In R8, R9 and R10 Districts, and in C1-7, C1-8, C1-9, C2-7 and C2-8 Districts, the City Planning Commission may permit modifications of height and setback regulations for developments or enlargements containing residences, provided the following findings are made:

(a)        that the resulting site plan affords better placement of the buildings on the zoning lot with improved arrangement of open space and improved access of light and air for the dwelling units; and

(b)        that the site is adjacent to or opposite a permanent space comprising an area of at least three acres such as a park, public place, waterfront, wharf property, wharves or docks, and that the resulting placement of the buildings will not unduly obstruct access of light and air in the street or on adjacent zoning lots.

The Commission may prescribe appropriate conditions or safeguards to minimize adverse effects on the character of the surrounding area.

However, the provisions of this Section shall not apply to Quality Housing buildings.