BREAKING: A homeowners association (HOA) in Parker, Colorado, has plunged into bankruptcy following a staggering $1.4 million court verdict linked to severe mold issues in a resident’s townhome. The Highlands at Stonegate HOA has been ordered to compensate Kristina Corcoran, 55, who has suffered debilitating health effects due to the mold crisis that left her home uninhabitable.
The verdict, handed down by Judge Robert Lung on September 5, 2023, marks a significant legal blow to the HOA, which has failed to adequately address the mold issue that turned Corcoran’s “fairy tale home” into a “dangerous nightmare.” The court’s decision confirms the dire consequences of negligence by the HOA and its management firm, M&M Property Management.
Corcoran purchased her two-story condo in 2015, but by 2017, she began experiencing serious issues with water infiltration, attributed to poor construction practices. Despite numerous complaints, the HOA neglected the problem until Corcoran resorted to legal action in 2022. The situation escalated when the HOA’s temporary fixes, including covering wet carpets with plastic wrap, only exacerbated the mold growth.
As a result of mold exposure, Corcoran has faced severe health challenges, including vision impairment and chronic pain, making her unable to lead a normal life. The court determined that one-third of her home is now inaccessible due to toxic mold, forcing Corcoran to dispose of many personal belongings.
“While Ms. Corcoran knows the danger of staying in the residence, she cannot move out because she lacks the financial resources to rent or purchase a second home,” Judge Lung stated in his ruling.
In the aftermath of the ruling, Corcoran has begun garnishing the HOA’s bank accounts to recover her damages, prompting the association to seek Chapter 11 bankruptcy protection. The HOA’s president, Sherri Rosselot, indicated on December 5, 2023, that $1.2 million in funds are currently frozen due to Corcoran’s garnishment efforts, jeopardizing the financial stability of the entire community.
Residents have expressed their outrage over the HOA’s management, arguing that a small group of board members made critical decisions without proper consultation. “Years of poor decisions and a lack of transparency have hurt our community,” said resident Meredith Norton. “Serious construction defects were ignored until it was too late.”
The HOA is now facing the prospect of not only paying the $1.4 million verdict but also an estimated $300,000 in legal fees for Corcoran’s attorneys, Michael Curry and Theodore Wells. The financial burden has raised serious concerns among residents about the future of their property values and the overall management of the HOA.
As the situation develops, residents are calling for accountability and change within the HOA’s leadership. The outcome of this case serves as a stark reminder of the potential consequences of mismanagement and negligence in community living.
Stay tuned for updates on this evolving story as the HOA navigates its bankruptcy proceedings and the impact on residents continues to unfold.
