A Portland lawyer whose home and business were badly damaged when a fire started at a homeless camp next door filed a $541,000 lawsuit against the city of Portland for allegedly allowing the camp to exist on a city-owned vacant lot.

Raylynna Peterson says the city forced the campers to move in early 2016 from a grassy hillside near Interstate 5. Many of the campers relocated about half-mile away to a city-owned lot at 2743 N. Kerby Ave., which is directly next door to the home where she lives and operates her law office.

Peterson’s suit claims the city failed to enforce its building, zoning and fire-safety codes as 40 to 60 campers erected makeshift structures with wooden pallets and boards, used propane stoves to cook and left rubbish strewn about that attracted insects and rodents.

Peterson’s suit also lists as defendants several nonprofit organizations that the suit claims organized and developed the homeless camp on the lot: Boots on the Ground PDX, Houseless Community Builders and Anawim Bethel Christian Fellowship.

None of the nonprofits could immediately be reached for comment. The city attorney’s office declined comment, citing the pending litigation.

A photo taken after the Dec. 5, 2016, fire shows wooden ballets, boards and other materials homeless campers used to construct shelters. (Stephanie Yao Long/The Oregonian)

According to news reports at the time, the fire started as someone camping on the lot tried to make some coffee and a stove malfunctioned about 6:35 a.m. on Dec. 5, 2016.

Peterson’s suit says she was “jolted awake" by the first of multiple propane tanks exploding at the camp. She thought it was a gunshot and jumped out of bed to call 911 and to check on her children. Her older daughter was in the shower and her younger daughter was still in bed.

Peterson looked outside to see “bright orange and yellow flames blanketing” the downstairs windows of her home. Someone outside was yelling “Get out! Get out! Your house is on fire!!” according to the lawsuit.

The suit says Peterson’s older daughter ran into her bedroom for some clothes, just as the room’s window exploded.

“A thick sheet of plastic insulation attached to the window frame is the only thing that saved Peterson’s child from being struck by flying shards of glass,” the suit says.

As more propane tanks exploded, Peterson and her two girls ran barefoot out of their home and past the intense heat from a wall of flames, the suit says.

Portland Fire & Rescue reported that no people were injured in the fire. A dog, however, died.

The camp, dubbed “Forgotten Realms," was across the street from Legacy Emanuel Medical Center and Randall Children’s Hospital.

The suit says Peterson’s home suffered damaged from the heat, from the smoke and from the water used to put the fire out. Photos taken by The Oregonian/OregonLive after the fire show extensive melting and warping to the side of Peterson’s home, which is about 7 feet away from a fence dividing her property from the homeless camp.

Raylynna Peterson's lawsuit states that her home and business suffered about $241,000 in damage.

Extensive repairs were needed. (Stephanie Yao Long/The Oregonian)

The fire destroyed Peterson’s business phone and internet lines, damaged her business sign and “greatly reduced current and future business income,” the suit states.

The suit also says the home needed extensive repairs and later was plagued by rats and thieves. The suit seeks $281,000 for damages to the home.

The suit seeks another $160,000 for losses to Peterson’s law business and $100,000 for emotional distress experienced by Peterson and her daughters. The suit says her children have had trouble sleeping or focusing on school work.

Peterson is representing herself. She filed the suit Wednesday in Multnomah County Circuit Court.

-- Aimee Green

agreen@oregonian.com

o_aimee