UPDATE: A condominium association in Parker, Colorado has been declared bankrupt following a staggering $1.4 million court verdict linked to a toxic mold crisis that devastated a resident’s home. The ruling, issued by Judge Robert Lung in September 2023, found that the Highlands at Stonegate North Condominium Association ignored numerous complaints from resident Kristina Corcoran about severe mold and structural issues, leading to her health deterioration and financial ruin.
Corcoran, a 55-year-old former marathon runner, purchased her two-story townhome in 2015. By 2017, she began noticing water damage, which was attributed to inadequate waterproofing and poor drainage. As mold spread throughout her home, the situation escalated; Judge Lung noted that one-third of her residence is now uninhabitable due to toxic mold.
Corcoran’s plight has taken a toll on her health, causing symptoms like blurry vision and chronic pain. She is trapped in a home she cannot sell or rent due to the mold infestation, leaving her without the means to relocate. Despite her attempts to address the issue, the HOA failed to respond adequately until she filed a lawsuit in 2022.
In a devastating twist, Corcoran has begun garnishing the condo association’s bank accounts to recover the court-ordered damages. As a result, the association filed for Chapter 11 bankruptcy on December 5, 2023, citing the need to safeguard funds for all residents while dealing with Corcoran’s garnishment. The HOA claims that $1.2 million in funds are currently frozen due to these legal actions.
Residents have expressed outrage over the HOA’s mismanagement and lack of transparency.
“Our HOA’s bankruptcy filing shows how years of poor decisions and a lack of transparency have hurt our community,”
said resident Meredith Norton. Community members are demanding accountability for the board’s actions and are calling for changes in leadership to prevent similar situations in the future.
The condo association’s president, Sherri Rosselot, stated in a court affidavit that they believe insurance companies should cover the $1.4 million verdict, but there is no confirmation on when that will happen. Meanwhile, the association faces an estimated additional $300,000 in attorney fees related to the case.
As this situation unfolds, residents are left grappling with the implications of this bankruptcy on their property values and living conditions. The urgency for change is palpable, as homeowners seek to reclaim control over their community and ensure that such mismanagement does not occur again.
This developing story highlights the critical importance of accountability in homeowner associations and the dire consequences residents face when they are neglected. Stay tuned for further updates on this pressing issue affecting the Parker community.
