BREAKING: The Highlands at Stonegate North Condominium Association in Parker, Colorado, has declared bankruptcy following a staggering $1.4 million court verdict. This decision comes after a long-standing issue involving toxic mold that turned resident Kristina Corcoran’s home into a health hazard.
According to Judge Robert Lung, Corcoran’s once-beloved home has morphed into a “dangerous nightmare” filled with hazardous mold, which has severely impacted her health and quality of life. The judge’s ruling, delivered on September 15, 2023, found the condo association and its management company, M&M Property Management, liable for neglecting the serious mold problem that began as early as 2017.
Corcoran, now 55 years old, purchased her two-story condo in 2015, only to find it plagued by water intrusion due to poor grading and inadequate waterproofing. Despite her repeated complaints, the HOA’s inaction forced her to file a lawsuit in 2022. The situation deteriorated further when the association attempted to cover the wet carpet with plastic wrap, exacerbating the mold issue.
At trial, it was revealed that one-third of Corcoran’s home was inaccessible due to toxic mold, leading to severe health issues including brain fog and infections. She is currently unable to afford alternative housing and has been left with no choice but to remain in her contaminated home.
In response to the court’s ruling, the condo association’s president, Sherri Rosselot, stated in a December 5 affidavit that the association sought Chapter 11 protection to safeguard its operating funds. Currently, $1.2 million in funds are frozen due to Corcoran’s garnishment efforts, complicating the association’s financial standing.
Rosselot expressed that the HOA believes its insurance should cover the damages, but there is uncertainty about when those funds will be released. Additionally, the association faces potential legal fees of $300,000 for Corcoran’s attorneys, further straining its resources.
Residents have voiced their frustrations over the management of the HOA, stating that years of poor decisions have led to this crisis. Meredith Norton, a resident, remarked, “Our HOA’s bankruptcy filing shows how years of poor decisions have hurt our community.”
The fallout from this case is significant, as it highlights the impact of mismanagement on homeowners’ lives and property values. With the HOA’s future uncertain, residents are left wondering about the stability of their community.
As developments unfold, community members and stakeholders await clarity on how the bankruptcy proceedings will affect their homes and the potential for accountability for years of neglect. This urgent situation serves as a stark reminder of the importance of effective management and communication within homeowner associations.
Stay tuned for ongoing updates as this story develops.
