A local nonprofit challenging the City of Calhoun’s ban on homes smaller than 1,150 square feet won an initial legal victory.
Tiny House Hand Up (THHU) sought to use donated land to build modest, affordable cottages, but the city’s restrictions blocked their plans. Represented by the Institute for Justice (IJ), THHU argued that the ban violated the Georgia Constitution. The judge agreed, ruling from the bench that Calhoun cannot enforce its prohibition against the nonprofit, with a written order.
Per the order:
“The Calhoun City Administrator, however, expressly told Tiny House Hand Up’s executive director in an August 26. 2020 email that the PRD district does not permit homes smaller than 1.150 square feet. Based on that statement. Tiny House Hand Up sought and obtained the least restrictive single family residential zoning available. R-IB. in June 2021. The City then issued a moratorium on new PRD applications in October 2021. which remained in effect when this case was filed. Soon after, the City amended its zoning code to expressly forbid homes smaller than 1.150 square feet in PRD districts, forever blocking that path for building smaller homes.
“That is a procedural due process violation. The government may not mislead parties to their detriment. It is therefore unnecessary to analyze whether and what kind of detriment exists. As the Court ruled from the bench on August 7. 2025. the undisputed facts show that City officials affirmatively misrepresented the requirements of the PRD zoning district to Plaintiff s detriment, establishing grounds for equitable estoppel.”
THHU hopes to build ‘Cottages at King Corner,’ a community of more than 40 small homes on donated land. The nonprofit says it has plans, financing and contractors ready to move as soon as legal hurdles clear.
“This is not just a win for our clients, it’s a win for the people of Calhoun,” said IJ Attorney Joe Gay. “The city spent years telling Tiny House Hand Up that they can’t build modest cottages on their property. We are thrilled to finally have their constitutional rights vindicated in court.”
“Small homes offer flexibility for people who might not be able to afford larger homes or who just prefer to downsize,” said IJ Senior Attorney Dan Alban. “Imposing arbitrary limits on home size makes no sense and violates the Georgia Constitution.”
A Georgia Public Policy Foundation study found that many Georgia communities impose similar restrictions. Sixteen counties, 30 cities in metro Atlanta and 25 county seats mandate single-family homes larger than 1,000 square feet. By contrast, only eight counties, three metro Atlanta cities and six county seats allow smaller minimums.
If Calhoun does not appeal, the ruling will stand as final, clearing the way for THHU to break ground on its planned community.