The City of Seattle is being sued over a proposed tiny house village in South Lake Union.

The Freedom Foundation filed the suit last week, claiming the city is violating its own laws and land-use code by issuing a construction permit to the non-profit "Low Income Housing Institute." The lawsuit also asserts the city failed to do adequate community outreach.

The tiny house village would be built at Eighth Avenue N. and Aloha Street.

The city says it fully intends to defend the suit and are currently assessing the claims.

Related: Seattle tiny village plan gets pushback from neighbors in South Lake Union

Seattle Mayor Jenny Durkan approved the Aloha tiny house village in South Lake Union in June as part of her plan to provide 500 emergency shelter bends within the next 90 days. Some 54 tiny houses would be built on city-owned property a block west of Lake Union Park.