Exception. In a residential district where a single-family dwelling is a permitted principal use, which lot has been held in separate ownership from any adjoining lot facing on the same street prior to the time of the enactment of this chapter, the lot area deduction shall not be applied for purposes of determining whether the lot complies with the minimum lot size requirement in the district, provided that said lot is utilized for one single-family dwelling only, is at least 50% of the minimum lot size in the district and complies with all other requirements of this code. Notwithstanding this exception, the lot area deductions for steep slopes set forth in this section shall be applied to calculate the maximum coverage and livable floor area. The application for a permit for such a dwelling on such a lot shall be accompanied by such proof of separate ownership in sufficient detail to provide the DBD with adequate information upon which to base the issuance of a permit.