Yeah, I'm making the new deck freestanding so I won't have to get a permit for it. Already checked on that. ;) Also I just don't see the advantage of attaching a deck to your house.
From my previous discussions with them about something else, the building department doesn't have any records for my house. That might not mean it was unpermitted, though, just that they don't have records that old - the house is 124 years and the addition is probably 60 years old. I think it would be grandfathered at this point, beyond the statute of limitations anyway, but it's possible that when doing repairs you would have to bring it up to code, whether previously permitted or not, since certain types of repairs count as new construction (i.e. when I replaced my kitchen cabinets I had to bring the wiring up to code, apparently, because it was considered a new kitchen.)
First of all I'm worrying about getting a plan for a structurally sound foundation under there. I think I'll go with bringing the stem wall up a little higher, and that will allow me to slope the ground beside the house away from it for better drainage, too, then reconstruct the wall with PT lumber as Greg said. Building code seems to think 6" is wide enough for the stem wall as long as it doesn't extend more than 80cm above ground (if I'm reading this right). Thanks for your thoughts. :)