WNCSOS

State Acknowledges Western North Carolina Real Estate Landslide Hazards

2009-12-15T05:52:00.001-08:00

In February 2005 members of the North Carolina General Assembly had no difficulty recognizing the fact that hazardous-land real estate development would result in the continuing loss of lives and homes. Prompted by the catastrophic Western North Carolina landslide events of September 2004 and the need for federal emergency funding, legislators recommended hazardous-land identification maps as protective measures:

Hurricanes Frances and Ivan wrought havoc upon Western North Carolina impacting the region on a scale not experienced before in that area of the State. The President issued two federal disaster declarations for the Western Region of the State. During Hurricane Ivan, the community of Peeks Creek was devastated by a debris flow triggered by heavy rains. The debris flow traveled speeds as great as 33 miles per hour for two and a quarter miles from the top of Fishhawk mountain. Five persons were killed and 15 homes destroyed by the flow that was estimated to be several hundred feet wide and up to 40 feet high. Other communities that were particularly hard hit by landslides include the Starnes Creek area in Buncombe County, the Little Pine area in Madison County, the White Laurel community in Watauga County, and the Bear Rock Estates in Henderson County. Further...people could not know the landslide risks associated with their housing location because such maps are not readily available. The State needs to…prepare landslide zone mapping for the region so that homes may be rebuilt in safe areas.

Those regional real estate landslide maps are currently unpublicized works-in-progress. Only three out of twenty-five landslide-hazardous counties have been mapped: Macon 2006 , Watauga 2008 and Buncombe 2009.

Thanks to pressure from the North Carolina Association of Realtors, the federally-mandated landslide identification maps remain out of view and hazardous-land information is not communicated to at-risk clients.

Buying Favors

The North Carolina Association of Realtors touted its successful lobbying efforts on May 15, 2009 with the following legislative update:

Mountain Property Development and Disclosure Legislation

Legislation to regulate mountain property transactions and require local governments to more stringently regulate development in those counties was thwarted and instead the issues will be studied. Reps. Ray Rapp (D-Madison), Phil Haire (D-Jackson), and Susan Fisher (D-Buncombe) introduced HB 782 (Safe Artificial Slope Construction Act), which would require local governments to enforce more rules for development in the mountains and amend the residential property disclosure statement to include disclosure of certain mountain property. In response to opposition from REALTORS® from the western part of the state and most other mountain legislators, this bill was turned into a study bill to research landslides and have public hearings. There is to be a bipartisan, eight member panel which will report to the legislature in May of 2010.

The Failure to Disclose Material Facts

Western North Carolina Realtors have been apprised of the region’s hazardous-land conditions. They are also aware that all steep-slope (land above 15% grade) home sites will be evaluated and rated for landslide probability. Buncombe County real property was assessed for potential landslide loss in April 2009 but this data is not available to the public nor is it revealed on sales contracts or Subdivision Street Disclosure Statements.

Members of the North Carolina Association of Realtors may trust that they have no liability in this disclosure matter but they are mistaken. Anti-fraud statutes are clear. It is illegal to profit by schemes or tricks, by issuing untrue statements, by failing to disclose material facts, or by participating in deceitful and fraudulent business practices.

Western North Carolina Realtors can correct substantive contractual omissions by providing two addenda disclosure statements. The first is applicable to sales contracts and the second to private road ownership.

Western North Carolina Hazardous-Land Real Estate Disclosure Statement

Please be advised that you are buying property in a federally designated landslide-prone county.

The decision to buy a landslide-hazardous home site should be well-considered. Flood and fire property insurance is available. Landslide insurance protection is not obtainable. The inability to insure this high-risk real property will have an adverse effect on property values and perhaps the ability to refinance. Please seek legal advice concerning landslide liability.

Steep Slope Subdivision Street Disclosure Statement

This subdivision’s roads were built on likely unstable soils. Landslides and erosion are recognized chronic hazards above a 15% slope. Soil assessments for this subdivision can be found at the county Soil & Conservation Office. The developer was not required to conduct geotechnical, hydrologic or soil suitability studies for this subdivision. Should this subdivision’s roads be damaged by predictable natural occurrences, the members of the homeowners’ association will be liable for all repairs.

The Cliffs at High Carolina Property Report Fails to Disclose Hazardous-Land Conditions

2009-12-15T05:28:00.001-08:00

The Cliffs at High Carolina, LLC sales practices are governed by federal law under the Interstate Land Sales Full Disclosure Act (“ILSFDA”). All purchasers of land in ILSFDA-defined subdivisions must receive a highly formatted full disclosure document titled The Property Report. The Cliffs at High Carolina Property Report was registered with the U. S. Department of Housing and Urban Development on October 21, 2008. Disclosures provided in the October 2008 Report pertain to only 99 out of 1,200 planned High Carolina lots.

On July 3, 2008 the U.S. Army Corps of Engineers issued a Public Notice (ID#: 200701619) regarding The Cliffs at High Carolina’s request for a permit. In the report the Corps identified 22 different soil types on the High Carolina steep slope, 3,200-acre, development site. Dominant soil types are Porters-Unaka complex (841), Toecane-Tusquitee complex (181) and the Edneyville-Chestnut complex (803).

As referenced in Western North Carolina Soil Surveys, these three soil types are not recommended as a construction base because of inherent instability. Even with expert engineering techniques, roads built on these soils are subject to slope failure and expensive repairs.

Roads built on landslide-prone soils are not a future financial concern for Jim Anthony, the developer of Cliffs at High Carolina, because legal title for The Cliffs at High Carolina's private roads are transferred to individual property owners at time of each lot sale via a conveyance document titled the Subdivision Street Disclosure Statement.

The Cliffs at High Carolina Property Report provides more than a dozen black box warnings concerning the developer, subdivision and individual lots but there is no reference to the costs of maintaining roads built on unstable soils. The following caveat should have been included in The Cliffs at High Carolina Property Report:

Steep Slope Subdivision Street Disclosure Statement

Portions of this subdivision’s roads were built on unstable soils. Landslides and erosion are recognized chronic hazards above a 15% slope. Soil assessments for this subdivision can be found at the county Soil & Conservation Office. The developer was not required to conduct geotechnical, hydrologic or soil suitability studies for this subdivision. Should this subdivision’s roads be damaged by predictable natural occurrences, the members of the homeowners’ association will be liable for all repairs.

Although not publicized, Buncombe County landslide predictability maps have been available since August 2009. Until such time the Buncombe County Digital Soil Survey Map is released, interested parties will have to rely on data from Western North Carolina Soil Surveys. As noted in the following soil assessment reports, The Cliffs at High Carolina soils are ill-suited for road construction.

Soil Survey Findings for Porters-Unaka Complex

Porters-Unaka complex— 8-15% Slopes
Local roads and streets: Poorly suited

Porters-Unaka complex—15-30% Slopes
Local roads and streets: Poorly suited

Porters-Unaka complex— 30-50% Slopes
Local roads and streets: Poorly suited

Porters-Unaka complex—50-95% Slopes
Local roads and streets: Unsuited

Soil Survey Findings for Toecane-Tusquitee Complex

Toecane-Tusquitee complex— 8-15% Slopes
Local roads and streets: Poorly suited

Toecane-Tusquitee complex&mdash 15-30% Slopes
Local roads and streets: Poorly suited

Toecane-Tusquitee complex— 30-50% Slopes
Local roads and streets: Poorly suited

Soil Survey Findings for Edneyville-Chestnut Complex

Edneyville-Chestnut complex— 15-30% Slopes
Local roads and streets: Poorly suited

Edneyville-Chestnut complex— 30-50% Slopes
Local roads and streets: Poorly suited

Edneyville-Chestnut complex— 50-95% Slopes
Local roads and streets: Unsuited

Landslide Hazards for Tiger and The Cliffs

2009-12-14T17:19:00.001-08:00

—The Buncombe County Soil Hazards Map has not been released—

Location of The Cliffs at High Carolina
Subdivision and Tiger Woods Golf Course
on Buncombe County Hazardous-Land Map— NCGS.

Slope Movements and Slope
Movement Deposits Map—NCGS

Stability Index Map—NCGS

Map of Known and Potential Debris
Flow Pathways—NCGS

No one has asked Jim Anthony, developer of The Cliffs at High Carolina, or Tiger Woods his partner whether they have considered the consequences of building a golf course on landslide-hazardous ground.

Mr. Anthony cannot avoid the fact that his subdivision and the Tiger Woods Golf Course have geologic conditions which predispose the development site to landslide events. In addition to the North Carolina Geological Survey Buncombe County landslide hazard maps, the U.S. Army Corps of Engineers issued a Public Notice on July 3, 2008 identifying the predominant soils found throughout The Cliffs at High Carolina subdivision. Western North Carolina Soil Surveys state that these soil compositions are highly erodible and are not suitable for residential development.

So the question is, does Mr. Anthony know what impact the golf course and its irrigation system might have on the mountain’s defined unstable base?

Mr. Anthony may not know the answer but geologists do.

Golf course construction alters the landscape. These expansively remodeled sites are cleared of native vegetation and are replaced with turf grass which requires irrigation. When golf courses are built in stable environments their location and maintenance requirements are not an issue, but when they are placed in geologically hazardous locations they are a matter of concern as demonstrated in the following histories.

Landslides Linked to Golf Course Construction and Irrigation

View of Ocean Trails
Golf Course Landslide—
Ninyo & Moore

Ocean Trails Golf Course Landslide—Rancho Palos Verdes, CA— 1999 (Trump National Golf Club)

Ninyo & Moore, a geotechnical and environment sciences firm, was hired to provide a forensic evaluation for the Ocean Trails Golf Course Landslide. A summary of its findings:

On June 2, 1999, an approximately 16-acre ancient landslide on the coastal bluff was reactivated, sliding approximately 50 feet toward the ocean. The ancient landslide destroyed much of the 18th fairway and green along with adjacent improvements, including an active County sewer line. The geologic setting included gently to moderately tilted beds of the Monterey Formation. The Monterey Formation at this locality included interbedded sequences of fine silty sandstone, siltstones, shales, dolomitic shales, siliceous zones, and bentonitic ash beds. The basal rupture surface was formed along a relatively continuous bentonite layer at a depth of approximately 90 feet. The geologic evaluation included detailed geologic mapping, 26 large-diameter borings, two rotary wash continuous core borings, 12 inclinometers, and the excavation and evaluation of buried sewer lines and artificial lakes. The analysis included preparation of multiple geologic cross sections, slope stability analysis, and evaluation of potential reactivation causes including seismic activity, precipitation, wave erosion, irrigation, construction activities, lake leakage, and sewer line leakage.

Donald Trump purchased the bankrupt Ocean Trails Golf Course in 2002 and he has spent $55 million to restore and stabilize the property.

In addition to the presently contained landslide located underneath the Trump National Golf Club Course, three others are located on the peninsula according to the Rancho Palos Verdes Chamber of Commerce. The largest, the Portuguese Bend landslide, was reactivated in 1956 and moves about a foot a year, depending on rainfall. This underground landslide tract covers 260 acres and has an average depth of 135 feet. Geologists attribute the onset of movement to irrigation, installation of pools and septic tanks that increased ground water levels.

South Golf Course Landslide—Colorado Springs, C0— 1993

Engineers investigating the site determined that irrigation was the cause of the reactivation of the ancient landslide underneath the South Golf Course. Their findings:

The construction of the golf course modified the site hydrology by adding irrigation water inflows and by changing the vegetation from native grass and scrub oak to turf grass over 55 percent of the total area. An analysis of the irrigation and precipitation rates and the turf grass water consumption rates showed a relatively high infiltration rate in the turf grass areas compared to the unirrigated native areas.

Proposals for Slowing the Landslide:

(1) ground water dewatering systems, (2) surface water control systems, (3) collection of flow from horizontal drains, and (4) control of irrigation.

Reference: “CASE HISTORY OF A REACTIVATION OF A LANDSLIDE DUE T0 IRRIGATION ON UNSATURATED SOIL” — Kuo-Chieh Chao 1, Daniel D. Overton 1 & John D. Nelson 1,2
1) Tetra Tech, Inc., USA
2) Colorado State University, USA

Arcadia Bluffs Golf Club Landslide—Manistee, Michigan— 1998

Massive landslides damaged this golf course during a September storm event. Improperly designed drainage inlets were the cause.

Reference: “Arcadia Bluffs sage continues”— Andrew Overbeck Golf Course News—November 2001.

Perfect Timing for The Cliffs at High Carolina Sales Premiere

2009-12-10T18:55:00.001-08:00

Smog covered downtown Asheville on July 21, 2008. A Code Orange air quality alert was issued for most of Western North Carolina, especially mountain elevations. Photo —Asheville Citizen-Times.

Tiger Woods Golf Course—The Cliffs at High Carolina

As planned the autumn day provided flawless weather conditions for the launch of the Tiger Woods Golf Course residential community called The Cliffs at High Carolina. The Sunday Asheville Citizen-Times edition provided coverage of the sales event with two front page articles: “Woods cachet could be key to Cliffs’ sales” and “Woods unveils ambitious Cliffs course design."

Jim Anthony, President and CEO of The Cliffs Communities, Inc. and Tiger Woods co-hosted the November 8, 2008 High Carolina press party.

During the news conference Mr. Anthony told the audience that he had sold about 50 High Carolina golf course lots for more than $40 million.

Mr. Woods promoted the scenery by saying “This property is phenomenal, breathtaking, with 50-mile views. I grew up in (Southern California) with nothing but smog; we couldn’t see anything,” Mr. Anthony told reporters that Mr. Woods visits the property often.

Western North Carolina Smog Alerts

It is obvious from Messrs. Anthony and Woods’s comments that they have not visited Asheville during warm-weather months when smog seriously impairs visibility and lung function. The situation is so critical that on January 30, 2006 Attorney General Roy Cooper filed a lawsuit on behalf of the citizens of North Carolina against the Tennessee Valley Authority. In his press release Mr. Cooper stated that “TVA’s pollution is making North Carolinians sick, damaging our economy and harming our environment.”

On August 4, 2008 the Asheville Citizen-Times reported that the North Carolina Department of Environment and Natural Resources had issued an "Air quality unhealthy at high elevation alert" for mountain areas near Asheville.

Pollution warnings are common during summer months when elevated temperatures trap the ozone-laden air over the mountain region. Air quality in Western North Carolina is not expected to improve in the near future.

If The Cliffs at High Carolina sales premiere had been held on July 21, 2008 the expensive sought-after mountain views would have been invisible.

Chilliwack Landslide Moves Homes

2009-11-17T14:09:00.000-08:00

Most people think of landslides as violent mountain slope events but there is another type that threatens property owners. Geologists call them "big slow movers." These underground land masses can move of their own accord but generally they are prodded into action by changes in the landscape. Case in point: Panorama Heights/ Marble Hill “Big Slow Mover”—City of Chilliwack, British Columbia.

The media reports that 42 existing subdivision homes are threatened by the creeping 4,000 year-old Panorama Heights landslide—3 others were so damaged that they have been razed.

Here is a description of the landslide damage caused to one Panorama Heights home:

Eleven years ago, Dixon had a few cracks to worry about, but now, his house is like something you’d see in an animated Tim Burton movie. The exterior brick walls are pulling and crumbling away from the foundation, the windows are crooked, the carport cement has pulled away from the house, and the steps up to the front door have inched down so far, Dixon had to put in two more steps just to get into his house. Some of his doors fly open at a whim, while others won’t even close half way, the floors are all on a slope, forcing him to walk uphill or downhill, but never on level.

Gary Dixon's Panorama Heights home—
Photos and news report compliments Chilliwack Progress

Restitution

On October 10, 2009 the Vancouver Sun reported that the City of Chilliwack has offered Panorama Heights homeowners an $18 million purchase plan ( 80% of current assessed value) as compensation for loss of equity and property damage. The offer is extended to Panorama Drive, Ridgeview Street, Ridgeview Place and Allison Place property owners.

Looking Back

Twelve years ago, six Panorama Heights landslide-affected property owners sued the city. In 2006 five plaintiffs agreed to confidentially settle the matter. By searching land title transfers the Chilliwack Progress determined that the city paid $951, 500 for three of the homes at issue in the lawsuit.

Landslide concerns prompted the Chilliwack City Council to pass a 6-month Eastern Hillsides no-build moratorium on September 13, 2004. Reassured by engineering reports, council members rescinded the suspension on October 1, 2004. The moratorium remained in place for the Panorama Heights subdivision.

Mayor Sharon Gaetz has stated that she does not believe the planning department is at fault for granting the Panorama Heights subdivision permit.

Geology Lesson

Garry Taylor, a Chilliwack high school geology teacher, disagrees:

A resource I have used in my classroom to teach my students is a Geological Survey Map of Canada (printed in 1977) that I obtained from the federal government, which is also available to the pubic.

My students are taught that the present site of Panorama Heights sits squarely on this 4,000-year slide site. With this type of information readily available, they find it confusing as to why this development was given the green light to go ahead. Perhaps somebody with the former geo-tech company who did the original stability assessment, or the party who signed off this development at city hall, missed a very important lesson.

City of Chilliwack Hazardous-Land Real Estate Disclosure Statement

Panorama Heights property owners have been ill-served by the city's past actions. If the city elects to continue permitting hazardous-land subdivisions they have an obligation to inform future property owners of the financial risks. Real Estate transactions should include the following fair warning disclosure statement:

Please be advised that you are buying real estate in a critical landslide area.

The decision to buy landslide-hazardous real estate should be well-considered. Flood and fire insurance is available to property owners. Landslide insurance protection is not obtainable. The inability to insure this special-risk real estate will have an adverse effect on property values and mortgage refinancing. Please seek legal advice concerning landslide liability.

Landslides are multi-province concerns but, "In fact, in British Columbia the loss of life and damage to property caused by landslides is greater than losses caused by other natural hazards such as earthquakes and flooding." Findings: Ministry of Energy, Mines and Petroleum Resources

Spanish Peaks Hazardous-Land Report Prompts Two Lawsuits

2009-11-15T10:56:00.000-08:00

The Spanish Peaks lawsuits provide invaluable information.

Terrence O’Reilly: Plaintiff

The individual who brought suit, a former employee and property owner of The Club at Spanish Peaks, alleged that the developer had withheld unfavorable geology reports. The case was filed in Gallatin County, Montana in 2007 and confidentially settled in 2009.

New West Bozeman investigative reporters, Elizabeth Diehl and Megan McLean, offer a look at the documents submitted in the O’Reilly Complaint in their August 10, 2009 article “Spanish Peaks Lawsuit Alleges Deception on Landslide Risk.”

The Club at Spanish Peaks Hazardous-Land Report

Court records show that as part of Spanish Peaks approval process subdivision home sites were evaluated for hazardous-land conditions. In March 2000 NTL Engineering and Geoscience, Inc. provided the developer, James Dolan, with a “geotechnical reconnaissance report.“ Each lot was color-coded to reflect the risk of landslides and unstable soils. Spanish Peaks lot sales were initiated in 2004.

Behind the Scenes

Emails procured during the discovery process reveal the company's unwillingness to share the NTL report with prospective clients.

In a February 2004 email exchange between company executives the question is posed: “Soil tests and stability seem to be coming up pretty regularly with potential buyers. Any suggestions on how to handle this based on your past experiences?”

The reply: “With regard to geotechnical stability, this seems to be one of those areas where we should baffle them with BS rather than provide the actual report.”

Sales continued for the next two years with the developer remaining silent about the subdivision’s hazardous-land report. In another email the NTL report is discussed again:

Any interim report would open the lodge and settlement to scrutiny. The more information in the public eye today may only cause additional and unnecessary concern in the public that will leak its way into the real estate community and the approval process.”

Harbaugh Lawsuit

The evidential NTL report is the issue in another lawsuit filed against the Spanish Peaks developer. According to allegations in the August 2009 Gallatin County District Court Complaint, the developer failed to disclose that lots were sold on an “active landslide.”

If there is a moving landslide inside the subdivision, property owners face incalculable costs: absence of landslide insurance, repair of roads, loss of equity and inability to refinance.

Interstate Land Sales Full Disclosure Act

Although not referenced in the New West Bozeman article, Spanish Peaks property owners have protection under federal law. The Interstate Land Sales Full Disclosure Act, administered through the U. S. Department of Housing and Urban Development, seeks to protect purchasers from fraudulent actions by requiring developers to disclose all material facts affecting the value of land in their subdivisions. Relevant information is conveyed to purchasers via a legal document called the Property Report.

Hazardous-land assessments are material to purchasers and the failure to disclose them would be a violation of the Act.

Strike Two—Ocoee Gorge Rockslide Closes U. S. Highway 64

2009-11-11T18:59:00.001-08:00

For those who missed the national news, here is the real-time video of the November 10, 2009 Tennessee Ocoee Gorge rockslide.

Since late October, rockslides have closed two primary connectors between western North Carolina and eastern Tennessee. The Pigeon River Gorge I-40 rockslide severed the route between Asheville, North Carolina and Knoxville, Tennessee. The Ocoee Gorge U. S. 64 rockslide blocks access into Cherokee, North Carolina.

Sections of the Blue Ridge Parkway in North Carolina have also been affected by unstable slope conditions.

This season's rockslides have so far only hit public roads. Because memories fade, the news media has not linked current events to those of September 2004. Five years ago rain set off landslides in 15 western North Carolina counties which resulted in two federal disaster declarations. Those wide-spread slope failures claimed lives and cost homeowners millions of dollars in property losses. Caveat: Homeowners nationwide have to self-insure for landslide damage: policies do not cover this peril.

For the usual profit-driven reasons, North Carolina legislators are adverse to publicizing the fact that steep slope home sites and subdivision private streets are threatened by the same conditions that brought down two mountainsides. By intent, conveyance documents such as sales contracts and Subdivision Street Disclosure Statements fail to reveal the high costs of western North Carolina mountain real estate.

I-40 Pigeon River Gorge Rockslides: Past, Present and Forecast

2009-11-11T06:56:00.000-08:00

As reported by Vicki Hyatt, editor of The Mountaineer, the Pigeon River Gorge section of I-40 has and will continue to be a rockslide-hazardous corridor. The following is a reprint of her November 3, 2009 article “I-40: A troubled history.”

Rock slides that halt travel between Haywood and Newport, Tenn., have plagued Interstate 40 since it first opened in October 1968. Just four months after the dedication of the route, known early on as the Pigeon River Road, occurred in February 1969, when a slide blocked traffic on all four lanes of the route.

The area near the access road to Waterville Dam was grouted, rock was drilled, dynamited and then filled with liquid cement to halt the earth movement. It was the first of many actions that would be taken through the years to stabilize an area engineers had long warned would pose problems in the future.

In 1974, the pavement again started showing signs of movement, according to an article in The Mountaineer, and it wasn’t unusual for smaller slides to cause periodic delays.

The interstate was closed for two weeks in March 1977 after about 40,000 tons of rock slid onto I-40 about two miles inside the Tennessee state line. At the time, a state geologist noted the area was the site of a major fault with mostly coarse rock which could easily fracture and slide. News reports said geologists were striving to determine if there was one big slide or two separate ones in the area.

In May 1978, a major slide that led to a wreck in which seven people were inured closed the eastbound lanes of I-40 near the Fines Creek exit. The $1 million repair job included work on the cut to prevent future slides and halt slippage of a rock bank near the exit. Two-way traffic was maintained in the westbound lanes during the work, and three people were killed in a head-on collision when slide repairs were underway.

A February 1981 rock slide, about half a mile east of the Tennessee line, covered both the east and westbound lanes of I-40 with boulders, dirt and trees.

The frequent slides made it apparent a longer-term solution was called for, and the state transportation department announced plans to reconstruct four miles of interstate through Haywood County near the Tennessee line to reduce the danger of rock slides. The first phase of the project would shift two lanes of traffic away from the mountainside and toward the Pigeon River, a May 20, 1981 article in The Mountaineer stated. The second phase would remove loose rocks from slopes and take other measures to install wire mesh to catch the rocks before they hit the highway.

Since the roadway opened, two people had been killed as a direct result of falling rocks and another three died in a collision at a landslide detour near the Fines Creek exit, the article noted. At the time, the state’s assistant transportation director said experts believed the possibility of rock slides was of such a magnitude that it could close the road.

In the fall of 1981, a N.C. Department of Transportation report projected $10.3 million — three times the $1.5 million per mile cost to build the roadway — would be needed to reduce the danger of rock slides on I-40 near the Tennessee line. This amount would be enough to correct problems at five potential slide areas, a news article reported. Even with the stabilization work, state officials noted there was no way to stabilize cut slopes entirely.

Before a contract was finalized for the work, a March 1982 slide buried the westbound lanes near the Tennessee line. The project continued into 1984. It included shifting three miles away from the rock slopes and toward the Pigeon River, as well as bolting rocks too large to remove in the five problem areas identified as most susceptible to slides. The project included a chain-link fence to prevent smaller boulders from falling onto the driving lanes.

In March 1985, a massive slide blocked both tunnel entrances. The repair cost about $6 million and nearly a year to clean up.

In July 1997, a massive slide again closed the roadway, taking six months and $2.5 million to clean up.

Road a political victory

Haywood County leaders won a hard-fought battle more than 60 years ago when the county became the last in the state to have a 1921 road law implemented. The law promised a paved roadway linking every county seat and linking every county adjoining another state to that state’s county seat. The long-identified route between Haywood and Newport, Tenn. was a water-level route following the Pigeon River. The route received state funding and was begun five years before it was necessary to designate an interstate route between Knoxville, Asheville and Spartanburg, S.C. The interstate designation, which held the promise of vastly increased commerce — and economic prosperity — was coveted by both Haywood leaders and those in Madison and Buncombe counties, which pushed for a four-lane highway along the French Broad River.

Haywood leaders were able to garner support from the Tennessee Highway Commission, as well as counties to the west. That support, along with free right-of-way along the Pigeon route and a head start on construction, won the prize.

See more pictures of rock slides throughout I-40’s history at www.themountaineer.com.

I-40 Rockslide Reveals Western North Carolina Hazardous-Land Conditions

2009-11-03T03:41:00.000-08:00

Western North Carolina: I-40 Pigeon River Gorge Rockslides— July 1997 /October 2009 —NCGS & Asheville Citizen-Times

The Pigeon River Gorge I-40 rock slide has shut down a major corridor from Asheville, North Carolina to Knoxville, Tennessee. This mountain side collapse preceded a similar I-40 rock slide in 1997. Professionals estimate remediation will take months and cost millions.

A major landslide also threatens the Blue Ridge Parkway as noted in the following October 16, 2009 Blue Ridge Parkway Update:

With growing fears of a major landslide onto the Blue Ridge Parkway, officials have indefinitely closed a 1.5-mile section of the Parkway near Mt. Pisgah - south of Asheville. Barricades are at the Bad Fork Valley Overlook at milepost 399.7 and the Wash Creek Valley Overlook at milepost 401.1. The closure is a result of widening 300-foot-long fissures on a slope 200 feet above the road. If the 50-foot-deep cracks cause a landslide, an estimated 1,000 tons of rock and soil could end up on the Parkway. The cracks are 5-7 feet wide and a bulge has developed under the down-slope roadbed. Federal Highway Administration geotechnical engineers determined that an inordinate amount of rainfall, the likelihood of additional precipitation and the tenuous condition of the slope create a high risk of failure. The slope failed in 2002 and has been closely monitored since being repaired.

In April 2009 a landslide damaged a section of the Parkway near Boone (milepost 270) necessitating closure of a two mile stretch. Officials hope to have repairs completed in December 2009.

Blue Ridge Parkway Landslide/Rockslide 2004-2006 —NCGS

Western North Carolina Mountain Real Estate

Those reading the Interstate and Parkway landslide articles would not know that these destructive forces target all Western North Carolina mountain real estate.

According to the Federal Emergency Management Agency all steep slope building sites in the 25-county region known as Western North Carolina are at considerable risk of landslides. ( Contrary to local planning boards’ definition, steep slope is defined as land above a 15% grade.)

In an effort to control and mitigate hazardous-land development practices, FEMA is requiring disaster-susceptible counties to provide risk/loss assessments. For example all real property in Buncombe County, North Carolina has been evaluated for probable disaster events. The North Carolina Geological Survey's Buncombe County landslide hazards maps were published in August 2009 but the FEMA address-specific hazardous-land data maps (April 2009) have not been released to the public.

Presently there are no federal rules governing hazardous-land disclosure so states are left to their own discretion. In North Carolina, real estate documents such as sales contracts and Subdivision Street Disclosure Statements fail to provide fair warning that mountain home sites and roads are landslide-hazardous.

Since 2003 Western North Carolina landslides have caused six deaths and millions of dollars in real property damage.

Before and after photographs- Donin Landslide
Haywood County, NC—2009 —Asheville Citizen-Times

Horseshoe Cove Subdivision Landslides- Haywood County, NC
2003 —Pam Williams, Property Owner

Mountain Air Landslides-Yancey County, NC 2003-2004

Airport Landslides -Jackson County, NC
1977-2005 —NCGS

White Laurel Subdivision
Landslide -Watauga County, NC
2004—NCGS

Jonas Ridge Debris Flow
Burke County, NC 2004—NCGS

Jones's Landslide Fatality
Haywood County 2003—NCGS

Peeks Creek Landslide
5 Fatalities/15 homes destroyed
Macon County, NC 2004— NCGS

Moody Landslide
Haywood County, NC 2009
Asheville Citizen-Times

Starnes Cove Landslide
Buncombe County, NC 2004 —NCGS

Landslide-hazardous real estate is an ill-advised investment because property owners have no access to insurance protection. Insurers have weighed the risk and they will not cover landslide losses. As a result, earth movement damage is excluded in all homeowners policies nationwide. Specialty landslide insurance is not available in Western North Carolina.

The question then arises why would the mortgage industry provide financing for homes that have no critical insurance protection? The answer is securitization. Hazardous-land mortgages, like subprime loans, were bundled and sold to other investors.

Hazardous-Land Subdivisions

In addition to personal loss, Western North Carolina steep slope property owners are faced with the responsibility for maintaining their private subdivision roads.

At time of lot sales, developers require their clients to sign a document titled the Subdivision Street Disclosure Statement. By signing this standardized conveyance document, property owners agree that they own and are responsible for the subdivision’s private roads.

For information concerning property owners' legal obligations please visit the North Carolina Real Estate Commission Web site

The Cliffs at High Carolina Tiger Woods Golf Course and Landslides

2009-10-26T10:43:00.000-07:00

—The Buncombe County Soil Hazards Map has not been released—

Location of the Cliffs at High Carolina
Subdivision on Buncombe County
Hazardous-Land Map— NCGS.

Slope Movements and Slope
Movement Deposits Map—NCGS

Stability Index Map—NCGS

Map of Known and Potential Debris g
Flow Pathways—NCGS

No one has asked Jim Anthony, developer of The Cliffs at High Carolina, or Tiger Woods his partner whether they have considered the consequences of building a golf course on landslide-hazardous ground.

Mr. Anthony cannot avoid the fact that his subdivision has geologic conditions which predispose the development site to landslide events. In addition to the North Carolina Geological Survey Buncombe County landslide hazard maps, the US Army Corps of Engineers issued a Public Notice on July 3, 2008 identifying the predominant soils found throughout The Cliffs at High Carolina subdivision. Western North Carolina Soil Surveys state that these soil compositions are highly erodible and are not suitable for residential development.

So the question is, does Mr. Anthony know what impact the golf course and its irrigation system might have on the mountain’s defined unstable base?

Mr. Anthony may not know the answer but geologists do.

Golf course construction alters the landscape. These expansively remodeled sites are cleared of native vegetation and are replaced with turf grass which requires irrigation. When golf courses are built in stable environments their location and maintenance requirements are not an issue, but when they are placed in geologically hazardous locations they are a matter of concern as demonstrated in the following histories.

Landslides Linked to Golf Course Construction and Irrigation

View of Ocean Trails
Golf Course Landslide—
Ninyo & Moore

Ocean Trails Golf Course Landslide—Rancho Palos Verdes, CA— 1999 (Trump National Golf Club)

Ninyo & Moore, a geotechnical and environment sciences firm, was hired to provide a forensic evaluation for the Ocean Trails Golf Course Landslide. A summary of its findings:

On June 2, 1999, an approximately 16-acre ancient landslide on the coastal bluff was reactivated, sliding approximately 50 feet toward the ocean. The ancient landslide destroyed much of the 18th fairway and green along with adjacent improvements, including an active County sewer line. The geologic setting included gently to moderately tilted beds of the Monterey Formation. The Monterey Formation at this locality included interbedded sequences of fine silty sandstone, siltstones, shales, dolomitic shales, siliceous zones, and bentonitic ash beds. The basal rupture surface was formed along a relatively continuous bentonite layer at a depth of approximately 90 feet. The geologic evaluation included detailed geologic mapping, 26 large-diameter borings, two rotary wash continuous core borings, 12 inclinometers, and the excavation and evaluation of buried sewer lines and artificial lakes. The analysis included preparation of multiple geologic cross sections, slope stability analysis, and evaluation of potential reactivation causes including seismic activity, precipitation, wave erosion, irrigation, construction activities, lake leakage, and sewer line leakage.

The construction of the golf course modified the site hydrology by adding irrigation water inflows and by changing the vegetation from native grass and scrub oak to turf grass over 55 percent of the total area. An analysis of the irrigation and precipitation rates and the turf grass water consumption rates showed a relatively high infiltration rate in the turf grass areas compared to the unirrigated native areas.

Proposals for Slowing the Landslide:

(1) ground water dewatering systems, (2) surface water control systems, (3) collection of flow from horizontal drains, and (4) control of irrigation.

Western North Carolina Landslides—Waiting in the Wings

2009-10-23T05:44:00.001-07:00

Western North Carolina's steep slope topography and unstable soil composition are similar to that of the state of Washington. Landslides come with the terrain.

Washington State Road 410—Naches Landslide— October 2009

On October 11, 2009 a massive landslide buried a quarter-mile section of Washington State Road 410. Geologists are calling the Naches slope failure a deep rotational landslide: the immediate cause— mining or long-ago rain— is yet to be determined. Photos of the Naches landslide are compliments of The Seattle Times and the Washington State Department of Transportation.

Western North Carolina/I-40 Pigeon River Gorge Rock Slide— July 1997—NCGS

Blue Ridge Parkway Rock Slide— 2006—NCGS

Western North Carolina Real Estate—Landslide Advisory

All Western North Carolina mountain real estate is classified
landslide-hazardous. This designation includes privately-owned roads in subdivisions and planned communities. For an example of the costs related to repair and stabilization of damaged roads please see Horseshoe Cove Landslide Report.

The photographs below offer a small sampling of the harm caused by Western North Carolina landslides.

Airport Landslides -Jackson County, NC
1977-2005 —NCGS

White Laurel Subdivision
Landslide -Watauga County, NC
2004—NCGS

Jones Ridge Debris Flow
Burke County, NC 2004—NCGS

Jones's Landslide Fatality
Haywood County 2003—NCGS

Peeks Creek Landslide
5 Fatalities/15 homes destroyed
Macon County, NC 2004— NCGS

Moody Landslide
Haywood County, NC 2009
Asheville Citizen-Times

Starnes Cove Landslide
Buncombe County, NC 2004 —NCGS

Federal Emergency Management Agency—Western North Carolina Hazardous-Land Maps

The Federal Emergency Management Agency has long established that homeowners in all mountain counties, whatever the state, have been carelessly exposed to landslide hazards. In North Carolina the risks are exacerbated by the absence of regulation and hazardous-land real estate disclosure.

In an effort to spotlight planning board practices, FEMA is requiring
disaster-prone counties to identify by address all geologically-hazardous public and private property. Highly-detailed real estate hazard maps were completed for Buncombe County in April 2009 but this information has not been released to the public.

The parties involved in Western North Carolina mountain development and sales influence legislative actions, so critical land conditions have not been disclosed. Real estate documents such as sales contracts and Subdivision Street Disclosure Statements are compromised by the concealment of hazardous-land conditions and the financial risks involved.

Prompted by a near-fatal landslide event the Asheville Citizen-Times initiated its "Dangerous Ground" public-awareness campaign on March 1, 2009. By happenstance, this investigative report was followed by The New York Times article, "Increased frequency of landslides remains largely ignored despite risks."

Since there are no federal regulations governing hazardous-land development the public should consider these pertinent facts concerning ownership of landslide-affected real estate: insurance protection is not obtainable and homeowners associations must bear the costs of maintaining highly unstable roads.

The Cliffs at High Carolina— Road Schedule October 21, 2008

2009-10-10T15:25:00.000-07:00

The Cliffs at High Carolina, LLC sales practices are governed by federal law under the Interstate Land Sales Full Disclosure Act (ILSFDA). All purchasers of land in ILSDFA-defined subdivisions must receive a highly formatted full disclosure document titled The Property Report. The following two pages were copied from The Cliffs at High Carolina Property Report. This is the ROADS section of the Report.

The Cliffs at High Carolina: Developer Liability Under Federal Law

2009-10-10T11:37:00.000-07:00

—HAZARDS— The lots [99] covered by this Property Report are located in Buncombe County, which is included in an area geologists refer to as the Blue Ridge Geologic Province of North Carolina. As with all developments located in this Province, the terrain contains some moderate to steep slopes and may contain localized areas subject to the natural hazard of landslides.

Furthermore, the developer engaged S&ME, one of the southeast’s most respected engineering firms, to evaluate each of the lots in this Property Report for the possible presence of colluvial materials and found that the identified building area for each lot is suitable for a homesite. In its written evaluation to the developer dated August 15, 2008, S&ME reported that it had inspected each lot in this Property Report and observed that in some lots there existed some potentially unstable areas in steep portions thereof or at their outer boundaries, but well outside of the identified building area. Some lots were identified as having shallow draws or swales, well outside a building area, that could potentially have a presence of some colluvium.

Clarification: Buncombe County is a federally designated multi-hazard county. All real property has been evaluated by address for landslide, wild fire, and flood hazards. Buncombe County real estate hazard maps are available in the Buncombe County planning department.

— ROADS— The roads within the subdivision are currently being cleared and graded to permit access by conventional automobile. After completion, the interior roads will be conveyed to and owned by the property owners’ association. We are responsible for the maintenance of the interior roads until they are conveyed.

Clarification: Roads are conveyed at the time property owners sign the Subdivision Street Disclosure Statement. For additional information about this matter, please see the North Carolina Real Estate Commission’s question and answer Web site.

Developer Liability

It is not known why soil assessments and site recommendations for High Carolina roads were omitted in the Property Report. But this issue is moot under the Interstate Land Sales Full Disclosure Act:

A plaintiff need not prove reliance or the defendant's fraudulent intent in order to recover under ILSFDA.137 Instead, the purchaser must only establish a material omission or misrepresentation, however innocent or unintentional, by the developer.138

Reference: “Litigation Involving the Developer, Homeowners’ Associations, and Lenders”—E Richard Kennedy—April 2004

The Cliffs at High Carolina— S&ME Engineering Report

2009-10-09T08:32:00.000-07:00

The Cliffs at High Carolina Roads Threatened by Hazardous Soils

2009-10-06T14:19:00.000-07:00

The US Army Corps of Engineers advised in a July 3, 2008 Public Notice that there are 22 different soil types on The Cliffs at High Carolina steep slope development site. Dominant soil types are Porters-Unaka complex (841), Toecane-Tusquitee complex (181) and the Edneyville-Chestnut complex (803).

Soil survey findings:

Porters-Unaka complex— 8-15% Slopes
Local roads and streets: Poorly suited
Porters-Unaka complex—15-30% Slopes
Local roads and streets: Poorly suited
Porters-Unaka complex— 30-50% Slopes
Local roads and streets: Poorly suited
Porters-Unaka complex—50-95% Slopes
Local roads and streets: Unsuited

Toecane-Tusquitee complex— 8-15% Slopes
Local roads and streets: Poorly suited
Toecane-Tusquitee complex&mdash 15-30% Slopes
Local roads and streets: Poorly suited
Toecane-Tusquitee complex— 30-50% Slopes
Local roads and streets: Poorly suited

Edneyville-Chestnut complex— 15-30% Slopes
Local roads and streets: Poorly suited
Edneyville-Chestnut complex— 30-50% Slopes
Local roads and streets: Poorly suited
Edneyville-Chestnut complex— 50-95% Slopes
Local roads and streets: Unsuited

Even with the expert engineering promised by The Cliffs Communities, Inc., roads built on these soils are subject to failure. These undisclosed soil assessments should be a concern to the members of The Cliffs at High Carolina Homeowners' Association, Inc. as they will be assuming responsibility for all High Carolina private roads.

For an example of property owners' costs to repair and remediate landslide damaged private roads please see the Horseshoe Cove Landslide Report.

Queens Gap Roads Threatened by Hazardous-Land Conditions

2009-10-06T03:38:00.000-07:00

Queens Gap Subdivision—Rutherford County, North Carolina

Much of the Queens Gap subdivision development site is steep slope and as such should be classified a hazardous-land subdivision. Although not acknowledged by the Rutherford County planning board, the accepted definition for steep slope is land above a 15% grade.

The US Army Corp of Engineers has identified twenty eight different soil types on the Queens Gap construction site. The three major soils groupings are Evard-Cowee complex, Hayesville-Evard complex and the Ashe-Cleveland-Rock outcrop complex. As recorded in the 1997 Rutherford County Soil Survey: These soils on or above a 15% slope factor are “not suitable” or “poorly suited” for development—”Some are too unstable to be used as a foundation for buildings or roads.”

Both the county and the developer are aware of these geologic impediments and they know that Queens Gap roads will likely be damaged by slope failures.

Even roads built with the best engineering techniques are subject to stress and collapse. This point can best be illustrated by the recurring slope failures on the Blue Ridge Parkway.

Blue Ridge Parkway Landslides 2003-2009

— Boulders on the Blue Ridge Parkway from the April 24, 2003, rockslide near Potato Field Gap, northeast of Asheville. The 165-ton boulder is being broken down to fit into a dump truck—North Carolina Geological Survey

—Sections of the Blue Ridge Parkway are closed after rains from Hurricane Frances in September 2004 caused the roadway to give away in four places between Mount Mitchell and Linville Falls. The area in this image is near Milepost 348. Costs to repair road damage is estimated to be $11 million.—North Carolina Geological Survey

—This slide occurred along the Blue Ridge Parkway in 2006 totaling a passing vehicle and injuring the passengers—North Carolina Geological Survey

Photos are not available for the spring 2009 BRP landslide near Boone milepost 270. The landslide-road remediation is expected to be completed in December 2009.

Queen Gap Roads

Plans to develop the Queens Gap subdivision were approved in 2006. Roads in this 3,350-acre subdivision have been and remain an issue. The current owner, Keith Vinson, is under a new county deadline to have Phase 1 roads finished by June 2010. If Mr. Vinson and his financial backers miss the due date the county will call the bonds insuring compliance and finish the work.

Transfer of Hazardous-Land Subdivision to Property Owners

Each time a Queens Gap lot is sold, Mr. Vinson requires his client to sign a Subdivision Street Disclosure Statement. This conveyance document transfers ownership of roads and common areas from the developer to property owners in the incorporated homeowners’ association. The Subdivision Street Disclosure Statement shown below is the required conveyance document for all North Carolina private road subdivisions and planned communities.

Sample Subdivision Street Disclosure Statement

Pursuant to N. C. G. S. Section 136-102.6 _______, as the Declarant of _______,
issues this statement indicating that all of the roads within_______ are private. It is the obligation of _______ Homeowners' Association, Inc. (hereafter "Association") to maintain and keep in good repairs all of the private roads in _______Subdivision. It is mandatory for all property owners in _______ to be a member of the Association and the property owners, with the exception of the Declarant, have an obligation to pay assessments to maintain the private roads. The Declarant specifically states that the streets have not been constructed in such a manner to allow inclusion on the State highway system for maintenance.

The Subdivision Street Disclosure Statement may be an acceptable conveyance document for private roads built on non-hazardous soils but its applicability for steep slope subdivisions is disputable.

Those reviewing the standardized form should notice that there is no disclosure of the financial commitment required on the part of property owners for the maintenance of roads built on landslide-hazardous soils. For an example of the costs of repairing and stabilizing roads built on colluvial soils please see Horseshoe Cove Landslide Report.

The question of whether the Subdivision Street Disclosure Statement is a valid conveyance document for private street hazardous-land subdivisions has not been adjudicated. Queens Gap property owners who have concerns about this issue should query the North Carolina Real Estate Commission and seek legal advice.

Buncombe County Real Estate — Hazardous-Land Subdivisions

2009-10-04T07:39:00.000-07:00

October 4, 2009

David Gantt, Chairman
Board of Commissioners
205 College Street Suite 200
Asheville, North Carolina 28801

Dear Mr. Gantt:

Commissioners and members of the planning board have long been aware of Buncombe County’s hazardous-land designation. The first real estate landslide advisory came to the county from the North Carolina Department of Emergency Management in 1998.

As the result of a recent Federal Emergency Management Agency directive all real property in Buncombe County has been evaluated and assessed by address for expected disasters. Of specific concern are subdivisions located above a 15% grade. The reason: soils above this threshold are typically “not suitable” or “poorly suitable” for development— “Some are too unstable to used as a foundation for buildings or roads.” References: Buncombe County Soil Survey/ North Carolina Geological Survey

The Asheville Citizen-Times reported on August 30, 2009 that approximately 29% of Buncombe County real estate is threatened by landslide-triggering soils. Dale Neal’s article, “Landslide hazards charted,” is part of the newspaper’s “Dangerous Ground” investigative series.

With the confirmation that the county has permitted hazardous-land development for more than a decade, Mr. Neal asked Buncombe County planner Jim Coman to explain these FEMA disaster maps for at-risk property owners. Mr. Coman’s advice:

Owners of existing homes in high hazard areas could call in engineers to shore up shifting foundations or take other preventive measures to protect their property.

Whether the county institutes responsible landslide hazard mitigation planning is yet to be determined. What has been established is the fact that most Buncombe County steep slope building sites above a 15% grade are undermined by highly unstable soils.

I would like to draw your attention to the Subdivision Street Disclosure Statement and the reason for this letter.

Sample Subdivision Street Disclosure Statement

Pursuant to N. C. G. S. Section 136-102.6 _______, as the Declarant of _______,
issues this statement indicating that all of the roads within_______ are private. It is the obligation of _______ Homeowners' Association, Inc. (hereafter "Association") to maintain and keep in good repairs all of the private roads in _______Subdivision. It is mandatory for all property owners in _______ to be a member of the Association and the property owners, with the exception of the Declarant, have an obligation to pay assessments to maintain the private roads. The Declarant specifically states that the streets have not been constructed in such a manner to allow inclusion on the State highway system for maintenance.

Although commonly used to establish property owner liability for private roads this standardized conveyance statement was not intended as a disclosure document for roads in hazardous-land subdivisions. At this juncture county attorney Michael Frue should have determined that the disclosure statement, as written, is not valid: property owners cannot be legally forced to assume responsibility for risks not disclosed.

Mr. Frue can correct this error and protect property owners' interests by requiring the inclusion of a "Fair Warning" addendum on Buncombe County— steep slope— Subdivision Street Disclosure Statements. Mr. Frue is cognizant of the fact that property owners' liabilities linked to private road ownership in hazardous-land subdivisions are significant. Before assuming responsibility for developers' roads, property owners should be apprised of the following:

Please be advised this subdivision’s roads were built on likely unstable soils. Landslides and erosion are recognized chronic hazards above a 15% slope. Soil assessments for this subdivision can be found at the county Soil & Conservation Office. Buncombe County did not require geotechnical, hydrologic or soil studies for this subdivision. Should this subdivision’s roads be damaged by predictable natural occurrences, the members of the homeowners’ association will be liable for all costs.

There have been many parties involved in Buncombe County land development but the decision to grant a steep slope subdivision permit rests with the planning board. The Asheville Citizen-Times reported in a related "Dangerous Ground" article that the board has approved 413 subdivisions over the past six years. The number of hazardous-land subdivision permits granted since 1998 has not been tallied but is easily determinable.

Without disclosure of hazardous-land conditions on the Subdivision Street Disclosure Statement the planning board's practice of granting permits for steep slope private subdivision roads is questionable and deserves legal challenge.

Thank you for your interest in this matter.

Lynne Vogel
232 Wonderly Lane
Mars Hill, North Carolina 28754
wncsos.com

Southcliff Asheville— Hazardous-Land Disclosure Statement

2009-09-25T18:59:00.000-07:00

As part of its continuing “ Dangerous Ground” landslide investigative series, the Asheville Citizen Times reported on August 30, 2009 that approximately 29% of Buncombe County, North Carolina real estate is threatened by landslide-triggering soils.

—The Buncombe County Soil Hazards Map has not been released—

Slope Movements and Slope
Movement Deposits Map

Stability Index Map

Map of Known and Potential Debris
Flow Pathways

North Carolina Geological Survey Buncombe County landslide hazard maps. Computer technology now allows developers and Buncombe County planners to evaluate occupied and vacant residential parcels for probable landslide events.

It is not known whether the principals of the Carolina Group Partners, LLC., Brad Murr, Steve Vermillion, Garland Hughes, Eric Nichols and Jeff Mathis and developers of Southcliff have been informed that all Buncombe County real property has been evaluated for hazardous-land conditions. The Southcliff Web site does not reference the completed hazardous-land real estate maps.

Disaster Maps Reveal Buncombe County Real Estate Hazards

Federal and state emergency management agencies expect disastrous events such as landslides, wildfires and flooding to impact major residential areas in Buncombe County. These forecasts have prompted the Federal Emergency Management Agency (FEMA) to require real estate risk blue prints as part of the county’s hazard mitigation planning.

The Renaissance Computing Institute (RENCI) has designed computer software that is able to locate by address all naturally hazardous real property locations. Although new to Buncombe County, these real estate risk determinate programs are in place in other multi-hazard municipalities.

Emergency personnel along with county, city and town planners were briefed in March 2009 on the use of the Buncombe County Multi-Hazard Risk Tool and its ability to generate real estate hazard/risk maps. Hazardous-land risk identification tools were installed in Buncombe County computer systems in April 2009.

Examples of Hazardous-Land Data for Buncombe County, North Carolina

Starnes Cove Landslide—NCGS—September 2004

Landslide Hazard Map—Town of Woodfin—April 2009

Landslide reports show parcel count and value for
parcels in the unstable area and the upper threshold area.

Homes in Harm’s Way— Landslide Investigations

In March 2009 two newspapers reported on the dire consequences of hazardous-land real estate development. The New York Times and the Asheville Citizen-Times found that thousands of homeowners across the county will face significant uninsurable landslide property losses.

Wildfire Threats

Wildfire Hazard Map—Town of Montreat—April 2009

Wildfire Reports show parcel count and value for parcels
at high, medium high or greater, and medium or greater
risk levels. Data compiled by the Renaissance Computing
Institute.

City of Portland—Hazardous-Land Data

Looking to buy real estate in the city of Portland? Type in an address, such as 6438 SW Burlingame Place- Hillsdale, on the PortlandMaps Web site and you will find that this property is rated for landslides, earthquakes and wildfires.

Photo/Burlingame Landslide
—The Oregonian—October 8, 2008

PortlandMaps—6438 Burlingame
Place—landslide real estate map

Why was this address chosen? There are two reasons: the first is to illustrate the sophistication of the PortlandMaps system and the second is to demonstrate the accuracy of geological findings. On the morning of October 8, 2008, a portion of the Burlingame lot collapsed and a neighborhood was devastated. The cause of the Burlingame landslide: a broken water pipe.

Southcliff

The principals of the Carolina Group Partners, LLC, should be concerned that their permit for Southcliff was granted without benefit of hazardous-land mapping.

The question is, now that they are aware of the new Buncombe County real estate risk reports, how can they protect their clients from making unwise decisions? The answer is simple: It’s called a Natural Hazard Disclosure Statement. This pre-sale document has accompanied all California real property hazardous-land transactions since 1998.

The following is a modified version of the California disclosure statement and is an example of the type of risk information that should be included on the Southcliff Web site and as part Buncombe County real estate transactions, including the Subdivision Street Disclosure Statement.

Buncombe County Real Estate—Hazardous-Land Disclosure Statement

Please be advised that you are buying real estate in a federally designated disaster-prone county.

The Renaissance Computing Institute and the Buncombe County Emergency Operations Center have researched hazardous-land data and have determined that extensive real property in Buncombe County is threatened by three expected high-impact geological events: landslides, flooding and wildfires. Every parcel in the county has been assessed for hazard extent and potential market-value loss. Information is available though various planning offices throughout the county.

Buncombe County— Landslide-Hazardous Real Estate

The decision to buy landslide-hazardous real estate should be well-considered. Flood and fire insurance is available to property owners. Landslide insurance protection is not obtainable. The inability to insure this special-risk real estate will have an adverse effect on property values and mortgage refinancing. Please seek legal advice concerning landslide liability.

The maps and reports generated by the Buncombe County Multi-Hazard Risk Tool are “best guess” estimations of probable disastrous events. Flood and wildfire risks are known through published maps available to the insurance industry. Costs to insure these properties are predicated on the level of risk.

Landslide maps, likewise, show generalized questionable building locations. Landslide propensity is only determinable by on-the-ground site surveys. These investigations should be conducted by state licensed engineers.

The Cliffs at High Carolina—Property Owners' Liability

2009-09-24T15:31:00.001-07:00

Owners of existing homes in high hazard areas could call in engineers to shore up shifting foundations or take other preventive measures to protect their property.

As to landslide-hazardous developments already permitted such as the The Cliffs at High Carolina's 3,200 acre/1,300 lot subdivision Mr. Coman said:

they have a very good engineering staff, their clientele can afford the extra cost.

Mr. Coman presumes that High Carolina clients are aware of the financial risks of owning property in a hazardous-land private street subdivision.

The Cliffs at High Carolina— Disclosure of Hazardous-Land Conditions for Phase 1 Lots

The Cliffs at High Carolina Property Report—October 21, 2008— advised prospective buyers that the 99 lots covered in the document had been evaluated for landslide hazards by the Raleigh-based S&ME engineering firm. Colluvium deposits were discovered in and around the 99 lot tract but:

With respect to all lots, however, S&ME reported that it was its opinion that ‘residential structures can be suitably supported at the lots,’ and found that the identified building area for each lot was suitable as a home site.

The Cliffs at High Carolina—Subdivision Street Disclosure Statement Fails to Disclose Property Owners’ Liability for Maintenance of Roads Built on Hazardous Soils

Developers of private street subdivisions are required by North Carolina law to provide their clients with the following liability disclosure statement.

Sample Subdivision Street Disclosure Statement

Pursuant to N. C. G. S. Section 136-102.6 _______, as the Declarant of _______,
issues this statement indicating that all of the roads within_______ are private. It is the obligation of _______ Homeowners' Association, Inc. (hereafter "Association") to maintain and keep in good repairs all of the private roads in _______Subdivision. It is mandatory for all property owners in _______ to be a member of the Association and the property owners, with the exception of the Declarant, have an obligation to pay assessments to maintain the private roads. The Declarant specifically states that the streets have not been constructed in such a manner to allow inclusion on the State highway system for maintenance.

Occasionally developers will construct their private streets to meet State Highway standards but this does not relieve property owners from their obligations. The North Carolina Real Estate Commission offers the following advice regarding subdivision private roads:

However, if a developer becomes insolvent, is dissolved or dies, the owners alone will have to bear the cost unless a government agency takes control. Since there is no guarantee that any government agency will ever take control of the roads in a subdivision, owners are ultimately called upon to bear the cost of road maintenance in many situations.

Although the use of the standardized Subdivision Street Disclosure form as a conveyance document for hazardous-land subdivisions has yet to be adjudicated this does not relieve developers from providing their clients with all material information.

Jim Anthony, developer of The Cliffs at High Carolina, should be required to include a "Fair Warning" addendum on the Subdivision Street Disclosure Statements and in the federal Property Report. Property owners' liabilities linked to The Cliffs at High Carolina private road system are significant and Mr. Anthony should clearly state them. Before assuming responsibility for The Cliffs at High Carolina streets, property owners should be advised of the following:

This subdivision’s roads were built on likely unstable soils. Landslides and erosion are recognized chronic hazards above a 15% slope. Soil assessments for this subdivision can be found at the Buncombe County Soil & Conservation Office. Buncombe County did not require geotechnical, hydrologic or soil studies for this subdivision. Should this subdivision’s roads be damaged by predictable geologic events, the members of the homeowners’ association will be liable for all repairs.

For an example of the costs of assuming ownership of roads built on colluvial material, please see The Horseshoe Cove Landslide Report—Maggie Valley, North Carolina.

Western North Carolina Landslides May Be Triggered by Heavy Rainfall

2009-09-21T13:09:00.000-07:00

National Weather Service Bulletin— September 21, 2009

The recent heavy rainfall across the area from Macon County to Henderson County North Carolina has increased the risk of slope failures and landslides if more heavy rain develops across the southern mountains today. An additional two or three inches…if it falls in a of period of one or two hours…could be enough to trigger slope movements…especially where hillsides have been modified by human activity.

This National Weather Service notification serves as warning that Western North Carolina landslides and slope failures are expected events during periods of heavy rainfall.

In September 2004 Western North Carolina was in a state of emergency after landslides caused loss of life and wide-spread property damage.

Western North Carolina Real Estate—Hazardous-Land Subdivisions

2009-09-18T14:52:00.000-07:00

A little over three years ago a road-building crew caused a massive landslide on Eagles Nest Ridge in Haywood County. Luckily, no homes were in the path of what Jeff Schmerker called “A Whopper of a Slide.” The Mountaineer—September 12, 2006

Photo 1-View looking up the track of the August 31, 2006 embankment failure-debris flow from the development road near lot 107.
Photo 2-View looking downslope at the debris deposit and damage to lot 107
Photo 3-View of cracks in embankment extending northeast from the head scarp of the August 31, 2006 embankment failure-debris flow
Photos compliments of the North Carolina Geological Survey

The Cascades Subdivision Landslide

The Cascades Subdivision landslide occurred in a 700-acre development which was being built by Maurice Wilder of Clearwater, Florida.

After the landslide Dennis Franklin, contractor for the project, notified county officials and instituted temporary measures to stabilize the area. Marc Pruett, Haywood County’s erosion control supervisor, said that without notification he probably would not have known about the slide since no homes or residents were in danger.

Maggie Valley engineer Kevin Alford, who investigated the slide for a Cascades property owner, said that the failed section of the road bed occurred because:

The upper road was built out of shot material (from) where they had to blast the roadway in there. It got too heavy. The sliding material acted like a bulldozer, scouring the slope of almost all soil and vegetation. It wiped out a path down to bedrock. It was like an elliptical -shaped bulldozer. It is an amazing thing when you see that kind of material go down the mountain. When you get up in the mountains and start building roads, there are good ways to build roads and bad ways to build roads. In a situation like that I think it would have been reasonable to do subterranean work to find out what was there. When you have a large amount of uncompacted rock fill that gets a lot of water in it, you have potential for slope failures. There is still more material up there, so it could happen
again.

North Carolina Geological Survey’s Findings

Geologists investigating the landslide site found that the collapsed slope embankment was composed of highly unstable woody debris and graphitic-sulfidic bedrock fragments. Rain on this weak, improperly-constructed, roadbed probably precipitated the landslide.

During the course of their survey the geologists determined that the still standing ~ 300 foot long road embankment showed evidence of additional failures. They warned that if the fragile embankment is not properly stabilized, this land mass will pose a future threat to public safety. Recommendations to the developer included a professional investigation of the failed site in conjunction with extensive and expensive stabilization measures or removal of the remaining roadbed. It is unknown whether Mr. Wilder followed the safety recommendations outlined by the North Carolina Geological Survey. Mr. Wilder, along with all other developers conducting business in the state, are left to their own best judgment on landslide remediation.

In their assessment report the NCGS referenced other Western North Carolina landslides caused by contractors' use of graphitic-sulfidic road fill.

When developers build roads in a subdivision or planned community North Carolina law stipulates that they declare their subdivision roads either private or public. Mr. Wilder's roads were recorded as private. If private, property owners are required to sign the following liability document at time of sale:

Sample Subdivision Street Disclosure Statement

Pursuant to N. C. G. S. Section 136-102.6 _______, as the Declarant of _______,
issues this statement indicating that all of the roads within_______ are private. It is the obligation of _______ Homeowners' Association, Inc. (hereafter "Association") to maintain and keep in good repairs all of the private roads in _______Subdivision. It is mandatory for all property owners in _______ to be a member of the Association and the property owners, with the exception of the Declarant, have an obligation to pay assessments to maintain the private roads. The Declarant specifically states that the streets have not been constructed in such a manner to allow inclusion on the State highway system for maintenance.

No Escape Clause

If the Wilder landslide had occurred after lots had been sold The Cascades property owners, without exception, would have been obliged to repair the damage.

The use of the Subdivision Street Disclosure Statement as a conveyance document for streets in a hazardous-land subdivision has not been legally challenged so property owners remain uninformed about the financial risks. The following material information is omitted on Western North Carolina Mountain Subdivision Street Disclosure Statements:

—Land in this subdivision is steep slope. Soils above a 15% grade are generally not “suitable” or “poorly suited” for residential development— “Some are too unstable to be used as a foundation for buildings or roads.” References: Western North Carolina Soil Surveys/North Carolina Geological Survey.

Horseshoe Cove Subdivision Landslides

The Horseshoe Cove Subdivision landslides provide an example of the financial consequences of sharing ownership of roads built on unstable soils. Below are some photographs of the damage caused to the subdivision's roads. Engineering evaluations commissioned by the property owners found that their subdivision had been built on a hazardous-land tract. The Horseshoe Cove Subdivision was designed and developed by Don Condren. Mr. Condren is currently doing business in Jackson County.

Post-development hazardous-land determination did not invalidate the terms of the Horseshoe Cove Subdivision Street Disclosure agreement. Collectively the Horseshoe Cove property owners paid $300,000 to repair roads and drainage. The preventive landslide techniques (Costs: $2,868,000-$5,230,000) recommended by McGill engineers were not pursued.

The Federal Emergency Management Agency

Members of various influential groups, such as the Association of Realtors and the Home Builders Association have suggested that landslides and other hazardous-land conditions are immaterial threats to property owners.

Federal officials disagree.

Although the Federal Emergency Management Agency cannot force states to provide hazardous-land real estate disclosure they are requiring all disaster-designated counties to evaluate and assess all real property for landslides, wildfires, and flooding as part of their hazard mitigation plans. These unpublicized real estate risk compilations are under the purview of county planning boards. Ask to see them.

Grey Rock at Lake Lure— Property Owners' Liability

2009-09-17T09:30:00.000-07:00

Foreclosure Lot 206 $5,000

Foreclosure Lot 213(2A) $8,900

Photos— Grey Rock at Lake Lure roads adjoining the above lot sales. Under Land Resource, LLC ownership Grey Rock lots were priced from $200,000-$700,000.

The failed Grey Rock at Lake Lure development project has new owners. Jim Hester, editor of The Mountain Breeze, reported that a development group called Catalyst had purchased all of the Grey Rock inventory lots and will begin to reestablish roads in Phase 1 and 2 of the subdivision. When land sales are initiated, prospective buyers will be given the following required liability statement:

Sample Subdivision Street Disclosure Statement

Pursuant to N. C. G. S. Section 136-102.6 _______, as the Declarant of _______,
issues this statement indicating that all of the roads within_______ are private. It is the obligation of _______ Homeowners' Association, Inc. (hereafter "Association") to maintain and keep in good repairs all of the private roads in _______Subdivision. It is mandatory for all property owners in _______ to be a member of the Association and the property owners, with the exception of the Declarant, have an obligation to pay assessments to maintain the private roads. The Declarant specifically states that the streets have not been constructed in such a manner to allow inclusion on the State highway system for maintenance.

The North Carolina Real Estate Commission Web site offers the following advice concerning property owners’ liability linked to Subdivision Street Disclosure Statement:

Who is responsible for road maintenance in a subdivision or planned community?

Until responsibility for road maintenance is lawfully transferred to a municipality or the North Carolina Department of Transportation, either the developer or the owners will be responsible. However, if a developer becomes insolvent, is dissolved or dies, the owners alone will have to bear the cost unless a government agency takes control. Since there is no guarantee that any government agency will ever take control of the roads in a subdivision, owners are ultimately called upon to bear the cost of road maintenance in many situations.

Before I buy, will I know who is responsible for the road maintenance?

Not necessarily. Since October 1, 1975, developers and sellers of certain residential subdivision lots have been required by law to give the first purchaser of each property a Subdivision Street Disclosure Statement containing important information about road ownership and maintenance responsibility. However, the application of this law is quite limited, so it is very important that you inquire into the status of roads in the subdivision and find out who is responsible for their maintenance.

Hazardous-Land Subdivisions

Much of the Grey Rock at Lake Lure development site is steep slope. The generally accepted definition for steep slope is land above a 15% grade. Landslides and erosion are recognized common occurrences above this threshold and even with the best engineering techniques roads built on this terrain are inherently unstable and expensive to maintain.

The Grey Rock at Lake Lure building site is geologically hazardous but this information will not be revealed on the Subdivision Street Disclosure Statement. It has not been determined whether the Subdivision Street Disclosure Statement, as written, is a valid conveyance document for hazardous-land subdivisions so purchasers should be wary.

Grey Rock at Lake Lure Feasibility Studies

Initial planning for Grey Rock roads, under Land Resource, LLC ownership, would have required soil, hydrologic, and geotechnical analyses. These reports should be available for review. Caveat: The 1997 Rutherford County Soil Survey determined that soils on most steep slopes were not “suitable” or “poorly suited” for residential development— “Some are too unstable to be used as a foundation for buildings or roads.”

The decision to sign the Subdivision Street Disclosure Statement and join the Grey Rock at Lake Lure Homeowners’ Association should be taken under advisement. For an example of the financial consequences of sharing ownership of roads in a hazardous-land subdivision, please read the Horseshoe Cove Landslide Report.

Hazardous-Land Subdivisions—Jackson County, NC

2009-09-15T15:24:00.001-07:00

September 15, 2009

Linda Cable, Jackson County Planning Director
Jackson County Planning Office
Suite A-258
401 Grindstaff Cove Road
Sylva, NC 28779

Dear Ms. Cable:

On May 6, 2003 roads designed and commissioned by Don Condren, a Haywood County developer, were damaged by landslides. These events raised the question of property owners' liability for roads in hazardous-land subdivisions. Horseshoe Cove, the subdivision under discussion, is located in Maggie Valley, North Carolina.

Horseshoe Cove property owners did not learn until after the fact that Mr. Condren had chosen a hazardous-land tract for their subdivision.

As you know, post-development, hazardous-land determination is of no consolation to aggrieved property owners. Under North Carolina law the responsibility for road maintenance and repairs is transferred from the developer to property owners at time of sale through a document titled the Subdivision Street Disclosure Statement.

Horseshoe Cove property owners, facing costly long-term litigation and the threat of developer's bankruptcy acknowledged responsibility and paid $300,000 to restore their roads. The Horseshoe Cove Subdivision remains at risk: the multi-million dollar landslide stabilization techniques recommended by McGill engineers were not undertaken.

Mr. Condren is currently doing business in Jackson County and received recommendation for his Rolling Hills Estates Major Subdivision application on September 11, 2008. In summary, the Planning Board Minutes show:

—Mr. Condren’s proposed, average 21% slope, subdivision construction site is exempt from landslide prevention studies mandated by the Mountain and Hillside Development Ordinance.

—The Rolling Hills Estates Homeowners’ Association has been established and is recorded-deed book 1747 page 545.

— Property owners will be advised on their Subdivision Street Disclosure Statements that they will be legally responsible for costs pertaining to roads and common areas.

The North Carolina standardized Subdivision Street Disclosure form as shown below may be a suitable conveyance document for no-risk building sites, but it is not an acceptable liability disclosure statement for Jackson County’s hazardous-land subdivisions.

Sample Subdivision Street Disclosure Statement

Pursuant to N. C. G. S. Section 136-102.6 _______, as the Declarant of _______,
issues this statement indicating that all of the roads within_______ are private. It is the obligation of _______ Homeowners' Association, Inc. (hereafter "Association") to maintain and keep in good repairs all of the private roads in _______Subdivision. It is mandatory for all property owners in _______ to be a member of the Association and the property owners, with the exception of the Declarant, have an obligation to pay assessments to maintain the private roads. The Declarant specifically states that the streets have not been constructed in such a manner to allow inclusion on the State highway system for maintenance.

Upon your advice and recommendation Jackson County passed the Hillside and Mountain Development Ordinance in 2007. This urgency measure stated that much of the county’s developable land was inherently unstable and thus hazardous.

With that said, Jackson County Subdivision Street Disclosure Statements are not comprehensive disclosure documents. A material fact—hazardous-land designation— has been omitted. The Jackson County Planning Board can correct this error by requiring the inclusion of a "Fair Warning" addendum on the disclosure statements. Property owners' liabilities linked to private road ownership are significant and developers must clearly state them. Before assuming responsibility for developers' roads, property owners should be apprised of the following:

This subdivision’s roads were built on likely unstable soils. Landslides and erosion are recognized chronic hazards above a 15% slope. Soil assessments for this subdivision can be found at the county Soil & Conservation Office. Jackson County did not require geotechnical, hydrologic or soil studies for this subdivision. Should this subdivision’s roads be damaged by predictable natural occurrences, the members of the homeowners’ association will be liable for all repairs.

The absence of material information on Jackson County Subdivision Street Disclosure Statements presents unconsidered liability issues. If the Subdivision Street Disclosure Statement is found to be an invalid conveyance document, what legitimate claims could injured parties bring against those involved in the development and sale of said properties?

Thank you for your interest in this matter.

Lynne Vogel
WNCSOS
232 Wonderly Lane
Mars Hill, North Carolina 28754

Horseshoe Cove Landslides—Bowen Letter

2009-08-28T19:22:00.000-07:00

On May 6, 2003 rain set off landslides in a Maggie Valley, North Carolina subdivision. This event threatened homes, damaged roads and prompted legal action.

The Horseshoe Cove residential community was designed and developed by Don Condren, Doncon, Inc.

The following is a copy of the letter that Mr. Bowen sent apprising other property owners of the situation in Horseshoe Cove.

Darell Bowen
12669 Headwater Way
Wellington, FL 33414

June 19, 2003

Dear Horseshoe Cove Property Owner:

I have now been in Maggie Valley for a week. During this time, I have personally walked the area to review the damage, met with Pam Williams to discuss the May 31st meeting and met with our attorney to discuss our future options. I have also opened a bank account of “Horseshoe Cove Property Owners” so that we have a place to collect funds and pay bills for whatever we decide to do. I rented a post office box in Maggie Valley so checks can be sent there. Pam will check the box regularly and make deposits. I will maintain the checkbook and will set up an accounting system so you can all receive regular financial statements.

Within a few days you will receive a letter from our law firm outlining a plan of action and the approximate cost of such. We are asking each property owner to send a check for $500.00 to P. O. Box 1102, Maggie Valley, N.C. 28751. If everyone sends their money in quickly we should be able to complete the groundwork necessary before pursuing parties responsible for the mess we are facing. Hopefully this can all be finished by the middle of July. (Atty. Review, engineering report, etc.). At that time we can decide whether we need to make some repairs and seek restitution from the responsible parties or we work our way through the legal system to force the responsible parties to make repairs. You will note that I keep referring to parties because I think several people may be sharing in this responsibility including the developer, engineers, Haywood County, Town of Maggie Valley, contractors and possibly even the state of N. C. Again, this will be determined during the
attorney and engineering review stage.

It is very clear to me that everyone of us in Horseshoe Cove is affected by the current situation. Our property values have declined substantially, if we sell at all. Those of you that are renting are being affected by loss of rental income. At this point, none of us can rent or sell without first disclosing this situation to any potential tenants or buyers. Currently there is a potential danger to every one of our homes. Some areas are more dangerous than others. First of all, there are two spots on Bridle Drive, one on Stirrup and one on Creekside where the road could completely wash out very easily. If the one spot on Bridle goes, so goes the sewer, which will effect all of us. Secondly, there are some boulders placed up on Stirrup that are going to come loose at some point. When they do there is the potential to damage property and injure people down on Bridle and or Creekside. Lastly, we have to get the erosion under control or the whole mountain is going to continue to deteriorate.

After the engineering report is done, we may need to consider making some of these repairs now because I don’t think they can wait very long. As for the erosion, I observed many problems on individual lots and I think each of you need to deal with these problems as quickly as possible because they are making the overall situation worse. These problems on your individual lots will not be part of any action we take regarding the common areas. Please address them individually as soon as you can.

With all of this said, I feel our case is getting stronger and stronger and I intend to do everything I can to strengthen it. I hope that each of you will do the same. We seem to have the press on our side. The local paper has done a couple of articles so far and both have been slanted in our favor. We also had WLOS (TV) in Asheville come out last week and do a segment for their six o’clock news. This piece was also very favorable toward us. Hopefully, we will be able to keep the press on it and on our side. I am also hopeful that we can make some political connections, particularly at the state level, to help us. The law firm has offered to help with this.

I hope that you all will thank Pam for all she has done and continues to do. Her role is so important because she is here year round and most of us are part time residents.

One thing that would be very helpful is for all of you to email me so I can get your email addresses. That would make communicating much easier and cheaper.

Sincerely yours,

Darell Bowen

Legal Obligation to Restore Privately-Owned Roads

In the succeeding months the property owners learned several facts: Their subdivision roads were built on unstable soils and they, as defined by the Horseshoe Cove Disclosure of Private Roadway document, owned and were responsible for these roads.

Mary Euler, the lawyer representing the property owners, advised her clients of the costs and risks of pursuing litigation. She warned them that Mr. Condren would likely declare bankruptcy if faced with a lawsuit. Practicality won: litigation was dropped. The property owners assumed responsibility and paid $300,000 to repair their roads. Future landslide-prevention measures as recommended by McGill engineers were not undertaken. Estimated costs for stabilizing 4 roads: $2,868,750-$5,230,000.

In the absence of litigation, two issues were not resolved. Mr. Condren’s failure to disclose Horseshoe Cove hazardous-land conditions and his competency as a developer.

Disclosure of Private Roadway Document

2009-08-28T18:18:00.000-07:00

Sample

State of North Carolina

County of Haywood

Disclosure of Private Roadway

To:

RE: Lot____, _______________ Subdivision

This disclosure is given in accordance with North Carolina General Statutes Section 136-102.6. In connection with the purchase by you of Lot____ of the ___________ Subdivision, as shown on a map recorded in Plat Cabinet ______, Slot____________ of the Haywood County Registry, this is to advise that the ______ foot wide roadway shown thereon leading from ________ Road and serving the subdivision is designated on that map as a private road and not a public road. All of the property owners of property facing on this private road have easements with each other in order to travel over and across this roadway. As a private road, and not a public road, the responsibility for maintenance of this road is upon the property owners although the undersigned shall have the right to improve said roadway to the extent it deems appropriate. No representation is made to you that construction of this roadway is sufficient to be included in the state secondary road system or that the State of North Carolina would eventually assume maintenance of this roadway.

This __________day of _____________, 1987.

By:_______________________

The undersigned purchasers of Lot_____ of _____________Subdivision
(Cabinet____, Slot_____, Haywood County Registry), do hereby acknowledge receipt of the above disclosure statement.

This the_______ day of ______________, 1987

_________________________________________

__________________________________________