HOA Bankrupts After $1.4M Verdict Over Toxic Mold Crisis

BREAKING: A homeowners association (HOA) in Parker, Colorado has declared bankruptcy after being hit with a staggering $1.4 million court verdict. This financial crisis stems from a prolonged neglect of severe mold issues that rendered a resident’s home unlivable, sparking outrage among community members.

The Highlands at Stonegate HOA, responsible for maintaining 446 condos constructed between 2004 and 2006, has been ordered to compensate Kristina Corcoran, who has endured a “dangerous nightmare” in her home. Judge Robert Lung‘s September ruling highlighted Corcoran’s plight, as mold exposure has severely impacted her health, leading to symptoms like blurry vision and chronic pain.

Corcoran purchased her two-story home in 2015. By 2017, she began experiencing severe water damage due to poor construction practices, including faulty grading and inadequate waterproofing. Despite numerous complaints over the years, the HOA failed to take sufficient action until Corcoran filed a lawsuit in 2022.

In his ruling, Judge Lung noted that Corcoran’s home is now largely inaccessible due to toxic mold, forcing her to discard significant personal belongings. The court’s decision came after the HOA attempted minimal fixes, like placing plastic wrap over wet carpets, which only exacerbated the mold issue.

With the HOA now facing bankruptcy, Sherri Rosselot, president of the condo board, confirmed that the association sought Chapter 11 protection to preserve operating funds and continue serving its community. “We need to protect the funds in our accounts for all owners,” she stated in a recent court affidavit. However, Corcoran’s garnishment efforts have frozen $1.2 million of the HOA’s funds, complicating the association’s financial situation.

Community members have expressed their frustration, citing a lack of transparency and accountability from the HOA board. Meredith Norton, a resident, emphasized the detrimental impact of years of poor decision-making, stating, “A small group was allowed to make big decisions that affected all of us, and now we’re paying the price.”

As the HOA navigates its bankruptcy proceedings, residents are left anxiously awaiting the outcome. The situation has raised significant concerns about property values and the future of the community. Experts predict that the fallout from this case could set a precedent for other HOAs facing similar issues across the country.

Next steps for the Highlands at Stonegate HOA include potential negotiations with insurance companies, as they hope to secure funds to cover Corcoran’s judgment. Residents are closely monitoring these developments, aware that the outcome will have lasting implications for their homes and community.

This developing story underscores the urgent need for accountability and transparency in property management, as homeowners grapple with the consequences of neglect within their associations. Stay tuned for further updates as this situation unfolds.