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Practice Of Real EstateFair HousingHARD

A small apartment complex in Kaimuki has four units, all owner-occupied. The owner refuses to rent the one vacant unit to a same-sex couple. The couple files a complaint with the Hawaii Civil Rights Commission citing sexual orientation discrimination. The owner argues that the property is exempt from fair housing laws. Under Hawaii law, which statement is most accurate?

Correct Answer

B) The property is exempt under federal law, but Hawaii's HRS Chapter 515 may apply with narrower exemptions than federal law

The federal Fair Housing Act provides an exemption for owner-occupied buildings with four or fewer units (the 'Mrs. Murphy exemption'). However, Hawaii's HRS Chapter 515 has its own exemption structure, which may be narrower than the federal exemption. Candidates must recognize that state law can provide broader protections than federal law, and the federal exemption does not automatically apply to Hawaii state law claims. The couple may still have a valid claim under HRS Chapter 515 even if the federal exemption applies.

Answer Options
A
The property is exempt because owner-occupied buildings with four or fewer units are exempt under both federal and Hawaii fair housing law
B
The property is exempt under federal law, but Hawaii's HRS Chapter 515 may apply with narrower exemptions than federal law
C
The property is fully exempt under Hawaii law because the owner lives on-site and the building has four or fewer units
D
The property has no exemption under any fair housing law because sexual orientation is a protected class

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Related Topics & Key Terms

Key Terms:

fair_housingexemptionssexual_orientationowner_occupiedHRS_515federal_vs_state

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