In Hawaii, what type of exemption exists under the Fair Housing Law for housing transactions?

The correct answer pertains to the rental unit exemption for two-unit dwellings, which reflects specific nuances in how the Fair Housing Law applies in Hawaii. In the context of the Fair Housing Act, some smaller rental properties, particularly those with two units (often referred to as "duplexes"), may enjoy certain exemptions based on the owner’s occupancy and number of units rented.

In Hawaii, when an owner occupies one of the units in a two-family dwelling, they are generally permitted to discriminate based on certain factors—like the type of tenant seeking the rental—as long as they do not violate federal or state laws that prohibit discrimination based on race, color, national origin, religion, sex, familial status, or disability. This exemption acknowledges the unique relationship homeowners in small dwellings have with their tenants and allows them more flexibility in choosing tenants for their property.

Understanding this exemption is essential for those involved in real estate transactions because it highlights the balance between protecting individuals from discrimination and allowing homeowners some leeway in their rental practices. Other options presented do not accurately capture this context: government agency exemptions do not apply broadly to housing transactions, while private club exemptions are more limited in scope, and the owner-occupied exemption for all properties would not accurately reflect the specific distinctions