A smart HVAC system includes a plurality of sensors that monitor the temperature and humidity of a conditioned space and the energy efficiency of the HVAC system. A system controller is operable to control one or more bypass dampers. The modulation of air volume allows the cooling coil to achieve an optimum BTU extraction rate, and regulate temperature and humidity levels of the conditioned space. Sensor data is interpreted by a controller to modulate positioning of the dampers, thereby regulating the volume of air moved across the cooling coil. The smart HVAC system regulates the amount of air moved over the coil according to the desired system output, which includes temperature humidity and energy efficiency while maintaining a constant movement of air and the optimal amount of air exchanges per hour throughout the conditioned space with enhanced dehumidification and mold free systems.