Blaine, Minnesota Couple Sues City After Council Bans Backyard ADUs

The Blaine City Council voted 5-2 to deny the Pepins' permit, vaguely citing conflicts with the unwritten "intent" of the ADU ordinance — and that was just the beginning. On March 16, 2026, the council went further, voting to ban detached ADUs from the city entirely, effectively closing the door on every backyard tiny home in Blaine. Alex and Lynda Pepin are now suing the city after leaders denied their plans to build a tiny home and rent it to a family experiencing homelessness.

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. Pepin planned to pay for the ADU, with construction to cost up to $140,000, according to the lawsuit. Motivated by their faith and years of work with local nonprofits, the Pepins decided to build an ADU behind their home in order to rent it out at a below-market rate to a family down on their luck.

Blaine's own Planning Commission voted to approve the permit, but then neighborhood opposition mobilized. Rumors spread that the Pepins were building a homeless shelter or would house people with criminal backgrounds — none of it true. The ADU would have been rented to one family screened by a local nonprofit. Signs of disapproval appeared as close as next door, where a "No ADU" sign pointed to the Pepin property. Neighbors worried about the resale values of their homes and safety, saying they did not know who would be living inside.

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, then put a yearlong moratorium on accepting any ADU requests while officials rethought the regulations. After the first denial, the Pepins resubmitted with the ADU designated for family use only. The council voted 4-3 against the second proposal, citing concerns that the unit could place additional strain on nearby Carrara East Park and may not fit with the character of the surrounding neighborhood.

The council's stated rationale shifted over time. Council Member Terra Fleming said the ordinance, originally approved in 2021, was introduced with good intentions tied to COVID-era housing needs, adding, "But until somebody does it, you don't realize where the problems lie, and that's when you tighten it up." Council Member Chris Massoglia framed the ban as a safeguard against corporate investors, saying, "I support the change as a solution to some of the concerns we've heard from the community around corporations buying up single-family homes and turning them into multi-family rental properties." Alex Pepin runs the nonprofit Ten Thirty House and views helping the homeless as part of his Christian calling.

The Pepins' suit asserts that the council violated local, state, and federal law by rejecting their application, which complied entirely with Blaine's zoning requirements. Matt Liles, a litigation fellow at the Institute for Justice, said, "The Blaine City Council cannot ignore its own laws based on unfounded fears about who might live nearby." Institute for Justice attorneys Joseph Gay and Matthew Lisles wrote to the Blaine Planning Commission arguing the move to eliminate detached ADUs would be "both unwise and unconstitutional," and that "Blaine carefully tailored the requirements for detached ADUs to match or be stricter than existing requirements for detached accessory buildings such as garages, which residents have regularly built in their yards for years."

City Attorney Eric Larson pushed back in writing, arguing that the amendment falls within the city's legislative authority as a zoning ordinance and that courts generally grant substantial deference to municipalities on such decisions. Under rational-basis review, the city does not have to prove its policy is the most efficient or least restrictive option available. A city spokesperson said they stand by the council's denial and that they followed Minnesota law and Blaine city code.

The St. Paul Area Association of Realtors opposed the ban, arguing ADUs could help reduce Minnesota's estimated housing shortage of 100,000 units and that Blaine's existing regulations were already sufficient. Only two public comments opposing the change had been submitted to the city before the March 16 vote.

The lawsuit presses forward regardless. Attorney Joseph Gay said, "We don't see it as affecting our litigation. We're still focused on vindicating the Pepins' rights, and in particular their constitutional rights. It's a shame that going forward, everybody in Blaine lost this useful tool for using their property." The council's vote preserved attached ADUs, such as basement apartments and above-garage units, while scrubbing detached backyard structures from all zoning districts. If the Pepins ultimately prevail in court, they could end up as the only household in Blaine with the legal right to build one.