(a) This subchapter does not prohibit a religious organization, association, or society or a nonprofit institution or organization operated, supervised, or controlled by or in conjunction with a religious organization, association, or society from:

(1) Limiting the sale, rental, or occupancy of dwellings that it owns or operates for other than a commercial purpose to persons of the same religion, unless membership in the religion is restricted on account of race, color, or national origin; or

(2) Giving preference for those dwellings to persons of the same religion, unless membership in the religion is restricted on account of race, color, or national origin.

(b) This subchapter does not prohibit a private club not in fact open to the public that, as an incident to its primary purpose, provides lodging that it owns or operates for other than a commercial purpose, from limiting the rental or occupancy of that lodging to its members or from giving preference to its members.

(c)

(1) Nothing in this subchapter limits the applicability of any reasonable local or state restriction regarding the maximum number of occupants permitted to occupy a dwelling.

(2) Nothing in this subchapter shall prohibit a person from refusing to rent a dwelling by reason of reasonable occupancy standards established by the owner or the owner's agent that apply to persons of all ages, and that have been adopted and published before the event in issue.

(3) An occupancy limitation of two (2) persons per bedroom residing in a dwelling unit shall be presumed reasonable in this state or any political subdivision of this state.

(4) Nothing in this subchapter regarding familial status shall apply to housing for older persons.

(d) (1) As used in this section, "housing for older persons" means housing:

(A) Provided under any state program that the Director of the Arkansas Fair Housing Commission determines is specifically designed and operated to assist elderly persons, as defined in any state program, or provided under any federal program that the United States Secretary of the Department of Housing and Urban Development determines is specifically designed and operated to assist elderly persons, as defined in any federal program;

(B) Intended for, and solely occupied by, persons sixty-two (62) years of age or older; or

(C) Intended and operated for occupancy by persons fifty-five (55) years of age or older, and:

(i) At least eighty percent (80%) of the occupied units are occupied by at least one (1) person who is fifty-five (55) years of age or older;

(ii) The housing facility or community publishes and adheres to policies and procedures that demonstrate the intent required under this subdivision (d)(1); and

(iii) The housing facility or community complies with rules issued by the director for verification of occupancy, which shall:

(a)

(1) Provide for verification by reliable surveys and affidavits; and

(2) Include examples of the types of policies and procedures relevant to a determination of compliance with the requirement of this subdivision (d)(1)(C)(iii)(a).

(b) The surveys and affidavits authorized under subdivision (d)(1)(C)(iii)(a) of this section shall be admissible in administrative and judicial proceedings for the purposes of verification.

(2) Housing shall not fail to meet the requirements for housing for older persons by reason of persons residing in the housing as of August 13, 2001, who do not meet the age requirements of subdivision (d)(1)(B) of this section or subdivision (d)(1)(C) of this section, if:

(A) New occupants of the housing meet the age requirements of subdivision (d)(1)(B) of this section or subdivision (d)(1)(C) of this section; or

(B) The units are unoccupied units and are reserved for occupancy by persons who meet the age requirements of subdivision (d)(1)(B) of this section or subdivision (d)(1)(C) of this section.

(4)

(A) A person shall not be held personally liable for monetary damages for a violation of this subchapter if the person reasonably relied in good faith on the application of the exemption under this section relating to housing for older persons.

(B) For the purposes of this subchapter, "good faith reliance" means:

(i) The person has no actual knowledge that the facility or community is not, or will not be, eligible for the exemption; and

(ii) The facility or community has stated formally in writing that the facility or community complies with the requirements for the exemption.

(e) Nothing in this subchapter prohibits discrimination against a person because the person has been convicted by any court of competent jurisdiction of the illegal manufacture or distribution of a controlled substance as defined in § 102 of the Controlled Substance Act, 21 U.S.C. § 802, as in effect January 1, 2001.