The state Department of Environmental Protection has issued a notice of violation against the owner of Hotel LBI, the new 102-room hotel just off the Causeway in Ship Bottom, for failing to obtain a Coastal Area Facilities Review Act permit and a separate permit to build in a flood hazard zone.

The state action comes at the same time the hotel’s owner is suing the borough in an effort to void an agreement to make changes to the hotel’s south-facing breakaway wall and remove balconies that…