The municipality is NOT entitled to it's policy since the municipality is essentially your basic jackbooted thugocracy sometimes mistaken for an agency of the state!
Government may not discriminate in this manner. That's what the US Supreme Court said.
Now, if the thugocracy there in Berkely wants to set itself up as a private community with private roads, etc., I suppose they could do that.
Actually, total privatization of Berkely would be good for all of us. They should be encouraged.
The next time the RATS control the White House; I predict the RAT president will attempt to revoke the tax-exempt status of any non-profit group, even churches, that does not pander to the Gay Gestapo.