[2] Stringent limits on floor area ratios lead to less housing supply,[3] and higher rents.
One of the purposes of the 1916 zoning ordinance of New York City was to prevent tall buildings from obstructing too much light and air.
The 1916 zoning ordinance sought to control building size by regulating height and setback requirements for towers.
In 1961, a revision to the zoning ordinance introduced the concept of floor area ratio (FAR).
[11] The floor area ratio (FAR) can be used in zoning to limit urban density.
Thus, many jurisdictions have found it unnecessary to include hard height limitations when using floor area ratio calculations.
[citation needed] Common exclusions to the total calculation of square footage for the purpose of floor area ratio (FAR) include unoccupied areas such as mechanical equipment floors, basements exclusively used for parking, stair towers, elevator shafts, and parking garages.
In Mumbai 1.33 is the norm but higher FSI is allowed along the Metro rail line and slum areas like Dharavi.
[citation needed] In New York City FAR or floor Area Ratio is one of the regulations that determine the density and face of the neighborhood, FAR is related to your Zoning Area and Special Districts that can modify the general regulation of the zoning and introduce some exemptions for your property.
[2] Andres Duany et al. (2000) note:[12] Clarifying Duany's second criticism in reference to "lot coverage": If localities seek to regulate density through floor area ratio, the logical consequence is to encourage expansive one story building with less green space, as single story construction is less expensive than multi-story construction on a per square foot basis.