WHITING – Members of the executive board of Crestwood Village Co-Op III were served with subpoenas as Ocean County officials investigate complaints tied to mold and the handling of remediation within the senior community.
The subpoenas were served on December 17 during a Crestwood Village III homeowners association meeting by investigators from the Ocean County Department of Consumer Affairs. They were signed by Director Ronald Heinzman and Laura E. Comer, Counsel to the Director of Consumer Affairs.
Those served included Allen Brown, president; Chris Birnbaum, vice president; Elt Flauntleroy, treasurer; Sharon Hasbrouck, secretary; Rose Kantenwein, board trustee; and Kristie Bendick, the HOA’s manager. The recipients have until January 14 to respond.
The documentation requested spans several years. According to the subpoena rider, investigators are seeking records dating from April 1, 2021, to the present, including contractor names, work orders, invoices, repair orders, HOA board minutes reflecting approvals or denials concerning home improvement contractors, permits, and any complaints or materials related specifically to mold and mold remediation at the property in question and any attached dwelling.
Unrelated court filings identify Crestwood Village Co-Op III, Inc., as a cooperative community in which the association owns all land and improvements, including dwellings. Residents do not own the structures themselves. They hold stock certificates and occupy units under a proprietary lease.
Clean Home, Dirty Air
This reporter visited the home that is the subject of the consumer affairs subpoena. The house was immaculate. Surfaces were clean. Furniture was orderly. An air purifier was running continuously.
Despite that, the smell was unmistakable.
There was a distinct odor consistent with mold. It lingered in the air even with windows closed against the winter cold. The homeowner said the smell becomes significantly worse during warmer, more humid months.
The resident said that the mold is believed to originate in the crawl space, which she does not own and has been told she is not permitted to enter. She said she has repeatedly asked for proper remediation, not encapsulation.
“They put plastic down and a dehumidifier,” she said. “They never remediated first.”
She said she has requested alternative dispute resolution through the HOA, as required under state law, but has not received a meeting.
Kristie Bendick, the HOA manager, did not respond to multiple requests for comment for this article.
A Longer History
The subpoenaed address is not the only one tied to mold concerns at Crestwood Village III.
Maureen Capuzzo described a separate, long-running situation involving her father’s home within the same community. Her family’s experience is the subject of an ongoing lawsuit against Crestwood Village Co-Op III.
Capuzzo said her parents purchased the unit in 2004 as a place where her father could live out his remaining years. She said problems were noted at the time of closing, including issues with windows and the living room ceiling.
Over time, she said, water intrusion worsened. Mold developed. Structural components deteriorated.
In 2018, after her father became seriously ill with double pneumonia, testing revealed what she described as extraordinarily high levels of mold inside the home. She said requests for remediation were denied.
“They (Crestwood) own the structure. They own the crawl spaces and attics,” Capuzzo said. “But they refused to fix it.”
Her father has since passed away. The unit, she said, cannot be sold in its current condition.
Capuzzo and her brother have filed a lawsuit against Crestwood, alleging an ongoing mold problem that was not disclosed at the time of purchase and has not been remediated. They claim breach of fiduciary duty and argue the unaddressed mold has rendered the property unmarketable.
Crestwood’s answer denies wrongdoing and disputes liability. The association asserts multiple affirmative defenses, including that it acted in good faith, that plaintiffs failed to mitigate damages, and that any losses were caused by factors outside Crestwood’s control.
The litigation remains pending.
Township Violations
Separate from the consumer affairs investigation, Crestwood Village III is also named in a lawsuit filed by the Township of Manchester.
Minutes for a Manchester Township March 10, 2025 meeting quote Capuzzo and others complaining of the mold issues and the fact that work is being done in the crawl spaces by unqualified individuals without permits. The complaints appeared to initiate investigation.
According to court filings, the township issued violations in March of last year after inspectors found that dehumidifiers had been installed in approximately 60 dwelling units without required electrical permits. The township alleges Crestwood failed to abate the violations or obtain re-inspections.
Inspection records indicate that the address tied to the mold complaint remained in violation as of December.
Manchester Township Business Administrator Carl Block said the mold issue itself does not fall under township jurisdiction, but unpermitted work does.
“We issued violations for work being done without permits,” Block said. “Consumer Affairs is handling the mold. We are each going after what falls under our authority.”
Block said a lack of response from the management company has been a consistent problem.
“That’s the common theme,” he said. “Rather than working with us to fix issues right away, there’s delay.”
Gaps In Oversight
Ocean County Commissioner Robert Arace said the Crestwood Village III situation has been on his radar since his time as mayor of Manchester.
He said limitations in state law make it difficult for agencies to compel action from homeowners’ associations beyond requiring alternative dispute resolution.
“The Department of Consumer Affairs doesn’t have a lot of authority when it comes to HOA oversight,” Arace said. “That’s what led Ron to issue subpoenas for information.”
Arace said he and Heinzman have discussed pursuing legislative changes to give consumer affairs more enforcement power. The commissioner said he plans to speak with state legislators representing Ocean County.
“This is about protecting seniors and their living conditions,” Arace said.
Heinzman agreed. “Although we can’t discuss particulars of an open investigation, we are going to do everything we can under our rules and regulations to compel Crestwood Village III to do the right thing for its residents.”
