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In all districts, as indicated, all permitted signs shall be subject to the restrictions on surface area and illumination as set forth in this Section, provided that the following signs shall be exempted from such restrictions on surface area:

Illuminated non-flashing signs other than advertising signs located in a window within a building, with a total surface area not exceeding eight square feet on any zoning lot and limited to not more than three such signs in any window.

For the purpose of determining permitted surface area of signs for zoning lots occupied by more than one establishment, any portion of such zoning lot occupied by a building or part of a building accommodating one or more establishments on the ground floor may be considered as a separate zoning lot.

No illuminated sign shall have a degree or method of illumination which exceeds standards established by the Department of Buildings by rule pursuant to the City Administrative Procedure Act. Such standards shall ensure that illumination on any illuminated sign does not project or reflect on residences, loft dwellings or joint living-work quarters for artists so as to interfere with the reasonable use and enjoyment thereof. Nothing herein shall be construed to authorize a sign with indirect illumination to arrange an external artificial source of illumination so that direct rays of light are projected from such artificial source into residences, loft dwellings or joint living-work quarters for artists.