42 U.S.C. § 3603

Effective dates of certain prohibitions (THE PUBLIC HEALTH AND WELFARE (42 U.S.C.))

In Force
Verified 9/13/2026 · Next check 10/13/2026
effective 8/28/2026FederalAffordable Housing Programs

Operative Text

42 U.S.C. § 3603
Subject to the provisions of subsection (b) and , the prohibitions against discrimination in the sale or rental of housing set forth in  shall apply:

Upon enactment of this subchapter, to—

dwellings owned or operated by the Federal Government;

dwellings provided in whole or in part with the aid of loans, advances, grants, or contributions made by the Federal Government, under agreements entered into after , unless payment due thereon has been made in full prior to ;

dwellings provided in whole or in part by loans insured, guaranteed, or otherwise secured by the credit of the Federal Government, under agreements entered into after , unless payment thereon has been made in full prior to : , That nothing contained in subparagraphs (B) and (C) of this subsection shall be applicable to dwellings solely by virtue of the fact that they are subject to mortgages held by an FDIC or FSLIC institution; and Provided

dwellings provided by the development or the redevelopment of real property purchased, rented, or otherwise obtained from a State or local public agency receiving Federal financial assistance for slum clearance or urban renewal with respect to such real property under loan or grant contracts entered into after .

After , to all dwellings covered by paragraph (1) and to all other dwellings except as exempted by subsection (b).

Nothing in  (other than subsection (c)) shall apply to—

any single-family house sold or rented by an owner: , That such private individual owner does not own more than three such single-family houses at any one time: , That in the case of the sale of any such single-family house by a private individual owner not residing in such house at the time of such sale or who was not the most recent resident of such house prior to such sale, the exemption granted by this subsection shall apply only with respect to one such sale within any twenty-four month period: , That such bona fide private individual owner does not own any interest in, nor is there owned or reserved on his behalf, under any express or voluntary agreement, title to or any right to all or a portion of the proceeds from the sale or rental of, more than three such single-family houses at any one time: , That after , the sale or rental of any such single-family house shall be excepted from the application of this subchapter only if such house is sold or rented (A) without the use in any manner of the sales or rental facilities or the sales or rental services of any real estate broker, agent, or salesman, or of such facilities or services of any person in the business of selling or renting dwellings, or of any employee or agent of any such broker, agent, salesman, or person and (B) without the publication, posting or mailing, after notice, of any advertisement or written notice in violation of ; but nothing in this proviso shall prohibit the use of attorneys, escrow agents, abstractors, title companies, and other such professional assistance as necessary to perfect or transfer the title, or Provided Provided further Provided further Provided further

rooms or units in dwellings containing living quarters occupied or intended to be occupied by no more than four families living independently of each other, if the owner actually maintains and occupies one of such living quarters as his residence.

For the purposes of subsection (b), a person shall be deemed to be in the business of selling or renting dwellings if—

he has, within the preceding twelve months, participated as principal in three or more transactions involving the sale or rental of any dwelling or any interest therein, or

he has, within the preceding twelve months, participated as agent, other than in the sale of his own personal residence in providing sales or rental facilities or sales or rental services in two or more transactions involving the sale or rental of any dwelling or any interest therein, or

he is the owner of any dwelling designed or intended for occupancy by, or occupied by, five or more families.
Source: Legislative text reproduced verbatim
Plain English

42 U.S.C. § 3603 establishes when and to which properties the Fair Housing Act's anti-discrimination rules in the sale or rental of housing take effect. The provision sets out a phased timeline: federal government-owned or federally assisted housing was covered immediately upon the law's enactment, while nearly all other residential dwellings were brought under the Act's protections shortly thereafter. The section also carves out limited exemptions—most notably for small-scale private owners selling or renting single-family homes under specific conditions, and for owner-occupied buildings with no more than four units—and defines what it means to be 'in the business' of selling or renting dwellings for purposes of those exemptions.

Written by anthropic/claude-sonnet-4.6 · Reviewed on September 9, 2026

Plain English — not legal advice.

For Property Managers

Under 42 U.S.C. § 3603, operators of federally owned, federally assisted, or federally insured housing have been subject to fair housing non-discrimination requirements since the law's original enactment, with virtually all other residential rental and sales activity covered shortly after. Landlords who own more than three single-family homes, who use real estate brokers or agents, or who own buildings designed for five or more families generally do not qualify for the narrow exemptions this section describes. Compliant operators typically review whether their portfolio size, financing arrangements, and use of professional sales or rental services place them within the full scope of the Act's coverage under § 3603.

General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.

For Tenants

42 U.S.C. § 3603 is the provision that determines whether a particular housing situation falls within the Fair Housing Act's anti-discrimination protections, and understanding its scope can be relevant when a tenant believes they have experienced unlawful discrimination in a rental transaction. The exemptions it describes—such as the small private owner or owner-occupied four-unit building carve-outs—are narrow and depend on specific factual conditions, including whether a broker or agent was used and how many properties the owner holds. Tenants who believe a landlord has improperly claimed an exemption under § 3603 may consider raising the issue with a local fair housing agency, a HUD complaint process, or a tenant-rights organization for general information about available options.

General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.

Generated September 9, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.

Effective Timeline

Current
Aug 28, 2026
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Related Rules

§ 1437
Declaration of policy and public housing agency organization
§ 5.100
§ 5.100 Definitions.
§ 5.107
§ 5.107 Audit requirements for non-profit organizations.

Source Information

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