Toxic Mold Found In Folsom Condos Video

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KCRA 3 Investigates: Toxic Mold Found In Folsom Condos

Residents Moving Out Amid Health Concerns

POSTED: 10:39 am PDT July 20, 2006

UPDATED: 3:54 pm PDT July 20, 2006

http://www.kcra.com/news/9549587/detail.html

VIDEO

FOLSOM, Calif. -- Dozens of homeowners said they've been cheated out

of hundreds of thousands of dollars after being duped into buying

condominiums filled with dangerous levels of toxic mold.

Some residents are getting sick and officials said an investigation

is now under way.

Staci Disilva said four months ago, she paid more than $240,000 for

an apartment at Waterford Place in Folsom. But she's not living in

the unit because it's filled with toxic mold.

Disilva said she's concerned about her health and she's not alone.

Mike Sullivan said he's also moving out of his unit, where mold is

visible along the kitchen wall and in the hallway. It's also in the

carpet and ventilation system.

" A lot of these units are coming up with high levels of harmful

mold, " Sullivan said.

Sullivan, Disilva and more than 38 other residents bought their

apartments from Prometheus Real Estate Group. Twenty of those

residents are now talking to an attorney.

" My two children -- the older two -- have been diagnosed with

asthma, " resident Violent Vernon said.

Testing for mold in Vernon's unit has turned up potentially deadly

mold levels.

According to the Center for Disease Control, aspergillus mold -- the

type found in Vernon's unit -- is the second most common type of

mold requiring hospitalization in the United States.

Similar tests revealed dangerous levels of mold in more than a half-

dozen units. Residents said they are experiencing headaches,

nosebleeds and breathing problems.

Weaver manages the property for Prometheus Real Estate and

admits there's mold in several buildings, but she refused to speak

any further with KCRA 3 Investigates.

Prometheus Real Estate purchased the property in April 2005. Before

selling off the apartments as condominiums, the city had to give its

approval.

Amy Fagans, the city's director of neighborhood services, was

directly involved with approving the project.

But documents obtained by KCRA 3 show Prometheus Real Estate and the

city of Folsom should have been aware of the potential dangers of

mold. A report, required to be on file with the city and prepared by

a private company, points out suspected mold in more than 170 units.

The report was filed with the city long before the project was

approved and the units were sold.

Reporter: Have you read that report?

Fagans: I've reviewed it. I haven't read it extensively.

Reporter: Did you know that 25 percent of the units pointed out

suspected mold?

Fagans: I did not.

Reporter: More than 213 times suspected mold was pointed out in the

units that were set to be sold.

Fagans: But suspected mold could also mean mildew. It was not

tested. It wasn't analyzed. That's my understanding.

That's because the city of Folsom does not require testing. But it

does require that the developer disclose the suspected mold to

potential buyers, such as Disilva and Vernon.

Reporter: Did they ever tell you that?

Vernon: No.

Reporter: Would you have purchased your unit had they told you that?

Vernon: No.

According to the report, Prometheus Real Estate knew Vernon's unit

showed major signs of suspected mold 10 months before they sold it

to her for more than $300,000.

In fact, almost every unit testing positive for high levels of toxic

mold shows up in the report, which was completed in March 2005.

The warning signs were there but the buyers said they were never

informed.

As a result of KCRA 3's investigation, the city of Folsom said it is

launching its own investigation.

KCRA 3 Investigators spoke with the owner of Prometheus Real Estate

by phone. He said his company is willing to pay for any mold

remediation that needs to take place.