A stepped approach to cooling capacity control and the HGRH status logic to achieve the requisite control of humidity and temperature provided to an interior area or building space receiving conditioned air. The system includes at least two independent circuits, each circuit having at least one compressor. At least one of the independent circuits includes hot gas reheat hardware thereby providing HGRH capability. The logic provides an efficient method for maintaining both humidity and temperature in the interior area comfortable for occupants within limits as determined by psychrometrics. The system and method match the sensible capacity and latent capacity of the system match to the sensible and latent loads of the conditioned space.