UPDATE: A homeowners association in Parker, Colorado, has declared bankruptcy following a staggering $1.4 million court verdict over severe mold issues in a resident’s home. The ruling, delivered by Judge Robert Lung in September, highlights a disturbing case where Kristina Corcoran suffered health complications due to neglect from the Highlands at Stonegate HOA.
This urgent situation unfolded when Corcoran, 55, purchased her two-story townhome in 2015, only to find it turning into a “dangerous nightmare” by 2017. Persistent water intrusion, attributed to poor construction and inadequate maintenance, led to toxic mold proliferating within her residence. Despite repeated complaints, the HOA failed to act, exacerbating the damage until she was forced to file a lawsuit in 2022.
The judge’s verdict revealed that one-third of Corcoran’s home is now inaccessible due to mold, causing her serious health issues, including infections and neurological symptoms. Corcoran’s plight is a stark reminder of the potential hazards hidden in seemingly ideal homes.
In a dramatic turn of events, the HOA’s financial stability crumbled after Corcoran began garnishing their accounts. As a result, the Highlands at Stonegate North Condominium Association filed for Chapter 11 bankruptcy protection on December 5, 2023. The condo board president, Sherri Rosselot, stated that approximately $1.2 million in funds are currently frozen due to Corcoran’s actions, severely limiting the HOA’s ability to operate.
Residents of the Highlands at Stonegate are expressing outrage over the HOA’s management. “Our HOA’s bankruptcy filing shows how years of poor decisions and a lack of transparency have hurt our community,” said resident Meredith Norton. Many homeowners report feeling ignored as board members made significant decisions without consultation.
As the situation unfolds, the condo board anticipates that it or its insurers will also face an additional $300,000 in legal fees to Corcoran’s attorneys. The total financial implications of the ruling could exceed the HOA’s available funds, leaving residents concerned about their property values and future living conditions.
What happens next remains uncertain as the residents await clarity from their insurance companies regarding the payment of the $1.4 million judgment. The community’s ability to recover from this crisis hinges on swift action and accountability from the HOA.
Residents and observers will be closely monitoring the developments surrounding this case, as the implications extend beyond one household, touching the lives of all who call Highlands at Stonegate home. As this story continues to evolve, it raises critical questions about homeowner associations’ responsibilities and transparency in property management.
