This bill provides restrictions on municipal ordinance requirements related to minimum lot size in areas where water and sewer infrastructure are available. For a housing development that is served by a public, special district or other centrally managed water system and a public, special district or other comparable sewer system and that is located in an area in which dwelling units are allowed, a municipality must allow a dwelling unit on a lot with a minimum size of 5,000 square feet. The bill also provides limits to ordinance provisions relating to lot coverage, road frontage and setback requirements.