BREAKING: A homeowners association (HOA) in Parker, Colorado, has declared bankruptcy after a staggering $1.4 million court verdict linked to severe mold issues that rendered a resident’s home unlivable. The ruling, confirmed on December 5, 2025, highlights a troubling saga of neglect that has devastated the health and living conditions of resident Kristina Corcoran.
The Highlands at Stonegate condo association, which oversees 446 condos built between 2004 and 2006, has faced mounting criticism after Corcoran, 55, reported serious health impacts related to toxic mold in her townhome. Judge Robert Lung described Corcoran’s once “fairy tale home” as a “dangerous nightmare” in a verdict that underscores the association’s failure to address critical maintenance issues.
Corcoran purchased her two-story home in 2015, only to discover alarming water infiltration by 2017. Poor construction practices, including inadequate waterproofing and drainage systems, led to worsening conditions. Despite numerous complaints, the HOA took no significant action until Corcoran initiated legal proceedings in 2022. The situation escalated when the HOA’s response involved merely placing plastic wrap over the wet carpet, ultimately exacerbating the mold problem.
The court found that one-third of Corcoran’s home is now inaccessible due to toxic mold, which has inflicted severe health issues, including vision problems and infections. Judge Lung noted that Corcoran, who was once an active marathon runner, is now unable to maintain her lifestyle due to her deteriorating condition.
In a desperate situation, Corcoran began garnishing the condo association’s bank accounts after the verdict, a move that has frozen $1.2 million in funds. To protect its remaining assets and maintain community operations, the HOA has sought Chapter 11 bankruptcy protection. President of the condo board, Sherri Rosselot, stated that the association’s insurance companies may ultimately cover the judgment, but no timeline has been provided for when this will occur.
Residents have expressed outrage over the board’s mismanagement and lack of transparency. Meredith Norton, a fellow homeowner, voiced concerns about the HOA’s decision-making process, stating, “Our HOA’s bankruptcy filing shows how years of poor decisions and a lack of transparency have hurt our community.”
This situation serves as a crucial reminder of the potential repercussions of inadequate property management and the devastating effects on community members. The fallout from this case raises questions about the future of the Highlands at Stonegate community and the accountability of its leadership.
As the HOA navigates its bankruptcy proceedings, all eyes will be on its next steps and how it intends to address the financial burden placed on its residents. For Corcoran, the verdict offers little relief as she continues to grapple with the consequences of living in a mold-infested home.
Residents are urged to stay informed as the situation develops, with many advocating for greater oversight and reform within the HOA structure to prevent similar occurrences in the future.
Stay tuned for further updates on this evolving story as more information becomes available.
