UPDATE: A homeowners association (HOA) in Parker has been declared bankrupt after a staggering $1.4 million court ruling linked to severe mold conditions in a resident’s home. This urgent verdict, issued on September 1, 2025, has left many in the community reeling as they grapple with the fallout.
The Highlands at Stonegate, a condo community with 446 units built between 2004 and 2006, is now facing dire financial consequences after ignoring repeated pleas from homeowner Kristina Corcoran, 55. Judge Robert Lung described Corcoran’s once-dream home as a “dangerous nightmare,” revealing how neglect and mismanagement transformed her living situation into a health crisis.
Corcoran purchased her two-story home in 2015, but by 2017 she was already confronting water damage from inadequate drainage and roofing issues. Despite numerous complaints, the HOA failed to act. Instead, after Corcoran filed a lawsuit in 2022, they merely placed plastic wrap over wet carpets, exacerbating the mold problem.
The judge’s findings revealed that one-third of Corcoran’s home is now inaccessible due to toxic mold, leading to severe health issues including infections and debilitating brain fog. She has been forced to dispose of many personal belongings and cannot afford to relocate, as she lacks the financial means for alternative housing.
In an official statement, Judge Lung noted,
“While Ms. Corcoran knows the danger of staying in the residence, she cannot move out because she lacks the financial resources.”
As a direct result of the court ruling, the HOA is now attempting to shield its remaining assets under Chapter 11 bankruptcy protection, with a significant $1.2 million frozen due to Corcoran’s garnishment efforts. The HOA’s president, Sherri Rosselot, stated that this measure aims to prevent the depletion of funds necessary for community operations.
Residents have expressed outrage over the HOA’s management practices, which they claim led to this financial crisis. Meredith Norton, a resident, commented, “Our HOA’s bankruptcy filing shows how years of poor decisions and a lack of transparency have hurt our community.” Many are calling for a complete overhaul of the board as they see a lack of accountability for past actions.
The HOA’s liability extends beyond the $1.4 million judgment, with an additional estimated $300,000 owed to Corcoran’s legal team. The community is now left in uncertainty as they await decisions from insurance companies regarding coverage for the awarded damages.
As this situation unfolds, all eyes are on the Highlands at Stonegate and the potential ripple effects on property values and community stability. Residents are urged to stay informed about the developments in this significant legal and financial crisis that is reshaping their neighborhood.
