Housing Counselor Certification (HUD) Practice Exam

Which practice is a legal exception to the Fair Housing Act?

1. Allowing housing for only members of a religious organization

2. Renting to individuals with certain income levels

3. Exempting multi-family homes from regulations

4. Providing discounts to first-time homebuyers

The correct answer is: Allowing housing for only members of a religious organization

The practice of allowing housing for only members of a religious organization is a legal exception to the Fair Housing Act due to specific provisions within the law. The Fair Housing Act prohibits discrimination in housing based on factors such as race, color, national origin, religion, sex, familial status, and disability. However, it makes an allowance for religious organizations to provide housing exclusively to their members. This exception supports the rights of religious groups to maintain their identity and community, ensuring they can serve the specific needs of their members without facing legal repercussions under the Fair Housing Act. Other options, although relevant to housing practices, do not align with legal exceptions in the same way. For example, renting to individuals with certain income levels may raise concerns about discriminatory practices based on socioeconomic status, which is not protected under the Fair Housing Act. Exempting multi-family homes from regulations does not accurately reflect the protections and responsibilities outlined in fair housing laws, as they generally apply to all rental properties. Providing discounts to first-time homebuyers can be a positive practice but doesn't constitute a legal exception related to discrimination under fair housing regulations.