Exemptions to the Fair Housing Act

The following types of housing do not have to comply with some portions of the Fair Housing Act:

• The federal Fair Housing Act exempts buildings with four or fewer units where the owner lives
  in one of the units and the owner does not use the services of a real estate professional. This is commonly referred to as the “Mrs. Murphy’s exemption.” This exemption does not exist under the Pennsylvania Human Relations Act. The Pennsylvania Human Relations Act exempts only buildings with two units where the owner lives in one of the units.
• In Pennsylvania, if you own the property, the property is your primary residence, and there are only two units in the building, you may choose who you want to live in the other unit, even if such choice would show a preference or limitation based on a protected class. You still must be careful, however, that you do not make discriminatory statements or advertise in a discriminatory manner as these types of speech are not protected by the First Amendment and do violate the Fair Housing Act. In addition, the Civil Rights Act of 1866 prohibits all discrimination in the sale or rental of property based on race or color, therefore the Mrs. Murphy’s exemption may not be used to discriminate based on race or color.
• The federal Fair Housing Act exempts single-family housing sold or rented without the use of a broker, when the private individual owner does not own more than three such single-family homes at one time. The Pennsylvania Human Relations Act does not contain this exemption so sellers in Pennsylvania may not discriminate in for-sale-by-owner transactions.
• Housing operated by religious organizations and private clubs may limit occupancy to members as long as they do not discriminate in their membership.
• Housing for Older Persons that meet certain requirements under the Housing for Older Persons Act (HOPA) may refuse to rent to families with children if:
  – The HUD Secretary has determined that the housing is specifically designed for and occupied by elderly persons under a Federal, State, or local government program;
  – The housing is occupied solely by persons who are 62 or older; or
  – At least 80 percent of the occupied units have at least one resident who is 55 or older and the housing adheres to a policy that demonstrates an intent to house persons who are 55 or older.

As a landlord, you cannot arbitrarily decide that you want to rent only to people 55 and up. Properties must meet all the requirements of the Housing for Older Persons Act in order to avoid liability for discriminating against families with children. For more information, see Housing for Older Persons.