This bill amends existing law to require municipalities to exclude below-grade areas from the calculation of floor-area-ratios (FAR) for new construction projects. The bill defines "below-grade area" as any part of a building that is entirely or partially below ground level, including basements and cellars. It allows developers to utilize these below-grade spaces for purposes such as parking and storage without affecting the FAR calculation. Additionally, municipal planning and zoning boards are given the authority to review and approve new construction projects in accordance with this new regulation.

Furthermore, the bill mandates that municipalities review and potentially revise height limitations to maximize the height potential for new construction, aligning with the goals of the new FAR regulations. The effective date of this act is set for 60 days after its passage. The key insertions in the bill include the definitions of FAR, below-grade area, and new construction, as well as the provisions for excluding below-grade areas from FAR calculations and the requirement for municipalities to review height limitations. There are no deletions specified in the text provided.