More like .. ?
Pretty simple, would you in town build a fire pit near your neighbor's structures ..?
No more to it than that
You sure as heck implied there is more to the story.
But no I would not build a fire pit near my neighbor's structures, in town or otherwise. But then again I don't have a postage sized lot that you can spit out your window and hit your neighbor's house either. IOW, there is nowhere on my lot I could build a fire pit and be within 10ft, or less, of my neighbor's structures even if I wanted to. Setbacks are a thing around here.
Fire codes are pretty universal and a 10 ft minimum clearance between a fire pit and a structure is a minimum. Call the Fire Marshal.
