Blaine couple sue city for denying request to build backyard dwelling for homeless family

The homeowners argue the city violated the law by rejecting their plan to build an accessory dwelling unit.

The Minnesota Star Tribune
July 8, 2025 at 3:00PM
Alex Pepin hoped to build an affordable housing unit for a family in need in his Blaine backyard. But after neighborhood outcry, the city has put a pause on approving any accessory dwelling unit. (Sarah Ritter/The Minnesota Star Tribune)

A Blaine couple are suing the city after officials denied their request to build a backyard housing unit for a homeless family.

Homeowners Alex and Lynda Pepin argue the City Council violated local, state and federal law by rejecting their application for a permit to build a detached accessory dwelling unit (ADU). The tiny homes are often called mother-in-law suites or granny flats.

The nonprofit Institute for Justice, which is representing the Pepins, provided the Minnesota Star Tribune with a copy of the complaint filed in Anoka County District Court on Monday. The lawsuit lists the city, Mayor Tim Sanders and council members as defendants.

The ADU request complied with the city’s rules, the lawsuit says, “And yet the permit was denied. Why? Because Blaine’s City Council decided that it was uncomfortable not with what or where the Pepins might build, but rather, with who might live in it.”

Blaine city spokesman Ben Hayle said in a statement that “the City Council followed Minnesota law and Blaine city code when considering and ultimately denying the Pepins’ CUP application.” He said officials will evaluate and defend against the lawsuit once the city is served.

Alex Pepin, who runs a nonprofit serving the homeless, said he wanted to rent out the unit to a family in need. And he planned to someday house his mother-in-law or his kids after they graduate.

“Our family deeply believes in giving back — in using what we have to help those most in need," Pepin said in a statement. “It’s incredibly frustrating that the city council chose to ignore its own laws and block our efforts to provide a safe home to a family working to get back on their feet.”

But citing concerns about Pepin renting out the space and whether the unit would be compatible with the neighborhood, the City Council in May voted to deny the request. The council then put a yearlong moratorium on accepting any ADU requests while officials rethink the regulations.

Blaine’s first ADU request

The City Council four years ago agreed to let residents build ADUs as officials considered ways to attract more affordable housing.

Some viewed it as a way for homeowners to offer an alternative housing option, including for aging relatives, without drastically changing a neighborhood’s character.

But the city hadn’t received any requests from residents looking to build a detached ADU until the Pepins put in an application.

The couple proposed a 616-square-foot home with a maximum of four occupants in their backyard overlooking Carrara East Park, which met city standards.

City code includes restrictions on the size of an ADU, how many people live there, parking, aesthetics and setbacks. The city allows ADUs to be rented out with a rental license.

Alex Pepin runs the nonprofit Ten Thirty House, and views helping the homeless as part of his Christian calling.

He said renting out the dwelling would be a separate project for his family. Pepin planned to pay for the ADU, with construction to cost up to $140,000, according to the lawsuit.

Pepin expected to rent the space to a family working on exiting homelessness. He said that could be a single mother with children, who would be screened for criminal history and recent drug use. The Pepins would be nearby to offer support.

When neighbors learned of the plans, many protested the idea, worried about crime and harm to the character of the neighborhood and nearby park.

Homeowners sue over council decision

The Planning Commission approved the couple’s request for an ADU permit.

But in May, several council members voiced concerns. Some said they expected the ADU ordinance would be used by families wanting to add a home for their aging relatives, not looking to rent out their space.

Some council members also argued the backyard unit would not be compatible with adjoining properties, adding a level of density that does not fit the rest of the neighborhood.

Council Members Chris Ford and Terra Fleming cast the only votes to approve the permit request. Ford argued the council must decide whether an application meets the city’s criteria, not to vote based on legislative intent.

In their lawsuit, the Pepins argue the council rejected the permit request despite their proposal meeting zoning requirements. The suit argues the city’s decision violated the couple’s equal protection rights, as well as constitutional rights to establish a home and freely associate.

“Zoning laws exist to protect the health and safety of communities, not to discriminate against certain groups of people,” attorney Ari Bargil said in a news release. “When local officials use zoning as a tool to exclude people based on stereotypes or unfounded fears, they violate the constitutional rights of property owners and those they seek to help.”

The lawsuit seeks a declaratory judgment that the couple’s rights were violated, as well as an order compelling the council to reconsider the issuance of an ADU permit.

about the writer

about the writer

Sarah Ritter

Reporter

Sarah Ritter covers the north metro for the Minnesota Star Tribune.

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