2008 – Developer Todd Black records restrictive covenants and plats for Broad River Highlands, a 92-lot planned community.
2008–2010 – Only about 10 lots are sold. Development stalls, and financial problems mount.
2010–2011 – Banks foreclose on the remaining unsold property. The project effectively goes into receivership.
Legal effect – Under the North Carolina Planned Community Act:
- §47F-3-104: Special declarant rights terminate upon foreclosure unless expressly preserved in the foreclosure documents.
- §47F-3-101: Defines the association as the body corporate through which owners act.
- §47F-3-102: Grants powers (maintaining common areas, levying assessments) only to a lawfully established association.
Because Black lost the property in foreclosure and no valid transfer of declarant rights occurred, it appears those rights ended at that point. Without a valid declarant, later adoption of bylaws, amendments, or board actions stand on questionable legal footing.
Summary: The community’s history is rooted in early bankruptcy and foreclosure. With only 10 of 92 lots sold before collapse, Broad River Highlands never had a clean handoff of declarant rights. This left gaps in governance that continue to affect owners today