Final answer:
Federal law allows buildings designated as "55-and-older" housing to deny tenancy to individuals like Sarah Jones, who has minors, since these communities are reserved for older individuals where at least one occupant is 55 years or older.
Step-by-step explanation:
The question relates to federal laws concerning housing discrimination. Specifically, it refers to the Age Discrimination Act of 1975 and the Housing for Older Persons Act (HOPA) of 1995, which amends the Fair Housing Act.
Under these laws, Sarah Jones, who has two small children under the age of 18, may be denied rental or purchase in buildings designated as "55-and-older" housing. These are housing communities where at least 80% of the occupied units are occupied by at least one person 55 years of age or older. Thus, under federal law, it is permissible for such properties to restrict residency to older individuals and, therefore, Sarah Jones might be denied tenancy in a housing community reserved exclusively for those aged at least 55.