UPDATE: The Highlands at Stonegate Condominium Association has declared bankruptcy following a staggering $1.4 million court verdict linked to toxic mold issues in a resident’s home. This urgent development was confirmed on December 5, 2023, after years of neglect left resident Kristina Corcoran trapped in a “dangerous nightmare.”
In a damning ruling, Judge Robert Lung stated that Corcoran’s once-beloved home had turned into a health hazard due to the association’s failure to address severe mold caused by water damage. This verdict highlights a broader crisis affecting homeowners in the community of Parker, Colorado, where the condo association is now facing dire financial consequences.
Corcoran purchased her two-story townhome in 2015, but by 2017, alarming water intrusion issues began to surface. Investigations revealed poor construction practices that included inadequate waterproofing and faulty drainage systems. Despite her repeated complaints, the association did little to remedy the situation, ultimately leading Corcoran to file a lawsuit in 2022.
Judge Lung’s verdict noted that Corcoran, once an avid marathon runner, now suffers debilitating health issues including infections and brain fog due to mold exposure. The severity of her situation is underscored by the fact that a third of her home is now inaccessible because of toxic mold. “She cannot move out because she lacks the financial resources to rent or purchase a second home,” stated Judge Lung.
Facing the financial fallout, the HOA’s president, Sherri Rosselot, revealed in a bankruptcy court affidavit that the association was forced to seek Chapter 11 protection. She stated, “To protect the funds in its accounts for the benefit of all the condominium owners, prevent the depletion of all operating funds, and allow it to continue to operate and maintain the community, the sought protection under Chapter 11.”
As a result of Corcoran’s garnishment efforts, the condo association has $1.2 million in funds frozen, complicating their ability to operate. The association estimates that, in addition to the $1.4 million owed to Corcoran, they may also be liable for an additional $300,000 in attorney fees.
Residents have expressed outrage over the HOA’s mismanagement. Meredith Norton, a community member, commented, “Our HOA’s bankruptcy filing shows how years of poor decisions and a lack of transparency have hurt our community.” Concerns have been raised that a small group of board members made significant decisions without proper input from homeowners, affecting property values and community trust.
As the situation develops, the community watches closely, hoping for resolution and accountability. The condo association’s future hangs in the balance, and residents are left wondering about the long-term implications for their homes and financial stability.
Stay tuned for more updates on this unfolding story as the legal and financial ramifications continue to evolve.
