Which entity does NOT have to comply with federal fair housing laws?

The correct answer is that a four-unit building where the owner lives does not have to comply with federal fair housing laws due to the “Mrs. Murphy” exemption. This exemption applies to small, owner-occupied dwellings, which are defined as buildings with four or fewer units, in which the owner occupies one of the units. This means that the owner is allowed to rent out the other units without being subject to certain federal fair housing regulations.

The rationale for this exemption is to avoid overly burdening small property owners who are closely connected to their tenants. They may have a more personal relationship, which is considered legitimate in the context of residential leasing.

On the other hand, entities like a church-owned apartment complex and a public vacation lodge run by a Secret Society would typically be subject to fair housing laws as larger organizations do not have the same intimate landlord-tenant relationships and are seen as providing housing in a more commercial context. Additionally, a single-family home rented out by a landlord with multiple properties is also not exempt from these laws due to the number of properties owned. Once a landlord has more than one or two properties available for rent, they are expected to comply with fair housing laws to ensure non-discriminatory practices in housing.