This bill amends local building ordinances by requiring municipalities to exclude below-grade areas from the calculation of floor-area-ratios (FAR) for new construction projects. The bill defines "floor-area-ratio" as the ratio of a building's total floor area to the size of the land parcel, and "below-grade area" as any part of a building that is entirely or partially below ground level, including basements and cellars. Under the new provisions, developers are permitted to utilize below-grade areas for specific purposes such as parking, storage, and mechanical spaces without affecting the FAR calculation.

Additionally, the bill includes a contingency clause that renumbers the newly inserted sections if another bill (HB 631) from the 2025 legislative session is enacted. The effective date of this act is set for 60 days after its passage, which is anticipated to be September 30, 2025. The amendments aim to provide greater flexibility for developers while maintaining local zoning regulations.