UPDATE: A homeowners association (HOA) in Parker, Colorado, has been officially bankrupted following a staggering $1.4 million court verdict tied to severe mold issues in a resident’s townhome. The ruling underscores the dire consequences of negligence, as the HOA failed to address critical maintenance problems that turned a once-beloved home into a hazardous environment.
Judge Robert Lung issued the verdict in September, describing the situation of resident Kristina Corcoran, 55, as a “dangerous nightmare.” Corcoran, who purchased her townhome in 2015, reported water intrusion issues as early as 2017, only to see the situation worsen over the years due to inadequate repairs and management.
Corcoran’s townhome, located in the Highlands at Stonegate community, has been rendered nearly uninhabitable. The judge noted that one-third of her home is now inaccessible due to toxic mold, leading to severe health issues for Corcoran, including infections and debilitating pain. She has become unable to pursue activities she once enjoyed, like running marathons or hiking with her dog.
Despite numerous complaints and an eventual lawsuit filed in 2022, the HOA’s response was minimal. The situation deteriorated further when they merely covered wet carpets with plastic wrap, exacerbating the mold problem. Corcoran’s plight culminated in the court’s decision to award her $1.4 million, plus attorney fees that are still being calculated.
In a desperate move to protect its financial resources, the Highlands at Stonegate Condominium Association sought Chapter 11 bankruptcy protection on December 5, 2023. President Sherri Rosselot stated in an affidavit that $1.2 million in funds are currently frozen due to Corcoran’s garnishment actions, leaving the HOA struggling to maintain operations for its remaining residents.
Residents have expressed outrage over the HOA’s management decisions, citing a lack of transparency and accountability. Meredith Norton, a resident, commented, “Our HOA’s bankruptcy filing shows how years of poor decisions and a lack of transparency have hurt our community. A small group was allowed to make big decisions that affected all of us, and now we’re paying the price.”
The HOA’s insurance companies are expected to cover the $1.4 million judgment, but there is uncertainty about when this will occur. The association also anticipates incurring an additional $300,000 in attorney fees related to Corcoran’s legal battle.
As the community grapples with the fallout from this case, the status of the HOA remains precarious. Residents are calling for a complete overhaul of the board, hoping for more responsible governance that prioritizes the well-being and safety of all homeowners.
This developing situation highlights the critical need for accountability in homeowners associations, which can drastically impact the lives of residents. Stay tuned for further updates as this story unfolds.
