(C) a building that is intended to be used only as a residence by not more than
- (i) four families and that is not more than two stories high and the grounds of the building; or
- (ii) two families and that is not more than three stories high and the grounds of the building, if the building is located in a municipality that has adopted a building or residential code that applies to the building and if the building complies with the building or residential code;