The Housing and Community Services Department shall exempt new rental housing that is a subsidized development from compliance with the requirements of ORS 456.510 if the department determines that the exemption is warranted by:
(1) The topography at the construction site;
(2) Community and design standards;
(3) Undue costs or constraints; or
(4) Conflicting funding requirements of another government agency if the agency contributes a significant amount of financial aid for the housing.