(a)  Any municipality that chooses to permit accessory dwelling units (ADUs) within the municipality, shall not impose any excessive restrictions on accessory dwelling units (ADUs). More specifically, a municipality that permits ADUs shall not:

(1)  Restrict tenants based on familial relationship or age unless such restriction is necessary to comply with the terms of the federal subsidy related to affordability;

(2)  Charge unique or unreasonable application fees for the creation of an ADU;

(3)  Require infrastructure improvements, including, but not limited to, separate water or sewer service lines or expanded septic system capacity; provided, however, municipalities may require modification required for compliance under state law or regulation;

(4)  Discriminate against populations protected under state and federal fair housing laws;

(5)  Impose unreasonable dimensional requirements on ADUs that effectively preclude their development or utilization;

(6)  Require a larger minimum lot size for a property with an ADU over that required for a property without an ADU in the same zone;

(7)  Require more than one parking space beyond what is already required for the primary use; or

(8)  Limit ADUs to lots with preexisting homes; provided, a municipality shall allow ADUs as part of applications for new primary dwelling units or subdivisions.

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(b)  To further enable the use of ADUs and to remove barriers to utilization, municipalities may allow ADUs in primary or accessory structures that are lawfully established preexisting non-conforming through a special use permit and not require a variance, notwithstanding any provision of this chapter to the contrary that would require a variance.

(c)  Private restrictions on ADUs imposed by condominium associations, homeowner associations, or similar residential property governing bodies, which conflict with the provisions of this section or the definition of an ADU as set forth in § 45-24-31, shall be void as against public policy. Provided, however, if ADUs are allowed by condominium association covenants, homeowner association covenants, or similar residential property governing bodies, they shall be deemed in compliance with this subsection.

(d)  The development of ADUs shall not be restricted by any locally adopted ordinance or policy that places a limit or moratorium on the development of residential units in land zoned for residential use.