SW8990334_NOV_20190628

ROY COOPER
Governor
MIC14AELS.REGAN
Secretory
S. DANIEL SMITH
Director
June 28, 2019
NORTH CAROLINA
Envfronmental Quality
CERTIFIED MAIL #7013 2630 0002 0760 9510
RETURN RECEIPT REQUESTED
PM&M, Inc.
Attn: Jeffrey L. Morris, President
PO Box 280
Hampstead, NC 28443
Subject: NOTICE OF VIOLATION, NOV-2019-PC-0484
Cross Creek Subdivision Phase 2
Stormwater Permit No. SW8 990334
Pender County
Dear Mr. Morris
JUL 08 201J
DENR•LAND QUALITY
STORMWATER FERMI I-TING
On July 21, 1999, the former Division of Water Quality issued a 30% low density permit to PM&M,
Inc., for the construction of Cross Creek Subdivision Phase 2. On August 31, 2017 Wilmington
Regional Office staff of the Division of Energy, Mineral and Land Resources (DEMLR) performed a file
review inspection of the subject project, located off NC 210 near its intersection with NCSR 1002 in
Hampstead, Pender County, North Carolina. The Division notified you of the results of that file review
via letter dated September 6, 2017.
On November 7, 2017, the Division received a request to transfer the subject stormwater permit.
The Division conducted a follow-up file review inspection and as a result of that review, the transfer
application was returned as incomplete on November 30, 2017. The application return letter
documented several compliance issues and stipulated a response date of January 31, 2018.
Cross Creek Subdivision Phase 2, has been found in violation of Stormwater Permit Number SW8
990334, issued to you on July 21, 1999, pursuant to the requirements of the stormwater rules, 15A
NCAC 2H.1000. The violations found are:
1. Failure to certify the storm water system. Per Schedule of Compliance Condition 11.10 of the
Permit, the Permittee must certify that the project's stormwater controls and impervious
surfaces have been constructed within substantial intent of the approved plans and
specifications. Any deviations from the approved plans and specifications must be noted
on the Certification. An administrative review of the file revealed that the required
Certification has not been received.
2. Failure to submit a copy of the recorded deed restrictions. Per Schedule of Compliance
Condition 11.6 of the Permit, a copy of the recorded deed restrictions was required to be
submitted within 30 days of recording them. Our records indicate that a copy of the
recorded deed restrictions was submitted on November 7, 2017, nearly 20 years after the
recording date. Had they been submitted in a timely manner, the error in the recorded
document could have been caught and corrected much sooner.
3. Failure to modify the permit for additional BUA. Per Schedule of Compliance Condition
11.12 of the Permit, an addition to the approved amount of built -upon area requires a
modification to the Permit. The permit -required deed restriction statements as listed in
Attachment A-1 to the Permit, indicate that the maximum BUA limit varies for each lot. The
recorded deed restrictions reference the maximum BUA limit as 24% of the lot area. The
permitted per lot BUA limits do NOT equate to 24% of the lot area. In fact, the recorded
BUA limits result in a larger BUA limit on many of the lots than the permit allows.
North Carolina Department of Environmental Quality I Division of Energy, Mineral and Land Resources
Wilmington Regional Office 1 127 Cardinal Drive Extension I Wilmington, North Carolina 28405
910.796.7215

State Stormwater Permit No. SW8 990334
Page 2 of 2
4. Failure to modify the permit prior to a chance of ownership. Per Schedule of Compliance
Condition 11.12 of the Permit, the permittee is required to modify the permit prior to a
change of ownership. The conveyance of the common area to the HOA in October 2005
and June 2008, constituted such a change of ownership. The permittee has not yet
submitted a complete transfer application, as was requested on November 30, 2017.
5. Failure to provide requested information within the specified time frame. Per Schedule of
Compliance Condition 11.7 of the Permit, the permittee is required to submit all information
requested by the Director or his/her representative within the time frame specified in the
written information request. The November 30, 2017 application return letter required a
response by January 31, 2018. To date, the permittee has provided no response.
To correct these violations, you must:
1. Provide the required Certification after all of the other deficiencies are resolved.
2. Decide if the permit can be modified to have the incorrect recorded deed restrictions
become the permitted condition. This is only possible if the overall density of the
subdivision can meet the 30% limit when each of the 42 lots is limited to 24% of its area as
its maximum BUA limit.
3. If the project will exceed 30% overall density based on each lot having 24% of it's area as
its maximum BUA limit, then either the recorded deed restrictions must be amended to
stipulate the BUA limits as listed in the permit, or the permit must be modified to high
density. This will require a suitably designed primary stormwater control measure to be
permitted and constructed to treat all of the runoff from the high density subdivision.
4. Once all the deficiencies are corrected and addressed, submit a request to transfer the
permit to the HOA.
5. Provide a response to this NOV within the stipulated time frame (July 27, 2019).
Please submit a written "Plan of Action" by July 27, 2019 to DEMLR that states how and when these
violations will be corrected. If the plan of action is not received by this date you will be in further
violation of 15A NCAC 2H.1OOO, which could result in the initiation of enforcement action which may
include recommendations for the assessment of civil penalties, pursuant to NCGS 143-215.6A.
By copy of this letter to the Pender County Planning Department, this office is requesting that the
County consider withholding building permits and Certificates of Occupancy for lots within Cross
Creek Phase 2 until this matter is satisfactorily resolved.
If you have any questions concerning this matter, please call Linda Lewis at (910)-796-7215.
Since ly,
.S S. Daniel S� ith, Directory
Division of Energy, Mineral, and Land Resources
Enclosures: 9/7/2017 and 11/30/2017 Compliance Inspection Reports
GDS\arl: G:\\\Stormwater\Permits & Projects\1999\990334 LD\2019 06 NOV 990334
cc: Mark Walton, P.E., Walton Engineering
Pender County Planning Department
Alaina Morman, DEMLR
Wilmington Regional Office Stormwater File

Compliance Inspection Report
Permit: SW8990334 Effective:07/21199 Expiration:
Project: Cross Creek Phase II Subdivision
Owner: P M & M Inc
County: Pender Adress:
Region: Wilmington
City/State/Zip:
Contact Person: Jeffrey L Morris Title: President Phone: [phone]
Directions to Project:
Type of Project: State Stormwater - Low Density
Drain Areas: 1 - (Harrisons Creek) (03-06-23) ( C;Sw)
On -Site Representative(s):
Related Permits:
Inspection Date: 11/30/2017 Entry Time: 12:00PM Exit Time: 12:05PM
Primary Inspector: Alida R Lewis ✓° Phone: [phone]
Secondary Inspector(s):
Reason for Inspection: Follow-up
Permit Inspection Type: State Stormwater
Facility Status: ❑ Compliant ® Not Compliant
Question Areas:
® State Stormwater
(See attachment summary)
A)G V-- Z01q , 10" c484
Inspection Type: Compliance Evaluation
page: 1

Permit: SW8990334 Owner - Project: P M & M Inc
Inspection Date: 11/30/2017 Inspection Type Compliance Evaluation Reason for Visit: Follow-up
Inspection Summary:
The Division conducted a follow-up file review inspection of this project. The permittee submitted a transfer application on
November 7, 2017, but it was returned on November 30, 2017, for the following reasons:
1. The return letter stipulated a response date of January 31, 2018,
2. The permittee used an outdated transfer application and did not provide all the necessary documentation.
3. The permittee has not submitted a copy of a recorded amendment to correct the deed restrictions.
4. The permittee has not submitted any response at all since the transfer application was returned. The permit remains
in the name of the now dissolved corporate entity, PM&M, Inc.
5. The permittee has not submitted a permit modification to address the potential BUA overages caused by the
incorrectly recorded deed restrictions.
File Review Yes No NA NE
Is the permit active? ® ❑ ❑ ❑
Signed copy of the Engineer's certification is in the file? ❑ ®❑ ❑
Signed copy of the Operation & Maintenance Agreement is in the file? ® ❑ ❑ ❑
Copy of the recorded deed restrictions is in the file? ❑ ®❑ ❑
Comment: 1 The permittee submitted a r uest to ttansfer this permit on November 7 2017. The permittee used an
outdated application form and did not submit the required corrected deed restrictions as was previously
requested The transfer application was returned as incomplete on November 30 2017. Corrected deed
restrictions were due by January 31 2018. Since the date the application was returned, the permittee
has not submitted anything.
Other Permit Conditions Yes No NA NE
Is the site compliant with other conditions of the permit? ❑ ®❑ ❑
Comment: 2 Due to the recorded BUA per lot discrepancies, modification of the low density permti to high density
may be required to address the larger BUA allocations made in the recorded documents.
3. The common areas of the subdivision have been conveyed to eh HOA, but the permit remains in the
name of the now dissolved corporate entity. PM&M Inc. and has not been transferred to the HOA._
page: 2

Compliance Inspection Report
Permit: SW8990334 Effective:07/21199 Expiration:
Project: Cross Creek Phase II Subdivision
Owner: P M & M Inc
County: Pender Adress:
Region: Wilmington
City/State/Zip:
Contact Person: Jeffrey L Morris Title: President
Directions to Project:
Type of Project: State Stormwater - Low Density
Drain Areas: 1 - (Harrisons Creek) (03-06-23 ) (C;Sw)
On -Site Representative(s):
Related Permits:
Inspection Date: 08/31/2017 Entry Time: 12:OOPM
Primary Inspector: Alida R Lewis
Secondary Inspector(s):
Reason for inspection: Routine
Permit Inspection Type: State Stormwater
Facility Status: ❑ Compliant ® Not Compliant
Question Areas:
® State Stormwater
(See attachment summary)
Phone: [phone]
Exit Time: 12:05PM
Phone: [phone]
Inspection Type: Compliance Evaluation
page: 1

Permit: SW8990334 Owner - Project: P M & M Inc
Inspection Date: 08/31/2017 Inspection Type Compliance Evaluation Reason for Visit: Routine
Inspection Summary:
A file review of the permit file has been conducted and the following deficiencies need to be addressed:
1. Correct the deed restrictions to reflect the BUA limit for each lot as listed in the permit. OR, submit a permit
modification to change the BUA limit for each lot to match the current recorded document. In either case, prior to transfer
of the permit, supporting records which document that no lot has exceeded the permitted BUA limit will be required.
2. Submit a request to transfer the permit to the HOA.
File Review Yes No NA NE
Is the permit active? ® ❑ ❑ ❑
Signed copy of the Engineer's certification is in the file?
Signed copy of the Operation & Maintenance Agreement is in the file?
Copy of the recorded deed restrictions is in the file?
■ §J ■ ■
in ❑ ❑ ❑
Comment: 1 The permittee annexed Phase 2 and subjected the lots in Phase 2 to the same recorded deed
restrictions as Phase 1 (DB 1303 at PG 303). As indicated in the Inspection Report for Phase 1 under
SW8 970518 the recorded document does not match up with the BUA limits listed in the permit.
Other Permit Conditions Yes No NA NE
Is the site compliant with other conditions of the permit? ❑ ®❑ ❑
Comment: 2 The permittee corporate entity was suspended by the NCSOS in May 2013 and has not been
reinstated.
3 Ownership of the common areas of the subdivision has been conveyed to the Cross Creek HOA, but
the permit has not been transferred.
page: 2