Is racism a big problem?

[missydog1]

I don't have a problem with Niihau's exclusivity, but how does private property exempt the "landlords" from non-discrimination laws? I was under the impression that Nii'hau was gifted specially as an atonement to the Hawaiians for how they were treated, similar I suppose to a Native American reservation, or the Hawaiian Homelands' provisions. I had indeed read about the Robinsons, long ago, but I guess it didn't click with me.

If private property were a justification for only allowing a specific race, housing complexes and tracts could discriminate. Which they cannot. Even owner-occupied properties are limited to either two or four units in order to be exempt from Fair Housing.

Isn't there some other legal reason in play?