Final answer:
The local church's policy of only renting their hall to members of their church is classified as steering under the federal Fair Housing Act of 1968.
Step-by-step explanation:
The local church's policy of only renting their hall to members of their church would be classified as steering under the federal Fair Housing Act of 1968. Steering is the practice of guiding individuals towards or away from certain neighborhoods or housing options based on their race, religion, or other protected characteristics. By limiting the rental of their hall to members of their church, the local church is engaging in discriminatory steering that violates the Fair Housing Act.