Title 42, The Public Health and WelfareRelease 119-110

§3603 Effective Dates of Certain Prohibitions

Title 42 › CHAPTER 45 — FAIR HOUSING › SUBCHAPTER I — GENERALLY › § 3603

Last updated Sep 22, 2026|Official source

Summary

It makes the ban on discrimination when selling or renting homes apply first to certain federally linked housing. Right away it applies to homes owned or run by the federal government; homes paid for in whole or part with federal loans, grants, or contributions under contracts made after November 20, 1962 unless the debt was paid in full before April 11, 1968; homes backed by federal loan insurance or guarantees under contracts made after November 20, 1962 unless paid in full before April 11, 1968; and homes built or redeveloped on property bought or rented from local agencies that got federal slum-clearance or urban-renewal money under contracts after November 20, 1962. A mortgage held only by an FDIC or FSLIC bank does not by itself make a home covered. After December 31, 1968, the ban applies to almost all other homes too, except limited cases. One exemption covers a private owner selling or renting a single-family house if the owner has no more than three such houses at once, with only one sale in any 24-month period if the owner did not live in the home, and after December 31, 1969 the owner may not use real estate brokers or ads that break the anti-discrimination rule (using lawyers or title companies is allowed). Another exemption covers owner-occupied buildings with up to four separate families. A person is considered in the business of selling or renting homes if, in the past 12 months, they sold or rented three or more homes as the main party, acted as an agent in two or more such deals (not counting selling their own home), or own a building for five or more families.

Full Legal Text

Title 42, §3603

The Public Health and Welfare, Source: USLM XML via OLRC

(a)Application to certain described dwellings

Subject to the provisions of subsection (b) and section 3607 of this title, the prohibitions against discrimination in the sale or rental of housing set forth in section 3604 of this title shall apply:

(1)Upon enactment of this subchapter, to—

(A)dwellings owned or operated by the Federal Government;

(B)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 November 20, 1962, unless payment due thereon has been made in full prior to April 11, 1968;

(C)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 November 20, 1962, unless payment thereon has been made in full prior to April 11, 1968: Provided, 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

(D)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 November 20, 1962.

(2)After December 31, 1968, to all dwellings covered by paragraph (1) and to all other dwellings except as exempted by subsection (b).

(b)Exemptions

Nothing in section 3604 of this title (other than subsection (c)) shall apply to—

(1)any single-family house sold or rented by an owner: Provided, That such private individual owner does not own more than three such single-family houses at any one time: Provided further, 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: Provided further, 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: Provided further, That after December 31, 1969, 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 section 3604(c) of this title; 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

(2)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.

(c)Business of selling or renting dwellings defined

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

(1)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

(2)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

(3)he is the owner of any dwelling designed or intended for occupancy by, or occupied by, five or more families.

Reference

Citations & Metadata

Citation

42 U.S.C. § 3603

Title 42, The Public Health and Welfare

Last Updated

Sep 22, 2026

Release point: 119-110