Key Takeaways
- The Mrs. Murphy exemption allows owner-occupied buildings with 4 or fewer units to discriminate
- Religious organizations can give preference to members for non-commercial housing
- Private clubs with housing may limit occupancy to members
- Housing for seniors (55+ or 62+) can exclude families with children
- Real estate agents can NEVER discriminate even when an exemption applies to the owner
Fair Housing Exemptions
Both federal and New York fair housing laws have limited exemptions. Licensees must understand these for the exam.
Mrs. Murphy Exemption
The "Mrs. Murphy Exemption" allows limited discrimination:
Federal Version
| Requirement | Detail |
|---|---|
| Building size | 1-4 units |
| Owner-occupied | Owner lives in building |
| No agent | Cannot use real estate agent |
| No discriminatory ads | Cannot advertise discriminatorily |
New York Version
NY has a narrower Mrs. Murphy exemption:
| NY Requirement | Detail |
|---|---|
| Building size | 1-2 units only (not 4) |
| Owner-occupied | Owner must reside there |
| No agent | Cannot use licensee |
| Same restrictions | No discriminatory advertising |
KEY DIFFERENCE: Federal exemption covers 1-4 units; NY only covers 1-2 units.
Religious Organizations
Religious organizations may discriminate in housing IF:
| Condition | Requirement |
|---|---|
| Non-commercial | Not operated for profit |
| Members preference | Can prefer own members |
| Religion only | Cannot discriminate on race, color, national origin |
Private Clubs
Private clubs may limit housing to members if:
| Condition | Requirement |
|---|---|
| Bona fide | True private club |
| Not commercial | Incidental to purpose |
| Members only | Housing not open to public |
Senior Housing Exemption
Housing may exclude families with children if qualifying as senior housing:
62+ Communities
| Requirement | Detail |
|---|---|
| All residents | 62 years or older |
| 100% occupancy | By seniors |
55+ Communities
| Requirement | Detail |
|---|---|
| 80% of units | At least one person 55+ |
| Age verification | Published policies |
| Intent | Designed for seniors |
Licensee Restrictions
CRITICAL: Real estate licensees CANNOT use exemptions:
| Situation | Owner | Licensee |
|---|---|---|
| Mrs. Murphy exempt property | Can discriminate | CANNOT discriminate |
| Assisting exempt owner | N/A | CANNOT assist discrimination |
| Any transaction | Varies | ALWAYS must comply |
On the Exam: If a question asks whether an agent can discriminate because the owner is exempt—the answer is always NO.
Under New York law, the Mrs. Murphy exemption applies to owner-occupied buildings with how many units?
A property owner qualifies for the Mrs. Murphy exemption. Can they hire a real estate agent to help find a tenant and still discriminate?