What does "proposed walls" mean for JADU's?

Per RMC Section 15.04.610.020 D. Development Standards (5) (F) Location of Junior Accessory Dwelling Unit:

A junior accessory dwelling unit must be created within the existing walls of a proposed or existing single-family dwelling.”

Does “proposed” refer a new single-family dwelling or can “proposed” apply to proposed new walls (an addition) on an existing single-family dwelling?

Proposed walls refers to a single-family dwelling not yet built, but is under consideration by a permit. Proposed walls does not refer to new walls of a existing single-family being "proposed"

JADUs must be within the walls of a single family residence. “Proposed” refers to a new single family dwelling not to the addition of a single family dwelling. Though, a party could separately apply for a permit to expand the single family dwelling and then apply to place a JADU within that space. But the addition itself wouldn’t be permitted as a JADU.