the homeowner.
Following the verdict, the Highlands at Stonegate’s association began garnishing its bank accounts in November to pay Corcoran, leading to its Chapter 11 bankruptcy filing on December 5, 2023. According to the HOA board president, Sherri Rosselot, the freezing of $1.2 million in funds to satisfy Corcoran’s judgment has severely compromised the association’s ability to operate and maintain the community.
Residents have expressed outrage at the HOA’s mismanagement, stating that poor decision-making and a lack of transparency have led to this crisis. “A small group was allowed to make big decisions that affected all of us, and now we’re paying the price,” said Meredith Norton, a concerned resident.
As legal proceedings continue, the HOA is reportedly relying on its insurance to cover the judgment, but no timeline has been provided. Additionally, the association expects to owe around $300,000 in attorney fees related to Corcoran’s case.
This situation highlights the urgent need for accountability in homeowners associations and raises questions about the safety and management practices in residential communities across the region. Residents are now watching closely as the HOA navigates through bankruptcy and attempts to address the fallout from this devastating verdict.
Stay tuned for updates as this story develops.
