Townhomes, 75 units. Relatively new. Did they make a major mistake?
Not as long as you never open that window and disregard any kind of standards.
If you do that, it’s all good.
Perhaps you could lend a chimney stretcher to the builder they are very similar in appearance to a pipe stretcher for use when you cut the pipe to short, will extend the pipe to any length needed:p 
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April fools 
It was a “fake” chimney stack. Absolutely nothing vented through it. The fireplace was just a vented gas appliance. But I didn’t realize this until after I took the first two pictures.
Makes sense to me. After all, who wouldn’t want an ugly non-functional chimney on their home?