A religious organization in Tennessee owns a dormitory-style housing complex exclusively for members of its congregation who are attending seminary. The organization refuses to rent to non-members of the congregation. A non-member files a complaint with the Tennessee Human Rights Commission alleging religious discrimination. Under the Tennessee Human Rights Act and applicable federal fair housing law, which of the following best describes the legal status of the organization's policy?
Correct Answer
B) The policy is lawful because the religious organization exemption permits religious organizations to give preference to members when providing housing they own and operate for non-commercial purposes.
Under the federal Fair Housing Act (42 U.S.C. § 3607(a)) and the Tennessee Human Rights Act (Tenn. Code Ann. § 4-21-101 et seq.), religious organizations are permitted to give preference to members of their religion in the sale or rental of housing that they own or operate for non-commercial purposes. This exemption allows a religious organization's seminary dormitory to restrict occupancy to congregation members. However, the exemption does not permit discrimination on the basis of other protected classes (e.g., the organization cannot restrict membership on the basis of race).
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