That’s part of the Louisville Human Relations Commission complaint filed by the Lexington Fair Housing Council (a local nonprofit) last year against Teen Challenge; the nonprofit also alleged that Teen Challenge discriminates based on sexual orientation in housing. The full allegation:
The Respondent provides housing in Lexington, Kentucky that is open to individuals of all religions, but teaches against homosexuality and has a preference for [individuals] who are not gay.
The director of another fair housing of advocacy group in the area echoed this view, according to the Louisville Courier-Journal, Apr. 13, 2011 (payment required):
“I do think they’re in violation of the Fairness Ordinance,” [said Chris Hartman, the director of another fair housing advocacy group]. Discrimination could be in the form of trying to persuade women to change their lives or harassing them “by preaching against it,” he said....
As of April, the complaint was still pending with the Human Relations Commission; I’m trying to figure out if more has happened to it since. [UPDATE, Oct. 11, 2011: I've confirmed that the complaint is still pending.]
UPDATE: Just to make it clear, my concern here is with the claim that the very teachings against homosexuality are illegal in a residential setting such as this one; I think that it would violate the Free Speech Clause for the Commission to hold that such teachings violate the law. Requiring Teen Challenge not to discriminate based on sexual orientation in selecting residents is a separate matter. Such a requirement would not violate the Free Speech Clause; nor would it violate the Free Exercise Clause, even if Teen Challenge claimed that it felt a religious obligation to exclude lesbians (though in that case it might violate the Kentucky Constitution’s religious freedom guarantee, if Kentucky courts decide to interpret that provision as securing a limited right to religious exemptions from generally applicable laws).