Tennessee Realtor State Practice Exam

Tennessee fair housing laws exempt non-commercial housing owned by which type of organization?

1. Private clubs

2. Religious organizations and non-profits

3. Government entities

4. Housing authorities

The correct answer is: Religious organizations and non-profits

The correct answer reflects an important aspect of fair housing laws within Tennessee, where certain types of organizations are granted exemptions in the context of non-commercial housing. Specifically, religious organizations and non-profits are allowed this exemption under Tennessee law. This exemption acknowledges that these organizations often operate with specific beliefs or missions that may influence their housing decisions. Such entities may offer housing that aligns with their values or focuses on serving particular community needs without being subject to the same regulations that apply to commercial operators. This distinction is integral to promoting the free exercise of beliefs and the provision of community support services. This context is essential because it clarifies why other options do not apply in the same way. While private clubs might have some degree of leeway regarding membership and use, their exemption does not extend broadly in the same manner as religious organizations. Government entities and housing authorities are typically bound by additional layers of regulation to ensure fair housing practices, further underscoring why the exemption specifically pertains to religious and nonprofit organizations.