BREAKING: A homeowners association (HOA) in Parker, Colorado, has declared bankruptcy following a staggering $1.4 million court verdict linked to severe mold issues in a resident’s townhome. This urgent situation arose after Kristina Corcoran, 55, faced years of health complications and property damage due to the HOA’s negligence.
Judge Robert Lung ruled in September that Corcoran’s home, once considered a “fairy tale,” became a “dangerous nightmare” as mold proliferated within her residence. The Highlands at Stonegate HOA, overseeing 446 condos built between 2004 and 2006, ignored multiple complaints from Corcoran, leading to a dangerous living environment.
Corcoran purchased her two-story home in 2015, but by 2017, she began noticing water intrusion caused by inadequate waterproofing and poor construction. Despite her ongoing reports, the HOA failed to act until she filed a lawsuit in 2022. The situation escalated as rainwater poured into her home, leading to toxic mold that has severely impacted her health, causing symptoms such as blurry vision and brain fog.
As of December 5, 2023, the HOA has sought protection under Chapter 11 bankruptcy to preserve funds for the community, stating that $1.2 million is currently frozen due to Corcoran’s garnishment efforts. The condo association’s president, Sherri Rosselot, emphasized the need to protect operating funds for the benefit of all residents.
The financial turmoil has left residents frustrated, with many voicing concerns about a lack of transparency and accountability from the board. “Years of poor decisions have hurt our community,” resident Meredith Norton told reporters. Residents feel the HOA’s management has ignored serious construction defects, exacerbating the crisis.
Corcoran’s case is a stark reminder of the potential consequences of neglect within community associations. The HOA’s bankruptcy filing raises questions about how its insurers will handle the hefty judgment and additional legal fees, estimated at $300,000 for attorney costs.
As the situation develops, residents are left wondering what the future holds for their community and property values. The ongoing fallout from this case is a critical reminder of the importance of accountability in homeowners associations and the dire impacts of neglect on residents’ lives.
Stay tuned for further updates on this developing story.
