What is the owner-occupied exemption for 1-4 unit dwellings under the FHA?

• A. If The Owner Lives In One Of The Units, No Broker Is Involved, And No Discriminatory Advertising Is Used, The Transaction May Be Exempt From Certain FHA Advertising And Discriminatory Provisions
• B. The Exemption Requires The Owner To Hire A Broker And Use Inclusive Ads
• C. The Exemption Applies Only To Buildings With More Than Four Units
• D. The Exemption Allows Any Discriminatory Advertising

Answer: (A)

The owner-occupied exemption applies to small 1–4 unit dwellings when the owner lives in one of the units. In that situation, the FHA’s advertising and certain discrimination provisions may be exempt, provided the owner does not use a real estate broker to market the property and does not publish discriminatory advertising. This allows a private owner to sell or rent a small property without triggering those specific FHA provisions, while still prohibiting discriminatory practices generally. The other statements miss key points: involving a broker removes the exemption, the exemption covers buildings with up to four units (not more), and discriminatory advertising would defeat the exemption.