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You have several options here.
First, start off with the NC DEQ. Go to their website and start looking for how to address violations. You should also be able to file a complaint about the neighbor as well. If the runoff is adding discolor (muddy) to the area and area streams, they should be all over that.
Next, go to your county/city building codes if they have any, I know some of the smaller cities/counties can be weak. Make sure he has pulled all applicable permits, etc. If he hasn’t, drop a dime on him.
Document, document, document. Take pics, videos, etc. Especially if you have before pics.
The only way you correspond with this neighbor is via texts or emails, again document. Anything said orally is not going to be backed up in court, if you end up there. And that is my next thing, this is a civil matter and you and the others may have to end up suing him. At least there’s more of you to share the attorneys fees. But be prepared, it could be years before you get any money or corrective action via the court system.
ETA: OP, what city/county you in?
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I had forgotten about DEQ. Thank you for reminding me of that.
Fortunately, or unfortunately, depending on how you see it, the runoff does not appear to be adding any mud into streams or drains. Back when they were grading, there was a fair amount of mud deposited on my property but the house 3 doors down was at least ankle deep in muddy water. I would tend to say that was a pretty rare event since we got an historic amount of rain when that happened.
I'm pretty familiar with how civil court plays out, especially the part about hearsay. If it isn't in writing, it never happened. I can't even count how many rental property owners I've seen get beat up by that in eviction court. (I'm not a lawyer. I'm a soon-to-be ex-landlord and I did all but a few of my own evictions) I'll say there is no love for these people and I feel fairly confident they would lose in court but, at this point, I would prefer to not start hiring lawyers. They're the only ones who would win. And the neighbors would absolutely refuse to make any corrections. The husband would be willing to do the work but the wife would shut that down. She's one of those horribly spiteful people who always want to play the victim because she's foreign. The reality is, people don't like her because she's just a jerk.
There is a shed that had no permits pulled, so that may get brought up at the appropriate time. Other than that, all the other permits seem to check out. They have the certificate of occupancy for the house and the other permit was successfully completed and signed off by the county.
This is one of the few times I'm glad to be in Charlotte. Code Enforcement here doesn't screw around. In my experience, they almost seem eager to find violations. The only downside is, there are so many structures being built, they may not have time to get around to dealing with this mess for a while.
I am planning to call the city engineer's office this morning as well as the building permit office just to see if I can learn anything from them. We'll see what happens.