August 14, 2025 | Mark Luis Foster

In what appears to be an exceptionally rare instance, a Colorado HOA has filed for bankruptcy as of July 15 due to massive legal bills it had to pay to defend itself from homeowner lawsuits.

The bankrupt HOA is Todd Creek Farms, described as an “up-scale subdivision” west of Brighton in Adams County, just NE of Denver. Its board president, Jason Pardikes, said the filing was made in order to “stop the bleeding.” And in other twist, oil and gas drilling on the property are paying for the HOA’s massive legal fees.

The bankruptcy filing comes on the heels of many years of chaos that stem from alterations in the HOA’s covenants, an apparent “swap” of board members in order to extend a sitting board member’s term, and allegations that the board’s president has financial ties to a landscaping company hired by the association.

So what is the bleeding that is being stopped? The HOA has paid some $900K to fight a lawsuit filed by 21 homeowners on the property, or about 5% of the 370 homes at Todd Creek Farms. The lawsuit filed in 2023 claims “the swap of two board members’ terms violated the HOA bylaws and code of conduct.”

According to the Denver Post:

In depositions by attorneys for the HOA, some plaintiffs said they didn’t have firsthand knowledge of various allegations in the lawsuit. Pardikes said previous board members, including plaintiffs in the lawsuit, participated in the kind of swap of board seats that critics said was a ploy for him to extend his time in office. He was re-elected to the board in February . . . The board also failed to disclose HOA records as required and documents in the court case and failed to carry out its fiduciary duties in its handling of the contract with Method Landscaping Services, the lawsuit said. For now, though, the lawsuit is on hold while the bankruptcy court decides the way forward.

Pardikes, the board’s president, told the Denver Post that the HOA’s legal fees from the lawsuit average some $40,000 per month, and that the HOA would have been unable to pay for services. The Post indicated that if the court approves the reorganization brought on by the Chapter 11 filing, the HOA could resume payments to residents from oil and gas drilling on the subdivision’s property. The money is being used to pay legal expenses.

Oil and gas drilling in an upscale HOA? Interesting. I’m whistling the tune to the Beverly Hillbillies.

The Post goes on to say that the plot thickens, with Pardikes at the center of the homeowner lawsuit due to his direct financial benefit from a hired landscaping company.

“We believe that [Paradikes] benefitted to the tune of well over $100,000, it’s fair to say over $150,000, from the money that Method Landscaping Services was paid by Todd Creek Farms HOA,” Peter Towsky [attorney for the homeowners] said. The lawsuit’s plaintiffs had access to contracts showing that the HOA paid the landscaping company $219,000 for work, including redoing a trails system, Pardikes said. In May, his attorney filed notice of intent to sue the Adams County Sheriff’s Office and the detective who investigated claims of theft from Todd Creek Farms by Pardikes.

I thought these things only happened in Texas or Florida, but now Colorado joins into the “stranger things” HOA club.

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