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

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