California Real Estate Practice Exam 2026 – 400 Free Practice Questions to Pass the Exam

Religious organizations providing housing to its members are exempt from the federal Fair Housing Act of 1968, as it falls under the category of "religious exemptions." This exemption allows religious organizations to provide housing exclusively to its members without being subject to discrimination laws.

The other options are incorrect because

B: Small landlords who own less than three properties are not exempt from the Fair Housing Act. While they may be eligible for certain exemptions or accommodations based on the size of their properties, they are still subject to discrimination laws.

C: Private clubs not open to the public are also not exempt from the Fair Housing Act. This exemption only applies to the internal operations of the private club, not their housing practices.

D: For-profit organizations seeking to promote affordable housing are also not exempt from the Fair Housing Act. While they may have a mission of providing affordable housing, they are still required to follow fair housing laws and not discriminate against protected classes.